Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following is a summary of the Company’s derivative instruments related to oil and natural-gas production/processing derivative activities at March 31, 2018:

	2018 Settlement
Oil
Two-Way Collars (MBbls/d)	108
Average price per barrel (WTI)
Ceiling sold price (call)	$	60.48
Floor purchased price (put)	$	50.00
Fixed-Price Contracts (MBbls/d)	84
Average price per barrel (Brent)	$	61.45
Natural Gas
Three-Way Collars (thousand MMBtu/d)	250
Average price per MMBtu (Henry Hub)
Ceiling sold price (call)	$	3.54
Floor purchased price (put)	$	2.75
Floor sold price (put)	$	2.00
Fixed-Price Contracts (thousand MMBtu/d)	256
Average price per MMBtu (Henry Hub)	$	3.02

The Company had the following outstanding interest-rate swaps at March 31, 2018:

millions except percentages			Mandatory	Weighted-Average
Notional Principal Amount		Reference Period	Termination Date	Interest Rate
$	550	September 2016 - 2046	September 2020	6.418%
$	250	September 2016 - 2046	September 2022	6.809%
$	200	September 2017 - 2047	September 2018	6.049%
$	100	September 2017 - 2047	September 2020	6.891%
$	250	September 2017 - 2047	September 2021	6.570%
$	250	September 2017 - 2047	September 2023	6.761%

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following summarizes the fair value of the Company’s derivative instruments:

	Gross Derivative Assets				Gross Derivative Liabilities
millions	March 31,		December 31,		March 31,			December 31,
Balance Sheet Classification	2018		2017		2018			2017
Commodity derivatives
Other current assets	$	6	$	7	$	—		$	(1	)
Other assets	1		2		—			—
Other current liabilities	31		45		(292		)	(206		)
Other liabilities	—		—		(1		)	(2		)
	38		54		(293		)	(209		)
Interest-rate derivatives
Other current assets	17		14		—			—
Other assets	47		40		—			—
Other current liabilities	—		—		(211		)	(236		)
Other liabilities	—		—		(1,045		)	(1,183		)
	64		54		(1,256		)	(1,419		)
Total derivatives	$	102	$	108	$	(1,549	)	$	(1,628	)

The following summarizes gains and losses related to derivative instruments:

millions	Three Months Ended   March 31,
Classification of (Gain) Loss Recognized	2018			2017
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	1		$	—
(Gains) losses on derivatives, net	162			(135		)
Interest-rate derivatives
(Gains) losses on derivatives, net	(127		)	(12		)
Total (gains) losses on derivatives, net	$	36		$	(147	)

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⁽¹⁾  Represents the effect of Marketing and Trading Derivative Activities.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following summarizes the fair value of the Company’s derivative assets and liabilities by input level within the fair-value hierarchy:

millions	Level 1			Level 2			Level 3		Netting (1)			Collateral			Total
March 31, 2018
Assets
Commodity derivatives	$	—		$	38		$	—	$	(31	)	$	—		$	7
Interest-rate derivatives	—			64			—		—			—			64
Total derivative assets	$	—		$	102		$	—	$	(31	)	$	—		$	71
Liabilities
Commodity derivatives	$	—		$	(293	)	$	—	$	31		$	7		$	(255	)
Interest-rate derivatives	—			(1,256		)	—		—			69			(1,187		)
Total derivative liabilities	$	—		$	(1,549	)	$	—	$	31		$	76		$	(1,442	)
December 31, 2017
Assets
Commodity derivatives	$	1		$	53		$	—	$	(46	)	$	(1	)	$	7
Interest-rate derivatives	—			54			—		—			—			54
Total derivative assets	$	1		$	107		$	—	$	(46	)	$	(1	)	$	61
Liabilities
Commodity derivatives	$	(1	)	$	(208	)	$	—	$	46		$	3		$	(160	)
Interest-rate derivatives	—			(1,419		)	—		—			170			(1,249		)
Total derivative liabilities	$	(1	)	$	(1,627	)	$	—	$	46		$	173		$	(1,409	)

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⁽¹⁾  Represents the impact of netting commodity derivative assets and liabilities with counterparties where the Company has the contractual right and intends to net settle.