Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2018:

	2018 Settlement		2019 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	$	—
Three-Way Collars (MBbls/d)	—		87
Average price per barrel (WTI and Brent)
Ceiling sold price (call)	$	—	$	72.98
Floor purchased price (put)	$	—	$	56.72
Floor sold price (put)	$	—	$	46.72
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)	280		—
Average price per MMBtu (Henry Hub)	$	3.02	$	—

The Company had the following outstanding interest-rate swaps at June 30, 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	June 30,		December 31,		June 30,			December 31,
Balance Sheet Classification	2018		2017		2018			2017
Commodity derivatives
Other current assets	$	3	$	7	$	—		$	(1	)
Other assets	1		2		—			—
Other current liabilities	34		45		(552		)	(206		)
Other liabilities	55		—		(95		)	(2		)
	93		54		(647		)	(209		)
Interest-rate derivatives
Other current assets	19		14		—			—
Other assets	40		40		—			—
Other current liabilities	—		—		(205		)	(236		)
Other liabilities	—		—		(1,011		)	(1,183		)
	59		54		(1,216		)	(1,419		)
Total derivatives	$	152	$	108	$	(1,863	)	$	(1,628	)

The following summarizes gains and losses related to derivative instruments:

millions	Three Months Ended June 30,						Six Months Ended June 30,
Classification of (Gain) Loss Recognized	2018			2017			2018			2017
Commodity derivatives
Gathering, processing, and marketing sales	$	1		$	—		$	2		$	—
(Gains) losses on derivatives, net	468			(72		)	630			(207		)
Interest-rate derivatives
(Gains) losses on derivatives, net	(32		)	104			(159		)	92
Total (gains) losses on derivatives, net	$	437		$	32		$	473		$	(115	)

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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
June 30, 2018
Assets
Commodity derivatives	$	—		$	93		$	—	$	(89	)	$	—		$	4
Interest-rate derivatives	—			59			—		—			—			59
Total derivative assets	$	—		$	152		$	—	$	(89	)	$	—		$	63
Liabilities
Commodity derivatives	$	—		$	(647	)	$	—	$	89		$	10		$	(548	)
Interest-rate derivatives	—			(1,216		)	—		—			67			(1,149		)
Total derivative liabilities	$	—		$	(1,863	)	$	—	$	89		$	77		$	(1,697	)
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.