Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following is a summary of the Company’s oil derivative instruments at March 31, 2019:

	2019 Settlement
Oil
Three-Way Collars (MBbls/d)	87
Average price per barrel
Ceiling sold price (call)	$	72.98
Floor purchased price (put)	$	56.72
Floor sold price (put)	$	46.72

The Company had the following outstanding interest-rate swaps at March 31, 2019: 

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	%
$	100	September 2017 - 2047	September 2020	6.891	%
$	250	September 2017 - 2047	September 2021	6.570	%
$	450	September 2017 - 2047	September 2023	6.445	%

The following interest-rate swaps were outstanding at March 31, 2019:

millions except percentages			Mandatory	Weighted-Average
Notional Principal Amount		Reference Period	Termination Date	Interest Rate
$	375	December 2019 - 2024	December 2019	2.662	%
$	375	December 2019 - 2029	December 2019	2.802	%
$	375	December 2019 - 2049	December 2019	2.885	%

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

The following summarizes gains and losses related to derivative instruments:

	Three Months Ended
millions	March 31,
Classification of (Gain) Loss Recognized		2019		2018
Commodity derivatives - Anadarko
Gathering, processing, and marketing sales		$	2	$	1
(Gains) losses on derivatives, net		149		162
Interest-rate derivatives - Anadarko (1)
(Gains) losses on derivatives, net		128		(127		)
Interest-rate derivatives - WES
(Gains) losses on derivatives, net		36		—
Total (gains) losses on derivatives, net		$	315	$	36

⁽¹⁾  Excludes amounts related to WES interest-rate swap agreements.

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		2019			2018			2019				2018
Commodity derivatives - Anadarko
Other current assets		$	45		$	300		$	(27	)		$	(126	)
Other current liabilities		—			1			(2		)		(6		)
		45			301			(29		)		(132		)
Interest-rate derivatives - Anadarko(1)
Other current assets		21			22			—				—
Other assets		30			34			—				—
Other current liabilities		—			—			(83		)		(82		)
Other liabilities		—			—			(1,237		)		(1,156		)
		51			56			(1,320		)		(1,238		)
Interest-rate derivatives - WES
Other current liabilities		—			—			(44		)		(8		)
Total derivatives		$	96		$	357		$	(1,393	)		$	(1,378	)

⁽¹⁾  Excludes amounts related to WES interest-rate swap agreements.

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, 2019
Assets
Anadarko(2)
Commodity derivatives	$	—		$	45		$	—	$	(27	)		$	—	$	18
Interest-rate derivatives	—			51			—		—				—		51
Total derivative assets	$	—		$	96		$	—	$	(27	)		$	—	$	69
Liabilities
Anadarko(2)
Commodity derivatives	$	—		$	(29	)	$	—	$	27			$	—	$	(2	)
Interest-rate derivatives	—			(1,320		)	—		—				123		(1,197		)
WES
Interest-rate derivatives	—			(44		)	—		—				—		(44		)
Total derivative liabilities	$	—		$	(1,393	)	$	—	$	27			$	123	$	(1,243	)
December 31, 2018
Assets
Anadarko (2)
Commodity derivatives	$	1		$	300		$	—	$	(127	)		$	—	$	174
Interest-rate derivatives	—			56			—		—				—		56
Total derivative assets	$	1		$	356		$	—	$	(127	)		$	—	$	230
Liabilities
Anadarko (2)
Commodity derivatives	$	(2	)	$	(130	)	$	—	$	127			$	2	$	(3	)
Interest-rate derivatives	—			(1,238		)	—		—				66		(1,172		)
WES
Interest-rate derivatives	—			(8		)	—		—				—		(8		)
Total derivative liabilities	$	(2	)	$	(1,376	)	$	—	$	127			$	68	$	(1,183	)

⁽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.

⁽²⁾  Excludes amounts related to WES interest-rate swap agreements.