Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Table Text Block [Abstract]

Schedule of Derivative Instruments

		2012			2013
Natural Gas
	Three-Way Collars (thousand MMBtu/d)		—	(1)		—	(1)
	Fixed-Price Contracts (thousand MMBtu/d)		1,000			900
	Average price per MMBtu	$	4.69		$	4.00
Crude Oil
	Three-Way Collars (MBbls/d)		62			26
	Average price per barrel
	Ceiling sold price (call)	$	122.30		$	125.15
	Floor purchased price (put)	$	101.22		$	105.00
	Floor sold price (put)	$	81.34		$	85.00
	Fixed-Price Contracts (MBbls/d)		60			34
	Average price per barrel	$	107.19		$	110.04

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(1)The Company has entered into offsetting purchased and sold natural-gas three-way collars of 500,000 MMBtu/d and 450,000 MMBtu/d for 2012 and 2013, respectively.

MMBtu—million British thermal units

MMBtu/d—million British thermal units per day

MBbls/d—thousand barrels per day

millions except percentages		Reference Period		Weighted-Average
Notional Principal Amount		Start	End	Interest Rate
$	200	October 2012	October 2022	5.07	%
$	750	June 2014	June 2024	6.00	%
$	1,100	June 2014	June 2044	5.57	%
$	50	September 2016	September 2026	5.91	%
$	750	September 2016	September 2046	5.86	%

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

		Gross				Gross
		Derivative Assets				Derivative Liabilities
millions		September 30,		December 31,		September 30,		December 31,
Balance Sheet Classification		2012		2011		2012		2011
Commodity derivatives
	Other current assets	$	485	$	924	$	(228)	$	(353)
	Other assets		76		150		(34)		(15)
	Accrued expenses		7		5		(22)		(33)
	Other liabilities		11		1		(20)		(17)
			579		1,080		(304)		(418)
Interest-rate and other derivatives
	Accrued expenses		—		—		(67)		(391)
	Other liabilities		—		—		(1,284)		(808)
			—		—		(1,351)		(1,199)
Total derivatives		$	579	$	1,080	$	(1,655)	$	(1,617)

		Three Months Ended						Nine Months Ended
millions		September 30, 2012						September 30, 2012
Classification of (Gain) Loss Recognized		Realized		Unrealized		Total		Realized		Unrealized		Total
Commodity derivatives
	Gathering, processing, and marketing sales (1)	$	3	$	5	$	8	$	—	$	18	$	18
	(Gains) losses on commodity derivatives, net		(200)		437		237		(600)		369		(231)
Interest-rate and other derivatives
	(Gains) losses on other derivatives, net		—		14		14		2		152		154
Derivative (gain) loss, net		$	(197)	$	456	$	259	$	(598)	$	539	$	(59)

		Three Months Ended						Nine Months Ended
millions		September 30, 2011						September 30, 2011
Classification of (Gain) Loss Recognized		Realized		Unrealized		Total		Realized		Unrealized		Total
Commodity derivatives
	Gathering, processing, and marketing sales (1)	$	1	$	(3)	$	(2)	$	17	$	(8)	$	9
	(Gains) losses on commodity derivatives, net		(71)		(159)		(230)		(155)		(162)		(317)
Interest-rate and other derivatives
	(Gains) losses on other derivatives, net		—		854		854		2		937		939
Derivative (gain) loss, net		$	(70)	$	692	$	622	$	(136)	$	767	$	631

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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

millions
September 30, 2012			Level 1		Level 2		Level 3		Netting (1)		Collateral		Total
Assets
	Commodity derivatives
		Financial institutions	$	2	$	517	$	—	$	(272)	$	(10)	$	237
		Other counterparties		—		60		—		(8)		—		52
Total derivative assets			$	2	$	577	$	—	$	(280)	$	(10)	$	289
Liabilities
	Commodity derivatives
		Financial institutions	$	(2)	$	(278)	$	—	$	272	$	10	$	2
		Other counterparties		—		(24)		—		8		—		(16)
	Interest-rate and other derivatives			—		(1,351)		—		—		—		(1,351)
Total derivative liabilities			$	(2)	$	(1,653)	$	—	$	280	$	10	$	(1,365)

December 31, 2011
Assets
	Commodity derivatives
		Financial institutions	$	3	$	947	$	—	$	(361)	$	(52)	$	537
		Other counterparties		—		130		—		(13)		—		117
Total derivative assets			$	3	$	1,077	$	—	$	(374)	$	(52)	$	654
Liabilities
	Commodity derivatives
		Financial institutions	$	(4)	$	(375)	$	—	$	361	$	7	$	(11)
		Other counterparties		—		(39)		—		13		—		(26)
	Interest-rate and other derivatives			—		(1,199)		—		—		130		(1,069)
Total derivative liabilities			$	(4)	$	(1,613)	$	—	$	374	$	137	$	(1,106)

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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.