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Derivative Instruments
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
As of December 31, 2022, the Company had the following outstanding financial commodity derivatives:
 2023
Natural GasFirst QuarterSecond QuarterThird QuarterFourth Quarter
Waha gas collars
     Volume (MMBtu)8,100,000 8,190,000 8,280,000 8,280,000 
     Weighted average floor ($/MMBtu)
$3.03 $3.03 $3.03 $3.03 
     Weighted average ceiling ($/MMBtu)
$5.39 $5.39 $5.39 $5.39 
NYMEX collars
     Volume (MMBtu)54,000,000 31,850,000 32,200,000 29,150,000 
     Weighted average floor ($/MMBtu)
$5.12 $4.07 $4.07 $4.03 
     Weighted average ceiling ($/MMBtu)
$9.34 $6.78 $6.78 $6.61 

2023
OilFirst QuarterSecond Quarter
WTI oil collars
     Volume (MBbl)1,350 1,365 
     Weighted average floor ($/Bbl)$70.00 $70.00 
     Weighted average ceiling ($/Bbl)$116.03 $116.03 
WTI Midland oil basis swaps
     Volume (MBbl)1,350 1,365 
     Weighted average differential ($/Bbl)$0.63 $0.63 
Effect of Derivative Instruments on the Consolidated Balance Sheet
  Fair Values of Derivative Instruments
  Derivative AssetsDerivative Liabilities
  December 31,December 31,
(In millions)Balance Sheet Location2022202120222021
Commodity contractsDerivative instruments (current)$146 $7 $— $159 
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
 December 31,
(In millions)20222021
Derivative assets  
Gross amounts of recognized assets$147 $27 
Gross amounts offset in the consolidated balance sheet(1)(20)
Net amounts of assets presented in the consolidated balance sheet146 7 
Gross amounts of financial instruments not offset in the consolidated balance sheet2 — 
Net amount$148 $7 
Derivative liabilities
Gross amounts of recognized liabilities$1 $179 
Gross amounts offset in the consolidated balance sheet(1)(20)
Net amounts of liabilities presented in the consolidated balance sheet— 159 
Gross amounts of financial instruments not offset in the consolidated balance sheet1 35 
Net amount$1 $194 
Effect of Derivative Instruments on the Consolidated Statement of Operations
Year Ended December 31,
(In millions)202220212020
Cash (paid) received on settlement of derivative instruments
Gas contracts$(438)$(307)$35 
Oil contracts(324)(124)— 
Non-cash gain on derivative instruments
Gas contracts149 99 26 
Oil contracts150 111 — 
$(463)$(221)$61 
Additional Disclosures about Derivative Instruments
The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company’s counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable.
Certain counterparties to the Company’s derivative instruments are also lenders under its revolving credit facility. The Company’s revolving credit facility and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of the Company’s liabilities thereunder if the Company defaults on other material indebtedness. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty.