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Derivative Instruments
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
As of December 31, 2023, the Company had the following outstanding financial commodity derivatives:
 
2024
2025
Natural GasFirst QuarterSecond QuarterThird QuarterFourth QuarterFirst QuarterSecond QuarterThird QuarterFourth Quarter
NYMEX collars
     Volume (MMBtu)35,490,000 44,590,000 45,080,000 16,690,000 9,000,000 9,100,000 9,200,000 9,200,000 
     Weighted average floor ($/MMBtu)
$3.00 $2.70 $2.75 $2.75 $3.25 $3.25 $3.25 $3.25 
     Weighted average ceiling ($/MMBtu)
$5.38 $3.87 $3.94 $4.23 $4.79 $4.79 $4.79 $4.79 

2024
OilFirst QuarterSecond QuarterThird QuarterFourth Quarter
WTI oil collars
     Volume (MBbl)2,730 2,730 1,840 1,840 
     Weighted average floor ($/Bbl)$68.00 $68.00 $65.00 $65.00 
     Weighted average ceiling ($/Bbl)$91.37 $91.37 $90.01 $90.01 
WTI Midland oil basis swaps
     Volume (MBbl)2,730 2,730 1,840 1,840 
     Weighted average differential ($/Bbl)$1.16 $1.16 $1.17 $1.17 
In January 2024, the Company entered into the following financial commodity derivatives:
2024
OilFirst QuarterSecond QuarterThird QuarterFourth Quarter
WTI oil collars
     Volume (MBbl)300 455 920 920 
     Weighted average floor ($/Bbl)$65.00 $65.00 $65.00 $65.00 
     Weighted average ceiling ($/Bbl)$85.02 $85.02 $81.49 $81.49 
WTI Midland oil basis swaps
     Volume (MBbl)300 455 920 920 
     Weighted average differential ($/Bbl)$1.10 $1.10 $1.10 $1.10 

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 Location2023202220232022
Commodity contractsDerivative instruments (current)$85 $146 $— $— 
Commodity contractsOther assets (non-current)7 — — — 
 
$92 $146 $— $— 
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
 December 31,
(In millions)20232022
Derivative assets  
Gross amounts of recognized assets$93 $147 
Gross amounts offset in the consolidated balance sheet(1)(1)
Net amounts of assets presented in the consolidated balance sheet92 146 
Gross amounts of financial instruments not offset in the consolidated balance sheet1 2 
Net amount$93 $148 
Derivative liabilities
Gross amounts of recognized liabilities$1 $1 
Gross amounts offset in the consolidated balance sheet(1)(1)
Net amounts of liabilities presented in the consolidated balance sheet— — 
Gross amounts of financial instruments not offset in the consolidated balance sheet— 1 
Net amount$— $1 
Effect of Derivative Instruments on the Consolidated Statement of Operations
Year Ended December 31,
(In millions)202320222021
Cash received (paid) on settlement of derivative instruments
Gas contracts$280 $(438)$(307)
Oil contracts4 (324)(124)
Non-cash gain (loss) on derivative instruments
Gas contracts(72)149 99 
Oil contracts18 150 111 
$230 $(463)$(221)
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 Credit Agreement. The Company’s Credit Agreement 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.