Derivative and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of estimated fair values of oil, natural gas and NGL derivative instruments

The estimated fair values of our oil, natural gas and NGL derivative instrument assets (liabilities) as of June 30, 2020 and December 31, 2019 are provided below: 

	June 30, 2020			December 31, 2019
	Notional Volume	Fair Value		Notional Volume	Fair Value
		($ in millions)			($ in millions)
Oil (mmbbl):
Fixed-price swaps	—	$	—	24	$	(7	)
Call options (sold)	—	—		—	—
Collars	—	—		2	14
Basis protection swaps	—	—		8	(2		)
Total oil	—	—		34	5
Natural gas (bcf):
Fixed-price swaps	—	—		265	125
Call options (sold)	—	—		22	—
Call swaptions	—	—		29	(2		)
Put spreads	—	—		—	—
Basis protection swaps	—	—		30	2
Total natural gas	—	—		346	125
Total estimated fair value		$	—		$	130

Schedule of effect of derivative instruments, condensed consolidated balance sheets

The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of December 31, 2019 on a gross basis and after same-counterparty netting:

	December 31, 2019
Balance Sheet Classification	Gross Fair Value			Amounts Netted in the Consolidated Balance Sheets			Net Fair Value Presented in the Consolidated Balance Sheets
	($ in millions)
Commodity Contracts:
Short-term derivative asset	$	174		$	(40	)	$	134
Short-term derivative liability	(42		)	40			(2		)
Long-term derivative liability	(2		)	—			(2		)
Total derivatives	$	130		$	—		$	130

Schedule of effect of derivative instruments, condensed consolidated statements of operations

The components of oil, natural gas and NGL revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	($ in millions)
Oil, natural gas and NGL revenues	$	440		$	1,179		$	1,334		$	2,409
Gains (losses) on undesignated oil, natural gas and NGL derivatives	(165		)	283			751			(8		)
Losses on terminated cash flow hedges	(8		)	(8		)	(17		)	(18		)
Total oil, natural gas and NGL revenues	$	267		$	1,454		$	2,068		$	2,383

The components of marketing revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020		2019
	($ in millions)
Marketing revenues	$	240	$	917		$	964	$	2,152
Losses on undesignated marketing natural gas derivatives	—		(1		)	—		(3		)
Total marketing revenues	$	240	$	916		$	964	$	2,149

Schedule of effect of derivative instruments, accumulated other comprehensive income (loss)

A reconciliation of the changes in accumulated other comprehensive income (loss) in our condensed consolidated statements of stockholders’ equity related to our cash flow hedges is presented below:

	Three Months Ended June 30,
	2020					2019
	Before  Tax			After  Tax		Before  Tax			After  Tax
	($ in millions)
Balance, beginning of period	$	(36	)	$	21	$	(70	)	$	(13	)
Losses reclassified to income	8			8		8			8
Balance, end of period	$	(28	)	$	29	$	(62	)	$	(5	)

	Six Months Ended June 30,
	2020					2019
	Before  Tax			After  Tax		Before  Tax			After  Tax
	($ in millions)
Balance, beginning of period	$	(45	)	$	12	$	(80	)	$	(23	)
Losses reclassified to income	17			17		18			18
Balance, end of period	$	(28	)	$	29	$	(62	)	$	(5	)

Schedule of financial assets (liabilities)

The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of December 31, 2019: 

	December 31, 2019
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Derivative Assets (Liabilities):			($ in millions)
Commodity assets	$	—	$	160		$	14		$	174
Commodity liabilities	—		(42		)	(2		)	(44		)
Total derivatives	$	—	$	118		$	12		$	130

A summary of the changes in the fair values of our financial assets (liabilities) classified as Level 3 during the Current Period and the Prior Period is presented below: 

	Commodity Derivatives			Utica Contingent Consideration
	($ in millions)
Balance, as of January 1, 2020	$	12		$	—
Total gains (losses) (realized/unrealized):
Included in earnings(a)	3			—
Total purchases, issuances, sales and settlements:
Settlements	(15		)	—
Balance, as of June 30, 2020	$	—		$	—
Balance, as of January 1, 2019	$	87		$	7
Total gains (losses) (realized/unrealized):
Included in earnings(a)	(64		)	(7		)
Total purchases, issuances, sales and settlements:
Settlements	(1		)	—
Balance, as of June 30, 2019	$	22		$	—

___________________________________________

(a)		Commodity Derivatives					Utica Contingent Consideration
		2020		2019			2020		2019
		($ in millions)
	Total gains (losses) included in earnings for the period	$	3	$	(64	)	$	—	$	(7	)
	Change in unrealized gains (losses) related to assets still held at reporting date	$	—	$	(66	)	$	—	$	7