Derivative and Hedging Activities (Tables)

9 Months Ended

Sep. 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 September 30, 2020 and December 31, 2019 are provided below: 

	September 30, 2020				December 31, 2019
	Notional Volume	Fair Value			Notional Volume	Fair Value
		($ in millions)				($ in millions)
Oil (mmbbl):
Fixed-price swaps	26	$	(5	)	24	$	(7	)
Collars	—	—			2	14
Basis protection swaps	—	—			8	(2		)
Total oil	26	(5		)	34	5
Natural gas (bcf):
Fixed-price swaps	780	(161		)	265	125
Call options (sold)	—	—			22	—
Call swaptions	—	—			29	(2		)
Basis protection swaps	—	—			30	2
Total natural gas	780	(161		)	346	125
Total estimated fair value		$	(166	)		$	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 September 30, 2020 and December 31, 2019 on a gross basis and after same-counterparty netting:

Balance Sheet Classification	Gross Fair Value			Amounts Netted in the Consolidated Balance Sheets			Net Fair Value Presented in the Consolidated Balance Sheets
	($ in millions)
As of September 30, 2020
Commodity Contracts:
Short-term derivative asset	$	12		$	(12	)	$	—
Long-term derivative asset	4			(4		)	—
Short-term derivative liability	(117		)	12			(105		)
Long-term derivative liability	(65		)	4			(61		)
Total derivatives	$	(166	)	$	—		$	(166	)
As of December 31, 2019
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 September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	($ in millions)
Oil, natural gas and NGL revenues	$	672		$	1,003		$	2,006		$	3,412
Gains (losses) on undesignated oil, natural gas and NGL derivatives	(154		)	175			597			167
Losses on terminated cash flow hedges	(7		)	(8		)	(24		)	(26		)
Total oil, natural gas and NGL revenues	$	511		$	1,170		$	2,579		$	3,553

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	($ in millions)
Marketing revenues	$	448	$	889	$	1,412	$	3,042
Losses on undesignated marketing natural gas derivatives	—		—		—		(4		)
Total marketing revenues	$	448	$	889	$	1,412	$	3,038

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 September 30,
	2020					2019
	Before  Tax			After  Tax		Before  Tax			After  Tax
	($ in millions)
Balance, beginning of period	$	(28	)	$	29	$	(62	)	$	(5	)
Losses reclassified to income	7			7		8			8
Balance, end of period	$	(21	)	$	36	$	(54	)	$	3

	Nine Months Ended September 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	24			24		26			26
Balance, end of period	$	(21	)	$	36	$	(54	)	$	3

Schedule of financial assets (liabilities)

The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019: 

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
			($ in millions)
As of September 30, 2020
Derivative Assets (Liabilities):
Commodity assets	$	—	$	14		$	—		$	14
Commodity liabilities	—		(180		)	—			(180		)
Total derivatives	$	—	$	(166	)	$	—		$	(166	)
As of December 31, 2019
Derivative Assets (Liabilities):
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 September 30, 2020	$	—		$	—
Balance, as of January 1, 2019	$	87		$	7
Total gains (losses) (realized/unrealized):
Included in earnings(a)	(47		)	(7		)
Total purchases, issuances, sales and settlements:
Settlements	(8		)	—
Balance, as of September 30, 2019	$	32		$	—

___________________________________________

(a)		Commodity Derivatives					Utica Contingent Consideration
		2020		2019			2020		2019
		($ in millions)
	Total gains (losses) included in earnings for the period	$	3	$	(47	)	$	—	$	(7	)
	Change in unrealized gains (losses) related to assets still held at reporting date	$	—	$	(57	)	$	—	$	(7	)