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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Fair value by measurement classification and type Table
The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis.
 
 
Fair Value Measurement Classification
 
 
 
 
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
 
 
(In millions)
As of December 31, 2013:
 
 
 
 
 
 
 
 
Money market fund investments
 
$
2

 
$
—

 
$
—

 
$
2

Deferred compensation plan assets
 
8

 
—

 
—

 
8

Investments available-for-sale:
 
 
 
 
 
 
 
 
Equity securities
 
8

 
—

 
—

 
8

Auction rate securities
 
—

 
—

 
39

 
39

Oil and gas derivative swap contracts
 
—

 
(28
)
 
—

 
(28
)
Oil and gas derivative option and swaption contracts
 
—

 
—

 
(8
)
 
(8
)
Stock-based compensation liability awards
 
(11
)
 
—

 
(5
)
 
(16
)
Total
 
$
7

 
$
(28
)
 
$
26

 
$
5

As of December 31, 2014:
 
 
 
 
 
 
 
 
Money market fund investments
 
$
1

 
$
—

 
$
—

 
$
1

Deferred compensation plan assets
 
9

 
—

 
—

 
9

Equity securities available-for-sale
 
10

 
—

 
—

 
10

Oil and gas derivative swap contracts
 
—

 
994

 
—

 
994

Oil and gas derivative option and swaption contracts
 
—

 
—

 
(381
)
 
(381
)
Stock-based compensation liability awards
 
(12
)
 
—

 
(3
)
 
(15
)
Total
 
$
8

 
$
994

 
$
(384
)
 
$
618
Fair value changes level 3 Table
The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the indicated periods. 
 
 
Investments
 
Derivatives
 
Stock-Based Compensation
 
Total
 
 
(In millions)
Balance at January 1, 2012
 
$
32

 
$
71

 
$
—

 
$
103

Realized or unrealized gains (losses):
 

 

 

 

Included in earnings
 
—

 
135

 
—

 
135

Included in other comprehensive income (loss)
 
4

 
—

 
—

 
4

Purchases, issuances, sales and settlements:
 

 

 

 

Settlements
 
—

 
(91
)
 
—

 
(91
)
Transfers in to Level 3
 
—

 
—

 
—

 
—

Transfers out of Level 3
 
—

 
—

 
—

 
—

 Balance at December 31, 2012
 
$
36

 
$
115

 
$
—

 
$
151

Change in unrealized gains or losses included in earnings relating to
Level 3 instruments still held at December 31, 2012
 
$
—

 
$
82

 
$
—

 
$
82

Balance at January 1, 2013
 
$
36

 
$
115

 
$
—

 
$
151

Realized or unrealized gains (losses):
 

 

 

 

Included in earnings
 
(6
)
 
(66
)
 
(18
)
 
(90
)
Included in other comprehensive income (loss)
 
10

 
—

 
—

 
10

Purchases, issuances, sales and settlements:
 

 

 

 

Settlements
 
(1
)
 
(57
)
 
13

 
(45
)
Transfers in to Level 3
 
—

 
—

 
—

 
—

Transfers out of Level 3
 
—

 
—

 
—

 
—

Balance at December 31, 2013
 
$
39

 
$
(8
)
 
$
(5
)
 
$
26

Change in unrealized gains or losses included in earnings relating to
Level 3 instruments still held at December 31, 2013
 
$
(6
)
 
$
(10
)
 
$
—

 
$
(16
)
Balance at January 1, 2014
 
$
39

 
$
(8
)
 
$
(5
)
 
$
26

Realized or unrealized gains (losses):
 

 

 

 

Included in earnings
 
—

 
(381
)
 
(38
)
 
(419
)
Included in other comprehensive income (loss)
 
—

 
—

 
—

 
—

Purchases, issuances, sales and settlements:
 

 

 

 

Sales
 
(39
)
 
—

 
—

 
(39
)
Settlements
 
—

 
5

 
40

 
45

Transfers in to Level 3
 
—

 
—

 
—

 
—

Transfers out of Level 3(1)
 
—

 
3

 
—

 
3

Balance at December 31, 2014
 
$
—

 
$
(381
)
 
$
(3
)
 
$
(384
)
Change in unrealized gains or losses included in earnings relating to
Level 3 instruments still held at December 31, 2014
 
$
—

 
$
(375
)
 
$
2

 
$
(373
)

________
(1)
During the second quarter of 2014, we transferred $3 million of derivative option contracts out of the Level 3 hierarchy. The transfer was a result of our Level 3 swaptions being exercised by the counterparties as swaps on May 30, 2014.
Quantitative disclosures about unobservable inputs
 
 
Estimated Fair Value Asset (Liability)
 
Quantitative Information about Level 3 Fair Value Measurements
Instrument Type
 
Valuation
Technique
 
Unobservable Input
 
Range
 
 
(In millions)
 
 
 
 
 
 
 
 
Oil option and swaption contracts
 
$
(422
)
 
Black-Scholes
 
Oil price volatility
 
28.03
%
—
63.41%
 
 
 
 
 
 
Credit risk
 
0.01
%
—
1.76%
Natural gas option and swaption contracts
 
$
41

 
Black-Scholes
 
Natural gas price volatility
 
23.11
%
—
60.53%
 
 
 
 
 
 
Credit risk
 
0.01
%
—
1.12%
SVAP
 
$
(3
)
 
Monte Carlo
 
Implied volatility
 

 
50.2%
Estimated fair value of the debt instrument at the balance sheet date
The estimated fair value of our notes, based on quoted prices in active markets (Level 1) as of December 31, was as follows: 
 
 
2014
 
2013
 
 
(In millions)
5¾% Senior Notes due 2022
 
$
772

 
$
767

5⅝% Senior Notes due 2024
 
989

 
1,025

7⅛% Senior Subordinated Notes due 2018
 
—

 
624

6⅞% Senior Subordinated Notes due 2020
 
721

 
755