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Derivatives
 3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
For further information regarding the fair value measurement of derivative instruments see Note 14. All of our commodity derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts. The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets.
 
March 31, 2019
 
 
(In millions)
Asset
 
Liability
 
Net Asset (Liability)
 
Balance Sheet Location
Not Designated as Hedges
 
 
 
 
 
 
 
     Commodity
$
18

 
$
—

 
$
18

 
Other current assets
     Commodity
1

 
—

 
1

 
Other noncurrent assets
     Commodity
—

 
1

 
(1
)
 
Other current liabilities
     Commodity
—

 
4

 
(4
)
 
Deferred credits and other liabilities
Total Not Designated as Hedges
$
19

 
$
5

 
$
14

 
 
 
December 31, 2018
 
 
(In millions)
Asset
 
Liability
 
Net Asset (Liability)
 
Balance Sheet Location
Not Designated as Hedges
 
 
 
 
 
 
 
     Commodity
$
131

 
$
—

 
$
131

 
Other current assets
     Commodity
—

 
4

 
(4
)
 
Deferred credits and other liabilities
Total Not Designated as Hedges
$
131

 
$
4

 
$
127

 
 


Commodity Derivatives
We have entered into multiple crude oil derivatives indexed to the respective indices as noted in the table below, related to a portion of our forecasted United States sales through 2021. These derivatives consist of three-way collars, basis swaps and NYMEX roll basis swaps. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes; the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the NYMEX WTI price plus the difference between the floor and the sold put price. These commodity derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of March 31, 2019, and the weighted average prices for those contracts:
 
 
2019
 
 
2020
 
 
2021
Crude Oil
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
 
Full
Year
 
 
First Quarter
NYMEX WTI Three-Way Collars (a)
 
 
 
 
 
 
 
 
 
 
 
 
Volume (Bbls/day)
 
70,000

 
50,000

 
50,000

 
 
—

 
 
—

Weighted average price per Bbl:
 
 
 
 
 
 
 
 
 
 
 
 
Ceiling
 
$
71.21

 
$
75.88

 
$
75.88

 
 
—

 
 
—

Floor
 
$
55.86

 
$
57.80

 
$
57.80

 
 
—

 
 
—

Sold put
 
$
48.71

 
$
50.80

 
$
50.80

 
 
—

 
 
—

Basis Swaps - Argus WTI Midland (b)
 
 
 
 
 
 
 
 
 
 
 
 
Volume (Bbls/day)
 
10,000

 
15,000

 
15,000

 
 
15,000

 
 
—

Weighted average price per Bbl
 
$
(0.82
)
 
$
(1.40
)
 
$
(1.40
)
 
 
$
(0.94
)
 
 
—

Basis Swaps - Net Energy Clearbrook (c)
 
 
 
 
 
 
 
 
 
 
 
 
Volume (Bbls/day)
 
1,000

 
1,000

 
1,000

 
 
—

 
 
—

Weighted average price per Bbl
 
$
(3.50
)
 
$
(3.50
)
 
$
(3.50
)
 
 
—

 
 
—

Basis Swaps - NYMEX WTI / ICE Brent (d)
 
 
 
 
 
 
 
 
 
 
 
 
Volume (Bbls/day)
 
5,000

 
5,000

 
5,000

 
 
5,000

 
 
3,278

Weighted average price per Bbl
 
$
(7.24
)
 
$
(7.24
)
 
$
(7.24
)
 
 
$
(7.24
)
 
 
$
(7.24
)
NYMEX Roll Basis Swaps
 
 
 
 
 
 
 
 
 
 
 
 
Volume (Bbls/day)
 
60,000

 
60,000

 
60,000

 
 
—

 
 
—

Weighted average price per Bbl
 
$
0.38

 
$
0.38

 
$
0.38

 
 
—

 
 
—


(a) 
Between April 1, 2019 and April 29, 2019, we entered into 20,000 Bbls/day and 20,000 Bbls/day of three-way collars for July - December 2019 and January - June 2020, with a ceiling of $70.00, a sold put of $47.00, and a floor of $55.00. We also entered into 10,000 Bbls/day of three-way collars for July - December 2019 with a ceiling of $74.09, a sold put of $48.00, and a floor of $55.00.
(b) 
The basis differential price is indexed against Argus WTI Midland.
(c) 
The basis differential price is indexed against Net Energy Canada Bakken SW at Clearbrook ("UHC").
(d) 
The basis differential price is indexed against International Commodity Exchange ("ICE") Brent and NYMEX WTI.

The mark-to-market impact and settlement of these commodity derivative instruments appears in net gain (loss) on commodity derivatives in our consolidated statements of income. The mark-to-market impact for the three months ended March 31, 2019 was a loss of $113 million compared to a loss of $43 million for the same period in 2018. Net settlements of commodity derivative instruments for the three months ended March 31, 2019 was a gain of $22 million compared to a loss of $59 million for the same period in 2018.