Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of oil derivative contracts volume and weighted average price

Volumes per day associated with the Company's outstanding oil derivative contracts as of March 31, 2019 and the weighted average oil prices for those contracts are as follows:

	2019
	Second Quarter		Third Quarter		Fourth Quarter
Brent collar contracts with short puts:
Volume per day (Bbl) (a)	15,000		15,000		15,000
Price per Bbl:
Ceiling	$	89.90	$	89.90	$	89.90
Floor	$	75.00	$	75.00	$	75.00
Short put	$	65.00	$	65.00	$	65.00

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(a) Subsequent to March 31, 2019, the Company entered into additional Brent collar contracts with short puts for (i) 30,000 Bbls per day of May through December 2019 production with an average ceiling price of $75.13 per Bbl, a floor price of $65.00 per Bbl and a short put price of $55.00 per Bbl and (ii) 9,000 Bbls per day of 2020 production with a ceiling price of $75.57, a floor price of $65.00 and a short put price of $55.00.

Schedule of gas derivative volume and weighted average prices

Volumes per day associated with outstanding gas derivative contracts as of March 31, 2019 and the weighted average gas prices for those contracts are as follows:

	2019
	Second Quarter			Third Quarter			Fourth Quarter
Swap contracts:
Volume per day (MMBtu)	50,000			50,000			16,848
Price per MMBtu	$	2.94		$	2.94		$	2.94
Basis swap contracts:
Permian Basin index swap volume per day(MMBtu) (a)	60,000			60,000			—
Price differential ($/MMBtu)	$	(1.46	)	$	(1.46	)	$	—
Southern California index swap volume per day (MMBtu) (b)	80,000			80,000			80,000
Price differential ($/MMBtu)	$	0.31		$	0.31		$	0.31

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(a) The referenced basis swap contracts fix the basis differentials between the index price at which the Company sells its Permian Basin gas and the HH price used in swap contracts.

(b) The referenced basis swap contracts fix the basis differentials between Permian Basin index prices and southern California index prices for Permian Basin gas forecasted for sale in Arizona and southern California.

Offsetting asset and liability

The fair value of derivative financial instruments not designated as hedging instruments is as follows:

Fair Value of Derivative Instruments as of March 31, 2019
Type	Consolidated Balance Sheet Location	Fair Value		Gross Amounts Offset in the Consolidated Balance Sheet			Net Fair Value Presented in the Consolidated Balance Sheet
		(in millions)
Asset Derivatives:
Commodity price derivatives	Derivatives - current	$	36	$	(6	)	$	30
Liability Derivatives:
Commodity price derivatives	Derivatives - current	$	28	$	(6	)	$	22

Fair Value of Derivative Instruments as of December 31, 2018
Type	Consolidated Balance Sheet Location	Fair Value		Gross Amounts Offset in the Consolidated Balance Sheet			Net Fair Value Presented in the Consolidated Balance Sheet
		(in millions)
Asset Derivatives:
Commodity price derivatives	Derivatives - current	$	59	$	(7	)	$	52
Liability Derivatives:
Commodity price derivatives	Derivatives - current	$	34	$	(7	)	$	27

Schedule of derivative gains and losses recognized on statement of operations

Gains and losses recorded on derivative contracts are as follows:

Derivatives Not Designated as Hedging Instruments	Location of Loss Recognized in Earnings on Derivatives	Three Months Ended March 31,
		2019		2018
		(in millions)
Commodity price derivatives	Derivative loss, net	$	13	$	208