Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019 and the weighted average oil prices for those contracts are as follows:

	2019				Year Ending December 31, 2020
	Third Quarter		Fourth Quarter
Brent swap contracts:
Volume per day (Bbl)	20,000		—		—
Price per Bbl	$	64.32	$	—	$	—
Brent collar contracts with short puts:
Volume per day (Bbl) (a)	45,000		45,000		43,500
Price per Bbl:
Ceiling	$	80.06	$	80.06	$	72.99
Floor	$	68.33	$	68.33	$	64.13
Short put	$	58.33	$	58.33	$	55.00

____________________

(a) Subsequent to June 30, 2019, the Company entered into additional Brent derivative contracts for (i) 13,261 Bbls per day of swap contracts for August through September 2019 production and 20,000 Bbls per day of swap contracts for October through December 2019 production, both at an average swap price of $65.44 per Bbl and (ii) 23,000 Bbls per day of collar contracts with short puts for 2020 production with a ceiling price of $70.60, a floor price of $62.57 and a short put price of $54.39.

Schedule of gas derivative volume and weighted average prices

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

	As of June 30, 2019
	2019
	Third Quarter			Fourth Quarter
Swap contracts:
Volume per day (MMBtu)	50,000			16,848
Price per MMBtu	$	2.94		$	2.94
Basis swap contracts:
Permian Basin index swap volume per day(MMBtu) (a)	60,000			—
Price differential ($/MMBtu)	$	(1.46	)	$	—
Southern California index swap volume per day (MMBtu) (b)	80,000			80,000
Price differential ($/MMBtu)	$	0.31		$	0.31

____________________

(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:

As of June 30, 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)
Assets:
Commodity price derivatives	Derivatives - current	$	50	$	(1	)	$	49
Commodity price derivatives	Derivatives - noncurrent	$	10	$	—		$	10
Divestiture contingent consideration	Other assets - noncurrent	$	123	$	—		$	123
Liabilities:
Commodity price derivatives	Derivatives - current	$	16	$	(1	)	$	15

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)
Assets:
Commodity price derivatives	Derivatives - current	$	59	$	(7	)	$	52
Liabilities:
Commodity price derivatives	Derivatives - current	$	34	$	(7	)	$	27

Schedule of derivative gains and losses recognized on statement of operations

Gains and losses on derivative contracts are as follows:

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Earnings on Derivatives	Three Months Ended June 30,						Six Months Ended June 30,
		2019			2018			2019			2018
		(in millions)
Commodity price derivatives	Derivative gain (loss), net	$	43		$	(358	)	$	29		$	(566	)
Divestiture contingent consideration	Interest and other income (loss), net	$	(13	)	$	—		$	(13	)	$	—