XML 29 R32.htm IDEA: XBRL DOCUMENT

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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


	2020
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Swap contracts:
Volume per day (MMBtu) (a)	—		30,000		30,000		10,109
Price per MMBtu	$	—	$	2.41	$	2.41	$	2.41






Basis swap contracts:
Permian Basin index swap volume per day (MMBtu) (a) (b)	—		30,000		30,000		10,109
Price differential ($/MMBtu)	$	—	$	(1.68)	$	(1.68)	$	(1.68)

______________________

(a)Between January 1, 2020 and February 18, 2020, the Company entered into additional (i) swap contracts for 10,000 MMBtu per day of November 2020 through March 2021 production at an average fixed price of $2.46 per MMBtu and (ii) basis swap contracts of 10,000 MMbtu per day of November 2020 through March 2021 production with an average price differential of $1.46 per MMBtu.

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

Offsetting asset and liability

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


As of December 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)
Assets:
Commodity price derivatives	Derivatives - current	$	32	$	—	$	32


Contingent consideration	Other assets - noncurrent	$	91	$	—	$	91


Liabilities:
Commodity price derivatives	Derivatives - current	$	12	$	—	$	12
Commodity price derivatives	Derivatives - noncurrent	$	8	$	—	$	8


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 recorded on derivative contracts are as follows:


Derivatives Not Designated as Hedging Instruments	Location of Gain/(Loss) Recognized in Earnings on Derivatives	Year Ended December 31,
						2019		2018	2017
		(in millions)
Commodity price derivatives	Derivative gain (loss), net	$	34	$	(292)	$	(99)
Interest rate derivatives	Derivative gain (loss), net	$	—	$	—	$	(1)
Contingent consideration	Interest and other income	$	(45)	$	—	$	—

Schedule of derivative assets or liabilities by counterparty

Net derivative assets (liabilities) associated with the Company's open commodity derivatives by counterparty are as follows:


	As of December 31, 2019
	(in millions)






Wells Fargo Bank	$	15
JP Morgan Chase	5
Scotia Bank	3
Royal Bank of Canada	1
Bank of Montreal	(1)






J Aron & Company	(1)

Merrill Lynch	(1)
Nextera Energy Power Marketing	(2)



Citibank	(7)

	$	12

Schedule of Oil Derivative Contracts volume and weighted average price

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


	2020										Year Ending December 31, 2021
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Brent swap contracts:
Volume per day (Bbl)	3,407		—		—		—		—
Price per Bbl	$	60.86	$	—	$	—	$	—	$	—
Brent collar contracts with short puts:
Volume per day (Bbl)	145,500		135,500		115,500		115,500		7,000
Price per Bbl:
Ceiling	$	68.46	$	68.84	$	69.78	$	69.78	$	65.37
Floor	$	61.64	$	61.76	$	62.06	$	62.06	$	60.00
Short put	$	53.45	$	53.48	$	53.56	$	53.56	$	52.00
Brent call contracts sold:
Volume per day (Bbl) (a)	—		—		—		—		13,000
Price per Bbl:	$	—	$	—	$	—	$	—	$	72.10

______________________

(a)The referenced call contracts were sold in exchange for higher ceiling prices on certain 2020 collar contracts with short puts.