Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of oil derivative contracts volume and weighted average price

The Company's outstanding oil derivative contracts as of September 30, 2020 and the weighted average oil prices per barrel for those contracts are as follows:

	2020		Year Ending December 31, 2021
	Fourth Quarter
Brent collar contracts with short puts: (a)
Volume per day (Bbl)	115,500		—
Price per Bbl:
Ceiling	$	69.78	$	—
Floor	$	62.06	$	—
Short put	$	53.56	$	—
Brent swap contracts:
Volume per day (Bbl)	155,200		—
Price per Bbl	$	36.47	$	—
Brent call contracts sold:
Volume per Bbl (b)	—		20,000
Price per Bbl	$	—	$	69.74
Brent collar contracts with short puts:
Volume per day (Bbl) (c)	30,000		96,000
Price per Bbl:
Ceiling	$	43.09	$	50.61
Floor	$	34.83	$	44.79
Short put	$	24.83	$	34.88

______________________

(a)Represents collar contracts with short puts that were entered into prior to March 2020. During and subsequent to March 2020, the Company entered into incremental swap contracts and collar contracts with short puts to provide additional downside price protection for its 2020 volumes.

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

(c)Subsequent to September 30, 2020, the Company liquidated certain 2021 Brent collar contracts with short puts totaling 6,000 Bbls per day for cash proceeds of $241 thousand.

Schedule of gas derivative volume and weighted average prices

The Company's outstanding gas derivative contracts as of September 30, 2020 and the weighted average gas prices per MMBtu for those contracts are as follows: 

	2020		Year Ending December 31, 2021
	Fourth Quarter
NYMEX swap contracts:
Volume per day (MMBtu)	16,739		152,466
Price per MMBtu	$	2.43	$	2.66
NYMEX collar contracts:
Volume per day (MMBtu)	—		150,000
Price per MMBtu:
Ceiling	$	—	$	3.15
Floor	$	—	$	2.50
Basis swap contracts:
Permian Basin index swap volume per day (MMBtu) (a)	16,739		2,466
Price differential ($/MMBtu)	$	(1.59)	$	(1.46)

______________________

(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 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 September 30, 2020
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	$	49	$	—	$	49
Liabilities:
Commodity price derivatives	Derivatives - current	$	51	$	—	$	51
Commodity price derivatives	Derivatives - noncurrent	$	14	$	—	$	14

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

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 September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
		(in millions)
Commodity price derivatives	Derivative gain (loss), net	$	(57)	$	121	$	82	$	150
Interest rate derivatives	Derivative gain (loss), net	$	—	$	—	$	(22)	$	—
Contingent consideration	Interest and other income (loss), net	$	22	$	(48)	$	(42)	$	(61)