Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021 and the weighted average oil prices per barrel for those contracts are as follows:

	2021		Year Ending December 31, 2022 (a)
	Fourth Quarter
Brent swap contracts:
Volume per day (Bbl)	17,000		—
Price per Bbl	$	44.45	$	—
MEH swap contracts:
Volume per day (Bbl)	43,000		2,055
Price per Bbl	$	40.52	$	42.80
Midland WTI swap contracts:
Volume per day (Bbl)	5,000		—
Price per Bbl	$	40.50	$	—
NYMEX WTI swap contracts:
Volume per day (Bbl)	15,000		—
Price per Bbl	$	52.85	$	—
NYMEX rollfactor swap contracts:
Volume per day (Bbl)	35,000		—
Price per Bbl	$	0.17	$	—
Midland WTI basis swap contracts:
Volume per day (Bbl)	37,000		26,000
Price per Bbl	$	0.89	$	0.50
Brent call contracts sold:
Volume per day (Bbl) (b)	20,000		—
Price per Bbl	$	69.74	$	—
Brent collar contracts:
Volume per day (Bbl)	—		10,000
Price per Bbl:
Ceiling	$	—	$	60.32
Floor	$	—	$	50.00
NYMEX WTI collar contracts:
Volume per day (Bbl)	6,000		—
Price per Bbl:
Ceiling	$	55.54	$	—
Floor	$	50.00	$	—
Brent collar contracts with short puts:
Volume per day (Bbl)	90,000		67,000
Price per Bbl:
Ceiling	$	50.74	$	66.02
Floor	$	45.11	$	52.39
Short put	$	35.07	$	39.25

MEH collar contracts with short puts:
Volume per day (Bbl)	9,446		—
Price per Bbl:
Ceiling	$	51.29	$	—
Floor	$	41.55	$	—
Short put	$	31.55	$	—
NYMEX WTI collar contracts with short puts:
Volume per day (Bbl)	—		12,000
Price per Bbl:
Ceiling	$	—	$	65.86
Floor	$	—	$	52.50
Short put	$	—	$	40.00

______________________

(a)Between October 1, 2021 and November 1, 2021, the Company liquidated certain derivative contracts as follows (i) 8,152 Bbls per day of MEH swap contracts for January 2022 through March 2022 production with a weighted average swap price of $42.80, (ii) 10,000 Bbls per day of Brent collar contracts for January 2022 through December 2022 production with a weighted average call price of $60.32 and a put price of $50.00 and (iii) 20,000 Bbls per day of Brent collar contracts with short puts for January 2022 through December 2022 production with a weighted average call price of $57.88, put price of $45.50 and short put price of $35.00.

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

Schedule of gas derivative volume and weighted average prices

The Company's outstanding gas derivative contracts as of September 30, 2021 and the weighted average gas prices per MMBtu for those contracts are as follows:

	2021		Year Ending December 31, 2022
	Fourth Quarter
NYMEX swap contracts:
Volume per day (MMBtu)	160,000		—
Price per MMBtu	$	3.63	$	—
Dutch TTF swap contracts:
Volume per day (MMBtu)	30,000		30,000
Price per MMBtu	$	5.07	$	8.87
WAHA swap contracts:
Volume per day (MMBtu)	116,304		4,932
Price per MMBtu	$	2.36	$	2.46
NYMEX collar contracts:
Volume per day (MMBtu)	247,000		1,726
Price per MMBtu:
Ceiling	$	3.20	$	3.45
Floor	$	2.60	$	2.75
NYMEX collar contracts with short puts:
Volume per day (MMBtu)	—		100,000
Price per MMBtu:
Ceiling	$	—	$	4.00
Floor	$	—	$	3.20
Short put	$	—	$	2.50
Basis swap contracts:
Permian Basin index swap volume per day (MMBtu) (a)	7,000		1,726
Price differential ($/MMBtu)	$	(0.39)	$	(0.39)

____________________

(a)The referenced basis swap contracts fix the basis differentials between the index price at which the Company sells a portion of its Permian Basin gas and the NYMEX index price 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, 2021
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	$	4	$	—	$	4
Commodity price derivatives	Derivatives - noncurrent	$	1	$	—	$	1
Liabilities:
Commodity price derivatives	Derivatives - current	$	1,129	$	—	$	1,129
Marketing derivatives	Derivatives - current	$	47	$	—	$	47
Commodity price derivatives	Derivatives - noncurrent	$	110	$	—	$	110
Marketing derivatives	Derivatives - noncurrent	$	41	$	—	$	41

As of December 31, 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	$	5	$	—	$	5
Commodity price derivatives	Derivatives - noncurrent	$	3	$	—	$	3
Liabilities:
Commodity price derivatives	Derivatives - current	$	198	$	—	$	198
Marketing derivatives	Derivatives - current	$	36	$	—	$	36
Commodity price derivatives	Derivatives - noncurrent	$	11	$	—	$	11
Marketing derivatives	Derivatives - noncurrent	$	55	$	—	$	55

Schedule of derivative gains and losses recognized on statement of operations

Gains and losses recorded on derivative financial instruments not designated as hedging instruments 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,
		2021		2020		2021		2020
		(in millions)
Commodity price derivatives	Derivative loss, net	$	(496)	$	(56)	$	(1,996)	$	81
Marketing derivatives	Derivative loss, net	$	(5)	$	(85)	$	(28)	$	(100)
Interest rate derivatives	Derivative loss, net	$	—	$	—	$	—	$	(22)
Contingent consideration	Interest and other income (loss), net	$	—	$	22	$	—	$	(42)