Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows:


	As of December 31, 2021
	Fair Value Measurements
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Assets:


Deferred compensation plan assets	$	74	$	—	$	—	$	74
Investment in affiliate	135		—		—		135
Short-term investment	58		—		—		58
	$	267	$	—	$	—	$	267
Liabilities:
Commodity price derivatives	$	—	$	486	$	—	$	486
Marketing derivatives	—		—		77		77
	$	—	$	486	$	77	$	563


	As of December 31, 2020
	Fair Value Measurements
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Assets:
Commodity price derivatives	$	—	$	8	$	—	$	8
Deferred compensation plan assets	72		—		—		72
Investment in affiliate	123		—		—		123
	$	195	$	8	$	—	$	203
Liabilities:
Commodity price derivatives	$	—	$	209	$	—	$	209
Marketing derivatives	—		—		91		91
	$	—	$	209	$	91	$	300

Schedule of carrying values and financial instruments not carried at fair value

Carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets are as follows:


	As of December 31, 2021				As of December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Assets:
Cash and cash equivalents (a)	$	3,847	$	3,847	$	1,442	$	1,442
Restricted cash (a)(b)	$	37	$	37	$	59	$	59
Liabilities:
Current portion of long-term debt:
Senior notes (c)	$	244	$	247	$	140	$	140
Long-term debt:
Convertible senior notes (c)(d)	$	1,307	$	2,359	$	1,100	$	1,756
Senior notes (c)	$	5,381	$	5,390	$	2,060	$	2,230

______________________

(a)Fair value approximates carrying value due to the short-term nature of the instruments.

(b)Represents funds in escrow for use in future deficiency fee payments related to the South Texas Divestiture. Any remaining balance after the payment of the deficiency fees will revert to the Company on March 31, 2023.

(c)Fair value is determined using Level 2 inputs. The Company's senior notes are quoted, but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. See Note 7 for additional information.

(d)See Note 2 for additional information on the impact to the Company's convertible senior notes related to the early adoption of ASU 2020-06 on January 1, 2021.