Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of 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 September 30, 2022
	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:

Investment in affiliate	$	134	$	—	$	—	$	134
Deferred compensation plan assets	63		—		—		63

Marketing derivatives	—		—		81		81
	$	197	$	—	$	81	$	278
Liabilities:
Commodity price derivatives (a)	$	—	$	223	$	—	$	223

Marketing derivatives	—		—		82		82
	$	—	$	223	$	82	$	305


	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:

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

______________________

(a)Includes $84 million and $328 million as of September 30, 2022 and December 31, 2021, respectively, of liabilities recorded in the fourth quarter of 2021 related to entering into equal and offsetting oil and gas commodity derivative trades that had the net effect of eliminating certain of the Company's 2022 derivative obligations.

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 September 30, 2022				As of December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Assets:
Cash and cash equivalents (a)	$	1,316	$	1,316	$	3,847	$	3,847
Restricted cash (a) (b)	$	6	$	6	$	37	$	37
Short-term investments, net (c)	$	372	$	372	$	—	$	—
Liabilities:
Current portion of long-term debt:
Convertible senior notes (d)	$	45	$	99	$	—	$	—
Senior notes (d)	$	941	$	914	$	244	$	247
Long-term debt:
Convertible senior notes (d)	$	1,028	$	2,267	$	1,307	$	2,359
Senior notes (d)	$	3,200	$	2,641	$	5,381	$	5,390

______________________

(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 associated with the Company's 2019 sale of its Eagle Ford assets and other remaining assets in South Texas (the "South Texas Divestiture"). Any remaining balance after the payment of the deficiency fees will revert to the Company on March 31, 2023. See Note 10 for additional information.

(c)The carrying value as of September 30, 2022, represents commercial paper investments that are carried at amortized cost and classified as held-to-maturity as the Company has the intent and ability to hold them until they mature. Commercial paper is included in cash and cash equivalents if it has maturity dates that are less than 90 days at the date of purchase; otherwise, investments are reflected in short-term investments in the consolidated balance sheets based on their maturity dates. Fair value for the Company's commercial paper investments is determined using Level 2 inputs.

(d)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.