Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of oil derivative contracts volume and weighted average price

Volumes per day associated with outstanding oil basis derivative contracts, as of September 30, 2022, and the weighted average oil price differential for those contracts are as follows:

	2022
	Fourth Quarter
Midland/WTI basis swap contracts:
Volume per day (Bbl) (a)	26,000
Price differential per Bbl	$	0.50

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(a)The referenced basis swap contracts fix the basis differentials between the index price at which the Company sells a portion of its Midland Basin oil and the WTI index price.

Schedule of gas derivative volume and weighted average prices

Volumes per day associated with outstanding gas derivative contracts, as of September 30, 2022, and the weighted average gas prices for those contracts are as follows:

	2022
	Fourth Quarter
Dutch TTF swap contracts:
Volume per day (MMBtu)	30,000
Price per MMBtu	$	7.80

Schedule of offsetting asset and liability

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

As of September 30, 2022
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:
Marketing derivatives	Other assets - noncurrent	$	81	$	—	$	81
Liabilities:
Commodity price derivatives	Derivatives - current	$	222	$	—	$	222
Marketing derivatives	Derivatives - current	$	82	$	—	$	82
Commodity price derivatives	Derivatives - noncurrent	$	1	$	—	$	1

As of December 31, 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)
Liabilities:
Commodity price derivatives	Derivatives - current	$	486	$	—	$	486
Marketing derivatives	Derivatives - current	$	52	$	—	$	52
Marketing derivatives	Derivatives - noncurrent	$	25	$	—	$	25

Schedule of derivative gains and losses recognized on statement of operations

Gains and losses recorded to net derivative gain (loss) in the consolidated statements of operations related to derivative financial instruments not designated as hedging instruments are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Commodity price derivatives:
Noncash derivative gain (loss), net	$	59	$	(10)	$	20	$	(639)
Cash payments on settled derivatives, net (a)	(121)		(486)		(252)		(1,357)
Total commodity derivative loss, net	(62)		(496)		(232)		(1,996)
Marketing derivatives:
Noncash derivative gain, net	99		6		75		3
Cash payments on settled derivatives, net	(18)		(11)		(47)		(31)
Total marketing derivative gain (loss), net	81		(5)		28		(28)
Conversion option derivatives:
Noncash derivative loss, net	(23)		—		—		—
Cash receipts on settled derivatives, net	17		—		17		—
Total conversion option derivative gain (loss), net	(6)		—		17		—
Derivative gain (loss), net	$	13	$	(501)	$	(187)	$	(2,024)

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(a)Excludes cash payments of $83 million and $244 million, during the three and nine months ended September 30, 2022, respectively, related to entering into equal and offsetting oil and gas commodity derivative trades in the fourth quarter of 2021, which had the net effect of eliminating certain of the Company's 2022 derivative obligations. Includes the early settlement of certain of the Company's commodity derivative contracts for cash payments of $13 million during the nine months ended September 30, 2021.