Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

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


	As of September 30, 2023
	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	$	176	$	—	$	—	$	176
Deferred compensation plan assets	62		—		—		62
Conversion option derivatives	—		2		—		2

	$	238	$	2	$	—	$	240
Liabilities:


Marketing derivatives	$	—	$	—	$	310	$	310


	As of December 31, 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	$	172	$	—	$	—	$	172
Deferred compensation plan assets	65		—		—		65
Conversion option derivatives	—		1		—		1
	$	237	$	1	$	—	$	238
Liabilities:
Marketing derivatives	$	—	$	—	$	140	$	140

Schedule of derivative gains and losses recognized on statement of operations

Gains and losses recorded in the consolidated statements of operations related to assets and liabilities measured at fair value on a recurring basis are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in millions)
Investment in affiliate valuation adjustment	$	40	$	(32)	$	4	$	(1)
Deferred compensation plan asset valuation adjustment	$	3	$	(2)	$	2	$	(13)
Derivative gain (loss), net:
Marketing derivatives:
Noncash derivative gain (loss), net	$	(155)	$	99	$	(170)	$	75
Cash payments on settled derivatives	(21)		(18)		(52)		(47)
Total marketing derivative gain (loss), net	(176)		81		(222)		28
Conversion option derivatives:
Noncash derivative gain (loss), net	4		(23)		1		—
Cash receipts (payments) on settled derivatives, net	(18)		17		(14)		17
Total conversion option derivative gain (loss), net	(14)		(6)		(13)		17
Commodity derivatives:
Noncash derivative gain, net	—		59		—		20
Cash payments on settled derivatives, net	—		(121)		—		(252)
Total commodity derivative loss, net	—		(62)		—		(232)
	$	(190)	$	13	$	(235)	$	(187)

Schedule of offsetting asset and liability

Derivative financial instruments are presented in the Company's consolidated balance sheets as follows:


As of September 30, 2023
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:

Conversion option derivatives	Prepaids and other	$	2	$	—	$	2



Liabilities:

Marketing derivatives	Derivatives - current	$	158	$	—	$	158



Marketing derivatives	Derivatives - noncurrent	$	152	$	—	$	152


As of December 31, 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:


Conversion option derivatives	Prepaids and other	$	1	$	—	$	1
Liabilities:

Marketing derivatives	Derivatives - current	$	44	$	—	$	44

Marketing derivatives	Derivatives - noncurrent	$	96	$	—	$	96

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


	As of September 30, 2023				As of December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Assets:
Cash and cash equivalents (a)	$	98	$	98	$	1,032	$	1,032


Liabilities:
Current portion of debt:

Convertible senior notes (b)	$	44	$	109	$	29	$	69
Senior notes (b)	$	—	$	—	$	750	$	738
Long-term debt:
Convertible senior notes (b)	$	582	$	1,437	$	925	$	2,184
Senior notes (b)	$	4,298	$	3,792	$	3,200	$	2,696

______________________

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

(b)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 6 for additional information.