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Derivative Instruments Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Instruments Table
The following tables present information about CERC’s derivative instruments and hedging activities. The first four tables provide a balance sheet overview of CERC’s Derivative Assets and Liabilities as of March 31, 2016 and December 31, 2015, while the last two tables provide a breakdown of the related income statement impacts for the three months ended March 31, 2016 and 2015.
Fair Value of Derivative Instruments
 
 
 
 
March 31, 2016
Total derivatives not designated
as hedging instruments
 
Balance Sheet
Location
 
Derivative
Assets
Fair Value
 
Derivative
Liabilities
Fair Value
 
 
 
 
(in millions)
Natural gas derivatives (1) (2) (3)
 
Current Assets: Non-trading derivative assets
 
$
75

 
$
—

Natural gas derivatives (1) (2) (3)
 
Other Assets: Non-trading derivative assets
 
28

 
—

Natural gas derivatives (1) (2) (3)
 
Current Liabilities: Non-trading derivative liabilities
 
10

 
57

Natural gas derivatives (1) (2) (3)
 
Other Liabilities: Non-trading derivative liabilities
 
4

 
15

Total                                                                          
 
$
117

 
$
72



(1)
The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 751 Bcf or a net 139 Bcf long position.  Of the net long position, basis swaps constitute 122 Bcf.

(2)
Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading derivative assets and liabilities was a $92 million asset as shown on CERC’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of $47 million.
 
(3)
Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable.
Fair Value of Derivative Instruments
 
 
 
 
December 31, 2015
Total derivatives not designated
as hedging instruments
 
Balance Sheet
Location
 
Derivative
Assets
Fair Value
 
Derivative
Liabilities
Fair Value
 
 
 
 
(in millions)
Natural gas derivatives (1) (2) (3)
 
Current Assets: Non-trading derivative assets
 
$
90

 
$
2

Natural gas derivatives (1) (2) (3)
 
Other Assets: Non-trading derivative assets
 
36

 
—

Natural gas derivatives (1) (2) (3)
 
Current Liabilities: Non-trading derivative liabilities
 
10

 
60

Natural gas derivatives (1) (2) (3)
 
Other Liabilities: Non-trading derivative liabilities
 
4

 
25

Total
 
$
140

 
$
87


(1)
The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 767 Bcf or a net 112 Bcf long position.  Of the net long position, basis swaps constitute 133 Bcf.

(2)
Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading derivative assets and liabilities was a $109 million asset as shown on CERC’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of $56 million.
  
(3)
Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable.
Derivative Instruments, Offsetting Assets and Liabilities [Table Text Block]
Offsetting of Natural Gas Derivative Assets and Liabilities
 
 
March 31, 2016
 
 
Gross Amounts Recognized (1)
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amount Presented in the Consolidated Balance Sheets (2)
 
 
(in millions)
Current Assets: Non-trading derivative assets
 
$
85

 
$
(10
)
 
$
75

Other Assets: Non-trading derivative assets
 
32

 
(4
)
 
28

Current Liabilities: Non-trading derivative liabilities
 
(57
)
 
49

 
(8
)
Other Liabilities: Non-trading derivative liabilities
 
(15
)
 
12

 
(3
)
Total
 
$
45

 
$
47

 
$
92


(1)
Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements.

(2)
The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default.
Offsetting of Natural Gas Derivative Assets and Liabilities
 
 
December 31, 2015
 
 
Gross Amounts Recognized (1)
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amount Presented in the Consolidated Balance Sheets (2)
 
 
(in millions)
Current Assets: Non-trading derivative assets
 
$
100

 
$
(11
)
 
$
89

Other Assets: Non-trading derivative assets
 
40

 
(4
)
 
36

Current Liabilities: Non-trading derivative liabilities
 
(62
)
 
51

 
(11
)
Other Liabilities: Non-trading derivative liabilities
 
(25
)
 
20

 
(5
)
Total
 
$
53

 
$
56

 
$
109



(1)
Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements.

(2)
The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default.
Income Statement Impact of Derivative Activity Table
Realized and unrealized gains and losses on derivatives are recognized in the Condensed Statements of Consolidated Income as revenue for retail sales derivative contracts and as natural gas expense for financial natural gas derivatives and non-retail related physical natural gas derivatives.
Income Statement Impact of Derivative Activity
 
 
 
 
Three Months Ended March 31,
Total derivatives not designated
as hedging instruments
 
Income Statement Location
 
2016
 
2015
 
 
 
 
(in millions)
Natural gas derivatives
 
Gains (Losses) in Revenues
 
$
20

 
$
(133
)
Natural gas derivatives
 
Gains (Losses) in Expenses: Natural Gas
 
(11
)
 
132

Total
 
$
9

 
$
(1
)