|
Risk Management and Trading Activities (Tables)
|
9 Months Ended |
|
Sep. 30, 2013
|
| Pre-Tax Gains (Losses) from Trading Activities |
Pre-tax unrealized and realized gains (losses) recorded in
Income from discontinued operations in the Statement of
Consolidated Income from trading activities amounted to the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| |
|
(In
millions) |
|
|
Commodity
|
|
$ |
6 |
|
|
$ |
75 |
|
|
$ |
53 |
|
|
$ |
83 |
|
|
Foreign exchange
|
|
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
Other
|
|
|
9 |
|
|
|
9 |
|
|
|
17 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
14 |
|
|
$ |
85 |
|
|
$ |
70 |
|
|
$ |
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Netting Arrangements on Physical and Financial Derivative Assets and Liabilities |
The following table provides information about the effect of
netting arrangements on the presentation of the Corporation’s
physical and financial derivative assets and (liabilities) that are
measured at fair value, with the effect of single counterparty
multilateral netting being included in column (iv):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Gross Amounts
Offset
in the
Consolidated
Balance
Sheet |
|
|
Net
Amounts |
|
|
Gross Amounts |
|
|
|
|
| |
|
Gross
Amounts |
|
|
Physical
Derivative and
Financial
Instruments |
|
|
Cash
Collateral* |
|
|
Presented in
the
Consolidated
Balance Sheet |
|
|
Not Offset in
the
Consolidated
Balance Sheet |
|
|
Net Amounts |
|
| |
|
(i) |
|
|
(ii) |
|
|
(ii) |
|
|
(iii) = (i) + (ii) |
|
|
(iv) |
|
|
(v) = (iii) + (iv) |
|
| |
|
(In
millions) |
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
3,186 |
|
|
$ |
(2,530 |
) |
|
$ |
(19 |
) |
|
$ |
637 |
|
|
$ |
(30 |
) |
|
$ |
607 |
|
|
Interest rate and
other
|
|
|
62 |
|
|
|
(11 |
) |
|
|
(4 |
) |
|
|
47 |
|
|
|
(2 |
) |
|
|
45 |
|
|
Counterparty
netting
|
|
|
— |
|
|
|
(80 |
) |
|
|
— |
|
|
|
(80 |
) |
|
|
— |
|
|
|
(80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
$ |
3,248 |
|
|
$ |
(2,621 |
) |
|
$ |
(23 |
) |
|
$ |
604 |
|
|
$ |
(32 |
) |
|
$ |
572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
(3,320 |
) |
|
$ |
2,530 |
|
|
$ |
99 |
|
|
$ |
(691 |
) |
|
$ |
30 |
|
|
$ |
(661 |
) |
|
Other
|
|
|
(12 |
) |
|
|
11 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
1 |
|
|
Counterparty
netting
|
|
|
— |
|
|
|
80 |
|
|
|
— |
|
|
|
80 |
|
|
|
— |
|
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
$ |
(3,332 |
) |
|
$ |
2,621 |
|
|
$ |
99 |
|
|
$ |
(612 |
) |
|
$ |
32 |
|
|
$ |
(580 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
3,253 |
|
|
$ |
(2,661 |
) |
|
$ |
(34 |
) |
|
$ |
558 |
|
|
$ |
(45 |
) |
|
$ |
513 |
|
|
Interest rate and
other
|
|
|
100 |
|
|
|
(8 |
) |
|
|
— |
|
|
|
92 |
|
|
|
(6 |
) |
|
|
86 |
|
|
Counterparty
netting
|
|
|
— |
|
|
|
(81 |
) |
|
|
— |
|
|
|
(81 |
) |
|
|
— |
|
|
|
(81 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
$ |
3,353 |
|
|
$ |
(2,750 |
) |
|
$ |
(34 |
) |
|
$ |
569 |
|
|
$ |
(51 |
) |
|
$ |
518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
(3,312 |
) |
|
$ |
2,661 |
|
|
$ |
5 |
|
|
$ |
(646 |
) |
|
$ |
45 |
|
|
$ |
(601 |
) |
|
Other
|
|
|
(10 |
) |
|
|
8 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
6 |
|
|
|
4 |
|
|
Counterparty
netting
|
|
|
— |
|
|
|
81 |
|
|
|
— |
|
|
|
81 |
|
|
|
— |
|
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
$ |
(3,322 |
) |
|
$ |
2,750 |
|
|
$ |
5 |
|
|
$ |
(567 |
) |
|
$ |
51 |
|
|
$ |
(516 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
There is no cash collateral that was not offset in the
Consolidated Balance Sheet.
|
|
| Gross and Net Fair Values of Corporate and Energy Marketing Risk Management and Trading Derivative Instruments |
The table below reflects the gross and net fair values of the
corporate and energy marketing risk management and trading
derivative instruments:
|
|
|
|
|
|
|
|
|
| |
|
Accounts
Receivable |
|
|
Accounts
Payable |
|
| |
|
(In
millions) |
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
Derivative contracts
designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
23 |
|
|
$ |
(5 |
) |
|
Interest rate and
other
|
|
|
40 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
Total derivative contracts
designated as hedging instruments
|
|
|
63 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative contracts not
designated as hedging instruments*
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
|
3,163 |
|
|
|
(3,315 |
) |
|
Foreign exchange
|
|
|
— |
|
|
|
(1 |
) |
|
Other
|
|
|
22 |
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
Total derivative contracts
not designated as hedging instruments
|
|
|
3,185 |
|
|
|
(3,326 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross fair value of
derivative contracts
|
|
|
3,248 |
|
|
|
(3,332 |
) |
|
Master netting
arrangements
|
|
|
(2,621 |
) |
|
|
2,621 |
|
|
Cash collateral (received)
posted
|
|
|
(23 |
) |
|
|
99 |
|
|
|
|
|
|
|
|
|
|
|
Net fair value of
derivative contracts
|
|
$ |
604 |
|
|
$ |
(612 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
Derivative contracts
designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
65 |
|
|
$ |
(124 |
) |
|
Interest rate and
other
|
|
|
72 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
Total derivative contracts
designated as hedging instruments
|
|
|
137 |
|
|
|
(126 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative contracts not
designated as hedging instruments*
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
|
3,188 |
|
|
|
(3,188 |
) |
|
Foreign exchange
|
|
|
14 |
|
|
|
— |
|
|
Other
|
|
|
14 |
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
Total derivative contracts
not designated as hedging instruments
|
|
|
3,216 |
|
|
|
(3,196 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross fair value of
derivative contracts
|
|
|
3,353 |
|
|
|
(3,322 |
) |
|
Master netting
arrangements
|
|
|
(2,750 |
) |
|
|
2,750 |
|
|
Cash collateral (received)
posted
|
|
|
(34 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
Net fair value of
derivative contracts
|
|
$ |
569 |
|
|
$ |
(567 |
) |
|
|
|
|
|
|
|
|
|
| * |
Includes trading derivatives and derivatives used for risk
management.
|
|
| Fair Values for Corporation's Net Physical Derivative and Financial Assets and (Liabilities) |
The following table provides the Corporation’s net
physical derivative and financial assets and (liabilities) that are
measured at fair value based on this hierarchy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Counterparty
netting |
|
|
Collateral |
|
|
Balance |
|
| |
|
(In
millions) |
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
131 |
|
|
$ |
417 |
|
|
$ |
150 |
|
|
$ |
(42 |
) |
|
$ |
(19 |
) |
|
$ |
637 |
|
|
Interest rate and
other
|
|
|
10 |
|
|
|
40 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
(4 |
) |
|
|
47 |
|
|
Collateral and counterparty
netting
|
|
|
(32 |
) |
|
|
(47 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
|
109 |
|
|
|
410 |
|
|
|
151 |
|
|
|
(43 |
) |
|
|
(23 |
) |
|
|
604 |
|
|
Other assets measured at
fair value on a recurring basis
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets measured at
fair value on a recurring basis
|
|
$ |
117 |
|
|
$ |
410 |
|
|
$ |
151 |
|
|
$ |
(43 |
) |
|
$ |
(23 |
) |
|
$ |
612 |
(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
(75 |
) |
|
$ |
(627 |
) |
|
$ |
(130 |
) |
|
$ |
42 |
|
|
$ |
99 |
|
|
$ |
(691 |
) |
|
Other
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(1 |
) |
|
Collateral and counterparty
netting
|
|
|
32 |
|
|
|
47 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
|
(43 |
) |
|
|
(582 |
) |
|
|
(129 |
) |
|
|
43 |
|
|
|
99 |
|
|
|
(612 |
) |
|
Other liabilities measured
at fair value on a recurring basis
|
|
|
(22 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities measured
at fair value on a recurring basis
|
|
$ |
(65 |
) |
|
$ |
(582 |
) |
|
$ |
(129 |
) |
|
$ |
43 |
|
|
$ |
99 |
|
|
$ |
(634 |
)(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other fair value
measurement disclosures Long-term debt
|
|
$ |
— |
|
|
$ |
(6,606 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(6,606 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Includes a total of $63 million of Commodity and Interest
rate and other Level 2 assets that relate to the
Corporation’s continuing operations.
|
| (b) |
Includes $1 million of Commodity and Other Level 2
liabilities that relate to the Corporation’s continuing
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Counterparty
netting |
|
|
Collateral |
|
|
Balance |
|
| |
|
(In
millions) |
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
94 |
|
|
$ |
445 |
|
|
$ |
243 |
|
|
$ |
(190 |
) |
|
$ |
(34 |
) |
|
$ |
558 |
|
|
Interest rate and
other
|
|
|
6 |
|
|
|
86 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
92 |
|
|
Collateral and counterparty
netting
|
|
|
(23 |
) |
|
|
(54 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(81 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
|
77 |
|
|
|
477 |
|
|
|
240 |
|
|
|
(191 |
) |
|
|
(34 |
) |
|
|
569 |
|
|
Other assets measured at
fair value on a recurring basis
|
|
|
5 |
|
|
|
49 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets measured at
fair value on a recurring basis
|
|
$ |
82 |
|
|
$ |
526 |
|
|
$ |
240 |
|
|
$ |
(193 |
) |
|
$ |
(34 |
) |
|
$ |
621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
|
|
$ |
(83 |
) |
|
$ |
(657 |
) |
|
$ |
(101 |
) |
|
$ |
190 |
|
|
$ |
5 |
|
|
$ |
(646 |
) |
|
Other
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(2 |
) |
|
Collateral and counterparty
netting
|
|
|
23 |
|
|
|
54 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative
contracts
|
|
|
(61 |
) |
|
|
(605 |
) |
|
|
(97 |
) |
|
|
191 |
|
|
|
5 |
|
|
|
(567 |
) |
|
Other liabilities measured
at fair value on a recurring basis
|
|
|
(40 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
|
— |
|
|
|
(42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities measured
at fair value on a recurring basis
|
|
$ |
(101 |
) |
|
$ |
(607 |
) |
|
$ |
(99 |
) |
|
$ |
193 |
|
|
$ |
5 |
|
|
$ |
(609 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other fair value
measurement disclosures
Long-term debt
|
|
$ |
— |
|
|
$ |
(8,887 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(8,887 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Transfers into and out of Each Level of Fair Value Hierarchy |
The following table provides net transfers into and out of
each level of the fair value hierarchy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| |
|
(In
millions) |
|
|
Transfers into Level
1
|
|
$ |
18 |
|
|
$ |
85 |
|
|
$ |
(1 |
) |
|
$ |
244 |
|
|
Transfers out of Level
1
|
|
|
15 |
|
|
|
(38 |
) |
|
|
77 |
|
|
|
210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
33 |
|
|
$ |
47 |
|
|
$ |
76 |
|
|
$ |
454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers into Level
2
|
|
$ |
(11 |
) |
|
$ |
48 |
|
|
$ |
(103 |
) |
|
$ |
(245 |
) |
|
Transfers out of Level
2
|
|
|
(2 |
) |
|
|
(131 |
) |
|
|
16 |
|
|
|
(288 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(13 |
) |
|
$ |
(83 |
) |
|
$ |
(87 |
) |
|
$ |
(533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers into Level
3
|
|
$ |
(14 |
) |
|
$ |
50 |
|
|
$ |
(12 |
) |
|
$ |
100 |
|
|
Transfers out of Level
3
|
|
|
(6 |
) |
|
|
(14 |
) |
|
|
23 |
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(20 |
) |
|
$ |
36 |
|
|
$ |
11 |
|
|
$ |
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in Physical Derivatives and Financial Assets and (Liabilities) that are Measured at Fair Value Based on Level 3 Inputs |
The following table provides changes in physical derivatives
and financial assets and (liabilities) that are measured at fair
value based on Level 3 inputs, which are all related to
discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| |
|
(In
millions) |
|
|
Balance at beginning of period
|
|
$ |
107 |
|
|
$ |
87 |
|
|
$ |
141 |
|
|
$ |
(143 |
) |
|
Unrealized pre-tax gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in earnings (a)
|
|
|
(61 |
) |
|
|
(26 |
) |
|
|
(122 |
) |
|
|
(72 |
) |
|
Included in other comprehensive income (loss) (b)
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
43 |
|
|
Purchases (c)
|
|
|
4 |
|
|
|
14 |
|
|
|
44 |
|
|
|
244 |
|
|
Sales (c)
|
|
|
(1 |
) |
|
|
(9 |
) |
|
|
(32 |
) |
|
|
(266 |
) |
|
Settlements (d)
|
|
|
(7 |
) |
|
|
15 |
|
|
|
(20 |
) |
|
|
232 |
|
|
Transfers into Level 3
|
|
|
(14 |
) |
|
|
50 |
|
|
|
(12 |
) |
|
|
100 |
|
|
Transfers out of Level 3
|
|
|
(6 |
) |
|
|
(14 |
) |
|
|
23 |
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period
|
|
$ |
22 |
|
|
$ |
117 |
|
|
$ |
22 |
|
|
$ |
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
All of the unrealized pre-tax gains and losses
included in earnings were reflected in Income from discontinued
operations in the Statement of Consolidated Income.
|
| (b) |
The unrealized pre-tax gains (losses) included in
Other comprehensive income (loss) are reflected in the Change in
fair value of cash flow hedges in the Statement of Consolidated
Comprehensive Income.
|
| (c) |
Purchases and sales primarily represent option
premiums paid or received, respectively, during the reporting
period and are reflected in Income from discontinued operations in
the Statement of Consolidated Income.
|
| (d) |
Settlements represent realized gains (losses) on
derivatives settled during the reporting period and are reflected
in Income from discontinued operations in the Statement of
Consolidated Income.
|
|
| Risk Management and Trading Activities |
The significant unobservable inputs used in Level 3
fair value measurements for the Corporation’s physical
commodity contracts and derivative instruments primarily include
less liquid delivered locations for physical commodity contracts or
volatility assumptions for out-of-the-money options. The following
table provides information about the Corporation’s
significant recurring unobservable inputs used in the Level 3 fair
value measurements. Natural gas contracts are usually quoted and
transacted using basis pricing relative to an active pricing
location (e.g., Henry Hub), for which price inputs represent the
approximate value of differences in geography and local market
conditions. All other price inputs below represent full contract
prices. Significant changes in any of the inputs below,
independently or correlated, may result in a different fair
value.
|
|
|
|
|
|
|
| |
|
Unit of
Measurement |
|
Range /
Weighted Average |
|
|
September 30, 2013
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Commodity contracts with a fair value of $150 million (a)
Contract prices
|
|
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
$ / bbl (c) |
|
|
$ 71.23 - 163.44 / 113.54 |
|
|
Electricity
|
|
$ / MWH (d) |
|
|
$ 23.80 - 102.25 / 37.09 |
|
|
|
|
|
|
Basis prices
|
|
|
|
|
|
|
|
Natural gas
|
|
$ / MMBTU (e) |
|
|
$ (1.76) - 10.15 / 0.11 |
|
|
|
|
|
|
Contract volatilities
|
|
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
% |
|
|
14.00 - 21.00 / 17.00 |
|
|
Natural gas
|
|
% |
|
|
19.00 - 31.00 / 23.00 |
|
|
Electricity
|
|
% |
|
|
16.00 - 29.00 / 23.00 |
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Commodity contracts with a fair value of $130 million (b)
Contract prices
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
$ / bbl (c) |
|
$ 89.82 - 130.53 / 116.97 |
|
Electricity
|
|
$ / MWH (d) |
|
$ 24.75 - 81.18 / 39.94 |
|
|
|
|
Basis prices
|
|
|
|
|
|
Natural gas
|
|
$ / MMBTU (e) |
|
$ (1.75) - 10.15 / 0.73 |
|
|
|
|
Contract volatilities
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
% |
|
14.00 -
21.00 / 16.00 |
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Commodity contracts with a fair value of $243 million
Contract prices
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
$ / bbl (c) |
|
$79.35 -144.27 / 113.06 |
|
Electricity
|
|
$ / MWH (d) |
|
$23.37 - 79.27 / 40.81 |
|
|
|
|
Basis prices
|
|
|
|
|
|
Natural gas
|
|
$ / MMBTU
(e) |
|
$ (0.47) - 6.66 / 0.39 |
|
|
|
|
Contract volatilities
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
% |
|
23.00 - 27.00 / 26.00 |
|
Natural gas
|
|
% |
|
21.00 - 36.00 / 25.00 |
|
Electricity
|
|
% |
|
18.00 - 40.00 / 28.00 |
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Commodity contracts with a fair value of $101 million
Contract prices
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
$ / bbl (c) |
|
$83.49 -133.38 / 109.94 |
|
Electricity
|
|
$ / MWH (d) |
|
$25.01 -
72.60 / 40.38 |
|
|
|
|
Basis prices
|
|
|
|
|
|
Natural gas
|
|
$ / MMBTU
(e) |
|
$ (0.72) - 6.66 / 1.26 |
|
|
|
|
Contract volatilities
|
|
|
|
|
|
Crude oil and refined petroleum products
|
|
% |
|
24.00 -
27.00 / 26.00 |
|
Natural gas
|
|
% |
|
21.00 -
28.00 / 22.00 |
|
|
|
| (a) |
Included in Assets held for sale.
|
| (b) |
Included in Liabilities associated with assets held
for sale.
|
| (d) |
Price per megawatt hour.
|
| (e) |
Price per million British thermal unit.
|
| Note: |
Fair value measurement for all recurring inputs was
performed using a combination of income and market approach
techniques.
|
|
|
Corporate Risk Management [Member]
|
|
| Gross Volumes of Corporation's Derivative Instruments Outstanding |
The gross volumes of the Corporate risk management derivative
contracts outstanding were as follows:
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2013 |
|
|
December 31,
2012 |
|
|
Commodity, primarily crude
oil (millions of barrels)
|
|
|
8 |
|
|
|
1 |
|
|
Foreign exchange (millions
of U.S. Dollars)
|
|
$ |
55 |
|
|
$ |
1,285 |
|
|
Interest rate swaps
(millions of U.S. Dollars)
|
|
$ |
865 |
|
|
$ |
880 |
|
|
|
Energy Marketing Risk Management [Member]
|
|
| Gross Volumes of Corporation's Derivative Instruments Outstanding |
The gross volumes of the Corporation’s energy marketing
commodity contracts outstanding were as follows:
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2013 |
|
|
December 31,
2012 |
|
|
Crude oil and refined
petroleum products (millions of barrels)
|
|
|
20 |
|
|
|
26 |
|
|
Natural gas (millions of
mcf*)
|
|
|
4,032 |
|
|
|
2,938 |
|
|
Electricity (millions of
megawatt hours)
|
|
|
238 |
|
|
|
278 |
|
| * |
One mcf represents one thousand cubic feet.
|
|
|
Trading Activities [Member]
|
|
| Gross Volumes of Corporation's Derivative Instruments Outstanding |
The gross volumes of derivative contracts outstanding related
to trading activities were as follows:
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2013 |
|
|
December 31,
2012 |
|
|
Commodity
|
|
|
|
|
|
|
|
|
|
Crude oil and refined
petroleum products (millions of barrels)
|
|
|
1,624 |
|
|
|
1,179 |
|
|
Natural gas (millions of
mcf)
|
|
|
3,116 |
|
|
|
3,377 |
|
|
Electricity (millions of
megawatt hours)
|
|
|
5 |
|
|
|
19 |
|
|
Foreign exchange (millions
of U.S. Dollars)
|
|
$ |
89 |
|
|
$ |
412 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
Interest rate (millions of
U.S. Dollars)
|
|
$ |
49 |
|
|
$ |
167 |
|
|
Equity securities (millions
of shares)
|
|
|
14 |
|
|
|
14 |
|
|