Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2012

Derivative Instruments and Hedging Activities [Abstract]

Open Crude Oil and Natural Gas Derivative Instruments

	Fixed-Price Swaps		Collars
Production Period	Mbbls	Weighted Average Fixed Price(1)	Mbbls	Weighted Average Floor Price(1)	Weighted Average Ceiling Price(1)
2012	2,996	$73.73	9,122	$76.80	$101.68
2013	1,972	74.29	5,701	82.84	111.63
2014	76	74.50	—	—	—

⁽¹⁾  Crude oil prices represent a weighted average of several contracts entered into on a per barrel basis. Crude oil contracts are primarily settled against NYMEX WTI Cushing Index. Approximately 29 percent of 2012 collars and 58 percent of 2013 collars are settled against Dated Brent.

	Fixed-Price Swaps						Collars
Production Period	MMBtu (in  000’s)		GJ (in 000’s)		Weighted Average Fixed Price(1)		MMBtu (in  000’s)		GJ (in 000’s)		Weighted Average Floor Price(1)		Weighted Average Ceiling Price (1)
2012		35,508		—	$	6.22		16,500		—	$	5.54	$	7.30
2012		—		33,000	C$	6.61		—		5,500	C$	6.50	C$	7.27
2013		10,095		—	$	6.74		6,825		—	$	5.35	$	6.67
2014		1,295		—	$	6.72		—		—	$	—	$	—

Assets and Liabilities Measured at Fair Value on a Recurring Basis

		$xxxxx.xx		$xxxxx.xx		$xxxxx.xx		$xxxxx.xx		$xxxxx.xx			$xxxxx.xx
	Fair Value Measurements Using
	Quoted Price in Active Markets (Level 1)		Significant Other Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Netting (1)			Carrying Amount
	(In millions)
March 31, 2012
Assets:
Commodity Derivative Instruments	$	—	$	410	$	—	$	410	$	(103	)	$	307
Liabilities:
Commodity Derivative Instruments		—		308		—		308		(103	)		205
December 31, 2011
Assets:
Commodity Derivative Instruments	$	—	$	428	$	—	$	428	$	(96	)	$	332
Liabilities:
Commodity Derivative Instruments		—		250		—		250		(96	)		154

⁽¹⁾ The derivative fair values above are based on analysis of each contract on a gross basis, even where the legal right of offset exists.

Fair Values of Derivative Instruments Recorded in the Consolidated Balance Sheet

	March 31, 2012		December 31, 2011
	(In millions)
Current Assets: Derivative instruments	$	284	$	304
Other Assets: Deferred charges and other		23		28
Total Assets	$	307	$	332
Current Liabilities: Derivative instruments	$	150	$	113
Noncurrent Liabilities: Other		55		41
Total Liabilities	$	205	$	154

Commodity Derivative Activity Recorded in Statement of Consolidated Operations

	Gain (Loss) on  Derivatives Recognized In Income	For the Quarter Ended March 31,
		2012			2011
		(In millions)
Gain (loss) reclassified from accumulated other comprehensive income (loss) into operations (effective portion)	Oil and Gas Production Revenues	$	41		$	6
Gain (loss) on derivatives recognized in operations (ineffective portion and basis)	Revenues and Other: Other	$	(1	)	$	(3	)

Commodity Derivative Activity in Accumulated Other Comprehensive Income (Loss)

	For the Quarter Ended March 31,
	2012						2011
	Before tax			After tax			Before tax			After tax
	(In millions)
Unrealized gain (loss) on derivatives at beginning of period	$	145		$	114		$	(54	)	$	(19	)
Realized amounts reclassified into earnings		(41	)		(34	)		(6	)		(4	)
Net change in derivative fair value		(29	)		1			(432	)		(302	)
Ineffectiveness reclassified into earnings		1			—			3			2
Unrealized gain (loss) on derivatives at end of period	$	76		$	81		$	(489	)	$	(323	)