DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of December 31, 2020, the Company had the following open natural gas financial basis swap contracts:

		Basis Swap Purchased		Basis Swap Sold
Production Period	Settlement Index	MMBtu (in 000’s)	Weighted Average Price Differential	MMBtu (in 000’s)	Weighted Average Price Differential
April—December 2021	NYMEX Henry Hub/IF Waha	37,580	$(0.43)	—	—
April—December 2021	NYMEX Henry Hub/IF HSC	—	—	37,580	$(0.07)
January—December 2022	NYMEX Henry Hub/IF Waha	43,800	$(0.45)	—	—
January—December 2022	NYMEX Henry Hub/IF HSC	—	—	43,800	$(0.08)

Schedule of Derivative Assets Measured at Fair Value

The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis:

	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)
December 31, 2020
Assets:
Commodity derivative instruments	$	—	$	11	$	—	$	11	$	—	$	11
Liabilities:
Pipeline capacity embedded derivatives	—		53		—		53		—		53
Preferred Units embedded derivative	—		—		139		139		—		139
December 31, 2019
Assets:
Pipeline capacity embedded derivative	$	—	$	8	$	—	$	8	$	—	$	8
Foreign currency derivative instruments	—		1		—		1		—		1
Liabilities:
Preferred Units embedded derivative	—		—		103		103		—		103

(1)The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.

Schedule of Derivative Liabilities Measured at Fair Value

The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis:

	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)
December 31, 2020
Assets:
Commodity derivative instruments	$	—	$	11	$	—	$	11	$	—	$	11
Liabilities:
Pipeline capacity embedded derivatives	—		53		—		53		—		53
Preferred Units embedded derivative	—		—		139		139		—		139
December 31, 2019
Assets:
Pipeline capacity embedded derivative	$	—	$	8	$	—	$	8	$	—	$	8
Foreign currency derivative instruments	—		1		—		1		—		1
Liabilities:
Preferred Units embedded derivative	—		—		103		103		—		103

(1)The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.

Schedule of Fair Value Measurement Inputs

As of the December 31, 2020 valuation date, the Company used the forward B-rated Energy Bond Yield curve to develop the following key unobservable inputs used to value this embedded derivative:

	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value at December 31, 2020		Valuation Technique	Significant Unobservable Inputs	Range/Value
	(In millions)
Preferred Units embedded derivative	$	139	Option Model	Altus’ Imputed Interest Rate	7.32-11.73%
				Interest Rate Volatility	37.08%

Schedule of Derivative Instruments on Consolidated Balance Sheet and Statement of Consolidated Operations

The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:

	2020		2019
	(In millions)
Current Assets: Other current assets	$	6	$	2
Noncurrent Assets: Deferred charges and other	5		7
Total derivative assets	$	11	$	9
Deferred Credits and Other Noncurrent Liabilities: Other	$	192	$	103
Total derivative liabilities	$	192	$	103

Derivative Activity Recorded in the Statement of Consolidated Operations

The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations:

	For the Year Ended December 31,
	2020		2019		2018
	(In millions)
Realized:
Commodity derivative instruments	$	(135)	$	27	$	(81)
Amortization of put premium, realized loss	—		—		(39)
Foreign currency derivative instruments	(1)		—		—
Treasury-lock	—		(18)		—
Realized gain (loss), net	(136)		9		(120)
Unrealized:
Commodity derivative instruments	11		(44)		103
Pipeline capacity embedded derivatives	(61)		8		—
Foreign currency derivative instruments	(1)		1		—
Preferred Units embedded derivative	(36)		(9)		—
Unrealized gain (loss), net	(87)		(44)		103
Derivative instrument losses, net	$	(223)	$	(35)	$	(17)