Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

Unsettled Derivative Instruments   As of June 30, 2012, we had entered into the following crude oil derivative instruments: 

				Swaps		Collars
Settlement Period	Type of Contract	Index	Bbls Per Day	Weighted Average Fixed Price		Weighted Average  Short Put  Price		Weighted Average Floor Price		Weighted Average  Ceiling Price
Instruments Entered Into as of June 30, 2012
2012	Swaps	NYMEX WTI  (1)	5,000	$	91.84	$	—	$	—	$	—
2012	Swaps	Dated Brent	8,000	89.06		—		—		—
2012	Three-Way Collars	NYMEX WTI	23,000	—		61.09		83.04		101.66
2012	Three-Way Collars	Dated Brent	3,000	—		70.00		95.83		105.00
2013	Swaps	NYMEX WTI	3,000	87.00		—		—		—
2013	Swaps	Dated Brent	3,000	98.03		—		—		—
2013	Two-Way Collars	NYMEX WTI	5,000	—		—		95.00		115.00
2013	Three-Way Collars	NYMEX WTI	7,000	—		63.57		83.57		109.04
2013	Three-Way Collars	Dated Brent	26,000	—		82.88		100.86		127.32
2014	Swaps	NYMEX WTI	5,000	86.50		—		—		—
2014	Swaps	Dated Brent	8,000	105.94		—		—		—
2014	Three-Way Collars	Dated Brent	10,000	—		85.00		98.50		129.24

⁽¹⁾  West Texas Intermediate

As of June 30, 2012, we had entered into the following natural gas derivative instruments:

				Swaps		Collars
Settlement Period	Type of Contract	Index	MMBtu Per Day	Weighted Average Fixed Price		Weighted Average Short Put  Price		Weighted Average Floor Price		Weighted Average Ceiling Price
Instruments Entered Into as of June 30, 2012
2012	Swaps	NYMEX HH (1)	30,000	$	5.10	$	—	$	—	$	—
2012	Two-Way Collars	NYMEX HH	40,000	—		—		3.25		5.14
2012	Three-Way Collars	NYMEX HH	110,000	—		4.44		5.25		6.66
2013	Swaps	NYMEX HH	30,000	5.25		—		—		—
2013	Two-Way Collars	NYMEX HH	40,000	—		—		3.25		5.14
2013	Three-Way Collars	NYMEX HH	100,000	—		3.88		4.75		5.63

⁽¹⁾  Henry Hub

As of June 30, 2012, we had entered into the following natural gas basis swaps: 

Settlement Period	Index	Index Less Differential	MMBtu Per Day	Weighted Average Differential
2012	IFERC CIG (1)	NYMEX HH	150,000	$	(0.52	)

⁽¹⁾  Colorado Interstate Gas – Northern System

Fair Value of Derivative Instruments

Fair Value Amounts and Gains and Losses on Derivative Instruments   The fair values of derivative instruments in our consolidated balance sheets were as follows: 

Fair Value of Derivative Instruments
	Asset Derivative Instruments						Liability Derivative Instruments
	June 30, 2012			December 31, 2011			June 30, 2012			December 31, 2011
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair  Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
(millions)
Commodity DerivativeInstruments	Current Assets	$	85	Current Assets	$	10	Current Liabilities	$	2	Current Liabilities	$	76
	Noncurrent Assets	85		Noncurrent Assets	37		Noncurrent Liabilities	—		Noncurrent Liabilities	7
Total		$	170		$	47		$	2		$	83

Effect of derivative instruments on consolidated statement of operations

The effect of derivative instruments on our consolidated statements of operations was as follows: 

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
(millions)
Realized Mark-to-Market (Gain) Loss	$	1		$	(1	)	$	24		$	(17	)
Unrealized Mark-to-Market (Gain) Loss	(277		)	(142		)	(204		)	160
Total (Gain) Loss on Commodity Derivative Instruments	$	(276	)	$	(143	)	$	(180	)	$	143