Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

Unsettled Derivative Instruments   As of December 31, 2015, 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
1H16 (1)	Swaps	NYMEX WTI	17,000	$	68.50		$	—	$	—	$	—
2H16 (1)	Swaps	NYMEX WTI	12,000	74.47			—		—		—
2H16 (1)	Call Option (2)	NYMEX WTI	5,000	—			—		—		54.16
2016	Swaps	Dated Brent	9,000	97.96			—		—		—
2016	Swaps (3)	(4)	6,000	90.28		—	—		—		—
2016	Two -Way Collars	NYMEX WTI	1,000	—			—		60.00		70.00
2016	Three-Way Collars	NYMEX WTI	6,000	—			61.00		72.50		86.37
2016	Three-Way Collars	Dated Brent	8,000	—			72.50		86.25		101.79
1H17 (1)	Swaps	NYMEX WTI	3,000	60.12			—		—		—
1H17 (1)	Swaps (5)	Dated Brent	3,000	62.80			—		—		—
2H17 (1)	Call Option (2)	NYMEX WTI	3,000	—			—		—		60.12
2017	Call Option (2)	NYMEX WTI	3,000	—			—		—		57.00
2017	Two-Way Collars	NYMEX WTI	5,000	—			—		40.00		54.00

⁽¹⁾  We traditionally enter into a hedge contract term of one year. For 2016 and 2017 we have entered into various derivative hedging arrangements with a contract term of six months resulting in non-uniform annual volumes and weighted average prices.

⁽²⁾  We have entered into crude oil derivative enhanced swaps with strike prices that are above the market value as of trade commencement. To effect the enhanced non-cash swap structure, we sold call options to the applicable counterparty to receive the above market terms.

⁽³⁾ Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger.

⁽⁴⁾ The index for these derivative instruments is NYMEX WTI and Argus LLS indices.

⁽⁵⁾ We have entered into certain Dated Brent derivative contracts (swaptions), which give counterparties the option to extend for an additional 6-month period. Options covering a notional volume of 3,000 Bbls/d are exercisable on June 30, 2017. If the counterparties exercise all such options, the notional volume of our existing Dated Brent derivative contracts will increase by 3,000 Bbls/d at an average price of $62.80 per Bbl for each month during the period July 1, 2017 through December 31, 2017.

As of December 31, 2015, 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
2016	Swaps (1)	NYMEX HH	40,000	$	3.60	$	—	$	—	$	—
2016	Swaps (2)	Houston Ship Channel	30,000	4.04		—		—		—
2016	Two-Way Collars	NYMEX HH	30,000	—		—		3.00		3.50
2016	Two-Way Collars (2)	Houston Ship Channel	30,000	—		—		3.50		5.60
2016	Three-Way Collars	NYMEX HH	90,000	—		2.83		3.42		3.90

⁽¹⁾  We have entered into certain natural gas derivative contracts (swaptions), which give counterparties the option to extend for an additional 12-month period. Options covering a notional volume of 30,000 MMBtu/d are exercisable on December 22 and 23, 2016. If the counterparties exercise all such options, the notional volume of our existing natural gas derivative contracts will increase by 30,000 MMBtu/d at an average price of $3.50 per MMBtu for each month during the period January 1, 2017 through December 31, 2017.

⁽²⁾  Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger.

Fair Value of 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
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014
	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	$	582	Current Assets	$	710	Current Liabilities	$	—	Current Liabilities	$	—
	Noncurrent Assets	10		Noncurrent Assets	180		Noncurrent Liabilities	—		Noncurrent Liabilities	—
Total		$	592		$	890		$	—		$	—

Effect of derivative instruments on consolidated statement of operations

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

	Year Ended December 31,
(millions)	2015			2014			2013
Cash (Received) Paid in Settlement of Commodity Derivative Instruments
Crude Oil	$	(844	)	$	(34	)	$	52
Natural Gas	(147		)	5			(50		)
NGLs (1)	(18		)	—			—
Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments	(1,009		)	(29		)	2
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments
Crude Oil	423			(863		)	87
Natural Gas	65			(84		)	44
NGLs (1)	20			—			—
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments	508			(947		)	131
(Gain) Loss on Commodity Derivative Instruments
Crude Oil	(421		)	(897		)	139
Natural Gas	(82		)	(79		)	(6		)
NGLs (1)	2			—			—
Total (Gain) Loss on Commodity Derivative Instruments	$	(501	)	$	(976	)	$	133

⁽¹⁾ Amounts for NGLs relate to commodity derivative instruments, acquired in the Rosetta Merger, which expired as of December 31, 2015.