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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value Measurements [Abstract]  
Carrying Amount and Estimated Fair Values of Financial Instruments



 

 

 

 

 

 

 

 

 

 

 

 



March 31, 2018

 

December 31, 2017

 



Carrying

 

Fair

 

Carrying

 

Fair

 

(in millions)

Amount

 

Value

 

Amount

 

Value

 

Cash and cash equivalents

$

 958 

 

$

 958 

 

$

 916 

 

$

 916 

 

2018 term loan facility due December 2020 (1)(2)

 

 1,191 

 

 

 1,191 

 

 

 1,191 

 

 

 1,191 

 

Senior notes (2)

 

 3,242 

 

 

 3,199 

 

 

 3,242 

 

 

 3,358 

 

Derivative instruments, net

 

 78 

 

 

 78 

 

 

 76 

(3)

 

 76 

(3)



(1)

Concurrent with the closing of the new 2018 credit facility agreement, the Company repaid the $1,191 million secured term loan balance on April 26, 2018.  See Note 16 – Subsequent Events for more information on the 2018 credit facility.



(2)

Excludes unamortized debt issuance costs and debt discounts.



(3)

Excludes $1 million in premiums paid related to certain call options recognized as a component of derivatives assets within current assets on the condensed consolidated balance sheet.

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis



 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2018



 

Fair Value Measurements Using:

 

 

 

(in millions)

 

Quoted Prices in Active Markets (Level 1)

 

Significant Other Observable Inputs (Level 2)

 

Significant Unobservable Inputs (Level 3)

 

Assets (Liabilities) at Fair Value

Fixed price swap - natural gas assets

 

$

–  

 

$

 54 

 

$

–  

 

$

 54 

Fixed price swap - propane assets

 

 

–  

 

 

 3 

 

 

–  

 

 

 3 

Two-way costless collar assets

 

 

–  

 

 

–  

 

 

 16 

 

 

 16 

Three-way costless collar assets

 

 

–  

 

 

–  

 

 

 91 

 

 

 91 

Basis swap assets

 

 

–  

 

 

–  

 

 

 6 

 

 

 6 

Purchased call option assets

 

 

–  

 

 

–  

 

 

 18 

 

 

 18 

Interest rate swap assets

 

 

–  

 

 

 1 

 

 

–  

 

 

 1 

Fixed price swap - natural gas liabilities

 

 

–  

 

 

 (2)

 

 

–  

 

 

 (2)

Two-way costless collar liabilities

 

 

–  

 

 

–  

 

 

 (9)

 

 

 (9)

Three-way costless collar liabilities

 

 

–  

 

 

–  

 

 

 (41)

 

 

 (41)

Basis swap liabilities

 

 

–  

 

 

–  

 

 

 (7)

 

 

 (7)

Sold call option liabilities

 

 

–  

 

 

–  

 

 

 (52)

 

 

 (52)

Total

 

$

–  

 

$

 56 

 

$

 22 

 

$

 78 







 

 

 

 

 

 

 

 

 

 

 

 



 

December 31, 2017



 

Fair Value Measurements Using:

 

 

 

(in millions)

 

Quoted Prices in Active Markets (Level 1)

 

Significant Other Observable Inputs (Level 2)

 

Significant Unobservable Inputs (Level 3)

 

Assets (Liabilities) at Fair Value

Fixed price swap assets

 

$

–  

 

$

 56 

 

$

–  

 

$

 56 

Two-way costless collar assets

 

 

–  

 

 

–  

 

 

 5 

 

 

 5 

Three-way costless collar assets

 

 

–  

 

 

–  

 

 

 121 

 

 

 121 

Purchased call option assets

 

 

–  

 

 

–  

 

 

 2 

 

 

 2 

Basis swap assets

 

 

–  

 

 

–  

 

 

 2 

 

 

 2 

Fixed price swap liabilities

 

 

–  

 

 

 (1)

 

 

–  

 

 

 (1)

Two-way costless collar liabilities

 

 

–  

 

 

–  

 

 

 (1)

 

 

 (1)

Three-way costless collar liabilities

 

 

–  

 

 

–  

 

 

 (66)

 

 

 (66)

Basis swap liabilities

 

 

–  

 

 

–  

 

 

 (23)

 

 

 (23)

Sold call option liabilities

 

 

–  

 

 

–  

 

 

 (18)

 

 

 (18)

Interest rate swap liabilities

 

 

–  

 

 

 (1)

 

 

–  

 

 

 (1)

Total

 

$

–  

 

$

 54 

 

$

 22 

 

$

 76 



Reconciliations for Change in Net Fair Value of Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)



 

 

 

 

 

 



 

For the three months ended



 

March 31,

(in millions)

 

2018

 

2017

Balance at beginning of period

 

$

 22 

 

$

 (195)

Total gains (losses):

 

 

   

 

 

 

Included in earnings

 

 

 (9)

 

 

 13 

Settlements (1)

 

 

 9 

 

 

 14 

Transfers into/out of Level 3

 

 

–  

 

 

–  

Balance at end of period

 

$

 22 

 

$

 (168)

Change in gains included in earnings relating to derivatives still held as of March 31

 

$

–  

 

$

 27 



(1)

Includes $1 million amortization of premiums paid related to certain call options for the three months ended March 31, 2018.