Derivative Instruments

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

As of June 30, 2023, the Company had the following outstanding financial commodity derivatives:

	2023
Natural Gas	Third Quarter		Fourth Quarter
Waha gas collars
Volume (MMBtu)	8,280,000		8,280,000
Weighted average floor ($/MMBtu)	$	3.03	$	3.03
Weighted average ceiling ($/MMBtu)	$	5.39	$	5.39
NYMEX collars
Volume (MMBtu)	32,200,000		29,150,000
Weighted average floor ($/MMBtu)	$	4.07	$	4.03
Weighted average ceiling ($/MMBtu)	$	6.78	$	6.61

	2023
Oil	Third Quarter		Fourth Quarter
WTI oil collars
Volume (MBbl)	920		920
Weighted average floor ($/Bbl)	$	65.00	$	65.00
Weighted average ceiling ($/Bbl)	$	89.66	$	89.66
WTI Midland oil basis swaps
Volume (MBbl)	920		920
Weighted average differential ($/Bbl)	$	1.01	$	1.01

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet

		Fair Values of Derivative Instruments
		Derivative Assets				Derivative Liabilities
(In millions)	Balance Sheet Location	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Commodity contracts	Derivative instruments (current)	$	88	$	146	$	—	$	—

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet

(In millions)	June 30, 2023		December 31, 2022
Derivative assets
Gross amounts of recognized assets	$	89	$	147
Gross amounts offset in the condensed consolidated balance sheet	(1)		(1)
Net amounts of assets presented in the condensed consolidated balance sheet	88		146
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	1		2
Net amount	$	89	$	148
Derivative liabilities
Gross amounts of recognized liabilities	$	1	$	1
Gross amounts offset in the condensed consolidated balance sheet	(1)		(1)
Net amounts of liabilities presented in the condensed consolidated balance sheet	—		—
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		1
Net amount	$	—	$	1

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations

	Three Months Ended  June 30,				Six Months Ended  June 30,
(In millions)	2023		2022		2023		2022
Cash received (paid) on settlement of derivative instruments
Gas contracts	$	82	$	(161)	$	181	$	(203)
Oil contracts	2		(132)		3		(261)
Non-cash gain (loss) on derivative instruments
Gas contracts	(96)		133		(54)		(49)
Oil contracts	—		94		(4)		56
	$	(12)	$	(66)	$	126	$	(457)