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Three months ended March 31, 2015 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Total revenues | $ | 25 | $ | 15 | $ | 40 | |||||
Costs and expenses: | |||||||||||
Lease and facility operating | $ | 10 | $ | 4 | $ | 14 | |||||
Gathering, processing and transportation | 14 | — | 14 | ||||||||
Taxes other than income | 3 | 3 | 6 | ||||||||
Impairment of assets held for sale | 10 | — | 10 | ||||||||
General and administrative | 1 | 1 | 2 | ||||||||
Other—net | (1 | ) | — | (1 | ) | ||||||
Total costs and expenses | 37 | 8 | 45 | ||||||||
Operating income (loss) | (12 | ) | 7 | (5 | ) | ||||||
Investment income and other | 2 | 1 | 3 | ||||||||
Gain on sale of international assets | — | 41 | 41 | ||||||||
Income (loss) from discontinued operations before income taxes | (10 | ) | 49 | 39 | |||||||
Provision (benefit) for income taxes(a) | (4 | ) | (3 | ) | (7 | ) | |||||
Income (loss) from discontinued operations | $ | (6 | ) | $ | 52 | $ | 46 |
Three months ended March 31, 2014 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Total revenues | $ | 62 | $ | 31 | $ | 93 | |||||
Costs and expenses: | |||||||||||
Lease and facility operating | $ | 11 | $ | 8 | $ | 19 | |||||
Gathering, processing and transportation | 17 | — | 17 | ||||||||
Taxes other than income | 6 | 6 | 12 | ||||||||
Depreciation, depletion and amortization | 4 | 10 | 14 | ||||||||
General and administrative | 1 | 4 | 5 | ||||||||
Other—net | — | 1 | 1 | ||||||||
Total costs and expenses | 39 | 29 | 68 | ||||||||
Operating income (loss) | 23 | 2 | 25 | ||||||||
Investment income and other | 2 | 2 | 4 | ||||||||
Income (loss) from discontinued operations before income taxes | 25 | 4 | 29 | ||||||||
Provision (benefit) for income taxes | 8 | 2 | 10 | ||||||||
Income (loss) from discontinued operations | $ | 17 | $ | 2 | $ | 19 |
March 31, 2015 | |||
Total | |||
(Millions) | |||
Assets classified as held for sale | |||
Current assets: | |||
Inventories | $ | 1 | |
Total current assets | 1 | ||
Investments | 19 | ||
Properties and equipment (successful efforts method of accounting)(a) | 122 | ||
Less—accumulated depreciation, depletion and amortization | (10 | ) | |
Properties and equipment, net | 112 | ||
Total assets classified as held for sale on the Consolidated Balance Sheets | $ | 132 | |
Liabilities associated with assets held for sale | |||
Current liabilities: | |||
Accrued and other current liabilities | $ | 3 | |
Total current liabilities | 3 | ||
Asset retirement obligations | 44 | ||
Total liabilities associated with assets held for sale on the Consolidated Balance Sheets | $ | 47 |
December 31, 2014 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Assets classified as held for sale | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | — | $ | 29 | $ | 29 | |||||
Accounts receivable | — | 25 | 25 | ||||||||
Inventories | 1 | 7 | 8 | ||||||||
Other | — | 14 | 14 | ||||||||
Total current assets | 1 | 75 | 76 | ||||||||
Investments | 18 | 134 | 152 | ||||||||
Properties and equipment (successful efforts method of accounting)(a) | 132 | 445 | 577 | ||||||||
Less—accumulated depreciation, depletion and amortization | (10 | ) | (228 | ) | (238 | ) | |||||
Properties and equipment, net | 122 | 217 | 339 | ||||||||
Other noncurrent assets | — | 6 | 6 | ||||||||
Total assets classified as held for sale—discontinued operations | $ | 141 | $ | 432 | $ | 573 | |||||
Total assets classified as held for sale—continuing operations (Note 4) | 200 | — | 200 | ||||||||
Total assets classified as held for sale on the Consolidated Balance Sheets | $ | 341 | $ | 432 | $ | 773 | |||||
Liabilities associated with assets held for sale | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | — | $ | 34 | $ | 34 | |||||
Accrued and other current liabilities | 3 | 23 | 26 | ||||||||
Total current liabilities | 3 | 57 | 60 | ||||||||
Deferred income taxes | — | 13 | 13 | ||||||||
Long-term debt | — | 2 | 2 | ||||||||
Asset retirement obligations | 45 | 7 | 52 | ||||||||
Other noncurrent liabilities | — | 3 | 3 | ||||||||
Total liabilities associated with assets held for sale—discontinued operations | $ | 48 | $ | 82 | $ | 130 | |||||
Total liabilities associated with assets held for sale—continuing operations (Note 4) | $ | 2 | $ | — | $ | 2 | |||||
Total liabilities associated with assets held for sale on the Consolidated Balance Sheets | $ | 50 | $ | 82 | $ | 132 |
|
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
(Millions) | |||||||
Geologic and geophysical costs | $ | 1 | $ | 5 | |||
Unproved leasehold property impairment, amortization and expiration | 6 | 10 | |||||
Total exploration expenses | $ | 7 | $ | 15 |
|
March 31, 2015 | December 31, 2014 | ||||||
(Millions) | |||||||
Material, supplies and other | $ | 48 | $ | 43 | |||
Crude oil production in transit | 1 | 2 | |||||
Total inventories | $ | 49 | $ | 45 |
|
March 31, 2015 | December 31, 2014 | ||||||
(Millions) | |||||||
5.250% Senior Notes due 2017 | $ | 400 | $ | 400 | |||
6.000% Senior Notes due 2022 | 1,100 | 1,100 | |||||
5.250% Senior Notes due 2024 | 500 | 500 | |||||
Credit facility agreement | — | 280 | |||||
Other | 1 | 1 | |||||
Total debt | $ | 2,001 | $ | 2,281 | |||
Less: Current portion of long-term debt | 1 | 1 | |||||
Total long-term debt | $ | 2,000 | $ | 2,280 |
|
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
(Millions) | |||||||
Current: | |||||||
Federal | $ | — | $ | 1 | |||
State | — | — | |||||
— | 1 | ||||||
Deferred: | |||||||
Federal | 12 | (1 | ) | ||||
State | 1 | 13 | |||||
13 | 12 | ||||||
Total provision (benefit) | $ | 13 | $ | 13 |
|
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March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(Millions) | (Millions) | ||||||||||||||||||||||||||||||
Energy derivative assets | $ | 9 | $ | 479 | $ | 1 | $ | 489 | $ | 14 | $ | 517 | $ | 5 | $ | 536 | |||||||||||||||
Energy derivative liabilities | $ | 16 | $ | 7 | $ | 1 | $ | 24 | $ | 32 | $ | 10 | $ | — | $ | 42 | |||||||||||||||
Total debt(a) | $ | — | $ | 1,868 | $ | — | $ | 1,868 | $ | — | $ | 2,218 | $ | — | $ | 2,218 |
(a) | The carrying value of total debt, excluding capital leases, was $2,000 million and $2,280 million as of March 31, 2015 and December 31, 2014, respectively. |
|
Commodity | Period | Contract Type (a) | Location | Notional Volume (b) | Weighted Average Price (c) | ||||||||
Natural Gas | |||||||||||||
Natural Gas | Apr-Dec 2015 | Fixed Price Swaps | Henry Hub | (410 | ) | $ | 4.05 | ||||||
Natural Gas | Apr-Dec 2015 | Costless Collars | Henry Hub | (50 | ) | $ 4.00 - 4.50 | |||||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | NGPL | (18 | ) | $ | (0.18 | ) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | Rockies | (220 | ) | $ | (0.16 | ) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | San Juan | (100 | ) | $ | (0.11 | ) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | SoCal | (20 | ) | $ | 0.18 | ||||||
Natural Gas | 2016 | Fixed Price Swaps | Henry Hub | (280 | ) | $ | 3.81 | ||||||
Natural Gas | 2016 | Swaptions | Henry Hub | (90 | ) | $ | 4.23 | ||||||
Natural Gas | 2017 | Swaptions | Henry Hub | (65 | ) | $ | 4.19 | ||||||
Crude Oil | |||||||||||||
Crude Oil | Apr-Dec 2015 | Fixed Price Swaps | WTI | (19,658 | ) | $ | 94.84 | ||||||
Crude Oil | Apr-Dec 2015 | Swaptions | WTI | (1,171 | ) | $ | 97.29 | ||||||
Crude Oil | 2016 | Fixed Price Swaps | WTI | (4,500 | ) | $ | 62.04 | ||||||
Crude Oil | 2016 | Swaptions | WTI | (8,500 | ) | $ | 84.27 |
(a) | Derivatives related to crude oil production are fixed price swaps settled on the business day average and swaptions. The derivatives related to natural gas production are fixed price swaps, basis swaps, swaptions and costless collars. In connection with several natural gas and crude oil swaps entered into, we granted swaptions to the swap counterparties in exchange for receiving premium hedged prices on the natural gas and crude oil swaps. These swaptions grant the counterparty the option to enter into future swaps with us. |
(b) | Natural gas volumes are reported in BBtu/day and crude oil volumes are reported in Bbl/day. |
(c) | The weighted average price for natural gas is reported in $/MMBtu and the crude oil price is reported in $/Bbl. |
Commodity | Period | Contract Type (a) | Location (b) | Notional Volume (c) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | Multiple | (7 | ) | ||||
Natural Gas | Apr-Dec 2015 | Index | Multiple | (108 | ) | ||||
Natural Gas | 2016 | Index | Multiple | (70 | ) | ||||
Natural Gas | 2017 | Index | Multiple | (70 | ) | ||||
Natural Gas | 2018+ | Index | Multiple | (70 | ) |
(a) | We enter into exchange traded fixed price and basis swaps, over-the-counter fixed price and basis swaps, physical fixed price transactions and transactions with an index component. |
(b) | We transact at multiple locations primarily around our core assets to maximize the economic value of our transportation and asset management agreements. |
(c) | Natural gas volumes are reported in BBtu/day. |
March 31, 2015 | December 31, 2014 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
(Millions) | |||||||||||||||
Derivatives related to production | $ | 479 | $ | 7 | $ | 517 | $ | 10 | |||||||
Derivatives related to physical marketing agreements | 10 | 17 | 19 | 32 | |||||||||||
Total derivatives | $ | 489 | $ | 24 | $ | 536 | $ | 42 |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
(Millions) | |||||||
Gain (loss) from derivatives related to production(a) | $ | 122 | $ | (86 | ) | ||
Gain (loss) from derivatives related to physical marketing agreements(b) | (17 | ) | (109 | ) | |||
Net gain (loss) on derivatives not designated as hedges | $ | 105 | $ | (195 | ) |
(a) | Includes receipts totaling $158 million and payments totaling $50 million for the three months ended March 31, 2015 and 2014, respectively. |
(b) | Includes payments totaling $23 million and $118 million for the three months ended March 31, 2015 and 2014, respectively. |
Gross Amount Presented on Balance Sheet | Netting Adjustments (a) | Cash Collateral Posted (Received) | Net Amount | ||||||||||||
March 31, 2015 | (Millions) | ||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 489 | $ | (17 | ) | $ | — | $ | 472 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (24 | ) | $ | 17 | $ | 7 | $ | — | ||||||
December 31, 2014 | |||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 536 | $ | (25 | ) | $ | — | $ | 511 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (42 | ) | $ | 25 | $ | 17 | $ | — |
(a) | With all of our financial trading counterparties, we have agreements in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. Additionally, we have negotiated master netting agreements with some of our counterparties. These master netting agreements allow multiple entities that have multiple underlying agreements the ability to net derivative assets and derivative liabilities at settlement or in the event of a default or a termination under one or more of the underlying contracts. |
Counterparty Type | Gross Total | Net Total | |||||
(Millions) | |||||||
Financial institutions (Investment Grade)(a) | $ | 490 | $ | 473 | |||
490 | 473 | ||||||
Credit reserves | 1 | 1 | |||||
Credit exposure from derivatives | $ | 489 | $ | 472 |
(a) | We determine investment grade primarily using publicly available credit ratings. We include counterparties with a minimum S&P’s rating of BBB- or Moody’s Investors Service rating of Baa3 in investment grade. |
|
|
Three months ended March 31, 2015 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Total revenues | $ | 25 | $ | 15 | $ | 40 | |||||
Costs and expenses: | |||||||||||
Lease and facility operating | $ | 10 | $ | 4 | $ | 14 | |||||
Gathering, processing and transportation | 14 | — | 14 | ||||||||
Taxes other than income | 3 | 3 | 6 | ||||||||
Impairment of assets held for sale | 10 | — | 10 | ||||||||
General and administrative | 1 | 1 | 2 | ||||||||
Other—net | (1 | ) | — | (1 | ) | ||||||
Total costs and expenses | 37 | 8 | 45 | ||||||||
Operating income (loss) | (12 | ) | 7 | (5 | ) | ||||||
Investment income and other | 2 | 1 | 3 | ||||||||
Gain on sale of international assets | — | 41 | 41 | ||||||||
Income (loss) from discontinued operations before income taxes | (10 | ) | 49 | 39 | |||||||
Provision (benefit) for income taxes(a) | (4 | ) | (3 | ) | (7 | ) | |||||
Income (loss) from discontinued operations | $ | (6 | ) | $ | 52 | $ | 46 |
Three months ended March 31, 2014 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Total revenues | $ | 62 | $ | 31 | $ | 93 | |||||
Costs and expenses: | |||||||||||
Lease and facility operating | $ | 11 | $ | 8 | $ | 19 | |||||
Gathering, processing and transportation | 17 | — | 17 | ||||||||
Taxes other than income | 6 | 6 | 12 | ||||||||
Depreciation, depletion and amortization | 4 | 10 | 14 | ||||||||
General and administrative | 1 | 4 | 5 | ||||||||
Other—net | — | 1 | 1 | ||||||||
Total costs and expenses | 39 | 29 | 68 | ||||||||
Operating income (loss) | 23 | 2 | 25 | ||||||||
Investment income and other | 2 | 2 | 4 | ||||||||
Income (loss) from discontinued operations before income taxes | 25 | 4 | 29 | ||||||||
Provision (benefit) for income taxes | 8 | 2 | 10 | ||||||||
Income (loss) from discontinued operations | $ | 17 | $ | 2 | $ | 19 |
Three months ended March 31, 2015 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Total revenues | $ | 25 | $ | 15 | $ | 40 | |||||
Costs and expenses: | |||||||||||
Lease and facility operating | $ | 10 | $ | 4 | $ | 14 | |||||
Gathering, processing and transportation | 14 | — | 14 | ||||||||
Taxes other than income | 3 | 3 | 6 | ||||||||
Impairment of assets held for sale | 10 | — | 10 | ||||||||
General and administrative | 1 | 1 | 2 | ||||||||
Other—net | (1 | ) | — | (1 | ) | ||||||
Total costs and expenses | 37 | 8 | 45 | ||||||||
Operating income (loss) | (12 | ) | 7 | (5 | ) | ||||||
Investment income and other | 2 | 1 | 3 | ||||||||
Gain on sale of international assets | — | 41 | 41 | ||||||||
Income (loss) from discontinued operations before income taxes | (10 | ) | 49 | 39 | |||||||
Provision (benefit) for income taxes(a) | (4 | ) | (3 | ) | (7 | ) | |||||
Income (loss) from discontinued operations | $ | (6 | ) | $ | 52 | $ | 46 |
Three months ended March 31, 2014 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Total revenues | $ | 62 | $ | 31 | $ | 93 | |||||
Costs and expenses: | |||||||||||
Lease and facility operating | $ | 11 | $ | 8 | $ | 19 | |||||
Gathering, processing and transportation | 17 | — | 17 | ||||||||
Taxes other than income | 6 | 6 | 12 | ||||||||
Depreciation, depletion and amortization | 4 | 10 | 14 | ||||||||
General and administrative | 1 | 4 | 5 | ||||||||
Other—net | — | 1 | 1 | ||||||||
Total costs and expenses | 39 | 29 | 68 | ||||||||
Operating income (loss) | 23 | 2 | 25 | ||||||||
Investment income and other | 2 | 2 | 4 | ||||||||
Income (loss) from discontinued operations before income taxes | 25 | 4 | 29 | ||||||||
Provision (benefit) for income taxes | 8 | 2 | 10 | ||||||||
Income (loss) from discontinued operations | $ | 17 | $ | 2 | $ | 19 |
March 31, 2015 | |||
Total | |||
(Millions) | |||
Assets classified as held for sale | |||
Current assets: | |||
Inventories | $ | 1 | |
Total current assets | 1 | ||
Investments | 19 | ||
Properties and equipment (successful efforts method of accounting)(a) | 122 | ||
Less—accumulated depreciation, depletion and amortization | (10 | ) | |
Properties and equipment, net | 112 | ||
Total assets classified as held for sale on the Consolidated Balance Sheets | $ | 132 | |
Liabilities associated with assets held for sale | |||
Current liabilities: | |||
Accrued and other current liabilities | $ | 3 | |
Total current liabilities | 3 | ||
Asset retirement obligations | 44 | ||
Total liabilities associated with assets held for sale on the Consolidated Balance Sheets | $ | 47 |
December 31, 2014 | |||||||||||
Domestic | International | Total | |||||||||
(Millions) | |||||||||||
Assets classified as held for sale | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | — | $ | 29 | $ | 29 | |||||
Accounts receivable | — | 25 | 25 | ||||||||
Inventories | 1 | 7 | 8 | ||||||||
Other | — | 14 | 14 | ||||||||
Total current assets | 1 | 75 | 76 | ||||||||
Investments | 18 | 134 | 152 | ||||||||
Properties and equipment (successful efforts method of accounting)(a) | 132 | 445 | 577 | ||||||||
Less—accumulated depreciation, depletion and amortization | (10 | ) | (228 | ) | (238 | ) | |||||
Properties and equipment, net | 122 | 217 | 339 | ||||||||
Other noncurrent assets | — | 6 | 6 | ||||||||
Total assets classified as held for sale—discontinued operations | $ | 141 | $ | 432 | $ | 573 | |||||
Total assets classified as held for sale—continuing operations (Note 4) | 200 | — | 200 | ||||||||
Total assets classified as held for sale on the Consolidated Balance Sheets | $ | 341 | $ | 432 | $ | 773 | |||||
Liabilities associated with assets held for sale | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | — | $ | 34 | $ | 34 | |||||
Accrued and other current liabilities | 3 | 23 | 26 | ||||||||
Total current liabilities | 3 | 57 | 60 | ||||||||
Deferred income taxes | — | 13 | 13 | ||||||||
Long-term debt | — | 2 | 2 | ||||||||
Asset retirement obligations | 45 | 7 | 52 | ||||||||
Other noncurrent liabilities | — | 3 | 3 | ||||||||
Total liabilities associated with assets held for sale—discontinued operations | $ | 48 | $ | 82 | $ | 130 | |||||
Total liabilities associated with assets held for sale—continuing operations (Note 4) | $ | 2 | $ | — | $ | 2 | |||||
Total liabilities associated with assets held for sale on the Consolidated Balance Sheets | $ | 50 | $ | 82 | $ | 132 |
|
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
(Millions) | |||||||
Geologic and geophysical costs | $ | 1 | $ | 5 | |||
Unproved leasehold property impairment, amortization and expiration | 6 | 10 | |||||
Total exploration expenses | $ | 7 | $ | 15 |
|
March 31, 2015 | December 31, 2014 | ||||||
(Millions) | |||||||
Material, supplies and other | $ | 48 | $ | 43 | |||
Crude oil production in transit | 1 | 2 | |||||
Total inventories | $ | 49 | $ | 45 |
|
March 31, 2015 | December 31, 2014 | ||||||
(Millions) | |||||||
5.250% Senior Notes due 2017 | $ | 400 | $ | 400 | |||
6.000% Senior Notes due 2022 | 1,100 | 1,100 | |||||
5.250% Senior Notes due 2024 | 500 | 500 | |||||
Credit facility agreement | — | 280 | |||||
Other | 1 | 1 | |||||
Total debt | $ | 2,001 | $ | 2,281 | |||
Less: Current portion of long-term debt | 1 | 1 | |||||
Total long-term debt | $ | 2,000 | $ | 2,280 |
|
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
(Millions) | |||||||
Current: | |||||||
Federal | $ | — | $ | 1 | |||
State | — | — | |||||
— | 1 | ||||||
Deferred: | |||||||
Federal | 12 | (1 | ) | ||||
State | 1 | 13 | |||||
13 | 12 | ||||||
Total provision (benefit) | $ | 13 | $ | 13 |
|
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(Millions) | (Millions) | ||||||||||||||||||||||||||||||
Energy derivative assets | $ | 9 | $ | 479 | $ | 1 | $ | 489 | $ | 14 | $ | 517 | $ | 5 | $ | 536 | |||||||||||||||
Energy derivative liabilities | $ | 16 | $ | 7 | $ | 1 | $ | 24 | $ | 32 | $ | 10 | $ | — | $ | 42 | |||||||||||||||
Total debt(a) | $ | — | $ | 1,868 | $ | — | $ | 1,868 | $ | — | $ | 2,218 | $ | — | $ | 2,218 |
(a) | The carrying value of total debt, excluding capital leases, was $2,000 million and $2,280 million as of March 31, 2015 and December 31, 2014, respectively. |
|
Commodity | Period | Contract Type (a) | Location | Notional Volume (b) | Weighted Average Price (c) | ||||||||
Natural Gas | |||||||||||||
Natural Gas | Apr-Dec 2015 | Fixed Price Swaps | Henry Hub | (410 | ) | $ | 4.05 | ||||||
Natural Gas | Apr-Dec 2015 | Costless Collars | Henry Hub | (50 | ) | $ 4.00 - 4.50 | |||||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | NGPL | (18 | ) | $ | (0.18 | ) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | Rockies | (220 | ) | $ | (0.16 | ) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | San Juan | (100 | ) | $ | (0.11 | ) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | SoCal | (20 | ) | $ | 0.18 | ||||||
Natural Gas | 2016 | Fixed Price Swaps | Henry Hub | (280 | ) | $ | 3.81 | ||||||
Natural Gas | 2016 | Swaptions | Henry Hub | (90 | ) | $ | 4.23 | ||||||
Natural Gas | 2017 | Swaptions | Henry Hub | (65 | ) | $ | 4.19 | ||||||
Crude Oil | |||||||||||||
Crude Oil | Apr-Dec 2015 | Fixed Price Swaps | WTI | (19,658 | ) | $ | 94.84 | ||||||
Crude Oil | Apr-Dec 2015 | Swaptions | WTI | (1,171 | ) | $ | 97.29 | ||||||
Crude Oil | 2016 | Fixed Price Swaps | WTI | (4,500 | ) | $ | 62.04 | ||||||
Crude Oil | 2016 | Swaptions | WTI | (8,500 | ) | $ | 84.27 |
(a) | Derivatives related to crude oil production are fixed price swaps settled on the business day average and swaptions. The derivatives related to natural gas production are fixed price swaps, basis swaps, swaptions and costless collars. In connection with several natural gas and crude oil swaps entered into, we granted swaptions to the swap counterparties in exchange for receiving premium hedged prices on the natural gas and crude oil swaps. These swaptions grant the counterparty the option to enter into future swaps with us. |
(b) | Natural gas volumes are reported in BBtu/day and crude oil volumes are reported in Bbl/day. |
(c) | The weighted average price for natural gas is reported in $/MMBtu and the crude oil price is reported in $/Bbl. |
Commodity | Period | Contract Type (a) | Location (b) | Notional Volume (c) | |||||
Natural Gas | Apr-Dec 2015 | Basis Swaps | Multiple | (7 | ) | ||||
Natural Gas | Apr-Dec 2015 | Index | Multiple | (108 | ) | ||||
Natural Gas | 2016 | Index | Multiple | (70 | ) | ||||
Natural Gas | 2017 | Index | Multiple | (70 | ) | ||||
Natural Gas | 2018+ | Index | Multiple | (70 | ) |
(a) | We enter into exchange traded fixed price and basis swaps, over-the-counter fixed price and basis swaps, physical fixed price transactions and transactions with an index component. |
(b) | We transact at multiple locations primarily around our core assets to maximize the economic value of our transportation and asset management agreements. |
(c) | Natural gas volumes are reported in BBtu/day. |
March 31, 2015 | December 31, 2014 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
(Millions) | |||||||||||||||
Derivatives related to production | $ | 479 | $ | 7 | $ | 517 | $ | 10 | |||||||
Derivatives related to physical marketing agreements | 10 | 17 | 19 | 32 | |||||||||||
Total derivatives | $ | 489 | $ | 24 | $ | 536 | $ | 42 |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
(Millions) | |||||||
Gain (loss) from derivatives related to production(a) | $ | 122 | $ | (86 | ) | ||
Gain (loss) from derivatives related to physical marketing agreements(b) | (17 | ) | (109 | ) | |||
Net gain (loss) on derivatives not designated as hedges | $ | 105 | $ | (195 | ) |
(a) | Includes receipts totaling $158 million and payments totaling $50 million for the three months ended March 31, 2015 and 2014, respectively. |
(b) | Includes payments totaling $23 million and $118 million for the three months ended March 31, 2015 and 2014, respectively. |
Gross Amount Presented on Balance Sheet | Netting Adjustments (a) | Cash Collateral Posted (Received) | Net Amount | ||||||||||||
March 31, 2015 | (Millions) | ||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 489 | $ | (17 | ) | $ | — | $ | 472 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (24 | ) | $ | 17 | $ | 7 | $ | — | ||||||
December 31, 2014 | |||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 536 | $ | (25 | ) | $ | — | $ | 511 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (42 | ) | $ | 25 | $ | 17 | $ | — |
(a) | With all of our financial trading counterparties, we have agreements in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. Additionally, we have negotiated master netting agreements with some of our counterparties. These master netting agreements allow multiple entities that have multiple underlying agreements the ability to net derivative assets and derivative liabilities at settlement or in the event of a default or a termination under one or more of the underlying contracts. |
Counterparty Type | Gross Total | Net Total | |||||
(Millions) | |||||||
Financial institutions (Investment Grade)(a) | $ | 490 | $ | 473 | |||
490 | 473 | ||||||
Credit reserves | 1 | 1 | |||||
Credit exposure from derivatives | $ | 489 | $ | 472 |
(a) | We determine investment grade primarily using publicly available credit ratings. We include counterparties with a minimum S&P’s rating of BBB- or Moody’s Investors Service rating of Baa3 in investment grade. |
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