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Three months ended June 30, | Six months ended June 30, | |||||||
2015 | 2015 | |||||||
(Millions) | ||||||||
Revenues | $ | 198 | $ | 689 | ||||
Net income from continuing operations attributable to WPX Energy, Inc. | $ | 6 | $ | 50 |
|
Three months ended June 30, 2016 | Three months ended June 30, 2015 | ||||||
Domestic and Total | Domestic and Total | ||||||
(Millions) | |||||||
Total revenues(a) | $ | (4 | ) | $ | 147 | ||
Costs and expenses: | |||||||
Lease and facility operating | $ | 1 | $ | 26 | |||
Gathering, processing and transportation | 5 | 67 | |||||
Taxes other than income | (1 | ) | 4 | ||||
Gas management | — | 1 | |||||
Depreciation, depletion and amortization | — | 104 | |||||
Impairment of assets held for sale | — | 6 | |||||
Gain on sales of assets | — | (1 | ) | ||||
General and administrative | 1 | 11 | |||||
Other—net | 2 | 2 | |||||
Total costs and expenses | 8 | 220 | |||||
Operating income (loss) | (12 | ) | (73 | ) | |||
Investment income and other | — | 1 | |||||
Gain on sale of domestic assets | 52 | — | |||||
Income (loss) from discontinued operations before income taxes | 40 | (72 | ) | ||||
Provision (benefit) for income taxes | 15 | (19 | ) | ||||
Income (loss) from discontinued operations | $ | 25 | $ | (53 | ) |
Six months ended June 30, 2016 | Six months ended June 30, 2015 | ||||||||||||||
Domestic and Total | Domestic | International | Total | ||||||||||||
(Millions) | |||||||||||||||
Total revenues(a) | $ | 64 | $ | 324 | $ | 15 | $ | 339 | |||||||
Costs and expenses: | |||||||||||||||
Lease and facility operating | $ | 18 | $ | 58 | $ | 4 | $ | 62 | |||||||
Gathering, processing and transportation | 48 | 137 | — | 137 | |||||||||||
Taxes other than income | 1 | 14 | 3 | 17 | |||||||||||
Gas management | — | 1 | — | 1 | |||||||||||
Depreciation, depletion and amortization | 9 | 203 | — | 203 | |||||||||||
Impairment of assets held for sale | — | 16 | — | 16 | |||||||||||
Gain on sale of assets | — | (1 | ) | — | (1 | ) | |||||||||
General and administrative | 8 | 21 | 1 | 22 | |||||||||||
Other—net | 6 | 6 | — | 6 | |||||||||||
Total costs and expenses | 90 | 455 | 8 | 463 | |||||||||||
Operating income (loss) | (26 | ) | (131 | ) | 7 | (124 | ) | ||||||||
Investment income and other | — | 3 | 1 | 4 | |||||||||||
Gain on sale of international interests | — | — | 41 | 41 | |||||||||||
Gain on sale of domestic assets | 52 | — | — | — | |||||||||||
Income (loss) from discontinued operations before income taxes | 26 | (128 | ) | 49 | (79 | ) | |||||||||
Provision (benefit) for income taxes(b) | 13 | (39 | ) | (3 | ) | (42 | ) | ||||||||
Income (loss) from discontinued operations | $ | 13 | $ | (89 | ) | $ | 52 | $ | (37 | ) |
December 31, 2015 | |||
Total | |||
Assets classified as held for sale | |||
Current assets: | |||
Accounts receivable (including an affiliate receivable) | $ | 55 | |
Derivative assets | 68 | ||
Inventories | 13 | ||
Other | 2 | ||
Total current assets | 138 | ||
Properties and equipment, net(a) | 880 | ||
Derivative assets | 14 | ||
Total assets classified as held for sale—discontinued operations | $ | 1,032 | |
Total assets classified as held for sale—continuing operations (Note 5) | 40 | ||
Total assets classified as held for sale on the Consolidated Balance Sheets | $ | 1,072 | |
Liabilities associated with assets held for sale | |||
Current liabilities: | |||
Accounts payable | $ | 93 | |
Accrued and other current liabilities | 47 | ||
Total current liabilities | 140 | ||
Asset retirement obligations | 133 | ||
Total liabilities associated with assets held for sale on the Consolidated Balance Sheets | $ | 273 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Millions) | |||||||||||||||
Geologic and geophysical costs | $ | 1 | $ | 1 | $ | 1 | $ | 2 | |||||||
Dry hole costs and impairments of exploratory area well costs | 1 | — | 1 | — | |||||||||||
Unproved leasehold property impairment, amortization and expiration | 10 | 5 | 19 | 11 | |||||||||||
Total exploration expenses | $ | 12 | $ | 6 | $ | 21 | $ | 13 |
|
June 30, 2016 | December 31, 2015 | ||||||
(Millions) | |||||||
Material, supplies and other | $ | 36 | $ | 44 | |||
Crude oil production in transit | 1 | 2 | |||||
Total inventories | $ | 37 | $ | 46 |
|
June 30, 2016 | December 31, 2015 | ||||||
(Millions) | |||||||
5.250% Senior Notes due 2017 | $ | 160 | $ | 355 | |||
7.500% Senior Notes due 2020 | 500 | 500 | |||||
6.000% Senior Notes due 2022 | 1,100 | 1,100 | |||||
8.250% Senior Notes due 2023 | 500 | 500 | |||||
5.250% Senior Notes due 2024 | 500 | 500 | |||||
Credit facility agreement | — | 265 | |||||
Other | — | 1 | |||||
Total debt | $ | 2,760 | $ | 3,221 | |||
Less: Current portion of long-term debt, net(a) | 160 | 1 | |||||
Total long-term debt | $ | 2,600 | $ | 3,220 | |||
Less: Debt issuance costs on long-term debt(b) | 28 | 31 | |||||
Total long-term debt, net(b) | $ | 2,572 | $ | 3,189 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Millions) | |||||||||||||||
Current: | |||||||||||||||
Federal | $ | — | $ | — | $ | — | $ | — | |||||||
State | — | 1 | — | — | |||||||||||
— | 1 | — | — | ||||||||||||
Deferred: | |||||||||||||||
Federal | (119 | ) | 6 | (119 | ) | 33 | |||||||||
State | (11 | ) | (6 | ) | 24 | (3 | ) | ||||||||
(130 | ) | — | (95 | ) | 30 | ||||||||||
Total provision (benefit) | $ | (130 | ) | $ | 1 | $ | (95 | ) | $ | 30 |
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June 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(Millions) | (Millions) | ||||||||||||||||||||||||||||||
Energy derivative assets | $ | — | $ | 122 | $ | — | $ | 122 | $ | — | $ | 359 | $ | — | $ | 359 | |||||||||||||||
Energy derivative liabilities | $ | — | $ | 89 | $ | — | $ | 89 | $ | — | $ | 15 | $ | — | $ | 15 | |||||||||||||||
Total debt(a) | $ | — | $ | 2,619 | $ | — | $ | 2,619 | $ | — | $ | 2,495 | $ | — | $ | 2,495 |
(a) | The carrying value of total debt, excluding capital leases and debt issuance costs, was $2,760 million and $3,220 million as of June 30, 2016 and December 31, 2015, respectively. |
|
Commodity | Period | Contract Type (a) | Location | Notional Volume (b) | Weighted Average Price (c) | ||||||||
Crude Oil | |||||||||||||
Crude Oil | Jul -Dec 2016 | Fixed Price Swaps | WTI | (30,712 | ) | $ | 60.16 | ||||||
Crude Oil | Jul -Dec 2016 | Basis Swaps | Midland-Cushing | (5,000 | ) | $ | (0.45 | ) | |||||
Crude Oil | Jul -Dec 2016 | Fixed Price Calls | WTI | (1,900 | ) | $ | 50.70 | ||||||
Crude Oil | 2017 | Fixed Price Swaps | WTI | (22,804 | ) | $ | 50.71 | ||||||
Crude Oil | 2017 | Swaptions | WTI | (3,264 | ) | $ | 51.22 | ||||||
Crude Oil | 2017 | Fixed Price Calls | WTI | (2,000 | ) | $ | 57.10 | ||||||
Crude Oil | 2018 | Fixed Price Swaps | WTI | (3,000 | ) | $ | 60.08 | ||||||
Crude Oil | 2018 | Fixed Price Calls | WTI | (5,000 | ) | $ | 58.89 | ||||||
Natural Gas | |||||||||||||
Natural Gas | Jul -Dec 2016 | Fixed Price Swaps | Henry Hub | (146 | ) | $ | 3.93 | ||||||
Natural Gas | Jul -Dec 2016 | Basis Swaps | Permian | (38 | ) | $ | (0.17 | ) | |||||
Natural Gas | Jul -Dec 2016 | Basis Swaps | San Juan | (100 | ) | $ | (0.18 | ) | |||||
Natural Gas | 2017 | Fixed Price Swaps | Henry Hub | (90 | ) | $ | 2.82 | ||||||
Natural Gas | 2017 | Basis Swaps | Permian | (10 | ) | $ | (0.15 | ) | |||||
Natural Gas | 2017 | Basis Swaps | San Juan | (33 | ) | $ | (0.16 | ) | |||||
Natural Gas | 2017 | Fixed Price Calls | Henry Hub | (16 | ) | $ | 4.50 | ||||||
Natural Gas | 2017 | Swaptions | Henry Hub | (65 | ) | $ | 4.19 | ||||||
Natural Gas | 2018 | Fixed Price Calls | Henry Hub | (16 | ) | $ | 4.75 | ||||||
Commodity | Period | Contract Type | Location(d) | Notional Volume (b) | Weighted Average Price (e) | ||||||||
Physical Derivatives | |||||||||||||
Natural Gas | Jul -Dec 2016 | Index | Multiple | (65 | ) | N/A | |||||||
Natural Gas | 2017 | Index | Multiple | (16 | ) | N/A |
(a) | Derivatives related to crude oil production are fixed price swaps, basis swaps, calls and swaptions. The derivatives related to natural gas production are fixed price swaps, basis swaps, calls and swaptions. 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) | Crude oil volumes are reported in Bbl/day and natural gas volumes are reported in BBtu/day. |
(c) | The weighted average price for crude oil price is reported in $/Bbl and natural gas is reported in $/MMBtu. |
(d) | We transact at multiple locations primarily around our core assets to maximize the economic value of our transportation and asset management agreements. |
(e) | Weighted average price is not reported since the notional volumes represent a net position comprised of buys and sells with positive and negative transaction prices. |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
(Millions) | |||||||||||||||
Total derivatives | $ | 122 | $ | 89 | $ | 359 | $ | 15 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Millions) | |||||||||||||||
Gain (loss) from derivatives related to production(a) | $ | (154 | ) | $ | (68 | ) | $ | (97 | ) | $ | 54 | ||||
Gain (loss) from derivatives related to physical marketing agreements(b) | — | (3 | ) | — | (20 | ) | |||||||||
Net gain (loss) on derivatives not designated as hedges | $ | (154 | ) | $ | (71 | ) | $ | (97 | ) | $ | 34 |
(a) | Includes settlements totaling $69 million and $137 million for the three months ended June 30, 2016 and 2015, respectively; and settlements totaling $201 million and $295 million for the six months ended June 30, 2016 and 2015, respectively. |
(b) | Includes settlements totaling less than $1 million and payments totaling $5 million for the three months ended June 30, 2016 and 2015, respectively; and settlements totaling $1 million and payments totaling $28 million for the six months ended June 30, 2016 and 2015, respectively. |
Gross Amount Presented on Balance Sheet | Netting Adjustments (a) | Cash Collateral Posted (Received) | Net Amount | ||||||||||||
June 30, 2016 | (Millions) | ||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 122 | $ | (61 | ) | $ | — | $ | 61 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (89 | ) | $ | 61 | $ | — | $ | (28 | ) | |||||
December 31, 2015 | |||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 359 | $ | (14 | ) | $ | — | $ | 345 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (15 | ) | $ | 14 | $ | — | $ | (1 | ) |
(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) | $ | 122 | $ | 61 | |||
Credit exposure from derivatives | $ | 122 | $ | 61 |
(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 June 30, | Six months ended June 30, | |||||||
2015 | 2015 | |||||||
(Millions) | ||||||||
Revenues | $ | 198 | $ | 689 | ||||
Net income from continuing operations attributable to WPX Energy, Inc. | $ | 6 | $ | 50 |
|
Three months ended June 30, 2016 | Three months ended June 30, 2015 | ||||||
Domestic and Total | Domestic and Total | ||||||
(Millions) | |||||||
Total revenues(a) | $ | (4 | ) | $ | 147 | ||
Costs and expenses: | |||||||
Lease and facility operating | $ | 1 | $ | 26 | |||
Gathering, processing and transportation | 5 | 67 | |||||
Taxes other than income | (1 | ) | 4 | ||||
Gas management | — | 1 | |||||
Depreciation, depletion and amortization | — | 104 | |||||
Impairment of assets held for sale | — | 6 | |||||
Gain on sales of assets | — | (1 | ) | ||||
General and administrative | 1 | 11 | |||||
Other—net | 2 | 2 | |||||
Total costs and expenses | 8 | 220 | |||||
Operating income (loss) | (12 | ) | (73 | ) | |||
Investment income and other | — | 1 | |||||
Gain on sale of domestic assets | 52 | — | |||||
Income (loss) from discontinued operations before income taxes | 40 | (72 | ) | ||||
Provision (benefit) for income taxes | 15 | (19 | ) | ||||
Income (loss) from discontinued operations | $ | 25 | $ | (53 | ) |
Six months ended June 30, 2016 | Six months ended June 30, 2015 | ||||||||||||||
Domestic and Total | Domestic | International | Total | ||||||||||||
(Millions) | |||||||||||||||
Total revenues(a) | $ | 64 | $ | 324 | $ | 15 | $ | 339 | |||||||
Costs and expenses: | |||||||||||||||
Lease and facility operating | $ | 18 | $ | 58 | $ | 4 | $ | 62 | |||||||
Gathering, processing and transportation | 48 | 137 | — | 137 | |||||||||||
Taxes other than income | 1 | 14 | 3 | 17 | |||||||||||
Gas management | — | 1 | — | 1 | |||||||||||
Depreciation, depletion and amortization | 9 | 203 | — | 203 | |||||||||||
Impairment of assets held for sale | — | 16 | — | 16 | |||||||||||
Gain on sale of assets | — | (1 | ) | — | (1 | ) | |||||||||
General and administrative | 8 | 21 | 1 | 22 | |||||||||||
Other—net | 6 | 6 | — | 6 | |||||||||||
Total costs and expenses | 90 | 455 | 8 | 463 | |||||||||||
Operating income (loss) | (26 | ) | (131 | ) | 7 | (124 | ) | ||||||||
Investment income and other | — | 3 | 1 | 4 | |||||||||||
Gain on sale of international interests | — | — | 41 | 41 | |||||||||||
Gain on sale of domestic assets | 52 | — | — | — | |||||||||||
Income (loss) from discontinued operations before income taxes | 26 | (128 | ) | 49 | (79 | ) | |||||||||
Provision (benefit) for income taxes(b) | 13 | (39 | ) | (3 | ) | (42 | ) | ||||||||
Income (loss) from discontinued operations | $ | 13 | $ | (89 | ) | $ | 52 | $ | (37 | ) |
December 31, 2015 | |||
Total | |||
Assets classified as held for sale | |||
Current assets: | |||
Accounts receivable (including an affiliate receivable) | $ | 55 | |
Derivative assets | 68 | ||
Inventories | 13 | ||
Other | 2 | ||
Total current assets | 138 | ||
Properties and equipment, net(a) | 880 | ||
Derivative assets | 14 | ||
Total assets classified as held for sale—discontinued operations | $ | 1,032 | |
Total assets classified as held for sale—continuing operations (Note 5) | 40 | ||
Total assets classified as held for sale on the Consolidated Balance Sheets | $ | 1,072 | |
Liabilities associated with assets held for sale | |||
Current liabilities: | |||
Accounts payable | $ | 93 | |
Accrued and other current liabilities | 47 | ||
Total current liabilities | 140 | ||
Asset retirement obligations | 133 | ||
Total liabilities associated with assets held for sale on the Consolidated Balance Sheets | $ | 273 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Millions) | |||||||||||||||
Geologic and geophysical costs | $ | 1 | $ | 1 | $ | 1 | $ | 2 | |||||||
Dry hole costs and impairments of exploratory area well costs | 1 | — | 1 | — | |||||||||||
Unproved leasehold property impairment, amortization and expiration | 10 | 5 | 19 | 11 | |||||||||||
Total exploration expenses | $ | 12 | $ | 6 | $ | 21 | $ | 13 |
|
June 30, 2016 | December 31, 2015 | ||||||
(Millions) | |||||||
Material, supplies and other | $ | 36 | $ | 44 | |||
Crude oil production in transit | 1 | 2 | |||||
Total inventories | $ | 37 | $ | 46 |
|
June 30, 2016 | December 31, 2015 | ||||||
(Millions) | |||||||
5.250% Senior Notes due 2017 | $ | 160 | $ | 355 | |||
7.500% Senior Notes due 2020 | 500 | 500 | |||||
6.000% Senior Notes due 2022 | 1,100 | 1,100 | |||||
8.250% Senior Notes due 2023 | 500 | 500 | |||||
5.250% Senior Notes due 2024 | 500 | 500 | |||||
Credit facility agreement | — | 265 | |||||
Other | — | 1 | |||||
Total debt | $ | 2,760 | $ | 3,221 | |||
Less: Current portion of long-term debt, net(a) | 160 | 1 | |||||
Total long-term debt | $ | 2,600 | $ | 3,220 | |||
Less: Debt issuance costs on long-term debt(b) | 28 | 31 | |||||
Total long-term debt, net(b) | $ | 2,572 | $ | 3,189 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Millions) | |||||||||||||||
Current: | |||||||||||||||
Federal | $ | — | $ | — | $ | — | $ | — | |||||||
State | — | 1 | — | — | |||||||||||
— | 1 | — | — | ||||||||||||
Deferred: | |||||||||||||||
Federal | (119 | ) | 6 | (119 | ) | 33 | |||||||||
State | (11 | ) | (6 | ) | 24 | (3 | ) | ||||||||
(130 | ) | — | (95 | ) | 30 | ||||||||||
Total provision (benefit) | $ | (130 | ) | $ | 1 | $ | (95 | ) | $ | 30 |
|
June 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(Millions) | (Millions) | ||||||||||||||||||||||||||||||
Energy derivative assets | $ | — | $ | 122 | $ | — | $ | 122 | $ | — | $ | 359 | $ | — | $ | 359 | |||||||||||||||
Energy derivative liabilities | $ | — | $ | 89 | $ | — | $ | 89 | $ | — | $ | 15 | $ | — | $ | 15 | |||||||||||||||
Total debt(a) | $ | — | $ | 2,619 | $ | — | $ | 2,619 | $ | — | $ | 2,495 | $ | — | $ | 2,495 |
(a) | The carrying value of total debt, excluding capital leases and debt issuance costs, was $2,760 million and $3,220 million as of June 30, 2016 and December 31, 2015, respectively. |
|
Commodity | Period | Contract Type (a) | Location | Notional Volume (b) | Weighted Average Price (c) | ||||||||
Crude Oil | |||||||||||||
Crude Oil | Jul -Dec 2016 | Fixed Price Swaps | WTI | (30,712 | ) | $ | 60.16 | ||||||
Crude Oil | Jul -Dec 2016 | Basis Swaps | Midland-Cushing | (5,000 | ) | $ | (0.45 | ) | |||||
Crude Oil | Jul -Dec 2016 | Fixed Price Calls | WTI | (1,900 | ) | $ | 50.70 | ||||||
Crude Oil | 2017 | Fixed Price Swaps | WTI | (22,804 | ) | $ | 50.71 | ||||||
Crude Oil | 2017 | Swaptions | WTI | (3,264 | ) | $ | 51.22 | ||||||
Crude Oil | 2017 | Fixed Price Calls | WTI | (2,000 | ) | $ | 57.10 | ||||||
Crude Oil | 2018 | Fixed Price Swaps | WTI | (3,000 | ) | $ | 60.08 | ||||||
Crude Oil | 2018 | Fixed Price Calls | WTI | (5,000 | ) | $ | 58.89 | ||||||
Natural Gas | |||||||||||||
Natural Gas | Jul -Dec 2016 | Fixed Price Swaps | Henry Hub | (146 | ) | $ | 3.93 | ||||||
Natural Gas | Jul -Dec 2016 | Basis Swaps | Permian | (38 | ) | $ | (0.17 | ) | |||||
Natural Gas | Jul -Dec 2016 | Basis Swaps | San Juan | (100 | ) | $ | (0.18 | ) | |||||
Natural Gas | 2017 | Fixed Price Swaps | Henry Hub | (90 | ) | $ | 2.82 | ||||||
Natural Gas | 2017 | Basis Swaps | Permian | (10 | ) | $ | (0.15 | ) | |||||
Natural Gas | 2017 | Basis Swaps | San Juan | (33 | ) | $ | (0.16 | ) | |||||
Natural Gas | 2017 | Fixed Price Calls | Henry Hub | (16 | ) | $ | 4.50 | ||||||
Natural Gas | 2017 | Swaptions | Henry Hub | (65 | ) | $ | 4.19 | ||||||
Natural Gas | 2018 | Fixed Price Calls | Henry Hub | (16 | ) | $ | 4.75 | ||||||
Commodity | Period | Contract Type | Location(d) | Notional Volume (b) | Weighted Average Price (e) | ||||||||
Physical Derivatives | |||||||||||||
Natural Gas | Jul -Dec 2016 | Index | Multiple | (65 | ) | N/A | |||||||
Natural Gas | 2017 | Index | Multiple | (16 | ) | N/A |
(a) | Derivatives related to crude oil production are fixed price swaps, basis swaps, calls and swaptions. The derivatives related to natural gas production are fixed price swaps, basis swaps, calls and swaptions. 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) | Crude oil volumes are reported in Bbl/day and natural gas volumes are reported in BBtu/day. |
(c) | The weighted average price for crude oil price is reported in $/Bbl and natural gas is reported in $/MMBtu. |
(d) | We transact at multiple locations primarily around our core assets to maximize the economic value of our transportation and asset management agreements. |
(e) | Weighted average price is not reported since the notional volumes represent a net position comprised of buys and sells with positive and negative transaction prices. |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
(Millions) | |||||||||||||||
Total derivatives | $ | 122 | $ | 89 | $ | 359 | $ | 15 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Millions) | |||||||||||||||
Gain (loss) from derivatives related to production(a) | $ | (154 | ) | $ | (68 | ) | $ | (97 | ) | $ | 54 | ||||
Gain (loss) from derivatives related to physical marketing agreements(b) | — | (3 | ) | — | (20 | ) | |||||||||
Net gain (loss) on derivatives not designated as hedges | $ | (154 | ) | $ | (71 | ) | $ | (97 | ) | $ | 34 |
(a) | Includes settlements totaling $69 million and $137 million for the three months ended June 30, 2016 and 2015, respectively; and settlements totaling $201 million and $295 million for the six months ended June 30, 2016 and 2015, respectively. |
(b) | Includes settlements totaling less than $1 million and payments totaling $5 million for the three months ended June 30, 2016 and 2015, respectively; and settlements totaling $1 million and payments totaling $28 million for the six months ended June 30, 2016 and 2015, respectively. |
Gross Amount Presented on Balance Sheet | Netting Adjustments (a) | Cash Collateral Posted (Received) | Net Amount | ||||||||||||
June 30, 2016 | (Millions) | ||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 122 | $ | (61 | ) | $ | — | $ | 61 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (89 | ) | $ | 61 | $ | — | $ | (28 | ) | |||||
December 31, 2015 | |||||||||||||||
Derivative assets with right of offset or master netting agreements | $ | 359 | $ | (14 | ) | $ | — | $ | 345 | ||||||
Derivative liabilities with right of offset or master netting agreements | $ | (15 | ) | $ | 14 | $ | — | $ | (1 | ) |
(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) | $ | 122 | $ | 61 | |||
Credit exposure from derivatives | $ | 122 | $ | 61 |
(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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