XML 56 R40.htm IDEA: XBRL DOCUMENT
v3.20.4

Risk Management (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments | As of December 31, 2020, we had the following outstanding commodity forward contracts to hedge our forecasted energy commodity purchases and sales:
| Net open position long/(short)
Derivatives designated as hedging contracts |  |
Crude oil fixed price | (20.4) |  | MMBbl
Crude oil basis | (2.2) |  | MMBbl
Natural gas fixed price | (30.1) |  | Bcf
Natural gas basis | (20.0) |  | Bcf
NGL fixed price | (1.1) |  | MMBbl
Derivatives not designated as hedging contracts |  |
Crude oil fixed price | (5.6) |  | MMBbl
Crude oil basis | (6.8) |  | MMBbl
Natural gas fixed price | (6.7) |  | Bcf
Natural gas basis | (5.5) |  | Bcf
NGL fixed price | (1.0) |  | MMBbl
Schedule of Interest Rate Derivatives [Table Text Block] | The following table summarizes our outstanding interest rate contracts as of December 31, 2020:
|  | Notional amount |  | Accounting treatment |  | Maximum term
|  | (In millions) |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Fixed-to-variable interest rate contracts(a) |  | $ | 7,625 |  |  | Fair value hedge |  | March 2035
Variable-to-fixed interest rate contracts |  | 250 |  |  | Cash flow hedge |  | January 2023
Derivatives not designated as hedging instruments |  |  |  |  |  |
Variable-to-fixed interest rate contracts |  | 2,500 |  |  | Mark-to-Market |  | December 2021
(a)The principal amount of hedged senior notes consisted of $900 million included in “Current portion of debt” and $6,725 million included in “Long-term debt” on our accompanying consolidated balance sheet.
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block] | The following table summarizes our outstanding foreign currency contracts as of December 31, 2020:
|  | Notional amount |  | Accounting treatment |  | Maximum term
|  | (In millions) |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |
EUR-to-USD cross currency swap contracts(a) |  | $ | 1,358 |  |  | Cash flow hedge |  | March 2027
(a) These s waps eliminate the foreign currency risk associated with all of our Euro-denominated debt.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair values of our derivative contracts included in our accompanying consolidated balance sheets:
Fair Value of Derivative Contracts
|  |  | Derivatives Asset |  | Derivatives Liability
|  |  | December 31, |  | December 31,
|  |  | 2020 |  | 2019 |  | 2020 |  | 2019
| Location |  | Fair value |  | Fair value
|  |  | (In millions)
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts | Fair value of derivative contracts/(Other current liabilities) |  | $ | 42 |  |  | $ | 31 |  |  | $ | (33) |  |  | $ | (43) |
| Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 33 |  |  | 17 |  |  | (8) |  |  | (8) |
Subtotal |  |  | 75 |  |  | 48 |  |  | (41) |  |  | (51) |
Interest rate contracts | Fair value of derivative contracts/(Other current liabilities) |  | 119 |  |  | 45 |  |  | (3) |  |  | — |
| Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 575 |  |  | 313 |  |  | (7) |  |  | (1) |
Subtotal |  |  | 694 |  |  | 358 |  |  | (10) |  |  | (1) |
Foreign currency contracts | Fair value of derivative contracts/(Other current liabilities) |  | — |  |  | — |  |  | (6) |  |  | (6) |
| Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 138 |  |  | 46 |  |  | — |  |  | — |
Subtotal |  |  | 138 |  |  | 46 |  |  | (6) |  |  | (6) |
Total |  |  | 907 |  |  | 452 |  |  | (57) |  |  | (58) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts | Fair value of derivative contracts/(Other current liabilities) |  | 24 |  |  | 8 |  |  | (21) |  |  | (7) |
Total derivatives |  |  | $ | 931 |  |  | $ | 460 |  |  | $ | (78) |  |  | $ | (65) |
Schedule of Derivative Assets and Liabilities at Fair Value [Table Text Block] | The following two tables summarize the fair value measurements of our derivative contracts based on the three levels established by the ASC. The tables also identify the impact of derivative contracts which we have elected to present on our accompanying consolidated balance sheets on a gross basis that are eligible for netting under master netting agreements.
| Balance sheet asset fair value measurements by level |  |  |  |
| Level 1 |  | Level 2 |  | Level 3 |  | Gross amount |  | Contracts available for netting |  | Cash collateral held(b) |  | Net amount
| (In millions)
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | $ | 6 |  |  | $ | 93 |  |  | $ | — |  |  | $ | 99 |  |  | $ | (35) |  |  | $ | — |  |  | $ | 64 |
Interest rate contracts | — |  |  | 694 |  |  | — |  |  | 694 |  |  | (2) |  |  | — |  |  | 692 |
Foreign currency contracts | — |  |  | 138 |  |  | — |  |  | 138 |  |  | (6) |  |  | — |  |  | 132 |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | $ | 19 |  |  | $ | 37 |  |  | $ | — |  |  | $ | 56 |  |  | $ | (19) |  |  | $ | (21) |  |  | $ | 16 |
Interest rate contracts | — |  |  | 358 |  |  | — |  |  | 358 |  |  | — |  |  | — |  |  | 358 |
Foreign currency contracts | — |  |  | 46 |  |  | — |  |  | 46 |  |  | (6) |  |  | — |  |  | 40 |
| Balance sheet liability fair value measurements by level |  |  |  |
| Level 1 |  | Level 2 |  | Level 3 |  | Gross amount |  | Contracts available for netting |  | Cash collateral posted(b) |  | Net amount
| (In millions)
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | $ | (7) |  |  | $ | (56) |  |  | $ | — |  |  | $ | (63) |  |  | $ | 35 |  |  | $ | (8) |  |  | $ | (36) |
Interest rate contracts | — |  |  | (10) |  |  | — |  |  | (10) |  |  | 2 |  |  | — |  |  | (8) |
Foreign currency contracts | — |  |  | (6) |  |  | — |  |  | (6) |  |  | 6 |  |  | — |  |  | — |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | (3) |  |  | (55) |  |  | — |  |  | (58) |  |  | 19 |  |  | — |  |  | (39) |
Interest rate contracts | — |  |  | (1) |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | (1) |
Foreign currency contracts | — |  |  | (6) |  |  | — |  |  | (6) |  |  | 6 |  |  | — |  |  | — |
(a)Level 1 consists primarily of NYMEX natural gas futures. Level 2 consists primarily of OTC WTI swaps, NGL swaps and crude oil basis swaps. (b)Any cash collateral paid or received is reflected in this table, but only to the extent that it represents variation margins. Any amount associated with derivative prepayments or initial margins that are not influenced by the derivative asset or liability amounts or those that are determined solely on their volumetric notional amounts are excluded from this table.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Income | The following tables summarize the pre-tax impact of our derivative contracts in our accompanying consolidated statements of income and comprehensive income:
Derivatives in fair value hedging relationships |  | Location |  | Gain/(loss) recognized in income on derivatives and related hedged item
|  |  |  | Year Ended December 31,
|  |  |  | 2020 |  | 2019 |  | 2018
|  |  |  | (In millions)
Interest rate contracts |  | Interest, net |  | $ | 335 |  |  | $ | 340 |  |  | $ | (122) |
Hedged fixed rate debt(a) |  | Interest, net |  | $ | (343) |  |  | $ | (353) |  |  | $ | 113 |
(a)As of December 31, 2020, the cumulative amount of fair value hedging adjustments to our hedged fixed rate debt was an increase of $702 million included in “Debt fair value adjustments” on our accompanying consolidated balance sheets.
Derivatives in cash flow hedging relationships |  | Gain/(loss) recognized in OCI on derivative(a) |  | Location |  | Gain/(loss) reclassified from Accumulated OCI into income(b)
|  | Year Ended |  |  |  | Year Ended
|  | December 31, |  |  |  | December 31,
|  | 2020 |  | 2019 |  | 2018 |  |  |  | 2020 |  | 2019 |  | 2018
|  | (In millions) |  |  |  | (In millions)
Energy commodity derivative contracts |  | $ | 240 |  |  | $ | (168) |  |  | $ | 201 |  |  | Revenues—Commodity sales |  | $ | 222 |  |  | $ | 16 |  |  | $ | (59) |
|  |  |  |  |  |  |  | Costs of sales |  | (14) |  |  | 5 |  |  | 21 |
Interest rate contracts(c) |  | (8) |  |  | (1) |  |  | 3 |  |  | Earnings from equity investments(c) |  | — |  |  | 2 |  |  | (4) |
Foreign currency contracts |  | 92 |  |  | (60) |  |  | (59) |  |  | Other, net |  | 125 |  |  | (31) |  |  | (67) |
Total |  | $ | 324 |  |  | $ | (229) |  |  | $ | 145 |  |  | Total |  | $ | 333 |  |  | $ | (8) |  |  | $ | (109) |
(a)We expect to reclassify an approximate $9 million gain associated with cash flow hedge price risk management activities included in our accumulated other comprehensive loss balance as of December 31, 2020 into earnings during the next twelve months (when the associated forecasted transactions are also expected to impact earnings); however, actual amounts reclassified into earnings could vary materially as a result of changes in market prices. (b)During the year ended December 31, 2019, we recognized a $12 million gain associated with a write-down of hedged inventory. During the year ended December 31, 2018, we recognized a $3 million loss as a result of our equity investment’s forecasted transactions being probable of not occurring and a $21 million gain associated with a write-down of hedged inventory. All other amounts reclassified were the result of the hedged forecasted transactions actually affecting earnings (i.e., when the forecasted sales and purchases actually occurred). (c)Amounts represent our share of an equity investee’s accumulated other comprehensive income (loss).
Derivatives in net investment hedging relationships |  | Gain/(loss) recognized in OCI on derivative | Location | Gain/(loss) reclassified from Accumulated OCI into income(a) |  |  |
|  | Year Ended |  | Year Ended |  |  |
|  | December 31, |  | December 31, |  |  |  |  |  |  |
|  | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018 |  |  |  |  |  |  |
|  | (In millions) |  | (In millions) |  |  |
Foreign currency contracts |  | $ | — |  |  | $ | (8) |  |  | $ | 91 |  | Loss (gain) on impairments and divestitures, net | $ | — |  |  | $ | 83 |  |  | $ | 26 |  |  |  |  |  |  |  |
Total |  | $ | — |  |  | $ | (8) |  |  | $ | 91 |  | Total | $ | — |  |  | $ | 83 |  |  | $ | 26 |  |  |  |  |  |  |  |
(a)During the year ended December 31, 2019, we recognized an $83 million gain related to the KML and U.S. Cochin Sale. During the year ended December 31, 2018, we recognized a $26 million gain related to the TMPL Sale. See Note 4.
Derivatives not designated as accounting hedges |  | Location |  | Gain/(Loss) recognized in income on derivatives
|  |  |  | Year Ended December 31,
|  |  |  | 2020 |  | 2019 |  | 2018
|  |  |  | (In millions)
Energy commodity derivative contracts |  | Revenues—Commodity sales |  | $ | (1) |  |  | $ | 33 |  |  | $ | (9) |
|  | Costs of sales |  | 25 |  |  | (7) |  |  | 2 |
|  | Earnings from equity investments(b) |  | — |  |  | 3 |  |  | — |
Total(a) |  |  |  | $ | 24 |  |  | $ | 29 |  |  | $ | (7) |
(a) The years ended December 31, 2020, 2019 and 2018 include approximate gains of $11 million and losses of $8 million and $4 million, respectively, associated with natural gas, crude and NGL derivative contract settlements. (b) Amounts represent our share of an equity investee’s income (loss).

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the presentation of foreign exchange contracts on the statement of financial position, including the fair value amounts and location of such amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of interest rate derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfInterestRateDerivativesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration