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Risk Management (Tables) | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2024, 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 | (16.3) |  |  | MMBbl
Natural gas fixed price | (70.2) |  |  | Bcf
Natural gas basis | (44.3) |  |  | Bcf
Derivatives not designated as hedging contracts |  |  |
Crude oil fixed price | (1.1) |  |  | MMBbl
Crude oil basis | (3.4) |  |  | MMBbl
Natural gas fixed price | (7.2) |  |  | Bcf
Natural gas basis | (58.8) |  |  | Bcf
NGL fixed price | (1.4) |  |  | MMBbl
Schedule of Interest Rate Derivatives | The following table summarizes our outstanding interest rate contracts as of June 30, 2024:
|  | Notional amount |  | Accounting treatment |  | Maximum term |
|  | (In millions) |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Fixed-to-variable interest rate contracts(a) |  | $ | 5,350 |  |  | Fair value hedge |  | March 2035 |
(a)The principal amount of hedged senior notes consisted of $2,100 million included in “Current portion of debt” and $3,250 million included in “Long-term debt” on our accompanying consolidated balance sheets.
Schedule of Foreign Exchange Contracts, Statement of Financial Position | The following table summarizes our outstanding foreign currency contracts as of June 30, 2024:
|  | Notional amount |  | Accounting treatment |  | Maximum term |
|  | (In millions) |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |
EUR-to-USD cross currency swap contracts(a) |  | $ | 543 |  |  | Cash flow hedge |  | March 2027 |
(a)These swaps eliminate the foreign currency risk associated with 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 on our accompanying consolidated balance sheets:
Fair Value of Derivative Contracts
| Location |  | Derivatives Asset |  | Derivatives Liability
|  |  | June 30, 2024 |  | December 31, 2023 |  | June 30, 2024 |  | December 31, 2023
|  |  | (In millions)
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |
Energy commodity derivative contracts |  |  |  |  |  |  |  |
| Fair value of derivative contracts/(Fair value of derivative contracts) |  | $ | 30 |  |  | $ | 77 |  |  | $ | (93) |  |  | $ | (75) |
| Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 1 |  |  | 12 |  |  | (43) |  |  | (29) |
| Subtotal |  | 31 |  |  | 89 |  |  | (136) |  |  | (104) |
Interest rate contracts |  |  |  |  |  |  |  |
| Fair value of derivative contracts/(Fair value of derivative contracts) |  | — |  |  | — |  |  | (101) |  |  | (120) |
| Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 24 |  |  | 37 |  |  | (208) |  |  | (158) |
| Subtotal |  | 24 |  |  | 37 |  |  | (309) |  |  | (278) |
Foreign currency contracts |  |  |  |  |  |  |  |
| Fair value of derivative contracts/(Fair value of derivative contracts) |  | — |  |  | — |  |  | (9) |  |  | (2) |
| Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | — |  |  | — |  |  | (8) |  |  | (2) |
| Subtotal |  | — |  |  | — |  |  | (17) |  |  | (4) |
| Total |  | 55 |  |  | 126 |  |  | (462) |  |  | (386) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |
Energy commodity derivative contracts |  |  |  |  |  |  |  |
| Fair value of derivative contracts/(Fair value of derivative contracts) |  | 16 |  |  | 49 |  |  | (25) |  |  | (8) |
| Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 1 |  |  | 3 |  |  | (1) |  |  | (1) |
| Total |  | 17 |  |  | 52 |  |  | (26) |  |  | (9) |
| Total derivatives |  | $ | 72 |  |  | $ | 178 |  |  | $ | (488) |  |  | $ | (395) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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 |  | Contracts available for netting |  | Cash collateral held(a) |  |
| Level 1 |  | Level 2 |  | Level 3 |  | Gross amount |  |  |  | Net amount
| (In millions)
As of June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(b) | $ | 27 |  |  | $ | 21 |  |  | $ | — |  |  | $ | 48 |  |  | $ | (25) |  |  | $ | — |  |  | $ | 23 |
Interest rate contracts | — |  |  | 24 |  |  | — |  |  | 24 |  |  | — |  |  | — |  |  | 24 |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(b) | $ | 65 |  |  | $ | 75 |  |  | $ | — |  |  | $ | 140 |  |  | $ | (16) |  |  | $ | — |  |  | $ | 124 |
Interest rate contracts | — |  |  | 38 |  |  | — |  |  | 38 |  |  | — |  |  | — |  |  | 38 |
| Balance sheet liability fair value measurements by level |  | Contracts available for netting |  | Cash collateral posted(a) |  |
| Level 1 |  | Level 2 |  | Level 3 |  | Gross amount |  |  |  | Net amount
| (In millions)
As of June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(b) | $ | (12) |  |  | $ | (150) |  |  | $ | — |  |  | $ | (162) |  |  | $ | 25 |  |  | $ | (15) |  |  | $ | (152) |
Interest rate contracts | — |  |  | (309) |  |  | — |  |  | (309) |  |  | — |  |  | — |  |  | (309) |
Foreign currency contracts | — |  |  | (17) |  |  | — |  |  | (17) |  |  | — |  |  | — |  |  | (17) |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(b) | $ | (17) |  |  | $ | (96) |  |  | $ | — |  |  | $ | (113) |  |  | $ | 16 |  |  | $ | (85) |  |  | $ | (182) |
Interest rate contracts | — |  |  | (278) |  |  | — |  |  | (278) |  |  | — |  |  | — |  |  | (278) |
Foreign currency contracts | — |  |  | (4) |  |  | — |  |  | (4) |  |  | — |  |  | — |  |  | (4) |
(a)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. (b)Level 1 consists primarily of NYMEX natural gas futures. Level 2 consists primarily of OTC WTI swaps, NGL swaps and crude oil basis swaps.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the pre-tax impact of our derivative contracts on our accompanying consolidated statements of income and comprehensive income:
Derivatives in fair value hedging relationships |  | Location |  | Gain/(loss) recognized in income on derivative and related hedged item
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
|  |  |  | (In millions)
Interest rate contracts |  | Interest, net |  | $ | 1 |  |  | $ | (99) |  |  | $ | (55) |  |  | $ | 19 |
Hedged fixed rate debt(a) |  | Interest, net |  | $ | — |  |  | $ | 101 |  |  | $ | 57 |  |  | $ | (18) |
(a)As of June 30, 2024, the cumulative amount of fair value hedging adjustments resulted in a decrease of $292 million in the carrying value of our hedged fixed rate debt balance and is included in “Debt fair value adjustments” on our accompanying consolidated balance sheet.
Derivatives in cash flow hedging relationships |  | Gain/(loss) recognized in OCI on derivative(a) |  | Location |  | Gain/(loss) reclassified from Accumulated OCI into income
|  | Three Months Ended June 30, |  |  |  | Three Months Ended June 30,
|  | 2024 |  | 2023 |  |  |  | 2024 |  | 2023
|  | (In millions) |  |  |  | (In millions)
Energy commodity derivative contracts |  | $ | (12) |  |  | $ | 50 |  |  | Revenues—Commodity sales |  | $ | (27) |  |  | $ | 18 |
|  |  |  |  |  | Costs of sales |  | (2) |  |  | (20) |
Foreign currency contracts |  | (3) |  |  | 13 |  |  | Other, net |  | (4) |  |  | 4 |
Total |  | $ | (15) |  |  | $ | 63 |  |  | Total |  | $ | (33) |  |  | $ | 2 |
Derivatives in cash flow hedging relationships |  | Gain/(loss) recognized in OCI on derivative(a) |  | Location |  | Gain/(loss) reclassified from Accumulated OCI into income
|  | Six Months Ended June 30, |  |  |  | Six Months Ended June 30,
|  | 2024 |  | 2023 |  |  |  | 2024 |  | 2023
|  | (In millions) |  |  |  | (In millions)
Energy commodity derivative contracts |  | $ | (105) |  |  | $ | 185 |  |  | Revenues—Commodity sales |  | $ | (7) |  |  | $ | 83 |
|  |  |  |  |  | Costs of sales |  | (9) |  |  | (27) |
Interest rate contracts |  | 13 |  |  | — |  |  | Interest, net |  | 4 |  |  | — |
Foreign currency contracts |  | (13) |  |  | 16 |  |  | Other, net |  | (17) |  |  | 10 |
Total |  | $ | (105) |  |  | $ | 201 |  |  | Total |  | $ | (29) |  |  | $ | 66 |
(a)We expect to reclassify approximately $78 million of loss associated with cash flow hedge price risk management activities included in our accumulated other comprehensive loss balance as of June 30, 2024 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.
Derivatives not designated as accounting hedges |  | Location |  | Gain/(loss) recognized in income on derivatives
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
|  |  |  | (In millions)
Energy commodity derivative contracts |  | Revenues—Commodity sales |  | $ | 2 |  |  | $ | 10 |  |  | $ | (9) |  |  | $ | 31 |
|  | Costs of sales |  | (18) |  |  | 51 |  |  | (32) |  |  | 120 |
|  | Earnings from equity investments |  | — |  |  | — |  |  | — |  |  | 1 |
Interest rate contracts |  | Interest, net |  | — |  |  | 7 |  |  | (2) |  |  | 12 |
Total(a) |  |  |  | $ | (16) |  |  | $ | 68 |  |  | $ | (43) |  |  | $ | 164 |
(a)The three and six months ended June 30, 2024 amounts include an approximate loss of $14 million and an approximate gain of $10 million, respectively, and the three and six months ended June 30, 2023 amounts include approximate gains of $7 million and $35 million, respectively, associated with natural gas, crude and NGL derivative contract settlements.

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