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Derivative and Hedging Activities (Tables) | 6 Months Ended
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Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of estimated fair values of oil, natural gas and NGL derivative instruments | The estimated fair values of our oil, natural gas and NGL derivative instrument assets (liabilities) as of June 30, 2019 and December 31, 2018 are provided below:
|  | June 30, 2019 |  | December 31, 2018
|  | Notional Volume |  | Fair Value |  | Notional Volume |  | Fair Value
|  |  |  | ($ in millions) |  |  |  | ($ in millions)
Oil (mmbbl): |  |  |  |  |  |  |  |
Fixed-price swaps |  | 24 |  |  | $ | 64 |  |  | 12 |  |  | $ | 157 |
Collars |  | 5 |  |  | 27 |  |  | 8 |  |  | 98 |
Call swaptions |  | 2 |  |  | (5 | ) |  | — |  |  | — |
Put options |  | 2 |  |  | (5 | ) |  | — |  |  | — |
Basis protection swaps |  | 4 |  |  | 6 |  |  | 7 |  |  | 5 |
Total oil |  | 37 |  |  | 87 |  |  | 27 |  |  | 260 |
Natural gas (bcf): |  |  |  |  |  |  |  |
Fixed-price swaps |  | 505 |  |  | 176 |  |  | 623 |  |  | 26 |
Three-way collars |  | 15 |  |  | 2 |  |  | 88 |  |  | 1 |
Collars |  | 18 |  |  | 7 |  |  | 55 |  |  | (3 | )
Call options |  | 33 |  |  | — |  |  | 44 |  |  | — |
Call swaptions |  | 106 |  |  | (10 | ) |  | 106 |  |  | (9 | )
Basis protection swaps |  | 20 |  |  | — |  |  | 50 |  |  | — |
Total natural gas |  | 697 |  |  | 175 |  |  | 966 |  |  | 15 |
Contingent consideration: |  |  |  |  |  |  |  |
Utica divestiture |  |  |  | — |  |  |  |  | 7 |
Total estimated fair value |  |  |  | $ | 262 |  |  |  |  | $ | 282 |
Schedule of effect of derivative instruments, condensed consolidated balance sheets | The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 on a gross basis and after same-counterparty netting:
Balance Sheet Classification |  | Gross Fair Value |  | Amounts Netted in the Consolidated Balance Sheets |  | Net Fair Value Presented in the Consolidated Balance Sheet
|  | ($ in millions)
As of June 30, 2019 |  |  |  |  |  |
Commodity Contracts: |  |  |  |  |  |
Short-term derivative asset |  | $ | 250 |  |  | $ | (26 | ) |  | $ | 224 |
Long-term derivative asset |  | 64 |  |  | (1 | ) |  | 63 |
Short-term derivative liability |  | (48 | ) |  | 26 |  |  | (22 | )
Long-term derivative liability |  | (4 | ) |  | 1 |  |  | (3 | )
Contingent Consideration: |  |  |  |  |  |
Short-term derivative asset |  | — |  |  | — |  |  | — |
Total derivatives |  | $ | 262 |  |  | $ | — |  |  | $ | 262 |
As of December 31, 2018 |  |  |  |  |  |
Commodity Contracts: |  |  |  |  |  |
Short-term derivative asset |  | $ | 306 |  |  | $ | (104 | ) |  | $ | 202 |
Long-term derivative asset |  | 117 |  |  | (41 | ) |  | 76 |
Short-term derivative liability |  | (107 | ) |  | 104 |  |  | (3 | )
Long-term derivative liability |  | (41 | ) |  | 41 |  |  | — |
Contingent Consideration: |  |  |  |  |  |
Short-term derivative asset |  | 7 |  |  | — |  |  | 7 |
Total derivatives |  | $ | 282 |  |  | $ | — |  |  | $ | 282 |
Schedule of effect of derivative instruments, condensed consolidated statements of operations | The components of oil, natural gas and NGL revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
|  | ($ in millions)
Oil, natural gas and NGL revenues |  | $ | 1,179 |  |  | $ | 1,233 |  |  | $ | 2,409 |  |  | $ | 2,593 |
Gains (losses) on undesignated oil, natural gas and NGL derivatives |  | 283 |  |  | (244 | ) |  | (8 | ) |  | (351 | )
Losses on terminated cash flow hedges |  | (8 | ) |  | (7 | ) |  | (18 | ) |  | (17 | )
Total oil, natural gas and NGL revenues |  | $ | 1,454 |  |  | $ | 982 |  |  | $ | 2,383 |  |  | $ | 2,225 |
The components of marketing revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
|  | ($ in millions)
Marketing revenues |  | $ | 917 |  |  | $ | 1,273 |  |  | $ | 2,152 |  |  | $ | 2,519 |
Losses on undesignated marketing natural gas derivatives |  | (1 | ) |  | — |  |  | (3 | ) |  | — |
Total marketing revenues |  | $ | 916 |  |  | $ | 1,273 |  |  | $ | 2,149 |  |  | $ | 2,519 |
Schedule of effect of derivative instruments, accumulated other comprehensive income (loss) | A reconciliation of the changes in accumulated other comprehensive income (loss) in our condensed consolidated statements of stockholders’ equity related to our cash flow hedges is presented below:
|  | Three Months Ended June 30,
|  | 2019 |  | 2018
|  | Before Tax |  | After Tax |  | Before Tax |  | After Tax
|  | ($ in millions)
Balance, beginning of period |  | $ | (70 | ) |  | $ | (13 | ) |  | $ | (104 | ) |  | (47 | )
Losses reclassified to income |  | 8 |  |  | 8 |  |  | 7 |  |  | 7 |
Balance, end of period |  | $ | (62 | ) |  | $ | (5 | ) |  | $ | (97 | ) |  | $ | (40 | )
|  | Six Months Ended June 30,
|  | 2019 |  | 2018
|  | Before Tax |  | After Tax |  | Before Tax |  | After Tax
|  | ($ in millions)
Balance, beginning of period |  | $ | (80 | ) |  | $ | (23 | ) |  | $ | (114 | ) |  | (57 | )
Losses reclassified to income |  | 18 |  |  | 18 |  |  | 17 |  |  | 17 |
Balance, end of period |  | $ | (62 | ) |  | $ | (5 | ) |  | $ | (97 | ) |  | $ | (40 | )
Schedule of financial assets (liabilities) | The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018:
|  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total Fair Value
|  |  |  | ($ in millions) |  |
As of June 30, 2019 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 280 |  |  | $ | 34 |  |  | $ | 314 |
Commodity liabilities |  | — |  |  | (40 | ) |  | (12 | ) |  | (52 | )
Utica divestiture contingent consideration |  | — |  |  | — |  |  | — |  |  | — |
Total derivatives |  | $ | — |  |  | $ | 240 |  |  | $ | 22 |  |  | $ | 262 |
As of December 31, 2018 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 319 |  |  | $ | 103 |  |  | $ | 422 |
Commodity liabilities |  | — |  |  | (131 | ) |  | (16 | ) |  | (147 | )
Utica divestiture contingent consideration |  | — |  |  | — |  |  | 7 |  |  | 7 |
Total derivatives |  | $ | — |  |  | $ | 188 |  |  | $ | 94 |  |  | $ | 282 |
A summary of the changes in the fair values of our financial assets (liabilities) classified as Level 3 during the Current Period and the Prior Period is presented below:
|  | Commodity Derivatives |  | Utica Contingent Consideration
|  | ($ in millions)
Balance, as of January 1, 2019 |  | $ | 87 |  |  | $ | 7 |
Total gains (losses) (realized/unrealized): |  |  |  |
Included in earnings(a) |  | (64 | ) |  | (7 | )
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | (1 | ) |  | — |
Balance, as of June 30, 2019 |  | $ | 22 |  |  | $ | — |
Balance, as of January 1, 2018 |  | $ | (15 | ) |  | $ | — |
Total gains (losses) (realized/unrealized): |  |  |  |
Included in earnings(a) |  | (32 | ) |  | — |
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | 2 |  |  | — |
Balance, as of June 30, 2018 |  | $ | (45 | ) |  | $ | — |
___________________________________________
(a) |  |  | Commodity Derivatives |  | Utica Contingent Consideration
|  |  | 2019 |  | 2018 |  | 2019 |  | 2018
|  |  | ($ in millions)
| Total gains (losses) included in earnings for the period |  | $ | (64 | ) |  | $ | (32 | ) |  | $ | (7 | ) |  | $ | — |
| Change in unrealized gains (losses) related to assets still held at reporting date |  | $ | (66 | ) |  | $ | (30 | ) |  | $ | (7 | ) |  | $ | — |
The following table provides fair value measurement information for the above-noted financial assets (liabilities) measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018:
|  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total Fair Value
|  | ($ in millions)
As of June 30, 2019 |  |  |  |  |  |  |  |
Financial Assets (Liabilities): |  |  |  |  |  |  |  |
Other current assets |  | $ | 44 |  |  | $ | — |  |  | $ | — |  |  | $ | 44 |
Other current liabilities |  | (45 | ) |  | — |  |  | — |  |  | (45 | )
Total |  | $ | (1 | ) |  | $ | — |  |  | $ | — |  |  | $ | (1 | )
As of December 31, 2018 |  |  |  |  |  |  |  |
Financial Assets (Liabilities): |  |  |  |  |  |  |  |
Other current assets |  | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |
Other current liabilities |  | (51 | ) |  | — |  |  | — |  |  | (51 | )
Total |  | $ | (1 | ) |  | $ | — |  |  | $ | — |  |  | $ | (1 | )
Schedule of quantitative information about level 3 inputs used | The following table presents quantitative information about Level 3 inputs used in the fair value measurement of our commodity derivative contracts at fair value as of June 30, 2019:
Instrument Type |  | Unobservable Input |  | Range |  | Weighted Average |  | Fair Value June 30, 2019
|  |  |  |  |  |  |  | ($ in millions)
Oil trades |  | Oil price volatility curves |  | 21.62% – 38.20% |  | 27.79% |  | $ | 23 |
Natural gas trades |  | Natural gas price volatility curves |  | 19.94% – 145.47% |  | 33.18% |  | $ | (1 | )

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