Devon enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production to hedge future prices received. Additionally, Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL marketing activities. These commodity derivative financial instruments include financial price swaps, basis swaps and costless price collars. Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility. As of June 30, 2019, Devon did not have any open interest rate swap contracts.

Devon does not intend to hold or issue derivative financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment.

By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels.

As of June 30, 2019, Devon had the following open oil derivative positions. The first two tables present Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The third table presents Devon’s oil derivatives that settle against the respective indices noted within the table.

	Price Swaps				Price Collars
Period	Volume (Bbls/d)		Weighted Average Price ($/Bbl)		Volume (Bbls/d)		Weighted Average Floor Price ($/Bbl)		Weighted Average Ceiling Price ($/Bbl)
Q3-Q4 2019		41,100	$	60.76		79,750	$	54.89	$	64.92
Q1-Q4 2020		3,238	$	60.13		22,432	$	52.92	$	63.03

Three-Way Price Collars

Period

Volume

(Bbls/d)

Weighted

Average Floor Sold

Price ($/Bbl)

Weighted

Average Floor Purchased

Price ($/Bbl)

Weighted

Average

Ceiling Price

($/Bbl)

Q3-Q4 2019

5,000

50.00

63.00

74.80

	Oil Basis Swaps
Period	Index	Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q3-Q4 2019	Midland Sweet		28,000	$	(0.46	)
Q3-Q4 2019	Argus LLS		7,500	$	5.18
Q3-Q4 2019	Argus MEH		26,000	$	3.33
Q3-Q4 2019	NYMEX Roll		38,000	$	0.45
Q1-Q4 2020	Argus MEH		9,000	$	3.44
Q1-Q4 2020	NYMEX Roll		42,000	$	0.32

As of June 30, 2019, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table.

	Price Swaps				Price Collars
Period	Volume (MMBtu/d)		Weighted Average Price ($/MMBtu)		Volume (MMBtu/d)		Weighted Average Floor Price ($/MMBtu)		Weighted Average Ceiling Price ($/MMBtu)
Q3-Q4 2019		257,800	$	2.80		200,500	$	2.63	$	3.02
Q1-Q4 2020		81,409	$	2.77		42,557	$	2.73	$	3.03

	Natural Gas Basis Swaps
Period	Index	Volume (MMBtu/d)		Weighted Average Differential to Henry Hub ($/MMBtu)
Q3-Q4 2019	Panhandle Eastern Pipe Line		20,000	$	(0.56	)
Q3-Q4 2019	El Paso Natural Gas		130,000	$	(1.46	)
Q3-Q4 2019	Houston Ship Channel		162,500	$	0.01
Q1-Q4 2020	Panhandle Eastern Pipe Line		30,000	$	(0.47	)
Q1-Q4 2020	El Paso Natural Gas		40,000	$	(0.67	)
Q1-Q4 2020	Houston Ship Channel		10,000	$	0.02

As of June 30, 2019, Devon had the following open NGL derivative positions. Devon’s NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

		Price Swaps
Period	Product	Volume (Bbls/d)		Weighted Average Price ($/Bbl)
Q3-Q4 2019	Ethane		1,000	$	11.55
Q3-Q4 2019	Natural Gasoline		4,500	$	55.93
Q3-Q4 2019	Normal Butane		4,000	$	33.69
Q3-Q4 2019	Propane		8,500	$	30.01
Q1-Q4 2020	Propane		2,500	$	27.29

The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption.

	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019			2018
Commodity derivatives:
Upstream revenues	$	140	$	(487	)	$	(465	)	$	(600	)
Marketing revenues		—		(1	)		1			(1	)
Interest rate derivatives:
Other expenses		—		19			—			65
Net gains (losses) recognized	$	140	$	(469	)	$	(464	)	$	(536	)

The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption.

	June 30, 2019		December 31, 2018
Commodity derivative assets:
Other current assets	$	117	$	634
Other long-term assets		10		40
Total derivative assets	$	127	$	674
Commodity derivative liabilities:
Other current liabilities	$	7	$	32
Other long-term liabilities		—		1
Total derivative liabilities	$	7	$	33