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Derivative Instruments | 12 Months Ended
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Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments As of December 31, 2021, the Company had the following outstanding financial commodity derivatives:
|  |  |  |  |  | Collars |  | Swaps
|  |  |  |  |  | Floor |  | Ceiling |  | Basis Swaps |  | Roll Swaps
Type of Contract |  | Volume (Mbbl) |  | Contract Period |  | Range ($/Bbl) |  | Weighted- Average ($/Bbl) |  | Range ($/Bbl) |  | Weighted- Average ($/Bbl) |  | Weighted- Average ($/Bbl) |  | Weighted- Average ($/Bbl)
Crude oil (WTI) |  | 630 |  | Jan. 2022-Mar. 2022 |  | $— |  | $ | 35.00 |  |  | $45.15-$45.40 |  | $ | 45.28 |  |  |  |  |
Crude oil (WTI) |  | 1,629 |  | Jan. 2022-Jun. 2022 |  | $35.00-$37.50 |  | $ | 36.11 |  |  | $48.38-$51.10 |  | $ | 49.97 |  |  |  |  |
Crude oil (WTI) |  | 2,730 |  | Jan. 2022-Sep. 2022 |  | $— |  | $ | 40.00 |  |  | $47.55-$50.89 |  | $ | 49.19 |  |  |  |  |
Crude oil (WTI) |  | 2,920 |  | Jan. 2022-Dec. 2022 |  | $— |  | $ | 57.00 |  |  | $72.20-$72.80 |  | $ | 72.43 |  |  |  |  |
Crude oil (WTI Midland)(1) |  | 630 |  | Jan. 2022-Mar. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.11 |  |  |
Crude oil (WTI Midland)(1) |  | 1,448 |  | Jan. 2022-Jun. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.25 |  |  |
Crude oil (WTI Midland)(1) |  | 1,911 |  | Jan. 2022-Sep. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.38 |  |  |
Crude oil (WTI Midland)(1) |  | 2,920 |  | Jan. 2022-Dec. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.05 |  |  |
Crude oil (WTI) |  | 630 |  | Jan. 2022-Mar. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | (0.24) |
Crude oil (WTI) |  | 724 |  | Jan. 2022-Jun. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | (0.20) |
Crude oil (WTI) |  | 1,911 |  | Jan. 2022-Sep. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | 0.10 |
________________________________________________________ (1)The index price the Company pays under these basis swaps is WTI Midland, as quoted by Argus Americas Crude.
|  |  |  |  |  | Collars |  |  |  |
|  |  |  |  |  | Floor |  | Ceiling |  |  |  |
Type of Contract |  | Volume (Mmbtu) |  | Contract Period |  | Range ($/Mmbtu) |  | Weighted-Average ($/Mmbtu) |  | Range ($/Mmbtu) |  | Weighted- Average ($/Mmbtu) |  |  |  |
Natural gas (NYMEX) |  | 36,000,000 |  |  | Jan. 2022-Mar. 2022 |  | $4.00 - $4.75 |  | $ | 4.38 |  |  | $5.00 - $10.32 |  | $ | 6.97 |  |  |  |  |
Natural gas (NYMEX) |  | 42,800,000 |  |  | Apr. 2022 - Oct. 2022 |  | $3.00 - $3.50 |  | $ | 3.19 |  |  | $4.07 - $4.83 |  | $ | 4.30 |  |  |  |  |
Natural gas (Perm EP)(1) |  | 1,800,000 |  |  | Jan. 2022-Mar. 2022 |  | $1.80 - $1.90 |  | $ | 1.85 |  |  | $2.18 - $2.19 |  | $ | 2.18 |  |  |  |  |
Natural gas (Perm EP)(1) |  | 3,620,000 |  |  | Jan. 2022-Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.85 - $2.90 |  | $ | 2.88 |  |  |  |  |
Natural gas (Perm EP)(1) |  | 7,300,000 |  |  | Jan. 2022-Dec. 2022 |  | $ | — |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | 3.15 |  |  |  |  |
Natural gas (PEPL)(2) |  | 3,600,000 |  |  | Jan. 2022-Mar. 2022 |  | $1.90 - $2.10 |  | $ | 2.00 |  |  | $2.35 - $2.44 |  | $ | 2.40 |  |  |  |  |
Natural gas (PEPL)(2) |  | 3,620,000 |  |  | Jan. 2022-Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.81 - $2.91 |  | $ | 2.86 |  |  |  |  |
Natural gas (PEPL)(2) |  | 7,300,000 |  |  | Jan. 2022-Dec. 2022 |  | $ | — |  |  | $ | 2.60 |  |  | $ | — |  |  | $ | 3.27 |  |  |  |  |
Natural gas (Waha)(3) |  | 3,600,000 |  |  | Jan. 2022-Mar. 2022 |  | $1.70 - $1.84 |  | $ | 1.77 |  |  | $2.10 - $2.20 |  | $ | 2.15 |  |  |  |  |
Natural gas (Waha)(3) |  | 3,620,000 |  |  | Jan. 2022-Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.82 - $2.89 |  | $ | 2.86 |  |  |  |  |
Natural gas (Waha)(3) |  | 2,730,000 |  |  | Jan. 2022-Sep. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $ | — |  |  | $ | 2.77 |  |  |  |  |
Natural gas (Waha)(3) |  | 7,300,000 |  |  | Jan. 2022-Dec. 2022 |  | $ | — |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | 3.12 |  |  |  |  |
________________________________________________________ (1)The index price for these collars is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”), as quoted in Platt’s Inside FERC. (2)The index price for these collars is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”), as quoted in Platt’s Inside FERC. (3)The index price for these collars is Waha West Texas Natural Gas Index (“Waha”), as quoted in Platt’s Inside FERC. In early 2022, the Company entered into the following outstanding financial commodity derivatives:
|  |  |  |  |  | Collars
|  |  |  |  |  | Floor |  | Ceiling
Type of Contract |  | Volume (Mmbtu) |  | Contract Period |  | Range ($/Mmbtu) |  | Weighted- Average ($/Mmbtu) |  | Range ($/Mmbtu) |  | Weighted- Average ($/Mmbtu)
Natural gas (NYMEX) |  | 71,500,000 |  | Apr. 2022-Dec. 2022 |  | $3.50 - $4.25 |  | $ | 3.84 |  |  | $4.75 - $6.65 |  | $ | 5.39 |
Natural gas (NYMEX) |  | 10,700,000 |  |  | Apr. 2022-Oct. 2022 |  | $ | — |  |  | $ | 4.00 |  |  | $5.60 - $5.69 |  | $ | 5.63 |
Natural gas (NYMEX) |  | 7,550,000 |  |  | Nov. 2022-Mar. 2023 |  | $ | — |  |  | $ | 4.00 |  |  | $7.06 - $7.10 |  | $ | 7.08 |
Effect of Derivative Instruments on the Consolidated Balance Sheet
|  |  |  | Fair Values of Derivative Instruments
|  |  |  | Derivative Assets |  | Derivative Liabilities
|  |  |  | December 31, |  | December 31,
(In millions) |  | Balance Sheet Location |  | 2021 |  | 2020 |  | 2021 |  | 2020
Commodity contracts |  | Derivative instruments (current) |  | $ | 7 |  |  | $ | 26 |  |  | $ | 159 |  |  | $ | — |
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
|  | December 31,
(In millions) |  | 2021 |  | 2020
Derivative assets |  |  |  |
Gross amounts of recognized assets |  | $ | 27 |  |  | $ | 26 |
Gross amounts offset in the consolidated balance sheet |  | (20) |  |  | — |
Net amounts of assets presented in the consolidated balance sheet |  | 7 |  |  | 26 |
Gross amounts of financial instruments not offset in the consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | 7 |  |  | $ | 26 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 179 |  |  | $ | — |
Gross amounts offset in the consolidated balance sheet |  | (20) |  |  | — |
Net amounts of liabilities presented in the consolidated balance sheet |  | 159 |  |  | — |
Gross amounts of financial instruments not offset in the consolidated balance sheet |  | 35 |  |  | — |
Net amount |  | $ | 194 |  |  | $ | — |
Effect of Derivative Instruments on the Consolidated Statement of Operations
|  | Year Ended December 31,
(In millions) |  | 2021 |  | 2020 |  | 2019
Cash (paid) received on settlement of derivative instruments |  |  |  |  |  |
Gas contracts |  | $ | (307) |  |  | $ | 35 |  |  | $ | 139 |
Oil contracts |  | (124) |  |  | — |  |  | — |
Non-cash (loss) gain on derivative instruments |  |  |  |  |  |
Gas contracts |  | 99 |  |  | 26 |  |  | (58) |
Oil contracts |  | 111 |  |  | — |  |  | — |
|  | $ | (221) |  |  | $ | 61 |  |  | $ | 81 |
Additional Disclosures about Derivative Instruments The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company's counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. Certain counterparties to the Company's derivative instruments are also lenders under its revolving credit facility. The Company's revolving credit facility and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of the Company’s liabilities thereunder if the Company defaults on other material indebtedness. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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