XML 36 R27.htm IDEA: XBRL DOCUMENT
v3.22.2

Derivative Instruments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of outstanding commodity derivatives | As of June 30, 2022, the Company had the following outstanding financial commodity derivatives:
|  | 2022 |  | 2023 |  |  |  |
Natural Gas |  | Third Quarter |  |  | Fourth Quarter |  | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  |  |  |
Waha swaps (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mmbtu) |  | 4,600,000 |  |  |  | 1,550,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Weighted average price |  | $ | 4.77 |  |  |  | $ | 4.77 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
Waha gas collars (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mmbtu) |  | 2,760,000 |  |  |  | 1,840,000 |  |  | 8,100,000 |  |  | 8,190,000 |  |  | 8,280,000 |  |  | 8,280,000 |  |  |  |  |
Weighted average floor |  | $ | 2.47 |  |  |  | $ | 2.50 |  |  | $ | 3.03 |  |  | $ | 3.03 |  |  | $ | 3.03 |  |  | $ | 3.03 |  |  |  |  |
Weighted average ceiling |  | $ | 3.00 |  |  |  | $ | 3.12 |  |  | $ | 5.39 |  |  | $ | 5.39 |  |  | $ | 5.39 |  |  | $ | 5.39 |  |  |  |  |
NYMEX collars |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mmbtu) |  | 60,720,000 |  |  |  | 57,670,000 |  |  | 31,500,000 |  |  | 4,550,000 |  |  | 4,600,000 |  |  | 1,550,000 |  |  |  |  |
Weighted average floor |  | $ | 4.07 |  |  |  | $ | 4.15 |  |  | $ | 4.46 |  |  | $ | 4.50 |  |  | $ | 4.50 |  |  | $ | 4.50 |  |  |  |  |
Weighted average ceiling |  | $ | 5.64 |  |  |  | $ | 6.58 |  |  | $ | 8.37 |  |  | $ | 8.39 |  |  | $ | 8.39 |  |  | $ | 8.39 |  |  |  |  |
El Paso Permian gas collars (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mmbtu) |  | 1,840,000 |  |  |  | 1,840,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Weighted average floor |  | $ | 2.50 |  |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
Weighted average ceiling |  | $ | 3.15 |  |  |  | $ | 3.15 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
PEPL gas collars (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mmbtu) |  | 1,840,000 |  |  |  | 1,840,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Weighted average floor |  | $ | 2.60 |  |  |  | $ | 2.60 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
Weighted average ceiling |  | $ | 3.27 |  |  |  | $ | 3.27 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
Leidy basis swaps (4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mmbtu) |  | 4,600,000 |  |  |  | 1,550,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Weighted average price |  | $ | (1.50) |  |  |  | $ | (1.50) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
________________________________________________________ (1)The index price is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC. (2)The index price is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (3)The index price is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (4)The index price is Transco, Leidy Line receipts (“Leidy”) as quoted in Platt’s Inside FERC.
|  | 2022 |  | 2023 |  |  |  |
Oil |  | Third Quarter |  | Fourth Quarter |  | First Quarter |  | Second Quarter |  |  |  |  |  |  |  |
WTI oil collars |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mbbl) |  | 2,116 |  |  | 2,116 |  |  | 1,350 |  |  | 1,365 |  |  |  |  |  |  |  |  |
Weighted average floor |  | $ | 56.78 |  |  | $ | 67.65 |  |  | $ | 70.00 |  |  | $ | 70.00 |  |  |  |  |  |  |  |  |
Weighted average ceiling |  | $ | 72.81 |  |  | $ | 112.50 |  |  | $ | 116.03 |  |  | $ | 116.03 |  |  |  |  |  |  |  |  |
WTI Midland oil basis swaps (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mbbl) |  | 1,840 |  |  | 2,116 |  |  | 1,350 |  |  | 1,365 |  |  |  |  |  |  |  |  |
Weighted average differential |  | $ | 0.34 |  |  | $ | 0.46 |  |  | $ | 0.63 |  |  | $ | 0.63 |  |  |  |  |  |  |  |  |
WTI oil roll differential swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (Mbbl) |  | 644 |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Weighted average price |  | $ | 0.10 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |
________________________________________________________ (1)The index price is WTI Midland as quoted by Argus Americas Crude.
Schedule of effect of derivative instruments on the condensed consolidated balance sheet | Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet
|  |  |  | Fair Values of Derivative Instruments
|  |  |  | Derivative Assets |  | Derivative Liabilities
(In millions) |  | Balance Sheet Location |  | June 30, 2022 |  | December 31, 2021 |  | June 30, 2022 |  | December 31, 2021
Commodity contracts |  | Other current assets (current) |  | $ | 9 |  |  | $ | 7 |  |  | $ | — |  |  | $ | — |
Commodity contracts |  | Derivative instruments (current) |  | — |  |  | — |  |  | 170 |  |  | 159 |
Commodity contracts |  | Other assets (non-current) |  | 16 |  |  | — |  |  | — |  |  | — |
|  |  |  | $ | 25 |  |  | $ | 7 |  |  | $ | 170 |  |  | $ | 159 |
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet
(In millions) |  | June 30, 2022 |  | December 31, 2021
Derivative assets |  |  |  |
Gross amounts of recognized assets |  | $ | 56 |  |  | $ | 27 |
Gross amounts offset in the condensed consolidated balance sheet |  | (31) |  |  | (20) |
Net amounts of assets presented in the condensed consolidated balance sheet |  | 25 |  |  | 7 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | 25 |  |  | $ | 7 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 201 |  |  | $ | 179 |
Gross amounts offset in the condensed consolidated balance sheet |  | (31) |  |  | (20) |
Net amounts of liabilities presented in the condensed consolidated balance sheet |  | 170 |  |  | 159 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | 48 |  |  | 35 |
Net amount |  | $ | 218 |  |  | $ | 194 |
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet
(In millions) |  | June 30, 2022 |  | December 31, 2021
Derivative assets |  |  |  |
Gross amounts of recognized assets |  | $ | 56 |  |  | $ | 27 |
Gross amounts offset in the condensed consolidated balance sheet |  | (31) |  |  | (20) |
Net amounts of assets presented in the condensed consolidated balance sheet |  | 25 |  |  | 7 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | 25 |  |  | $ | 7 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 201 |  |  | $ | 179 |
Gross amounts offset in the condensed consolidated balance sheet |  | (31) |  |  | (20) |
Net amounts of liabilities presented in the condensed consolidated balance sheet |  | 170 |  |  | 159 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | 48 |  |  | 35 |
Net amount |  | $ | 218 |  |  | $ | 194 |
Schedule of effect of derivatives on the condensed consolidated statement of operations | Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Cash (paid) received on settlement of derivative instruments |  |  |  |  |  |  |  |
Gas contracts |  | $ | (161) |  |  | $ | — |  |  | $ | (203) |  |  | $ | 3 |
Oil contracts |  | (132) |  |  | — |  |  | (261) |  |  | — |
Non-cash gain (loss) on derivative instruments |  |  |  |  |  |  |  |
Gas Contracts |  | 133 |  |  | (88) |  |  | (49) |  |  | (104) |
Oil Contracts |  | 94 |  |  | — |  |  | 56 |  |  | — |
|  | $ | (66) |  |  | $ | (88) |  |  | $ | (457) |  |  | $ | (101) |

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 derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify as hedging instruments) of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the 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 4A -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativesInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration