XML 21 R12.htm IDEA: XBRL DOCUMENT
v3.22.2

Derivative Instruments | 6 Months Ended
--- | ---
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments 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. 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 |
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 |
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 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 https://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 https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration