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DERIVATIVES | 3 Months Ended
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Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | DERIVATIVES We use a variety of derivative instruments in implementing our hedging program to protect our cash flow, operating margin and capital program from the cyclical nature of commodity prices and interest-rate movements. These derivatives are intended to help us maintain adequate liquidity and improve our ability to comply with the covenants of our Credit Facilities in case of price deterioration. We did not have any derivative instruments designated as accounting hedges as of and during the three months ended March 31, 2020 and 2019. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not accounted for as accounting hedges. Commodity-price risk — In March 2020, we monetized all of our crude oil hedges in place for April 2020 forward with our counterparties, except for certain hedges held by our BSP JV, for approximately $63 million. We recognized the proceeds received in net derivative gain (loss) from commodity contracts on our condensed consolidated statements of operations in the first quarter of 2020. As a result, we did not have any commodity hedges that we would benefit from after the end of the first quarter. The BSP JV holds crude oil derivatives and natural gas swaps for insignificant volumes through 2021 that are included in our consolidated results. The hedges entered into by the BSP JV could affect the timing of the redemption of BSP's preferred interest. The following table presents the fair values (at gross and net) of our outstanding commodity derivatives as of March 31, 2020 and December 31, 2019:
March 31, 2020
Balance Sheet Classification |  | Gross Amounts Recognized at Fair Value |  | Gross Amounts Offset in the Balance Sheet |  | Net Fair Value Presented in the Balance Sheet
Assets: |  | (in millions)
Other current assets, net |  | $ | 15 |  |  | $ | — |  |  | $ | 15 |
Other assets |  | 2 |  |  | — |  |  | 2 |
Liabilities: |  |  |  |  |  |
Accrued liabilities |  | — |  |  | — |  |  | — |
Total derivatives |  | $ | 17 |  |  | $ | — |  |  | $ | 17 |
December 31, 2019
Balance Sheet Classification |  | Gross Amounts Recognized at Fair Value |  | Gross Amounts Offset in the Balance Sheet |  | Net Fair Value Presented in the Balance Sheet
Assets: |  | (in millions)
Other current assets, net |  | $ | 49 |  |  | $ | (10 | ) |  | $ | 39 |
Other assets |  | 1 |  |  | — |  |  | 1 |
Liabilities: |  |  |  |  |  |
Accrued liabilities |  | (15 | ) |  | 10 |  |  | (5 | )
Total derivatives |  | $ | 35 |  |  | $ | — |  |  | $ | 35 |
Interest-rate risk — We hold derivative contracts that limit our interest-rate exposure with respect to $1.3 billion of our variable-rate indebtedness. These interest-rate contracts reset monthly and require the counterparties to pay any excess interest owed on such amount in the event the one-month LIBOR exceeds 2.75% for any monthly period prior to May 2021. For the quarter ended March 31, 2020 and 2019, we reported no change in fair value and a $3 million non-cash loss, respectively, on these contracts in other nonoperating expenses on our consolidated statements of operations. Fair value of derivatives — Our derivative contracts are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are classified as Level 2 in the required fair value hierarchy for the periods presented. We recognize fair value changes on derivative instruments in each reporting period. The changes in fair value result from the relationship between our existing positions, volatility, time to expiration, contract prices or interest rates and the associated forward curves.

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- References No definition available. + Details
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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 + Details
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