We are exposed to commodity price risk. To manage this volatility, we use various contracts in our marketing and trading activities that generally meet the definition of derivatives. Derivative positions are monitored using techniques including, but not limited to, value at risk. Derivative instruments are recognized at fair value in our Consolidated Balance Sheet as either assets or liabilities and are presented on a net basis by counterparty, net of margin deposits. See Note 7 – Fair Value Measurements and Guarantees for additional fair value information. In our Consolidated Statement of Cash Flows, any cash impacts of settled commodity derivatives are recorded as operating activities.

We enter into commodity derivatives to economically hedge exposures to natural gas, NGLs, and crude oil and retain exposure to price changes that can, in a volatile energy market, be material and can adversely affect our results of operations.

Commodity

Unit of Measure

Net Long (Short) Position

Index Risk

Natural Gas

MMBtu

889,421,561

Central Hub Risk - Henry Hub

Natural Gas

MMBtu

(58,822,236)

Basis Risk

Natural Gas

MMBtu

9,758,296

Central Hub Risk - Mont Belvieu

Natural Gas Liquids

Barrels

(2,085,286)

Central Hub Risk - WTI

Crude Oil

Barrels

(225,000)


	March 31, 2024				December 31, 2023
Commodity Derivatives Categories	Assets		(Liabilities)		Assets		(Liabilities)
	(Millions)





Current	$	438	$	(406)	$	623	$	(496)
Noncurrent	173		(277)		243		(345)
Total commodity derivatives	$	611	$	(683)	$	866	$	(841)
Counterparty and collateral netting offset	(380)		450		(552)		554
Amounts recognized in our Consolidated Balance Sheet	$	231	$	(233)	$	314	$	(287)

The pre-tax impacts of commodity derivatives, which are not designated as hedging instruments for accounting purposes, are reflected in our Consolidated Statement of Income as follows:


		Gain (Loss)

	Three Months Ended March 31,
		2024		2023
		(Millions)
Net gain (loss) from commodity derivatives within Total revenues:

Realized		$	86	$	174
Unrealized		(95)		332
		$	(9)	$	506

Net gain (loss) from commodity derivatives within Net processing commodity expenses:
Realized		$	(4)	$	(4)
Unrealized		3		(5)
		$	(1)	$	(9)
Total net gain (loss) from commodity derivatives		$	(10)	$	497

Generally, collateral may be provided in the form of a parent guaranty, letter of credit, or cash. If collateral is required, fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are offset against fair value amounts recognized for derivatives executed with the same counterparty.

We have specific trade and credit contracts that contain minimum credit rating requirements. These credit rating requirements typically give counterparties the right to suspend or terminate credit if our credit ratings are downgraded to non-investment grade status. Under such circumstances, we would need to post collateral to continue transacting business with these counterparties. At March 31, 2024, the contractually required collateral in the event of a credit rating downgrade to non-investment grade status was $14 million.

We maintain accounts with brokers or the clearing houses of certain exchanges to facilitate financial derivative transactions. Based on the value of the positions in these accounts and the associated margin requirements, we may be required to deposit cash into these accounts. At March 31, 2024, net cash collateral held on deposit in broker margin accounts was $70 million.