Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following tables provide a summary of the commodity derivative fair value balances recorded as of March 31, 2026 and December 31, 2025:


March 31, 2026	Economic Hedges		Collateral(a)		Netting(a)		Total
Derivative assets (current)	$	13,711	$	453	$	(12,436)	$	1,728
Derivative assets (noncurrent)	8,352		306		(6,573)		2,085
Total derivative assets	22,063		759		(19,009)		3,813
Derivative liabilities (current)	(13,807)		564		12,436		(807)
Derivative liabilities (noncurrent)	(7,446)		360		6,573		(513)
Total derivative liabilities	(21,253)		924		19,009		(1,320)
Total derivative net assets (liabilities)	$	810	$	1,683	$	—	$	2,493

December 31, 2025
Derivative assets (current)	$	7,349	$	375	$	(6,791)	$	933
Derivative assets (noncurrent)	5,030		272		(4,853)		449
Total derivative assets	12,379		647		(11,644)		1,382
Derivative liabilities (current)	(7,642)		386		6,791		(465)
Derivative liabilities (noncurrent)	(5,585)		319		4,853		(413)
Total derivative liabilities	(13,227)		705		11,644		(878)
Total derivative net assets (liabilities)	$	(848)	$	1,352	$	—	$	504

_________

(a)We net all available amounts allowed in our Consolidated Balance Sheets in accordance with authoritative guidance for derivatives. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral.

The following table summarizes the net buy/(sell) notional position of commodity derivative transactions, excluding our NPNS derivatives that are not recorded at fair value, as of March 31, 2026 and December 31, 2025:

Total Net Position (In Millions)

Commodity Type

March 31, 2026

December 31, 2025

Unit of Measure

Electricity(a)

(638)

(260)

MWh

Natural Gas(a)

1,576

MMBtu

Emissions

(28)

(35)

Short Ton

_________

(a)The increase of net notional position at March 31, 2026 compared to December 31, 2025 is primarily driven by derivatives acquired from Calpine. See Note 2 — Mergers, Acquisitions, and Dispositions for additional information.

Economic Hedges (Commodity Price Risk)

For the three months ended March 31, 2026 and 2025, we recognized the following net pre-tax commodity unrealized gains (losses), which are also included in the Net fair value changes related to derivatives line in the Consolidated Statements of Cash Flows.


	Three Months Ended March 31,
Income Statement Location		2026		2025
Operating revenues		$	1,311	$	(287)
Purchased power and fuel		(252)		(37)
Total		$	1,059	$	(324)

Disclosure of Credit Derivatives

The following tables provide information on the credit exposure for derivative instruments, inclusive of payables and receivables, net of collateral and instruments that are subject to master netting agreements, as of March 31, 2026. The amounts in the tables below exclude credit risk exposure from individual retail counterparties, NPNS contracts, forward values on non-derivative contracts and exposure through RTOs, ISOs, as well as commodity exchanges. The tables further delineate that exposure by credit rating of the counterparties and provide guidance on the concentration of credit risk to individual counterparties.


Rating as of March 31, 2026	Total Exposure Before Credit Collateral		Credit Collateral(a)		Net Exposure		Number of Counterparties Greater than 10% of Net Exposure	Net Exposure of Counterparties Greater than 10% of Net Exposure
Investment grade	$	1,979	$	41	$	1,938	1	$	457
Non-investment grade	86		18		68		—	—
No external ratings
Internally rated — investment grade	151		5		146		—	—
Internally rated — non-investment grade	319		58		261		—	—
Total	$	2,535	$	122	$	2,413	1	$	457

__________

(a)As of March 31, 2026, credit collateral held from counterparties where we had credit exposure included $36 million of cash and $86 million of letters of credit.


Net Credit Exposure by Type of Counterparty	As of March 31, 2026
Investor-owned utilities, marketers, power producers	$	1,218
Financial Institutions	599
Energy cooperatives and municipalities	223
Other	373
Total	$	2,413

Fair Value of Derivatives with Credit- Risk Related Contingent Features

The aggregate fair value of all derivative instruments with credit-risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on the exchanges that are fully collateralized) is detailed in the table below:


Credit-Risk-Related Contingent Features	March 31, 2026		December 31, 2025
Gross fair value of derivative contracts containing this feature	$	(2,321)	$	(1,307)
Offsetting fair value of derivative contracts under master netting arrangements	1,192		554
Net fair value of derivative contracts containing this feature	$	(1,129)	$	(753)

Cash Collateral and Letters of Credit on Derivative Contracts

As of March 31, 2026 and December 31, 2025, we posted or held the following amounts of cash collateral and letters of credit on derivative contracts with external counterparties, after giving consideration to offsetting derivative and non-derivative positions under master netting agreements.


	March 31, 2026		December 31, 2025
Cash collateral posted	$	1,904	$	1,399
Letters of credit posted	1,303		718
Cash collateral held	221		47
Letters of credit held	157		115
Additional collateral required in the event of a credit downgrade below investment grade (at BB+/Ba1)(a)(b)(c)	2,972		2,670

__________

(a)Certain of our contracts contain provisions that allow a counterparty to request additional collateral when there has been a subjective determination that our credit quality has deteriorated, generally termed “adequate assurance”. Due to the subjective nature of these provisions, we estimate the amount of collateral that we may ultimately be required to post in relation to the maximum exposure with the counterparty.

(b)The downgrade collateral is inclusive of all contracts in a liability position regardless of accounting treatment and excludes any contracts with individual retail counterparties.

(c)A loss of investment grade credit rating would require a three-notch downgrade from current levels of BBB+ and Baa1 at S&P and Moody's, respectively.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

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