RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivatives

The following table sets forth the fair values of our derivative instruments presented on a gross basis for the periods indicated:

		September 30, 2020				December 31, 2019
	Location in our Consolidated Balance Sheets	Assets		(Liabilities)		Assets		(Liabilities)
Derivatives designated as hedging instruments		(Thousands of dollars)
Commodity contracts (a)
Financial contracts (b)	Other current assets	$	46,451	$	(60,373)	$	64,858	$	(26,997)
	Other deferred credits	—		—		1,591		(2,599)
Interest-rate contracts	Other current liabilities	—		—		—		(90,161)
	Other assets/other deferred credits	—		(231,991)		581		(111,780)
Total derivatives designated as hedging instruments		46,451		(292,364)		67,030		(231,537)
Derivatives not designated as hedging instruments
Commodity contracts (a)
Financial contracts (b)		408		(376)		—		—
Total derivatives not designated as hedging instruments		408		(376)		—		—
Total derivatives		$	46,859	$	(292,740)	$	67,030	$	(231,537)

(a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us.

(b) - At September 30, 2020, our derivative net liability positions under master-netting arrangements for financial contracts were fully offset by $13.9 million of cash collateral.

Notional Amounts of Derivative Instruments

The following table sets forth the notional quantities for derivative instruments held for the periods indicated:

		September 30, 2020				December 31, 2019
	Contract Type	Purchased/ Payor		Sold/ Receiver		Purchased/ Payor		Sold/ Receiver
Derivatives designated as hedging instruments:
Cash flow hedges
Fixed price
- Natural gas (Bcf)	Futures	1.7		(40.9)		—		(59.0)
- Crude oil and NGLs (MMBbl)	Futures	15.3		(22.7)		7.9		(17.4)
Basis
- Natural gas (Bcf)	Futures	1.7		(40.9)		—		(59.0)
Interest-rate contracts (Billions of dollars)	Swaps	$	1.1	$	—	$	3.1	$	—
Derivatives not designated as hedging instruments:
Fixed price
- Natural gas (Bcf)	Futures	1.5		(1.5)		—		—
- Crude oil and NGLs (MMBbl)	Futures	0.2		(0.2)		—		—
Basis
- Natural gas (Bcf)	Futures	1.5		(1.5)		—		—

Schedule of Cash Flow Hedging Instruments Effect on Comprehensive Income (Loss)

The following table sets forth the unrealized change in fair value of cash flow hedges in other comprehensive loss for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(Thousands of dollars)
Commodity contracts	$	(29,667)	$	32,169	$	18,472	$	43,877
Interest-rate contracts	9,213		(128,041)		(237,200)		(303,351)
Total unrealized change in fair value of cash flow hedges in other comprehensive loss	$	(20,454)	$	(95,872)	$	(218,728)	$	(259,474)

Schedule of Cash Flow Hedging Instruments Effect on Income (Loss)

The following table sets forth the effect of cash flow hedges on net income for the periods indicated:

	Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income	Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2020		2019		2020		2019
		(Thousands of dollars)
Commodity contracts	Commodity sales revenues	$	2,167	$	38,234	$	100,304	$	85,375
	Cost of sales and fuel	(1,568)		(19,706)		(31,057)		(32,751)
Interest-rate contracts (a)	Interest expense	(8,998)		(6,903)		(83,817)		(14,222)
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives		$	(8,399)	$	11,625	$	(14,570)	$	38,402

(a) - The nine months ended September 30, 2020, includes a loss of $48.3 million on the settlement of our remaining $1.3 billion interest-rate swaps used to hedge our LIBOR-based interest payments.