Derivative Instruments And Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of derivatives designated as hedging instruments under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI					Gain (Loss) Reclassified into Earnings
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,					Income Statement Location	Three Months Ended September 30,
	2018		2017				2018			2017
	(In thousands)
Commodity contracts	$	5,792	$	3,354		Sales and other revenues	$	(1,422	)	$	(488	)
						Operating expenses	(209		)	(4,961		)
Interest rate contracts (1)	—		(63		)	Interest expense	—			64
Total	$	5,792	$	3,291			$	(1,631	)	$	(5,385	)

	Unrealized Gain (Loss) Recognized in OCI					Gain (Loss) Reclassified into Earnings
Derivatives Designated as Cash Flow Hedging Instruments	Nine Months Ended September 30,					Income Statement Location	Nine Months Ended September 30,
	2018		2017				2018			2017
	(In thousands)
Commodity contracts	$	1,742	$	8,658		Sales and other revenues	$	(5,093	)	$	7,937
						Cost of products sold	—			(299		)
						Operating expenses	(945		)	(13,676		)
Interest rate contracts (1)	—		(91		)	Interest expense	—			179
Total	$	1,742	$	8,567			$	(6,038	)	$	(5,859	)

(1) HEP used interest rate swap contracts to manage its exposure to interest rate risk, which matured in July 2017.

Schedule of Realized Gain (Loss)

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Gain (Loss) Recognized in Earnings
Derivatives Not Designated as Hedging Instruments	Income Statement Location	Three Months Ended September 30,						Nine Months Ended September 30,
		2018			2017			2018			2017
		(In thousands)
Commodity contracts	Cost of products sold	$	(8,252	)	$	(10,632	)	$	(20,580	)	$	3,403
	Operating expenses	—			(629		)	—			(6,392		)
Foreign currency contracts	Gain on foreign currency transactions	(7,052		)	—			18,504			—
	Gain on foreign currency swap contracts (1)	—			—			—			24,545
	Total	$	(15,304	)	$	(11,261	)	$	(2,076	)	$	21,556

(1) Relates to Canadian currency swap contracts that settled on February 1, 2017 and effectively fixed the conversion rate on our PCLI purchase price.

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

As of September 30, 2018, we have the following notional contract volumes related to outstanding derivative instruments:

			Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional		2018		2019		2020	2021	Unit of Measure
Derivatives Designated as Hedging Instruments
Natural gas price swaps - long	5,850,000		450,000		1,800,000		1,800,000	1,800,000	MMBTU
Crude oil price swaps (basis spread) - long	4,388,000		—		1,460,000		2,928,000	—	Barrels
Derivatives Not Designated as Hedging Instruments
NYMEX futures (WTI) - short	2,303,000		2,102,000		201,000		—	—	Barrels
WTI and sub-octane gasoline crack spread swaps - short	400,000		400,000		—		—	—	Barrels
Forward gasoline contracts - long	25,000		25,000		—		—	—	Barrels
Foreign currency forward contracts	$	446,361,369	$	113,632,223	$	332,729,146	—	—	U.S. Dollar

Schedule of Fair Value and Balance Sheet Location of Outstanding Derivatives

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
September 30, 2018
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	1,565	$	—	$	1,565	$	3,243	$	(2,114	)	$	1,129
	$	1,565	$	—	$	1,565	$	3,243	$	(2,114	)	$	1,129
Derivatives not designated as cash flow hedging instruments:
Foreign exchange forward contracts	$	9,137	$	—	$	9,137	$	—	$	—		$	—
NYMEX futures contracts	—		—		—		8,854		—			8,854
Commodity price swap contracts	—		—		—		1,288		(802		)	486
Commodity forward contracts	25		—		25		4		—			4
	$	9,162	$	—	$	9,162	$	10,146	$	(802	)	$	9,344
Total net balance					$	10,727						$	10,473
Balance sheet classification:	Prepayment and other				$	9,162	Accrued liabilities					$	10,332
	Intangibles and other				1,565		Other long-term liabilities					141
					$	10,727						$	10,473

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2017
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	2,424	$	—	$	2,424
Commodity forward contracts	3,067		—		3,067		418		—		418
	$	3,067	$	—	$	3,067	$	2,842	$	—	$	2,842
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	—	$	—	$	—	$	3,360	$	—	$	3,360
Commodity forward contracts	773		—		773		602		—		602
	$	773	$	—	$	773	$	3,962	$	—	$	3,962
Total net balance					$	3,840					$	6,804
Balance sheet classification:							Accrued liabilities				$	5,365
							Other long-term liabilities				1,439
	Prepayment and other				$	3,840					$	6,804