Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Crude Oil Derivative Contracts

At September 30, 2021, volumes per day associated with outstanding crude oil derivative contracts and the weighted average prices for these contracts are as follows:

	September 30, 2021
	2021		2022
NYMEX WTI swap contracts:
Volume per day (Bbl):	45,000		20,000
Price per Bbl:	$	42.77	$	44.88
NYMEX WTI collar contracts:
Volume per day (Bbl):	—		16,000
Price per Bbl:
Ceiling:	$	—	$	71.83
Floor:	—		60.38

Fair Value of Derivative Instruments Not Designated as Hedging Instruments

At September 30, 2021 and December 31, 2020, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.

	September 30, 2021			December 31, 2020
(Thousands of dollars)	Asset (Liability) Derivatives			Asset (Liability) Derivatives
Type of Derivative Contract	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity swaps	Accounts receivable	$	—	Accounts receivable	13,050
	Accounts payable	(312,448)		Accounts payable	(89,842)
	Deferred credits and other liabilities	(41,645)		Deferred credits and other liabilities	(12,833)
Commodity collars	Accounts receivable	—		Accounts receivable	—
	Accounts payable	(15,929)		Accounts payable	—

Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments

For the three-month and nine-month periods ended September 30, 2021 and 2020, the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table.

		Gain (Loss)			Gain (Loss)
(Thousands of dollars)	Statement of Operations Location	Three Months Ended September 30,			Nine months ended September 30,
Type of Derivative Contract		2021		2020	2021	2020
Commodity swaps	(Loss) gain on derivative instruments	$	(43,235)	(5,290)	(483,865)	319,502
Commodity collars	(Loss) gain on derivative instruments	(15,929)		—	(15,929)	—

Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis

The carrying value of assets and liabilities recorded at fair value on a recurring basis at September 30, 2021 and December 31, 2020, are presented in the following table.

	September 30, 2021					December 31, 2020
(Thousands of dollars)	Level 1		Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets:
Commodity swaps	$	—	—	—	—	—	13,050	—	13,050
	$	—	—	—	—	—	13,050	—	13,050
Liabilities:
Commodity collars	$	—	15,929	—	15,929	—	—	—	—
Nonqualified employee savings plan	17,180		—	—	17,180	14,988	—	—	14,988
Commodity swaps	—		354,093	—	354,093	—	102,675	—	102,675
Contingent consideration	—		—	238,115	238,115	—	—	133,004	133,004
	$	17,180	370,022	238,115	625,317	14,988	102,675	133,004	250,667