Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

For the three-month and nine-month periods ended September 30, 2023 and 2022, 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)	Statements of Operations Location	Three Months Ended September 30,				Nine Months Ended September 30,
Type of Derivative Contract		2023		2022		2023		2022
Commodity swaps	Gain (loss) on derivative instruments	$	–	$	50,089	$	–	$	(152,822)
Commodity collars	Gain (loss) on derivative instruments	–		65,102		–		(155,832)

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, 2023 and December 31, 2022, are presented in the following table.

	September 30, 2023								December 31, 2022
(Thousands of dollars)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Liabilities:
Nonqualified employee savings plan	$	15,256	$	–	$	–	$	15,256	$	15,135	$	–	$	–	$	15,135
	$	15,256	$	–	$	–	$	15,256	$	15,135	$	–	$	–	$	15,135

Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at September 30, 2023 and December 31, 2022. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The table excludes cash and cash equivalents, trade accounts receivable, trade accounts payable and accrued expenses, all of which had fair values approximating carrying amounts. The fair value of current and long-term debt was estimated based on rates offered to the Company at that time for debt of the same maturities. Substantially all of the Company’s long-term debt is actively traded in open markets, and accordingly, is classified as Level 1 in the fair value hierarchy. The Company has off-balance sheet exposures relating to certain letters of credit. The fair value of these, which represents fees associated with obtaining the instruments, was nominal.

	September 30,				December 31,
	2023				2022
(Thousands of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:
Current and long-term debt	$	1,576,993	$	1,450,929	$	1,823,139	$	1,668,216