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v3.23.1

Derivative Assets And Liabilities (Tables) | 3 Months Ended
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Mar. 31, 2023
Outstanding Commodity-Related Derivatives | The following table details our outstanding commodity-related derivatives:
| March 31, 2023 |  | December 31, 2022
| Notional Volume |  | Maturity |  | Notional Volume |  | Maturity
Mark-to-Market Derivatives |  |  |  |  |  |  |
(Trading) |  |  |  |  |  |  |
Natural Gas (BBtu): |  |  |  |  |  |  |
Fixed Swaps/Futures | 215 |  |  | 2023-2024 |  | 145 |  |  | 2023
Basis Swaps IFERC/NYMEX (1) | (49,423) |  |  | 2023 |  | (39,563) |  |  | 2023
Power (Megawatt): |  |  |  |  |  |  |
Forwards | 85,400 |  |  | 2023-2029 |  | — |  |  | 2023-2029
Futures | (289,918) |  |  | 2023-2024 |  | (21,384) |  |  | 2023
Options – Puts | 8,000 |  |  | 2023-2024 |  | 119,200 |  |  | 2023
Options – Calls | (119,200) |  |  | 2023-2024 |  | — |  |  | —
(Non-Trading) |  |  |  |  |  |  |
Natural Gas (BBtu): |  |  |  |  |  |  |
Basis Swaps IFERC/NYMEX | 40,533 |  |  | 2023-2024 |  | 42,440 |  |  | 2023-2024
Swing Swaps IFERC | (58,778) |  |  | 2023-2024 |  | (202,815) |  |  | 2023-2024
Fixed Swaps/Futures | (10,225) |  |  | 2023-2025 |  | (15,758) |  |  | 2023-2025
Forward Physical Contracts | 532 |  |  | 2023-2025 |  | 2,423 |  |  | 2023-2024
NGLs (MBbls) – Forwards/Swaps | 10,341 |  |  | 2023-2025 |  | 6,934 |  |  | 2023-2025
Crude (MBbls) – Forwards/Swaps | (4,257) |  |  | 2023-2025 |  | 795 |  |  | 2023-2024
Refined Products (MBbls) – Futures | (2,401) |  |  | 2023-2024 |  | (3,547) |  |  | 2023-2024
Fair Value Hedging Derivatives |  |  |  |  |  |  |
(Non-Trading) |  |  |  |  |  |  |
Natural Gas (BBtu): |  |  |  |  |  |  |
Basis Swaps IFERC/NYMEX | (45,535) |  |  | 2023 |  | (37,448) |  |  | 2023
Fixed Swaps/Futures | (45,535) |  |  | 2023 |  | (37,448) |  |  | 2023
Hedged Item – Inventory | 45,535 |  |  | 2023 |  | 37,448 |  |  | 2023
(1)Includes aggregate amounts for open positions related to Houston Ship Channel, Waha Hub, NGPL TexOk, West Louisiana Zone and Henry Hub locations.
Interest Rate Swaps Outstanding | The following table summarizes our interest rate swaps outstanding, none of which were designated as hedges for accounting purposes:
Term |  | Type(1) |  | Notional Amount Outstanding
March 31, 2023 |  | December 31, 2022
July 2024(2) |  | Forward-starting to pay an average fixed rate of 3.512% and receive a floating rate |  | $ | 400 |  |  | $ | 400 |
(1)Floating rates are based on SOFR. (2)Represents the effective date. These forward-starting swaps have terms of 30 years with a mandatory termination date the same as the effective date. In April 2023, USAC entered into an interest rate swap to manage interest rate risk associated with its floating-rate credit facility. The interest rate swap has a notional amount of $700 million and a mandatory termination in April 2025. Under the interest rate swap, USAC is to pay a fixed interest rate of 3.785% and receive floating interest rate payments that are indexed to SOFR.
Fair Value Of Derivative Instruments | The following table provides a summary of our derivative assets and liabilities:
|  | Fair Value of Derivative Instruments
|  | Asset Derivatives |  | Liability Derivatives
|  | March 31, 2023 |  | December 31, 2022 |  | March 31, 2023 |  | December 31, 2022
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
Commodity derivatives (margin deposits) |  | $ | 47 |  |  | $ | 87 |  |  | $ | (21) |  |  | $ | (7) |
|  | 47 |  |  | 87 |  |  | (21) |  |  | (7) |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Commodity derivatives (margin deposits) |  | 255 |  |  | 506 |  |  | (231) |  |  | (411) |
Commodity derivatives |  | 59 |  |  | 95 |  |  | (57) |  |  | (108) |
Interest rate derivatives |  | — |  |  | — |  |  | (43) |  |  | (23) |
|  | 314 |  |  | 601 |  |  | (331) |  |  | (542) |
Total derivatives |  | $ | 361 |  |  | $ | 688 |  |  | $ | (352) |  |  | $ | (549) |
Derivatives, Offsetting Fair Value Amounts [Table Text Block] | The following table presents the fair value of our recognized derivative assets and liabilities on a gross basis and amounts offset on the consolidated balance sheets that are subject to enforceable master netting arrangements or similar arrangements:
|  |  |  | Asset Derivatives |  | Liability Derivatives
|  | Balance Sheet Location |  | March 31, 2023 |  | December 31, 2022 |  | March 31, 2023 |  | December 31, 2022
Derivatives without offsetting agreements |  | Derivative liabilities |  | $ | — |  |  | $ | — |  |  | $ | (43) |  |  | $ | (23) |
Derivatives in offsetting agreements: |  |  |  |  |  |  |  |
OTC contracts |  | Derivative assets (liabilities) |  | 59 |  |  | 95 |  |  | (57) |  |  | (108) |
Broker cleared derivative contracts |  | Other current assets (liabilities) |  | 302 |  |  | 593 |  |  | (252) |  |  | (418) |
Total gross derivatives |  | 361 |  |  | 688 |  |  | (352) |  |  | (549) |
Offsetting agreements: |  |  |  |  |  |  |  |
Counterparty netting |  | Derivative assets (liabilities) |  | (53) |  |  | (85) |  |  | 53 |  |  | 85 |
Counterparty netting |  | Other current assets (liabilities) |  | (208) |  |  | (359) |  |  | 208 |  |  | 359 |
Total net derivatives |  | $ | 100 |  |  | $ | 244 |  |  | $ | (91) |  |  | $ | (105) |
We disclose the non-exchange traded financial derivative instruments as derivative assets and liabilities on our consolidated balance sheets at fair value with amounts classified as either current or long-term depending on the anticipated settlement date.
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following table summarizes the location and amounts recognized in our consolidated statements of operations with respect to our derivative financial instruments:
| Location |  |  |  |  |  | Amount of Gain (Loss) Recognized in Income on Derivatives
|  |  |  |  | Three Months Ended March 31,
|  |  |  |  |  |  | 2023 |  | 2022
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |
Commodity derivatives – Trading | Cost of products sold |  |  |  |  |  | $ | (12) |  |  | $ | 17 |
Commodity derivatives – Non-trading | Cost of products sold |  |  |  |  |  | 68 |  |  | (17) |
Interest rate derivatives | Gains (losses) on interest rate derivatives |  |  |  |  |  | (20) |  |  | 114 |
Total |  |  |  |  |  |  | $ | 36 |  |  | $ | 114 |

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