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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2018
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, 2018
 
December 31, 2017
 
Location in our Consolidated Balance Sheets
 
Assets
 
(Liabilities)
 
Assets
 
(Liabilities)
 
 
 
(Thousands of dollars)
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
Financial contracts
Other current assets/other current liabilities
 
$
46,411

 
$
(84,174
)
 
$
16,978

 
$
(42,819
)
 
Other assets/other deferred credits
 
3,461

 
(11,938
)
 
—

 
(3,838
)
Physical contracts
Other current liabilities
 
—

 
(1,898
)
 
—

 
(4,781
)
 
Other deferred credits
 
—

 
(112
)
 
—

 
—

Interest-rate contracts
Other current assets
 
—

 
—

 
1,330

 
—

 
Other assets
 
50,509

 
—

 
48,630

 
—

Total derivatives designated as hedging instruments
 
100,381

 
(98,122
)
 
66,938

 
(51,438
)
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
Financial contracts
Other current assets/other current liabilities
 
4,257

 
(4,238
)
 
7,477

 
(7,311
)
Total derivatives not designated as hedging instruments
 
4,257

 
(4,238
)
 
7,477

 
(7,311
)
Total derivatives
 
 
$
104,638

 
$
(102,360
)
 
$
74,415

 
$
(58,749
)
Notional Amounts of Derivative Instruments
The following table sets forth the notional quantities for derivative instruments held for the periods indicated:
 
 
September 30, 2018
 
December 31, 2017
 
Contract
Type
Purchased/
Payor
 
Sold/
Receiver
 
Purchased/
Payor
 
Sold/
Receiver
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
 
Fixed price
 
 
 
 
 
 
 
 
- Natural gas (Bcf)
Futures and swaps
—

 
(36.1
)
 
—

 
(24.5
)
- Crude oil and NGLs (MMBbl)
Futures, forwards
and swaps
7.2

 
(16.5
)
 
3.5

 
(11.1
)
Basis
 
 

 
 

 
 
 
 
- Natural gas (Bcf)
Futures and swaps
—

 
(36.1
)
 
—

 
(24.5
)
Interest-rate contracts (Millions of dollars)
Swaps
$
1,750.0

 
$
—

 
$
1,750.0

 
$
—

 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Fixed price
 
 
 
 
 
 
 
 
- NGLs (MMBbl)
Futures, forwards
and swaps
0.2

 
(0.2
)
 
0.8

 
(0.8
)
Schedule of Cash Flow Hedging Instruments Effect on Comprehensive Income (Loss)
The following table sets forth the unrealized effect of cash flow hedges recognized in other comprehensive income (loss) for the periods indicated:
 
Three Months Ended
 
Nine Months Ended
Derivatives in Cash Flow Hedging Relationships
September 30,
 
September 30,
2018
 
2017
 
2018
 
2017
 
(Thousands of dollars)
Commodity contracts
$
(30,783
)
 
$
(42,450
)
 
$
(56,246
)
 
$
(6,123
)
Interest-rate contracts
26,203

 
9,613

 
70,179

 
(3,853
)
Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives
$
(4,580
)
 
$
(32,837
)
 
$
13,933

 
$
(9,976
)
Schedule of Cash Flow Hedging Instruments Effect on Income
The following table sets forth the effect of cash flow hedges in our Consolidated Statements of Income for the periods indicated:
Derivatives in Cash Flow
Hedging Relationships
Location of Gain (Loss) Reclassified from
Accumulated Other Comprehensive
Loss into Net Income
Three Months Ended
 
Nine Months Ended
September 30,
 
September 30,
2018
 
2017
 
2018
 
2017
 
 
(Thousands of dollars)
Commodity contracts
Commodity sales revenues
$
(20,630
)
 
$
(15,913
)
 
$
(42,430
)
 
$
(38,028
)
Interest-rate contracts
Interest expense
(4,383
)
 
(4,820
)
 
(13,929
)
 
(15,321
)
Total gain (loss) reclassified from accumulated other comprehensive loss into net income on derivatives
$
(25,013
)
 
$
(20,733
)
 
$
(56,359
)
 
$
(53,349
)