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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2019
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, 2019
 
December 31, 2018
 
Location in our
Consolidated Balance
Sheets
 
Assets
 
(Liabilities)
 
Assets
 
(Liabilities)
 
 
 
(Thousands of dollars)
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
Commodity contracts (a)
 
 
 
 
 
 
 
 
 
Financial contracts
Other current assets
 
$
72,995

 
$
(36,186
)
 
$
78,891

 
$
(31,793
)
 
Other assets
 
7,321

 
(4,227
)
 
1,086

 
(946
)
Physical contracts
Other current assets
 
579

 
—

 
1,142

 
—

Interest-rate contracts
Other current assets/other current liabilities
 
—

 
(14,672
)
 
19,005

 
(15,012
)
 
Other deferred credits
 
—

 
(262,193
)
 
—

 
(84,248
)
Total derivatives designated as hedging instruments
 
$
80,895

 
$
(317,278
)
 
$
100,124

 
$
(131,999
)
(a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us.
Notional Amounts of Derivative Instruments The following table sets forth the notional quantities for derivative instruments held for the periods indicated:
 
 
September 30, 2019
 
December 31, 2018
 
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
—

 
(39.6
)
 
—

 
(29.9
)
- Crude oil and NGLs (MMBbl)
Futures, forwards, swaps and options
9.2

 
(20.1
)
 
6.5

 
(13.8
)
Basis
 
 
 
 
 
 
 
 
- Natural gas (Bcf)
Futures and swaps
—

 
(39.6
)
 
—

 
(29.9
)
Interest-rate contracts (Billions of dollars)
Swaps
$
3.1

 
$
—

 
$
4.3

 
$
—
Schedule of Cash Flow Hedging Instruments Effect on Comprehensive Income (Loss) The following table sets forth the unrealized change in fair value of cash flow hedges 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,
2019
 
2018
 
2019
 
2018
 
(Thousands of dollars)
Commodity contracts
$
32,169

 
$
(30,783
)
 
$
43,877

 
$
(56,246
)
Interest-rate contracts
(128,041
)
 
26,203

 
(303,351
)
 
70,179

Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss)
$
(95,872
)
 
$
(4,580
)
 
$
(259,474
)
 
$
13,933
Schedule of Cash Flow Hedging Instruments Effect on Income
The following table sets forth the effect of cash flow hedges on net 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,
2019
 
2018
 
2019
 
2018
 
 
(Thousands of dollars)
Commodity contracts
Commodity sales revenues/
cost of sales and fuel
$
18,528

 
$
(20,630
)
 
$
52,624

 
$
(42,430
)
Interest-rate contracts
Interest expense
(6,903
)
 
(4,383
)
 
(14,222
)
 
(13,929
)
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income
$
11,625

 
$
(25,013
)
 
$
38,402

 
$
(56,359
)