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FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements The following tables set forth our recurring fair value measurements for the periods indicated:
 
March 31, 2020
 
Level 1
 
Level 2
 
Level 3
 
Total - Gross
 
Netting (a)
 
Total - Net
 
(Thousands of dollars)
Derivative assets
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
Financial contracts
$
37,599

 
$
—

 
$
130,272

 
$
167,871

 
$
(140,707
)
 
$
27,164

Total derivative assets
$
37,599

 
$
—

 
$
130,272

 
$
167,871

 
$
(140,707
)
 
$
27,164

Derivative liabilities
 
 
 

 
 

 
 

 
 

 
 

Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
Financial contracts
$
(911
)
 
$
—

 
$
(72,871
)
 
$
(73,783
)
 
$
73,783

 
$
—

Interest-rate contracts
—

 
(270,297
)
 
—

 
(270,297
)
 
—

 
(270,297
)
Total derivative liabilities
$
(911
)
 
$
(270,297
)
 
$
(72,871
)
 
$
(344,080
)
 
$
73,783

 
$
(270,297
)
(a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At March 31, 2020, we posted no cash and held cash of $66.9 million from various counterparties, which offsets our derivative net asset position under master netting arrangements as shown in the table above.

 
December 31, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total - Gross
 
Netting (a)
 
Total - Net
 
(Thousands of dollars)
Derivative assets
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
Financial contracts
$
10,892

 
$
—

 
$
55,557

 
$
66,449

 
$
(28,588
)
 
$
37,861

Interest-rate contracts
—

 
581

 
—

 
581

 
—

 
581

Total derivative assets
$
10,892

 
$
581

 
$
55,557

 
$
67,030

 
$
(28,588
)
 
$
38,442

Derivative liabilities
 

 
 

 
 

 
 

 
 

 
 

Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
Financial contracts
$
(4,811
)
 
$
—

 
$
(24,785
)
 
$
(29,596
)
 
$
28,588

 
$
(1,008
)
Interest-rate contracts
—

 
(201,941
)
 
—

 
(201,941
)
 
—

 
(201,941
)
Total derivative liabilities
$
(4,811
)
 
$
(201,941
)
 
$
(24,785
)
 
$
(231,537
)
 
$
28,588

 
$
(202,949
)

(a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2019, we held no cash and posted $8.8 million of cash with various counterparties, which is included in other current assets in our Consolidated Balance Sheet.
Reconciliation of Level 3 Fair Value Measurements

The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated:
 
Three Months Ended
 
March 31,
Derivative Assets (Liabilities)
2020
 
2019
 
(Thousands of dollars)
Net assets at beginning of period
$
30,772

 
$
40,484

Total changes in fair value:


 
 
Settlements included in net income (loss) (a)
(16,146
)
 
(25,361
)
New Level 3 derivatives included in other comprehensive income (loss) (b)
20,993

 
1,597

Unrealized change included in other comprehensive income (loss) (b)
21,782

 
(5,191
)
Net assets at end of period
$
57,401

 
$
11,529

(a) - Included in commodity sales revenues/cost of sales and fuel in our Consolidated Statements of Income.
(b) - Included in change in fair value of derivatives in our Consolidated Statements of Comprehensive Income.