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FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements The following tables set forth our recurring fair value measurements for the periods indicated:
 
June 30, 2020
 
Level 1
 
Level 2
 
Level 3
 
Total - Gross
 
Netting (a)
 
Total - Net
 
(Thousands of dollars)
Derivative assets
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
Financial contracts
$
29,175

 
$
—

 
$
51,989

 
$
81,164

 
$
(52,719
)
 
$
28,445

Total derivative assets
$
29,175

 
$
—

 
$
51,989

 
$
81,164

 
$
(52,719
)
 
$
28,445

Derivative liabilities
 
 
 

 
 

 
 

 
 

 
 

Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
Financial contracts
$
(10,352
)
 
$
—

 
$
(46,406
)
 
$
(56,758
)
 
$
52,719

 
$
(4,039
)
Interest-rate contracts
—

 
(241,205
)
 
—

 
(241,205
)
 
—

 
(241,205
)
Total derivative liabilities
$
(10,352
)
 
$
(241,205
)
 
$
(46,406
)
 
$
(297,963
)
 
$
52,719

 
$
(245,244
)
(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 June 30, 2020, we held no cash and posted $13.3 million of cash with various counterparties, which is included in other current assets in our Consolidated Balance Sheet.

 
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
 
Six Months Ended
 
June 30,
 
June 30,
Derivative Assets (Liabilities)
2020
 
2019
 
2020
 
2019
 
(Thousands of dollars)
Net assets at beginning of period
$
57,401

 
$
11,529

 
$
30,772

 
$
40,484

Total changes in fair value:
 
 
 
 
 
 
 
Settlements included in net income (loss) (a)
(34,478
)
 
(8,830
)
 
(23,383
)
 
(32,624
)
New Level 3 derivatives included in other comprehensive income (loss) (b)
3,407

 
4,545

 
2,002

 
5,598

Unrealized change included in other comprehensive income (loss) (b)
(20,747
)
 
12,030

 
(3,808
)
 
5,816

Net assets at end of period
$
5,583

 
$
19,274

 
$
5,583

 
$
19,274

(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.