XML 43 R30.htm IDEA: XBRL DOCUMENT v3.20.2
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 2020
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:
 
 
 
June 30, 2020
 
December 31, 2019
 
Location in our
Consolidated Balance
Sheets
 
Assets
 
(Liabilities)
 
Assets
 
(Liabilities)
Derivatives designated as hedging instruments
 
(Thousands of dollars)
Commodity contracts (a)
 
 
 
 
 
 
 
 
 
Financial contracts
Other current assets/other current liabilities
 
$
80,992

 
$
(56,587
)
 
$
64,858

 
$
(26,997
)
 
Other deferred credits
 
—

 
—

 
1,591

 
(2,599
)
Interest-rate contracts
Other current liabilities
 
—

 
—

 
—

 
(90,161
)
 
Other assets/other deferred credits
 
—

 
(241,205
)
 
581

 
(111,780
)
Total derivatives designated as hedging instruments

 
$
80,992

 
$
(297,792
)
 
$
67,030

 
$
(231,537
)
Derivatives not designated as hedging instruments

 
 
 
 
 
 
 
 
Commodity contracts (a)
 
 
 
 
 
 
 
 
 
Financial contracts
Other current assets
 
$
172

 
$
(171
)
 
$
—

 
$
—

Total derivatives not designated as hedging instruments

 
$
172

 
$
(171
)
 
$
—

 
$
—

Total derivatives

 
 
$
81,164

 
$
(297,963
)
 
$
67,030

 
$
(231,537
)
(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:
 
 
June 30, 2020
 
December 31, 2019
 
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
5.8

 
(45.4
)
 
—

 
(59.0
)
- Natural gas (Bcf)
Options
—

 
(31.5
)
 
—

—

—

- Crude oil and NGLs (MMBbl)
Futures, forwards, swaps and options
13.8

 
(22.5
)
 
7.9

 
(17.4
)
Basis
 
 
 

 
 
 
 
- Natural gas (Bcf)
Futures and swaps
5.8

 
(45.4
)
 
—

 
(59.0
)
Interest-rate contracts (Billions of dollars)
Swaps
$
1.1

 
$
—

 
$
3.1

 
$
—

 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Fixed price
 
 
 
 
 
 
 
 
-Natural gas (Bcf)
Futures and swaps
1.8

 
(1.8
)
 
—

 
—

Basis
 
 
 
 
 
 
 
 
- Natural gas (Bcf)
Futures and Swaps
1.8

 
(1.8
)
 
—

 
—
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 loss for the periods indicated:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
2020
 
2019
 
2020
 
2019
 
(Thousands of dollars)
Commodity contracts
$
(39,056
)
 
$
33,334

 
$
48,139

 
$
11,709

Interest-rate contracts
(21,372
)
 
(107,398
)
 
(246,413
)
 
(175,310
)
Total unrealized change in fair value of cash flow hedges in other comprehensive loss
$
(60,428
)
 
$
(74,064
)
 
$
(198,274
)
 
$
(163,601
)
Schedule of Cash Flow Hedging Instruments Effect on Income (Loss)
The following table sets forth the effect of cash flow hedges on net income (loss) for the periods indicated:
 
Location of Gain (Loss) Reclassified from
Accumulated Other Comprehensive
Loss into Net Income (Loss)
Three Months Ended
 
Six Months Ended
June 30,
 
June 30,
2020
 
2019
 
2020
 
2019
 
 
(Thousands of dollars)
Commodity contracts
Commodity sales revenues
$
53,138

 
$
23,319

 
$
98,137

 
$
47,141

 
Cost of sales and fuel
(14,450
)
 
(8,075
)
 
(29,489
)
 
(13,045
)
Interest-rate contracts (a)
Interest expense
(64,541
)
 
(4,815
)
 
(74,819
)
 
(7,319
)
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income (loss) on derivatives
$
(25,853
)
 
$
10,429

 
$
(6,171
)
 
$
26,777


(a) - The three and six months ended June 30, 2020, include a loss of $48.3 million on the settlement of our remaining $1.3 billion interest-rate swaps used to hedge our LIBOR-based interest payments.