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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 9 Months Ended
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Sep. 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:
|  |  | September 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 (b) | Other current assets |  | $ | 46,451 |  |  | $ | (60,373) |  |  | $ | 64,858 |  |  | $ | (26,997) |
| Other deferred credits |  | — |  |  | — |  |  | 1,591 |  |  | (2,599) |
Interest-rate contracts | Other current liabilities |  | — |  |  | — |  |  | — |  |  | (90,161) |
| Other assets/other deferred credits |  | — |  |  | (231,991) |  |  | 581 |  |  | (111,780) |
Total derivatives designated as hedging instruments |  | 46,451 |  |  | (292,364) |  |  | 67,030 |  |  | (231,537) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |
Commodity contracts (a) |  |  |  |  |  |  |  |  |
Financial contracts (b) |  |  | 408 |  |  | (376) |  |  | — |  |  | — |
Total derivatives not designated as hedging instruments |  | 408 |  |  | (376) |  |  | — |  |  | — |
Total derivatives |  |  | $ | 46,859 |  |  | $ | (292,740) |  |  | $ | 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. (b) - At September 30, 2020, our derivative net liability positions under master-netting arrangements for financial contracts were fully offset by $13.9 million of cash collateral.
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held for the periods indicated:
|  | September 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 | 1.7 |  |  | (40.9) |  |  | — |  |  | (59.0) |
- Crude oil and NGLs (MMBbl) | Futures | 15.3 |  |  | (22.7) |  |  | 7.9 |  |  | (17.4) |
Basis |  |  |  |  |  |  |  |
- Natural gas (Bcf) | Futures | 1.7 |  |  | (40.9) |  |  | — |  |  | (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 | 1.5 |  |  | (1.5) |  |  | — |  |  | — |
- Crude oil and NGLs (MMBbl) | Futures | 0.2 |  |  | (0.2) |  |  | — |  |  | — |
Basis |  |  |  |  |  |  |  |
- Natural gas (Bcf) | Futures | 1.5 |  |  | (1.5) |  |  | — |  |  | — |
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 |  | Nine Months Ended
| September 30, |  | September 30,
2020 |  | 2019 |  | 2020 |  | 2019
| (Thousands of dollars)
Commodity contracts | $ | (29,667) |  |  | $ | 32,169 |  |  | $ | 18,472 |  |  | $ | 43,877 |
Interest-rate contracts | 9,213 |  |  | (128,041) |  |  | (237,200) |  |  | (303,351) |
Total unrealized change in fair value of cash flow hedges in other comprehensive loss | $ | (20,454) |  |  | $ | (95,872) |  |  | $ | (218,728) |  |  | $ | (259,474) |
Schedule of Cash Flow Hedging Instruments Effect on Income (Loss) | The following table sets forth the effect of cash flow hedges on net income for the periods indicated:
| Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income | Three Months Ended |  | Nine Months Ended
September 30, |  | September 30,
2020 |  | 2019 |  | 2020 |  | 2019
|  | (Thousands of dollars)
Commodity contracts | Commodity sales revenues | $ | 2,167 |  |  | $ | 38,234 |  |  | $ | 100,304 |  |  | $ | 85,375 |
| Cost of sales and fuel | (1,568) |  |  | (19,706) |  |  | (31,057) |  |  | (32,751) |
Interest-rate contracts (a) | Interest expense | (8,998) |  |  | (6,903) |  |  | (83,817) |  |  | (14,222) |
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | $ | (8,399) |  |  | $ | 11,625 |  |  | $ | (14,570) |  |  | $ | 38,402 |
(a) - The nine months ended September 30, 2020, includes 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.

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