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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 3 Months Ended
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Mar. 31, 2021
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:
|  |  | March 31, 2021 |  | December 31, 2020
| Location in our Consolidated Balance Sheets |  | Assets |  | (Liabilities) |  | Assets |  | (Liabilities)
Derivatives designated as hedging instruments |  | (Thousands of dollars)
Commodity contracts (a) |  |  |  |  |  |  |  |  |
Financial contracts (b) |  |  | $ | 113,909 |  |  | $ | (168,369) |  |  | $ | 107,461 |  |  | $ | (142,573) |
Interest-rate contracts | Other current assets/ liabilities |  | 241 |  |  | (65,329) |  |  | — |  |  | — |
| Other deferred credits |  | — |  |  | (32,034) |  |  | — |  |  | (203,407) |
Total derivatives designated as hedging instruments |  | 114,150 |  |  | (265,732) |  |  | 107,461 |  |  | (345,980) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |
Commodity contracts (a) |  |  |  |  |  |  |  |  |
Financial contracts (b) |  |  | 6,247 |  |  | (6,187) |  |  | 3,037 |  |  | (3,038) |
Total derivatives not designated as hedging instruments |  | 6,247 |  |  | (6,187) |  |  | 3,037 |  |  | (3,038) |
Total derivatives |  |  | $ | 120,397 |  |  | $ | (271,919) |  |  | $ | 110,498 |  |  | $ | (349,018) |
(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 March 31, 2021, and December 31, 2020, our derivative net liability positions under master-netting arrangements for financial contracts were fully offset by cash collateral of $54.4 million and $35.1 million, respectively.
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held for the periods indicated:
|  | March 31, 2021 |  | December 31, 2020
| Contract Type | Net Purchased/Payor (Sold/Receiver)
Derivatives designated as hedging instruments: (a) |  |  |  |
Cash flow hedges |  |  |  |
Fixed price |  |  |  |
- Natural gas (Bcf) | Futures | (80.9) |  |  | (43.3) |
- Crude oil and NGLs (MMBbl) | Futures | (10.9) |  |  | (4.6) |
Basis |  |  |  |
- Natural gas (Bcf) | Futures | (80.9) |  |  | (43.3) |
Interest-rate contracts (Billions of dollars) | Swaps | $ | 1.1 |  |  | $ | 1.1 |
(a) - Notional amounts for derivatives not designated as hedging instruments are excluded from the table above due to fully offsetting notional quantities of 0.5 MMBbl and 0.8 MMBbl for NGLs fixed priced derivative instruments at March 31, 2021, and December 31, 2020, respectively.
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
|  |  | March 31,
|  |  |  | 2021 |  | 2020
|  |  |  |  | (Thousands of dollars)
Commodity contracts |  |  |  |  | $ | (63,430) |  |  | $ | 87,195 |
Interest-rate contracts |  |  |  |  | 106,285 |  |  | (225,041) |
Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss) |  |  |  |  | $ | 42,855 |  |  | $ | (137,846) |
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
|  | March 31,
|  |  |  | 2021 |  | 2020
|  |  |  |  |  | (Thousands of dollars)
Commodity contracts | Commodity sales revenues |  |  |  |  | $ | (130,518) |  |  | $ | 44,999 |
| Cost of sales and fuel |  |  |  |  | 86,436 |  |  | (15,039) |
Interest-rate contracts | Interest expense |  |  |  |  | (9,666) |  |  | (10,278) |
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income (loss) on derivatives |  |  |  |  | $ | (53,748) |  |  | $ | 19,682 |

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