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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables)

12 Months Ended

Dec. 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:

									December 31, 2021												December 31, 2020
			Location in our Consolidated Balance Sheets						Assets						(Liabilities)						Assets						(Liabilities)
									(Thousands of dollars)
Derivatives designated as hedging instruments
Commodity contracts (a)
Financial contracts (b)									$	204,161					$	(303,740)					$	107,461					$	(142,573)
Interest-rate contracts			Other current liabilities						—						(145,524)						—						—
			Other deferred credits						—						—						—						(203,407)
Total derivatives designated as hedging instruments									204,161						(449,264)						107,461						(345,980)
Derivatives not designated as hedging instruments
Commodity contracts (a)
Financial contracts (b)									—						—						3,037						(3,038)
Total derivatives not designated as hedging instruments									—						—						3,037						(3,038)
Total derivatives									$	204,161					$	(449,264)					$	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 December 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 $99.6 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:

December 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

(32.3)

(43.3)

-Crude oil and NGLs (MMBbl)

Futures

(10.0)

(4.6)

Basis

-Natural gas (Bcf)

Futures

(30.5)

(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 0.8 MMBbl for NGLs fixed priced derivative instruments at December 31, 2020.

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:

						Years Ended December 31,
						2021						2020						2019
						(Thousands of dollars)
Commodity contracts						$	(322,648)					$	(5,699)					$	38,819
Interest-rate contracts						57,884						(208,616)						(230,771)
Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss)						$	(264,764)					$	(214,315)					$	(191,952)

Schedule of Cash Flow Hedging Instruments Effect on Income

The following table sets forth the effect of cash flow hedges on net income for the periods indicated:

Derivatives in Cash Flow Hedging Relationships						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income
												Years Ended December 31,
												2021						2020						2019
												(Thousands of dollars)
Commodity contracts						Commodity sales revenues						$	(731,793)					$	85,436					$	94,547
						Cost of sales and fuel						473,612						(19,170)						(44,202)
Interest-rate contracts (a)						Interest expense						(39,952)						(93,676)						(23,230)
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives												$	(298,133)					$	(27,410)					$	27,115

(a) - The year ended December 31, 2020, includes a loss of $48.3 million on the settlement of $1.3 billion of interest-rate swaps used to hedge our LIBOR-based interest payments.

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Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings.

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Tabular disclosure for cash flow hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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Tabular disclosure of the notional amounts of outstanding derivative positions.

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