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FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Recurring Fair Value Measurements | The following tables set forth our recurring fair value measurements for the periods indicated:
| September 30, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | Total - Gross |  | Netting (a) |  | Total - Net
| (Thousands of dollars)
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  |  |  |  |  |  |  |  |  |  |
Financial contracts | $ | 10,959 |  |  | $ | 134,356 |  |  | $ | 91,384 |  |  | $ | 236,699 |  |  | $ | (236,699) |  |  | $ | — |
Interest-rate contracts | — |  |  | 67,377 |  |  | — |  |  | 67,377 |  |  | — |  |  | 67,377 |
Total derivative assets | $ | 10,959 |  |  | $ | 201,733 |  |  | $ | 91,384 |  |  | $ | 304,076 |  |  | $ | (236,699) |  |  | $ | 67,377 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  |  |  |  |  |  |  |  |  |  |
Financial contracts | $ | (112,578) |  |  | $ | (104,047) |  |  | $ | (40,132) |  |  | $ | (256,757) |  |  | $ | 256,757 |  |  | $ | — |
Total derivative liabilities | $ | (112,578) |  |  | $ | (104,047) |  |  | $ | (40,132) |  |  | $ | (256,757) |  |  | $ | 256,757 |  |  | $ | — |
(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 September 30, 2022, we held no cash and posted $110.0 million of cash with various counterparties, including $20.1 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $89.9 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheet.
| December 31, 2021
| Level 1 |  | Level 2 |  | Level 3 |  | Total - Gross |  | Netting (a) |  | Total - Net
| (Thousands of dollars)
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  |  |  |  |  |  |  |  |  |  |
Financial contracts | $ | 22,019 |  |  | $ | 172,833 |  |  | $ | 9,309 |  |  | $ | 204,161 |  |  | $ | (204,161) |  |  | $ | — |
Total derivative assets | $ | 22,019 |  |  | $ | 172,833 |  |  | $ | 9,309 |  |  | $ | 204,161 |  |  | $ | (204,161) |  |  | $ | — |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  |  |  |  |  |  |  |  |  |  |
Financial contracts | $ | (67,226) |  |  | $ | (112,922) |  |  | $ | (123,592) |  |  | $ | (303,740) |  |  | $ | 303,740 |  |  | $ | — |
Interest-rate contracts | — |  |  | (145,524) |  |  | — |  |  | (145,524) |  |  | — |  |  | (145,524) |
Total derivative liabilities | $ | (67,226) |  |  | $ | (258,446) |  |  | $ | (123,592) |  |  | $ | (449,264) |  |  | $ | 303,740 |  |  | $ | (145,524) |
(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, 2021, we held no cash and posted $157.0 million of cash with various counterparties, including $99.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $57.4 million of cash collateral in excess of derivative net liability positions 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 |  | Nine Months Ended
| September 30, |  | September 30,
Derivative Assets (Liabilities) | 2022 |  | 2021 |  | 2022 |  | 2021
| (Thousands of dollars)
Net liabilities at beginning of period | $ | (110,396) |  |  | $ | (121,750) |  |  | $ | (114,283) |  |  | $ | (31,321) |
Total changes in fair value: |  |  |  |  |  |  |
Settlements included in net income (a) | 39,446 |  |  | 46,797 |  |  | 78,932 |  |  | 28,028 |
New Level 3 derivatives included in other comprehensive income (loss) (b) | (360) |  |  | (23,151) |  |  | 73,168 |  |  | (129,805) |
Unrealized change included in other comprehensive income (loss) (b) | 122,562 |  |  | (69,104) |  |  | 13,435 |  |  | (34,110) |
Net assets (liabilities) at end of period | $ | 51,252 |  |  | $ | (167,208) |  |  | $ | 51,252 |  |  | $ | (167,208) |
(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.

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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