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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 9 Months Ended
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Sep. 30, 2022
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, 2022 |  | December 31, 2021
| Location in our Consolidated Balance Sheets |  | Assets |  | (Liabilities) |  | Assets |  | (Liabilities)
Derivatives designated as hedging instruments |  | (Thousands of dollars)
Commodity contracts (a) |  |  |  |  |  |  |  |  |
Financial contracts (b) |  |  | $ | 236,699 |  |  | $ | (256,757) |  |  | $ | 204,161 |  |  | $ | (303,740) |
Interest-rate contracts | Other current assets/liabilities |  | 67,377 |  |  | — |  |  | — |  |  | (145,524) |
Total derivatives designated as hedging instruments |  | $ | 304,076 |  |  | $ | (256,757) |  |  | $ | 204,161 |  |  | $ | (449,264) |
(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, 2022, and December 31, 2021, our derivative net liability positions under master-netting arrangements for financial contracts were fully offset by cash collateral of $20.1 million and $99.6 million, respectively.
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held for the periods indicated:
|  | September 30, 2022 |  | December 31 2021
| Contract Type | Net Purchased/Payor (Sold/Receiver)
Derivatives designated as hedging instruments: |  |  |  |
Cash flow hedges |  |  |  |
Fixed price |  |  |  |
- Natural gas (Bcf) | Futures | (46.4) |  |  | (32.3) |
- Crude oil and NGLs (MMBbl) | Futures | (12.4) |  |  | (10.0) |
Basis |  |  |  |
- Natural gas (Bcf) | Futures | (46.3) |  |  | (30.5) |
Interest-rate contracts (Billions of dollars) | Swaps | $ | 1.1 |  |  | $ | 1.1 |
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 |  | Nine Months Ended
| September 30, |  | September 30,
2022 |  | 2021 |  | 2022 |  | 2021
| (Thousands of dollars)
Commodity contracts | $ | 69,430 |  |  | $ | (171,665) |  |  | $ | (139,203) |  |  | $ | (410,572) |
Interest-rate contracts | 68,608 |  |  | 800 |  |  | 212,901 |  |  | 57,816 |
Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | $ | 138,038 |  |  | $ | (170,865) |  |  | $ | 73,698 |  |  | $ | (352,756) |
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:
Derivatives in Cash Flow Hedging Relationships | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income | Three Months Ended |  | Nine Months Ended
September 30, |  | September 30,
2022 |  | 2021 |  | 2022 |  | 2021
|  | (Thousands of dollars)
Commodity contracts | Commodity sales revenues | $ | (77,938) |  |  | $ | (223,741) |  |  | $ | (546,506) |  |  | $ | (439,421) |
| Cost of sales and fuel | 17,479 |  |  | 147,360 |  |  | 327,782 |  |  | 283,153 |
Interest-rate contracts | Interest expense | (9,610) |  |  | (9,902) |  |  | (28,563) |  |  | (29,483) |
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | $ | (70,069) |  |  | $ | (86,283) |  |  | $ | (247,287) |  |  | $ | (185,751) |

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