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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 9 Months Ended
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Sep. 30, 2023
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 as of the dates indicated:
|  |  | September 30, 2023 |  | December 31, 2022
| Location in our Consolidated Balance Sheets |  | Assets |  | (Liabilities) |  | Assets |  | (Liabilities)
Derivatives designated as hedging instruments |  | (Millions of dollars)
Commodity contracts (a) | Other current assets |  | $ | 104 |  |  | $ | (79) |  |  | $ | 160 |  |  | $ | (123) |
| Other assets |  | — |  |  | — |  |  | 6 |  |  | (1) |
Interest-rate contracts | Other current assets |  | — |  |  | — |  |  | 11 |  |  | — |
Total derivatives designated as hedging instruments |  | 104 |  |  | (79) |  |  | 177 |  |  | (124) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |
Commodity contracts (a) | Other current assets/liabilities |  | 12 |  |  | (5) |  |  | 1 |  |  | (1) |
Total derivatives not designated as hedging instruments |  | 12 |  |  | (5) |  |  | 1 |  |  | (1) |
Total derivatives |  |  | $ | 116 |  |  | $ | (84) |  |  | $ | 178 |  |  | $ | (125) |
(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.
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held as of the dates indicated:
|  | September 30, 2023 |  | December 31, 2022
| Contract Type | Net Purchased/Payor (Sold/Receiver)
Derivatives designated as hedging instruments: |  |  |  |
Cash flow hedges |  |  |  |
Fixed price |  |  |  |
- Natural gas (Bcf) | Futures | (18.8) |  |  | (39.3) |
- Refined Products, crude oil and NGLs (MMBbl) | Futures | (13.8) |  |  | (8.4) |
Basis |  |  |  |
- Natural gas (Bcf) | Futures | (19.4) |  |  | (39.3) |
Interest-rate contracts (Billions of dollars) | Swaps | $ | — |  |  | $ | 0.4 |
Derivatives not designated as hedging instruments: |  |  |
Fixed price |  |  |  |
- Natural gas (Bcf) | Futures | — |  |  | (0.1) |
- Refined Products, crude oil and NGLs (MMBbl) | Futures and swaps | (1.9) |  |  | 0.1 |
Basis |  |  |  |
- Natural gas (Bcf) | Futures | — |  |  | (0.1) |
- Refined Products, crude oil and NGLs (MMBbl) | Futures and swaps | (0.1) |  |  | — |
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 for the periods indicated:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
2023 |  | 2022 |  | 2023 |  | 2022
| (Millions of dollars)
Commodity contracts | $ | (37) |  |  | $ | 69 |  |  | $ | 57 |  |  | $ | (139) |
Interest-rate contracts | 52 |  |  | 69 |  |  | 54 |  |  | 213 |
Total unrealized change in fair value of cash flow hedges in other comprehensive income | $ | 15 |  |  | $ | 138 |  |  | $ | 111 |  |  | $ | 74 |
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,
2023 |  | 2022 |  | 2023 |  | 2022
|  | (Millions of dollars)
Commodity contracts | Commodity sales revenues | $ | 31 |  |  | $ | (78) |  |  | $ | 149 |  |  | $ | (546) |
| Cost of sales and fuel | (15) |  |  | 18 |  |  | (75) |  |  | 328 |
Interest-rate contracts | Interest expense | (5) |  |  | (10) |  |  | (16) |  |  | (29) |
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | $ | 11 |  |  | $ | (70) |  |  | $ | 58 |  |  | $ | (247) |

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