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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 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:

									December 31, 2023												December 31, 2022
			Location in our Consolidated Balance Sheets						Assets						(Liabilities)						Assets						(Liabilities)
									(Millions of dollars)
Derivatives designated as hedging instruments
Commodity contracts (a)			Other current assets						$	163					$	(78)					$	160					$	(123)
			Other assets						—						—						6						(1)
Interest-rate contracts			Other current assets						—						—						11						—
Total derivatives designated as hedging instruments									163						(78)						177						(124)
Derivatives not designated as hedging instruments
Commodity contracts (a)			Other current assets						14						(6)						1						(1)
Total derivatives not designated as hedging instruments									14						(6)						1						(1)
Total derivatives									$	177					$	(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:

						December 31, 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			(16.0)						(39.3)
-NGLs, Refined Products and crude oil (MMBbl)			Futures and swaps			(14.5)						(8.4)
-Power (GWh)			Futures			22.1						—
Basis
-Natural gas (Bcf)			Futures			(16.0)						(39.3)
Interest-rate contracts (Billions of dollars)			Swaps			$	—					$	0.4
Derivatives not designated as hedging instruments:
Fixed price
-Natural gas (Bcf)			Futures			(0.7)						(0.1)
-NGLs, Refined Products and crude oil (MMBbl)			Futures and swaps			0.1						0.1
Basis
-Natural gas (Bcf)			Futures			(0.7)						(0.1)
-NGLs, Refined Products, and crude oil (MMBbl)			Futures and swaps			(0.1)						—

Schedule of Cash Flow Hedges Included in Other Comprehensive Income (Loss)

The following table sets forth information about the balance of accumulated other comprehensive loss at December 31, 2023, representing unrealized gains (losses) related to risk-management assets and liabilities, net of tax:

						Risk- Management Assets/Liabilities
						(Millions of dollars)
Commodity derivative instruments expected to be realized within the next 36 months (a)						$	63
Settled interest-rate swaps and Treasury locks to be recognized over the life of the long-term, fixed-rate debt (b)						(32)
Accumulated other comprehensive income at December 31, 2023						$	31

(a) - Based on commodity prices on December 31, 2023, we expect net gains of $63 million, net of tax, will be reclassified into earnings during the next 12 months. The remaining forecasted gains and losses have offsetting positions and are immaterial.

(b) - We expect net losses of $15 million, net of tax, will be reclassified into earnings during the next 12 months.

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,
						2023						2022						2021
						(Millions of dollars)
Commodity contracts						$	147					$	(85)					$	(323)
Interest-rate contracts						54						206						58
Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss)						$	201					$	121					$	(265)

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
												Years Ended December 31,
												2023						2022						2021
												(Millions of dollars)
Commodity contracts						Commodity sales revenues						$	201					$	(484)					$	(732)
						Cost of sales and fuel						(93)						257						474
Interest-rate contracts						Interest expense						(21)						(34)						(40)
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives												$	87					$	(261)					$	(298)

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