v2.4.0.6
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES (Tables)
3 Months Ended
Mar. 31, 2012
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Text Block]
The fair values of our derivative instruments included in our consolidated balance sheets were as follows:
 
 
 
Asset Derivatives
 
Liability Derivatives
 
Balance Sheet Location
 
March 31, 2012
 
December 31, 2011
 
March 31, 2012
 
December 31, 2011
 
 
 
(Thousands of Dollars)
Derivatives Designated as
Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
$

 
$
36,116

 
$

 
$
(33,616
)
Commodity contracts
Other long-term assets, net
 
25,634

 
86,052

 
(20,257
)
 
(66,175
)
Interest rate swaps
Other long-term assets, net
 
581

 
2,335

 

 

Commodity contracts
Accrued liabilities
 
640

 

 
(24,286
)
 

Interest rate swaps
Accrued liabilities
 

 

 
(9,796
)
 
(22,009
)
Commodity contracts
Other long-term liabilities
 

 

 
(5,665
)
 

Interest rate swaps
Other long-term liabilities
 

 

 
(11,221
)
 
(27,190
)
Total
 
 
26,855

 
124,503

 
(71,225
)
 
(148,990
)
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated
as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
30,863

 
15,568

 
(8,654
)
 
(5,956
)
Commodity contracts
Other long-term assets, net
 

 
7,207

 

 

Commodity contracts
Accrued liabilities
 
21,831

 
519

 
(36,377
)
 
(5,943
)
Commodity contracts
Other long-term liabilities
 

 

 
(874
)
 

Total
 
 
52,694

 
23,294

 
(45,905
)
 
(11,899
)
 
 
 
 
 
 
 
 
 
 
Total Derivatives
 
 
$
79,549

 
$
147,797

 
$
(117,130
)
 
$
(160,889
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block]
The earnings impact of our derivative activity was as follows:
Derivatives Designated as Fair Value Hedging Instruments
 
Income Statement
Location
 
Amount of Gain
(Loss) Recognized
in Income on
Derivative
(Effective Portion)
 
Amount of  Gain
(Loss)
Recognized in
Income on
Hedged Item
 
Amount of Gain
(Loss) Recognized
in Income  on
Derivative
(Ineffective Portion)
 
 
 
 
(Thousands of Dollars)
Three months ended March 31, 2012:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
2,228

 
$
(2,228
)
 
$

Commodity contracts
 
Cost of product sales
 
(2,587
)
 
2,390

 
(197
)
Total
 
 
 
$
(359
)
 
$
162

 
$
(197
)
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2011:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
(5,914
)
 
$
5,960

 
$
46

Commodity contracts
 
Cost of product sales
 
(12,066
)
 
12,370

 
304

Total
 
 
 
$
(17,980
)
 
$
18,330

 
$
350

 
Derivatives Designated as Cash Flow Hedging Instruments
 
Amount of Gain
(Loss) Recognized in
OCI on Derivative
(Effective Portion)
 
Income Statement
Location (a)
 
Amount of Gain
(Loss) Reclassified
from
Accumulated OCI
into  Income
(Effective Portion)
 
Amount of Gain
(Loss) Recognized
in Income  on
Derivative
(Ineffective Portion)
 
 
(Thousands of Dollars)
 
 
 
(Thousands of Dollars)
Three months ended March 31, 2012:
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
3,298

 
Interest expense, net
 
$
(423
)
 
$

Commodity contracts
 
(57,121
)
 
Cost of product sales
 
(7,344
)
 
4,010

Total
 
$
(53,823
)
 
 
 
$
(7,767
)
 
$
4,010

 
 
 
 
 
 
 
 
 
Three months ended March 31, 2011:
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
2,878

 
Interest expense, net
 
$

 
$

(a)
Amounts are included in specified location for both the gain (loss) reclassified from accumulated other comprehensive income (OCI) into income (effective portion) and the gain (loss) recognized in income on derivative (ineffective portion).
Derivatives Not Designated as Hedging Instruments
 
Income Statement
Location
 
Amount of Gain (Loss)
Recognized in Income
 
 
 
 
(Thousands of Dollars)
Three months ended March 31, 2012:
 
 
 
 
Commodity contracts
 
Revenues
 
$
510

Commodity contracts
 
Cost of product sales
 
(4,318
)
 
 
 
 
$
(3,808
)
 
 
 
 
 
Three months ended March 31, 2011:
 
 
 
 
Commodity contracts
 
Revenues
 
$
264

Commodity contracts
 
Cost of product sales
 
(15,629
)
Commodity contracts
 
Operating expenses
 
46

 
 
 
 
$
(15,319
)