FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Recurring Fair Value Measurements

The following tables set forth our recurring fair value measurements for the periods indicated:

	June 30, 2022
	Level 1		Level 2		Level 3		Total - Gross		Netting (a)		Total - Net
	(Thousands of dollars)
Derivative assets
Commodity contracts
Financial contracts	$	14,226	$	130,446	$	19,529	$	164,201	$	(164,201)	$	—
Interest-rate contracts	—		24,223		—		24,223		—		24,223
Total derivative assets	$	14,226	$	154,669	$	19,529	$	188,424	$	(164,201)	$	24,223
Derivative liabilities
Commodity contracts
Financial contracts	$	(104,080)	$	(80,143)	$	(129,925)	$	(314,148)	$	314,148	$	—
Interest-rate contracts	—		(25,455)		—		(25,455)		—		(25,455)
Total derivative liabilities	$	(104,080)	$	(105,598)	$	(129,925)	$	(339,603)	$	314,148	$	(25,455)

(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 June 30, 2022, we held no cash and posted $287.8 million of cash with various counterparties, including $149.9 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $137.9 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				Six Months Ended
	June 30,				June 30,
Derivative Assets (Liabilities)	2022		2021		2022		2021
	(Thousands of dollars)
Net liabilities at beginning of period	$	(189,831)	$	(41,794)	$	(114,283)	$	(31,321)
Total changes in fair value:
Settlements included in net income (a)	56,782		17,731		59,699		26,852
New Level 3 derivatives included in other comprehensive income (loss) (b)	9,430		(20,262)		9,442		(68,237)
Unrealized change included in other comprehensive income (loss) (b)	13,223		(77,425)		(65,254)		(49,044)
Net liabilities at end of period	$	(110,396)	$	(121,750)	$	(110,396)	$	(121,750)

(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.