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RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables)
12 Months Ended
Dec. 31, 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 as of the dates indicated:
 December 31, 2022December 31, 2021
 Location in our Consolidated Balance SheetsAssets(Liabilities)Assets(Liabilities)
 
(Thousands of dollars)
Derivatives designated as hedging instruments
Commodity contracts (a)
Financial contracts (b)Other current assets$160,390 $(123,121)$204,161 $(303,740)
Other assets6,287 (1,205)— — 
Interest-rate contractsOther current assets/liabilities10,918  — (145,524)
Total derivatives designated as hedging instruments177,595 (124,326)204,161 (449,264)
Derivatives not designated as hedging instruments
Commodity contracts (a)
Financial contracts Other current assets558 (240)— — 
Total derivatives not designated as hedging instruments558 (240)— — 
Total derivatives$178,153 $(124,566)$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 December 31, 2021, our derivative net liability positions under master-netting arrangements for financial contracts were fully offset by cash collateral of $99.6 million.
Notional Amounts of Derivative Instruments The following table sets forth the notional quantities for derivative instruments held for the periods indicated:
December 31, 2022December 31, 2021
Contract
Type
Net Purchased/Payor
(Sold/Receiver)
Derivatives designated as hedging instruments:
Cash flow hedges
Fixed price
-Natural gas (Bcf)
Futures (39.3)(32.3)
-Crude oil and NGLs (MMBbl)
Futures(8.4)(10.0)
Basis
-Natural gas (Bcf)
Futures (39.3)(30.5)
Interest-rate contracts (Billions of dollars)
Swaps$0.4 $1.1 
Derivatives not designated as hedging instruments:
Fixed price
-Natural gas (Bcf)
Futures (0.1) 
-Crude oil and NGLs (MMBbl)
Futures0.1  
Basis
-Natural gas (Bcf)
Futures (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 (loss) for the periods indicated:
Years Ended December 31,
202220212020
 
(Thousands of dollars)
Commodity contracts$(84,807)$(322,648)$(5,699)
Interest-rate contracts206,172 57,884 (208,616)
Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss)$121,365 $(264,764)$(214,315)
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,
202220212020
  
(Thousands of dollars)
Commodity contractsCommodity sales revenues$(483,625)$(731,793)$85,436 
Cost of sales and fuel256,888 473,612 (19,170)
Interest-rate contracts (a)Interest expense(34,215)(39,952)(93,676)
Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives
$(260,952)$(298,133)$(27,410)
(a) - The year ended December 31, 2020, includes a loss of $48.3 million on the settlement of $1.3 billion of interest-rate swaps used to hedge our LIBOR-based interest payments.