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Derivatives
6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives DERIVATIVES
For further information regarding the fair value measurement of derivative instruments, including any effect of master netting agreements or collateral, see Note 15. We do not designate any of our commodity derivative instruments as hedges for accounting purposes.
Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil, (4) the acquisition of ethanol for blending with refined products, (5) the sale of NGLs and (6) the purchase of natural gas.
The following table presents the fair value of derivative instruments as of June 30, 2020 and December 31, 2019 and the line items in the balance sheets in which the fair values are reflected. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under the terms of our master netting arrangements including cash collateral on deposit with, or received from, brokers. We offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. As a result, the asset and liability amounts below will not agree with the amounts presented in our consolidated balance sheets.
(In millions)
June 30, 2020
Balance Sheet Location
Asset
 
Liability
Commodity derivatives
 
 
 
Other current assets
$
263

 
$
358

Other current liabilities(a)

 
3

Deferred credits and other liabilities(a)

 
48

(In millions)
December 31, 2019
Balance Sheet Location
Asset
 
Liability
Commodity derivatives
 
 
 
Other current assets
$
63

 
$
106

Other current liabilities(a)

 
5

Deferred credits and other liabilities(a)

 
55

(a)  
Includes embedded derivatives.
The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of June 30, 2020. 
 
Percentage of contracts that expire next quarter
 
Position
(Units in thousands of barrels)
 
Long
 
Short
Exchange-traded(a)
 
 
 
 
 
Crude oil
94.3%
 
46,032

 
43,019

Refined products
85.3%
 
24,489

 
18,100

Blending products
86.0%
 
1,067

 
2,842

(a) 
Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 6,425 long and 2,875 short; Refined products - 1,525 long and 225 short
The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: 
 
Gain (Loss)
(In millions)
Three Months Ended 
June 30,
 
Six Months Ended 
June 30,
Income Statement Location
2020
 
2019
 
2020
 
2019
Sales and other operating revenues
$
(7
)
 
$
3

 
$
77

 
$
(17
)
Cost of revenues
(105
)
 
15

 
26

 
(65
)
Total
$
(112
)
 
$
18

 
$
103

 
$
(82
)