Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Crude Oil Derivative Contracts

At September 30, 2022, volumes per day associated with outstanding crude oil derivative contracts and the weighted average prices for these contracts are as follows:

	2022
NYMEX WTI swap contracts:
Volume per day (Bbl):	20,000
Price per Bbl:	$	44.88
NYMEX WTI collar contracts:
Volume per day (Bbl):	25,000
Price per Bbl:
Average Ceiling:	$	75.20
Average Floor:	$	63.24

Fair Value of Derivative Instruments Not Designated as Hedging Instruments

At September 30, 2022 and December 31, 2021, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.

(Thousands of dollars)	Asset (Liability) Derivatives Fair Value
Type of Derivative Contract	Balance Sheet Location	September 30, 2022		December 31, 2021
Commodity swaps	Accounts payable	$	(84,933)	(239,882)
Commodity collars	Accounts payable	(20,954)		(19,533)
Commodity collars	Accounts receivable	—		4,280

Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments

For the three-month and nine-month periods ended September 30, 2022 and 2021, the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table.

		Gain (Loss)			Gain (Loss)
(Thousands of dollars)	Statement of Operations Location	Three Months Ended September 30,			Nine Months Ended September 30,
Type of Derivative Contract		2022		2021	2022		2021
Commodity swaps	Gain (Loss) on derivative instruments	$	50,089	(43,235)	$	(152,822)	(483,865)
Commodity collars	Gain (Loss) on derivative instruments	65,102		(15,929)	(155,832)		(15,929)

Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis

The carrying value of assets and liabilities recorded at fair value on a recurring basis at September 30, 2022 and December 31, 2021, are presented in the following table.

	September 30, 2022					December 31, 2021
(Thousands of dollars)	Level 1		Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets:
Commodity collars	$	—	—	—	—	—	4,280	—	4,280
	$	—	—	—	—	—	4,280	—	4,280
Liabilities:
Commodity swaps	$	—	84,933	—	84,933	—	239,882	—	239,882
Commodity collars	—		20,954	—	20,954	—	19,533	—	19,533
Contingent consideration	—		—	212,860	212,860	—	—	196,151	196,151
Nonqualified employee savings plan	15,642		—	—	15,642	16,962	—	—	16,962
	$	15,642	105,887	212,860	334,389	16,962	259,415	196,151	472,528