XML 41 R19.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Financial and Derivative Instruments | 12 Months Ended
--- | ---
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial and Derivative Instruments | Financial and Derivative Instruments Derivative Commodity Instruments The company’s derivative commodity instruments principally include crude oil, natural gas, liquefied natural gas and refined product futures, swaps, options, and forward contracts. The company applies cash flow hedge accounting to certain commodity transactions, where appropriate, to manage the market price risk associated with forecasted sales of crude oil. The company’s derivatives are not material to the company’s financial position, results of operations or liquidity. The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodity derivative activities. The company uses derivative commodity instruments traded on the New York Mercantile Exchange and on electronic platforms of the Inter-Continental Exchange and Chicago Mercantile Exchange. In addition, the company enters into swap contracts and option contracts principally with major financial institutions and other oil and gas companies in the “over-the-counter” markets, which are governed by International Swaps and Derivatives Association agreements and other master netting arrangements. Depending on the nature of the derivative transactions, bilateral collateral arrangements may also be required. Derivative instruments measured at fair value at December 31, 2023, 2022 and 2021, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows: Consolidated Balance Sheet: Fair Value of Derivatives
|  |  |  |  | At December 31
Type of Contract | Balance Sheet Classification | 2023 |  |  | 2022
Commodity | Accounts and notes receivable | $ | 151 |  |  |  | $ | 175 |
Commodity | Long-term receivables, net | 8 |  |  |  | 9 |
Total assets at fair value | $ | 159 |  |  |  | $ | 184 |
Commodity | Accounts payable | $ | 216 |  |  |  | $ | 46 |
Commodity | Deferred credits and other noncurrent obligations | 46 |  |  |  | 12 |
Total liabilities at fair value | $ | 262 |  |  |  | $ | 58 |
Consolidated Statement of Income: The Effect of Derivatives
|  | Gain/(Loss)
Type of Derivative | Statement of | Year ended December 31
Contract | Income Classification | 2023 |  |  | 2022 |  | 2021
Commodity | Sales and other operating revenues | $ | (304) |  |  |  | $ | (651) |  |  | $ | (685) |
Commodity | Purchased crude oil and products | (154) |  |  |  | (226) |  |  | (64) |
Commodity | Other income (loss) | (47) |  |  |  | 10 |  |  | (46) |
|  | $ | (505) |  |  |  | $ | (867) |  |  | $ | (795) |
The amount reclassified from AOCL to “Sales and other operating revenues” from designated hedges was a decrease of $33 in 2023, compared with an increase of $80 in the prior year. At December 31, 2023, before-tax deferred gains in AOCL related to outstanding crude oil price hedging contracts were $7, all of which is expected to be reclassified into earnings during the next 12 months as the hedged crude oil sales are recognized in earnings. The table below represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at December 31, 2023 and 2022. Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities
|  | Gross Amounts Recognized |  | Gross Amounts Offset |  | Net Amounts Presented |  | Gross Amounts Not Offset |  | Net Amounts
At December 31, 2023 |  |  |  |  |
Derivative Assets - not designated |  | $ | 2,394 |  |  | $ | 2,242 |  |  | $ | 152 |  |  | $ | 4 |  |  | $ | 148 |
Derivative Assets - designated |  | $ | 8 |  |  | $ | 1 |  |  | $ | 7 |  |  | $ | — |  |  | $ | 7 |
Derivative Liabilities - not designated |  | $ | 2,504 |  |  | $ | 2,242 |  |  | $ | 262 |  |  | $ | 15 |  |  | $ | 247 |
Derivative Liabilities - designated |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
At December 31, 2022 |  |  |  |  |  |  |  |  |  |
Derivative Assets - not designated |  | $ | 2,591 |  |  | $ | 2,407 |  |  | $ | 184 |  |  | $ | 5 |  |  | $ | 179 |
Derivative Assets - designated |  | $ | 8 |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative Liabilities - not designated |  | $ | 2,450 |  |  | $ | 2,407 |  |  | $ | 43 |  |  | $ | — |  |  | $ | 43 |
Derivative Liabilities - designated |  | $ | 23 |  |  | $ | 8 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 15 |
Derivative assets and liabilities are classified on the Consolidated Balance Sheet as “Accounts and notes receivable,” “Long-term receivables,” “Accounts payable,” and “Deferred credits and other noncurrent obligations.” Amounts not offset on the Consolidated Balance Sheet represent positions that do not meet all the conditions for “a right of offset.” Concentrations of Credit Risk The company’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash equivalents, marketable securities, derivative financial instruments and trade receivables. The company’s short-term investments are placed with a wide array of financial institutions with high credit ratings. Company investment policies limit the company’s exposure both to credit risk and to concentrations of credit risk. Similar policies on diversification and creditworthiness are applied to the company’s counterparties in derivative instruments. For a discussion of credit risk on trade receivables, see Note 28 Financial Instruments - Credit Losses.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration