XML 34 R22.htm IDEA: XBRL DOCUMENT
v3.25.1

Financial and Derivative Instruments | 3 Months Ended
--- | ---
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial and Derivative Instruments | Financial and Derivative Instruments The company’s commodity derivative 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 consolidated 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 commodities and other derivatives activities. The company uses commodity derivative 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. Derivative instruments measured at fair value at March 31, 2025, and December 31, 2024, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows:
Consolidated Balance Sheet: Fair Value of Derivatives
Type of |  |  |  | At March 31, 2025 |  | At December 31, 2024
Contract |  | Balance Sheet Classification |  | (Millions of dollars)
Commodity |  | Accounts and notes receivable, net |  | $ | 55 |  |  | $ | 122 |
Commodity |  | Long-term receivables, net |  | 44 |  |  | 15 |
Total Assets at Fair Value |  | $ | 99 |  |  | $ | 137 |
Commodity |  | Accounts payable |  | $ | 241 |  |  | $ | 127 |
Commodity |  | Deferred credits and other noncurrent obligations |  | 1 |  |  | 26 |
Total Liabilities at Fair Value |  | $ | 242 |  |  | $ | 153 |
Consolidated Statement of Income: The Effect of Derivatives
|  |  |  | Gain / (Loss) Three Months Ended March 31 |  |
Type of |  |  |  | 2025 |  | 2024 |  |  |  |
Contract |  | Statement of Income Classification |  | (Millions of dollars)
Commodity |  | Sales and other operating revenues |  | $ | (144) |  |  | $ | (158) |  |  |  |  |
Commodity |  | Purchased crude oil and products |  | (44) |  |  | (64) |  |  |  |  |
Commodity |  | Other income (loss) |  | (6) |  |  | 13 |  |  |  |  |
|  | $ | (194) |  |  | $ | (209) |  |  |  |  |
The amount reclassified from AOCL to “Sales and other operating revenues” from designated hedges for the first quarter of 2025 was a loss of $17 million compared with a gain of $7 million in the same period of the prior year. At March 31, 2025, before-tax deferred losses in AOCL related to outstanding crude oil price hedging contracts were $23 million, of which all is expected to be reclassified into earnings during the next 12 months as the hedged crude oil sales are recognized in earnings. The following table represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at March 31, 2025, and December 31, 2024.
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 Amount
At March 31, 2025 |  | (Millions of dollars)
Derivative Assets - not designated |  | $ | 2,597 |  |  | $ | 2,498 |  |  | $ | 99 |  |  | $ | 7 |  |  | $ | 92 |
Derivative Assets - designated |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative Liabilities - not designated |  | $ | 2,717 |  |  | $ | 2,498 |  |  | $ | 219 |  |  | $ | 7 |  |  | $ | 212 |
Derivative Liabilities - designated |  | $ | 24 |  |  | $ | 1 |  |  | $ | 23 |  |  | $ | — |  |  | $ | 23 |
At December 31, 2024 |  |  |  |  |  |  |  |  |  |
Derivative Assets - not designated |  | $ | 1,895 |  |  | $ | 1,758 |  |  | $ | 137 |  |  | $ | 3 |  |  | $ | 134 |
Derivative Assets - designated |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative Liabilities - not designated |  | $ | 1,894 |  |  | $ | 1,758 |  |  | $ | 136 |  |  | $ | 2 |  |  | $ | 134 |
Derivative Liabilities - designated |  | $ | 17 |  |  | $ | — |  |  | $ | 17 |  |  | $ | — |  |  | $ | 17 |
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.”

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