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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables.
| September 30, 2024
| Fair Value Hierarchy |  |  |  |  |  |
(Millions of dollars) | Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral(a) |  | Net Carrying Value on Balance Sheet(b) |  | Collateral Pledged Not Offset
Assets: |  |  |  |  |  |  |  |  |  |  |
Commodity contracts | $ | 302 |  |  | $ | 1 |  |  | $ | — |  |  | $ | (282) |  |  | $ | 21 |  |  | $ | 36 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Commodity contracts | $ | 295 |  |  | $ | — |  |  | $ | — |  |  | $ | (295) |  |  | $ | — |  |  | $ | — |
Embedded derivatives in commodity contracts | — |  |  | — |  |  | 69 |  |  | — |  |  | 69 |  |  | — |
| December 31, 2023
| Fair Value Hierarchy |  |  |  |  |  |
(Millions of dollars) | Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral(a) |  | Net Carrying Value on Balance Sheet(b) |  | Collateral Pledged Not Offset
Assets: |  |  |  |  |  |  |  |  |  |  |
Commodity contracts | $ | 244 |  |  | $ | — |  |  | $ | — |  |  | $ | (220) |  |  | $ | 24 |  |  | $ | 73 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Commodity contracts | $ | 249 |  |  | $ | — |  |  | $ | — |  |  | $ | (249) |  |  | $ | — |  |  | $ | — |
Embedded derivatives in commodity contracts | — |  |  | — |  |  | 61 |  |  | — |  |  | 61 |  |  | — |
(a)Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of September 30, 2024, cash collateral of $13 million was netted with mark-to-market derivative liabilities. As of December 31, 2023, cash collateral of $29 million was netted with mark-to-market derivative liabilities. (b)We have no derivative contracts which are subject to master netting arrangements reflected gross on the balance sheet.
Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3 | The following is a reconciliation of the beginning and ending balances recorded for net liabilities classified as Level 3 in the fair value hierarchy.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Millions of dollars) | 2024 |  | 2023 |  | 2024 |  | 2023
Beginning balance | $ | 69 |  |  | $ | 53 |  |  | $ | 61 |  |  | $ | 61 |
Unrealized and realized loss included in net income(a) | 3 |  |  | 10 |  |  | 18 |  |  | 7 |
Settlements of derivative instruments | (3) |  |  | (3) |  |  | (10) |  |  | (8) |
Ending balance | $ | 69 |  |  | $ | 60 |  |  | $ | 69 |  |  | $ | 60 |
The amount of total loss for the period included in earnings attributable to the change in unrealized loss relating to liabilities still held at the end of period(a): | $ | 3 |  |  | $ | 9 |  |  | $ | 15 |  |  | $ | 6 |
(a) The loss is included in cost of revenues on the consolidated statements of income.

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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