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Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Commodity Price Risk Management
Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in the price of crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps, collar contracts, forward contracts and futures contracts to mitigate price exposure with respect to our inventory positions, natural gas purchases, sales prices of refined products and crude oil costs.

Foreign Currency Risk Management
We are exposed to market risk related to the volatility in foreign currency exchange rates. We periodically enter into derivative contracts in the form of foreign exchange forward contracts to mitigate the exposure associated with fluctuations on intercompany notes with our foreign subsidiaries that are not denominated in the U.S. dollar.

Accounting Hedges
We periodically have swap contracts to lock in basis spread differentials on forecasted purchases of crude oil and forward sales contracts that lock in the prices of future sales of crude oil and refined product. These contracts have been designated as accounting hedges and are measured at fair value with offsetting adjustments (gains/losses) recorded directly to other comprehensive income. These fair value adjustments are later reclassified to earnings as the hedging instruments mature.

We recognized a nominal amount of unrealized loss in accumulated other comprehensive income and a nominal amount of realized loss reclassified from accumulated other comprehensive income into earnings during each of the three and six months ended June 30, 2025 and 2024.

Economic Hedges
We periodically have commodity contracts, including certain futures contracts based on NYMEX pricing, to lock in prices on forecasted inventory purchases and sales. We periodically have basis swap contracts to mitigate exposure to natural gas price volatility. We periodically have forward purchase and sale contracts to lock in basis spread differentials on forecasted crude oil and refined products purchases, and forward purchase or sale price of crude oil and refined products. We periodically use collar contracts to mitigate exposure to natural gas price volatility; these contracts serve as economic hedges (derivatives used for risk management but not designated as accounting hedges). We also have forward currency contracts to fix the rate of foreign currency. In addition, our precious metals catalyst financing arrangements discussed in Note 11 could require repayment under certain conditions based on the future pricing of platinum, which is an embedded derivative. These contracts are measured at fair value with offsetting adjustments (gains/losses) recorded directly to earnings.

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

Gain (Loss) Recognized in Earnings
Statement of Income Classification
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In millions)
Derivatives not designated as hedging instruments:
Commodity contractsCost of materials and other$14 $2 $11 $(19)
Operating expenses— (2)— (2)
Interest expense(10)(4)(15)(1)
Foreign currency contractsOther income (expense), net(18)4 (18)14 
Total$(14)$— $(22)$(8)
As of June 30, 2025, we have the following notional amounts related to outstanding derivative instruments:
Notional Contract Volumes
by Year of Maturity
Total Outstanding Notional20252026Unit of Measure
Derivatives not designated as hedging instruments:
NYMEX futures (WTI) - short970,000970,000—Barrels
Forward crude oil contracts - long640,000460,000180,000Barrels
Forward crude oil contracts - short
368,000368,000—Barrels
Foreign currency forward contracts522,000,000240,589,800281,410,200
Canadian dollar
Forward commodity contracts (platinum)34,6287,48727,141Troy ounces

The following tables present the fair value and the locations of our outstanding derivative instruments in the consolidated balance sheets. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

Derivatives in Net Asset PositionDerivatives in Net Liability Position
Gross AssetsGross Liabilities Offset in Balance SheetNet Assets Recognized in Balance SheetGross LiabilitiesGross Assets Offset in Balance SheetNet Liabilities Recognized in Balance Sheet
 
(In millions)
June 30, 2025
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts$1 $— $1 $— $— $— 
Commodity forward contracts - long
2 — 2 — — — 
Commodity forward contracts - short
— — — 1 — 1 
Foreign currency forward contracts— — — 10 — 10 
$3 $— $3 $11 $— $11 
Total net balance$3 $11 
Balance sheet classification:Prepayments and other$3 Accrued liabilities$11 

Derivatives in Net Asset PositionDerivatives in Net Liability Position
Gross AssetsGross Liabilities Offset in Balance SheetNet Assets Recognized in Balance SheetGross LiabilitiesGross Assets Offset in Balance SheetNet Liabilities Recognized in Balance Sheet
 (In millions)
December 31, 2024
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts$— $— $— $1 $— $1 
Commodity forward contracts - long
1 — 1 1 — 1 
Foreign currency forward contracts18 — 18 — — — 
$19 $— $19 $2 $— $2 
Total net balance$19 $2 
Balance sheet classification:Prepayments and other$19 Accrued liabilities$2