| Schedule of Fair Value Hierarchy for Material Financial Instruments and Derivative Assets and Liabilities, Including the Effect of Counterparty Netting |
The carrying values and fair values by hierarchy of our financial assets and liabilities, either carried or disclosed at fair value, including any effects of counterparty and collateral netting, were:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | June 30, 2025 | | Fair Value Hierarchy | | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | | | | Level 1 | | Level 2 | | Level 3 | | Commodity Derivative Assets | | | | | | | | | | | | | | Exchange-cleared instruments | $ | 4,827 | | | — | | | — | | | 4,827 | | (4,730) | | — | | — | | 97 | | | | | | | | | | | | | | | | | Physical forward contracts | — | | | 119 | | | 5 | | | 124 | | (11) | | — | | — | | 113 | | | | | | | | | | | | | | | | | Rabbi trust assets | 143 | | | — | | | — | | | 143 | | N/A | N/A | — | | 143 | | | | Investment in NOVONIX | 23 | | | — | | | — | | | 23 | | N/A | N/A | — | | 23 | | | | | | | | | | | | | | | | | $ | 4,993 | | | 119 | | | 5 | | | 5,117 | | (4,741) | | — | | — | | 376 | | | | | | | | | | | | | | | | | Commodity Derivative Liabilities | | | | | | | | | | | | | | Exchange-cleared instruments | $ | 4,800 | | | — | | | — | | | 4,800 | | (4,730) | | (70) | | — | | — | | | | | | | | | | | | | | | | | Physical forward contracts | — | | | 137 | | | 1 | | | 138 | | (11) | | — | | — | | 127 | | | | Foreign currency derivative | — | | | 89 | | | — | | | 89 | | — | | — | | — | | 89 | | | | Floating-rate debt | — | | | 3,196 | | | — | | | 3,196 | | N/A | N/A | — | | 3,196 | | | | Fixed-rate debt, excluding finance leases and software obligations | — | | | 16,446 | | | — | | | 16,446 | | N/A | N/A | 915 | | 17,361 | | | | $ | 4,800 | | | 19,868 | | | 1 | | | 24,669 | | (4,741) | | (70) | | 915 | | 20,773 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | December 31, 2024 | | Fair Value Hierarchy | | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | | | | Level 1 | | Level 2 | | Level 3 | | | Commodity Derivative Assets | | | | | | | | | | | | | | Exchange-cleared instruments | $ | 2,137 | | | — | | | — | | | 2,137 | | (2,111) | | — | | — | | 26 | | | | OTC instruments | — | | | 7 | | | — | | | 7 | | — | | — | | — | | 7 | | | | Physical forward contracts | — | | | 70 | | | 3 | | | 73 | | (7) | | — | | — | | 66 | | | | | | | | | | | | | | | | | Rabbi trust assets | 153 | | | — | | | — | | | 153 | | N/A | N/A | — | | 153 | | | | Investment in NOVONIX | 36 | | | — | | | — | | | 36 | | N/A | N/A | — | | 36 | | | | Foreign currency derivative | — | | | 67 | | | — | | | 67 | | N/A | N/A | — | | 67 | | | | $ | 2,326 | | | 144 | | | 3 | | | 2,473 | | (2,118) | | — | | — | | 355 | | | | | | | | | | | | | | | | | Commodity Derivative Liabilities | | | | | | | | | | | | | | Exchange-cleared instruments | $ | 2,173 | | | — | | | — | | | 2,173 | | (2,111) | | (62) | | — | | — | | | | | | | | | | | | | | | | | Physical forward contracts | — | | | 45 | | | 1 | | | 46 | | (7) | | — | | — | | 39 | | | | | | | | | | | | | | | | | Floating-rate debt | — | | | 1,760 | | | — | | | 1,760 | | N/A | N/A | — | | 1,760 | | | | Fixed-rate debt, excluding finance leases and software obligations | — | | | 16,913 | | | — | | | 16,913 | | N/A | N/A | 1,020 | | 17,933 | | | | $ | 2,173 | | | 18,718 | | | 1 | | | 20,892 | | (2,118) | | (62) | | 1,020 | | 19,732 | | |
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