| Financial Instruments |
The estimated fair value of financial instruments and derivatives at June 30, 2025 and December 31, 2024, and the related hierarchy level for the fair value measurement was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | | | | | | | | | | Fair Value | | | | | | (millions of dollars) | Level 1 | Level 2 | Level 3 | Total Gross Assets
& Liabilities | Effect of
Counterparty Netting | Effect of
Collateral
Netting | Difference in Carrying Value and Fair Value | Net
Carrying
Value | | Assets | | | | | | | | | Derivative assets (1) | 8,022 | | 1,423 | | — | | 9,445 | | (8,585) | | (62) | | — | | 798 | | | | | | | | | | | Advances to/receivables from equity companies (2)(6) | — | | 2,458 | | 4,290 | | 6,748 | | — | | — | | 325 | | 7,073 | | Other long-term financial assets (3) | 1,517 | | — | | 1,538 | | 3,055 | | — | | — | | 214 | | 3,269 | | | | | | | | | | | | Liabilities | | | | | | | | | Derivative liabilities (4) | 8,271 | | 1,271 | | — | | 9,542 | | (8,585) | | (311) | | — | | 646 | | | | | | | | | | | Long-term debt (5) | 25,560 | | 2,517 | | — | | 28,077 | | — | | — | | 3,374 | | 31,451 | | | | | | | | | | | Long-term obligations to equity companies (6) | — | | — | | 1,156 | | 1,156 | | — | | — | | (43) | | 1,113 | | Other long-term financial liabilities (7) | — | | — | | 404 | | 404 | | — | | — | | 56 | | 460 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | | | | | | | | | | Fair Value | | | | | | (millions of dollars) | Level 1 | Level 2 | Level 3 | Total Gross Assets
& Liabilities | Effect of
Counterparty Netting | Effect of
Collateral
Netting | Difference in Carrying Value and Fair Value | Net
Carrying
Value | | Assets | | | | | | | | | Derivative assets (1) | 3,223 | | 1,206 | | — | | 4,429 | | (3,913) | | (3) | | — | | 513 | | | | | | | | | | | Advances to/receivables from equity companies (2)(6) | — | | 2,466 | | 4,167 | | 6,633 | | — | | — | | 451 | | 7,084 | | Other long-term financial assets (3) | 1,468 | | — | | 1,504 | | 2,972 | | — | | — | | 247 | | 3,219 | | | | | | | | | | | | Liabilities | | | | | | | | | Derivative liabilities (4) | 3,561 | | 1,416 | | — | | 4,977 | | (3,913) | | (341) | | — | | 723 | | | | | | | | | | | Long-term debt (5) | 28,884 | | 1,813 | | — | | 30,697 | | — | | — | | 3,935 | | 34,632 | | | | | | | | | | | Long-term obligations to equity companies (6) | — | | — | | 1,393 | | 1,393 | | — | | — | | (47) | | 1,346 | | Other long-term financial liabilities (7) | — | | — | | 583 | | 583 | | — | | — | | 57 | | 640 | |
| | | (1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net. | (2) Included in the Balance Sheet line: Investments, advances and long-term receivables. | (3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net. | (4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations. | (5) Excluding finance lease obligations. | (6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the equity company. | (7) Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates. |
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