v3.25.2
Fair Value Measurement (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Hierarchy for Gross Financial Assets and Liabilities
The following table summarizes the fair value hierarchy for gross financial assets and liabilities (i.e., unadjusted where the right of setoff exists for commodity derivatives accounted for at fair value on a recurring basis):
Millions of Dollars
June 30, 2025December 31, 2024
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets
Investments in debt securities
$244 1,341 — 1,585 261 1,290 — 1,551 
Commodity derivatives
301 251 31 583 201 252 35 488 
Total assets
$545 1,592 31 2,168 462 1,542 35 2,039 
Liabilities
Commodity derivatives$333 173 52 558 275 160 45 480 
Contingent consideration— — 99 99 — — 145 145 
Total liabilities
$333 173 151 657 275 160 190 625 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The range and arithmetic average of the significant unobservable input used in the Level 3 fair value measurement was as follows:
Fair Value
(Millions of
Dollars)		Valuation
Technique		Unobservable
Input
Range
(Arithmetic Average)
Contingent consideration - Surmont as of:
June 30, 2025
$99 Discounted cash flowCommodity price outlook* ($/BOE)
$48.66 - $61.12 ($52.75)
December 31, 2024
145 
$48.63 - $57.53 ($53.38)
*Commodity price outlook based on a combination of external pricing service companies' outlooks and our internal outlook.
Schedule of Commodity Derivative Balances Subject to Right of Setoff
The following table summarizes those commodity derivative balances subject to the right of setoff as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of setoff exists.
Millions of Dollars
Amounts Subject to Right of Setoff
Gross
Amounts
Recognized
Amounts Not
Subject to
Right of Setoff
Gross
Amounts
Gross
Amounts
Offset
Net
Amounts
Presented
Cash
Collateral
Net
Amounts
June 30, 2025
Assets$583 1 582 401 181 — 181 
Liabilities558 1 557 401 156 33 123 
December 31, 2024
Assets$488 — 488 278 210 — 210 
Liabilities480 — 480 278 202 73 129 
Schedule of Net Fair Value of Financial Instruments
The following table summarizes the net fair value of financial instruments (i.e., adjusted where the right of setoff exists for commodity derivatives):
Millions of Dollars
Carrying Amount
Fair Value
June 30
2025		December 31
2024		June 30
2025		December 31
2024
Financial Assets
Commodity derivatives
$182 210 182 210 
Investments in debt securities
1,585 1,551 1,585 1,551 
Financial Liabilities
Total debt, excluding finance leases
22,663 23,384 22,447 22,997 
Commodity derivatives
124 129 124 129