v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The three levels of the fair value hierarchy of inputs the company uses to measure the fair value of an asset or liability are described as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the company, Level 1 inputs include exchange-traded futures contracts for which the parties are willing to transact at the exchange-quoted price and marketable securities that are actively traded.
Level 2: Inputs other than Level 1 that are observable, either directly or indirectly. For the company, Level 2 inputs include quoted prices for similar assets or liabilities, prices obtained through third-party broker quotes and prices that can be corroborated with other observable inputs for substantially the complete term of a contract.
Level 3: Unobservable inputs. The company does not use Level 3 inputs for any of its recurring fair value measurements. Level 3 inputs may be required for the determination of fair value associated with certain nonrecurring measurements of nonfinancial assets and liabilities.
The fair value hierarchy for assets and liabilities measured at fair value at June 30, 2025, and December 31, 2024, is as follows:
Assets and Liabilities Measured at Fair Value on a Recurring Basis
At June 30,
2025		At December 31,
2024
(Millions of dollars)
 TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Derivatives - not designated$194 $172 $22 $— $137 $127 $10 $— 
Derivatives - designated6 6 — — — — — — 
   Total Assets at Fair Value $200 $178 $22 $— $137 $127 $10 $— 
Derivatives - not designated257 180 77 — 136 47 89 — 
Derivatives - designated— — — — 17 17 — — 
   Total Liabilities at Fair Value$257 $180 $77 $— $153 $64 $89 $— 
Derivatives The company records most of its derivative instruments — other than any commodity derivative contracts that are accounted for as normal purchase and normal sale — on the Consolidated Balance Sheet at fair value, with the offsetting amount to the Consolidated Statement of Income. The company designates certain derivative instruments as cash flow hedges that, if applicable, are reflected in the table above. Derivatives classified as Level 1 include futures, swaps and options contracts valued using quoted prices from active markets such as the New York Mercantile Exchange. Derivatives classified as Level 2 include swaps, options and forward contracts, the fair values of which are obtained from third-party broker quotes, industry pricing services, and exchanges. The company obtains multiple sources of pricing information for the Level 2 instruments. Since this pricing information is generated from observable market data, it has historically been very consistent. The company does not materially adjust this information.
Assets and liabilities carried at fair value at June 30, 2025, and December 31, 2024, are as follows:
Cash and Cash Equivalents The company holds cash equivalents in U.S. and non-U.S. portfolios. The instruments classified as cash equivalents are primarily bank deposits with maturities of 90 days or less, and money market funds. “Cash and cash equivalents” had carrying/fair values of $4.1 billion and $6.8 billion at June 30, 2025, and December 31, 2024, respectively. The fair values of cash and cash equivalents are classified as Level 1 and reflect the cash that would have been received if the instruments were settled at June 30, 2025.
Restricted Cash had a carrying/fair value of $1.3 billion and $1.5 billion at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, restricted cash is classified as Level 1 and includes primarily restricted funds related to certain upstream decommissioning activities, a tax-deferred transaction and financing programs that are reported in “Prepaid expenses and other current assets” and “Deferred charges and other assets” on the Consolidated Balance Sheet.
Investments in Hess Common Stock are classified as Level 1, had a fair value of $2.1 billion at June 30, 2025, and are reflected in the “Investments and advances” line on the Consolidated Balance Sheet. During second quarter 2025 and for the six months ended June 30, 2025, the company recognized a fair value loss of $327 million and $95 million, respectively, in “Other income (loss)” on the Consolidated Statement of Income. The fair value of the Hess stock was $2.3 billion at the close of market on July 17, 2025, the day before Chevron completed the acquisition of Hess, and the company will recognize a gain of $160 million on the investment in the third quarter. In the aggregate, the company will recognize a gain of $65 million on this investment in 2025.
Long-Term Debt excluding amounts reclassified from short-term debt and finance lease obligations had a net carrying value of $14.0 billion and $10.8 billion at June 30, 2025, and December 31, 2024, respectively. Long-term debt primarily includes corporate issued bonds. The fair value of these obligations was $13.3 billion and $9.8 billion at June 30, 2025, and December 31, 2024, respectively. At June 30, 2025, the fair value of these obligations classified as Level 1 is $12.8 billion and Level 2 is $495 million.
The carrying values of other short-term financial assets and liabilities on the Consolidated Balance Sheet approximate their fair values. Fair value remeasurements of other financial instruments at June 30, 2025, and December 31, 2024, were not material.
Properties, plant and equipment The company did not have any individually material impairments of long- lived assets measured at fair value on a nonrecurring basis to report in second quarter 2025.
Investments and advances The company did not have any individually material impairments of investments and advances measured at fair value on a nonrecurring basis to report in second quarter 2025.