Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2026

Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2026 and December 31, 2025 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables.


	September 30, 2026
	Fair Value Hierarchy
(In millions)	Level 1		Level 2		Level 3		Netting and Collateral(a)		Net Carrying Value on Balance Sheet(b)		Collateral Pledged Not Offset
Assets:
Commodity contracts	$	2,208	$	—	$	—	$	(2,083)	$	125	$	15
Liabilities:
Commodity contracts	$	2,301	$	1,941	$	9	$	(2,301)	$	1,950	$	—
Embedded derivatives in commodity contracts	—		—		53		—		53		—
Contingent consideration	—		—		238		—		238		—


	December 31, 2025
	Fair Value Hierarchy
(In millions)	Level 1		Level 2		Level 3		Netting and Collateral(a)		Net Carrying Value on Balance Sheet(b)		Collateral Pledged Not Offset
Assets:
Commodity contracts	$	243	$	—	$	—	$	(226)	$	17	$	10
Liabilities:
Commodity contracts	$	236	$	—	$	—	$	(236)	$	—	$	—
Embedded derivatives in commodity contracts	—		—		41		—		41		—
Contingent consideration	—		—		236		—		236		—

(a)Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of September 30, 2026, there was $218 million of cash collateral netted with mark-to-market derivative liabilities. As of December 31, 2025, cash collateral of $10 million was netted with mark-to-market derivative liabilities.

(b)We have no derivative contracts which are subject to master netting arrangements reflected gross on the balance sheet.

Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3

The following is a reconciliation of the beginning and ending balances recorded for net liabilities classified as Level 3 in the fair value hierarchy.


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2026		2025		2026		2025
Beginning balance	$	289	$	55	$	277	$	58
Contingent consideration(a)	—		234		—		234
Unrealized and realized (gain)/loss included in net income(b)	15		(2)		32		1
Settlements of derivative instruments	(4)		(2)		(9)		(8)
Ending balance	$	300	$	285	$	300	$	285

The amount of total (gain)/loss for the period included in earnings attributable to the change in unrealized (gain)/loss relating to liabilities still held at the end of period(b):	$	12	$	(2)	$	28	$	1

(a) Liability recorded in the third quarter of 2025 related to the BANGL Acquisition earnout provision.

(b) (Gain)/loss on derivatives embedded in commodity contracts are included in Cost of revenues on the Consolidated Statements of Income.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details