Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair value of assets and liabilities measured on recurring basis

The following tables present information (in millions) about our assets and liabilities recognized at their fair values in our balance sheets categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of September 30, 2023 and December 31, 2022.

We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.


	September 30, 2023
							Total Gross Fair Value		Effect of Counter- party Netting		Effect of Cash Collateral Netting		Net Carrying Value on Balance Sheet		Cash Collateral Paid or Received Not Offset
	Fair Value Hierarchy
	Level 1		Level 2		Level 3
Assets
Commodity derivative contracts	$	909	$	—	$	—	$	909	$	(907)	$	—	$	2	$	—



Foreign currency contracts	4		—		—		4		n/a		n/a		4		n/a
Investments of certain benefit plans	77		—		4		81		n/a		n/a		81		n/a
Investments in AFS debt securities	85		66		—		151		n/a		n/a		151		n/a
Total	$	1,075	$	66	$	4	$	1,145	$	(907)	$	—	$	238

Liabilities
Commodity derivative contracts	$	1,148	$	—	$	—	$	1,148	$	(907)	$	(241)	$	—	$	(141)
Blending program obligations	—		129		—		129		n/a		n/a		129		n/a
Physical purchase contracts	—		14		—		14		n/a		n/a		14		n/a



Total	$	1,148	$	143	$	—	$	1,291	$	(907)	$	(241)	$	143


	December 31, 2022
							Total Gross Fair Value		Effect of Counter- party Netting		Effect of Cash Collateral Netting		Net Carrying Value on Balance Sheet		Cash Collateral Paid or Received Not Offset
	Fair Value Hierarchy
	Level 1		Level 2		Level 3
Assets
Commodity derivative contracts	$	830	$	—	$	—	$	830	$	(705)	$	(8)	$	117	$	—
Physical purchase contracts	—		4		—		4		n/a		n/a		4		n/a

Investments of certain benefit plans	72		—		6		78		n/a		n/a		78		n/a
Investments in AFS debt securities	56		165		—		221		n/a		n/a		221		n/a
Total	$	958	$	169	$	6	$	1,133	$	(705)	$	(8)	$	420

Liabilities
Commodity derivative contracts	$	705	$	—	$	—	$	705	$	(705)	$	—	$	—	$	(149)
Blending program obligations	—		55		—		55		n/a		n/a		55		n/a
Physical purchase contracts	—		4		—		4		n/a		n/a		4		n/a
Foreign currency contracts	2		—		—		2		n/a		n/a		2		n/a
Total	$	707	$	59	$	—	$	766	$	(705)	$	—	$	61

The securities were reflected in the following balance sheet line items, depending on their original maturities when acquired (in millions):


	September 30, 2023						December 31, 2022
	Level 1		Level 2		Total		Level 1		Level 2		Total
Cash and cash equivalents	$	—	$	33	$	33	$	—	$	125	$	125
Prepaid expenses and other	85		33		118		56		40		96
Investments in AFS debt securities	$	85	$	66	$	151	$	56	$	165	$	221

Carrying amount and estimated fair value of financial instruments

The estimated fair values of cash and cash equivalents, receivables, payables, and operating and finance lease obligations approximate their carrying amounts; the carrying value and fair value of debt is shown in the table below (in millions).


		September 30, 2023				December 31, 2022
	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:
Debt (excluding finance lease obligations)	Level 2	$	9,150	$	8,549	$	9,241	$	8,902