Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT, AND EQUIPMENT

6.    PROPERTY, PLANT, AND EQUIPMENT

Summary by Major Class

Major classes of property, plant, and equipment, including assets held under finance leases, consisted of the following (in millions):

	December 31,
	2024		2023
Land	$	500	$	505
Crude oil processing facilities	34,089		34,043
Transportation and terminaling facilities	6,013		5,978
Waste and renewable feedstocks processing facilities	3,616		3,243
Corn processing facilities	1,058		1,069
Administrative buildings	1,147		1,137
Finance lease ROU assets (see Note 5)	3,348		3,062
Other	1,993		1,942
Construction in progress	604		689
Property, plant, and equipment, at cost	52,368		51,668
Accumulated depreciation	(23,054)		(21,459)
Property, plant, and equipment, net	$	29,314	$	30,209

Depreciation expense for the years ended December 31, 2024, 2023, and 2022 was $1.9 billion, $1.9 billion, and $1.7 billion, respectively.

Asset Impairment

Our ethanol plant located in Lakota, Iowa (Lakota ethanol plant) was previously configured to produce a higher-grade ethanol product, as opposed to fuel-grade ethanol, suitable for hand sanitizer blending or industrial purposes that had a higher market value than fuel-grade ethanol. During 2022, demand for

higher-grade ethanol declined and had a negative impact on the profitability of the plant. As a result, we tested the recoverability of the carrying value of the Lakota ethanol plant and concluded that it was impaired. Therefore, we reduced the carrying value of the plant to its estimated fair value and recognized an asset impairment loss of $61 million for the year ended December 31, 2022. See Note 19 for disclosure related to the method used to determine fair value. During the third quarter of 2023, the Lakota ethanol plant resumed production of fuel-grade ethanol.

Sale of Ethanol Plant

In June 2022, we sold our ethanol plant in Jefferson, Wisconsin (Jefferson ethanol plant) for $32 million, which resulted in a gain of $23 million that is included in depreciation and amortization expense for the year ended December 31, 2022.