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Leases
 12 Months Ended
Dec. 31, 2024
Lessee Disclosure [Abstract]  
Leases Leases
The Corporation and its consolidated affiliates generally purchase the property, plant and equipment used in operations, but there are situations where assets are leased, primarily for drilling equipment, tankers, office buildings, railcars, and other moveable equipment. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for drilling equipment, tankers, and finance leases is excluded from the calculation of right of use assets and lease liabilities. Generally, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations, assets are leased for nearly all of their useful lives and are accounted for as finance leases.
Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to leases, and transactions with related parties are also not significant. In general, leases are capitalized using the incremental borrowing rate of the leasing affiliate. The Corporation’s activities as a lessor are not significant.
Lease Cost
(millions of dollars)
Operating LeasesFinance Leases
202420232022202420232022
 
Operating lease cost2,296 1,976 1,776 
Short-term and other (net of sublease rental income)2,047 1,563 1,389 
Amortization of right of use assets140 107 243 
Interest on lease liabilities149 140 210 
Total (1)
4,343 3,539 3,165 289 247 453 
(1) Includes $1,195 million, $999 million, and $908 million for drilling rigs and related equipment operating leases in 2024, 2023, and 2022, respectively.

Balance Sheet
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Right of use assets    
Included in Other assets, including intangibles - net7,123 6,849 
Included in Property, plant and equipment - net2,888 2,712 
Total right of use assets7,123 6,849 2,888 2,712 
Lease liability due within one year
Included in Accounts payable and accrued liabilities1,852 1,617 6 5 
Included in Notes and loans payable117 95 
Long-term lease liability
Included in Other long-term obligations4,626 4,393 
Included in Long-term debt2,123 1,821 
Included in Long-term obligations to equity companies115 121 
Total lease liability (2)
6,478 6,010 2,361 2,042 
Weighted-average remaining lease term (years)781826
Weighted-average discount rate (percent)4.9%3.9%6.4%7.2%
(2) Includes $2,198 million and $2,032 million for drilling rigs and related equipment operating leases in 2024 and 2023, respectively.

 
Maturity Analysis of Lease Liabilities
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2024
20252,119 275 
20261,569 274 
20271,134 265 
2028715 263 
2029305 256 
2030 and beyond1,712 2,450 
Total lease payments7,554 3,783 
Discount to present value(1,076)(1,422)
Total lease liability6,478 2,361 
 
In addition to the lease liabilities in the table immediately above, at December 31, 2024, undiscounted commitments for leases not yet commenced totaled $3,938 million for operating leases and $1,957 million for finance leases. Estimated cash payments for operating and finance leases not yet commenced are $248 million and $341 million for 2025 and 2026, respectively. Operating leases not yet commenced primarily relate to LNG transportation vessels. Finance leases not yet commenced primarily relate to a long-term processing agreement to upgrade residue to hydrogen. The underlying assets are primarily designed by, and are being constructed by, the lessors.

Other Information
(millions of dollars)
Operating LeasesFinance Leases
202420232022202420232022
Cash paid for amounts included in the measurement of lease liabilities
Cash flows from operating activities1,301 1,135 1,119 20 20 20 
Cash flows from investing activities837 758 500 
Cash flows from financing activities121 86 149 
Noncash right of use assets recorded for lease liabilities
In exchange for lease liabilities during the period2,074 2,161 1,997 109 529 73 
Leases Leases
The Corporation and its consolidated affiliates generally purchase the property, plant and equipment used in operations, but there are situations where assets are leased, primarily for drilling equipment, tankers, office buildings, railcars, and other moveable equipment. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for drilling equipment, tankers, and finance leases is excluded from the calculation of right of use assets and lease liabilities. Generally, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations, assets are leased for nearly all of their useful lives and are accounted for as finance leases.
Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to leases, and transactions with related parties are also not significant. In general, leases are capitalized using the incremental borrowing rate of the leasing affiliate. The Corporation’s activities as a lessor are not significant.
Lease Cost
(millions of dollars)
Operating LeasesFinance Leases
202420232022202420232022
 
Operating lease cost2,296 1,976 1,776 
Short-term and other (net of sublease rental income)2,047 1,563 1,389 
Amortization of right of use assets140 107 243 
Interest on lease liabilities149 140 210 
Total (1)
4,343 3,539 3,165 289 247 453 
(1) Includes $1,195 million, $999 million, and $908 million for drilling rigs and related equipment operating leases in 2024, 2023, and 2022, respectively.

Balance Sheet
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Right of use assets    
Included in Other assets, including intangibles - net7,123 6,849 
Included in Property, plant and equipment - net2,888 2,712 
Total right of use assets7,123 6,849 2,888 2,712 
Lease liability due within one year
Included in Accounts payable and accrued liabilities1,852 1,617 6 5 
Included in Notes and loans payable117 95 
Long-term lease liability
Included in Other long-term obligations4,626 4,393 
Included in Long-term debt2,123 1,821 
Included in Long-term obligations to equity companies115 121 
Total lease liability (2)
6,478 6,010 2,361 2,042 
Weighted-average remaining lease term (years)781826
Weighted-average discount rate (percent)4.9%3.9%6.4%7.2%
(2) Includes $2,198 million and $2,032 million for drilling rigs and related equipment operating leases in 2024 and 2023, respectively.

 
Maturity Analysis of Lease Liabilities
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2024
20252,119 275 
20261,569 274 
20271,134 265 
2028715 263 
2029305 256 
2030 and beyond1,712 2,450 
Total lease payments7,554 3,783 
Discount to present value(1,076)(1,422)
Total lease liability6,478 2,361 
 
In addition to the lease liabilities in the table immediately above, at December 31, 2024, undiscounted commitments for leases not yet commenced totaled $3,938 million for operating leases and $1,957 million for finance leases. Estimated cash payments for operating and finance leases not yet commenced are $248 million and $341 million for 2025 and 2026, respectively. Operating leases not yet commenced primarily relate to LNG transportation vessels. Finance leases not yet commenced primarily relate to a long-term processing agreement to upgrade residue to hydrogen. The underlying assets are primarily designed by, and are being constructed by, the lessors.

Other Information
(millions of dollars)
Operating LeasesFinance Leases
202420232022202420232022
Cash paid for amounts included in the measurement of lease liabilities
Cash flows from operating activities1,301 1,135 1,119 20 20 20 
Cash flows from investing activities837 758 500 
Cash flows from financing activities121 86 149 
Noncash right of use assets recorded for lease liabilities
In exchange for lease liabilities during the period2,074 2,161 1,997 109 529 73