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Financial Instruments And Derivatives
 12 Months Ended
Dec. 31, 2024
Financial Instruments And Derivatives [Abstract]  
Financial Instruments And Derivatives Financial Instruments and Derivatives
The estimated fair value of financial instruments and derivatives at December 31, 2024, and December 31, 2023, and the related hierarchy level for the fair value measurement was as follows:
 December 31, 2024
 
Fair Value    
(millions of dollars)Level 1Level 2Level 3Total Gross Assets & LiabilitiesEffect of Counterparty NettingEffect of Collateral NettingDifference in Carrying Value and Fair ValueNet Carrying Value
Assets        
Derivative assets (1)
3,223 1,206 — 4,429 (3,913)(3)— 513 
Advances to/receivables from equity
companies (2)(6)
— 2,466 4,167 6,633 — — 451 7,084 
Other long-term financial assets (3)
1,468 — 1,504 2,972 — — 247 3,219 
Liabilities
Derivative liabilities (4)
3,561 1,416 — 4,977 (3,913)(341)— 723 
Long-term debt (5)
28,884 1,813 — 30,697 — — 3,935 34,632 
Long-term obligations to equity companies (6)
— — 1,393 1,393 — — (47)1,346 
Other long-term financial liabilities (7)
— — 583 583 — — 57 640 
 December 31, 2023
 Fair Value    
(millions of dollars)Level 1Level 2Level 3Total Gross Assets & LiabilitiesEffect of Counterparty NettingEffect of Collateral NettingDifference in Carrying Value and Fair ValueNet Carrying Value
Assets        
Derivative assets (1)
4,544 1,731 — 6,275 (5,177)(528)— 570 
Advances to/receivables from equity
companies (2)(6)
— 2,517 4,491 7,008 — — 519 7,527 
Other long-term financial assets (3)
1,389 — 944 2,333 — — 202 2,535 
Liabilities
Derivative liabilities (4)
4,056 1,608 — 5,664 (5,177)(40)— 447 
Long-term debt (5)
30,556 2,004 — 32,560 — — 3,102 35,662 
Long-term obligations to equity companies (6)
— — 1,896 1,896 — — (92)1,804 
Other long-term financial liabilities (7)
— — 697 697 — — 45 742 
(1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net.
(2) Included in the Balance Sheet line: Investments, advances and long-term receivables.
(3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net.
(4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations.
(5) Excluding finance lease obligations.
(6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the equity company.
(7) Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

At December 31, 2024, and December 31, 2023, respectively, the Corporation had $491 million and $800 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.
Derivative Instruments. The Corporation’s size, strong capital structure, geographic diversity, and the complementary nature of its business segments reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates, and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue” and in the Consolidated Statement of Cash Flows in “Cash Flows from Operating Activities”. The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of December 31, 2024 and 2023, or results of operations for 2024, 2023, and 2022.
During the fourth quarter of 2024, the Corporation initiated a program to hedge certain of its fixed-rate debt instruments against changes in fair value due to changes in the designated benchmark interest rate. This program utilizes fair value hedge accounting. The derivative (hedging) instruments are fixed-for-floating interest rate swaps, with settlement dates that correspond to the interest payments associated with the fixed-rate debt (hedged item). Changes in the fair values of the hedging instruments are perfectly offset by changes in the fair values of the hedged items; the effects of these changes in fair values are recorded in "Interest expense" in the Consolidated Statement of Income. This program was not material to the Consolidated Financial Statements. The Corporation intends to expand the use of this program in future periods.
Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls that includes the authorization, reporting, and monitoring of derivative activity.
The net notional long/(short) position of derivative instruments at December 31, 2024, and December 31, 2023, was as follows:
(millions)December 31,December 31,
20242023
Crude oil (barrels)13 (7)
Petroleum products (barrels)(32)(43)
Natural gas (MMBTUs)(675)(560)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are included in the following lines on a before-tax basis:
(millions of dollars)202420232022
Sales and other operating revenue(661)986 (1,763)
Crude oil and product purchases3 79 314 
Total(658)1,065 (1,449)