Financial Instruments

3 Months Ended

Mar. 31, 2025

General Discussion of Derivative Instruments and Hedging Activities [Abstract]

Financial Instruments

13.  Financial Instruments

In the normal course of our business, we are exposed to commodity risks related to changes in the prices of crude oil and natural gas, as well as changes in interest rates and foreign currency values. Financial risk management activities include transactions designed to reduce risk in the selling prices of crude oil or natural gas we produce or reduce our exposure to foreign currency or interest rate movements. Generally, futures, swaps or option strategies may be used to fix the forward selling price, or establish a floor price or a range banded with a floor and ceiling price, for a portion of our crude oil or natural gas production. Such strategies are subject to certain limitations under the Merger Agreement. Forward contracts or swaps may also be used to purchase certain currencies in which we conduct business with the intent of reducing exposure to foreign currency fluctuations.

At March 31, 2025, we had foreign exchange forward contracts and swaps relating to the British Pound and Malaysian Ringgit. The notional amount of these outstanding foreign exchange forward contracts and swaps at March 31, 2025 and December 31, 2024 was $197 million and $189 million, respectively. The fair value of our foreign exchange forward contracts and swaps was an asset of less than $1 million at March 31, 2025 and December 31, 2024.

At March 31, 2025, our total long-term debt, which was substantially comprised of fixed-rate debt instruments, had a carrying value of $8,679 million and a fair value of $8,967 million based on Level 2 inputs in the fair value measurement hierarchy. We also have short-term financial instruments, primarily cash equivalents, accounts receivable and accounts payable, for which the carrying value approximated fair value at March 31, 2025 and December 31, 2024.