Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the condensed

consolidated balance sheets, approximates fair value due to the short maturities of these instruments.

The carrying amount and fair value of our total debt is as follows:

	September 30, 2025				December 31, 2024
Millions of dollars	Level 1	Level 2	Total fair value	Carrying value	Level 1	Level 2	Total fair value	Carrying value
Total debt	$7,166	$361	$7,527	$7,539	$4,503	$2,825	$7,328	$7,541

In the first nine months of 2025, the total fair value of our debt increased as a result of lower yields.Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for

identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the

fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are

determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data

points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences

between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third-

party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.

Credit riskWe have entered into CDSs with third-party financial institutions that had an aggregate notional amount outstanding as

of September 30, 2025 of $750 million, compared to an aggregate notional amount outstanding as of December 31, 2024 of

$739 million, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which a

portion of the proceeds were then utilized by this customer to pay certain of our outstanding receivables. Approximately $550

million of the outstanding amount of the CDSs reduces monthly over its remaining 12-month term and $107 million reduces

monthly over its remaining 9-month term. The remaining $93 million outstanding amount reduces monthly over its remaining

5-month term.

The fair value of the derivative liabilities was not material to our financial condition as of September 30, 2025.