Leases (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Lease Expenses, Term and Discount Rate

Expenses related to finance and operating leases (both short-term and long-term) included in the Consolidated Financial Statements are as follows.


		Year Ended December 31,
(Thousands of dollars)	Financial Statements Category	2025		2024
Operating lease 1, 2	Lease operating expenses	$	342,520	$	411,303
Operating lease 2	Transportation, gathering and processing	8,308		16,117
Operating lease 2	Selling and general expenses	10,405		10,990
Operating lease 2	Other operating expense	467		6,622
Operating lease 2	Exploration expenses	14,335		38,974

Operating lease 2	Property, plant and equipment	175,400		277,170
Operating lease 2	Asset retirement obligations	85,690		10
Finance lease
Amortization of asset	Depreciation, depletion and amortization	1,026		855
Interest on lease liabilities	Interest expense, net	229		193
Sublease income	Other income	(240)		(1,143)
Net lease expense		$	638,140	$	761,091

1 Variable lease expenses. For the years ended December 31, 2025 and 2024, included variable lease expenses of $34.6 million and $42.3 million, respectively, primarily related to operating costs at a natural gas processing plant in our Canada Onshore business.

2 Short-term leases due within 12 months. The table below shows amounts included in the Consolidated Financial Statements related to short-term leases due within 12 months. These expenses primarily related to drilling rigs and other oil and natural gas field equipment.


(Thousands of dollars)	Year Ended December 31,
Financial Statements Category	2025		2024
Lease operating expenses	$	159,746	$	236,402
Transportation, gathering and processing	8,308		12,993
Selling and general expenses	1,918		772
Other operating expense	16		6,230
Exploration expenses	13,211		38,500

Property, plant and equipment	96,909		97,104
Asset retirement obligations	65,418		10
Total short-term lease expense	$	345,526	$	392,011

Schedule of Maturity of Operating Leases

Maturity of Lease Liabilities


(Thousands of dollars)	Operating Leases		Finance Leases		Total
2026	$	315,609	$	3,302	$	318,911
2027	146,130		3,302		149,432
2028	63,009		3,302		66,311
2029	60,214		2,491		62,705
2030	58,445		1,885		60,330
Remaining	366,321		774		367,095
Total future minimum lease payments	1,009,728		15,056		1,024,784
Less imputed interest	(193,121)		(2,402)		(195,523)
Present value of lease liabilities 1	$	816,607	$	12,654	$	829,261

1 Includes both the current and long-term portion of the lease liabilities.

Schedule of Maturity of Finance Leases

Maturity of Lease Liabilities


(Thousands of dollars)	Operating Leases		Finance Leases		Total
2026	$	315,609	$	3,302	$	318,911
2027	146,130		3,302		149,432
2028	63,009		3,302		66,311
2029	60,214		2,491		62,705
2030	58,445		1,885		60,330
Remaining	366,321		774		367,095
Total future minimum lease payments	1,009,728		15,056		1,024,784
Less imputed interest	(193,121)		(2,402)		(195,523)
Present value of lease liabilities 1	$	816,607	$	12,654	$	829,261

1 Includes both the current and long-term portion of the lease liabilities.

Schedule of Other Lease Information

Lease Term and Discount Rate


	December 31, 2025		December 31, 2024
Weighted average remaining lease term:
Operating leases	7 years		8 years
Finance leases	5 years		6 years
Weighted average discount rate:
Operating leases	5.5	%	5.7	%
Finance leases	5.4	%	4.9	%

Other Information


	Year Ended December 31,
(Thousands of dollars)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	258,564	$	328,847
Operating cash flows from finance leases	339		311
Financing cash flows from finance leases	1,238		665
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases ¹	$	247,566	$	349,312
Finance leases 2	8,845		1,749

1 For the year ended December 31, 2025, right-of-use assets, obtained in exchange for operating lease liabilities, primarily included $153.7 million for a drill ship operating lease extension used in our U.S. Offshore business and $72.2 million for a drilling rig and two support vessels in our Vietnam business. December 31, 2024 included $254.1 million for a drill ship operating lease extension in our U.S. Offshore business and $52.7 million related to two drilling rigs and several natural gas compressors in our U.S. Onshore business.

2 For the year ended December 31, 2025, right-of-use assets obtained in exchange for finance lease liabilities primarily included $8.8 million related to computing equipment in the U.S.