LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

LEASE COMMITMENTS

NOTE 6 - LEASE COMMITMENTS

Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. The Company assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. The Company uses its incremental borrowing rate at commencement date to determine the present value of lease payments. The Company separates lease and non-lease components for drilling rigs and vessels. The Company does not separate lease and non-lease components for the remainder of asset classes as the non-lease portions are not significant.

The Company has operating leases from continuing operations for drilling rigs of $273 million, office space of $251 million, vessels of $191 million, compressors of $130 million and $110 million of other assets. Operating leases related to discontinued operations of $211 million are included in liabilities held for sale.

The Company’s finance leases from continuing operations include compressors of $428 million, assets related to DAC operations of $292 million, office space of $208 million and $71 million of other assets. Finance leases related to discontinued operations of $47 million are included in liabilities held for sale. Property, plant and equipment included $972 million of finance lease assets as of December 31, 2025.

The following summarizes maturities of lease liabilities related to continuing operations as of December 31, 2025:

millions	Operating Leases (a)		Finance Leases (b)		Total
2026	$	387	$	248	$	635
2027	289		226		515
2028	190		188		378
2029	58		152		210
2030	44		136		180
Thereafter	68		226		294
Total lease payments	1,036		1,176		2,212
Less: Discount	(81)		(177)		(258)
Total lease liabilities	$	955	$	999	$	1,954

(a)The weighted-average remaining lease term is 3.5 years and the weighted-average discount rate is 4.94%.

(b)The weighted-average remaining lease term is 5 years and the weighted-average discount rate is 5.07%.

The following tables present the Company’s total lease cost and other information for operating and finance lease liabilities related to continuing operations for the years ended December 31:

millions	2025		2024
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	188	$	152
Interest on lease liabilities	40		36
Operating lease cost	486		459
Short-term lease cost	384		342
Total lease cost	$	1,098	$	989
millions	2025		2024
Cash payments related to leases
Operating cash flows from finance leases	$	40	$	34
Operating cash flows from operating leases	$	295	$	240
Investing cash flows from operating leases	$	192	$	209
Financing cash flows from finance leases	$	177	$	137
Changes in Right-of-Use assets
Right-of-use assets obtained in relation to new finance lease liabilities	$	395	$	195
Right-of-use assets obtained in relation to new operating lease liabilities	$	617	$	280

LEASE COMMITMENTS

NOTE 6 - LEASE COMMITMENTS

Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. The Company assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. The Company uses its incremental borrowing rate at commencement date to determine the present value of lease payments. The Company separates lease and non-lease components for drilling rigs and vessels. The Company does not separate lease and non-lease components for the remainder of asset classes as the non-lease portions are not significant.

The Company has operating leases from continuing operations for drilling rigs of $273 million, office space of $251 million, vessels of $191 million, compressors of $130 million and $110 million of other assets. Operating leases related to discontinued operations of $211 million are included in liabilities held for sale.

The Company’s finance leases from continuing operations include compressors of $428 million, assets related to DAC operations of $292 million, office space of $208 million and $71 million of other assets. Finance leases related to discontinued operations of $47 million are included in liabilities held for sale. Property, plant and equipment included $972 million of finance lease assets as of December 31, 2025.

The following summarizes maturities of lease liabilities related to continuing operations as of December 31, 2025:

millions	Operating Leases (a)		Finance Leases (b)		Total
2026	$	387	$	248	$	635
2027	289		226		515
2028	190		188		378
2029	58		152		210
2030	44		136		180
Thereafter	68		226		294
Total lease payments	1,036		1,176		2,212
Less: Discount	(81)		(177)		(258)
Total lease liabilities	$	955	$	999	$	1,954

(a)The weighted-average remaining lease term is 3.5 years and the weighted-average discount rate is 4.94%.

(b)The weighted-average remaining lease term is 5 years and the weighted-average discount rate is 5.07%.

The following tables present the Company’s total lease cost and other information for operating and finance lease liabilities related to continuing operations for the years ended December 31:

millions	2025		2024
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	188	$	152
Interest on lease liabilities	40		36
Operating lease cost	486		459
Short-term lease cost	384		342
Total lease cost	$	1,098	$	989
millions	2025		2024
Cash payments related to leases
Operating cash flows from finance leases	$	40	$	34
Operating cash flows from operating leases	$	295	$	240
Investing cash flows from operating leases	$	192	$	209
Financing cash flows from finance leases	$	177	$	137
Changes in Right-of-Use assets
Right-of-use assets obtained in relation to new finance lease liabilities	$	395	$	195
Right-of-use assets obtained in relation to new operating lease liabilities	$	617	$	280