| Schedule of Fair Value of Derivative Assets and Liabilities and Effect of Counterparty Netting |
The carrying values and fair values by hierarchy of our financial assets and liabilities, either carried or disclosed at fair value, including any effects of counterparty and collateral netting, were:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | December 31, 2025 | | Fair Value Hierarchy | | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | | | Level 1 | | Level 2 | | Level 3 | | Commodity Derivative Assets | | | | | | | | | | | | | Exchange-cleared instruments | $ | 2,731 | | | — | | | — | | | 2,731 | | (2,660) | | — | | — | | 71 | | | | | | | | | | | | | | | Physical forward contracts | — | | | 69 | | | 4 | | | 73 | | (10) | | — | | — | | 63 | | | | | | | | | | | | | | | Rabbi trust assets | 144 | | | — | | | — | | | 144 | | N/A | N/A | — | | 144 | | | Investment in NOVONIX | 26 | | | — | | | — | | | 26 | | N/A | N/A | — | | 26 | | | | | | | | | | | | | | | $ | 2,901 | | | 69 | | | 4 | | | 2,974 | | (2,670) | | — | | — | | 304 | | | | | | | | | | | | | | | Commodity Derivative Liabilities | | | | | | | | | | | | | Exchange-cleared instruments | $ | 2,680 | | | — | | | — | | | 2,680 | | (2,660) | | (20) | | — | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Physical forward contracts | — | | | 30 | | | 1 | | | 31 | | (10) | | — | | — | | 21 | | | | | | | | | | | | | | | Floating-rate debt | — | | | 400 | | | — | | | 400 | | N/A | N/A | — | | 400 | | | Fixed-rate debt, excluding finance leases and software obligations | — | | | 18,324 | | | — | | | 18,324 | | N/A | N/A | 621 | | 18,945 | | | $ | 2,680 | | | 18,754 | | | 1 | | | 21,435 | | (2,670) | | (20) | | 621 | | 19,366 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | December 31, 2024 | | Fair Value Hierarchy | | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | | | Level 1 | | Level 2 | | Level 3 | | | Commodity Derivative Assets | | | | | | | | | | | | | Exchange-cleared instruments | $ | 2,137 | | | — | | | — | | | 2,137 | | (2,111) | | — | | — | | 26 | | | OTC instruments | — | | | 7 | | | — | | | 7 | | — | | — | | — | | 7 | | | Physical forward contracts | — | | | 70 | | | 3 | | | 73 | | (7) | | — | | — | | 66 | | | | | | | | | | | | | | | Rabbi trust assets | 153 | | | — | | | — | | | 153 | | N/A | N/A | — | | 153 | | | Investment in NOVONIX | 36 | | | — | | | — | | | 36 | | N/A | N/A | — | | 36 | | | Foreign currency derivative* | — | | | 67 | | | — | | | 67 | | N/A | N/A | — | | 67 | | | $ | 2,326 | | | 144 | | | 3 | | | 2,473 | | (2,118) | | — | | — | | 355 | | | | | | | | | | | | | | | Commodity Derivative Liabilities | | | | | | | | | | | | | Exchange-cleared instruments | $ | 2,173 | | | — | | | — | | | 2,173 | | (2,111) | | (62) | | — | | — | | | | | | | | | | | | | | | Physical forward contracts | — | | | 45 | | | 1 | | | 46 | | (7) | | — | | — | | 39 | | | Floating-rate debt | — | | | 1,760 | | | — | | | 1,760 | | N/A | N/A | — | | 1,760 | | | Fixed-rate debt, excluding finance leases and software obligations | — | | | 16,913 | | | — | | | 16,913 | | N/A | N/A | 1,020 | | 17,933 | | | $ | 2,173 | | | 18,718 | | | 1 | | | 20,892 | | (2,118) | | (62) | | 1,020 | | 19,732 | |
* Related to foreign currency derivative entered into in connection with the sale of Coop. See Note 9—Investments, Loans and Long-Term Receivables.
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