v3.26.1
Revenues and Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
REVENUES AND SEGMENT INFORMATION
10.    REVENUES AND SEGMENT INFORMATION

Revenue from Contracts with Customers
Disaggregation of Revenue
Revenue is presented in the table below under “Segment Information” disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements.

Contract Balances
Contract balances were as follows (in millions):
June 30,
2026		December 31,
2025
Receivables from contracts with customers,
included in receivables, net
$8,112 $6,233 
Contract liabilities, included in accrued expenses102 60 

Remaining Performance Obligations
We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of June 30, 2026, we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations. See Note 2 for additional information regarding contractual obligations related to our Benicia Refinery.

Segment Information
We have three reportable segments—Refining, Renewable Diesel, and Ethanol. Each segment is a strategic business unit that offers different products and services by employing unique technologies and marketing strategies and whose operations and operating performance are managed and evaluated separately. Operating performance is measured based on the operating income (loss) generated by the segment, which includes revenues and expenses that are directly attributable to the management of the respective segment. Intersegment sales are generally derived from transactions made at prevailing market rates. The following is a description of each segment’s business operations.

•The Refining segment includes the operations of our petroleum refineries, the associated activities to market our refined petroleum products, and the logistics assets that support our refining operations. The principal products manufactured by our refineries and sold by this segment include gasolines and blendstocks, distillates, and other products.

•The Renewable Diesel segment includes the operations of DGD, a consolidated joint venture as discussed in Note 7, and the associated activities to market low-carbon fuels. The principal products manufactured by DGD and sold by this segment are renewable diesel, renewable naphtha, and neat SAF. This segment sells some renewable diesel and neat SAF to the Refining
segment for blending into petroleum-based diesel and conventional jet fuel, respectively, which are then sold to that segment’s customers as finished products.
•The Ethanol segment includes the operations of our ethanol plants and the associated activities to market our ethanol and co-products. The principal products manufactured by our ethanol plants are ethanol and distillers grains. This segment sells some ethanol to the Refining segment for blending into gasoline, which is sold to that segment’s customers as a finished gasoline product.

Operations that are not included in any of the reportable segments are included in the corporate and other category. As discussed in Note 2, effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reported within other corporate expenses.

Our chief operating decision maker (CODM) is our Chairman of the Board, Chief Executive Officer and President. Our CODM uses operating income (loss) by segment to allocate resources (including employees, property, and financial or capital resources) for each segment primarily during the annual budget process. On a monthly basis, our CODM considers budget-to-actual variances for operating income (loss) by segment when evaluating the operating performance of each segment.
The following tables reflect information about our reportable segments and include the reconciliation to our consolidated income before income tax expense (in millions):
RefiningRenewable
Diesel		EthanolTotal
Three months ended June 30, 2026
Revenues:
Revenues from external customers$42,300 $1,176 $1,000 $44,476 
Intersegment revenues2 1,506 311 1,819 
42,302 2,682 1,311 46,295 
Reconciliation of revenues by segment
to consolidated revenues
Elimination of intersegment revenues(1,819)
Total consolidated revenues$44,476 
Less:
Cost of sales:
Cost of materials and other (a)34,268 1,803 822 
Taxes other than income taxes1,648 — — 
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,263 91 152 
Depreciation and amortization expense635 71 19 
Total cost of sales37,814 1,965 993 
Other operating expenses18 — — 
Operating income by segment
$4,470 $717 $318 $5,505 
Reconciliation of operating income by segment
to income before income tax expense
Elimination of intersegment profits(54)
Unallocated amounts:
Other corporate expenses (b)(255)
Other income, net116 
Interest and debt expense, net of capitalized
interest
(145)
Income before income tax expense$5,167 
Other segment disclosures
Expenditures for long-lived assets (c)$320 $7 $11 $338 
________________________
See notes on page 24.
RefiningRenewable
Diesel		EthanolTotal
Three months ended June 30, 2025
Revenues:
Revenues from external customers$28,324 $565 $1,000 $29,889 
Intersegment revenues2 533 205 740 
28,326 1,098 1,205 30,629 
Reconciliation of revenues by segment
to consolidated revenues
Elimination of intersegment revenues(740)
Total consolidated revenues$29,889 
Less:
Cost of sales:
Cost of materials and other (a)23,388 1,044 988 
Taxes other than income taxes1,654 — — 
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,307 72 144 
Depreciation and amortization expense707 61 19 
Total cost of sales27,056 1,177 1,151 
Other operating expenses4 — — 
Operating income (loss) by segment
$1,266 $(79)$54 $1,241 
Reconciliation of operating income (loss) by segment
to income before income tax expense
Elimination of intersegment losses4 
Unallocated amounts:
Other corporate expenses (b)(248)
Other income, net86 
Interest and debt expense, net of capitalized
interest
(141)
Income before income tax expense$942 
Other segment disclosures
Expenditures for long-lived assets (c)$374 $14 $10 $398 
________________________
See notes on page 24.
RefiningRenewable
Diesel		EthanolTotal
Six months ended June 30, 2026
Revenues:
Revenues from external customers$73,105 $1,887 $1,865 $76,857 
Intersegment revenues4 2,209 613 2,826 
73,109 4,096 2,478 79,683 
Reconciliation of revenues by segment
to consolidated revenues
Elimination of intersegment revenues(2,826)
Total consolidated revenues$76,857 
Less:
Cost of sales:
Cost of materials and other (a)59,446 2,915 1,716 
Taxes other than income taxes3,369 — — 
Operating expenses (excluding depreciation
and amortization expense reflected below)
2,609 176 316 
Depreciation and amortization expense1,367 149 38 
Total cost of sales66,791 3,240 2,070 
Other operating expenses42 — — 
Operating income by segment
$6,276 $856 $408 $7,540 
Reconciliation of operating income by segment
to income before income tax expense
Elimination of intersegment profits(61)
Unallocated amounts:
Other corporate expenses (b)(552)
Other income, net248 
Interest and debt expense, net of capitalized
interest
(285)
Income before income tax expense$6,890 
Other segment disclosures
Segment assets$47,772 $6,270 $1,480 $55,522 
Expenditures for long-lived assets (c)722 40 18 780 
________________________
See notes on page 24.
RefiningRenewable
Diesel		EthanolTotal
Six months ended June 30, 2025
Revenues:
Revenues from external customers$57,081 $1,058 $2,008 $60,147 
Intersegment revenues4 940 422 1,366 
57,085 1,998 2,430 61,513 
Reconciliation of revenues by segment
to consolidated revenues
Elimination of intersegment revenues(1,366)
Total consolidated revenues$60,147 
Less:
Cost of sales:
Cost of materials and other (a)48,157 1,939 2,020 
Taxes other than income taxes3,154 — — 
Operating expenses (excluding depreciation
and amortization expense reflected below)
2,598 150 298 
Depreciation and amortization expense1,301 129 38 
Total cost of sales55,210 2,218 2,356 
Asset impairment loss1,131 — — 
Other operating expenses8 — — 
Operating income (loss) by segment
$736 $(220)$74 $590 
Reconciliation of operating income (loss) by segment
to income before income tax expense
Elimination of intersegment losses27 
Unallocated amounts:
Other corporate expenses (b)(520)
Other income, net206 
Interest and debt expense, net of capitalized
interest
(278)
Income before income tax expense$25 
Other segment disclosures
Segment assets$46,223 $5,402 $1,496 $53,121 
Expenditures for long-lived assets (c)907 109 18 1,034 
________________________
(a)Cost of materials and other is net of the clean fuel production credit on qualifying sales of certain low-carbon transportation fuels of $177 million and $140 million for the three months ended June 30, 2026 and 2025, respectively, and $355 million and $191 million for the six months ended June 30, 2026 and 2025, respectively, for our Renewable Diesel segment and $99 million and $119 million for the three and six months ended June 30, 2026, respectively, for our Ethanol segment.
(b)Other corporate expenses include general and administrative expenses and depreciation and amortization expense, as reflected in our consolidated statements of income on page 2. Effective in the second quarter of 2026, other corporate expenses also include expenses associated with the decommissioning and redevelopment of our Benicia Refinery.
(c)Total expenditures for long-lived assets include amounts related to capital expenditures and deferred turnaround and catalyst costs.
Total assets for reportable segments reconciled to our consolidated assets were as follows (in millions):
June 30,
2026		December 31,
2025
Total assets for reportable segments$55,522 $51,316 
Corporate assets9,828 6,938 
Elimination of intercompany receivables and other assets
(687)(266)
Total consolidated assets$64,663 $57,988 

Expenditures for long-lived assets for reportable segments reconciled to our consolidated expenditures for long-lived assets were as follows (in millions):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Expenditures for long-lived assets for
reportable segments
$338 $398 $780 $1,034 
Corporate expenditures for
long-lived assets
12 9 18 32 
Total consolidated expenditures for
long-lived assets
$350 $407 $798 $1,066 

The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Refining:
Gasolines and blendstocks
$17,417 $12,721 $29,848 $25,095 
Distillates
20,688 12,778 36,149 26,154 
Other product revenues
4,195 2,825 7,108 5,832 
Total Refining revenues42,300 28,324 73,105 57,081 
Renewable Diesel:
Renewable diesel
1,057 470 1,623 861 
Renewable naphtha39 46 76 85 
Neat SAF80 49 188 112 
Total Renewable Diesel revenues1,176 565 1,887 1,058 
Ethanol:
Ethanol
789 780 1,465 1,567 
Distillers grains
211 220 400 441 
Total Ethanol revenues1,000 1,000 1,865 2,008 
Revenues$44,476 $29,889 $76,857 $60,147 
As of June 30, 2026 and December 31, 2025, our investments in nonconsolidated joint ventures accounted for under the equity method were $680 million and $684 million, respectively, all of which related to the Refining segment and are reflected in “deferred charges and other assets, net” in our balance sheets.