
Property, Plant, and Equipment (millions of dollars)	December 31, 2025		December 31, 2024
	Cost	Net	Cost	Net

Upstream	436,018	228,235	423,038	226,021
Energy Products	60,261	29,547	58,259	28,349
Chemical Products	39,594	20,053	39,224	19,973
Specialty Products	8,820	4,333	9,559	4,229
Other	25,366	17,205	23,823	15,746
Total	570,059	299,373	553,903	294,318

In 2025, the Corporation identified situations where events or changes in circumstances indicated that the carrying value of certain long-lived assets may not be recoverable and conducted impairment assessments. The Corporation recognized before-tax impairment charges of $1.6 billion in Upstream, $0.1 billion in Chemical Products, and $0.3 billion in Other.

In 2023, the Corporation recognized before-tax impairment charges of $3.3 billion, in large part due to impairing the idled Upstream Santa Ynez Unit assets and associated facilities in California, reflecting the continuing challenges in the state regulatory environment that impeded progress in restoring operations. Other before-tax impairment charges recognized during 2023 included $0.3 billion in Upstream, $0.3 billion in Chemical Products, and $0.1 billion in Specialty Products.

Impairment charges are primarily recognized in the lines “Depreciation and depletion” and “Exploration expenses, including dry holes” on the Consolidated Statement of Income. Accumulated depreciation and depletion totaled $270,686 million at the end of 2025 and $259,585 million at the end of 2024.

The Corporation incurs retirement obligations for certain assets. The fair values of these obligations are recorded as liabilities on a discounted basis, which is typically at the time the assets are installed. In the estimation of fair value, the Corporation uses assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements, discount rates, and inflation rates. Asset retirement obligations incurred in the current period were level 3 fair value measurements. The costs associated with these liabilities are capitalized as part of the related assets and depreciated as the reserves are produced. Over time, the liabilities are accreted for the change in their present value.

Asset retirement obligations for facilities in the Product Solutions business generally become firm at the time a decision is made to permanently shut down and dismantle the facilities. These obligations may include the costs of asset disposal and additional soil remediation. However, these sites generally have indeterminate lives based on plans for continued operations and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations.


(millions of dollars)	2025	2024	2023

Balance at January 1	12,032	12,989	10,491
Accretion expense and other provisions	623	709	734
Reduction due to property sales	(927)	(1,445)	(288)
Payments made	(1,289)	(1,191)	(693)
Liabilities incurred	539	728	985
Foreign currency translation	386	(447)	124
Revisions	1,154	689	1,636
Balance at December 31	12,518	12,032	12,989

The long-term Asset Retirement Obligations were $11.3 billion and $10.9 billion at December 31, 2025 and 2024, respectively, and are included in “Other long-term obligations” on the Consolidated Balance Sheet. Estimated cash payments in 2026 and 2027 are $1.3 billion and $1.5 billion, respectively.