v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Lessee Disclosure [Abstract]  
Leases
Note 13. Leases
The Corporation and its consolidated affiliates generally purchase the property, plant, and equipment used in operations, but there are situations where assets are leased, primarily for drilling equipment, tankers, office buildings, railcars, and other moveable equipment. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for drilling equipment, tankers, and finance leases is excluded from the calculation of right of use assets and lease liabilities. Generally, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations, assets are leased for nearly all of their useful lives and are accounted for as finance leases.
Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, covenants related to leases, and transactions with related parties are also not significant. In general, leases are capitalized using the incremental borrowing rate of the leasing affiliate. The Corporation’s activities as a lessor are not significant.
Lease Cost
(millions of dollars)
Operating LeasesFinance Leases
202520242023202520242023
 
Operating lease cost2,450 2,296 1,976 
Short-term and other (net of sublease rental income)1,490 2,047 1,563 
Amortization of right of use assets161 140 107 
Interest on lease liabilities167 149 140 
Total (1)
3,940 4,343 3,539 328 289 247 
(1) Includes $984 million, $1,195 million, and $999 million for drilling rigs and related equipment operating leases in 2025, 2024, and 2023, respectively.

Balance Sheet
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Right of use assets    
Included in Other assets, including intangibles - net7,224 7,123 
Included in Property, plant, and equipment - net3,284 2,888 
Total right of use assets7,224 7,123 3,284 2,888 
Lease liability due within one year
Included in Accounts payable and accrued liabilities1,942 1,852 7 6 
Included in Notes and loans payable137 117 
Long-term lease liability
Included in Other long-term obligations4,892 4,626 
Included in Long-term debt2,406 2,123 
Included in Long-term obligations to equity companies109 115 
Total lease liability (2)
6,834 6,478 2,659 2,361 
Weighted-average remaining lease term (years)871718
Weighted-average discount rate (percent)4.7 %4.9 %8.1 %6.4 %
(2) Includes $1,691 million and $2,198 million for drilling rigs and related equipment operating leases in 2025 and 2024, respectively.

 
Maturity Analysis of Lease Liabilities
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2025
20262,189 362 
20271,609 351 
20281,042 348 
2029502 341 
2030402 335 
2031 and beyond2,237 3,128 
Total lease payments7,981 4,865 
Discount to present value(1,147)(2,206)
Total lease liability6,834 2,659 
In addition to the lease liabilities in the table immediately above, at December 31, 2025, undiscounted commitments for leases not yet commenced totaled $3.0 billion for operating leases and $0.8 billion for finance leases. Estimated cash payments for operating and finance leases not yet commenced are $0.2 billion and $0.3 billion for 2026 and 2027 respectively. Operating leases not yet commenced primarily relate to LNG transportation vessels.
Other Information
(millions of dollars)
Operating LeasesFinance Leases
202520242023202520242023
Cash paid for amounts included in the measurement of lease liabilities
Cash flows from operating activities1,522 1,301 1,135 20 20 20 
Cash flows from investing activities868 837 758 
Cash flows from financing activities140 121 86 
Noncash right of use assets recorded for lease liabilities
In exchange for lease liabilities during the period2,310 2,074 2,161 403 109 529 
Leases
Note 13. Leases
The Corporation and its consolidated affiliates generally purchase the property, plant, and equipment used in operations, but there are situations where assets are leased, primarily for drilling equipment, tankers, office buildings, railcars, and other moveable equipment. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for drilling equipment, tankers, and finance leases is excluded from the calculation of right of use assets and lease liabilities. Generally, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations, assets are leased for nearly all of their useful lives and are accounted for as finance leases.
Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, covenants related to leases, and transactions with related parties are also not significant. In general, leases are capitalized using the incremental borrowing rate of the leasing affiliate. The Corporation’s activities as a lessor are not significant.
Lease Cost
(millions of dollars)
Operating LeasesFinance Leases
202520242023202520242023
 
Operating lease cost2,450 2,296 1,976 
Short-term and other (net of sublease rental income)1,490 2,047 1,563 
Amortization of right of use assets161 140 107 
Interest on lease liabilities167 149 140 
Total (1)
3,940 4,343 3,539 328 289 247 
(1) Includes $984 million, $1,195 million, and $999 million for drilling rigs and related equipment operating leases in 2025, 2024, and 2023, respectively.

Balance Sheet
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Right of use assets    
Included in Other assets, including intangibles - net7,224 7,123 
Included in Property, plant, and equipment - net3,284 2,888 
Total right of use assets7,224 7,123 3,284 2,888 
Lease liability due within one year
Included in Accounts payable and accrued liabilities1,942 1,852 7 6 
Included in Notes and loans payable137 117 
Long-term lease liability
Included in Other long-term obligations4,892 4,626 
Included in Long-term debt2,406 2,123 
Included in Long-term obligations to equity companies109 115 
Total lease liability (2)
6,834 6,478 2,659 2,361 
Weighted-average remaining lease term (years)871718
Weighted-average discount rate (percent)4.7 %4.9 %8.1 %6.4 %
(2) Includes $1,691 million and $2,198 million for drilling rigs and related equipment operating leases in 2025 and 2024, respectively.

 
Maturity Analysis of Lease Liabilities
(millions of dollars)
Operating LeasesFinance Leases
December 31, 2025
20262,189 362 
20271,609 351 
20281,042 348 
2029502 341 
2030402 335 
2031 and beyond2,237 3,128 
Total lease payments7,981 4,865 
Discount to present value(1,147)(2,206)
Total lease liability6,834 2,659 
In addition to the lease liabilities in the table immediately above, at December 31, 2025, undiscounted commitments for leases not yet commenced totaled $3.0 billion for operating leases and $0.8 billion for finance leases. Estimated cash payments for operating and finance leases not yet commenced are $0.2 billion and $0.3 billion for 2026 and 2027 respectively. Operating leases not yet commenced primarily relate to LNG transportation vessels.
Other Information
(millions of dollars)
Operating LeasesFinance Leases
202520242023202520242023
Cash paid for amounts included in the measurement of lease liabilities
Cash flows from operating activities1,522 1,301 1,135 20 20 20 
Cash flows from investing activities868 837 758 
Cash flows from financing activities140 121 86 
Noncash right of use assets recorded for lease liabilities
In exchange for lease liabilities during the period2,310 2,074 2,161 403 109 529