
Income Taxes	Year ended December 31
	2025		2024		2023
Income tax expense (benefit)
U.S. federal
Current	$	444	$	854	$	895
Deferred	885		748		666
State and local
Current	309		275		211
Deferred	(88)		10		1
Total United States	1,550		1,887		1,773
International
Current	5,520		7,388		6,745
Deferred	188		482		(345)
Total International	5,708		7,870		6,400
Total income tax expense (benefit)	$	7,258	$	9,757	$	8,173

The reconciliation between the U.S. statutory federal income tax rate and the company’s effective income tax rate for the year ended December 31, 2025, in accordance with ASU 2023-09 guidance, is detailed in the following table:


Taxes On Income	Year ended December 31
	2025
	$		%
Income (loss) before income taxes
United States	$	5,979
International	13,764
Total income (loss) before income taxes	19,743
U.S. Federal statutory income tax	4,146		21.0	%
State and local income tax, net of federal income tax effect1	142		0.7	%
Foreign tax effects
Australia
Statutory tax rate difference	334		1.7	%
Additional non-U.S. income taxes2	287		1.5	%
Foreign exchange	356		1.8	%
Other	14		0.1	%
Kazakhstan
Additional non-U.S. income taxes2	624		3.2	%
Equity affiliate accounting effect3	(353)		(1.8)	%
Other	128		0.6	%
Nigeria - primarily additional non-U.S. income taxes	368		1.9	%
Saudi Arabia - primarily statutory tax rate difference	583		3.0	%
Other foreign jurisdictions	345		1.7	%
Total foreign tax effects	2,686		13.6	%
Effect of cross-border tax laws - primarily surplus foreign tax credits4	(2,477)		(12.5)	%
Changes in valuation allowances4	2,773		14.0	%
Other adjustments5	(12)		(0.1)	%
Total income tax expense and effective tax rate	$	7,258	36.8	%

1 State taxes in California and New Mexico make up the majority (greater than 50%) of the tax effect in this category.

2 Includes items such as withholding taxes and oil profit taxes.

3 After‑tax equity affiliate income is included in pretax earnings, which results in a negative adjustment in the rate reconciliation.

4 Surplus foreign tax credits and their related valuation allowances are shown gross but largely offset.

5 Tax credits, nontaxable and nondeductible items and changes in unrecognized tax benefits were all immaterial and included in other adjustments.

The reconciliation between the U.S. statutory federal income tax rate and the company’s effective income tax rate for the years ended December 31, 2024 and 2023, as previously reported, is detailed in the following table:



	Year ended December 31
		2024			2023
Income (loss) before income taxes
United States		$	8,056		$	8,565
International		19,450			21,019
Total income (loss) before income taxes		27,506			29,584
Theoretical tax (at U.S. statutory rate of 21%)		5,776			6,213

Equity affiliate accounting effect		(845)			(1,072)
Effect of income taxes from international operations		4,742			3,001
State and local taxes on income, net of U.S. federal income tax benefit		214			252
Prior year tax adjustments, claims and settlements1		(30)			(32)
Tax credits		(28)			(20)
Other U.S.1, 2		(72)			(169)
Total income tax expense (benefit)		$	9,757		$	8,173

Effective income tax rate		35.5		%	27.6		%

1 Includes one-time tax costs (benefits) associated with changes in uncertain tax positions.

2 Includes one-time tax costs (benefits) associated with changes in valuation allowances (2024 - $(12); 2023 - $(84)).


	Year ended December 31
	2025		2024		2023
Distributions more (less) than income from equity affiliates includes the following:
Distributions from equity affiliates	$	5,282	$	4,230	$	4,246
(Income) loss from equity affiliates	(3,000)		(4,596)		(5,131)
Distributions more (less) than income from equity affiliates	$	2,282	$	(366)	$	(885)
Net decrease (increase) in operating working capital was composed of the following:
Decrease (increase) in accounts and notes receivable	$	3,829	$	(932)	$	1,187
Decrease (increase) in inventories	51		(574)		(320)
Decrease (increase) in prepaid expenses and other current assets	(109)		(16)		(1,202)
Increase (decrease) in accounts payable and accrued liabilities	(3,469)		2,569		(49)
Increase (decrease) in income and other taxes payable	(1,310)		164		(2,801)
Net decrease (increase) in operating working capital	$	(1,008)	$	1,211	$	(3,185)
Net cash provided by operating activities includes the following cash payments:
Interest on debt (net of capitalized interest)	$	942	$	587	$	465
Income taxes	7,304		8,458		10,416
Proceeds and deposits related to asset sales and returns of investment consisted of the following gross amounts:
Proceeds and deposits related to asset sales	$	1,677	$	7,509	$	446
Returns of investment from equity affiliates	149		195		223
Proceeds and deposits related to asset sales and returns of investment	$	1,826	$	7,704	$	669
Net maturities (investments) of time deposits consisted of the following gross amounts:
Investments in time deposits	$	(16)	$	(6)	$	—
Maturities of time deposits	17		2		—
Net maturities of (investments in) time deposits	$	1	$	(4)	$	—
Net sales (purchases) of marketable securities consisted of the following gross amounts:
Marketable securities purchased	$	—	$	—	$	(289)
Marketable securities sold	—		45		464
Net sales (purchases) of marketable securities	$	—	$	45	$	175
Net repayment (borrowing) of loans by equity affiliates:
Borrowing of loans by equity affiliates	$	(300)	$	(304)	$	(368)
Repayment of loans by equity affiliates	1,078		71		66
Net repayment (borrowing) of loans by equity affiliates	$	778	$	(233)	$	(302)
Net borrowings (repayments) of short-term obligations consisted of the following gross and net amounts:
Repayments of short-term obligations	$	(9,877)	$	(840)	$	—
Proceeds from issuances of short-term debt obligations	7,852		4,539		—
Net borrowings (repayments) of short-term obligations with three months or less maturity	964		1,169		135
Net borrowings (repayments) of short-term obligations	$	(1,061)	$	4,868	$	135
Net sales (purchases) of treasury shares consists of the following gross and net amounts:
Shares issued for share-based compensation plans	$	370	$	330	$	261
Shares purchased under share repurchase and deferred compensation plans	(12,079)		(15,229)		(14,939)
Share repurchase excise tax payments	(146)		(145)		—
Net sales (purchases) of treasury shares	$	(11,855)	$	(15,044)	$	(14,678)
Net contributions from (distributions to) noncontrolling interests consisted of the following gross and net amounts:
Distributions to noncontrolling interests	$	(334)	$	(210)	$	(54)
Contributions from noncontrolling interests	11		15		14
Net contributions from (distributions to) noncontrolling interests	$	(323)	$	(195)	$	(40)

The reconciliation of income taxes paid in the U.S. and other significant international jurisdictions for the year ended December 31, 2025, is detailed in the following table:


Income Taxes Paid	Year ended December 31
		2025

U.S. Federal1		$	143
U.S. state and local		224
All other jurisdictions
Australia		1,592
Canada2		1,782
Guyana3		406
Kazakhstan4		755
Nigeria		593
Saudi Arabia		611
All others		1,198
Income taxes paid		$	7,304

1 U.S. Federal taxes paid are affected by accelerated depreciation and the immediate expensing of research and development costs provided by the One Big Beautiful Bill Act of 2025, as well as net operating loss carryforwards, tax credits from biofuels production and other lower carbon activities, and prior year overpayments.

2 Includes taxes associated with the Canada asset sale in 2024 that were paid in 2025.

3 Taxes settled with the government in the form of crude oil barrels.

4 Includes withholding tax and excludes taxes paid by the company’s equity affiliate, TCO.


			At December 31
	2025		2024
Deferred tax liabilities
Properties, plant and equipment	$	34,149	$	20,648
Investments and other	6,668		5,254
Total deferred tax liabilities	40,817		25,902
Deferred tax assets
Foreign tax credits	(18,932)		(15,261)
Asset retirement obligations/environmental reserves	(4,993)		(4,220)
Employee benefits	(1,924)		(2,050)
Tax credits	(430)		(292)
Tax loss carryforwards	(7,141)		(3,034)
Other accrued liabilities	(909)		(1,137)

Operating leases	(1,886)		(1,352)
Miscellaneous	(4,311)		(4,248)
Total deferred tax assets	(40,526)		(31,594)
Deferred tax assets valuation allowance	26,861		21,313
Total deferred income taxes, net	$	27,152	$	15,621

At December 31, 2025 and 2024, deferred taxes were classified on the Consolidated Balance Sheet as follows:


	At December 31
	2025		2024
Deferred charges and other assets	$	(2,862)	$	(3,516)
Noncurrent deferred income taxes	30,014		19,137
Total deferred income taxes, net	$	27,152	$	15,621

The following table indicates the changes to the company’s unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023. The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. Interest and penalties are not included.


	2025		2024		2023
Balance at January 1	$	4,852	$	5,452	$	5,323
Foreign currency effects	—		—		(27)
Additions based on tax positions taken in current year	632		236		248
Additions for tax positions taken in prior years	546		101		265
Reductions based on tax positions taken in current year	(29)		(54)		(104)
Reductions for tax positions taken in prior years	(3,390)		(883)		(251)
Settlements with taxing authorities in current year	—		—		(2)

Balance at December 31	$	2,611	$	4,852	$	5,452


Taxes Other Than on Income
	Year ended December 31
	2025		2024		2023
United States
Import duties and other levies	$	7	$	8	$	(9)
Property and other miscellaneous taxes	1,129		977		818
Payroll taxes	308		296		286
Taxes on production	816		842		801
Total United States	2,260		2,123		1,896
International
Import duties and other levies	121		90		72
Property and other miscellaneous taxes	2,608		2,283		2,004
Payroll taxes	135		125		121
Taxes on production	106		95		127
Total International	2,970		2,593		2,324
Total taxes other than on income	$	5,230	$	4,716	$	4,220