v3.21.1
Fair Value Measurement (Tables)
3 Months Ended
Mar. 31, 2021
Fair Value Measurement [Abstract]  
Fair value hierarchy for gross financial assets and liabilities
Millions of Dollars
March 31, 2021
December 31, 2020
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets
Investment in Cenovus Energy
$
1,564
-
-
1,564
1,256
-
-
1,256
Investments in debt securities
10
542
-
552
17
501
-
518
Commodity derivatives
162
104
12
278
142
101
12
255
Total assets
$
1,736
646
12
2,394
1,415
602
12
2,029
Liabilities
Commodity derivatives
$
155
89
10
254
120
91
9
220
Total liabilities
$
155
89
10
254
120
91
9
220
Commodity derivative balances subject to right of setoff
The following table summarizes those commodity
 
derivative balances subject to the right of setoff as
 
presented on our consolidated balance sheet.
 
We have elected to offset the recognized fair value amounts for
 
multiple derivative instruments executed with the
 
same counterparty in our financial statements
 
when a legal
right of setoff exists.
Millions of Dollars
Amounts Subject to Right of Setoff
Gross
Amounts Not
Gross
 
Net
Amounts
Subject to
 
Gross
 
Amounts
Amounts
Cash
Net
 
Recognized
Right of Setoff
Amounts
Offset
Presented
Collateral
Amounts
March 31, 2021
Assets
$
278
5
273
197
76
1
75
Liabilities
254
2
252
197
55
1
54
December 31, 2020
Assets
$
255
2
253
157
96
10
86
Liabilities
220
1
219
157
62
4
58
At March 31, 2021 and December 31, 2020, we
 
did not present any amounts gross on our
 
consolidated
balance sheet where we had the right of setoff.
Net fair value of financial instruments
The following table summarizes the net fair
 
value of financial instruments (i.e., adjusted
 
where the right of
setoff exists for commodity derivatives):
Millions of Dollars
Carrying Amount
Fair Value
March 31
December 31
March 31
December 31
2021
2020
2021
2020
Financial assets
Investment in Cenovus Energy
$
1,564
1,256
1,564
1,256
Commodity derivatives
80
88
80
88
Investments in debt securities
552
518
552
518
Loans and advances—related parties
168
220
168
220
Financial liabilities
Total debt, excluding finance leases
19,154
14,478
22,578
19,106
Commodity derivatives
56
59
56
59