CHEVRON CORPCVX

CHEVRON CORP Leases Disclosure

10-KFiled Feb 24, 20262 min read
Lease Commitments
The company enters into leasing arrangements as a lessee; any lessor arrangements are not significant. Operating lease arrangements mainly involve land, bareboat charters, terminals, drill ships, drilling rigs, time chartered vessels, office buildings and warehouses, and exploration and production equipment. Finance leases primarily include facilities, vessels and office buildings.
Details of the right-of-use assets and lease liabilities for operating and finance leases, including the balance sheet presentation, are as follows:
At December 31, 2025At December 31, 2024
Operating
Leases		Finance
Leases		Operating
Leases		Finance
Leases
Deferred charges and other assets$6,054 $— $5,315 $— 
Properties, plant and equipment, net— 1,413 — 570 
Right-of-use assets*$6,054 $1,413 $5,315 $570 
Accrued liabilities$1,831 $— $1,519 $— 
Short-term debt— 786 — 58 
Current lease liabilities1,831 786 1,519 58 
Deferred credits and other noncurrent obligations4,154 — 3,551 — 
Long-term debt— 659 — 546 
Noncurrent lease liabilities4,154 659 3,551 546 
 Total lease liabilities
$5,985 $1,445 $5,070 $604 
Weighted-average remaining lease term (in years)6.66.56.313.2
Weighted-average discount rate4.0 %4.9 %3.7 %4.6 %
* Includes non-cash additions of $2,845 and $971 in 2025, and $2,205 and $40 in 2024 for right-of-use assets obtained in exchange for new and modified lease liabilities for operating and finance leases, respectively.

Total lease costs consist of both amounts recognized in the Consolidated Statement of Income during the period and amounts capitalized as part of the cost of another asset. Total lease costs incurred for operating and finance leases were as follows:
Year-ended December 31
202520242023
Operating lease costs*$3,719 $3,447 $2,984 
Finance lease costs 154 8352
Total lease costs
$3,873 $3,530 $3,036 
* Includes variable and short-term lease costs.
Cash paid for amounts included in the measurement of lease liabilities was as follows:
Year-ended December 31
202520242023
Operating cash flows from operating leases$2,838 $2,468 $2,271 
Investing cash flows from operating leases881 979 713 
Operating cash flows from finance leases42 26 15 
Financing cash flows from finance leases136 67 42 
At December 31, 2025, the estimated future undiscounted cash flows for operating and finance leases were as follows:
At December 31, 2025
Operating LeasesFinance
Leases
Year2026$2,017 $825 
20271,369 98 
2028898 96 
2029551 93 
2030365 83 
Thereafter1,701 524 
Total$6,901 $1,719 
Less: Amounts representing interest916 274 
Total lease liabilities
$5,985 $1,445 
Additionally, the company has $1,316 in future undiscounted cash flows for operating leases not yet commenced. These leases are primarily for drilling rigs, time chartered vessels, exploration and production equipment and storage tanks. For
those leasing arrangements where the underlying asset is not yet constructed, the lessor is primarily involved in the design and construction of the asset.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 21, 2025
2023Feb 26, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 21, 2020
2018Feb 22, 2019
2017Feb 22, 2018
2016Feb 23, 2017
2015Feb 25, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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