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<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>1.        Basis of Presentation<br/>These consolidated financial statements are unaudited; however, in the opinion of management, reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. Certain reclassifications of prior year data have been made to conform to 2009 classifications. Events and transactions subsequent to the balance sheet date have been evaluated through August 6, 2009, the date these consolidated financial statements were issued, for potential recognition or disclosure in the consolidated financial statements. <br/>These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Marathon Oil Corporation (“Marathon”) 2008 Annual Report on Form 10-K. The results of operations for the quarter and six months ended June 30, 2009 are not necessarily indicative of the results to be expected for the full year.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>2.        New Accounting Standards<br/>SFAS No. 165 – In May 2009, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 165, “Subsequent Events.”  This statement establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. SFAS No. 165 should not significantly change the subsequent events that an entity reports. It codifies into the accounting standards guidance that existed in the auditing standards. We began applying this standard prospectively in the second quarter of 2009. The disclosures required by SFAS No. 165 appear in Note 1.<br/>FSP FAS 107-1 – In April 2009, the FASB issued a Staff Position (“FSP”) FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP FAS 107-1”). FSP FAS 107-1 amends SFAS No. 107 and Accounting Principles Board (“APB”) Opinion No. 28 to require disclosures about fair value of financial instruments in interim reporting periods for publicly traded companies. Disclosures are expanded, making the annual disclosures of SFAS No. 107 required in interim periods. This FSP is effective for the second quarter of 2009 and does not require disclosures for earlier periods presented for comparative purposes. Adoption did not have an impact on our consolidated results of operations, financial position or cash flows. The required disclosures are presented in Note 10.<br/>FSP FAS 157-4 – Also in April 2009, the FASB issued FSP FAS 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,”. FSP FAS 157-4 provides additional guidance for estimating fair value in accordance with SFAS No. 157 when the volume and level of activity for the asset or liability has significantly decreased. It also includes guidance on identifying circumstances that indicate a transaction is not orderly. FSP FAS 157-4 is effective for the second quarter of 2009 and does not require disclosures for earlier periods presented for comparative purposes. Adoption did not have a significant impact on our consolidated results of operations, financial position or cash flows. <br/>EITF 08-6 – In November 2008, the FASB ratified Emerging Issues Task Force (“EITF”) Issue 08-6, “Equity Method Investment Accounting Considerations” (“EITF 08-6”) which clarifies how to account for certain transactions involving equity method investments. The initial measurement, decreases in value and changes in the level of ownership of the equity method investment are addressed. EITF 08-6 is effective on a prospective basis on January 1, 2009 and for interim periods. Early application by an entity that has previously adopted an alternative accounting policy is not permitted. Since this standard will be applied prospectively, adoption did not have a significant impact on our consolidated results of operations, financial position or cash flows. <br/>FSP EITF 03-6-1 – In June 2008, the FASB issued FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”) under the two-class method.  FSP EITF 03-6-1 is effective January 1, 2009 and all prior-period EPS data (including any amounts related to interim periods, summaries of earnings and selected financial data) will be adjusted retrospectively to conform to its provisions. While our restricted stock awards meet this definition of participating securities, the application of FSP EITF 03-6-1 did not have a significant impact on our reported EPS.<br/>   FSP FAS 142-3 – In April 2008, the FASB issued FSP FAS 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP FAS 142-3”), which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, “Goodwill and Other Intangible Assets.” The intent of this FSP is to improve the consistency between the useful life of a recognized intangible asset and the period of expected cash flows used to measure the fair value of the asset.   FSP FAS 142-3 is effective on January 1, 2009. Early adoption is prohibited.  The provisions of FSP FAS 142-3 are to be applied prospectively to intangible assets acquired after the effective date, except for the disclosure requirements which must be applied prospectively to all intangible assets recognized as of, and subsequent to, the effective date.  Since this standard is applied prospectively, adoption did not have a significant impact on our consolidated results of operations, financial position or cash flows.<br/>SFAS No. 161 – In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities – an amendment of FASB Statement No. 133.”  This statement expands the disclosure requirements for derivative instruments to provide information regarding (i) how and why an entity uses derivative instruments, (ii) how derivative instruments and related hedged items are accounted for under SFAS No. 133 and its related interpretations and (iii) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows.  To meet these objectives, the statement requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts and gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements.  This standard is effective January 1, 2009.  The statement encourages but does not require disclosures for earlier periods presented for comparative purposes at initial adoption.  The disclosures required by SFAS No. 161 appear in Note 11.<br/>SFAS No. 141(R) – In December 2007, the FASB issued SFAS No. 141 (Revised 2007), “Business Combinations” (“SFAS No. 141(R)”).   This statement significantly changes the accounting for business combinations. Under SFAS No. 141(R), an acquiring entity will be required to recognize all the assets acquired, liabilities assumed and any noncontrolling interest in the acquiree at their acquisition-date fair value with limited exceptions. The statement expands the definition of a business and is expected to be applicable to more transactions than the previous standard on business combinations. The statement also changes the accounting treatment for changes in control, step acquisitions, transaction costs, acquired contingent liabilities, in-process research and development, restructuring costs, changes in deferred tax asset valuation allowances as a result of a business combination and changes in income tax uncertainties after the acquisition date.  Accounting for changes in valuation allowances for acquired deferred tax assets and the resolution of uncertain tax positions for prior business combinations will impact tax expense instead of impacting recorded goodwill.  Additional disclosures are also required. In April 2009, the FASB issued an FSP on FAS 141(R), “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (“FSP FAS 141(R)-1”), which addressed SFAS No. 141(R) implementation issues related to contingent assets and liabilities acquired in a business combination. Both SFAS No. 141(R) and FSP FAS 141(R)-1 are effective on January 1, 2009 for all new business combinations.  Because we had no business combinations in progress at January 1, 2009, adoption of these standards did not have a significant impact on our consolidated results of operations, financial position or cash flows.<br/>SFAS No. 160 – In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51.”  This statement establishes new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary.  Specifically, this statement clarifies that a noncontrolling interest in a subsidiary (sometimes called a minority interest) is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements, but separate from the parent's equity.  It requires that the amount of consolidated net income attributable to the noncontrolling interest be clearly identified and presented on the face of the consolidated income statement.  SFAS No. 160 clarifies that changes in a parent's ownership interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest.  In addition, this statement requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated, based on the fair value of the noncontrolling equity investment on the deconsolidation date.  Additional disclosures are required that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners.  In January 2009, the FASB ratified EITF Issue 08-10, “Selected Statement 160 Implementation Questions” (“EITF 08-10”). Both SFAS No. 160 and EITF 08-10 are effective January 1, 2009.  The statements must be applied prospectively, except for the presentation and disclosure requirements which must be applied retrospectively for all periods presented in consolidated financial statements.  Adoption of these standards did not have a significant impact on our consolidated results of operations, financial position or cash flows.<br/>SFAS No. 157 – In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements.” This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 does not require any new fair value measurements but may require some entities to change their measurement practices. We adopted SFAS No. 157 effective January 1, 2008 with respect to financial assets and liabilities and effective January 1, 2009 with respect to nonfinancial assets and liabilities. Adoption did not have a significant effect on our consolidated results of operations, financial position or cash flows.<br/>In February 2008, the FASB issued FSP FAS 157-1, “Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13,” which removes certain leasing transactions from the scope of SFAS No. 157, and FSP FAS 157-2, “Effective Date of FASB Statement No. 157,” which deferred the effective date of SFAS No. 157 for one year for certain nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis. <br/>In October 2008, the FASB issued FSP FAS 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active,” which clarifies the application of SFAS No. 157 in a market that is not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. FSP FAS 157-3 was effective upon issuance, including prior periods for which financial statements had not been issued, and any revisions resulting from a change in the valuation technique or its application were required to be accounted for as a change in accounting estimate. Application of FSP FAS 157-3 did not cause us to change our valuation techniques for assets and liabilities measured under SFAS No. 157.<br/>The additional disclosures regarding assets and liabilities recorded at fair value and measured under SFAS No. 157 are presented in Note 10.<br/>FSP FASB 132(R)-1 – In December 2008, the FASB issued FSP FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets” (“FSP FAS 132(R)-1”) which provides guidance on an employer’s disclosures about plan assets of defined benefit pension or other postretirement plans. This FSP requires additional disclosures about investment policies and strategies, the reporting of fair value by asset category and other information about fair value measurements. The FSP is effective January 1, 2009 and early application is permitted. Upon initial application, the provisions of FSP FAS 132(R)-1 are not required for earlier periods that are presented for comparative purposes. We will expand our disclosures in accordance with FSP FAS 132(R)-1 in our Annual Report on Form 10-K for the year ending December 31, 2009; however, the adoption of this standard is not expected to have an impact on our consolidated results of operations, financial position or cash flows.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>3.        Income per Common Share<br/>        Basic income per share is based on the weighted average number of common shares outstanding, including securities exchangeable into common shares. Diluted income per share includes exercise of stock options, provided the effect is not antidilutive. </p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="340" height="17" align="left"><font size="2"> </font></td><td colspan="11" width="335" height="17" align="center"><font size="2">Three Months Ended June 30,</font></td></tr><tr><td width="340" height="17" align="left"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="4" width="151" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions, except per share data)</i></font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Basic</font></td><td width="9" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Diluted</font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Basic</font></td><td width="9" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Diluted</font></td></tr><tr><td colspan="5" width="438" height="5" align="left" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td><td colspan="4" width="151" height="5" align="left" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td><td colspan="3" width="86" height="5" align="left" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="340" height="15" align="left"><font size="2">Income from continuing operations</font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2">341 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2">341 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2">768 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2">768 </font></td></tr><tr><td width="340" height="15" align="left"><font size="2">Discontinued operations</font></td><td width="12" height="15" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2">72 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2">72 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2">6 </font></td><td width="9" height="15" align="right"><font size="2"> </font></td><td width="12" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2">6 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Net income</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 413 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 413 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 774 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 774 </font></td></tr><tr><td width="340" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Weighted average common shares outstanding</font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> 709 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> 709 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">710 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">710 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Effect of dilutive securities </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 2 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">4 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Weighted average common shares, including </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">     dilutive effect</font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2"> 709 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2"> 711 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2">710 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2">714 </font></td></tr><tr><td width="340" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Per share:</font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    Income from continuing operations</font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.48 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.48 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">1.08 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">1.07 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    Discontinued operations</font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.10 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.10 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.01 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.01 </font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">    Net income</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0.58 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0.58 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1.09 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1.08 </font></td></tr></table></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="340" height="17" align="left"><font size="2"> </font></td><td colspan="11" width="335" height="17" align="center"><font size="2">Six Months Ended June 30,</font></td></tr><tr><td width="340" height="17" align="left"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="4" width="151" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions, except per share data)</i></font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Basic</font></td><td width="9" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Diluted</font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Basic</font></td><td width="9" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Diluted</font></td></tr><tr><td colspan="5" width="438" height="6" align="left" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td><td colspan="4" width="151" height="6" align="left" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td><td colspan="3" width="86" height="6" align="left" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="340" height="15" align="left"><font size="2">Income from continuing operations</font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2"> 607 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2"> 607 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2"> 1,485 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left"><font size="2">$</font></td><td width="65" height="15" align="right"><font size="2"> 1,485 </font></td></tr><tr><td width="340" height="15" align="left"><font size="2">Discontinued operations</font></td><td width="12" height="15" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 88 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 88 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 20 </font></td><td width="9" height="15" align="left"><font size="2"><b> </b></font></td><td width="12" height="15" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td><td width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 20 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Net income</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 695 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 695 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 1,505 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2"> 1,505 </font></td></tr><tr><td width="340" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Weighted average common shares outstanding</font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> 709 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> 709 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> 711 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">711 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Effect of dilutive securities </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 2 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 5 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Weighted average common shares, including </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">     dilutive effect</font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2"> 709 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2"> 711 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2">711 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 3px double #000000;"><font size="2">716 </font></td></tr><tr><td width="340" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="9" height="5" align="left"><font size="2"><b> </b></font></td><td width="12" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td><td width="65" height="5" align="left" style="border-top: 3px double #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Per share:</font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    Income from continuing operations</font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.86 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.86 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">2.09 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">2.07 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    Discontinued operations</font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.12 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.12 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.02 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0.03 </font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">    Net income</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0.98 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0.98 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2.11 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2.10 </font></td></tr></table></div><div><font size="2"><p>The per share calculations above exclude 8 million stock options for the second quarter and the first six months of 2009 and 6 million stock options for the second quarter and the first six months of 2008, as they were antidilutive.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>4.        Dispositions <br/>Ireland disposition - In April 2009, we closed the sale of our operated properties in Ireland for net proceeds of $84 million, after adjusting for cash held by the sold subsidiary. A $158 million pretax gain on the sale was recorded. As a result of this sale, we terminated our pension plan in Ireland, incurring a charge of $18 million. Activities related to our operated properties in Ireland had been reported in our Exploration and Production (“E&P”) segment.<br/>On June 24, 2009 we entered into an agreement to sell the subsidiary holding our 19 percent outside-operated interest in the Corrib natural gas development offshore Ireland. Activities related to the Corrib development also had been reported in our E&P segment. Total proceeds will range between $235 million and $400 million, subject to the timing of first commercial gas at Corrib and closing adjustments. At closing on July 30, 2009, the initial $100 million payment plus closing adjustments was received. Additional proceeds of $135 million to $300 million will be received on the earlier of first commercial gas or December 31, 2012. The fair value of the consideration for this asset was $311 million which was less than its book value. An impairment of $154 million was recognized in the second quarter of 2009 in discontinued operations. Additional gains or losses may be recognized until the final proceeds payment is received (see Note 10).<br/>As a result of these dispositions, our Irish exploration and production businesses have been reported as discontinued operations in the consolidated statements of income and the consolidated statements of cash flows for all periods presented. The net loss on the sales reported in discontinued operations for 2009 was $14 million before income taxes. Revenues and pretax income associated with the operations are shown in the following table:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="330" height="17" align="left"><font size="2"><i> </i></font></td><td colspan="5" width="166" height="17" align="center"><font size="2">Three Months Ended</font></td><td width="12" height="17" align="center"><font size="2"> </font></td><td colspan="5" width="166" height="17" align="center"><font size="2">Six Months Ended</font></td></tr><tr><td width="330" height="17" align="left"><font size="2"><i> </i></font></td><td colspan="5" width="166" height="17" align="center"><font size="2">June 30,</font></td><td width="12" height="17" align="center"><font size="2"> </font></td><td colspan="5" width="166" height="17" align="center"><font size="2">June 30,</font></td></tr><tr><td width="330" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="12" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td><td width="12" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="330" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">Revenues applicable to discontinued operations</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">4 </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">23 </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">83 </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">102 </font></td></tr><tr><td width="330" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Pretax income (loss) from discontinued operations</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(2)</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">10 </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">33 </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">40 </font></td></tr></table></div><div><font size="2"><p>Existing guarantees of our subsidiaries’ performance issued to Irish government entities will remain in place after the sales until the purchaser issues similar guarantees to replace them. The guarantees, related to asset retirement obligations and natural gas production levels, have been indemnified by the purchaser. Our maximum potential undiscounted payments under these guarantees were $155 million as of June 30, 2009. <br/></p></font></div><div><font size="2"><p>Permian Basin disposition - In June 2009, we closed the sales of a portion of our operated and all of our outside-operated Permian Basin producing assets in New Mexico and west Texas for net proceeds after closing adjustments of $292 million. A $199 million pretax gain on the sale was recorded. Activities related to these assets also had been reported in our E&P segment.<br/>Pending Angola disposition - In July 2009, we entered into an agreement to sell an undivided 20 percent outside-operated interest in the Production Sharing Contract and Joint Operating Agreement in Block 32 offshore Angola for $1.3 billion, excluding any purchase price adjustments at closing, with an effective date of January 1, 2009. We will retain a 10 percent outside-operated interest in Block 32. The carrying value of the 20 percent interest at June 30, 2009 was $430 million which will be classified as held for sale beginning August 1, 2009. We expect to close the transaction by year end 2009, subject to government and regulatory approvals. Activities related to these assets are being reported in our E&P segment. <br/>Assets held for sale - As of June 30, 2009, assets held for sale primarily represented our outside-operated interest in the Corrib development in Ireland as shown in the following table: <br/></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="593" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="82" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="593" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">Other current assets</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="70" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">1 </font></td></tr><tr><td width="593" height="17" align="left"><font size="2">Other noncurrent assets</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="70" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">373 </font></td></tr><tr><td width="593" height="17" align="left"><font size="2">     Total assets</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="70" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">374 </font></td></tr><tr><td width="593" height="5" align="left"><font size="2"> </font></td><td width="12" height="5" align="left"><font size="2"> </font></td><td width="70" height="5" align="left"><font size="2"> </font></td></tr><tr><td width="593" height="17" align="left"><font size="2">Other current liabilities</font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="70" height="17" align="right"><font size="2">52 </font></td></tr><tr><td width="593" height="17" align="left"><font size="2">Deferred credits and other liabilities</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="70" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">9 </font></td></tr><tr><td width="593" height="17" align="left"><font size="2">     Total liabilities</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="70" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">61 </font></td></tr><tr><td width="593" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">          Net assets held for sale</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="70" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">313 </font></td></tr></table></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>5.        Segment Information <br/>We have four reportable operating segments. Each of these segments is organized and managed based upon the nature of the products and services they offer. <br/>1)        Exploration and Production (“E&P”) – explores for, produces and markets liquid hydrocarbons and natural gas on a worldwide basis; <br/>2)        Oil Sands Mining (“OSM”) – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and by-products;<br/>3)        Refining, Marketing and Transportation (“RM&T”) – refines, markets and transports crude oil and petroleum products, primarily in the Midwest, upper Great Plains, Gulf Coast and southeastern regions of the United States; and<br/>4)        Integrated Gas (“IG”) – markets and transports products manufactured from natural gas, such as liquefied natural gas (“LNG”) and methanol, on a worldwide basis, and is developing other projects to link stranded natural gas resources with key demand areas.<br/>As discussed in Note 4, our Irish businesses have been reported as discontinued operations. Segment information for all presented periods excludes amounts for these operations.</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="318" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="14" width="357" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Three Months Ended June 30, 2009</font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">E&P</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">OSM</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">RM&T</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">IG</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Total</font></td></tr><tr><td width="318" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Revenues:</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"> </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Customer </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">1,871 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">126 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">11,052 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">7 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">13,056 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Intersegment </font><sup><font size="1">{a}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">123 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">29 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">8 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="center"><font size="2"> </font></td><td width="10" height="17" align="center"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">160 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Related parties </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">14 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">7 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">21 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">        Segment revenues </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">2,008 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">155 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">11,067 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">7 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">13,237 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Elimination of intersegment revenues</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(123)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(29)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(8)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(160)</font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Gain on U.K. natural gas contracts</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">3 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">3 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">        Total revenues </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">1,888 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">126 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">11,059 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">7 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">13,080 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Segment income</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">220 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">2 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">165 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">13 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">400 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income from equity method investments</font><sup><font size="1">{b}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">26 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">8 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">28 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">62 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Depreciation, depletion and amortization </font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">502 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">34 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">157 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">1 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">694 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income tax provision </font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">444 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">0 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">104 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">2 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">550 </font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Capital expenditures </font><sup><font size="1">{d}</font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">617 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">281 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">713 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,612 </font></td></tr></table></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="318" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="14" width="357" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Three Months Ended June 30, 2008</font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">E&P</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">OSM</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">RM&T</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">IG</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Total</font></td></tr><tr><td width="318" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Revenues:</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"> </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Customer </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">3,160 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">(80)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">18,267 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">21 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">21,368 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Intersegment </font><sup><font size="1">{a}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">226 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">96 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">37 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="center"><font size="2"> </font></td><td width="10" height="17" align="center"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">359 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Related parties </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">15 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">671 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">686 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">        Segment revenues </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">3,401 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">16 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">18,975 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">21 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">22,413 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Elimination of intersegment revenues</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(226)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(96)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(37)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(359)</font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Loss on U.K. natural gas contracts</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(165)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(165)</font></td></tr><tr><td width="318" height="17" align="left"><font size="2">        Total revenues </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">3,010 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">(80)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">18,938 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">21 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">21,889 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Segment income (loss)</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">822 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">(157)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">158 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">102 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">925 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income from equity method investments</font><sup><font size="1">{b}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">77 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">0 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">43 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">136 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">256 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Depreciation, depletion and amortization </font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">300 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">33 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">150 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">1 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">484 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income tax provision (benefit)</font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">851 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(54)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">108 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">36 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">941 </font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Capital expenditures </font><sup><font size="1">{d}</font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">839 </font></td><td width="8" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">262 </font></td><td width="8" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">702 </font></td><td width="8" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,803 </font></td></tr></table></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="318" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="14" width="357" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Six Months Ended June 30, 2009</font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">E&P</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">OSM</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">RM&T</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">IG</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Total</font></td></tr><tr><td width="318" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Revenues:</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"> </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Customer </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">3,175 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">223 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">19,712 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">18 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">23,128 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Intersegment </font><sup><font size="1">{a}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">242 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">54 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">17 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="center"><font size="2"> </font></td><td width="10" height="17" align="center"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">313 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Related parties </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">29 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">12 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">41 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">        Segment revenues </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">3,446 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">277 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">19,741 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">18 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">23,482 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Elimination of intersegment revenues</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(242)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(54)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(17)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(313)</font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Gain on U.K. natural gas contracts</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">85 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">85 </font></td></tr><tr><td width="318" height="19" align="left"><font size="2">        Total revenues </font><sup><font size="1"></font></sup></td><td width="10" height="19" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="19" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">3,289 </font></td><td width="8" height="19" align="right"><font size="2"> </font></td><td width="10" height="19" align="left" style="border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="19" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">223 </font></td><td width="8" height="19" align="right"><font size="2"> </font></td><td width="10" height="19" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="19" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">19,724 </font></td><td width="8" height="19" align="right"><font size="2"> </font></td><td width="10" height="19" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="19" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">18 </font></td><td width="8" height="19" align="right"><font size="2"> </font></td><td width="10" height="19" align="left" style="border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="19" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">23,254 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Segment income (loss)</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">305 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">(22)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">324 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">40 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">647 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income from equity method investments</font><sup><font size="1">{b}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">37 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">2 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">70 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">109 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Depreciation, depletion and amortization </font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">969 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">71 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">309 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">2 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">1,351 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income tax provision (benefit)</font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">616 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(8)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">210 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">15 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">833 </font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Capital expenditures </font><sup><font size="1">{d}</font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">990 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">567 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,373 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2,931 </font></td></tr></table></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="318" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="14" width="357" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Six Months Ended June 30, 2008</font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">E&P</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">OSM</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">RM&T</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">IG</font></td><td width="8" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Total</font></td></tr><tr><td width="318" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="8" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Revenues:</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td><td width="8" height="17" align="right"><font size="2"><b> </b></font></td><td width="10" height="17" align="right"><font size="2"><b> </b></font></td><td width="55" height="17" align="right"><font size="2"> </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"><b> </b></font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Customer </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">5,900 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">99 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">32,600 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">40 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left"><font size="2">$</font></td><td width="55" height="17" align="right"><font size="2">38,639 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Intersegment </font><sup><font size="1">{a}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">385 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">116 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">202 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">703 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Related parties </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">29 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,199 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,228 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">        Segment revenues </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">6,314 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">215 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">34,001 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">40 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">40,570 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Elimination of intersegment revenues</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(385)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(116)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(202)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(703)</font></td></tr><tr><td width="318" height="17" align="left"><font size="2">    Loss on U.K. natural gas contracts</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(235)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> - </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(235)</font></td></tr><tr><td width="318" height="17" align="left"><font size="2">        Total revenues </font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">5,694 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">99 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">33,799 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">40 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><font size="2">39,632 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Segment income (loss)</font><sup><font size="1"></font></sup></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">1,494 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">(130)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">83 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">201 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="left" style="border-top: 3px double #000000;"><font size="2">$</font></td><td width="55" height="17" align="right" style="border-top: 3px double #000000;"><font size="2">1,648 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income from equity method investments</font><sup><font size="1">{b}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">139 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">0 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">71 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">255 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">465 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Depreciation, depletion and amortization </font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">548 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">67 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">298 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">2 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">915 </font></td></tr><tr><td width="318" height="17" align="left"><font size="2">Income tax provision (benefit)</font><sup><font size="1">{c}</font></sup></td><td width="10" height="17" align="left"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">1,521 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">(45)</font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">63 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">84 </font></td><td width="8" height="17" align="right"><font size="2"> </font></td><td width="10" height="17" align="right"><font size="2"> </font></td><td width="55" height="17" align="right"><font size="2">1,623 </font></td></tr><tr><td width="318" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Capital expenditures </font><sup><font size="1">{d}</font></sup></td><td width="10" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,596 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">510 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,213 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1 </font></td><td width="8" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">3,320 </font></td></tr></table></div><div><font size="2"><p>(a)        Management believes intersegment transactions were conducted under terms comparable to those with unrelated parties.<br/>(b)        Pilot Travel Centers LLC, which was reported in our RM&T segment, was sold in the fourth quarter of 2008.<br/> (c)         Differences between segment totals and our totals represent amounts related to corporate administrative activities and other unallocated items and are included in “Items not allocated to segments, net of income taxes” in reconciliation below.<br/> (d)         Differences between segment totals and our totals represent amounts related to corporate administrative activities.</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td colspan="13" width="709" height="17" align="left"><font size="2">     The following reconciles segment income to net income as reported in the consolidated statements of income:</font></td></tr><tr><td width="340" height="8" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td><td width="9" height="8" align="left"><font size="2"> </font></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td><td width="9" height="8" align="left"><font size="2"> </font></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td><td width="9" height="8" align="left"><font size="2"> </font></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td colspan="5" width="163" height="17" align="center"><font size="2">Three Months Ended</font></td><td width="9" height="17" align="center"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center"><font size="2">Six Months Ended</font></td></tr><tr><td width="340" height="17" align="left"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td colspan="5" width="163" height="17" align="center"><font size="2">June 30,</font></td><td width="9" height="17" align="center"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center"><font size="2">June 30,</font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td colspan="2" width="21" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td><td width="9" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="340" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">Segment income</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">400 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">925 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">647 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">1,648 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Items not allocated to segments, net of income taxes:</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">     Corporate and other unallocated items</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(89)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(57)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(140)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(78)</font></td></tr><tr><td width="340" height="17" align="left"><font size="2">     Foreign currency remeasurement of deferred taxes</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(94)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(16)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(66)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">35 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">     Gain (loss) on U.K. natural gas contracts</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">2 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(84)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">44 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(120)</font></td></tr><tr><td width="340" height="17" align="left"><font size="2">     Gain on dispositions</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">122 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> - </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">122 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> - </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">     Discontinued operations</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">72 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">6 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">88 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">20 </font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">          Net income </font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">413 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">774 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">695 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">1,505 </font></td></tr></table></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td colspan="12" width="675" height="39" align="left"><font size="2">     The following reconciles total revenues to sales and other operating revenues (including consumer excise taxes) as reported in the consolidated statements of income:</font></td></tr><tr><td width="340" height="8" align="left"><font size="2"> </font></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td><td width="9" height="8" align="left"><font size="2"> </font></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td><td width="9" height="8" align="left"><font size="2"> </font></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td><td width="9" height="8" align="left"><font size="2"> </font></td><td width="12" height="8" align="left"><font size="2"> </font></td><td width="65" height="8" align="left"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2"><i> </i></font></td><td colspan="5" width="163" height="17" align="center"><font size="2">Three Months Ended</font></td><td width="9" height="17" align="center"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center"><font size="2">Six Months Ended</font></td></tr><tr><td width="340" height="17" align="left"><font size="2"><i> </i></font></td><td colspan="5" width="163" height="17" align="center"><font size="2">June 30,</font></td><td width="9" height="17" align="center"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center"><font size="2">June 30,</font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td colspan="2" width="21" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td><td width="9" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="340" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">Total revenues</font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">13,080 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">21,889 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">23,254 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">39,632 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Less: Sales to related parties</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">21 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">686 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">41 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,228 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Sales and other operating revenues (including</font></td><td width="12" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="340" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">       consumer excise taxes)</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">13,059 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">21,203 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">23,213 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">38,404 </font></td></tr></table></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>6.        Defined Benefit Postretirement Plans<br/>The following summarizes the components of net periodic benefit cost:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="340" height="17" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="11" width="335" height="17" align="center"><font size="2">Three Months Ended June 30,</font></td></tr><tr><td width="340" height="17" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="5" width="163" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Pension Benefits</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Other Benefits</font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2008 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="340" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">Service cost</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">37 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">39 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">4 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">4 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Interest cost</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">42 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">41 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">9 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">10 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Expected return on plan assets</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(40)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(42)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> - </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> - </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Amortization:</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    – prior service cost (credit)</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">4 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">4 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(2)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">0 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    – actuarial loss (gain)</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">10 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">11 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> (2)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> (2)</font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    – net settlement/curtailment loss</font><sup><font size="1">{a}</font></sup></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">18 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Net periodic benefit cost</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">71 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">53 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">9 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">12 </font></td></tr><tr><td width="340" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="11" width="335" height="17" align="center"><font size="2">Six Months Ended June 30,</font></td></tr><tr><td width="340" height="17" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="5" width="163" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Pension Benefits</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Other Benefits</font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2008 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="340" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">Service cost</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">72 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">73 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">9 </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2">9 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Interest cost</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">84 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">80 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">20 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">22 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Expected return on plan assets</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(80)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(84)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> - </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> - </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">Amortization:</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    – prior service cost (credit)</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">7 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">7 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(3)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(4)</font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    – actuarial loss (gain)</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">16 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">15 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">(2)</font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2">1 </font></td></tr><tr><td width="340" height="17" align="left"><font size="2">    – net settlement/curtailment loss</font><sup><font size="1">{a}</font></sup></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">18 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td></tr><tr><td width="340" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Net periodic benefit cost</font><sup><font size="1"></font></sup></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">117 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">91 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">24 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">28 </font></td></tr></table></div><div><font size="2"><p>(a) The curtailment and settlement is related to our discontinued operations in Ireland, as discussed in Note 4. Pension expense related to Ireland was not material in any period presented. </p></font></div><div><font size="2"><p>During the first six months of 2009, we made contributions of $40 million to our funded pension plans. We expect to make additional contributions up to an estimated $290 million to our funded pension plans over the remainder of 2009, the majority of which will occur in the third quarter of 2009. We are still evaluating guidance issued by the Internal Revenue Service on March 31, 2009, which may cause actual contributions to differ from our estimate. Current benefit payments related to unfunded pension and other postretirement benefit plans were $8 million and $16 million during the first six months of 2009. </p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>7.        Income Taxes<br/>The following is an analysis of the effective income tax rates for the periods presented:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="468" height="18" align="left"><font size="2"> </font></td><td colspan="5" width="207" height="18" align="center"><font size="2">Six Months Ended June 30,</font></td></tr><tr><td width="468" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="19" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="19" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td><td width="19" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="468" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Statutory U.S. income tax rate</font></td><td width="75" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2"> 35 </font></td><td width="19" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">%</font></td><td width="19" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2"> 35 </font></td><td width="19" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">%</font></td></tr><tr><td width="468" height="18" align="left"><font size="2">Foreign taxes in excess of federal statutory rate</font></td><td width="75" height="18" align="right"><font size="2"> 25 </font></td><td width="19" height="18" align="left"><font size="2"> </font></td><td width="19" height="18" align="left"><font size="2"> </font></td><td width="75" height="18" align="right"><font size="2"> 14 </font></td><td width="19" height="18" align="left"><font size="2"> </font></td></tr><tr><td width="468" height="18" align="left"><font size="2">State and local income taxes, net of federal income tax effects</font></td><td width="75" height="18" align="right"><font size="2"> 1 </font></td><td width="19" height="18" align="left"><font size="2"> </font></td><td width="19" height="18" align="left"><font size="2"> </font></td><td width="75" height="18" align="right"><font size="2"> 1 </font></td><td width="19" height="18" align="left"><font size="2"> </font></td></tr><tr><td width="468" height="18" align="left"><font size="2">Other tax effects</font></td><td width="75" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 0 </font></td><td width="19" height="18" align="left"><font size="2"> </font></td><td width="19" height="18" align="left"><font size="2"> </font></td><td width="75" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> (2)</font></td><td width="19" height="18" align="left"><font size="2"> </font></td></tr><tr><td width="468" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">        Effective income tax rate </font></td><td width="75" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> 61 </font></td><td width="19" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">%</font></td><td width="19" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> 48 </font></td><td width="19" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">%</font></td></tr></table></div><div><font size="2"><p>The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income, the relative magnitude of these sources of income, and foreign currency remeasurement effects. The change in mix of liquid hydrocarbon and natural gas sales in 2009 from 2008 included more sales in jurisdictions with high tax rates. This change, as well as unfavorable foreign currency remeasurement effects, contributed to the increase in the effective income tax rate in the first six months of 2009 when compared to the same period in 2008. <br/>We are continuously undergoing examination of our U.S. federal income tax returns by the Internal Revenue Service. Such audits have been completed through the 2005 tax year. We believe adequate provision has been made for federal income taxes and interest which may become payable for years not yet settled. Further, we are routinely involved in U.S. state income tax audits and foreign jurisdiction tax audits. We believe all other audits will be resolved within the amounts paid and/or provided for these liabilities. As of June 30, 2009, our income tax returns remain subject to examination in the following major tax jurisdictions for the tax years indicated.</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="550" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">United States </font><sup><font size="1">{a}</font></sup></td><td width="125" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2">2001 - 2007</font></td></tr><tr><td width="550" height="18" align="left"><font size="2">Canada</font><sup><font size="1"></font></sup></td><td width="125" height="18" align="center"><font size="2">2000 - 2008</font></td></tr><tr><td width="550" height="18" align="left"><font size="2">Equatorial Guinea</font><sup><font size="1"></font></sup></td><td width="125" height="18" align="center"><font size="2">2006 - 2008</font></td></tr><tr><td width="550" height="18" align="left"><font size="2">Libya</font><sup><font size="1"></font></sup></td><td width="125" height="18" align="center"><font size="2">2006 - 2008</font></td></tr><tr><td width="550" height="18" align="left"><font size="2">Norway</font><sup><font size="1"></font></sup></td><td width="125" height="18" align="center"><font size="2">2007 - 2008</font></td></tr><tr><td width="550" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">United Kingdom</font><sup><font size="1"></font></sup></td><td width="125" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2007 </font></td></tr></table></div><div><font size="2"><p>(a)        Includes federal and state jurisdictions.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>8.        Comprehensive Income<br/>The following sets forth comprehensive income for the periods indicated:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="380" height="18" align="left"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td colspan="6" width="152" height="18" align="center"><font size="2">Three Months Ended</font></td><td colspan="5" width="143" height="18" align="center"><font size="2">Six Months Ended</font></td></tr><tr><td width="380" height="18" align="left"><font size="2"><i> </i></font><sup><font size="1"><i></i></font></sup></td><td colspan="6" width="152" height="18" align="center"><font size="2">June 30,</font></td><td colspan="5" width="143" height="18" align="center"><font size="2">June 30,</font></td></tr><tr><td width="380" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td colspan="2" width="67" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="67" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="67" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="67" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="380" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Net income </font><sup><font size="1"></font></sup></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">413 </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">774 </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">695 </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">1,505 </font></td></tr><tr><td width="380" height="18" align="left"><font size="2">Other comprehensive income, net of taxes:</font><sup><font size="1"></font></sup></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2"> </font></td></tr><tr><td width="380" height="18" align="left"><font size="2">     Defined benefit postretirement plans </font><sup><font size="1"></font></sup></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">19 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">(31)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">18 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">(20)</font></td></tr><tr><td width="380" height="18" align="left"><font size="2">     Derivatives</font><sup><font size="1"></font></sup></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">26 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">1 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">(4)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="55" height="18" align="right"><font size="2">4 </font></td></tr><tr><td width="380" height="18" align="left"><font size="2">     Other</font><sup><font size="1"></font></sup></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(5)</font></td></tr><tr><td width="380" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Comprehensive income </font><sup><font size="1"></font></sup></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">458 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">744 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">710 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">1,484 </font></td></tr></table></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>9.        Inventories<br/>Inventories are carried at the lower of cost or market value. The cost of inventories of crude oil, refined products and merchandise is determined primarily under the last-in, first-out (“LIFO”) method.</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="502" height="18" align="left"><font size="2"> </font></td><td colspan="2" width="82" height="18" align="center"><font size="2">June 30,</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td colspan="2" width="82" height="18" align="center"><font size="2">December 31,</font></td></tr><tr><td width="502" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="82" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="82" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="502" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Liquid hydrocarbons, natural gas and bitumen</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="70" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">1,122 </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="70" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">1,376 </font></td></tr><tr><td width="502" height="18" align="left"><font size="2">Refined products and merchandise</font></td><td width="12" height="18" align="center"><font size="2"> </font></td><td width="70" height="18" align="right"><font size="2">1,935 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="70" height="18" align="right"><font size="2">1,797 </font></td></tr><tr><td width="502" height="18" align="left"><font size="2">Supplies and sundry items</font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="70" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">441 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="70" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">334 </font></td></tr><tr><td width="502" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">        Total, at cost </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="70" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">3,498 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="70" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">3,507 </font></td></tr></table></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>10.        Fair Value Measurements<br/>Fair Values - Recurring<br/>The following table presents the assets (liabilities) accounted for at fair value on a recurring basis as of June 30, 2009, and December 31, 2008:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="340" height="18" align="left"><font size="2"> </font></td><td colspan="11" width="335" height="18" align="center"><font size="2">June 30, 2009</font></td></tr><tr><td width="340" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i> </i></font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Level 1</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Level 2</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Level 3</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Total</font></td></tr><tr><td width="340" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">     Derivative Instruments:</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="340" height="18" align="left"><font size="2">          Commodity</font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">18 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">1 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">(6)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">13 </font></td></tr><tr><td width="340" height="18" align="left"><font size="2">          Interest rate</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">(23)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">(23)</font></td></tr><tr><td width="340" height="18" align="left"><font size="2">          Foreign currency</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(22)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(22)</font></td></tr><tr><td width="340" height="18" align="left"><font size="2">               Total derivative instruments</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">18 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(21)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(29)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(32)</font></td></tr><tr><td width="340" height="18" align="left"><font size="2">      Other assets</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2 </font></td></tr><tr><td width="340" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">               Total at fair value</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">20 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(21)</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(29)</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(30)</font></td></tr><tr><td width="340" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="8" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="8" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="8" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="8" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="8" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="340" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td></tr><tr><td width="340" height="18" align="left"><font size="2"> </font></td><td colspan="11" width="335" height="18" align="center"><font size="2">December 31, 2008</font></td></tr><tr><td width="340" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i> </i></font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Level 1</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Level 2</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Level 3</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Total</font></td></tr><tr><td width="340" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">     Derivative Instruments:</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="340" height="18" align="left"><font size="2">          Commodity</font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">107 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">6 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">(55)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">58 </font></td></tr><tr><td width="340" height="18" align="left"><font size="2">          Interest rate</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">29 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">29 </font></td></tr><tr><td width="340" height="18" align="left"><font size="2">          Foreign currency</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(75)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(75)</font></td></tr><tr><td width="340" height="18" align="left"><font size="2">               Total derivative instruments</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">107 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(69)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(26)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">12 </font></td></tr><tr><td width="340" height="18" align="left"><font size="2">      Other assets</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2 </font></td></tr><tr><td width="340" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">               Total at fair value</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">109 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(69)</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(26)</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">14 </font></td></tr></table></div><div><font size="2"><p>Deposits of $17 million in broker accounts covered by master netting agreements are netted against the value to arrive at the fair values of commodity derivatives. Derivatives in Level 1 are exchange-traded contracts for crude oil, natural gas, refined products and ethanol measured at fair value with a market approach using the close-of-day settlement prices for the market. Derivatives in Level 2 are measured at fair value with a market approach using broker quotes or third-party pricing services, which have been corroborated with data from active markets. Level 3 derivatives are measured at fair value using either a market or income approach. Generally at least one input is unobservable, such as the use of an internally generated model or an external data source. <br/>Commodity derivatives in Level 3 at June 30, 2009 include two U.K. natural gas sales contracts that are accounted for as derivative instruments and crude oil options related to sales of Canadian synthetic crude oil. The fair value of the U.K. natural gas contracts is measured with an income approach by applying the difference between the contract price and the U.K. forward natural gas strip price to the expected sales volumes for the remaining contract term. These contracts originated in the early 1990s and expire in September 2009. The contract prices are reset annually in October based on the previous twelve-month changes in a basket of energy and other indices. Consequently, the prices under these contracts do not track forward natural gas prices. The crude oil options, which expire December 2009, are measured at fair value using a Black-Scholes option pricing model, an income approach that utilizes prices from an active market and market volatility calculated by a third-party service.<br/>Also in Level 3 are commodity derivatives intended to manage price risk related to acquisition of ethanol for blending and light products fixed priced sales contracts. The fair value of these derivatives is measured using quoted market prices adjusted for broker market assessments.<br/><br/>The fair value of interest rate swaps is measured using broker quotes or quotes from a reporting service which are not corroborated to data from an active market; therefore these inputs are classified as Level 3.<br/><br/>        The following is a reconciliation of the net beginning and ending balances recorded for derivative instruments classified as Level 3 in the fair value hierarchy for the three and six months ended June 30, 2009:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="540" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td rowspan="2" width="123" height="38" align="center"><font size="2">Three Months Ended June 30, 2009</font></td></tr><tr><td width="540" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="540" height="20" align="left" style="border-top: 1px solid #000000;"><font size="2">Beginning balance</font></td><td width="12" height="20" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="123" height="20" align="right" style="border-top: 1px solid #000000;"><font size="2"> 9 </font></td></tr><tr><td width="540" height="18" align="left"><font size="2">     Total realized and unrealized losses:</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="123" height="18" align="right"><font size="2"> </font></td></tr><tr><td width="540" height="20" align="left"><font size="2">          Included in net income </font></td><td width="12" height="20" align="left"><font size="2"> </font></td><td width="123" height="20" align="right"><font size="2"> (33)</font></td></tr><tr><td width="540" height="20" align="left"><font size="2">     Purchases, sales, issuances and settlements, net</font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="123" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> (5)</font></td></tr><tr><td width="540" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Ending balance</font></td><td width="12" height="20" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="123" height="20" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> (29)</font></td></tr><tr><td width="540" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="123" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="540" height="20" align="left"><font size="2"> </font></td><td width="12" height="20" align="left"><font size="2"> </font></td><td rowspan="2" width="123" height="40" align="center"><font size="2">Six Months Ended June 30, 2009</font></td></tr><tr><td width="540" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="540" height="20" align="left" style="border-top: 1px solid #000000;"><font size="2">Beginning balance</font></td><td width="12" height="20" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="123" height="20" align="right" style="border-top: 1px solid #000000;"><font size="2"> (26)</font></td></tr><tr><td width="540" height="20" align="left"><font size="2">     Total realized and unrealized losses:</font></td><td width="12" height="20" align="left"><font size="2"> </font></td><td width="123" height="20" align="right"><font size="2"> </font></td></tr><tr><td width="540" height="18" align="left"><font size="2">          Included in net income </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="123" height="18" align="right"><font size="2"> 44 </font></td></tr><tr><td width="540" height="18" align="left"><font size="2">     Purchases, sales, issuances and settlements, net</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="123" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> (47)</font></td></tr><tr><td width="540" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Ending balance</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="123" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> (29)</font></td></tr></table></div><div><font size="2"><p>Net income for the second quarter and first six months of 2009 included unrealized losses of $4 million and unrealized gains of $76 million, respectively, related to instruments held at June 30, 2009. Amounts reported in net income are classified as sales and other operating revenues or cost of revenues for commodity derivative instruments, as net interest and other financing income for interest rate derivative instruments and as cost of revenues for foreign currency derivatives, except those designated as hedges of future capital expenditures. </p></font></div><div><font size="2"><p>Fair Values - Nonrecurring<br/>The following table shows the June 30, 2009 values of assets measured at fair value on a nonrecurring basis during the second quarter of 2009 by major category: </p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="204" height="18" align="left"><font size="2"> </font></td><td colspan="11" width="375" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">June 30, 2009</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="75" height="18" align="left"><font size="2"> </font></td></tr><tr><td width="204" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"><i> </i></font></td><td width="75" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Total</font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"><i> </i></font></td><td width="75" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Level 1</font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Level 2</font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">Level 3</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Impairment</font></td></tr><tr><td width="204" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="9" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="204" height="20" align="left"><font size="2">Long-lived assets held for sale</font></td><td width="12" height="20" align="left"><font size="2">$</font></td><td width="75" height="20" align="right"><font size="2">311 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="12" height="20" align="left"><font size="2">$</font></td><td width="75" height="20" align="right"><font size="2">0 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="12" height="20" align="left"><font size="2">$</font></td><td width="75" height="20" align="right"><font size="2">0 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="12" height="20" align="left"><font size="2">$</font></td><td width="75" height="20" align="right"><font size="2">311 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="12" height="20" align="left"><font size="2">$</font></td><td width="75" height="20" align="right"><font size="2">154 </font></td></tr><tr><td width="204" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Long-lived assets held for use</font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2">5 </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2">5 </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="75" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2">15 </font></td></tr></table></div><div><font size="2"><p>The impairment charge related to the sale of the Corrib natural gas development offshore Ireland was based on a fair value assessment of the anticipated sale proceeds (see Note 4). At closing on July 30, 2009, the initial $100 million payment was received. Additional proceeds of $135 million to $300 million will be received on the earlier of first commercial gas or December 31, 2012. These proceeds were classified as Level 3 inputs because a portion is variable in timing and amount depending upon timing of first gas. The Level 3 inputs were valued using an income method that incorporated a probability-weighted approach with respect to timing of first commercial gas and an associated sliding scale on the amount of corresponding consideration specified in the sales agreement: the longer it takes to achieve first gas, the lower the amount of the consideration. The minimum amount due of $135 million is payable no later than December 31, 2012. <br/>The ultimate timing of the gain or loss recognized related to the sale of the Corrib development will depend on the resolution by accounting standard-setters of the appropriate accounting for contingent consideration. The EITF is currently deliberating the appropriate accounting treatment for contingent consideration by sellers. In connection with that deliberation, the EITF has asked the FASB staff for interpretative guidance on the initial recognition of contingent consideration by sellers. The timing of any further gain or loss recognition will depend on the resolution reached by the FASB staff and the EITF and may or may not require a reassessment of the fair value of the contingent consideration each reporting period. <br/>Several long-lived assets held for use were evaluated for impairment in the second quarter of 2009 due to reductions in estimated reserves and declining natural gas prices. An impairment was required on one natural gas field in East Texas. Fair value of the asset was measured using an income approach based upon internal estimates of future production levels, prices and discount rate, which are Level 3 inputs. </p></font></div><div><font size="2"><p>Fair Values - Reported<br/>The following table summarizes financial instruments, excluding the derivative financial instruments, and their reported fair value by individual balance sheet line item at June 30, 2009 and December 31, 2008:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="395" height="21" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="49" height="21" align="left"><font size="2"> </font></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="55" height="21" align="left"><font size="2"> </font></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="49" height="21" align="left"><font size="2"> </font></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="9" height="21" align="left"><font size="2"> </font></td><td width="55" height="21" align="left"><font size="2"> </font></td></tr><tr><td width="395" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="left"><font size="2"> </font></td><td colspan="5" width="131" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">June 30, 2009</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td colspan="5" width="131" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">December 31, 2008</font></td></tr><tr><td width="395" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2">Fair</font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2">Carrying</font></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2">Fair</font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2">Carrying</font></td></tr><tr><td width="395" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font><sup><font size="1"><i></i></font></sup></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Value</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Amount</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Value</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Amount</font></td></tr><tr><td width="395" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Financial assets</font><sup><font size="1"></font></sup></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="395" height="18" align="left"><font size="2">     Receivables from United States Steel, including current portion</font><sup><font size="1"></font></sup></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2">$</font></td><td width="49" height="18" align="right"><font size="2"> 470 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2">$</font></td><td width="55" height="18" align="right"><font size="2"> 481 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2">$</font></td><td width="49" height="18" align="right"><font size="2"> 438 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2">$</font></td><td width="55" height="18" align="right"><font size="2"> 492 </font></td></tr><tr><td width="395" height="18" align="left"><font size="2">     Other noncurrent assets</font><sup><font size="1">{a}</font></sup></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 405 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 217 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 286 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 113 </font></td></tr><tr><td width="395" height="4" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="395" height="20" align="left"><font size="2">          Total financial assets </font><sup><font size="1"></font></sup></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="49" height="20" align="right"><font size="2"> 875 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="55" height="20" align="right"><font size="2"> 698 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="49" height="20" align="right"><font size="2"> 724 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="55" height="20" align="right"><font size="2"> 605 </font></td></tr><tr><td width="395" height="7" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="49" height="7" align="left"><font size="2"> </font></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="55" height="7" align="left"><font size="2"> </font></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="49" height="7" align="left"><font size="2"> </font></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="9" height="7" align="left"><font size="2"> </font></td><td width="55" height="7" align="left"><font size="2"> </font></td></tr><tr><td width="395" height="20" align="left"><font size="2">Financial liabilities</font><sup><font size="1"></font></sup></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="49" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="55" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="49" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="55" height="20" align="left"><font size="2"> </font></td></tr><tr><td width="395" height="20" align="left"><font size="2">     Long-term debt, including current portion</font><sup><font size="1">{b}</font></sup></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 8,508 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 8,333 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 5,683 </font></td><td width="9" height="20" align="left"><font size="2"> </font></td><td width="9" height="20" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="20" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 6,854 </font></td></tr><tr><td width="395" height="4" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="49" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="55" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="395" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">          Total financial liabilities </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="49" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 8,508 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 8,333 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="49" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 5,683 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="55" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> 6,854 </font></td></tr></table></div><div><font size="2"><p>(a)         Includes restricted cash, cost method investments and miscellaneous long-term receivables or deposits of which $132 million related to deposits in property exchange trusts.<br/>(b)        Excludes capital leases.<br/>Our current assets and liabilities accounts contain financial instruments, the most significant of which are trade accounts receivables and payables. We believe the carrying values of our current assets and liabilities approximate fair value, with the exception of the current portion of receivables from United States Steel and the current portion of our long-term debt, which is reported above. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our investment-grade credit rating, and (3) our historical incurrence of and expected future insignificance of bad debt expense, which includes an evaluation of counterparty credit risk. <br/>The fair value of the receivables from United States Steel is measured using an income approach that discounts the future expected payments over the remaining term of the obligations. Because this asset is not publicly-traded and not easily transferable, a hypothetical market based upon United States Steel’s borrowing rate curve is assumed and the majority of inputs to the calculation are Level 3. The industrial revenue bonds are to be redeemed on or before December 31, 2011.<br/>The majority of our restricted cash represents cash accounts that earn interest or will be held for a short time; therefore, the balance approximates fair value. Other financial assets included in the other noncurrent assets line include cost method investments and miscellaneous long-term receivables or deposits. Fair value for the cost method investments is measured using an income approach. Estimated future cash flows, obtained from the partially owned companies, are discounted at an appropriate discount rate to obtain the fair value. We may adjust the companies’ estimates based upon current market conditions. Long-term receivables and deposits are measured using an income approach. The expected timing of payments is scheduled and then discounted using a rate deemed appropriate.<br/>Over 75 percent of our long-term debt instruments are publicly-traded. A market approach, based upon quotes from major financial institutions is used to measure the fair value of such debt. Because these quotes cannot be independently verified to the market they are considered Level 3 inputs. The fair value of our debt that is not publicly-traded is measured using an income approach. The future debt service payments are discounted using the rate at which we currently expect to borrow. All inputs to this calculation are Level 3.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>11.        Derivatives<br/>We may use derivatives to manage our exposure to commodity price risk, interest rate risk and foreign currency risk. Derivative instruments are recorded at fair value. Derivative instruments on our consolidated balance sheet are reported on a net basis by brokerage firm, as permitted by master netting agreements. For further information regarding the fair value measurement of derivative instruments see Note 10. The following table presents the gross fair values of derivative instruments, excluding cash collateral, and where they appear on the consolidated balance sheet as of June 30, 2009:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="202" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="77" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Asset</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Liability</font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"><b>Net Asset</b></font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="215" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Balance Sheet Location</font></td></tr><tr><td width="202" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"><b>Cash Flow Hedges</b></font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="215" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="202" height="18" align="left"><font size="2">     Foreign currency</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2">Other current assets</font></td></tr><tr><td width="202" height="18" align="left"><font size="2">Total Designated Hedges</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">1 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">1 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2"><b> </b></font></td></tr><tr><td width="202" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="215" height="4" align="left"><font size="2"> </font></td></tr><tr><td width="202" height="18" align="left"><font size="2"><b>Not Designated as Hedges</b></font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="center"><font size="2"><b> </b></font></td></tr><tr><td width="202" height="18" align="left"><font size="2">     Commodity</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">292 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(270)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">22 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2">Other current assets</font></td></tr><tr><td width="202" height="18" align="left"><font size="2">Total Not Designated as Hedges</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">292 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(270)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">22 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="center"><font size="2"> </font></td></tr><tr><td width="202" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="215" height="4" align="left"><font size="2"> </font></td></tr><tr><td width="202" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">     Total </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">293 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(270)</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">23 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="215" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td></tr></table></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="202" height="33" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="77" height="33" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Asset</font></td><td width="9" height="33" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="33" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Liability</font></td><td width="9" height="33" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="33" align="center" style="border-bottom: 1px solid #000000;"><font size="2"><b>Net Liability</b></font></td><td width="9" height="33" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="215" height="33" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Balance Sheet Location</font></td></tr><tr><td width="202" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"><b>Cash Flow Hedges</b></font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="215" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"><b> </b></font></td></tr><tr><td width="202" height="18" align="left"><font size="2">     Foreign currency</font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">(23)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">(23)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2">Other current liabilities</font></td></tr><tr><td width="202" height="18" align="left"><font size="2"><b>Fair Value Hedges</b></font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2"><b> </b></font></td></tr><tr><td width="202" height="18" align="left"><font size="2">     Commodity</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">(7)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">(7)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2">Other current liabilities</font></td></tr><tr><td width="202" height="18" align="left"><font size="2">     Interest rate</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(23)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(23)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2">Deferred credits and other liabilities</font></td></tr><tr><td width="202" height="18" align="left"><font size="2">Total Designated Hedges</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(53)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(53)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2"><b> </b></font></td></tr><tr><td width="202" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="215" height="4" align="left"><font size="2"> </font></td></tr><tr><td width="202" height="18" align="left"><font size="2"><b>Not Designated as Hedges</b></font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="center"><font size="2"> </font></td></tr><tr><td width="202" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left"><font size="2"> </font></td><td width="65" height="4" align="left"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="215" height="4" align="left"><font size="2"> </font></td></tr><tr><td width="202" height="18" align="left"><font size="2">     Commodity</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">8 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(27)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(19)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="left"><font size="2">Other current liabilities</font></td></tr><tr><td width="202" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="12" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="4" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="4" align="left"><font size="2"> </font></td><td width="215" height="4" align="left"><font size="2"> </font></td></tr><tr><td width="202" height="18" align="left"><font size="2">Total Not Designated as Hedges</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">8 </font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(27)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(19)</font></td><td width="9" height="18" align="left"><font size="2"> </font></td><td width="215" height="18" align="center"><font size="2"> </font></td></tr><tr><td width="202" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">     Total </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">8 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(80)</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(72)</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="215" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"><b> </b></font></td></tr></table></div><div><font size="2"><p>Derivatives Designated as Cash Flow Hedges<br/>We also use foreign currency forwards and options to hedge anticipated transactions, primarily expenditures for capital projects, in certain foreign currencies and designate them cash flow hedges. As of June 30, 2009, the following foreign currency forwards were outstanding:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="250" height="36" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="224" height="36" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Period</font></td><td width="9" height="36" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="36" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="70" height="36" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Notional Amount</font></td><td width="110" height="36" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Weighted Average Forward Rate </font></td></tr><tr><td width="250" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2">Foreign Currency Forwards:</font></td><td width="224" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="50" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="20" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="250" height="17" align="left"><font size="2">    Dollar (Canada)</font></td><td width="224" height="17" align="center"><font size="2">July 2009 - February 2010</font></td><td width="9" height="17" align="center"><font size="2"> </font></td><td width="12" height="17" align="center"><font size="2">$</font></td><td width="50" height="17" align="right"><font size="2">275 </font></td><td width="20" height="17" align="right"><font size="2"> </font></td><td width="110" height="17" align="center"><font size="2">1.069 </font></td></tr><tr><td width="250" height="17" align="left"><font size="2">    Euro</font></td><td width="224" height="17" align="center"><font size="2">July 2009- June 2010</font></td><td width="9" height="17" align="center"><font size="2"> </font></td><td width="12" height="17" align="center"><font size="2">$</font></td><td width="50" height="17" align="right"><font size="2">6 </font></td><td width="20" height="17" align="right"><font size="2"> </font></td><td width="110" height="17" align="center"><font size="2">1.278 </font></td></tr><tr><td width="250" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">    Kroner (Norway)</font></td><td width="224" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">July 2009 - November 2009</font></td><td width="9" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="50" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">40 </font></td><td width="20" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">6.285 </font></td></tr></table></div><div><font size="2"><p>(a)        Foreign currency to U.S. dollar. <br/>(b)        U.S. dollar to foreign currency.<br/>We may use interest rate derivative instruments to manage the market risk of interest rate movements on anticipated borrowings. No such derivatives were outstanding at June 30, 2009. In recent past transactions, such derivatives have been outstanding for a period of less than one month. <br/>For derivatives qualifying as hedges of future cash flows, the effective portion of any changes in fair value is recognized in other comprehensive income (“OCI”) and is reclassified to net income when the underlying forecasted transaction is recognized in net income. Any ineffective portion of cash flow hedges is recognized in net income as it occurs. For discontinued cash flow hedges, prospective changes in the fair value of the derivative are recognized in net income. The accumulated gain or loss recognized in OCI at the time a hedge is discontinued continues to be deferred until the original forecasted transaction occurs. However, if it is determined that the likelihood of the original forecasted transaction occurring is no longer probable, the entire accumulated gain or loss recognized in OCI is immediately reclassified into net income. <br/>Approximately $1 million in losses are expected to be reclassified from accumulated other comprehensive income (“AOCI”) over the next 12 months. The ineffective portion of currently outstanding cash flow hedges was less than $1 million; therefore, ineffectiveness is not reported in the tables below. In the second quarter and six months ended June 30, 2009, no significant cash flow hedges were discontinued.<br/>The following table summarizes the effect of derivative instruments designated as hedges of cash flows in other comprehensive income:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="414" height="18" align="left"><font size="2"> </font></td><td colspan="5" width="261" height="18" align="center"><font size="2">Gain (Loss) in OCI</font></td></tr><tr><td width="414" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="126" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Three Months Ended</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="126" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Six Months Ended</font></td></tr><tr><td width="414" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Foreign currency</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">30 </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">18 </font></td></tr><tr><td width="414" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Interest rate</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(15)</font></td></tr></table></div><div><font size="2"><p>The following table summarizes the effect of AOCI reclasses related to derivative instruments designated as hedges of cash flows in our consolidated statement of income:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="114" height="18" align="left"><font size="2"> </font></td><td width="300" height="18" align="left"><font size="2"> </font></td><td colspan="5" width="261" height="18" align="center"><font size="2">Gain (Loss) reclassified from</font></td></tr><tr><td width="114" height="18" align="left"><font size="2"> </font></td><td width="300" height="18" align="left"><font size="2"> </font></td><td colspan="5" width="261" height="18" align="center"><font size="2">AOCI into Net Income</font></td></tr><tr><td width="114" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="300" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Income Statement Location</font></td><td colspan="2" width="126" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Three Months Ended</font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="126" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Six Months Ended</font></td></tr><tr><td width="114" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Foreign currency</font></td><td width="300" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Discontinued operations</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">1 </font></td><td width="9" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">1 </font></td></tr><tr><td width="114" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Interest rate</font></td><td width="300" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Net interest and other financing costs</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">0 </font></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(1)</font></td></tr></table></div><div><font size="2"><p>Derivatives Designated as Fair Value Hedges <br/>We use interest rate swaps to manage the mix of fixed and floating interest rate debt in our portfolio. As of June 30, 2009, we had multiple interest rate swap agreements with a total notional amount of $1.25 billion at a weighted-average, LIBOR-based, floating rate of 4.49 percent. For such derivatives designated as hedges of fair value, changes in the fair values of both the hedged item and the related derivative are recognized immediately in net income with an offsetting effect included in the basis of the hedged item. The net effect is to report in net income the extent to which the hedge is not effective in achieving offsetting changes in fair value.<br/>We use commodity derivative instruments to manage the price risk for natural gas that is purchased to be marketed with our own natural gas production. These are also designated as fair value hedges. As of June 30, 2009, commodity derivative instruments for a weighted average 5,000 mcf (“thousand cubic feet”) were outstanding for the period July 2009 through March 2010.<br/>The following table summarizes the pretax effect of derivative instruments designated as hedges of fair value in our consolidated statement of income for the three months and six months ended June 30, 2009:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="125" height="18" align="left"><font size="2"> </font></td><td width="15" height="18" align="center"><font size="2"> </font></td><td width="6" height="18" align="center"><font size="2"> </font></td><td width="275" height="18" align="left"><font size="2"> </font></td><td colspan="5" width="254" height="18" align="center"><font size="2">Gain (Loss) </font></td></tr><tr><td width="125" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="15" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="6" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="275" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Income Statement Location</font></td><td colspan="2" width="122" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Three Months Ended</font></td><td colspan="3" width="132" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Six Months Ended</font></td></tr><tr><td width="125" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Derivative</font></td><td width="15" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="6" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="275" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="125" height="18" align="left"><font size="2">     Commodity</font></td><td width="15" height="18" align="left"><font size="2"> </font></td><td width="6" height="18" align="left"><font size="2"> </font></td><td width="275" height="18" align="left"><font size="2">Sales and other operating revenues</font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="110" height="18" align="right"><font size="2">(4)</font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="110" height="18" align="right"><font size="2">(10)</font></td></tr><tr><td width="125" height="18" align="left"><font size="2">     Interest rate</font></td><td width="15" height="18" align="left"><font size="2"> </font></td><td width="6" height="18" align="left"><font size="2"> </font></td><td width="275" height="18" align="left"><font size="2">Net interest and other financing costs</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(29)</font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(29)</font></td></tr><tr><td width="125" height="18" align="left"><font size="2"> </font></td><td width="15" height="18" align="left"><font size="2"> </font></td><td width="6" height="18" align="left"><font size="2"> </font></td><td width="275" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(33)</font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">(39)</font></td></tr><tr><td width="125" height="18" align="left"><font size="2">Hedged Item</font></td><td width="15" height="18" align="left"><font size="2"> </font></td><td width="6" height="18" align="left"><font size="2"> </font></td><td width="275" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="125" height="18" align="left"><font size="2">     Commodity</font></td><td width="15" height="18" align="left"><font size="2"> </font></td><td width="6" height="18" align="left"><font size="2"> </font></td><td width="275" height="18" align="left"><font size="2">Sales and other operating revenues</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="110" height="18" align="right"><font size="2">4 </font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="110" height="18" align="right"><font size="2">10 </font></td></tr><tr><td width="125" height="18" align="left"><font size="2">     Interest rate</font></td><td width="15" height="18" align="left"><font size="2"> </font></td><td width="6" height="18" align="left"><font size="2"> </font></td><td width="275" height="18" align="left"><font size="2">Net interest and other financing costs</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">29 </font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">29 </font></td></tr><tr><td width="125" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="15" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="6" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="275" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">33 </font></td><td width="10" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="110" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">39 </font></td></tr></table></div><div><font size="2"><p>The interest rate swaps have no hedge ineffectiveness. Hedge ineffectiveness related to the commodity derivatives is less than $1 million and is therfore not reflected in the above table.<br/>Derivatives not Designated as Hedges<br/>Changes in the fair value of derivatives not designated as hedges are recognized immediately in net income. Some derivative instruments not designated as hedges may be classified as trading activities, for which all related effects, are recognized in net income and are classified as other income.<br/>Two long-term natural gas delivery commitment contracts in the U.K. are classified as derivative instruments. These contracts, which expire September 2009, contain pricing provisions that are not clearly and closely related to the underlying commodity and therefore must be accounted for as derivative instruments. Crude oil options entered by Western Oil Sands Inc. (“Western”) to protect against price decreases on a portion of future sales of synthetic crude oil were not designated as hedges upon our acquisition of Western in October 2007. In the first quarter of 2009, we sold derivative instruments which effectively offset the open put options for the remainder of 2009. The following table summarizes the put and call options outstanding at June 30, 2009:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="598" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Option Contract Volumes (Barrels per day)</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="598" height="18" align="left"><font size="2">    Put options purchased</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">20,000 </font></td></tr><tr><td width="598" height="18" align="left"><font size="2">    Put options sold</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">20,000 </font></td></tr><tr><td width="598" height="18" align="left"><font size="2">    Call options sold</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="right"><font size="2">15,000 </font></td></tr><tr><td width="598" height="18" align="left"><font size="2">Average Exercise Price (Dollars per barrel)</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="65" height="18" align="left"><font size="2"> </font></td></tr><tr><td width="598" height="18" align="left"><font size="2">    Put options</font></td><td width="12" height="18" align="left"><font size="2">$</font></td><td width="65" height="18" align="right"><font size="2">50.50 </font></td></tr><tr><td width="598" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">    Call options</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">90.50 </font></td></tr></table></div><div><font size="2"><p>We use commodity derivative instruments to manage price risk on inventories and natural gas held in storage before it is sold. We also use derivative instruments to manage price risk related to fixed price sales of refined products, the acquisition of foreign-sourced crude oil, the acquisition of feedstocks used in the refining process and the acquisition of ethanol for blending with refined products. The following table summarizes volumes related to our net open positions as of June 30, 2009:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="25" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="585" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Buy/(Sell)</font></td></tr><tr><td colspan="2" width="610" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Crude oil (million barrels)</font></td><td width="65" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2"> 2.1 </font></td></tr><tr><td colspan="2" width="610" height="18" align="left"><font size="2">Refined products (million barrels)</font></td><td width="65" height="18" align="right"><font size="2"> 3.6 </font></td></tr><tr><td colspan="2" width="610" height="18" align="left"><font size="2">Natural gas (billion cubic feet)</font></td><td width="65" height="18" align="left"><font size="2"> </font></td></tr><tr><td width="25" height="18" align="left"><font size="2"> </font></td><td width="585" height="18" align="left"><font size="2">Price</font></td><td width="65" height="18" align="right"><font size="2"> (2.4)</font></td></tr><tr><td width="25" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="585" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Basis</font></td><td width="65" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2"> (1.3)</font></td></tr></table></div><div><font size="2"><p>The following table summarizes the effect of all derivative instruments not designated as hedges in our consolidated statement of income for the three months and six months ended June 30, 2009:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="80" height="18" align="left"><font size="2"> </font></td><td width="70" height="18" align="left"><font size="2"> </font></td><td width="261" height="18" align="center"><font size="2"> </font></td><td colspan="5" width="264" height="18" align="center"><font size="2">Gain (Loss)</font></td></tr><tr><td width="80" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td width="70" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i> </i></font></td><td width="261" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Income Statement Location</font></td><td colspan="2" width="127" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Three Months Ended</font></td><td width="10" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="127" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Six Months Ended</font></td></tr><tr><td width="80" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Commodity</font></td><td width="70" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="261" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Sales and other operating revenues</font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="115" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">(1)</font></td><td width="10" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="115" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">92 </font></td></tr><tr><td width="80" height="18" align="left"><font size="2">Commodity</font></td><td width="70" height="18" align="left"><font size="2"> </font></td><td width="261" height="18" align="left"><font size="2">Cost of revenues</font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="115" height="18" align="right"><font size="2">17 </font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left"><font size="2"> </font></td><td width="115" height="18" align="right"><font size="2">(42)</font></td></tr><tr><td width="80" height="18" align="left"><font size="2">Commodity</font></td><td width="70" height="18" align="left"><font size="2"> </font></td><td width="261" height="18" align="left"><font size="2">Other income</font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="115" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">2 </font></td><td width="10" height="18" align="left"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="115" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">3 </font></td></tr><tr><td width="80" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="70" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="261" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="115" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">18 </font></td><td width="10" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="115" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">53 </font></td></tr></table></div><div><font size="2"><p>Contingent Credit Features<br/>Our derivative instruments contain no significant contingent credit features.<br/>Concentrations of Credit Risk<br/>All of our financial instruments, including derivatives, involve elements of credit and market risk. The most significant portion of our credit risk relates to nonperformance by counterparties. The counterparties to our financial instruments consist primarily of major financial institutions and companies within the energy industry. To manage counterparty risk associated with financial instruments, we select and monitor counterparties based on our assessment of their financial strength and on credit ratings, if available. Additionally, we limit the level of exposure with any single counterparty.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>12.        Debt<br/>At June 30, 2009, we had no borrowings against our revolving credit facility and no commercial paper outstanding under our U.S. commercial paper program that is backed by the revolving credit facility. <br/> On February 17, 2009, we issued $700 million aggregate principal amount of senior notes bearing interest at 6.5 percent with a maturity date of February 15, 2014 and $800 million aggregate principal amount of senior notes bearing interest at 7.5 percent with a maturity date of February 15, 2019. Interest on both issues is payable semi-annually beginning August 15, 2009.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>13.        Stock-Based Compensation Plans<br/>The following table presents a summary of stock option award and restricted stock award activity for the six month period ended June 30, 2009:</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="230" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td colspan="5" width="225" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Stock Options</font></td><td width="19" height="18" align="left"><font size="2"> </font></td><td colspan="4" width="225" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2">Restricted Stock</font></td></tr><tr><td width="230" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td rowspan="3" width="90" height="54" align="center" style="border-top: 1px solid #000000;"><font size="2">Number of Shares </font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td rowspan="3" width="90" height="54" align="center" style="border-top: 1px solid #000000;"><font size="2">Weighted Average Exercise Price</font></td><td width="19" height="18" align="center"><font size="2"> </font></td><td rowspan="3" width="90" height="54" align="center" style="border-top: 1px solid #000000;"><font size="2"> Awards</font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td rowspan="3" width="114" height="54" align="center" style="border-top: 1px solid #000000;"><font size="2">Weighted Average Grant Date Fair Value</font></td></tr><tr><td width="230" height="18" align="left"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center"><font size="2"> </font></td><td width="19" height="18" align="center"><font size="2"> </font></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center"><font size="2"> </font></td></tr><tr><td width="230" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="19" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="230" height="18" align="left" style="border-top: 1px solid #000000;"><font size="2">Outstanding at December 31, 2008</font><sup><font size="1"></font></sup></td><td width="90" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">13,841,748 </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="90" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">37.59 </font></td><td width="19" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="90" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">2,049,255 </font></td><td width="9" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-top: 1px solid #000000;"><font size="2">47.72 </font></td></tr><tr><td width="230" height="18" align="left"><font size="2">  Granted </font><sup><font size="1">{a}</font></sup></td><td width="90" height="18" align="right"><font size="2">4,970,500 </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center"><font size="2"> </font></td><td width="90" height="18" align="right"><font size="2">27.62 </font></td><td width="19" height="18" align="center"><font size="2"> </font></td><td width="90" height="18" align="right"><font size="2">227,935 </font></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center"><font size="2"> </font></td><td width="114" height="18" align="right"><font size="2">24.15 </font></td></tr><tr><td width="230" height="18" align="left"><font size="2">  Options Exercised/Stock Vested</font><sup><font size="1"></font></sup></td><td width="90" height="18" align="right"><font size="2">(28,610)</font><sup><font size="1"></font></sup></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center"><font size="2"> </font></td><td width="90" height="18" align="right"><font size="2">15.86 </font></td><td width="19" height="18" align="center"><font size="2"> </font></td><td width="90" height="18" align="right"><font size="2">(282,291)</font></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center"><font size="2"> </font></td><td width="114" height="18" align="right"><font size="2">43.13 </font></td></tr><tr><td width="230" height="18" align="left"><font size="2">  Canceled</font><sup><font size="1"></font></sup></td><td width="90" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(141,990)</font><sup><font size="1"></font></sup></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="90" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">52.41 </font></td><td width="19" height="18" align="center"><font size="2"> </font></td><td width="90" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(69,995)</font></td><td width="9" height="18" align="center"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="114" height="18" align="right" style="border-bottom: 1px solid #000000;"><font size="2">43.15 </font></td></tr><tr><td width="230" height="18" align="left" style="border-bottom: 1px solid #000000;"><font size="2">Outstanding at June 30, 2009</font><sup><font size="1"></font></sup></td><td width="90" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">18,641,648 </font><sup><font size="1"></font></sup></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="90" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">34.85 </font></td><td width="19" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="90" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">1,924,904 </font></td><td width="9" height="18" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="18" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="114" height="18" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><font size="2">45.77 </font></td></tr></table></div><div><font size="2"><p>(a) The weighted average grant date fair value of stock option awards granted was $7.67 per share.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>14.        Commitments and Contingencies<br/>We are the subject of, or party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. The ultimate resolution of these contingencies could, individually or in the aggregate, be material to our consolidated financial statements. However, management believes that we will remain a viable and competitive enterprise even though it is possible that these contingencies could be resolved unfavorably. Certain of our commitments are discussed below. <br/> Litigation – We settled a number of lawsuits pertaining to methyl tertiary-butyl ether (“MTBE”) in 2008. Presently, we are a defendant, along with other refining companies, in 26 cases arising in four states alleging damages for MTBE contamination.  Of the 26 cases in which we remain a defendant, 20 are pending in New York, 4 in Florida and 1 in Illinois. These 25 cases allege damages to water supply wells, similar to the damages claimed in the cases that were settled in 2008. In the other remaining case, the State of New Jersey is seeking natural resources damages allegedly resulting from contamination of groundwater by MTBE. This is the only MTBE contamination case in which we are a defendant and natural resources damages are sought. Thirteen of the 20 New York cases have been dismissed from the multi-district litigation (“MDL”) and re-filed in the state courts of Nassau and Suffolk Counties, New York. The remaining cases, like the cases that were settled in 2008, are consolidated in the MDL in the Southern District of New York for pretrial proceedings. We are vigorously defending these cases. We have engaged in settlement discussions related to the majority of the cases. We do not expect our share of liability, if any, for the remaining cases to significantly impact our consolidated results of operations, financial position or cash flows. We voluntarily discontinued producing MTBE in 2002.<br/>We are currently a party in two qui tam cases, which allege that federal and Indian leases violated the False Claims Act with respect to the reporting and payment of royalties on natural gas and natural gas liquids. A qui tam action is an action in which the relator files suit on behalf of himself as well as the federal government. One case is U.S. ex rel Harrold E. Wright v. Agip Petroleum Co. et al. which is primarily a gas valuation case. A settlement agreement has been reached, but not yet finalized. Such settlement is not expected to significantly impact our consolidated results of operations, financial position or cash flows. The other case is U.S. ex rel Jack Grynberg v. Alaska Pipeline, et al. involving allegations of natural gas measurement. This case was dismissed by the trial court and the dismissal has been affirmed by the 10th Circuit Court of Appeals. The relator is expected to file an appeal to the U.S. Supreme Court. The outcome of this case is not expected to significantly impact our consolidated results of operations, financial position or cash flows.<br/>A lawsuit filed in the U.S. District Court for the Southern District of West Virginia alleged that our Catlettsburg, Kentucky, refinery distributed contaminated gasoline to wholesalers and retailers for a period prior to August 2003, causing permanent damage to storage tanks, dispensers and related equipment, resulting in lost profits, business disruption and personal and real property damages.  Following the incident, we conducted remediation operations at affected facilities and there was no permanent damage to wholesaler and retailer equipment. Class action certification was granted in August 2007. A settlement of the case was approved by the court on March 18, 2009, payment has been made and the case has been dismissed with prejudice. The settlement did not significantly impact our consolidated results of operations, financial position or cash flows.<br/>Contractual commitments – At June 30, 2009, Marathon’s contract commitments to acquire property, plant and equipment totaled $3,407 million. </p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>15.        Supplemental Cash Flow Information</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="512" height="17" align="left"><font size="2"> </font></td><td colspan="5" width="163" height="17" align="center"><font size="2">Six Months Ended June 30,</font></td></tr><tr><td width="512" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"><i>(In millions)</i></font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2009 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td colspan="2" width="77" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2">2008 </font></td></tr><tr><td width="512" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="512" height="17" align="left"><font size="2"><b>Net cash provided from operating activities included:</b></font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2"> </font></td><td width="65" height="17" align="right"><font size="2"> </font></td></tr><tr><td width="512" height="17" align="left"><font size="2">        Interest paid (net of amounts capitalized)</font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">0 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">54 </font></td></tr><tr><td width="512" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">        Income taxes paid to taxing authorities </font></td><td width="12" height="17" align="center" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,050 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">1,498 </font></td></tr><tr><td width="512" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"><b>Short term debt, net:</b></font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="512" height="17" align="left"><font size="2">        Commercial paper - issuances</font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">897 </font></td><td width="9" height="17" align="left"><font size="2"> </font></td><td width="12" height="17" align="left"><font size="2">$</font></td><td width="65" height="17" align="right"><font size="2">28,992 </font></td></tr><tr><td width="512" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">                                        - repayments</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(897)</font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">(28,012)</font></td></tr><tr><td width="512" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"><b>Noncash investing and financing activities:</b></font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="9" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-top: 1px solid #000000;"><font size="2"> </font></td><td width="65" height="17" align="right" style="border-top: 1px solid #000000;"><font size="2"> </font></td></tr><tr><td width="512" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">        Capital lease and sale-leaseback financing obligations</font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">47 </font></td><td width="9" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2"> </font></td><td width="12" height="17" align="left" style="border-bottom: 1px solid #000000;"><font size="2">$</font></td><td width="65" height="17" align="right" style="border-bottom: 1px solid #000000;"><font size="2">32 </font></td></tr></table></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>16.        Accounting Standards Not Yet Adopted</p></font></div><div><font size="2"><p>SFAS No. 167 – In June 2009, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard (“SFAS”) No. 167, “Amendments of FASB Interpretation No. 46(R).”  This statement replaces the existing quantitative-based risks and rewards calculation for determining which enterprise has a controlling financial interest in a variable interest entity with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest entity. In addition, the concept of qualifying special-purpose entities has been eliminated and therefore, will now be evaluated for consolidation in accordance with the applicable consolidation guidance. Ongoing assessments of whether an enterprise is the primary beneficiary of a variable interest entity are also required. SFAS No. 167 requires reconsideration for determining whether an entity is a variable interest entity when changes in facts and circumstances occur such that the holders of the equity investment at risk, as a group, lack the power from voting rights or similar rights to direct the activities of the entity. Enhanced disclosures are required for any enterprise that holds a variable interest in a variable interest entity. SFAS No. 167 will be applied prospectively beginning in the first quarter of 2010, and for all interim and annual periods thereafter. Earlier application of SFAS No. 167 is prohibited. We are currently evaluating the provisions of this statement.<br/>Reporting on Oil & Gas Producing Activities – In December 2008, the SEC announced that it had approved revisions to its oil and gas reporting disclosures. The new disclosure requirements include provisions that:<br/>        Introduce a new definition of oil and gas producing activities. This new definition allows companies to include volumes in their reserve base from unconventional resources. Such unconventional resources include bitumen extracted from oil sands and oil and gas extracted from coal beds and shale formations. <br/>        Report oil and gas reserves using an unweighted average price using the prior 12-month period, based on the closing prices on the first day of each month, rather than year-end prices. The SEC indicated that they will continue to communicate with the FASB staff to align their accounting standards with these rules. The FASB currently requires a single-day, year-end price for accounting purposes.<br/>        Permit companies to disclose their probable and possible reserves on a voluntary basis. Under current rules, proved reserves were the only reserves allowed in the disclosures. <br/>        Require companies to provide additional disclosure regarding the aging of proved undeveloped reserves. <br/>        Permit the use of reliable technologies to determine proved reserves if those technologies have been demonstrated empirically to lead to reliable conclusions about reserves volumes. <br/>        Replace the existing "certainty" test for areas beyond one offsetting drilling unit from a productive well with a "reasonable certainty" test. <br/>        Require additional disclosures regarding the qualifications of the chief technical person who oversees the company's overall reserve estimation process. Additionally, disclosures regarding internal controls surrounding reserve estimation, as well as a report addressing the independence and qualifications of its reserves preparer or auditor will be mandatory. <br/>        Require separate disclosure of reserves in foreign countries if they represent more than 15 percent of total proved reserves, based on barrels of oil equivalents.<br/>We expect to begin complying with the disclosure requirements in our Annual Report on Form 10-K for the year ending December 31, 2009. The new rules may not be applied to disclosures in quarterly reports prior to the first annual report in which the revised disclosures are required. We are currently in the process of evaluating the new requirements.</p></font></div></body></html>