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<p class="MsoNormal">
<a name=
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2. Acquisitions and Divestitures</span></b></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal">
<span><i><span style=
"color:black">Acquisitions</span></i></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:5.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Gulf LNG.</span></i>
<span style="color:black">In February 2008, we paid $295
million to complete the acquisition of a 50 percent interest
in the Gulf LNG Clean Energy Project, an LNG terminal which
is currently under construction in Pascagoula, Mississippi.
The terminal is expected to be placed in service in late 2011
at an estimated total cost of $1.1 billion. In addition, we
have a commitment to loan Gulf LNG up to $150 million of
which we have advanced approximately $42 million as of June
30, 2009. Our partner in this project has a commitment to
loan up to $64 million. We account for our investment in Gulf
LNG using the equity method.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Exploration and Production
properties.</span></i> <span style="color:black">In June
2008, we acquired interests in onshore domestic natural gas
and oil properties for approximately $43
million.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal">
<span><i><span style=
"color:black">Divestitures</span></i></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:5.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">During the first quarter of
2009, we completed the sale of our interest in the Porto
Velho power generation facility in Brazil to our partner in
the project for total consideration of $179 million,
including $78 million in notes receivable (see Note 13).
Subsequently, in the second quarter of 2009, we sold the
notes, including accrued interest, to a third party financial
institution for $57 million and recorded a loss of
approximately $22 million. In addition, during 2009 we
completed the sale of our investment in the
Argentina-to-Chile pipeline to our partners in the project
for approximately $32 million and completed the sale of
non-core natural gas producing properties located in our
Central and Western regions for approximately $95 million.
During 2008, we sold natural gas and oil properties primarily
in the Gulf Coast region for total proceeds of $637 million
as well as two power investments located in Central America
and Asia.</span></span>
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<a name=
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3. Ceiling Test Charges</span></b></a>
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<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">In the first quarter of 2009,
we recorded a reduction to our property, plant and equipment
due to non-cash ceiling test charges of $2.1 billion that
resulted primarily from declines in natural gas prices.
Capitalized costs exceeded the ceiling limit by approximately
$2.0 billion for our domestic full cost pool, approximately
$28 million for our Brazilian full cost pool and
approximately $9 million for our Egyptian full cost pool. The
calculation of these ceiling test charges was based on the
March 31, 2009 spot natural gas price of $3.63 per MMBtu and
oil price of $49.66 per barrel.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">As of June 30, 2009, spot
natural gas prices improved to $3.89 per MMBtu and oil prices
to $69.89 per barrel. As a result of these higher commodity
prices and lower costs, we did not have a ceiling test charge
in our domestic or Brazilian full cost pools during the
second quarter of 2009. However, we recorded a $12 million
charge during the second quarter of 2009 in our Egyptian full
cost pool. Additionally, during the second quarter of 2008,
we recorded a $7 million charge in our Egyptian full cost
pool.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">In performing our ceiling
test charge calculations, we are required to hold prices
constant over the life of the reserves, even though actual
prices of natural gas and oil are volatile and change from
period to period. Subsequent to June 30, 2009, commodity
prices have declined, and as such, we may be required to
record additional ceiling test charges in the
future.</span></span>
</p>
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<a name=
"_AUC9da00bb8de5e48788a10d2bf60f95d9c"><b><span style="color:black">
13. Investments in, Earnings from and Transactions with
Unconsolidated</span></b> <span style=
"color:black"><b>Affiliates</b></span></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">We hold investments in
unconsolidated affiliates which are accounted for using the
equity method of accounting. The earnings from unconsolidated
affiliates reflected in our income statement include (i) our
share of net earnings directly attributable to these
unconsolidated affiliates, and (ii) any impairments and other
adjustments recorded by us. The information below related to
our unconsolidated affiliates includes (i) our net investment
and earnings (losses) we recorded from these investments,
(ii) summarized financial information of our proportionate
share of these investments, and (iii) revenues and charges
with our unconsolidated affiliates.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
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<span><b><span style=
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</p>
<p class="MsoNormal" align="left" style=
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<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
</td>
<td width="156" colspan="2" valign="top" style=
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<p class="MsoNormal" align="left" style=
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<span><b><u><span style=
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 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 61.75pt left 120.25pt">
<span><b><u><span style=
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                  </span> Investment<span style=
"mso-tab-count:1">              </span></span></u></b></span>
</p>
</td>
<td width="263" colspan="4" valign="top" style=
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<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 103.5pt left 189.0pt">
<span><b><span style=
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                           </span> Earnings (Losses)
from</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
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<span><b><span style=
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 </span> <u><span style=
"mso-tab-count:1">                       </span>
Unconsolidated Affiliates<span style=
"mso-tab-count:1">                 </span></u></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
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<span><b><span style=
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 </span></span></b></span>
</p>
</td>
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<span><b><span style=
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          </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
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<span><b><span style=
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    </span> June 30,<span style=
"mso-tab-count:1">    </span></span></b></span>
</p>
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<span><b><span style=
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             </span></span></b></span>
</p>
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<span><b><span style=
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 </span> December 31,<span style=
"mso-tab-count:1">  </span></span></b></span>
</p>
</td>
<td width="138" colspan="2" valign="top" style=
"width:103.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:1.9pt; line-height:93%;tab-stops:center 52.55pt left 107.2pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
         </span> Quarters Ended</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:1.9pt; line-height:93%;tab-stops:center 52.55pt left 99.0pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
               </span> June 30,<span style=
"mso-tab-count:1">             </span></span></u></b></span>
</p>
</td>
<td width="125" colspan="2" valign="top" style=
"width:93.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:1.9pt; line-height:93%;tab-stops:center 52.55pt left 107.2pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
       </span> Six Months Ended</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:1.9pt; line-height:93%;tab-stops:center 52.55pt left 85.5pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
               </span> June 30,<span style=
"mso-tab-count:1">       </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="222" valign="top" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 207.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="76" valign="top" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 25.75pt left 52.75pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
      </span> 2009<span style=
"mso-tab-count:1">       </span></span></u></b></span>
</p>
</td>
<td width="80" valign="top" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 28.75pt left 59.5pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
        </span> 2008<span style=
"mso-tab-count:1">         </span></span></u></b></span>
</p>
</td>
<td width="73" valign="top" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:1.45pt; line-height:93%;tab-stops:center 22.5pt left 45.0pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
    </span> 2009<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="65" valign="top" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt center 26.05pt left 44.05pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> <u><span style="mso-tab-count:1">     </span>
2008<span style=
"mso-tab-count:1">   </span></u></span></b></span>
</p>
</td>
<td width="65" valign="top" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:1.45pt; line-height:93%;tab-stops:center 27.0pt left 45.0pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
      </span> 2009<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt center 27.0pt left 49.5pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> <u><span style="mso-tab-count:1">     </span>
2008<span style=
"mso-tab-count:1">  </span></u></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="222" valign="top" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 207.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="156" colspan="2" valign="top" style=
"width:117.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 53.9pt left 107.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
             </span> (In millions)<span style=
"mso-tab-count:1">             </span></span></b></span>
</p>
</td>
<td width="263" colspan="4" valign="top" style=
"width:196.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 103.5pt left 189.0pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
                                   </span> (In
millions)<span style=
"mso-tab-count:1">                           </span></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 207.9pt">
<span><i><span style="color:black">Net Investment and
Earnings (Losses)</span></i></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 42.55pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                  </span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 45.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span></span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"> </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Four Star
<sup>(1)</sup><span style=
"mso-tab-count:1 dotted">...........................................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 8.7pt decimal 35.9pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">      </span> 480</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 12.1pt decimal 42.25pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">        </span> 525</span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.55pt decimal 31.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">     </span> (12)</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 17.35pt decimal 38.3pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">         </span> 16</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.55pt decimal 31.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">     </span> (22)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 17.35pt decimal 38.3pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">         </span> 26</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Citrus<span style=
"mso-tab-count:1 dotted">......................................................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 35.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 598</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 42.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 564</span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 20</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 19</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 34</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 32</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Gulf
LNG<sup>(2)</sup><span style=
"mso-tab-count:1 dotted">...........................................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 35.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 288</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 42.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 279</span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (1)</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> —</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (1)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> —</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Gasoductos de
Chihuahua<span style=
"mso-tab-count:1 dotted">................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 35.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 171</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 42.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 174</span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 6</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span> 6</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 12</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 13</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Porto Velho<a name=
"OLE_LINK10" id="OLE_LINK10"></a><a name="OLE_LINK9"
id="OLE_LINK9"></a></span><span style=
"mso-bookmark: OLE_LINK9"><span style=
"mso-bookmark:OLE_LINK10"><sup><span style=
"color: black">(3)</span></sup></span></span><span style="color:black"><span style="mso-tab-count:1 dotted">........................................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 35.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 42.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> (64)</span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> —</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> —</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> —</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Bolivia-to-Brazil</span>
<span style="color:black">Pipeline<span style=
"mso-tab-count:1 dotted">...................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 35.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 114</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 42.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 119</span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (5)</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span> 3</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (1)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span> 6</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Argentina</span>
<span style="color:black">to Chile
Pipeline<sup>(4)</sup><span style=
"mso-tab-count:1 dotted">.............</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 35.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 42.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 27</span></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 2</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span> 2</span></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 4</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span> 3</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Other<span style=
"mso-tab-count:1 dotted">......................................................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 8.7pt decimal 35.9pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">          </span> 73</span></u></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 12.1pt decimal 42.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">             </span>
79</span></u></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.55pt decimal 31.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">           </span> 2</span></u></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 17.35pt decimal 38.3pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">              </span>
6</span></u></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.55pt decimal 31.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">           </span> 5</span></u></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 17.35pt decimal 38.3pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">              </span>
9</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes">
<td width="222" valign="bottom" style=
"width:166.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 157.5pt left 207.9pt">
<span><span style="color:black">Total<span style=
"mso-tab-count:1 dotted">..................................................</span></span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:56.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 8.7pt decimal 35.9pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:2">  </span>
1,724</span></u></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:60.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 12.1pt decimal 42.25pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:2">     </span>
1,703</span></u></span>
</p>
</td>
<td width="73" valign="bottom" style=
"width:54.95pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.55pt decimal 31.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">      </span> 12</span></u></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:48.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 17.35pt decimal 38.3pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">         </span> 52</span></u></span>
</p>
</td>
<td width="65" valign="bottom" style=
"width:49.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.55pt decimal 31.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">      </span> 31</span></u></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 17.35pt decimal 38.3pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">         </span> 89</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal">
<span><span style="color:black">____________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt">
<span><span style=
"font-size:3.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Amortization of our
purchase cost in excess of the underlying net assets of Four
Star was $13 million for each of the quarters ended June 30,
2009 and 2008 and $25 million and $27 million for the six
months ended June 30, 2009 and 2008.</span></sup></span>
</p>
<p class="MsoNormal">
<span><sup><span style=
"font-size:3.0pt;color:black"> </span></sup></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(2)<span style=
"mso-tab-count:1">         </span> In February 2008, we
acquired a 50 percent interest in Gulf LNG. See Note
2.</span></sup></span>
</p>
<p class="MsoNormal">
<span><sup><span style=
"font-size:3.0pt;color:black"> </span></sup></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(3)<span style=
"mso-tab-count:1">         </span> As of December 31, 2008,
we had outstanding advances and receivables of $242 million,
not included above, related to our investment in Porto Velho.
During 2009, we completed the sale of our investment in and
receivables from Porto Velho as further discussed in
<i>Other</i> <i>Investment-Related Matters</i>
below.</span></sup></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(4)<span style=
"mso-tab-count:1">         </span> In June 2009, we completed
the sale of our investment in the Argentina to Chile Pipeline
as further discussed in <i style=
"mso-bidi-font-style:normal">Other Investment-Related
Matters</i> below.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="642" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="414" valign="top" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 385.25pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 385.25pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
</td>
<td width="114" colspan="2" valign="top" style=
"width:85.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 44.1pt left 84.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
      </span> Quarters Ended</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 44.1pt left 84.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
            </span> June 30,<span style=
"mso-tab-count:1">          </span></span></u></b></span>
</p>
</td>
<td width="114" colspan="2" valign="top" style=
"width:85.55pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 44.1pt left 84.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
    </span> Six Months Ended</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 44.1pt left 84.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
            </span> June 30,<span style=
"mso-tab-count:1">          </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="414" valign="top" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 385.25pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.0pt left 32.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2009<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.0pt left 32.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2008<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.0pt left 32.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2009<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.0pt left 32.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2008<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="414" valign="top" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 385.25pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="228" colspan="4" valign="top" style=
"width:171.05pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="414" valign="bottom" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 385.25pt">
<span><i><span style="color:black">Summarized Financial
Information</span></i></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"> </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="414" valign="bottom" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 385.25pt">
<span><span style="color:black">Operating results
data:</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="57" valign="top" style=
"width:42.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.05pt">
<span><span style="color:black"> </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="414" valign="bottom" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.0pt">
<span><span style="color:black">Operating
revenues<span style=
"mso-tab-count:1 dotted">................................................................................................</span></span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.95pt decimal 31.95pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span> 135</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.95pt decimal 31.95pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span> 194</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.95pt decimal 31.95pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span> 258</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.95pt decimal 31.95pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span> 380</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="414" valign="bottom" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.0pt">
<span><span style="color:black">Operating
expenses<span style=
"mso-tab-count:1 dotted">................................................................................................</span></span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 69</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 84</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 137</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 177</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes">
<td width="414" valign="bottom" style=
"width:310.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.0pt">
<span><span style="color:black">Income from continuing
operations and net income<span style=
"mso-tab-count:1 dotted">......................................</span></span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 24</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 66</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 59</span></span>
</p>
</td>
<td width="57" valign="bottom" style=
"width:42.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 122</span></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">As of December 31, 2008,
approximately $433 million of the equity in undistributed
earnings of 50 percent or less owned entities accounted for
by the equity method was included in our consolidated
accumulated deficit. We received distributions and dividends
from our unconsolidated affiliates of $24 million and $21
million for the quarters ended June 30, 2009 and 2008 and $36
million and $81 million for the six months ended June 30,
2009 and 2008. Included in these amounts are returns of
capital of $1 million or less than $1 million for the
quarters and six months ended June 30, 2009 and 2008. Our
revenues and charges with unconsolidated affiliates were not
material during the quarters and six months ended June 30,
2009 and 2008.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p><i><span style=
"font-size:10.0pt;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span></i>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Accounts Receivable Sales
Program.</span></i> <span style="color:black">Several of our
pipeline subsidiaries have agreements to sell certain
accounts receivable to QSPEs whose purpose is solely to
invest in our pipeline receivables which are short-term
assets that generally settle within 60 days<i>.</i>
<span style="mso-bidi-font-style:italic">During the quarter
and six months ended June 30, 2009, we received net proceeds
of approximately $0.4 billion and $1.0 billion related to
sales of receivables to the QSPEs and changes in our
subordinated beneficial interests, and recognized losses of
less than $1 million on these transactions.</span>As of June
30, 2009 and December 31, 2008, we had approximately $146
million and $174 million of receivables outstanding with the
QSPEs, for which we received cash of $76 million and $82
million and received subordinated beneficial interests of
approximately $70 million and $89 million. The QSPEs also
issued senior beneficial interests on the receivables sold to
a third party financial institution, which totaled $76
million and $85 million as of June 30, 2009 and December 31,
2008. We reflect the subordinated beneficial interest in
receivables sold at their fair value on the date they are
issued. These amounts (adjusted for subsequent collections)
are recorded as accounts receivable from affiliates in our
balance sheet. Our ability to recover the carrying value of
our subordinated beneficial interests is based on the
collectibility of the underlying receivables sold to the
QSPEs. We reflect accounts receivable sold under this program
and changes in the subordinated beneficial interests as
operating cash flows in our statement of cash flows. Under
the agreements, we earn a fee for servicing the accounts
receivable and performing all administrative duties for the
QSPEs which is reflected as a reduction of operation and
maintenance expense in our income statement. The fair value
of these servicing and administrative agreements as well as
the fees earned were not material to our financial statements
for the periods ended June 30, 2009 and 2008.</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal">
<span><i><span style="color:black">Other Investment-Related
Matters</span></i></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:4.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Porto
Velho</span></i><i><span style="color:black">.</span></i>
<span style="color:black">In February 2009, we completed the
sale of our interests in Porto Velho to our partner in the
project for $101 million of cash and $78 million of notes
receivable from the buyer. In May 2009, we sold the notes
receivable, including accrued interest, to a third party for
$57 million and recorded a loss of approximately $22 million
in other expenses in our Power segment.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Manaus/Rio
Negro.</span></i> <span style="color:black">In 2008, we
transferred our ownership in the Manaus and Rio Negro
facilities to the plants’ power purchaser as required by
their power purchase agreements. As of June 30, 2009, we have
approximately $59 million of Brazilian reais-denominated
accounts receivable owed to us under the projects’ terminated
power purchase agreements, which are guaranteed by the
purchaser’s parent. The purchaser has withheld payment of
these receivables in light of their Brazilian
reais-denominated claims of approximately $57 million related
to plant maintenance the purchaser claims should have been
performed at the plants prior to the transfer, inventory
levels and other items. Settlement discussions with the
purchaser have ceased and we have initiated regulatory
proceedings to allow us to resolve these outstanding claims
and recover our accounts receivable. We also initiated legal
action against the purchaser’s parent in the second quarter
of 2009 for their failure to pay us under the performance
guaranty. We have reviewed our obligations under the power
purchase agreement in relation to the claims and have accrued
an obligation for the uncontested claims. We believe the
remaining contested claims are without merit. The ultimate
resolution of each of these matters is unknown at this time,
and adverse developments related to either our ability to
collect amounts due to us or related to the dispute could
require us to record additional losses in the
future.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:4.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">During 2009, the Brazilian
taxing authorities began legal proceedings against the Manaus
and Rio Negro projects for $47 million of ICMS taxes
allegedly due on capacity payments received from the plants’
power purchaser from 1999 to 2001. By agreement, the power
purchaser must indemnify the Manaus and Rio Negro projects
for these ICMS taxes, along with related interest and
penalties, and has therefore been defending the projects
against this lawsuit. In order to continue its defense of
this matter, the power purchaser is required to provide
security for the potential tax liability to the court’s
satisfaction. The power purchaser offered to pledge certain
assets, but this offer was rejected by the tax authorities
and the court. The power purchaser is now considering other
forms of security to offer to the court. If the power
purchaser is unable to resolve these tax matters, any
potential taxes owed by the Manaus and Rio Negro projects are
also guaranteed by the purchaser’s parent.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:4.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Investments in Bolivia and
Argentina.</span></i> <span style="color:black">We own an 8
percent interest in the Bolivia-to-Brazil pipeline. As of
June 30, 2009, our total investment and guarantees related to
this pipeline project was approximately $126 million. We
continue to monitor and evaluate the potential impact that
regional and political events in Bolivia could have on our
investment in this pipeline project, as further discussed in
our 2008 Annual Report on Form 10-K. As new information
becomes available or future material developments arise, we
may be required to record an impairment of our investment. In
June 2009, we completed the sale of our investment in the
Argentina-to-Chile pipeline to our partners for approximately
$32 million.</span></span>
</p>
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<p class="MsoNormal" style="line-height:92%">
<a name=
"_AUCa0be7b8cf1084f1893cb394d1ae54cb2"><b><span style="color:black">
9. Commitments and Contingencies</span></b></a>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><i><span style="color:black">Legal
Proceedings</span></i></span>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><i><span style="color:black">ERISA Class Action
Suit.</span></i> <span style="color: black">In December 2002,
a purported class action lawsuit entitled <i>William H.
Lewis, III v. El Paso Corporation, et al.</i> was filed in
the U.S. District Court for the Southern District of Texas
alleging that our communication with participants in our
Retirement Savings Plan included various misrepresentations
and omissions that caused members of the class to hold and
maintain investments in El Paso stock in violation of the
Employee Retirement Income Security Act (ERISA). A settlement
has been finalized, received court approval and been
paid.</span></span>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><i><span style="color:black">Cash Balance Plan
Lawsuit.</span></i> <span style="color:black">In December
2004, a purported class action lawsuit entitled <i>Tomlinson,
et al. v. El Paso Corporation and El Paso</i> <i>Corporation
Pension Plan</i> was filed in U.S. District Court for Denver,
Colorado. The lawsuit alleges various violations of ERISA and
the Age Discrimination in Employment Act as a result of our
change from a final average earnings formula pension plan to
a cash balance pension plan. The trial court has dismissed
the plaintiffs’ claims. The plaintiffs have filed a motion
seeking to overturn the dismissal of the case. Our costs and
legal exposure related to this lawsuit are not currently
determinable.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style="color:black"> </span></i></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style="color:black">Retiree Medical Benefits
Matters.</span></i> <span style="color:black">In 2002, a
lawsuit entitled <i>Yolton et</i> <i>al. v. El Paso Tennessee
Pipeline Co. and Case Corporation</i> was filed in a federal
court in Detroit, Michigan<i>.</i> The lawsuit was filed on
behalf of a group of retirees of Case Corporation (Case) that
alleged they are entitled to retiree medical benefits under a
medical benefits plan for which we serve as plan
administrator pursuant to a merger agreement with Tenneco
Inc. Although we had asserted that our obligations under the
plan were subject to a cap pursuant to an agreement with the
union for Case employees, in the first quarter of 2008, the
trial court granted a summary judgment and ruled that the
benefits were vested and not subject to the cap. As a result,
we were obligated to pay the amounts above the cap and we
adjusted our existing indemnification accrual using current
actuarial assumptions and reclassified our liability as a
postretirement benefit obligation. See Note 10 for a
discussion of the impact of this matter. We intend to pursue
appellate options following the determination by the trial
court of any damages incurred by the plaintiffs during the
period when premium payments above the cap were paid by the
retirees. We believe our accruals established for this matter
are adequate.</span></span>
</p>
<p class="MsoNormal" style="line-height:97%">
<span><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style="color:black">Price Reporting
Litigation.</span></i> <span style="color:black">Beginning in
2003, several lawsuits were filed against El Paso Marketing
L.P. (EPM) alleging that El Paso, EPM and other energy
companies conspired to manipulate the price of natural gas by
providing false price information to industry trade
publications that published gas indices. The first set of
cases, involving similar allegations on behalf of commercial
and residential customers, was transferred to a
multi-district litigation proceeding (MDL) in the U.S.
District Court for Nevada and styled <i>In</i> <i>re: Western
States Wholesale Natural Gas Antitrust Litigation</i>. These
cases were dismissed. The U.S. Court of Appeals for the Ninth
Circuit, however, reversed the dismissal and ordered that
these cases be remanded to the trial court. The second set of
cases also involve similar allegations on behalf of certain
purchasers of natural gas. These include <i>Farmland
Industries<span style="mso-spacerun:yes">  </span>
<span style="mso-spacerun:yes"> </span>v. Oneok Inc., et</i>
<i>al.</i> (filed in state court in Wyandotte County, Kansas
in July 2005) and <i>Missouri Public Service Commission v. El
Paso Corporation, et al.</i> (filed in the circuit court of
Jackson County, Missouri at Kansas City in October 2006), and
the purported class action lawsuits styled: <i>Leggett, et
al. v. Duke Energy</i> <i>Corporation, et al.</i> (filed in
Chancery Court of Tennessee in January 2005); <i>Ever-Bloom
Inc., et al. v. AEP Energy Services Inc., et al.</i> (filed
in federal court for the Eastern District of California in
September 2005); <i>Learjet, Inc.,</i> <i>et al. v. Oneok
Inc., et al.</i> (filed in state court in Wyandotte County,
Kansas in September 2005); <i>Breckenridge, et al. v. Oneok
Inc., et al.</i> (filed in state court in Denver County,
Colorado in May 2006); <i>Arandell, et al. v. Xcel
Energy,</i> <i>et al.</i> (filed in the circuit court of Dane
County, Wisconsin in December 2006); <i>Heartland, et al. v.
Oneok Inc., et al.</i> (filed in the circuit court of
Buchanan County, Missouri in March 2007); and <i>Newpage
Wisconsin System, Inc., et al.</i> (filed in the circuit
court of Wood County, Wisconsin in March 2009). The
<i>Leggett</i> case was dismissed by the Tennessee state
court, but in October 2008, the Tennessee Court of Appeals
reversed the dismissal, remanding the matter to the trial
court. The decision has been appealed to the Tennessee
Supreme Court. The <i>Missouri Public Service</i> case was
dismissed by the state court. The dismissal has been
appealed. <i>Newpage</i> was recently filed. The remaining
cases have all been transferred to the MDL proceeding. The
<i>Breckenridge Case</i> has been dismissed as to El Paso and
other defendants, and a motion for reconsideration of this
decision was denied. This ruling can still be appealed.
Discovery is proceeding in the MDL cases. We reached an
agreement to settle the <i>Western</i> <i>States</i> and
<i>Ever-Bloom</i> cases, subject to court approval, and have
established accruals for those cases, which we believe are
adequate. Our costs and legal exposure related to the
remaining lawsuits and claims are not currently
determinable.</span></span>
</p><i><span style=
"font-size:10.0pt;line-height:97%;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span></i>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style="color:black">Gas Measurement
Cases.</span></i> <span style="color:black">A number of our
subsidiaries were named defendants in actions that generally
allege mismeasurement of natural gas volumes and/or heating
content resulting in the underpayment of royalties. The first
set of cases was filed in 1997 by an individual under the
False Claims Act and have been consolidated for pretrial
purposes (<i>In re: Natural Gas Royalties Qui Tam</i>
<i>Litigation,</i> U.S. District Court for the District of
Wyoming). These complaints allege an industry-wide conspiracy
to underreport the heating value as well as the volumes of
the natural gas produced from federal and Native American
lands. In October 2006, the U.S. District Judge issued an
order dismissing all claims against all defendants. In March
2009, the Tenth Circuit Court of Appeals affirmed the
dismissals and in May 2009, the plaintiff’s motion for
reconsideration was denied.</span></span>
</p>
<p class="MsoNormal" style="line-height:97%">
<span><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><span style="color:black">Similar allegations were
filed in a set of actions initiated in 1999 in <i>Will Price,
et al. v. Gas Pipelines and Their Predecessors, et al.,</i>
in the District Court of Stevens County, Kansas. The
plaintiffs currently seek certification of a class of royalty
owners in wells on non-federal and non-Native American lands
in Kansas, Wyoming and Colorado. Motions for class
certification have been briefed and argued in the proceedings
and the parties are awaiting the court’s ruling. The
plaintiffs seek an unspecified amount of monetary damages in
the form of additional royalty payments (along with interest,
expenses and punitive damages) and injunctive relief with
regard to future gas measurement practices. Our costs and
legal exposure related to these lawsuits and claims are not
currently determinable.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><i><span style=
"color:black">MTBE</span></i><span style="color:black">.
Certain of our subsidiaries used, produced, sold or
distributed methyl tertiary-butyl ether (MTBE) as a gasoline
additive. Various lawsuits were filed throughout the U.S.
regarding the potential impact of MTBE on water supplies. The
lawsuits have been brought by different parties, including
state attorney generals, water districts and individual water
companies. They have sought different remedies, including
remedial activities, damages, attorneys’ fees and costs.
These cases were initially consolidated for pre-trial
purposes in multi-district litigation in the U.S. District
Court for the Southern District of New York. Several cases
were later remanded to state court. In 2008, we settled 59 of
these lawsuits. The settlement payments were covered by
insurance and we were reimbursed for the payments by our
insurers. Additionally, in July 2009, we made payment on an
additional settled case which is expected to be covered by
insurance. Following dismissal of the settled cases we have
31 lawsuits that remain. Although there have been settlement
discussions with other plaintiffs, such discussions have been
unsuccessful to date. While the damages claimed in the
remaining actions are substantial, there remains significant
legal uncertainty regarding the validity of the causes of
action asserted and the availability of the relief sought. We
have or will tender these remaining cases to our insurers. It
is likely that our insurers will assert denial of coverage on
the 11 most-recently filed cases. Our costs and legal
exposure related to these remaining lawsuits are not
currently determinable.</span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><span style="color:black">In addition to the above
proceedings, we and our subsidiaries and affiliates are named
defendants in numerous lawsuits and governmental proceedings
and claims that arise in the ordinary course of our business.
There are also other regulatory rules and orders in various
stages of adoption, review and/or implementation. For each of
these matters, we evaluate the merits of the case or claim,
our exposure to the matter, possible legal or settlement
strategies and the likelihood of an unfavorable outcome. If
we determine that an unfavorable outcome is probable and can
be estimated, we establish the necessary accruals. While the
outcome of these matters, including those discussed above,
cannot be predicted with certainty, and there are still
uncertainties related to the costs we may incur, based upon
our evaluation and experience to date, we believe we have
established appropriate reserves for these matters. It is
possible, however, that new information or future
developments could require us to reassess our potential
exposure related to these matters and adjust our accruals
accordingly, and these adjustments could be material. As of
June 30, 2009, we had approximately $59 million accrued for
our outstanding legal and governmental
proceedings.</span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:8.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><i><span style="color:black">Rates and Regulatory
Matters</span></i></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><i><span style="color:black">EPNG Rate Case.</span></i>
<span style="color:black">In June 2008, El Paso Natural Gas
Company (EPNG) filed a rate case with the Federal Energy
Regulatory Commission (FERC) as required under the settlement
of its previous rate case. The filing proposed an increase in
EPNG’s base tariff rates. In August 2008, the FERC issued an
order accepting the proposed rates effective January 1, 2009,
subject to refund and the outcome of a hearing and a
technical conference. The FERC issued an order in December
2008 that generally accepted most of EPNG’s proposals in the
technical conference proceeding. The FERC has appointed an
administrative law judge to preside over a hearing if EPNG is
unable to reach a negotiated settlement with its customers on
the remaining issues. The hearing is currently scheduled to
begin in late October 2009. The outcome of the hearing is not
currently determinable.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p><span style=
"font-size:6.0pt;line-height:94%;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><i><span style="color:black">SNG Rate Case.</span></i>
<span style="color:black">In March 2009, Southern Natural Gas
Company (SNG) filed a rate case with the FERC as permitted
under the settlement of its previous rate case. The filing
proposed an increase in SNG’s base tariff rates. In April
2009, the FERC issued an order accepting the proposed rates
effective September 1, 2009, subject to refund and the
outcome of a hearing and a technical conference on certain
tariff proposals. The FERC has appointed an administrative
law judge to preside over a hearing if SNG is unable to reach
a negotiated settlement with its customers on the remaining
issues. The hearing is currently scheduled to begin in
February 2010. The outcome of the hearing is not currently
determinable.</span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><i><span style="color:black">Notice of Proposed
Rulemaking.</span></i> <span style="color:black">On October
3, 2007, the Minerals Management Service (MMS) issued a
Notice of Proposed Rulemaking for Oil and Gas and Sulphur
Operations in the Outer Continental Shelf (OCS) — Pipelines
and Pipeline Rights-of-Way. If adopted, the proposed rules
would substantially revise MMS OCS pipeline and rights-of-way
regulations. The proposed rules would have the effect of: (1)
increasing the financial obligations of entities, like us,
which have pipelines and pipeline rights-of-way in the OCS;
(2) increasing the regulatory requirements imposed on the
operation and maintenance of existing pipelines and
rights-of-way in the OCS; and <span style=
"mso-spacerun:yes">   </span>(3) increasing the requirements
and preconditions for obtaining new rights-of-way in the
OCS.</span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><i><span style="color:black">Other
Matter</span></i></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Navajo
Nation.</span></i><span style="color:black"> In March 2009,
representatives of the Navajo Nation and EPNG executed a
final agreement setting forth the full terms and conditions
of the Navajo Nation’s consent to EPNG’s rights-of-way
through the Navajo Nation. EPNG submitted the Navajo Nation’s
consent agreement in support of EPNG’s pending application to
the United States Department of the Interior for an extension
of the Department’s current right-of-way grant. We expect the
submission will result in the Department’s final processing
of our application. EPNG has filed with the FERC for recovery
of these amounts in its recent rate case.</span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><i><span style="color:black">Environmental
Matters</span></i></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><span style="color:black">We are subject to federal,
state and local laws and regulations governing environmental
quality and pollution control. These laws and regulations
require us to remove or remedy the effect on the environment
of the disposal or release of specified substances at current
and former operating sites. At June 30, 2009, we had accrued
approximately $190 million for environmental matters, which
has not been reduced by $24 million for amounts to be paid
directly under government sponsored programs or through
settlement arrangements. Our accrual includes approximately
$185 million for expected remediation costs and associated
onsite, offsite and groundwater technical studies and
approximately $5 million for related environmental legal
costs. Of the $190 million accrual, $16 million was reserved
for facilities we currently operate and $174 million was
reserved for non-operating sites (facilities that are shut
down or have been sold) and Superfund sites.</span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><span style="color:black">Our estimates of potential
liability range from approximately $190 million to
approximately $371 million. Our accrual represents a
combination of two estimation methodologies. First, where the
most likely outcome can be reasonably estimated, that cost
has been accrued ($12 million). Second, where the most likely
outcome cannot be estimated, a range of costs is established
($178 million to $359 million) and if no one amount in that
range is more likely than any other, the lower end of the
expected range has been accrued. Our environmental
remediation projects are in various stages of completion. Our
recorded liabilities reflect our current estimates of amounts
we will expend to remediate these sites. However, depending
on the stage of completion or assessment, the ultimate extent
of contamination or remediation required may not be known. As
additional assessments occur or remediation efforts continue,
we may incur additional liabilities. By type of site, our
reserves are based on the following estimates of reasonably
possible outcomes:</span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="491" valign="top" style=
"width:368.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 358.65pt">
<span><b><span style=
"font-size:8.0pt;line-height:94%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="133" colspan="2" valign="top" style=
"width:100.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:center 46.0pt left 93.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:94%;color:black"><span style="mso-tab-count: 1">
        </span> June 30, <span style=
"mso-spacerun:yes"> </span>2009<span style=
"mso-tab-count:1">        </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1;height:4.0pt">
<td width="491" valign="top" style=
"width:368.0pt;padding:0in 0in 0in 0in; height:4.0pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:63.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:94%;color:black">Sites<span style="mso-tab-count:1">                    </span></span></u></b></span>
</p>
</td>
<td width="79" valign="top" style=
"width:59.4pt;padding:0in 0in 0in 0in; height:4.0pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:center 19.0pt left 38.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:94%;color:black">Expected
</span></u></b></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.6pt;padding:0in 0in 0in 0in; height:4.0pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:center 16.8pt left 33.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:94%;color:black"><span style="mso-tab-count: 1">
  </span> High<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="491" valign="top" style=
"width:368.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 358.65pt">
<span><span style=
"font-size:8.0pt;line-height:94%;color:black"> </span></span>
</p>
</td>
<td width="133" colspan="2" valign="top" style=
"width:100.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:94%">
<span><b><span style=
"font-size:8.0pt;line-height:94%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="491" valign="top" style=
"width:368.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 358.65pt">
<span><span style="color:black">Operating<span style=
"mso-tab-count:1 dotted">.............................................................................................................................................</span></span></span>
</p>
</td>
<td width="79" valign="top" style=
"width:59.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in 5.95pt decimal 37.0pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">             </span> <span style=
"mso-tab-count:1">  </span> 16</span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in 3.75pt decimal 36.1pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">        </span> 23</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="491" valign="top" style=
"width:368.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 358.65pt">
<span><span style=
"color:black">Non-operating<span style="mso-tab-count:1 dotted">....................................................................................................................................</span></span></span>
</p>
</td>
<td width="79" valign="top" style=
"width:59.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in decimal 37.0pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 157</span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in decimal 36.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 308</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="491" valign="top" style=
"width:368.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 358.65pt">
<span><span style="color:black">Superfund<span style=
"mso-tab-count:1 dotted">...........................................................................................................................................</span></span></span>
</p>
</td>
<td width="79" valign="top" style=
"width:59.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in 5.95pt decimal 37.0pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">           </span> 17</span></u></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in 3.75pt decimal 36.1pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">          </span> 40</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes">
<td width="491" valign="top" style=
"width:368.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 358.65pt">
<span><span style="color:black">Total<span style=
"mso-tab-count:1 dotted">.....................................................................................................................................................</span></span></span>
</p>
</td>
<td width="79" valign="top" style=
"width:59.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in 5.95pt decimal 37.0pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">             </span> <span style=
"mso-tab-count:1">  </span> 190</span></u></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in 3.75pt decimal 36.1pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">      </span> 371</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p><span style=
"font-size:10.0pt;line-height:94%;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><span style="color:black">Below is a reconciliation of
our accrued liability from January 1, 2009 to June 30, 2009
(in millions):</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="624" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="570" valign="top" style=
"width:427.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 416.7pt">
<span><span style="color:black">Balance as of January 1,
2009<span style=
"mso-tab-count: 1 dotted">.................................................................................................................................</span></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in decimal .5in">
<span><span style="color:black">$<span style=
"mso-tab-count:1">      </span> 204</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="570" valign="top" style=
"width:427.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 416.7pt">
<span><span style="color:black">Additions/adjustments for
remediation activities<span style=
"mso-tab-count:1 dotted">.................................................................................................</span></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in decimal .5in">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 7</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="570" valign="top" style=
"width:427.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 416.7pt">
<span><span style="color:black">Payments for remediation
activities<span style=
"mso-tab-count:1 dotted">........................................................................................................................</span></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in decimal .5in">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">         </span> (21)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3;mso-yfti-lastrow:yes">
<td width="570" valign="top" style=
"width:427.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:dotted 416.7pt">
<span><span style="color:black">Balance as of June 30,
2009<span style=
"mso-tab-count: 1 dotted">.....................................................................................................................................</span></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%; tab-stops:0in decimal .5in">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">      </span> 190</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><span style="color:black">For the remainder of 2009, we
estimate that our total remediation expenditures will be
approximately $40 million, most of which will be expended
under government directed clean-up plans. In addition, we
expect to make capital expenditures for environmental matters
of approximately $8 million in the aggregate for the years
2009 through 2013. These expenditures primarily relate to
compliance with clean air regulations.</span></span>
</p>
<p class="MsoNormal" style="line-height:94%">
<span><span style=
"font-size:6.0pt;line-height:94%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:94%">
<span><i><span style="color:black">CERCLA Matters.</span></i>
<span style="color:black">As part of our environmental
remediation projects, we have received notice that we could
be designated, or have been asked for information to
determine whether we could be designated, as a Potentially
Responsible Party (PRP) with respect to 31 active sites under
the Comprehensive Environmental Response, Compensation and
Liability Act (CERCLA) or state equivalents. We have sought
to resolve our liability as a PRP at these sites through
indemnification by third parties and settlements, which
provide for payment of our allocable share of remediation
costs. Because the clean-up costs are estimates and are
subject to revision as more information becomes available
about the extent of remediation required, and in some cases
we have asserted a defense to any liability, our estimates
could change. Moreover, liability under the federal CERCLA
statute is joint and several, meaning that we could be
required to pay in excess of our pro rata share of
remediation costs. Our understanding of the financial
strength of other PRPs has been considered, where
appropriate, in estimating our liabilities. Accruals for
these issues are included in the previously indicated
estimates for Superfund sites.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:95%">
<span><span style=
"font-size:6.0pt;line-height:95%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:95%">
<span><span style="color:black">It is possible that new
information or future developments could require us to
reassess our potential exposure related to environmental
matters. We may incur significant costs and liabilities in
order to comply with existing environmental laws and
regulations. It is also possible that other developments,
such as increasingly strict environmental laws, regulations
and orders of regulatory agencies, as well as claims for
damages to property and the environment or injuries to
employees and other persons resulting from our current or
past operations, could result in substantial costs and
liabilities in the future. As this information becomes
available, or other relevant developments occur, we will
adjust our accrual amounts accordingly. While there are still
uncertainties related to the ultimate costs we may incur,
based upon our evaluation and experience to date, we believe
our reserves are adequate.</span></span>
</p>
<p class="MsoNormal" style="line-height:95%">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="line-height:95%">
<span><i><span style="color:black">Guarantees and Other
Contractual Commitments</span></i></span>
</p>
<p class="MsoNormal" style="line-height:95%">
<span><span style=
"font-size:6.0pt;line-height:95%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:95%">
<span><i><span style="color:black">Guarantees and
Indemnifications.</span></i> <span style="color:black">We are
involved in various joint ventures and other ownership
arrangements that sometimes require financial and performance
guarantees. In a financial guarantee, we are obligated to
make payments if the guaranteed party fails to make payments
under, or violates the terms of, the financial arrangement.
In a performance guarantee, we provide assurance that the
guaranteed party will execute on the terms of the contract.
If they do not, we are required to perform on their behalf.
We also periodically provide indemnification arrangements
related to assets or businesses we have sold. These
arrangements include, but are not limited to,
indemnifications for income taxes, the resolution of existing
disputes and environmental matters.</span></span>
</p>
<p class="MsoNormal" style="line-height:95%">
<span><span style=
"font-size:6.0pt;line-height:95%;color:black"> </span></span>
</p><span style=
"font-size:10.0pt;line-height:95%;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span>
<p class="MsoNormal" style="text-indent:.2in;line-height:95%">
<span><span style="color:black">Our potential exposure under
guarantee and indemnification agreements can range from a
specified amount to an unlimited dollar amount, depending on
the nature of the claim and the particular transaction. While
many of these agreements may specify a maximum potential
exposure, or a specified duration to the indemnification
obligation, there are circumstances where the amount and
duration are unlimited. For those arrangements with a
specified dollar amount, we have a maximum stated value of
approximately $794 million, which primarily relates to
indemnification arrangements associated with the sale of ANR
Pipeline Company in 2007, our Macae power facility in Brazil,
and other legacy assets. These amounts exclude guarantees for
which we have issued related letters of credit discussed in
Note 8. Included in the above maximum stated value are
certain indemnification agreements that have expired;
however, claims were made prior to the expiration of the
related claim periods. We are unable to estimate a maximum
exposure of our guarantee and indemnification agreements that
do not provide for limits on the amount of future payments
due to the uncertainty of these exposures.</span></span>
</p>
<p class="MsoNormal" style="line-height:95%">
<span><span style=
"font-size:6.0pt;line-height:95%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:95%">
<span><span style="color:black">As of June 30, 2009, we have
recorded obligations of $51 million related to our
indemnification arrangements. Our liability consists
primarily of an indemnification that one of our subsidiaries
provided related to its sale of an ammonia facility that is
reflected in our financial statements at its estimated fair
value. We have provided a partial parental guarantee of our
subsidiary’s obligations under this indemnification. We
believe that our guarantee and indemnification agreements for
which we have not recorded a liability are not probable of
resulting in future losses based on our assessment of the
nature of the guarantee, the financial condition of the
guaranteed party and the period of time that the guarantee
has been outstanding, among other
considerations.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:95%">
<span><span style=
"font-size:6.0pt;line-height:95%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Commitments, Purchase
Obligations and Other Matters.</span></i> <span style=
"color:black">On April 13, 2009, TGP filed an amendment to a
1995 FERC settlement that, if approved by the FERC, would
provide for interim refunds to its customers of approximately
$157 million of amounts collected related to certain
environmental costs. These refunds are recorded as other
current and non-current liabilities on our balance sheet and
are expected to be paid over a three year period with
interest commencing within 20 days after the FERC’s order
becomes final.</span></span>
</p>
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<div>
<p class="MsoNormal" align="left" style=
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<a name=
"_AUC5a4c3d56a5ab41a59f6148b7bc696ebb"><b><span style="color:black">
8.<span style="mso-tab-count:1"> </span> Debt, Other
Financing Obligations and Other Credit Facilities</span></b>
</a>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:4.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="458" valign="top" style=
"width:343.35pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 322.65pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 322.65pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="90" valign="top" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.9pt left 43.8pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> June 30,</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:2.7pt; line-height:93%;tab-stops:center 21.9pt left 40.5pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
   </span> 2009<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
<td width="76" valign="top" style=
"width:57.15pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 22.05pt left 49.95pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">December
31,</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 22.05pt left 47.7pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> 2008<span style=
"mso-tab-count:1">       </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="458" valign="top" style=
"width:343.35pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 322.65pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="166" colspan="2" valign="top" style=
"width:124.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="458" valign="bottom" style=
"width:343.35pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 333.0pt">
<span><span style="color:black">Short-term financing
obligations, including current maturities<span style=
"mso-tab-count:1 dotted">......................................</span></span></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.4pt decimal 41.4pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">        </span> 169</span></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:57.15pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.5pt decimal 48.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">        </span> 1,090</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="458" valign="bottom" style=
"width:343.35pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 333.0pt">
<span><span style="color:black">Long-term financing
obligations<span style=
"mso-tab-count: 1 dotted">.........................................................................................</span></span></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.4pt decimal 41.4pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">     </span> 13,477</span></u></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:57.15pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.5pt decimal 48.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">        </span>
12,818</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes">
<td width="458" valign="bottom" style=
"width:343.35pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 333.0pt">
<span><span style="color:black">Total<span style=
"mso-tab-count:1 dotted">.........................................................................................................................................</span></span></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.4pt decimal 41.4pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">  </span>
13,646</span></u></span>
</p>
</td>
<td width="76" valign="bottom" style=
"width:57.15pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.5pt decimal 48.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">      </span> 13,908</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:4.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><i><span style="color:black">Changes in Long-Term
Financing Obligations.</span></i> <span style=
"color:black">During the six months ended June 30, 2009, we
had the following changes in our long-term financing
obligations (in millions):</span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%">
<span><span style=
"font-size:4.0pt;line-height:92%;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="638" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="339" valign="top" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:dotted 268.35pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:92%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:45.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:92%;color:black">Company<span style="mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
<td width="108" valign="top" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:center 27.45pt left 54.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:92%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:center 21.55pt left 44.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:92%;color:black">Interest
Rate<span style=
"mso-tab-count:1">          </span></span></u></b></span>
</p>
</td>
<td width="108" valign="top" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:center 32.55pt left 67.65pt">
<span><b><span style=
"font-size:8.0pt;line-height:92%;color:black"><span style="mso-tab-count: 1">
    </span> Book Value</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:center 32.55pt left 67.65pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:92%;color:black">Increase
(Decrease) </span></u></b></span>
</p>
</td>
<td width="83" valign="top" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:center 24.65pt left 38.15pt">
<span><b><span style=
"font-size:8.0pt;line-height:92%;color:black"><span style="mso-tab-count: 1">
      </span> Cash</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:center 18.8pt left 38.15pt">
<span><b><span style=
"font-size:8.0pt;line-height:92%;color:black"><u>Received
(Paid)</u></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:dotted 268.35pt">
<span><i><span style=
"color:black">Issuances</span></i></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 55.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                        </span></span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 36.7pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">El Paso Notes due
2016<sup>(1)</sup><span style=
"mso-tab-count:1 dotted">.........................................................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 31.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 8.25%</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 26.25pt decimal 60.65pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                 </span>
478</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 7.05pt decimal 39.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">       </span> 473</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">Tennessee Gas Pipeline
(TGP) notes due 2016<sup>(1)</sup><span style=
"mso-tab-count:1 dotted">.................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 31.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 8.00%</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 60.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span>
237</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 234</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">Southern LNG notes due
2014 and 2016<span style=
"mso-tab-count:1 dotted">..............................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 31.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 9.60%</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 26.25pt decimal 60.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">                   </span>
135</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 7.05pt decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">          </span> 134</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.55pt">
<span><span style="color:black">Elba Express Company LLC
credit facility<span style=
"mso-tab-count:1 dotted">..........................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; tab-stops:0in decimal 31.2pt">
<span><span style="color:black">variable</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 60.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                     </span>
99</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 92</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">El Paso Pipeline
Partners, L.P. (EPB) revolving credit
facilities<span style=
"mso-tab-count:1 dotted">......................................................................................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; tab-stops:0in decimal 31.2pt">
<span><span style="color:black">variable</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 26.25pt decimal 60.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
50</span></u></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 7.05pt decimal 39.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">            </span>
50</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><i><span style="color:black">Increases through June
30, 2009<span style=
"mso-tab-count: 1 dotted">.......................................</span></span></i>
</span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 26.25pt decimal 60.65pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                 </span>
999</span></u></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 7.05pt decimal 39.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">       </span> 983</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:dotted 268.35pt">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 67.65pt">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:dotted 268.35pt">
<span><i><span style="color:black">Repayments,
repurchases, and other</span></i></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 67.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                             </span></span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:dotted 268.35pt">
<span><span style="color:black">El Paso
Corporation</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 67.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                             </span></span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">Notes due
2009<span style="mso-tab-count:1 dotted">.................................................................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; tab-stops:0in decimal 26.05pt">
<span><span style="color:black">6.375% to
7.125%</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 26.25pt decimal 60.65pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">            </span>
(1,054)</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 7.05pt decimal 39.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">   </span> (1,054)
<sup>(2)</sup></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">Revolving credit
facilities<span style=
"mso-tab-count: 1 dotted">................................................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black">variable</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 60.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                    </span>
(97)</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> (97)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:13">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">EPB revolving credit
facilities<span style=
"mso-tab-count: 1 dotted">..................................................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black">variable</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 60.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                  </span>
(115)</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> (115)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:14">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">El Paso Exploration and
Production Company (EPEP) revolving credit
facility<span style=
"mso-tab-count:1 dotted">...........................................................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black">variable</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 60.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                    </span>
(20)</span></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 39.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> (20)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:15">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><span style="color:black">Other<span style=
"mso-tab-count:1 dotted">.............................................................................................</span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black">variable</span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 26.25pt decimal 60.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
25</span></u></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 7.05pt decimal 39.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">           </span>
(11)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:16;mso-yfti-lastrow:yes">
<td width="339" valign="bottom" style=
"width:254.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:92%;tab-stops:decimal dotted 247.5pt left 268.35pt">
<span><i><span style="color:black">Decreases through June
30, 2009<span style=
"mso-tab-count: 1 dotted">......................................</span></span></i>
</span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in decimal 44.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="108" valign="bottom" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 26.25pt decimal 60.65pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">            </span>
(1,261)</span></u></span>
</p>
</td>
<td width="83" valign="bottom" style=
"width:62.05pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:92%; tab-stops:0in 7.05pt decimal 39.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:2">   </span>
(1,297)</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" style="line-height:92%">
<span><span style="color:black">____________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt;line-height:92%">
<span><span style=
"font-size:3.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in;line-height:92%">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Principal amount of the
notes is $500 million for El Paso Corporation and $250 million
for TGP.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in;line-height:92%">
<span><sup><span style="color:black">(2)<span style=
"mso-tab-count:1">         </span> Amount does not reflect $83
million received <span style="mso-spacerun:yes"> </span>in
conjunction with the settlement of fair value hedges related to
our Euro denominated notes.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in;line-height:92%">
<span><sup><span style=
"font-size:8.0pt;line-height:92%;color:black"> </span></sup></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><i><span style="color:black">Credit
Facilities.</span></i> <span style="color:black">As of June
30, 2009, we had total available capacity under various
credit agreements (not including capacity available under the
EPB $750 million revolving credit facility) of approximately
$1.5 billion. In determining our available capacity, we have
assessed our lender’s ability to fund under our various
credit facilities, as further discussed in our 2008 Annual
Report on Form 10-K.</span></span>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><span style="color:black">During the first six months
of 2009, we increased the size of or entered into new letter
of credit facilities totaling $225 million. As of June 30,
2009, we had total letter of credit capacity under these
facilities of $250 million with a weighted average fixed
facility fee of 6.90% and maturities ranging from December
2013 to September 2014. Additionally, in June 2009, $150
million of another letter of credit facility entered into in
2007 matured.</span></span>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><span style="color:black">The availability of
borrowings under our credit agreements and our ability to
incur additional debt is subject to various financial and
non-financial covenants and restrictions. These restrictions
include potential limitations in the credit agreements of
certain of our subsidiaries on their ability to declare and
pay dividends and loan funds to us. As of June 30, 2009 and
December 31, 2008, the restricted net assets of our
consolidated subsidiaries were less than $1 million and
approximately $1 billion. Additionally, the revolving credit
facility of our exploration and production subsidiary is
collateralized by certain of our natural gas and oil
properties and has a borrowing base subject to revaluation on
a semi-annual basis. Our existing borrowing base was approved
by the banks in May 2009 and will be redetermined in November
2009. There have been no significant changes to our
restrictive covenants from those disclosed in our 2008 Annual
Report on Form 10-K and as of June 30, 2009, we were in
compliance with all of our debt covenants.</span></span>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><i><span style="color:black">Letters of
Credit.</span></i> <span style="color:black">We enter into
letters of credit in the ordinary course of our operating
activities as well as periodically in conjunction with the
sales of assets or businesses. As of June 30, 2009, we had
outstanding letters of credit issued under all of our
facilities of approximately $1.6 billion. Included in this
amount is approximately $0.8 billion of letters of credit
securing our recorded obligations related to price risk
management activities.</span></span>
</p>
<p class="MsoNormal" style="line-height:92%">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:92%">
<span><i><span style="color:black">Other.</span></i>
<span style="color:black;mso-bidi-font-style: italic">In the
second quarter of 2009, our wholly owned subsidiary, Elba
Express Company, secured a $165 million non-recourse
financing facility, which is available only to the related
pipeline project. As of June 30, 2009, $99 million has been
borrowed under this facility.</span></span>
</p>
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<p class="MsoNormal">
<a name=
"_AUC84abf4afebea47298d85e94f4614bbe6"><b><span style="color:black">
7. Price Risk Management Activities</span></b></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:7.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">Our price risk management
activities relate primarily to derivatives entered into to
hedge or otherwise reduce <span style=
"mso-spacerun:yes">  </span>(i) the commodity exposure on our
natural gas and oil production; (ii) interest rate exposure
on our long-term debt; and (iii) our historical foreign
currency exposure on our Euro-denominated debt. We also hold
other derivatives not intended to hedge these exposures,
including those related to our legacy trading activities.
When we enter into derivative contracts, we may designate the
derivative as either a cash flow hedge or a fair value hedge,
at which time we prepare the documentation required under
SFAS No. 133. Hedges of cash flow exposure are designed to
hedge forecasted sales transactions or limit the variability
of cash flows to be received or paid related to a recognized
asset or liability. Hedges of fair value exposure are entered
into to protect the fair value of a recognized asset,
liability or firm commitment. A detailed discussion and
analysis of our various price risk management activities
follows below and in the related tables.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Production-Related
Derivatives.</span></i> <span style="color:black">We attempt
to mitigate commodity price risk and stabilize cash flows
associated with our forecasted sales of natural gas and oil
production through the use of derivative natural gas and oil
swaps, basis swaps and option contracts. Our
production-related derivatives do not mitigate all of the
commodity price risks of our sales of natural gas and oil
production and, as a result, we are subject to commodity
price risks on our remaining forecasted natural gas and oil
production. Prior to removing the accounting hedge
designation on all of our production-related derivatives
during the fourth quarter of 2008, certain of these
derivatives were designated as cash flow hedges. As of June
30, 2009 and December 31, 2008, we have production-related
derivatives on 393 TBtu and 187 TBtu of natural gas and 902
MBbl and 3,431 MBbl of oil.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:7.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"margin-right:-1.45pt;text-indent:.2in">
<span><i><span style="color:black">Other Commodity-Based
Derivatives.</span></i> <span style="color:black">In our
Marketing segment, we have long-term natural gas and power
derivative contracts that are primarily related to our legacy
trading activities, which include forwards, swaps and options
that we either intend to manage until their expiration or
seek opportunities to liquidate to the extent it is
economical and prudent. None of these derivatives are
designated as accounting hedges. As of June 30, 2009 and
December 31, 2008, our other commodity based derivative
contracts include (i) natural gas contracts that obligate us
to sell natural gas to power plants and have various
expiration dates ranging from 2012 to 2019, with expected
obligations under individual contracts with third parties
ranging from 12,550 MMBtu/d to 104,750 MMBtu/d and (ii)
derivative power contracts that require us to swap locational
differences in power prices between three power plants in the
PJM eastern region with the PJM west hub on approximately
3,700 GWh from 2009 to 2012, 2,400 GWh for 2013 and 1,700 GWh
from 2014 to April 2016. Additionally, these contracts
require us to provide approximately 1,700 GWh of power per
year and approximately 71 GW of installed capacity per year
in the PJM power pool through April 2016. For both the
natural gas and power contracts discussed above, we have
entered into contracts in previous years to economically
mitigate our exposure to commodity price changes on
substantially all of these volumes, although we continue to
have exposure to changes in locational price differences
between the PJM regions.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></i></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Interest Rate
Derivatives.</span></i><span style="color:black">  We have
long-term debt with variable interest rates that exposes us
to changes in market-based interest rates. We use interest
rate swaps to convert the variable rates on certain of these
debt instruments to a fixed interest rate. As of June 30,
2009 and December 31, 2008, we have interest rate swaps
designated as cash flow hedges that converted the interest
rate on approximately $175 million of debt from a LIBOR-based
variable rate to a fixed rate of 4.56%.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">In addition, we have
long-term debt with fixed interest rates that exposes us to
paying higher than market rates should interest rates
decline. We use interest rate swaps to protect the value of
certain of these debt instruments by converting the fixed
amounts of interest due under the debt agreements to variable
interest payments and have recorded changes in the fair value
of these derivatives in interest expense. As of June 30, 2009
and December 31, 2008, we have interest rate swaps designated
as fair value hedges that converted the interest rate on
approximately $218 million of debt from a fixed rate to a
variable rate of LIBOR plus 4.18%. In addition, as of June
30, 2009 and December 31, 2008, we had interest rate swaps
not designated as hedges with a notional amount of $222
million for which changes in the fair value of these swaps
are substantially eliminated by offsetting
swaps.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style="color:black">Cross-Currency
Derivatives.</span></i><span style="color:black">  In May
2009, our Euro-denominated debt matured and we settled all of
our related cross-currency swaps. These cross-currency swaps
were designated as fair value hedges of this
debt</span></span><span><span style=
"font-family:Tahoma,sans-serif;color:black">.</span></span>
</p>
<p class="MsoNormal" style="line-height:97%">
<span><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style="color:black">Balance Sheet
Presentation.</span></i> <span style="color:black">Our
derivatives are reflected on our balance sheet at their fair
value as assets and liabilities from price risk management
activities. We net our derivative assets and liabilities for
counterparties where we have a legal right of offset and
classify our derivatives as either current or non-current
assets or liabilities based on their anticipated settlement
date. The following table presents the fair value of our
derivatives on a gross basis by contract. The derivative
asset and liability amounts presented below are summarized by
contract type and have not been netted for counterparties
where we have a legal right of offset or for cash collateral
associated with these derivatives, which is not significant
to our financial statements.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="624" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="246" valign="top" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:dotted 147.3pt">
<span><b><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="189" colspan="2" valign="top" style=
"width:141.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:center 1.0in left 139.5pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="mso-tab-count: 1">
      </span> Fair Value of Asset
Derivatives<span style=
"mso-tab-count: 1">    </span></span></u></b></span>
</p>
</td>
<td width="189" colspan="2" valign="top" style=
"width:141.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:center 72.9pt left 144.9pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="mso-tab-count: 1">
    </span> Fair Value of Liability
Derivatives<span style=
"mso-tab-count: 1"> </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="246" valign="top" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:dotted 147.3pt">
<span><b><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="94" valign="top" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:center 31.5pt left 63.0pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="mso-tab-count: 1">
  </span> June 30, 2009<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="95" valign="top" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:center 32.65pt left 65.15pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:90%;color:black">December
31, 2008<span style=
"mso-tab-count:1">              </span></span></u></b></span>
</p>
</td>
<td width="94" valign="top" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:center 33.75pt left 60.75pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="mso-tab-count: 1">
   </span> June 30, 2009 </span></u></b></span>
</p>
</td>
<td width="95" valign="top" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:center 34.9pt left 70.9pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:90%;color:black">December
31, 2008<span style=
"mso-tab-count:1">               </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="246" valign="top" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:dotted 147.3pt">
<span><span style=
"font-size:8.0pt;line-height:90%;color:black"> </span></span>
</p>
</td>
<td width="378" colspan="4" valign="top" style=
"width:283.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:90%">
<span><b><span style=
"font-size:8.0pt;line-height:90%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 147.3pt">
<span><i><span style="color:black">Derivatives Designated
as Hedges</span></i><span style=
"color:black">:</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                       </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                             </span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                         </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 59.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                         </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 147.3pt">
<span><span style="color:black">Cash flow
hedges</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                       </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                             </span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                         </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 59.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                         </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Interest rate
derivatives<span style=
"mso-tab-count:1 dotted">......................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                </span> —</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                      </span>
—</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                 </span>
(16)</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                    </span>
(21)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Fair value
hedges</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                       </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                             </span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                         </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                            </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Interest rate
derivatives<span style=
"mso-tab-count:1 dotted">......................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                     </span>
8</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                        </span>
12</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                     </span>
—</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                        </span>
—</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Cross-currency
derivatives<span style=
"mso-tab-count: 1 dotted">.................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                   </span>
—</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                        </span>
94</span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
—</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                        </span>
—</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Total derivatives
designated as hedges<span style=
"mso-tab-count:1 dotted">.........</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
8</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                      </span>
106</span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                   </span>
(16)</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                      </span>
(21</span></u><span style="color:black">)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10;height:7.65pt">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in; height:7.65pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><i><span style=
"font-size:8.0pt;line-height:90%;color:black"> </span></i></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in; height:7.65pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style=
"font-size:8.0pt;line-height:90%;color:black"> </span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in; height:7.65pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style=
"font-size:8.0pt;line-height:90%;color:black"> </span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in; height:7.65pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style=
"font-size:8.0pt;line-height:90%;color:black"> </span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in; height:7.65pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style=
"font-size:8.0pt;line-height:90%;color:black"> </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><i><span style="color:black">Derivatives not
Designated as Hedges</span></i><span style=
"color:black">:</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                       </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                             </span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                         </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                            </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Commodity-based
derivatives</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                       </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                             </span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                         </span></span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                            </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:13">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style=
"color:black">Production-related<span style=
"mso-tab-count:1 dotted">...............................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span>
626</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                      </span>
738</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span>
(193)</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                      </span>
(56)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:14">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Other natural
gas<span style=
"mso-tab-count:1 dotted">..................................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span>
659</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                      </span>
853</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span>
(852)</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span>
(1,122)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:15">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style=
"color:black">Power-related<span style="mso-tab-count:1 dotted">........................................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                  </span>
70</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                      </span>
111</span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                 </span>
(429)</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                    </span>
(549</span></u><span style="color:black">)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:16">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Total commodity-based
derivatives<span style=
"mso-tab-count: 1 dotted">..............</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span>
1,355</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                  </span>
1,702</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span>
(1,474)</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span>
(1,727)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:17">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-26.45pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Interest rate
derivatives<span style=
"mso-tab-count:1 dotted">................................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
9</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                        </span>
12</span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
(9)</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                      </span>
(12</span></u><span style="color:black">)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:18">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Total derivatives not
designated as hedges<span style=
"mso-tab-count:1 dotted">..</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">             </span>
1,364</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                  </span>
1,714</span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">             </span>
(1,483)</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                </span>
(1,739</span></u><span style=
"color:black">)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:19">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style=
"font-size:8.0pt;line-height:90%;color:black"> </span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="text-decoration:none">
 </span></span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="text-decoration:none">
 </span></span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="text-decoration:none">
 </span></span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style=
"font-size:8.0pt;line-height:90%;color:black"><span style="text-decoration:none">
 </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:20">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-align:left; text-indent:-9.0pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Impact of master netting
arrangements<sup>(1)</sup> </span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">               </span>
(737)</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                    </span>
(743</span></u><span style="color:black">)</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                  </span>
737</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
743</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:21">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Total assets
(liabilities) from price risk management
activities<span style=
"mso-tab-count:1 dotted">...................................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 53.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span>
635</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 66.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                  </span>
1,077</span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 58.45pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span>
(762)</span></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in decimal 65.25pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span>
(1,017)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:22">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.15pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Other derivatives<sup>(
2)</sup><span style=
"mso-tab-count: 1 dotted">.......................................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                   </span>
—</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                        </span>
—</span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                   </span>
(29)</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                      </span>
(55</span></u><span style="color:black">)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:23;mso-yfti-lastrow:yes">
<td width="246" valign="bottom" style=
"width:184.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;tab-stops:dotted 2.5in">
<span><span style="color:black">Total
derivatives<span style=
"mso-tab-count:1 dotted">................................................</span></span></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.8pt decimal 53.95pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">              </span>
635</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 23.75pt decimal 66.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                </span>
1,077</span></u></span>
</p>
</td>
<td width="94" valign="bottom" style=
"width:70.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 21.05pt decimal 58.45pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">              </span>
(791)</span></u></span>
</p>
</td>
<td width="95" valign="bottom" style=
"width:70.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:90%; tab-stops:0in 22.0pt decimal 65.25pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">              </span>
(1,072</span></u><span style=
"color:black">)</span></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal">
<span><span style=
"font-size:8.0pt;color:black">____________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt">
<span><span style=
"font-size:3.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Includes adjustments to
net assets or liabilities to reflect master netting
arrangements we have with our
counterparties.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><sup><span style=
"font-size:3.0pt; color:black"> </span></sup></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(2)<span style=
"mso-tab-count:1">         </span> Included in other current
and noncurrent liabilities in our balance
sheets.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:4.0pt;color:black">.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><i><span style="color:black">Statements of Income,
Comprehensive Income and Cash Flow Presentation.</span></i>
<span style="color:black">Derivatives that we have designated
as accounting hedges impact our revenues or expenses based on
the nature and timing of the transactions that they hedge.
Changes in derivative fair values that are designated as cash
flow hedges are deferred in accumulated other comprehensive
income or loss to the extent that they are effective and then
recognized in earnings when the hedged transactions occur.
Ineffectiveness related to our cash flow hedges is recognized
in earnings as it occurs. Changes in the fair value of
derivatives that are designated as fair value hedges are
recognized in earnings as offsets to the changes in fair
values of the related hedged assets, liabilities or firm
commitments.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black"> </span></span>
</p><span style=
"font-size:10.0pt;font-family:Times New Roman,serif;mso-fareast-font-family: Times New Roman;color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">Derivatives that we have not
designated as accounting hedges are marked-to-market each
period and changes in their fair value are generally
reflected as operating revenues, except as indicated in the
table below. In our cash flow statement, cash inflows and
outflows associated with the settlement of our derivative
instruments are recognized in operating cash flows (other
than those derivatives intended to hedge the principal
amounts of our foreign currency denominated debt, which are
recorded in financing activities). Listed below are the
impacts to our income statement and statement of
comprehensive income for the quarter and six months ended
June 30, 2009:</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="298" valign="top" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 239.9pt">
<span><b><span style="color:black">Quarter Ended June 30,
2009</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 239.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="80" valign="top" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.15pt left 42.35pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
        </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.15pt left 42.35pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span> Operating</span></b></span>
</p>
<p class="MsoHeading8">
<span><span style="color:black">Revenues<span style=
"mso-tab-count:1">        </span></span></span>
</p>
</td>
<td width="71" valign="top" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 17.15pt left 34.3pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 17.15pt left 34.3pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> Interest</span></b></span>
</p>
<p class="MsoHeading9">
<span><span style="color:black">Expense<span style=
"mso-tab-count:1"> </span></span></span>
</p>
</td>
<td width="62" valign="top" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.3pt left 30.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.3pt left 30.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> Other</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.3pt left 30.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black">Income
</span></u></b></span>
</p>
</td>
<td width="113" valign="top" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.7pt left 1.1in">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.7pt left 1.1in">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">Other
Comprehensive</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.7pt left 1.1in">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> Income (Loss)<span style=
"mso-tab-count:1">      </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><i><span style="color:black"> </span></i></span>
</p>
</td>
<td width="326" colspan="4" valign="bottom" style=
"width:244.35pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><b style=
"mso-bidi-font-weight:normal"><span style="font-size:8.0pt;line-height: 93%;color:black">
(in millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><i><span style="color:black">Commodity-based
derivatives</span></i></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span></span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span></span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                  </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Production-related
derivatives<sup>(1)</sup><span style=
"mso-tab-count:1 dotted">..................................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<pre style=
"line-height:93%;tab-stops:0in 4.95pt decimal 34.2pt">
<span><span style=
"font-family:Times New Roman,serif;color:black"><span style=
"mso-tab-count:1"> </span>$<span style=
"mso-tab-count:1"> </span>55</span></span>
</pre>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<pre style=
"line-height:93%;tab-stops:2.7pt 4.05pt decimal 25.05pt">
<span><span style=
"font-family:Times New Roman,serif;color:black">$<span style=
"mso-tab-count:1"> </span>—</span></span>
</pre>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span> —</span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                          </span>
(99)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Other natural gas and
power derivatives not designated as hedges<span style=
"mso-tab-count:1 dotted">...................................................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">        </span> 18</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">      </span> —</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">       </span> —</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                              </span>
—</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Total commodity-based
derivatives<span style=
"mso-tab-count: 1 dotted">...............................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">        </span> 73</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">      </span> —</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">       </span> —</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                            </span>
(99)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 8.1pt decimal 34.2pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><i><span style="color:black">Interest rate and
foreign currency
derivatives<sup>(2)</sup></span></i></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span></span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span></span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                  </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Designated as cash flow
hedges<sup>(3)</sup><span style=
"mso-tab-count:1 dotted">...............................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 1</span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (5)</span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                </span>
5</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Designated as fair value
hedges<sup>(4)</sup><span style=
"mso-tab-count:1 dotted">...............................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 1</span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                              </span>
—</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><i><span style="color:black">Cross-currency
derivatives designated as fair value
hedges</span></i><sup><span style=
"color:black">(4)</span></sup><span style=
"color:black"><span style=
"mso-tab-count:1 dotted">.............................................................................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">        </span> —</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">        </span> 1</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">         </span> 3</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                              </span>
—</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Total interest rate and
foreign currency derivatives<span style=
"mso-tab-count:1 dotted">.....</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">        </span> —</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">        </span> 3</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">       </span> (2)</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                                </span>
5</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Total price risk
management activities<sup>(5)</sup><span style=
"mso-tab-count:1 dotted">........................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.95pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">     </span> 73</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.25pt decimal 25.05pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">     </span>
3</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">     </span>
(2)</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                          </span>
(94)</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoFootnoteText">
<span><span style="color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="298" valign="top" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 239.9pt">
<span><b><span style="color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 239.9pt">
<span><b><span style="color:black"><span style=
"mso-spacerun:yes"> </span>Six Months Ended June 30,
2009</span></b></span>
</p>
</td>
<td width="80" valign="top" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoHeading8">
<span><span style="color:black"><span style=
"text-decoration:none"> </span></span></span>
</p>
</td>
<td width="71" valign="top" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoHeading9">
<span><span style="color:black"><span style=
"text-decoration:none"> </span></span></span>
</p>
</td>
<td width="62" valign="top" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.3pt left 30.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
</td>
<td width="113" valign="top" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.7pt left 1.1in">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><i><span style="color:black">Commodity-based
derivatives</span></i></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span></span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span></span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                  </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Production-related
derivatives<sup>(1)</sup><span style=
"mso-tab-count:1 dotted">..................................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<pre style=
"line-height:93%;tab-stops:0in 4.95pt decimal 34.2pt">
<span><span style=
"font-family:Times New Roman,serif;color:black"><span style=
"mso-tab-count:1"> </span>$<span style=
"mso-tab-count:1"> </span>449</span></span>
</pre>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<pre style=
"line-height:93%;tab-stops:2.7pt 4.05pt decimal 25.05pt">
<span><span style=
"font-family:Times New Roman,serif;color:black">$<span style=
"mso-tab-count:1"> </span>—</span></span>
</pre>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span> —</span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                       </span>
(227)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Other natural gas and
power derivatives not designated as hedges<span style=
"mso-tab-count:1 dotted">...................................................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">        </span> 73</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">      </span> —</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">       </span> —</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                              </span>
—</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Total commodity-based
derivatives<span style=
"mso-tab-count: 1 dotted">...............................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">     </span> 522</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">      </span> —</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">       </span> —</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                          </span>
(227)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 8.1pt decimal 34.2pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><i><span style="color:black">Interest rate and
foreign currency
derivatives<sup>(2)</sup></span></i></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span></span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span></span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                  </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Designated as cash flow
hedges<sup>(3)</sup><span style=
"mso-tab-count:1 dotted">...............................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 2</span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (5)</span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                </span>
8</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Designated as fair value
hedges<sup>(4)</sup><span style=
"mso-tab-count:1 dotted">...............................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 2</span></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 27.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 78.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                              </span>
—</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><i><span style="color:black">Cross-currency
derivatives designated as fair value
hedges</span></i><sup><span style=
"color:black">(4)</span></sup><span style=
"color:black"><span style=
"mso-tab-count:1 dotted">.............................................................................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">        </span> —</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">        </span> 3</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">     </span> (21)</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                              </span>
—</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Total interest rate and
foreign currency derivatives<span style=
"mso-tab-count:1 dotted">.....</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.5pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">        </span> —</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.25pt decimal 25.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">        </span> 7</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">     </span> (26)</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                                </span>
8</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11;mso-yfti-lastrow:yes">
<td width="298" valign="bottom" style=
"width:223.65pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 239.9pt">
<span><span style="color:black">Total price risk
management activities <sup>(5)</sup><span style=
"mso-tab-count:1 dotted">.......................</span></span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.95pt decimal 34.2pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">   </span> 522</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:53.1pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.25pt decimal 25.05pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">     </span>
7</span></u></span>
</p>
</td>
<td width="62" valign="bottom" style=
"width:.65in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.55pt decimal 27.05pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">   </span>
(26)</span></u></span>
</p>
</td>
<td width="113" valign="bottom" style=
"width:84.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 31.5pt decimal 78.75pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                       </span>
(219)</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoFootnoteText">
<span><span style="color:black">____________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt">
<span><span style=
"font-size:3.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Included in operating
revenues for the quarter and six months ended June 30, 2009
is $99 million and $227 million representing the amount of
accumulated other comprehensive income that was reclassified
into income related to commodity-based derivatives for which
we removed the hedging designation during the fourth quarter
of 2008. We anticipate that approximately $173 million of our
accumulated other comprehensive income will be reclassified
to operating revenues during the next twelve
months.</span></sup></span>
</p>
<p class="MsoNormal">
<span><sup><span style=
"font-size:3.0pt;color:black"> </span></sup></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(2)<span style=
"mso-tab-count:1">         </span> We have not reflected in
this table approximately $3 million and $5 million of losses
recognized for the quarter and six months ended June 30, 2009
related to interest rate derivatives not designated as hedges
that were offset completely by the impact of certain swaps.
Settlements related to these swaps were not material for the
quarter and six months ended June 30,
2009.</span></sup></span>
</p>
<p class="MsoNormal">
<span><sup><span style=
"font-size:3.0pt;color:black"> </span></sup></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(3)<span style=
"mso-tab-count:1">         </span> Included in these amounts
is less than $1 million representing the amount of
accumulated other comprehensive income that was reclassified
into income related to these hedges. We anticipate that $2
million of our accumulated other comprehensive income will be
reclassified to interest expense during the next twelve
months. No ineffectiveness was recognized on our interest
rate cash flow hedges for the quarter and six months ended
June 30, 2009.</span></sup></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(4)<span style=
"mso-tab-count:1">         </span> Amounts only reflect the
financial statement impact of these derivative contracts. The
table does not reflect the offsetting impact of changes to
the carrying value of the underlying debt hedged by these
derivative instruments as a result of changes in fair value
attributable to the risk being hedged, which is also recorded
in other income and interest expense and substantially
offsets the financial statement impact of these derivatives.
We also recorded a decrease to interest expense of
approximately $1 million and $2 million during the quarter
and six months ended June 30, 2009 as a result of converting
the interest rate on the underlying debt from a fixed rate to
a floating rate. No ineffectiveness was recognized on our
fair value hedges for the quarter and six months ended June
30, 2009.</span></sup></span>
</p>
<p class="MsoNormal">
<span><sup><span style=
"font-size:3.0pt;color:black"> </span></sup></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(5)<span style=
"mso-tab-count:1">         </span> We also had approximately
$26 million and $25 million of gains for the quarter and six
months ended June 30, 2009 recognized in operating expenses
related to other derivative instruments not associated with
our price risk management activities.</span></sup></span>
</p>
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<p class="MsoNormal">
<a name=
"_AUC1bdf123ecd2a40c3ab354a6c2f264404"><b><span style="color:black">
5. Earnings Per Share</span></b></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">We calculated basic and
diluted earnings per common share as follows:</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style="color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 217.8pt">
<span><b><span style="color:black">Quarters Ended June
30,</span></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:4.6pt; line-height:93%;tab-stops:center 50.75pt left 99.0pt">
<span><b><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 51.75pt left 101.25pt">
<span><b><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 217.8pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:4.6pt; line-height:93%;tab-stops:center 50.75pt left 99.0pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
                </span> 2009<span style=
"mso-tab-count:1">                </span></span></u></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 51.75pt left 101.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
                  </span> 2008<span style=
"mso-tab-count:1">                 </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 217.8pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="70" valign="top" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:5.05pt; line-height:93%;tab-stops:center 27.0pt left 49.5pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
     </span> Basic<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="71" valign="top" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:4.15pt; line-height:93%;tab-stops:center 28.15pt left 46.15pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
    </span> Diluted<span style=
"mso-tab-count:1"> </span></span></u></b></span>
</p>
</td>
<td width="70" valign="top" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 24.75pt left 47.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
      </span> Basic<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="71" valign="top" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 25.9pt left 48.4pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> Diluted<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 217.8pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="282" colspan="4" valign="top" style=
"width:211.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions, except per share amounts)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Net income attributable
to El Paso Corporation<span style=
"mso-tab-count:1 dotted">........................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> $<span style=
"mso-tab-count:1">      </span> 89</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> $<span style=
"mso-tab-count:1">      </span> 89</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> 191</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">       </span> 191</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Convertible preferred
stock dividends<span style=
"mso-tab-count:1 dotted">..........................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">       </span> (10)</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">       </span> (10)</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.25pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">         </span>
—</span></u><sup><span style=
"color:black">(1)</span></sup></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">            </span> —</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Net income attributable
to El Paso Corporation’s</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">common
stockholders<span style=
"mso-tab-count:1 dotted">............................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">      </span> 79</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">      </span> 79</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">     </span>
191</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">       </span> 191</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Weighted average common
shares outstanding<span style=
"mso-tab-count:1 dotted">.........................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 696</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 696</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 698</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 698</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Effect of dilutive
securities:</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Options and restricted
stock<span style=
"mso-tab-count: 1 dotted">......................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">           </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">             </span> 3</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span> 5</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Convertible preferred
stock<span style=
"mso-tab-count: 1 dotted">.......................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">         </span> —</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">         </span> —</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">            </span>
58</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:13">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Weighted average common
shares outstanding and dilutive securities<span style=
"mso-tab-count:1 dotted">......................................................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double"><span style=
"mso-tab-count:1">      </span> 696</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double"><span style=
"mso-tab-count:1">      </span> 699</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"mso-tab-count:1">       </span> 698</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"mso-tab-count:1">          </span> 761</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:14">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.7pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:15">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Basic and diluted
earnings per common share:</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.7pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:16">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-26.45pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Net income attributable
to El Paso Corporation’s</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.7pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:17">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:45.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-22.7pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">common
stockholders<span style=
"mso-tab-count:1 dotted">...........................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 24.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">   </span> 0.11</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 24.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">   </span> 0.11</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 20.25pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">   </span>
0.27</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.9pt 37.7pt 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">      </span> 0.25</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:18">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 217.8pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:4.6pt; line-height:93%;tab-stops:center 50.75pt left 99.0pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 51.75pt left 101.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:19">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 217.8pt">
<span><b><span style="color:black">Six Months Ended June
30,</span></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:4.6pt; line-height:93%;tab-stops:center 50.75pt left 99.0pt">
<span><b><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 51.75pt left 101.25pt">
<span><b><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:20">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 217.8pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:4.6pt; line-height:93%;tab-stops:center 50.75pt left 99.0pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
                </span> 2009<span style=
"mso-tab-count:1">                </span></span></u></b></span>
</p>
</td>
<td width="141" colspan="2" valign="top" style=
"width:105.75pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 51.75pt left 101.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
                  </span> 2008<span style=
"mso-tab-count:1">                 </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:21">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 217.8pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="70" valign="top" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:5.05pt; line-height:93%;tab-stops:center 27.0pt left 49.5pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
     </span> Basic<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="71" valign="top" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:4.15pt; line-height:93%;tab-stops:center 25.9pt 28.15pt left 46.15pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
   </span> Diluted<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="70" valign="top" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 24.75pt left 47.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
      </span> Basic<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="71" valign="top" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 25.9pt left 48.4pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> Diluted<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:22">
<td width="342" valign="top" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 217.8pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="282" colspan="4" valign="top" style=
"width:211.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions, except per share amounts)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:23">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Net income (loss)
attributable to El Paso Corporation<span style=
"mso-tab-count:1 dotted">..............</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> $<span style=
"mso-tab-count:1">   </span> (880)</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> $<span style=
"mso-tab-count:1">   </span> (880)</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> 410</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">       </span> 410</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:24">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Convertible preferred
stock dividends<span style=
"mso-tab-count:1 dotted">..........................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">       </span> (19)</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">       </span> (19)</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">        </span>
(19</span></u><span style=
"color:black">)<sup>(1)</sup></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">            </span> —</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:25">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Net income (loss)
attributable to El Paso Corporation’s</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:26">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">common
stockholders<span style=
"mso-tab-count:1 dotted">............................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">   </span> (899)</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">   </span> (899)</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">     </span>
391</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">       </span> 410</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:27">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:28">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Weighted average common
shares outstanding<span style=
"mso-tab-count:1 dotted">.........................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 695</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 695</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 698</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 698</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:29">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Effect of dilutive
securities:</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:30">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Options and restricted
stock<span style=
"mso-tab-count: 1 dotted">......................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">           </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">           </span> —</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span> 4</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:31">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Convertible preferred
stock<span style=
"mso-tab-count: 1 dotted">.......................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">         </span> —</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u><span style=
"mso-tab-count:1">         </span> —</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">            </span>
58</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:32">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Weighted average common
shares outstanding and dilutive securities<span style=
"mso-tab-count:1 dotted">......................................................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double"><span style=
"mso-tab-count:1">      </span> 695</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double"><span style=
"mso-tab-count:1">      </span> 695</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.75pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"mso-tab-count:1">       </span> 698</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"mso-tab-count:1">          </span> 760</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:33">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 36.95pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.7pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:34">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Basic and diluted
earnings per common share:</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.7pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:35">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-26.45pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">Net income (loss)
attributable to El Paso Corporation’s</span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.7pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 39.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:36;mso-yfti-lastrow:yes">
<td width="342" valign="bottom" style=
"width:256.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:45.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-22.7pt;line-height:93%;tab-stops:dotted 247.5pt">
<span><span style="color:black">common
stockholders<span style=
"mso-tab-count:1 dotted">...........................................................</span></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 24.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">  </span> (1.29)</u></span></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 4.7pt decimal 24.05pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> <u style=
"text-underline:double">$<span style=
"mso-tab-count:1">  </span> (1.29)</u></span></span>
</p>
</td>
<td width="70" valign="bottom" style=
"width:52.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 20.25pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">   </span>
0.56</span></u></span>
</p>
</td>
<td width="71" valign="bottom" style=
"width:52.9pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 25.9pt 37.7pt 39.4pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">      </span> 0.54</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal">
<span><span style="color:black">________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt">
<span><span style=
"font-size:3.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Dividends were declared in
February and March 2008.<span style=
"mso-spacerun:yes"> </span> No dividends were declared during
the quarter ended June 30, 2008.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">We exclude potentially
dilutive securities (as well as their related income
statement impacts) from the determination of diluted earnings
per share when their impact on net income attributable to El
Paso Corporation per common share is antidilutive. These
potentially dilutive securities consist of our employee stock
options, restricted stock, convertible preferred stock and
trust preferred securities. For the six months ended June 30,
2009, we incurred losses attributable to El Paso Corporation
and, accordingly, excluded all of our potentially dilutive
securities from the determination of diluted earnings per
share as their impact on loss per common share was
antidilutive. For the quarters ended June 30, 2009 and 2008,
and six months ended June 30, 2008, certain of our employee
stock options, restricted stock and trust preferred
securities were antidilutive. Additionally, for the quarter
ended June 30, 2009, our convertible preferred stock was
antidilutive. For a further discussion of our potentially
dilutive securities, see our 2008 Annual Report on Form
10-K.</span></span>
</p>
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<p class="MsoNormal">
<a name=
"_AUCf02dab150b0f4a6abc3cb3ccd469e0bf"><b><span style="color:black">
6. Fair Value Measurements</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">We apply the provisions of
SFAS No. 157, <i>Fair Value Measurements</i>, to our assets
and liabilities that are measured at fair value. We adopted
the provisions of SFAS No. 157 on January 1, 2009 for our
non-financial assets and liabilities that are measured at
fair value on a non-recurring basis, which primarily relates
to any impairment of long-lived assets or investments. During
the six months ended June 30, 2009, we did not have any
non-financial assets and liabilities that were recorded at
fair value subsequent to their initial
measurement.</span></span>
</p>
<p class="MsoNormal">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">We use various methods to
determine the fair values of our financial instruments and
other derivatives that are measured at fair value on a
recurring basis, which depend on a number of factors,
including the availability of observable market data over the
contractual term of the underlying instrument. For some of
our instruments, the fair value is calculated based on
directly observable market data or data available for similar
instruments in similar markets. For other instruments, the
fair value may be calculated based on these inputs as well as
other assumptions related to estimates of future settlements
of these instruments. We separate our financial instruments
and other derivatives into three levels (Levels 1, 2 and 3)
based on our assessment of the availability of observable
market data and the significance of non-observable data used
to determine the fair value of our instruments. Our
assessment of an instrument can change over time based on the
maturity or liquidity of the instrument, which could result
in a change in the classification of the instruments between
levels.</span></span>
</p>
<p class="MsoNormal">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><span style="color:black">Each of these levels and our
corresponding instruments classified by level are further
described below:</span></span>
</p>
<p class="MsoNormal" style="line-height:97%">
<span><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"margin-left:.5in;text-indent:-.3in;line-height:97%">
<span><b><span style="color:black">•<span style=
"mso-tab-count:1">       </span></span></b> <span style=
"color:black">Level 1 instruments’ fair values are based on
quoted prices for the instruments in actively traded markets.
Included in this level are our marketable securities invested
in non-qualified compensation plans whose fair value is
determined using the quoted prices of these
instruments.</span></span>
</p>
<p class="MsoNormal" style="line-height:97%">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"margin-left:.5in;text-indent:-.3in;line-height:97%">
<span><b><span style="color:black">•<span style=
"mso-tab-count:1">       </span></span></b> <span style=
"color:black">Level 2 instruments’ fair values are primarily
based on pricing data representative of quoted prices for
similar assets and liabilities in active markets (or
identical assets and liabilities in less active markets).
Included in this level are our foreign currency and interest
rate swaps. Also included in this level are our
production-related natural gas and oil derivatives and
certain of our other natural gas derivatives (such as natural
gas supply arrangements) whose fair values are based on
commodity pricing data obtained from third party pricing
sources and our creditworthiness or that of our
counterparties (adjusted for collateral related to our asset
positions).</span></span>
</p>
<p class="MsoNormal" style="line-height:97%">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"margin-left:.5in;text-indent:-.3in;line-height:97%">
<span><b><span style="color:black">•<span style=
"mso-tab-count:1">       </span></span></b> <span style=
"color:black">Level 3 instruments’ fair values are partially
calculated using pricing data that is similar to Level 2
above, but their fair value also reflects adjustments for
being in less liquid markets or having longer contractual
terms. For these instruments, we obtain pricing data from
third party pricing sources, adjust this data based on the
liquidity of the underlying forward markets over the
contractual terms and use the adjusted pricing data to
develop an estimate of forward price curves that market
participants would use. The curves are then used to estimate
the value of settlements in future periods based on
contractual settlement quantities and dates. Our valuation of
these instruments considers specific contractual terms,
statistical and simulation analysis, present value concepts
and other internal assumptions related to (i) contract
maturities that extend beyond the periods in which quoted
market prices are available; (ii) the uniqueness of the
contract terms; (iii) the limited availability of forward
pricing information in markets where there is a lack of
viable participants, such as in the Pennsylvania-New
Jersey-Maryland (PJM) forward power market and the forward
market for ammonia; and (iv) our creditworthiness or that of
our counterparties (adjusted for collateral related to our
asset positions). Since a significant portion of the fair
value of our power-related derivatives and certain of our
remaining natural gas derivatives with longer terms or in
less liquid markets than similar Level 2 derivatives rely on
the techniques discussed above, we classify these instruments
as Level 3 instruments.</span></span>
</p>
<p class="MsoNormal" style="line-height:97%">
<span><span style=
"font-size:6.0pt;line-height:97%;color:black"> </span></span>
</p><span style=
"font-size:10.0pt;line-height:97%;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span>
<p class="MsoNormal" style="text-indent:.2in;line-height:97%">
<span><span style="color:black">Listed below are the fair
values of our financial instruments that are recorded at fair
value classified in each level at June 30, 2009 (in
millions):</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="630" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="405" valign="top" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 297.7pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="56" valign="top" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 17.9pt left 36.8pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> Level 1<span style=
"mso-tab-count:1"> </span></span></u></b></span>
</p>
</td>
<td width="56" valign="top" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.6pt left 33.2pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> Level 2 </span></u></b></span>
</p>
</td>
<td width="56" valign="top" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.6pt left 33.2pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> Level 3 </span></u></b></span>
</p>
</td>
<td width="56" valign="top" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.6pt left 33.2pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> Total<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><i><span style=
"color:black">Assets</span></i></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Commodity-based
derivatives</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 38.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Production-related
natural gas and oil derivatives<span style=
"mso-tab-count:1 dotted">................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">   </span> 499</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">      </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">   </span> 499</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Other natural gas
derivatives<span style=
"mso-tab-count: 1 dotted">....................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 55</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 27</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 82</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Power-related
derivatives<span style=
"mso-tab-count:1 dotted">...........................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 46</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 46</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Interest rate
derivatives<span style=
"mso-tab-count:1 dotted">..................................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 8</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 8</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Marketable securities
invested in non-qualified compensation
plans<span style="mso-tab-count:1 dotted">...</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">         </span> 19</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">        </span> 19</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Total
assets<span style="mso-tab-count:1 dotted">...................................................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">         </span> 19</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">     </span> 562</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">        </span> 73</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">     </span> 654</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"text-decoration:none"> </span></span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><i><span style=
"color:black">Liabilities</span></i></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.2pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Commodity-based
derivatives</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">              </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Production-related
natural gas and oil derivatives<span style=
"mso-tab-count:1 dotted">................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (66)</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (66)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:13">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Other natural gas
derivatives<span style=
"mso-tab-count: 1 dotted">....................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">    </span> (127)</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">    </span> (148)</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">    </span> (275)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:14">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Power-related
derivatives<span style=
"mso-tab-count:1 dotted">...........................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">    </span> (405)</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">    </span> (405)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:15">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Interest rate
derivatives<span style=
"mso-tab-count:1 dotted">..................................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (16)</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (16)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:16">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Other<span style=
"mso-tab-count:1 dotted">..................................................................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">      </span> (29)</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">      </span> (29)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:17">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:25.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Total
liabilities<span style=
"mso-tab-count:1 dotted">..............................................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">          </span> —</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">    </span> (209)</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">    </span> (582)</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">    </span> (791)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:18;mso-yfti-lastrow:yes">
<td width="405" valign="bottom" style=
"width:303.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:35.45pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 297.7pt">
<span><span style="color:black">Total<span style=
"mso-tab-count:1 dotted">..........................................................................................................</span></span></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 33.65pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">       </span> 19</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">   </span>
353</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">  </span>
(509)</span></u></span>
</p>
</td>
<td width="56" valign="bottom" style=
"width:42.25pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.65pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">  </span>
(137)</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">On certain derivative
contracts recorded as assets we are exposed to the risk that
our counterparties may not be able to perform or post the
required collateral, if any, with us. We have assessed this
counterparty risk in light of the collateral our
counterparties have posted with us and the current
instability in the credit markets. Based on this assessment,
we have determined that our exposure is primarily related to
our production-related derivatives and foreign currency swaps
and is limited to five financial institutions, each of which
has a current Standard & Poor’s credit rating of A or
better.</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">The following table presents
the changes in our financial assets and liabilities included
in Level 3 for the quarter and six months ended June 30, 2009
(in millions):</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="625" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="192" valign="top" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 107.9pt">
<span><b><span style="color:black">Quarter Ended June 30,
2009</span></b></span>
</p>
</td>
<td width="69" valign="top" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 26.85pt left 53.75pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 26.85pt left 53.75pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 22.05pt left 45.9pt">
<span><b><span style=
"font-size:8.0pt;color:black">Balance
at</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 22.05pt left 45.9pt">
<span><b><span style=
"font-size:8.0pt;color:black">Beginning
of</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 22.05pt left 45.9pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">   </span> Period<span style=
"mso-tab-count:1">    </span></span></u></b></span>
</p>
</td>
<td width="97" valign="top" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 27.95pt left 59.45pt">
<span><b><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">           </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 27.95pt left 59.45pt">
<span><b><span style=
"font-size:8.0pt;color:black">Change in
fair</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 27.95pt left 59.45pt">
<span><b><span style=
"font-size:8.0pt;color:black">value reflected
in</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 27.95pt left 59.45pt">
<span><b><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">    </span>
operating</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 31.1pt left 59.45pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">    </span>
revenues<sup>(1)</sup><span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
<td width="98" valign="top" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 28.65pt left 59.7pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 28.65pt left 59.7pt">
<span><b><span style=
"font-size:8.0pt;color:black">Change in
fair</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 28.65pt left 59.7pt">
<span><b><span style=
"font-size:8.0pt;color:black">value reflected
in</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 28.65pt left 59.7pt">
<span><b><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">    </span>
operating</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 28.65pt left 59.7pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">    </span>
expenses<sup>(2)</sup><span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="80" valign="top" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 24.9pt left 49.8pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 24.9pt left 49.8pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 24.9pt left 49.8pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 19.9pt left 46.0pt">
<span><b><span style=
"font-size:8.0pt;color:black">Settlements,</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 19.9pt left 46.0pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">      </span> net<span style=
"mso-tab-count:1">        </span></span></u></b></span>
</p>
</td>
<td width="90" valign="top" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 38.5pt left 77.0pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 38.5pt left 77.0pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 38.5pt left 77.0pt">
<span><b><span style=
"font-size:8.0pt;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 31.1pt left 63.5pt">
<span><b><span style=
"font-size:8.0pt;color:black">Balance at End
of</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 31.1pt left 63.5pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"mso-tab-count:1">       </span> Period<span style=
"mso-tab-count:1">        </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="192" valign="bottom" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 1.75in">
<span><span style="color:black">Assets<span style=
"mso-tab-count:1 dotted">............................................</span></span></span>
</p>
</td>
<td width="69" valign="bottom" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 45.0pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">            </span> 79</span></span>
</p>
</td>
<td width="97" valign="bottom" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 24.4pt decimal 59.45pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                   </span>
(4)</span></span>
</p>
</td>
<td width="98" valign="bottom" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 27.0pt decimal 59.7pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                   </span>
—</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .2in decimal 45.1pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">             </span> (2)</span></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 62.15pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                    </span>
73</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="192" valign="bottom" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 1.75in">
<span><span style="color:black">Liabilities<span style=
"mso-tab-count:1 dotted">......................................</span></span></span>
</p>
</td>
<td width="69" valign="bottom" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 45.0pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">           </span>
(659</span></u><span style="color:black">)</span></span>
</p>
</td>
<td width="97" valign="bottom" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 24.4pt decimal 59.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
26</span></u></span>
</p>
</td>
<td width="98" valign="bottom" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 27.0pt decimal 59.7pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
26</span></u></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .2in decimal 45.1pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">              </span>
25</span></u></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 62.15pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                  </span>
(582)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="192" valign="bottom" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 1.75in">
<span><span style="color:black">Total<span style=
"mso-tab-count:1 dotted">.........................................</span></span></span>
</p>
</td>
<td width="69" valign="bottom" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 45.0pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">        </span>
(580</span></u><span style="color:black">)</span></span>
</p>
</td>
<td width="97" valign="bottom" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 24.4pt decimal 59.45pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                  </span>
22</span></u></span>
</p>
</td>
<td width="98" valign="bottom" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 27.0pt decimal 59.7pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                   </span>
26</span></u></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .2in decimal 45.1pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">            </span>
23</span></u></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 62.15pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                </span>
(509)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="192" valign="top" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 107.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 107.9pt">
<span><b><span style="color:black">Six Months Ended June
30, 2009</span></b></span>
</p>
</td>
<td width="69" valign="top" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 22.05pt left 45.9pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
<td width="97" valign="top" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 31.1pt left 59.45pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
<td width="98" valign="top" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 28.65pt left 59.7pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
<td width="80" valign="top" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 19.9pt left 46.0pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
<td width="90" valign="top" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:center 31.1pt left 63.5pt">
<span><b><u><span style=
"font-size:8.0pt;color:black"><span style=
"text-decoration:none"> </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="192" valign="bottom" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 1.75in">
<span><span style="color:black">Assets<span style=
"mso-tab-count:1 dotted">............................................</span></span></span>
</p>
</td>
<td width="69" valign="bottom" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 12.05pt decimal 44.55pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">         </span> 103</span></span>
</p>
</td>
<td width="97" valign="bottom" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 24.4pt decimal 59.45pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                 </span>
(25)</span></span>
</p>
</td>
<td width="98" valign="bottom" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 27.0pt decimal 59.7pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                   </span>
—</span></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .2in decimal 45.1pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">             </span> (5)</span></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 62.15pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">                    </span>
73</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="192" valign="bottom" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 1.75in">
<span><span style="color:black">Liabilities<span style=
"mso-tab-count:1 dotted">......................................</span></span></span>
</p>
</td>
<td width="69" valign="bottom" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 12.05pt decimal 44.55pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">          </span>
(751</span></u><span style="color:black">)</span></span>
</p>
</td>
<td width="97" valign="bottom" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 24.4pt decimal 59.45pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
88</span></u></span>
</p>
</td>
<td width="98" valign="bottom" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 27.0pt decimal 59.7pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                     </span>
25</span></u></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .2in decimal 45.1pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">              </span>
56</span></u></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 62.15pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">                  </span>
(582)</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes">
<td width="192" valign="bottom" style=
"width:2.0in;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 1.75in">
<span><span style="color:black">Total<span style=
"mso-tab-count:1 dotted">.........................................</span></span></span>
</p>
</td>
<td width="69" valign="bottom" style=
"width:51.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 12.05pt decimal 44.55pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">        </span>
(648</span></u><span style="color:black">)</span></span>
</p>
</td>
<td width="97" valign="bottom" style=
"width:72.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 24.4pt decimal 59.45pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                  </span>
63</span></u></span>
</p>
</td>
<td width="98" valign="bottom" style=
"width:73.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 27.0pt decimal 59.7pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                   </span>
25</span></u></span>
</p>
</td>
<td width="80" valign="bottom" style=
"width:59.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .2in decimal 45.1pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">            </span>
51</span></u></span>
</p>
</td>
<td width="90" valign="bottom" style=
"width:67.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 23.65pt decimal 62.15pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">                </span>
(509)</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal">
<span><span style="color:black">___________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt">
<span><span style=
"font-size:3.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Includes approximately $20
million and $45 million of net gains that had not been
realized through settlements for the quarter and six months
ended June 30, 2009.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><sup><span style=
"font-size:3.0pt; color:black"> </span></sup></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(2)<span style=
"mso-tab-count:1">         </span> Includes approximately $26
million and $25 million of net gains that had not been
realized through settlements for the quarter and six months
ended June 30, 2009.</span></sup></span>
</p>
<p class="MsoNormal" style=
"text-indent:.2in;line-height:92%;mso-layout-grid-align: none;text-autospace:none">
<span><span style="color:black"> </span></span>
</p><span style=
"font-size:10.0pt;line-height:92%;font-family:Times New Roman,serif; mso-fareast-font-family:Times New Roman;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span>
<p class="MsoNormal" style=
"text-indent:.2in;line-height:92%;mso-layout-grid-align: none;text-autospace:none">
<span><span style="color:black">The following table reflects
the carrying value and fair value of our financial
instruments:</span></span>
</p>
<p class="MsoNormal" style=
"line-height:92%;mso-layout-grid-align:none; text-autospace:none">
<span><span style=
"font-size:5.0pt;line-height:92%;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="624" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="372" valign="top" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:dotted 269.65pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="126" colspan="2" valign="top" style=
"width:94.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 44.9pt left 89.8pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><u><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
        </span> June 30, 2009<span style=
"mso-tab-count:1">        </span></span></u></b></span>
</p>
</td>
<td width="126" colspan="2" valign="top" style=
"width:94.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 44.9pt left 89.8pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><u><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
    </span> December 31, 2008<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="372" valign="top" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:dotted 269.65pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
<p class="MsoNormal" style=
"line-height:92%;tab-stops:dotted 269.65pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="63" valign="top" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
 </span> Carrying</span></b></span>
</p>
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><u><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
  </span> Amount<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="63" valign="top" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
     </span> Fair</span></b></span>
</p>
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><u><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
    </span> Value<span style=
"mso-tab-count:1">    </span></span></u></b></span>
</p>
</td>
<td width="63" valign="top" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
 </span> Carrying</span></b></span>
</p>
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><u><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
  </span> Amount<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="63" valign="top" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
     </span> Fair</span></b></span>
</p>
<p class="MsoNormal" style=
"line-height:92%;tab-stops:center 21.25pt left 42.55pt; mso-layout-grid-align:none;text-autospace:none">
<span><b><u><span style=
"font-size:8.0pt; line-height:92%;color:black"><span style="mso-tab-count:1">
    </span> Value<span style=
"mso-tab-count:1">    </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="372" valign="top" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:dotted 269.65pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style=
"font-size:8.0pt; line-height:92%;color:black"> </span></span>
</p>
</td>
<td width="252" colspan="4" valign="top" style=
"width:189.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:92%; mso-layout-grid-align:none;text-autospace:none">
<span><b><span style=
"font-size:8.0pt; line-height:92%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="372" valign="bottom" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"margin-top:0in;margin-right:5.05pt;margin-bottom: 0in;margin-left:5.05pt;margin-bottom:.0001pt;text-indent:-5.05pt;line-height: 92%;tab-stops:dotted 279.0pt;mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black">Long-term financing
obligations, including current maturities<span style=
"mso-tab-count:1 dotted">............</span></span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:5.65pt decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">  </span> $ 13,646</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in 7.0pt decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">  </span> $ 12,417</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:5.65pt decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">  </span> $ 13,908</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in 7.0pt decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">  </span> $ 11,227</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="372" valign="bottom" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"margin-top:0in;margin-right:5.05pt;margin-bottom: 0in;margin-left:5.05pt;margin-bottom:.0001pt;text-indent:-5.05pt;line-height: 92%;tab-stops:dotted 279.0pt;mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black">Marketable securities
invested in non-qualified compensation
plans<span style="mso-tab-count:1 dotted">......................................................................................................................</span></span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 19</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 19</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 19</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 19</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="372" valign="bottom" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"margin-top:0in;margin-right:5.05pt;margin-bottom: 0in;margin-left:5.05pt;margin-bottom:.0001pt;text-indent:-5.05pt;line-height: 92%;tab-stops:dotted 279.0pt;mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black">Commodity-based
derivatives<span style=
"mso-tab-count: 1 dotted">..................................................................</span></span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> (119)</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> (119)</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> (25)</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> (25)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="372" valign="bottom" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"margin-top:0in;margin-right:5.05pt;margin-bottom: 0in;margin-left:5.05pt;margin-bottom:.0001pt;text-indent:-5.05pt;line-height: 92%;tab-stops:dotted 279.0pt;mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black">Interest rate and foreign
currency derivatives<span style=
"mso-tab-count:1 dotted">........................................</span></span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> (8)</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> (8)</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 85</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 85</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes">
<td width="372" valign="bottom" style=
"width:279.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"margin-top:0in;margin-right:5.05pt;margin-bottom: 0in;margin-left:5.05pt;margin-bottom:.0001pt;text-indent:-5.05pt;line-height: 92%;tab-stops:dotted 279.0pt;mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black">Other<span style=
"mso-tab-count:1 dotted">..............................................................................................................</span></span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 17</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 17</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 72</span></span>
</p>
</td>
<td width="63" valign="bottom" style=
"width:47.25pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style=
"line-height:92%;tab-stops:0in decimal 39.0pt; mso-layout-grid-align:none;text-autospace:none">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 72</span></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" style=
"line-height:92%;mso-layout-grid-align:none; text-autospace:none">
<span><span style=
"font-size:6.0pt;line-height:92%;color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"text-indent:.2in;line-height:92%;mso-layout-grid-align: none;text-autospace:none">
<span><span style="color:black">As of June 30, 2009 and
December 31, 2008, the carrying amounts of cash and cash
equivalents, short-term borrowings, and trade receivables and
payables represented fair value because of the short-term
nature of these instruments. The carrying amounts of our
restricted cash and noncurrent receivables approximate their
fair value based on their interest rates and our assessment of
our ability to recover these amounts. We estimated the fair
value of debt based on quoted market prices for the same or
similar issues, including consideration of our credit risk
related to those instruments.</span></span>
</p>
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<p class="MsoNormal">
<a name=
"_AUC678c6ab3f6a64aa5b0db6f8a28941704"><b><span style="color:black">
4. Income Taxes</span></b></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">Income taxes included in our
net income (loss) for the periods ended June 30 were as
follows:</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style="color:black"> </span></span>
</p>
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<td width="291" valign="top" style=
"width:218.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 345.75pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
</td>
<td width="168" colspan="3" valign="top" style=
"width:125.7pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 56.15pt left 114.65pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
   </span> Quarters Ended June 30,<span style=
"mso-tab-count:1">                        </span></span></u></b></span>
</p>
</td>
<td width="168" colspan="2" valign="top" style=
"width:126.15pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 60.8pt left 114.8pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black">Six Months
Ended June 30, <span style=
"mso-tab-count:1">                          </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="291" valign="top" style=
"width:218.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 345.75pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="84" colspan="2" valign="top" style=
"width:62.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 27.05pt left 54.1pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
       </span> 2009<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
<td width="84" valign="top" style=
"width:62.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 27.05pt left 51.8pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
       </span> 2008<span style=
"mso-tab-count:1">    </span></span></u></b></span>
</p>
</td>
<td width="84" valign="top" style=
"width:62.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 27.05pt left 54.1pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
       </span> 2009<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
<td width="84" valign="top" style=
"width:63.3pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 27.05pt left 52.1pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
       </span> 2008<span style=
"mso-tab-count:1">    </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="291" valign="top" style=
"width:218.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 345.75pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="336" colspan="5" valign="top" style=
"width:251.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions, except rates)</span></b></span>
</p>
</td>
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<td width="291" valign="top" style=
"width:218.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 328.5pt">
<span><span style="color:black">Income tax (benefit)
expense<span style=
"mso-tab-count: 1 dotted">............................................................</span></span></span>
</p>
</td>
<td width="78" valign="top" style=
"width:58.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.95pt decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> $<span style=
"mso-tab-count:1">     </span> 66</span></span>
</p>
</td>
<td width="90" colspan="2" valign="top" style=
"width:67.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 7.75pt decimal 32.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">  </span> $<span style=
"mso-tab-count:1">   </span> 87</span></span>
</p>
</td>
<td width="84" valign="top" style=
"width:62.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.95pt decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:1"> </span> $<span style=
"mso-tab-count:1">  </span> (460)</span></span>
</p>
</td>
<td width="84" valign="top" style=
"width:63.3pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 7.75pt decimal 32.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">  </span> $<span style=
"mso-tab-count:1"> </span> 235</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes">
<td width="291" valign="top" style=
"width:218.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 328.5pt">
<span><span style="color:black">Effective tax
rate<span style=
"mso-tab-count:1 dotted">.................................................................................</span></span></span>
</p>
</td>
<td width="78" valign="top" style=
"width:58.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.95pt decimal 33.65pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">         </span> 40%</span></span>
</p>
</td>
<td width="90" colspan="2" valign="top" style=
"width:67.2pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 31%</span></span>
</p>
</td>
<td width="84" valign="top" style=
"width:62.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.95pt decimal 33.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:2">         </span> 35%</span></span>
</p>
</td>
<td width="84" valign="top" style=
"width:63.3pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 36%</span></span>
</p>
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<td width="66" style="border:none"></td>
<td width="3" style="border:none"></td>
<td width="70" style="border:none"></td>
<td width="68" style="border:none"></td>
<td width="71" style="border:none"></td>
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<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Effective Tax
Rate.</span></i> <span style="color:black">We compute interim
period income taxes by applying an anticipated annual
effective tax rate to our year-to-date income or loss, except
for significant unusual or infrequently occurring items.
Significant tax items are recorded in the period that the
item occurs. Our effective tax rate may be affected by items
such as dividend exclusions on earnings from unconsolidated
affiliates where we anticipate receiving dividends, the
effect of state income taxes (net of federal income tax
effects), and the effect of foreign income which can be taxed
at different rates.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><a name="OLE_LINK11"><span style="color:black">During
the second quarter of 2009, our effective tax rate was
primarily impacted by the sale and writedown of certain
foreign investments for which there was no</span></a>
<span style="mso-bookmark:OLE_LINK11"><span style=
"color:black">U.S.</span></span> <span style=
"mso-bookmark:OLE_LINK11"><span style="color:black">tax
impact. For the six months ended June 30, 2009, our effective
tax rate was relatively consistent with the statutory rate
and the customary relationship between our pretax accounting
income and income tax expense. During the second quarter of
2008, our effective tax rate was primarily impacted by the
tax impact of the settlement of legacy litigation matters.
For the six months ended June 30, 2008, this impact was
largely offset by the tax impact of adjusting our
postretirement benefit obligations, as discussed in Note
10.</span></span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Deferred Tax
Asset.</span></i> <span style="color:black">As of June 30,
2009, we have a net federal deferred tax asset of $138
million primarily as a result of recognizing a deferred tax
benefit attributable to the domestic ceiling test charge
during the first quarter of 2009. We believe it is more
likely than not that we will realize the benefit of this net
deferred tax asset (net of existing valuation allowances)
based on recognition of sufficient taxable income during
periods in which those temporary differences or net operating
losses are deductible.</span></span>
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<a name=
"_AUC8d2819f2ee2c43b8bdb5a300d25194f5"><b><span style="color:black">
1. Basis of Presentation and Significant Accounting
Policies</span></b></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="margin-left:5.75pt">
<span><i><span style="color:black">Basis of
Presentation</span></i></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">We prepared this Quarterly
Report on Form 10-Q under the rules and regulations of the
United States Securities and Exchange Commission (SEC).
Because this is an interim period filing presented using a
condensed format, it does not include all of the disclosures
required by U.S. generally accepted accounting principles.
You should read this Quarterly Report on Form 10-Q along with
our 2008 Annual Report on Form 10-K, which contains a summary
of our significant accounting policies and other disclosures.
The financial statements as of June 30, 2009, and for the
quarters and six months ended June 30, 2009 and 2008, are
unaudited. We derived the condensed consolidated balance
sheet as of December 31, 2008, from the audited balance sheet
filed in our 2008 Annual Report on Form 10-K. As discussed
below, certain amounts related to noncontrolling interests
have been retrospectively adjusted within these consolidated
financial statements to reflect the adoption of Statement of
Financial Accounting Standards (SFAS) No. 160,
<i>Noncontrolling Interests in Consolidated</i> <i>Financial
Statements</i>. Our financial statements for prior periods
also include certain reclassifications that were made to
conform to the current period presentation. There were no
reclassifications that impacted our reported net income
(loss) or stockholders’ equity other than those required by
SFAS No. 160. In our opinion, we have made adjustments, all
of which are of a normal, recurring nature to fairly present
our interim period results. We have evaluated subsequent
events through the time of filing on August 7, 2009, the date
of issuance of our financial statements. Due to the seasonal
nature of our businesses, information for interim periods may
not be indicative of our operating results for the entire
year.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="margin-left:5.75pt">
<span><i><span style="color:black">Significant Accounting
Policies</span></i></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">The information below
provides an update of our significant accounting policies and
accounting pronouncements issued but not yet adopted as
discussed in our 2008 Annual Report on Form
10-K.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Fair Value
Measurements.</span></i> <span style="color: black">On
January 1, 2009, we adopted the provisions of SFAS No. 157,
<i>Fair Value Measurements,</i> for our non-financial assets
and liabilities that are measured at fair value on a
non-recurring basis, as further described in Note 6. The
adoption did not have a material impact on our financial
statements.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">On January 1, 2009, we
adopted the provisions of the Emerging Issues Task Force
(EITF) Issue No. 08-5, <i>Issuer’s Accounting for Liabilities
Measured at</i> <i>Fair Value with a Third-Party Credit
Enhancement.</i> EITF Issue No. 08-5 provides guidance to
companies about how they should consider their own credit in
determining the fair value of their liabilities that have
third party credit enhancements related to them.
Substantially all of our derivative liabilities in our
Marketing segment are supported by letters of credit. This
standard requires that non-cash credit enhancements, such as
letters of credit, should not be considered in determining
the fair value of these liabilities, including derivative
liabilities. Accordingly, we recorded a $34 million gain (net
of $18 million of taxes), or $0.05 per share, in the first
quarter of 2009 as a result of adopting EITF Issue No.
08-5.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Business
Combinations.</span></i> <span style="color:black">On January
1, 2009, we adopted SFAS No. 141(R), <i>Business
Combinations</i>, which provides revised guidance on the
accounting for acquisitions of businesses. This standard
changes the current guidance to require that all acquired
assets, liabilities, noncontrolling interests and certain
contingencies be measured at fair value, and certain other
acquisition-related costs be expensed rather than
capitalized. SFAS No. 141(R) applies to acquisitions that are
effective after December 31, 2008.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Noncontrolling
Interests.</span></i> <span style="color:black">Effective
January 1, 2009, we adopted the provisions of SFAS No. 160,
which provides guidance on accounting and reporting for
noncontrolling interests in the financial statements. This
standard requires us to present our noncontrolling interests,
which primarily relate to El Paso Pipeline Partners, L.P.,
our consolidated subsidiary, as a separate component of
equity rather than as a “mezzanine” item between liabilities
and equity in our balance sheets, and also requires us to
present our noncontrolling interests as a separate caption in
our income statements. Our financial statements for all
periods presented have been adjusted to retrospectively apply
the provisions of this statement. This standard also requires
that all transactions with noncontrolling interest holders
after adoption, including the issuance and repurchase of
noncontrolling interests, be accounted for as equity
transactions unless a change in control of the subsidiary
occurs.</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="margin-left:5.75pt">
<span><i><span style="color:black">New Accounting
Pronouncements Issued But Not Yet Adopted</span></i></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:5.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">As of June 30, 2009, the
following accounting standards have not yet been adopted by
us:</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:5.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Oil and Gas Reserves
Reporting.</span></i> <span style="color:black">In December
2008, the SEC issued a final rule adopting revisions to its
oil and gas reporting requirements. The revisions will impact
the determination and disclosures of oil and gas reserves
information. Among other items, the new rules will revise the
definition of proved reserves and will require full cost
companies to use a twelve month average commodity price in
determining future net revenues, rather than a period-end
price as is currently required. These changes, along with
other proposed changes, will impact the manner in which we
perform our full cost ceiling test calculation and determine
any related ceiling test charge. The provisions of this final
rule are effective on December 31, 2009, and cannot be
applied earlier than that date. We are currently assessing
the impact that this final rule may have on our determination
and disclosures of oil and gas reserves
information.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style=
"font-size:5.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i style="mso-bidi-font-style:normal"><span style=
"color:black">Transfers of Financial Assets.</span></i>
<span style="color:black">In June 2009, the Financial
Accounting Standards Board (FASB) issued SFAS No. 166,
<i style="mso-bidi-font-style:normal">Accounting for
Transfers of Financial Assets</i>, which amends SFAS No. 140,
<i style="mso-bidi-font-style:normal">Accounting for
Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities – a replacement of FASB
Statement No. 125</i>. Among other items, this standard
eliminates the concept of a qualifying special-purpose entity
(QSPE) for purposes of evaluating whether an entity should be
consolidated as a variable interest entity. SFAS No. 166 is
effective for existing QSPEs as of January 1, 2010 and for
transactions entered into on or after January 1, 2010. We are
currently assessing the impact that this standard may have on
our financial statements, including any impacts it may have
on accounting for our accounts receivable sales program and
the related senior beneficial interests (see Note
13).</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style=
"font-size:5.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i style="mso-bidi-font-style:normal"><span style=
"color:black">Variable Interest Entities.</span></i>
<span style="color:black">In June 2009, the FASB issued SFAS
No. 167, <i style="mso-bidi-font-style:normal">Amendments to
FASB Interpretation No. 46(R)</i>, which revises how
companies determine who the primary beneficiaries of their
variable interest entities are. This standard requires
companies to use a qualitative approach based on their
responsibilities and controlling power over the variable
interest entities’ operations rather than a quantitative
approach as previously required. SFAS No. 167 will be
effective beginning January 1, 2010, and will require us to
reevaluate the primary beneficiaries of our variable interest
entities. We are currently assessing the impact that this
standard may have on our financial statements.</span></span>
</p>
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<p class="MsoNormal">
<a name="_AUCdd431cc63b2b4dc5a7c14a3262ef0489"></a><a name=
"OLE_LINK3" id="OLE_LINK3"><span><b><span style=
"color:black">10. Retirement Benefits</span></b></span></a>
</p>
<p class="MsoNormal">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"font-size:5.0pt;color:black"> </span></span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span style="mso-bookmark:OLE_LINK3"><span><i><span style=
"color:black">Net Benefit Cost (Income).</span></i>
<span style="color:black">The components of net benefit cost
(income) for our pension and postretirement benefit plans for
the periods ended June 30 are as
follows:</span></span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span style="mso-bookmark: OLE_LINK3"><span><span style=
"font-size:5.0pt;color:black"> </span></span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="627" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt">
<tr style=
"mso-yfti-irow:0;mso-yfti-firstrow:yes;height:12.6pt">
<td width="195" valign="top" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt; height:12.6pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span></span>
</p>
</td>
<td width="216" colspan="4" valign="top" style=
"width:2.25in;padding:0in 2.35pt 0in 2.35pt; height:12.6pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 78.65pt left 150.65pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
              </span> Quarters Ended June
30,<span style=
"mso-tab-count: 1">           </span></span></u></b></span></span>
</p>
</td>
<td width="216" colspan="4" valign="top" style=
"width:2.25in;padding:0in 2.35pt 0in 2.35pt; height:12.6pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 78.65pt left 150.65pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
            </span> Six Months Ended June
30,<span style=
"mso-tab-count: 1">         </span></span></u></b></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1;height:26.1pt">
<td width="195" valign="top" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt; height:26.1pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span></span>
</p>
</td>
<td width="108" colspan="2" valign="top" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt; height:26.1pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 33.4pt left 66.85pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
 </span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 82.25pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
<span style="mso-tab-count: 1">          </span>
Pension</span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 82.25pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
          </span> Benefits<span style=
"mso-tab-count:1">         </span></span></u></b></span></span>
</p>
</td>
<td width="108" colspan="2" valign="top" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt; height:26.1pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 85.4pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
<span style="mso-tab-count: 1">           </span>
Other</span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 85.4pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
<span style="mso-tab-count: 1">    </span>
Postretirement</span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 85.4pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
          </span> Benefits<span style=
"mso-tab-count:1">         </span></span></u></b></span></span>
</p>
</td>
<td width="108" colspan="2" valign="top" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt; height:26.1pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 33.4pt left 66.85pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
 </span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 82.25pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
<span style="mso-tab-count: 1">          </span>
Pension</span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 85.4pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
          </span> Benefits<span style=
"mso-tab-count:1">         </span></span></u></b></span></span>
</p>
</td>
<td width="108" colspan="2" valign="top" style=
"width:81.0pt;padding:0in 2.35pt 0in 2.35pt; height:26.1pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 85.4pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
<span style="mso-tab-count: 1">           </span>
Other</span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 85.4pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style="font-size:8.0pt;line-height:93%;color:black">
<span style="mso-tab-count: 1">    </span>
Postretirement</span></b></span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 38.15pt left 73.9pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
          </span> Benefits<span style=
"mso-tab-count:1">         </span></span></u></b></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="195" valign="top" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.05pt left 32.15pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2009<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.0pt left 30.0pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2008<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 16.05pt left 32.15pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2009<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.0pt left 30.0pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2008<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.35pt left 30.75pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2009<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.35pt left 30.75pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2008<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.35pt left 30.75pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2009<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
<td width="54" valign="top" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 15.35pt left 30.75pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> 2008<span style=
"mso-tab-count:1">  </span></span></u></b></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="195" valign="top" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left">
<span style=
"mso-bookmark: OLE_LINK3"><span><span style="font-size:8.0pt;color:black">
 </span></span></span>
</p>
</td>
<td width="432" colspan="8" valign="top" style=
"width:4.5in;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span style=
"mso-bookmark:OLE_LINK3"><span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions)</span></b></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="195" valign="bottom" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 139.5pt left 175.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">Service cost<span style=
"mso-tab-count:1 dotted">......................................</span></span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.8pt decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style=
"mso-tab-count:1">        </span> 4</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 1.95pt decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style="mso-tab-count:1">     </span>
3</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.8pt decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style=
"mso-tab-count:1">      </span> —</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 1.95pt decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style="mso-tab-count:1">   </span>
—</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> 8</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> 7</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> —</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> —</span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="195" valign="bottom" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 139.5pt left 175.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">Interest cost<span style=
"mso-tab-count:1 dotted">.....................................</span></span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 30</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style="mso-tab-count:1">     </span>
30</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 10</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style="mso-tab-count:1">     </span>
10</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 60</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 60</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 19</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 17</span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="195" valign="bottom" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 139.5pt left 175.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">Expected return on plan
assets<span style="mso-tab-count: 1 dotted">....</span></span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style="mso-tab-count:1">      </span>
(43)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style="mso-tab-count:1">   </span>
(46)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">         </span>
(3)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style="mso-tab-count:1">      </span>
(4)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">       </span>
(86)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">       </span>
(93)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">         </span>
(6)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">         </span>
(8)</span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="195" valign="bottom" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 139.5pt left 175.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">Amortization of net actuarial loss
(gain)<span style=
"mso-tab-count:1 dotted">...............................................</span></span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 11</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">       </span> 6</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> —</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style="mso-tab-count:1">      </span>
(1)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 22</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> 12</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">        </span> —</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black"><span style=
"mso-tab-count:1">         </span>
(2)</span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="195" valign="bottom" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 139.5pt left 175.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">Amortization of prior service
credit<span style=
"mso-tab-count:1 dotted">...............................................</span></span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.8pt decimal 30.05pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">        </span>
—</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 1.95pt decimal 23.15pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">     </span>
—</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.8pt decimal 30.05pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">        </span>
—</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 1.95pt decimal 23.15pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">      </span>
(1</span></u><span style=
"color:black">)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">        </span>
—</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">         </span>
(1)</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">        </span>
—</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style=
"mso-bookmark:OLE_LINK3"><span><u><span style="color:black">
<span style="mso-tab-count:2">         </span>
(1)</span></u></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes">
<td width="195" valign="bottom" style=
"width:146.35pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:decimal dotted 139.5pt left 175.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">Net benefit cost (income)<span style=
"mso-tab-count:1 dotted">..............</span></span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.8pt decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">        </span>
2</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 1.95pt decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">   </span>
(7</span></u><span style=
"color:black">)</span></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.8pt decimal 30.05pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">        </span>
7</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 1.95pt decimal 23.15pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">     </span>
4</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> 4</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> (15)</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> 13</span></u></span></span>
</p>
</td>
<td width="54" valign="bottom" style=
"width:40.5pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.7pt decimal 30.5pt">
<span style="mso-bookmark:OLE_LINK3"><span><u style=
"text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">          </span> <span style=
"mso-tab-count:1">  </span> 6</span></u></span></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"font-size:5.0pt;color:black"> </span></span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span style="mso-bookmark:OLE_LINK3"><span><i><span style=
"color:black">Other Matter.</span></i> <span style=
"color:black">In various court rulings prior to March 2008,
we were required to indemnify Case for certain benefits paid
to a closed group of Case retirees as further discussed in
Note 9. In conjunction with those rulings, we recorded a
liability for estimated amounts due under the indemnification
using actuarial methods similar to those used in estimating
our postretirement benefit plan
obligations.</span></span></span>
</p>
<p class="MsoNormal">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"font-size:5.0pt;color:black"> </span></span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span style="mso-bookmark:OLE_LINK3"><span><span style=
"color:black">In March 2008, we received a summary judgment
from the trial court on this matter, and thus became the
primary party that is obligated to pay these benefit
payments. As a result of the judgment, we adjusted our
obligation using current actuarial assumptions and recorded a
$65 million reduction to operation and maintenance expense.
We also reclassified this obligation from an indemnification
liability to a postretirement benefit
obligation.</span></span></span>
</p>
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<p class="MsoNormal" style=
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<a name=
"_AUC3db024d183e74c4a835df1e32497ea67"><b><span style="color:black">
14. Subsequent Events</span></b></a>
</p>
<p class="MsoNormal" style=
"mso-layout-grid-align:none;text-autospace:none">
<span> </span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i style="mso-bidi-font-style:normal">Ruby
Pipeline</i>.<span style="mso-spacerun:yes"> </span> In July
2009, we entered into a binding agreement with several
infrastructure funds managed by Global Infrastructure
Partners, whereby they committed to invest up to $700 million
in a holding company for our Ruby pipeline project (“Ruby”)
subject to the satisfaction of certain
conditions.<span style="mso-spacerun:yes"> </span> This
commitment is comprised of three components: (i) a $405
million loan commitment that is convertible into preferred
equity of Ruby; (ii) a $145 million commitment to invest in a
convertible preferred equity interest in Ruby that is
exchangeable for a convertible preferred equity interest in a
holding company of one of our consolidated subsidiaries,
Cheyenne Plains Gas Pipeline Company that converts back into
convertible preferred equity of Ruby upon satisfaction of
certain conditions, including placing the Ruby pipeline into
service; and (iii) a commitment to invest in an additional
convertible preferred equity interest in Ruby of up to $150
million.</span>
</p>
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<p class="MsoNormal">
<a name=
"_AUC8dee9d35bb0c4e2fbe106a1836386bb9"><b><span style="color:black">
12. Business Segment Information</span></b></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">As of June 30, 2009, our
business consists of two core segments, Pipelines and
Exploration and Production. We also have Marketing and Power
segments. Our segments are strategic business units that
provide a variety of energy products and services. They are
managed separately as each segment requires different
technology and marketing strategies. Our corporate activities
include our general and administrative functions, as well as
other miscellaneous businesses and various other contracts
and assets, all of which are immaterial. A further discussion
of each segment follows.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:13.5pt">
<span><i><span style="color:black">Pipelines.</span></i>
<span style="color:black">Provides natural gas transmission,
storage, and related services, primarily in the United
States. As of June 30, 2009, we conducted our activities
primarily through seven wholly or majority owned interstate
pipeline systems and equity interests in four transmission
systems. In addition to the storage capacity in our wholly
and majority owned pipelines systems, we also own or have
interests in two underground natural gas storage facilities
and two LNG terminalling facilities, one of which is under
construction.</span></span>
</p>
<p class="MsoNormal" style="text-indent:13.5pt">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:13.5pt">
<span><i><span style="color:black">Exploration and
Production.</span></i> <span style="color:black">Engaged in
the exploration for and the acquisition, development and
production of natural gas, oil and NGL, in the United States,
Brazil and Egypt.</span></span>
</p>
<p class="MsoNormal" style="text-indent:13.5pt">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:13.5pt">
<span><i><span style="color:black">Marketing.</span></i>
<span style="color:black">Markets and manages the price risks
associated with our natural gas and oil production as well as
manages our remaining legacy trading portfolio.</span></span>
</p>
<p class="MsoNormal" style="text-indent:13.5pt">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:13.5pt">
<span><i><span style="color:black">Power.</span></i>
<span style="color:black">Manages the risks associated with
our remaining international power and pipeline assets and
investments located primarily in South America and Asia. We
continue to pursue the sale of these assets.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p><span style=
"font-size:10.0pt;font-family:Times New Roman,serif;mso-fareast-font-family: Times New Roman;color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"><br clear="all"
style="page-break-before:always" /></span>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">Our management uses earnings
before interest expense and income taxes (EBIT) as a measure
to assess the operating results and effectiveness of our
business segments which consist of both consolidated
businesses and investments in unconsolidated affiliates. We
believe EBIT is useful to our investors because it allows
them to evaluate more effectively the operating performance
using the same performance measure analyzed internally by our
management. We define EBIT as net income (loss) adjusted for
items such as (i) interest and debt expense <span style=
"mso-spacerun:yes">            </span>(ii) income taxes and
(iii) net income attributable to noncontrolling interests so
that our investors may evaluate our operating results without
regard to our financing methods or capital structure. EBIT
may not be comparable to measures used by other companies.
Additionally, EBIT should be considered in conjunction with
net income (loss), income (loss) before income taxes and
other performance measures such as operating income or
operating cash flows. Below is a reconciliation of our EBIT
to our net income (loss) for the periods ended June
30:</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="624" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 348.3pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
</td>
<td width="135" colspan="2" valign="top" style=
"width:101.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 49.5pt left 1.25in">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
        </span> Quarters Ended</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 49.5pt left 98.5pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
              </span> June 30,<span style=
"mso-tab-count:1">              </span></span></u></b></span>
</p>
</td>
<td width="135" colspan="2" valign="top" style=
"width:101.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 51.5pt left 96.5pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
        </span> Six Months Ended</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 51.5pt left 96.5pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
               </span> June 30,<span style=
"mso-tab-count:1">            </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 348.3pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 23.4pt left 45.9pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> 2009<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 22.95pt left 45.45pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> 2008<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 23.4pt left 45.9pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> 2009<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 22.95pt left 45.45pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> 2008<span style=
"mso-tab-count:1">     </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 348.3pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="269" colspan="4" valign="top" style=
"width:202.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 261.0pt">
<span><span style="color:black">Segment
EBIT<span style="mso-tab-count:1 dotted">........................................................................................</span></span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">        </span> 377</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">        </span> 458</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">      </span> (856)</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-right:-31.05pt;text-align:left; line-height:93%;tab-stops:0in decimal 40.95pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> 1,019</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 261.0pt">
<span><span style="color:black">Corporate and
other<span style=
"mso-tab-count:1 dotted">..............................................................................</span></span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 31</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 41</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 24</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 80</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 261.0pt">
<span><span style="color:black">Interest and debt
expense<span style=
"mso-tab-count:1 dotted">.....................................................................</span></span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (253)</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (221)</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (508)</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (454)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 261.0pt">
<span><span style="color:black">Income tax benefit
(expense) <span style=
"mso-tab-count: 1 dotted">.............................................................</span></span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">           </span>
(66)</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.95pt decimal 40.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">           </span>
(87</span></u><span style="color:black">)</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">          </span> 460</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:4.95pt decimal 40.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">         </span>
(235</span></u><span style="color:black">)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 261.0pt">
<span><span style="color:black">Net income (loss)
attributable to El Paso Corporation<span style=
"mso-tab-count:1 dotted">....................</span></span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 89</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 191</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (880)</span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 410</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 261.0pt">
<span><span style="color:black">Net income attributable
to noncontrolling interests<span style=
"mso-tab-count:1 dotted">.........................</span></span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">            </span>
11</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">               </span>
7</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">            </span>
23</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:1">             </span>
16</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes">
<td width="355" valign="top" style=
"width:266.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 261.0pt">
<span><span style="color:black">Net income
(loss)<span style=
"mso-tab-count:1 dotted">....................................................................................</span></span></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">        </span> 100</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">        </span> 198</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.5pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">      </span> (857)</span></u></span>
</p>
</td>
<td width="67" valign="top" style=
"width:50.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 40.95pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:1">        </span> 426</span></u></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:.2in">
<span><span style="color:black">The following table reflects
our segment results for the periods ended June
30:</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="625" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="237" colspan="4" valign="top" style=
"width:177.65pt;padding:0in 0in 0in 0in">
<p class="MsoHeading9" style=
"tab-stops:center 92.65pt left 184.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                 </span>
Segments<span style=
"mso-tab-count:1">                              </span></span></span>
</p>
</td>
<td width="118" colspan="2" valign="top" style=
"width:88.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.45pt left 40.95pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 18.55pt left 37.1pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 18.55pt left 37.1pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 22.5pt left 40.5pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> Pipelines </span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.4pt left 42.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">Exploration</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.4pt left 42.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> and</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.4pt left 42.9pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black">Production
</span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.95pt left 43.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.95pt left 43.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 23.7pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> Marketing</span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 13.3pt left 26.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 13.3pt left 26.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 24.25pt left 42.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> Power<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 27.3pt left 54.65pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.55pt left 44.05pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">Corporate</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.55pt left 44.05pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black">and
Other<sup>(1)</sup><span style=
"mso-tab-count:1">         </span></span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.45pt left 40.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.45pt left 40.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:2.95pt center 20.45pt left 40.95pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><u><span style="mso-tab-count:1">
  </span> Total<span style=
"mso-tab-count:1">    </span></u></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 163.6pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="355" colspan="6" valign="top" style=
"width:266.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style="color:black">Quarter Ended June 30,
2009</span></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                     </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 22.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 45.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 37.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Revenue from external
customers<span style=
"mso-tab-count: 1 dotted">.......................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.5pt decimal 31.6pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">           </span> <span style=
"mso-tab-count:1"> </span> 639</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.3pt decimal 32.1pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span>
185<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 7.15pt decimal 36.8pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">      </span> 148</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .05in decimal 28.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.05pt decimal 29.35pt left 33.85pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">       </span> 1</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">        </span> 973</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Intersegment
revenue<span style=
"mso-tab-count:1 dotted">.............................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 11</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span>
124<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (133)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> (2)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> —</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Operation and
maintenance<span style=
"mso-tab-count:1 dotted">..................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 195</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 90</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 4</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 4</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (29)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 264</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><a name="_Hlk235944357"><span style="color:black">
Ceiling test charges<span style=
"mso-tab-count:1 dotted">..................................................</span></span></a></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span><span style="color:black"><span style=
"mso-tab-count:1">         </span> —</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span><span style="color:black"><span style=
"mso-tab-count:1">         </span>
12</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span><span style="color:black"><span style=
"mso-tab-count:1">           </span>
—</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span><span style="color:black"><span style=
"mso-tab-count:1">             </span>
12</span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Depreciation, depletion
and amortization<span style=
"mso-tab-count:1 dotted">..........</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 102</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 91</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 4</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 197</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Earnings (losses) from
unconsolidated affiliates<span style=
"mso-tab-count:1 dotted">..................................................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 25</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<pre style=
"line-height:93%;tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style=
"font-family:Times New Roman,serif;color:black"><span style=
"mso-tab-count:1"> </span>(13)</span></span>
</pre>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> (1)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 1</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 12</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">EBIT<span style=
"mso-tab-count:1 dotted">..........................................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 327</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 61</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 10</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (21)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 31</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 408</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"> </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><b><span style="color:black">Quarter Ended June 30,
2008</span></b></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:13">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Revenue from external
customers<span style=
"mso-tab-count: 1 dotted">.......................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.5pt decimal 31.6pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">           </span> <span style=
"mso-tab-count:1"> </span> 632</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.3pt decimal 32.1pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span>
198<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 7.15pt decimal 36.8pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">      </span> 322</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .05in decimal 28.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.05pt decimal 29.35pt left 33.85pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">       </span> 1</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> 1,153</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:14">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Intersegment
revenue<span style=
"mso-tab-count:1 dotted">.............................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 14</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span>
457<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (468)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> (3)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> —</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:15">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Operation and
maintenance<span style=
"mso-tab-count:1 dotted">..................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 205</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 98</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 8</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 4</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (40)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 275</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:16">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Ceiling test
charges<span style=
"mso-tab-count:1 dotted">..................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 7</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span> 7</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:17">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Depreciation, depletion
and amortization<span style=
"mso-tab-count:1 dotted">..........</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 99</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 197</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 2</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 298</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:18">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Earnings from
unconsolidated affiliates<span style=
"mso-tab-count:1 dotted">.............</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 25</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 16</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 11</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 52</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:19;mso-yfti-lastrow:yes">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">EBIT<span style=
"mso-tab-count:1 dotted">..........................................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 295</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 304</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (153)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 12</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 41</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 499</span></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal">
<span><span style="color:black">____________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt">
<span><span style=
"font-size:3.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style=
"margin-left:.3in;text-indent:-.3in">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Includes eliminations of
intercompany transactions. Our intersegment revenues, along
with our intersegment operating expenses, were incurred in
the normal course of business between our operating segments.
During the quarters ended June 30, 2009 and 2008, we recorded
an intersegment revenue elimination of $2 million
and<span style="mso-spacerun:yes">            </span> $5
million in the “Corporate and Other” column to remove
intersegment transactions.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><sup><span style=
"font-size:3.0pt; color:black"> </span></sup></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(2)<span style=
"mso-tab-count:1">         </span> Revenues from external
customers include gains and losses related to our hedging of
price risk associated with our natural gas and oil
production. Intersegment revenues represent sales to our
Marketing segment, which is responsible for marketing our
production to third parties.</span></sup></span>
</p><span style=
"font-size:6.0pt;font-family:Times New Roman,serif;mso-fareast-font-family: Times New Roman;color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"><br clear="all"
style=
"mso-special-character:line-break; page-break-before:always" /></span>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style="color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" width="625" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="237" colspan="4" valign="top" style=
"width:177.65pt;padding:0in 0in 0in 0in">
<p class="MsoHeading9" style=
"tab-stops:center 92.65pt left 184.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                                 </span>
Segments<span style=
"mso-tab-count:1">                              </span></span></span>
</p>
</td>
<td width="118" colspan="2" valign="top" style=
"width:88.85pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.45pt left 40.95pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 18.55pt left 37.1pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 18.55pt left 37.1pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 22.5pt left 40.5pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> Pipelines </span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.4pt left 42.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">Exploration</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.4pt left 42.9pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> and</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.4pt left 42.9pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black">Production
</span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.95pt left 43.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.95pt left 43.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 23.7pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
 </span> Marketing</span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 13.3pt left 26.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 13.3pt left 26.6pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 24.25pt left 42.25pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
     </span> Power<span style=
"mso-tab-count:1">  </span></span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 27.3pt left 54.65pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.55pt left 44.05pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">Corporate</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.55pt left 44.05pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black">and
Other<sup>(1)</sup><span style=
"mso-tab-count:1">         </span></span></u></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.45pt left 40.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 20.45pt left 40.95pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="text-decoration:none">
 </span></span></u></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:2.95pt center 20.45pt left 40.95pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><u><span style="mso-tab-count:1">
  </span> Total<span style=
"mso-tab-count:1">    </span></u></span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 163.6pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="355" colspan="6" valign="top" style=
"width:266.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="270" valign="top" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 163.6pt">
<span><b><span style="color:black">Six Months Ended June
30, 2009</span></b></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                     </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 22.95pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 45.9pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                   </span></span></span>
</p>
</td>
<td width="59" valign="top" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 37.4pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Revenue from external
customers<span style=
"mso-tab-count: 1 dotted">.......................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.5pt decimal 31.6pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">           </span> <span style=
"mso-tab-count:1"> </span> 1,360</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.3pt decimal 32.1pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span>
759<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">      </span> 336</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .05in decimal 28.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.05pt decimal 29.35pt left 33.85pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">       </span> 2</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> 2,457</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Intersegment
revenue<span style=
"mso-tab-count:1 dotted">.............................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 23</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span>
250<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (268)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> (5)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> —</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Operation and
maintenance<span style=
"mso-tab-count:1 dotted">..................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 378</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 199</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 5</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 6</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (24)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 564</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Ceiling test
charges<span style=
"mso-tab-count:1 dotted">..................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">   </span> 2,080</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 2,080</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Depreciation, depletion
and amortization<span style=
"mso-tab-count:1 dotted">..........</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 206</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 241</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 6</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 453</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:9">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Earnings (losses) from
unconsolidated affiliates<span style=
"mso-tab-count:1 dotted">..................................................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 46</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<pre style=
"line-height:93%;tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style=
"font-family:Times New Roman,serif;color:black"><span style=
"mso-tab-count:1"> </span>(22)</span></span>
</pre>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 5</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 2</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 31</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:10">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">EBIT<span style=
"mso-tab-count:1 dotted">..........................................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 723</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">  </span> (1,624)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 62</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (17)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 24</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> (832)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:11">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"> </span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"> </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:12">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><b><span style="color:black">Six Months Ended June
30, 2008</span></b></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">                 </span></span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:13">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Revenue from external
customers<span style=
"mso-tab-count: 1 dotted">.......................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 5.5pt decimal 31.6pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">           </span> <span style=
"mso-tab-count:1"> </span> 1,339</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 3.3pt decimal 32.1pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span>
328<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 7.15pt decimal 36.8pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">      </span> 744</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in .05in decimal 28.75pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 15.05pt decimal 29.35pt left 33.85pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">     </span> 11</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">     </span> 2,422</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:14">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Intersegment
revenue<span style=
"mso-tab-count:1 dotted">.............................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 27</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span>
930<sup>(2)</sup></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (947)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (10)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> —</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:15">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Operation and
maintenance<span style=
"mso-tab-count:1 dotted">..................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 400</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 206</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 10</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 9</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> (79)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 546</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:16">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Ceiling test
charges<span style=
"mso-tab-count:1 dotted">..................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> 7</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span> 7</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:17">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Depreciation, depletion
and amortization<span style=
"mso-tab-count:1 dotted">..........</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 198</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 409</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 4</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 611</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:18">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">Earnings from
unconsolidated affiliates<span style=
"mso-tab-count:1 dotted">.............</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 46</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">         </span> 26</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">           </span> —</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 16</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 1</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">             </span> 89</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:19;mso-yfti-lastrow:yes">
<td width="270" valign="bottom" style=
"width:202.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 2.75in">
<span><span style="color:black">EBIT<span style=
"mso-tab-count:1 dotted">..........................................................................</span></span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 31.6pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 676</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 32.1pt 51.3pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 546</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 36.8pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> (213)</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 28.75pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 10</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.4pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 29.35pt left 33.85pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 80</span></span>
</p>
</td>
<td width="59" valign="bottom" style=
"width:44.45pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 41.15pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">       </span> 1,099</span></span>
</p>
</td>
</tr>
</table>
<p class="MsoNormal">
<span><span style="color:black">____________</span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:15.95pt;text-align:left; text-indent:-15.95pt">
<span><span style=
"font-size:3.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(1)<span style=
"mso-tab-count:1">         </span> Includes eliminations of
intercompany transactions. Our intersegment revenues, along
with our intersegment operating expenses, were incurred in
the normal course of business between our operating segments.
During the six months ended June 30, 2009 and 2008, we
recorded an intersegment revenue elimination of $5 million
and<span style="mso-spacerun:yes">        </span>
<span style="mso-spacerun:yes"> </span>$10 million in the
“Corporate and Other” column to remove intersegment
transactions.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><sup><span style=
"font-size:3.0pt; color:black"> </span></sup></span>
</p>
<p class="MsoNormal" align="left" style=
"margin-left:.3in;text-align:left; text-indent:-.3in">
<span><sup><span style="color:black">(2)<span style=
"mso-tab-count:1">         </span> Revenues from external
customers include gains and losses related to our hedging of
price risk associated with our natural gas and oil
production. Intersegment revenues represent sales to our
Marketing segment, which is responsible for marketing our
production to third parties.</span></sup></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:.2in">
<span><span style="color:black">Total assets by segment are
presented below:</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="453" valign="top" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 352.1pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"> </span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 352.1pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="93" valign="top" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 21.9pt left 43.8pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
  </span> June 30,</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:.35pt; line-height:93%;tab-stops:center 21.9pt left 39.95pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
     </span> 2009<span style=
"mso-tab-count:1">   </span></span></u></b></span>
</p>
</td>
<td width="84" valign="top" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 26.0pt left 50.75pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">December
31,</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 26.0pt left 51.65pt">
<span><b><u><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
       </span> 2008<span style=
"mso-tab-count:1">      </span></span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:1">
<td width="453" valign="top" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;tab-stops:dotted 352.1pt">
<span><span style=
"font-size:8.0pt;color:black"> </span></span>
</p>
</td>
<td width="177" colspan="2" valign="top" style=
"width:132.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="center" style=
"text-align:center;line-height:93%">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black">(In
millions)</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:2">
<td width="453" valign="bottom" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 4.5in">
<span><span style="color:black">Pipelines<span style=
"mso-tab-count:1 dotted">...............................................................................................................................</span></span></span>
</p>
</td>
<td width="93" valign="bottom" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.4pt decimal 44.0pt">
<span><span style="color:black">$<span style=
"mso-tab-count:1">    </span> 16,081</span></span>
</p>
</td>
<td width="84" valign="bottom" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.5pt decimal 52.55pt">
<span><span style="color:black">$<span style=
"mso-tab-count:2">       </span> 15,121</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:3">
<td width="453" valign="bottom" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 4.5in">
<span><span style="color:black">Exploration and
Production<span style=
"mso-tab-count: 1 dotted">.............................................................................................</span></span></span>
</p>
</td>
<td width="93" valign="bottom" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 44.0pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> 3,993</span></span>
</p>
</td>
<td width="84" valign="bottom" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 52.55pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 6,142</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:4">
<td width="453" valign="bottom" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 4.5in">
<span><span style="color:black">Marketing<span style=
"mso-tab-count:1 dotted">............................................................................................................................</span></span></span>
</p>
</td>
<td width="93" valign="bottom" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 44.0pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">            </span> 281</span></span>
</p>
</td>
<td width="84" valign="bottom" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 52.55pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">               </span>
465</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:5">
<td width="453" valign="bottom" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 4.5in">
<span><span style="color:black">Power<span style=
"mso-tab-count:1 dotted">....................................................................................................................................</span></span></span>
</p>
</td>
<td width="93" valign="bottom" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.4pt decimal 44.0pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">            </span>
220</span></u></span>
</p>
</td>
<td width="84" valign="bottom" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.5pt decimal 52.55pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">               </span>
417</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:6">
<td width="453" valign="bottom" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 4.5in">
<span><span style="color:black">Total segment
assets<span style=
"mso-tab-count:1 dotted">.....................................................................................................</span></span></span>
</p>
</td>
<td width="93" valign="bottom" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 44.0pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">      </span> 20,575</span></span>
</p>
</td>
<td width="84" valign="bottom" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in decimal 52.55pt">
<span><span style="color:black"><span style=
"mso-tab-count:1">          </span> 22,145</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:7">
<td width="453" valign="bottom" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 4.5in">
<span><span style="color:black">Corporate and
Other<span style=
"mso-tab-count:1 dotted">..........................................................................................................</span></span></span>
</p>
</td>
<td width="93" valign="bottom" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.4pt decimal 44.0pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">        </span> 1,068</span></u></span>
</p>
</td>
<td width="84" valign="bottom" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.5pt decimal 52.55pt">
<span><u><span style="color:black"><span style=
"mso-tab-count:2">            </span>
1,523</span></u></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes">
<td width="453" valign="bottom" style=
"width:339.85pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:15.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;tab-stops:dotted 4.5in">
<span><span style="color:black">Total consolidated
assets<span style=
"mso-tab-count:1 dotted">.............................................................................................</span></span></span>
</p>
</td>
<td width="93" valign="bottom" style=
"width:69.75pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 2.4pt decimal 44.0pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style="mso-tab-count:1">    </span>
21,643</span></u></span>
</p>
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<td width="84" valign="bottom" style=
"width:63.1pt;padding:0in 2.35pt 0in 2.35pt">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:0in 9.5pt decimal 52.55pt">
<span><u style="text-underline:double"><span style=
"color:black">$<span style=
"mso-tab-count:2">       </span> 23,668</span></u></span>
</p>
</td>
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<p class="MsoNormal">
<a name=
"_AUC71601ffe942a4e5488e0f89575a4155f"><b><span style="color:black">
11. Equity</span></b></a>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:5.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Common and Preferred Stock
Dividends.</span></i> <span style="color:black">The table
below shows the amount of dividends paid and declared
(dollars in millions, except per share amount):</span></span>
</p>
<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<table class="MsoNormalTable" border="0" cellspacing="0"
cellpadding="0" style=
"border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 0in 0in 0in">
<tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes">
<td width="354" valign="top" style=
"width:265.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 254.7pt">
<span><b><span style=
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 </span></span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:dotted 254.7pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-spacerun:yes">
 </span></span></b></span>
</p>
</td>
<td width="114" valign="top" style=
"width:85.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center .5in left 64.9pt">
<span><b><span style=
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   </span> Common Stock</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
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<span><b><u><span style=
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 </span> ($0.05/Share)<span style=
"mso-tab-count:1">    </span></span></u></b></span>
</p>
</td>
<td width="156" valign="top" style=
"width:117.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
"text-align:left;line-height:93%; tab-stops:center 59.7pt left 119.45pt">
<span><b><span style=
"font-size:8.0pt;line-height:93%;color:black"><span style="mso-tab-count: 1">
   </span> Convertible Preferred
Stock</span></b></span>
</p>
<p class="MsoNormal" align="left" style=
"text-align:left;text-indent:12.1pt; line-height:93%;tab-stops:center 59.7pt left 108.4pt">
<span><b><u><span style=
"font-size:8.0pt; line-height:93%;color:black"><span style="mso-tab-count:1">
         </span> (4.99%/Year)<span style=
"mso-tab-count:1">         </span></span></u></b></span>
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<td width="354" valign="bottom" style=
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<span><span style="color:black">Amount paid through June
30, 2009<span style=
"mso-tab-count: 1 dotted">.................................................</span></span></span>
</p>
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<td width="114" valign="bottom" style=
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<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> $<span style=
"mso-tab-count:1">   </span> 70</span></span>
</p>
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<td width="156" valign="bottom" style=
"width:117.0pt;padding:0in 0in 0in 0in">
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<span><span style="color:black"><span style=
"mso-tab-count:1">                       </span>
$<span style="mso-tab-count:1"> </span> 19</span></span>
</p>
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<td width="354" valign="bottom" style=
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<p class="MsoNormal" align="left" style=
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<span><span style="color:black">Amount paid in July
2009<span style=
"mso-tab-count:1 dotted">...................................................................</span></span></span>
</p>
</td>
<td width="114" valign="bottom" style=
"width:85.5pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
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<span><span style="color:black"><span style=
"mso-tab-count:1">        </span> $<span style=
"mso-tab-count:1">   </span> 34</span></span>
</p>
</td>
<td width="156" valign="bottom" style=
"width:117.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" align="left" style=
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<span><span style="color:black"><span style=
"mso-tab-count:1">                       </span>
$<span style="mso-tab-count:1">    </span>
9</span></span>
</p>
</td>
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<p class="MsoNormal" align="left" style="text-align:left">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">Dividends on our common and
preferred stock are treated as a reduction of additional
paid-in-capital since we currently have an accumulated
deficit. For the remainder of 2009, we expect dividends paid
on our common and preferred stock will be taxable to our
stockholders because we anticipate that these dividends will
be paid out of current or accumulated earnings and profits
for tax purposes.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black">The terms of our 750,000
outstanding shares of 4.99% convertible preferred stock
provide for the conversion ratio on our preferred stock to
increase when we pay quarterly dividends to our common
shareholders in excess of $0.04 per share, as we did in
January and April 2009. The terms of these preferred shares
also prohibit the payment of dividends on our common stock
unless we have paid or set aside for payment all accumulated
and unpaid dividends on such preferred stock for all
preceding dividend periods. In addition, although our credit
facilities do not contain any direct restriction on the
payment of dividends, dividends are included as a fixed
charge in the calculation of our fixed charge coverage ratio
under our credit facilities. If we are unable to comply with
our fixed charge coverage ratio, our ability to pay
additional dividends would be restricted.</span></span>
</p>
<p class="MsoNormal">
<span><span style=
"font-size:6.0pt;color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><i><span style="color:black">Noncontrolling
Interests.</span></i> <span style=
"color:black;mso-bidi-font-style:italic">In June 2009,</span>
<span style="color:black">our subsidiary EPB, a master
limited partnership, issued 11 million common units for net
proceeds of $184 million. <span style=
"mso-bidi-font-style: italic">In July 2009, the underwriters
of the common unit offering exercised their option to
purchase</span> 1.7 million common units for net proceeds of
$28 million. Our ownership interest in EPB decreased from 74
percent to 67 percent as a result of the EPB equity offering.
EPB makes quarterly distributions of available cash to its
unitholders in accordance with its partnership
agreement.</span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span><span style="color:black"> </span></span>
</p>
<p class="MsoNormal" style="text-indent:.2in">
<span>In July 2009, EPB acquired an additional 18 percent
interest in one of our consolidated subsidiaries, Colorado
Interstate Gas Company (CIG), for $215 million.<span style=
"mso-spacerun:yes"> </span> After this acquisition, EPB will
own a 58 percent interest in CIG, a 25 percent interest in
Southern Natural Gas Company and a 100 percent interest in
Wyoming Interstate Company.</span>
</p>
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