Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

Statements of Operations Information Other statements of operations information is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
(millions)
Other Revenues
Electricity Sales (1)	$	-		$	19		$	32		$	53
Other		-			(2	)		1			(1	)
Total	$	-		$	17		$	33		$	52
Production Expense
Lease Operating Expense	$	98		$	95		$	288		$	283
Production and Ad Valorem Taxes		38			29			108			96
Transportation Expense		17			17			53			51
Total	$	153		$	141		$	449		$	430
Other Operating (Income) Expense, Net
Deepwater Gulf of Mexico Moratorium Expense (2)	$	(1	)	$	-		$	18		$	27
Electricity Generation Expense (1)		-			9			26			26
Loss on Involuntary Conversion (3)		-			-			4			-
Other, Net		3			(5	)		(3	)		6
Total	$	2		$	4		$	45		$	59
Other Non-Operating (Income) Expense, Net
Deferred Compensation (Income) Expense (4)	$	(18	)	$	15		$	(15	)	$	4
Interest Income		(2	)		(1	)		(7	)		(4	)
Other (Income) Expense, Net		4			(2	)		6			(1	)
Total	$	(16	)	$	12		$	(16	)	$	(1	)

(1)

Electricity sales include sales from the Machala power plant located in Machala, Ecuador, through May 2011. Electricity generation expense includes all operating and non-operating expenses associated with the plant, including depreciation and changes in the allowance for doubtful accounts. See Note 3. Acquisitions and Divestitures.

(2)	Amounts relate to rig stand-by expense incurred prior to receiving a permit to resume drilling activities in the deepwater Gulf of Mexico in 2011 and costs to terminate a deepwater Gulf of Mexico drilling rig contract due to the deepwater Gulf of Mexico drilling moratorium in 2010.

(3)

The loss on involuntary conversion represents our insurance deductible related to the Leviathan-2 appraisal well control incident. We suspended operations on the Leviathan-2 well, offshore Israel, in May 2011 when we identified water flowing to the sea floor from the wellbore. The incident was a covered event under our well control insurance. At this time, we expect to recover most of the costs from insurance, subject to a deductible. The final amount to be recovered will be based on the cost to drill the Leviathan-3 replacement well down to the same depth at which the incident occurred, possible remediation activities and/or abandonment activities at the Leviathan-2 well, which have not yet been determined, and other factors. See footnote (2) below.

(4)	Amount represents increases (decreases) in the fair value of shares of our common stock held in a rabbi trust.

Balance Sheet Information Table

Balance Sheet Information Other balance sheet information is as follows:

	September 30,			December 31,
	2011			2010
(millions)
Accounts Receivable, Net
Commodity Sales	$	228		$	291
Joint Interest Billings		253			259
Other		73			33
Allowance for Doubtful Accounts (1)		(8	)		(27	)
Total	$	546		$	556
Other Current Assets
Inventories, Current	$	120		$	112
Commodity Derivative Assets, Current		87			62
Deferred Income Taxes, Net, Current		15			8
Probable Insurance Claims (2)		25			-
Prepaid Expenses and Other Assets, Current		32			19
Total	$	279		$	201
Other Noncurrent Assets
Equity Method Investments (3)	$	339		$	285
Mutual Fund Investments		101			112
Commodity Derivative Assets, Noncurrent		44			-
Other Assets, Noncurrent		64			87
Total	$	548		$	484
Other Current Liabilities
Production and Ad Valorem Taxes	$	128		$	110
Commodity Derivative Liabilities, Current		6			24
Interest Rate Derivative Liability, Current		-			63
Income Taxes Payable		143			90
Asset Retirement Obligations, Current		45			45
Interest Payable		18			36
CONSOL Installment Payment (4)		322			-
Current Portion of FPSO Lease Obligation		33			-
Other		131			127
Total	$	826		$	495
Other Noncurrent Liabilities
Deferred Compensation Liabilities, Noncurrent	$	210		$	229
Asset Retirement Obligations, Noncurrent		215			208
Accrued Benefit Costs, Noncurrent		63			76
Commodity Derivative Liabilities, Noncurrent		-			51
Other		63			66
Total	$	551		$	630

(1)	The decrease in the allowance for doubtful accounts from December 31, 2010 is due primarily to the transfer of assets to the Ecuadorian government. See Note 3. Acquisitions and Divestitures.

(2)	Amount represents the costs incurred to date of the Leviathan-2 appraisal well in excess of the insurance deductible. See footnote (3) above.

(3)	The increase in equity method investments from December 31, 2010 is due to our acquisition of a 50% interest in CONE Gathering LLC. See Note 3. Acquisitions and Divestitures.

(4)	See Note 3. Acquisitions and Divestitures and Note 5. Debt.