Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2012

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

	Three Months Ended March 31,
	2012			2011
(millions)
Other Revenues (1)	$	-		$	21
Production Expense
Lease Operating Expense	$	118		$	92
Production and Ad Valorem Taxes		38			32
Transportation and Gathering Expense		23			18
Total	$	179		$	142
Other Operating (Income) Expense, Net
Deepwater Gulf of Mexico Moratorium Expense (2)	$	-		$	18
Electricity Generation Expense (1)		-			17
Other, Net		12			1
Total	$	12		$	36
Other Non-Operating (Income) Expense, Net
Deferred Compensation Expense (3)	$	3		$	10
Interest Income		-			(3	)
Other (Income) Expense, Net		(4	)		1
Total	$	(1	)	$	8

(1)

Other revenues for first quarter 2011 consist of electricity sales from the Machala power plant located in Machala, Ecuador. Electricity generation expense includes all operating and non-operating expenses associated with the plant, including depreciation and changes in the allowance for doubtful accounts. In May 2011, we transferred our assets in Ecuador to the Ecuadorian government.

(2)	Amount relates to rig stand-by expense incurred prior to receiving a permit to resume drilling activities in the deepwater Gulf of Mexico in 2011.

(3)	Amounts represent increases 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:

	March 31,			December 31,
	2012			2011
(millions)
Accounts Receivable, Net
Commodity Sales	$	467		$	356
Joint Interest Billings		344			313
Other		117			123
Allowance for Doubtful Accounts		(9	)		(9	)
Total	$	919		$	783
Other Current Assets
Inventories, Current	$	77		$	78
Commodity Derivative Assets, Current		17			10
Deferred Income Taxes, Net, Current (1)		159			41
Probable Insurance Claims (2)		22			15
Prepaid Expenses and Other Current Assets, Current		55			36
Total	$	330		$	180
Other Noncurrent Assets
Equity Method Investments	$	376		$	329
Mutual Fund Investments		108			99
Commodity Derivative Assets, Noncurrent		22			37
Other Assets, Noncurrent		86			83
Total	$	592		$	548
Other Current Liabilities
Production and Ad Valorem Taxes	$	123		$	121
Commodity Derivative Liabilities, Current		119			76
Income Taxes Payable		131			127
Asset Retirement Obligations, Current		41			33
Interest Payable		41			56
CONSOL Installment Payment (3)		325			324
Current Portion of FPSO Lease Obligation		48			45
Other		123			143
Total	$	951		$	925
Other Noncurrent Liabilities
Deferred Compensation Liabilities, Noncurrent	$	237		$	222
Asset Retirement Obligations, Noncurrent		350			344
Accrued Benefit Costs, Noncurrent		90			88
Commodity Derivative Liabilities, Noncurrent		29			7
Other		113			91
Total	$	819		$	752

(1)	Increase from December 31, 2011 is due to reclassification of deferred income tax assets from long-term to short-term as certain foreign entities are estimated to begin utilizing net operating loss carryforwards in 2012 and 2013.

(2)	Amounts represent the costs incurred to date of the Leviathan-2 appraisal well in excess of the insurance deductible and insurance proceeds received to date.

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