HOUSTON, Oct. 30 /PRNewswire-FirstCall/ -- Marathon Oil Corporation (NYSE:
MRO) today reported third quarter 2008 net income of $2.064 billion, or $2.90
per diluted share. Net income in the third quarter 2007 was $1.021 billion or
$1.49 per diluted share. For the third quarter 2008, net income adjusted for
special items was $1.963 billion, or $2.76 per diluted share, compared to net
income adjusted for special items of $1.016 billion, or $1.48 per diluted
share, for the third quarter 2007.
3rd Quarter Ended September 30
(In millions, except per diluted 2008 2007
share data)
Net income adjusted for special
items(a) $1,963 $1,016
Adjustments for special items (net of
income taxes):
Gain (loss) on U.K. natural gas contracts 101 (62)
Gain on foreign currency derivative
instruments - 74
Loss on early extinguishment of debt - (7)
Net income $2,064 $1,021
Net income adjusted for special items(a)
- per diluted share $2.76 $1.48
Net income - per diluted share $2.90 $1.49
Revenues and other income $23,446 $16,954
Weighted average shares - diluted 711 685
(a) Net income adjusted for special items is a non-GAAP financial measure
and should not be considered a substitute for net income as determined in
accordance with accounting principles generally accepted in the United States.
See below for further discussion of net income adjusted for special items.
"Despite volatility in the marketplace, Marathon delivered outstanding
operational and financial results across all our business segments in the
third quarter 2008. Marathon's net income for the quarter more than doubled
year-over-year," said Clarence P. Cazalot, Jr., president and CEO of Marathon.
"Our upstream business achieved strong production performance and our
downstream segment realized strong profitability, in spite of impacts from
Hurricanes Gustav and Ike. Marathon's LNG operations in Equatorial Guinea
continued reliable performance at near-peak capacity, while bitumen production
from the Canadian oil sands mining project increased during the quarter,"
Cazalot said.
"As a prudent approach to the current business environment, and as part of
our ongoing capital discipline, we expect our 2009 capital program to be more
than 15 percent lower than 2008 expenditures," Cazalot said. "We also are
continuing the process of evaluating a potential separation of Marathon's
businesses, and we're on course for a decision by the end of this year.
"Importantly, Marathon continues to maintain a strong balance sheet, with
substantial cash balances and significant unused credit facility capacity.
Furthermore, our liquidity has been further enhanced since September 30 with
the proceeds from the sale of our ownership interests in Pilot Travel Centers,
which closed in early October, and will additionally benefit from the sale of
our non-core Norwegian assets, which is expected to close October 31. Marathon
is on track to achieve our goal of $2 - $4 billion in gross proceeds from the
ongoing portfolio review by mid-year 2009," he said.
Segment Results
Total segment income was $2.063 billion in the third quarter of 2008,
compared to $1.013 billion in the third quarter of 2007.
3rd Quarter Ended September 30
(In millions) 2008 2007
Segment Income (Loss)
Exploration & Production (E&P)
United States $285 $147
International 654 332
Total E&P 939 479
Oil Sands Mining (OSM) 288 -
Refining, Marketing & Transportation (RM&T) 771 482
Integrated Gas (IG) 65 52
Segment Income(a) $2,063 $1,013
a) See Preliminary Supplemental Statistics below for a reconciliation of
segment income to net income as reported under generally accepted accounting
principles.
Exploration and Production
Exploration and Production segment income totaled $939 million in the
third quarter of 2008, almost double the $479 million reported in the third
quarter of 2007. The increase was primarily a result of the average liquid
hydrocarbon price realization reaching $111.33 per barrel, as well as higher
sales volumes. This liquid hydrocarbon price realization was 63 percent
higher, compared to the third quarter of 2007.
Sales volumes during the quarter averaged 379,000 barrels of oil
equivalent per day (boepd), compared to 371,000 boepd for the same period last
year, despite shutting-in the Gulf of Mexico operations for hurricanes.
Production from the Alvheim/Vilje development offshore Norway and from the new
Neptune development in the Gulf of Mexico more than compensated for those
weather-related declines.
Hurricanes Gustav and Ike impacted Gulf of Mexico production for the
latter part of the third quarter, resulting in approximately 9,500 net boepd
being shut-in during the quarter. The Neptune development, in which Marathon
holds a 30 percent outside-operated working interest, was shut down during the
hurricanes but resumed production on Sept. 25, and the Marathon-operated Ewing
Bank development resumed production on Oct. 27. However, the non-operated
Troika and Ursa fields remain shut-in for repairs. Marathon holds an
approximate 65 percent operated interest in Ewing Bank, a 50 percent working
interest in Troika and a 3.5 percent overriding royalty interest in Ursa.
Production available for sale in the third quarter 2008 averaged 389,000
boepd, compared to 373,000 boepd in the same period last year, an increase of
more than 4 percent. Excluding hurricane impacts, the year-on-year increase
would have been nearly 7 percent. The difference between production volumes
available for sale and the recorded sales volumes is due to the timing of
international oil liftings and natural gas held in storage. The Company has
narrowed its expectation for 2008 production available for sale to be between
385,000 and 395,000 boepd, excluding the effects of any dispositions.
United States upstream income was $285 million in the third quarter of
2008, compared to $147 million in the third quarter of 2007, primarily as a
result of higher liquid hydrocarbon and natural gas price realizations
partially offset by increased costs, operating expense and depletion,
depreciation and amortization, primarily related to new production and higher
income taxes.
International upstream income was $654 million in the third quarter of
2008, compared to $332 million in the third quarter of 2007. The increase was
primarily a result of higher liquid hydrocarbon prices, sales volumes and
natural gas price realizations, partially offset by increased costs related to
new production and higher income taxes.
3rd Quarter Ended September 30
2008 2007
Key Production Statistics
Net Sales
United States - Liquids (mbpd) 63 63
United States - Natural gas (mmcfpd) 426 464
International - Liquids (mbpd) 161 136
International - Natural gas (mmcfpd) 502 567
Total Net Sales (mboepd) 379 371
The Vilje field offshore Norway began production in late July 2008.
Commissioning of the Alvheim/Vilje project is continuing with a total of 10
wells currently available for production, out of a total of 12 producing wells
planned for Phase 1. Marathon has seen extended periods of production at
facility capacity of 125,000 gross boepd (75,000 net boepd) and expects
stabilization at these rates during November. Marathon has a 65 percent
operated interest in the Alvheim fields and a 47 percent outside-operated
working interest in the Vilje field.
In the Gulf of Mexico, Marathon announced a deepwater discovery on the
Freedom/Gunflint prospect on Oct. 14. The discovery well, located on
Mississippi Canyon Block 948, encountered more than 550 feet of net
hydrocarbon-bearing sands in the Middle and Lower Miocene reservoirs. Marathon
holds a 12.5 percent working interest in the block.
Marathon made its 28th deepwater discovery offshore Angola with the Dione
discovery well on Block 31, announced on Oct. 15. Marathon holds a 10 percent
outside-operated interest in Block 31 and a 30 percent outside-operated
interest in Block 32.
In October, the Company was awarded a 49 percent interest and operatorship
in the Bone Bay Block offshore Indonesia. This high potential, under-explored
area has water depths ranging between 165 to 6,500 feet. The Bone Bay Block is
about 200 miles southeast of Marathon's Pasangkayu Block, which was awarded in
2006.
Oil Sands Mining
The Oil Sands Mining segment reported income of $288 million for the third
quarter of 2008. This reflects a net after-tax gain of $190 million on crude
oil derivative instruments, which includes a realized after-tax loss of $24
million and an unrealized after-tax mark-to-market gain of $214 million. These
derivative instruments were put in place by Western Oil Sands Inc. prior to
its acquisition by Marathon in October 2007 to mitigate price risk related to
future sales of synthetic crude oil. The last of these derivative instruments
is set to expire in the fourth quarter of 2009.
Marathon's third quarter 2008 net bitumen production before royalties from
the Athabasca Oil Sands Project (AOSP) mining operation was approximately
28,000 bpd. Third quarter production increased 15 percent over the second
quarter 2008 due to greater reliability of delivery of mined ore to the
processing plant. Also, during the third quarter, the royalty calculation rate
applicable to bitumen production from the Muskeg River Mine increased from 1
percent of gross revenue to 25 percent of net revenue, as per applicable
regulations, following the achievement of the project's payout.
3rd Quarter Ended September 30
2008 2007
Key Oil Sands Mining Statistics
Net Bitumen Production (mbpd)(a) 28 -
Net Synthetic Crude Oil Sales (mbpd) 32 -
Synthetic Crude Oil Average
Realization (per bbl)(b) $113.42 $-
(a) Before royalties.
(b) Excludes gains/losses on derivative instruments.
The AOSP Phase 1 expansion is on track and is anticipated to begin
operations in the 2010/2011 timeframe. The Phase 1 expansion includes
construction of mining and extraction facilities at the Jackpine mine,
expansion of treatment facilities at the existing Muskeg River mine, expansion
of the Scotford upgrader and development of related infrastructure.
Refining, Marketing and Transportation
The Refining, Marketing and Transportation (RM&T) segment income was $771
million in the third quarter of 2008 compared to $482 million in the third
quarter of 2007. The increase was primarily a result of a higher refining and
wholesale marketing gross margin, in part attributable to a substantial drop
in crude oil prices. The third quarter margin also benefited from an increase
in the average sweet/sour differentials compared to the same quarter last
year.
The refining and wholesale marketing gross margin per gallon was 25.19
cents in the third quarter of 2008, compared to 17.17 cents in the third
quarter of 2007. Marathon's refining and wholesale marketing gross margin
included pre-tax derivative gains of $156 million for the third quarter of
2008 compared to losses of $360 million for the third quarter of 2007. The
variance primarily reflects falling crude futures prices, as well as the fact
that the Company no longer uses derivatives to mitigate its domestic crude oil
acquisition price risk. Most of these derivatives have an underlying physical
commodity transaction; however, the income effect related to the derivatives
and the income effect related to the underlying physical transactions may not
necessarily be recognized in net income in the same period. Marathon expects
to selectively continue its practice of using derivatives to protect the
carrying value of seasonal RM&T inventories and long-haul foreign crude oil
spot purchases.
Crude oil refined during the third quarter of 2008 averaged 955,000 bpd,
an 87,000 bpd decrease from the third quarter of 2007, and total refinery
throughputs were 1,144,000 bpd, approximately 8 percent lower than the
1,241,000 bpd in the third quarter of 2007, attributable primarily to
weather-related impacts.
Speedway SuperAmerica LLC (SSA) gasoline and distillates gross margin per
gallon averaged 16.9 cents in the third quarter of 2008, compared to 11.03
cents in the third quarter of 2007. SSA same store gasoline sales volume
declined by approximately 12 percent during the third quarter of 2008 while
same store merchandise sales increased by approximately 2 percent during the
same period. During the third quarter 2007, SSA completed a special sales
promotion that was estimated to increase SSA's 2007 third quarter same store
gasoline volume by approximately 6 percent. Excluding this special sales
promotion, the Company estimates that SSA's third quarter same store gasoline
volume decline would have been approximately 6 percent.
3rd Quarter Ended September 30
2008 2007
Key Refining, Marketing & Transportation
Statistics
Crude Oil Refined (mbpd) 955 1,042
Other Charge and Blend Stocks (mbpd) 189 199
Total Refinery Inputs (mbpd) 1,144 1,241
Refined Product Sales Volumes (mbpd) 1,357 1,440
Refining and Wholesale Marketing
Gross Margin ($/gallon) $0.2519 $0.1717
In the third quarter, Marathon announced an agreement to sell its 50
percent ownership interest in Pilot Travel Centers LLC (PTC) to Pilot
Corporation. The transaction, valued at approximately $700 million before tax,
was completed in October 2008.
The Garyville Major Expansion (GME) project is approximately 70 percent
complete with an on-schedule startup expected in the fourth quarter 2009. The
Company has identified minor increases for additional quantities of materials
required, material and labor escalation and some additional costs associated
with the recent hurricanes in the Gulf Coast region. Marathon now projects the
project will cost about $3.35 billion, or approximately 5 percent more than
the original estimate.
All the permits have been received for the Detroit Heavy Oil Upgrading
Project (DHOUP) and construction started at the end of the second quarter of
2008. Due to the current market conditions, Marathon is in the process of
reevaluating the project construction schedule and expects to defer the
project completion. The Company is currently compiling the new project
schedule and cost, and expects to complete this analysis by year-end 2008.
Integrated Gas
Integrated Gas segment income was $65 million in the third quarter of 2008
compared to $52 million in the third quarter of 2007.
3rd Quarter Ended September 30
2008 2007
Key Integrated Gas Statistics
Net Sales (mtpd)
LNG 6,048 6,137
Methanol 757 1,421
Net LNG sales for the third quarter of 2008 exceeded original estimates as
the 60 percent Marathon-owned Equatorial Guinea LNG facility has delivered
increased reliability at the facility and the ability to produce LNG in excess
of the plant's nameplate capacity of 3.7 million metric tonnes per annum.
EGLNG production was curtailed for 16 days in July while scheduled repairs and
modifications were completed on the facility to improve the overall efficiency
of the plant. The operational availability of the facility has been superior,
operating at 97.8 percent year-to-date with 13 cargoes delivered during the
third quarter of 2008.
Pre-tax earnings from Atlantic Methanol Production Company LLC (AMPCO)
methanol sales were approximately $5 million in the third quarter.
Profitability was impacted by a series of planned and unplanned maintenance
events, but the facility was returned to full production status in October and
is presently operating at full capacity, or 1,064,000 gross tons per annum.
Marathon holds a 45 percent interest in AMPCO.
Marathon continues to invest in the development of new technologies to
create value and supply new energy sources. The Company expended approximately
$21 million on a pretax basis during the third quarter of 2008 on gas
commercialization technologies, including completing the construction and
beginning the commissioning of the demonstration plant to further develop its
proprietary Gas-To-Fuels(TM) technology. Expenses in the third quarter of 2007
for comparable items amounted to $12 million on a pre-tax basis.
Corporate
At Sept. 30, 2008, Marathon's main sources of short-term liquidity
amounted to approximately $3.2 billion, comprised of approximately $1.5
billion of cash equivalents and $1.7 billion of unused capacity under its $3
billion committed revolving credit facility. At Oct. 29, 2008, Marathon's cash
balance remained at approximately the same level of $1.5 billion while it had
nearly the full $3 billion of capacity under the previously mentioned
committed revolving credit facility bring total liquidity to approximately
$4.5 billion. At Sept. 30, 2008, the Company had a 23 percent cash-adjusted
debt-to-capital ratio.
Marathon continued its share repurchase program during the third quarter,
repurchasing approximately 2.3 million shares at a cost of approximately $107
million. Since January 2006, Marathon's Board of Directors has authorized the
repurchase of up to $5 billion of Marathon's common stock. As of the end of
the third quarter, approximately $2.9 billion in Marathon shares had been
repurchased, bringing total shares repurchased so far to 65.9 million.
Special Items
Marathon has two natural gas sales contracts in the United Kingdom that
are accounted for as derivative instruments. Mark-to-market changes in the
valuation of these contracts must be recognized in current period income. In
the third quarter of 2008, the non-cash after-tax mark-to-market gain on these
contracts related to sales of natural gas from the Brae field complex totaled
$101 million. Due to the volatility in the fair value of these contracts,
Marathon consistently excludes these non-cash gains and losses from net income
adjusted for special items.
During the third quarter of 2007, Marathon entered foreign currency
derivative instruments to limit the Company's exposure to changes in the
Canadian dollar exchange rate related to the acquisition of Western Oil Sands,
Inc. The non-cash after-tax unrealized gains on these derivative instruments
of $74 million were excluded from net income adjusted for special items for
third quarter 2007.
The Company will conduct a conference call and webcast today, Oct. 30, at
2:00 p.m. EDT during which it will discuss third quarter results. The webcast
will include synchronized slides. To listen to the webcast of the conference
call and view the slides, visit the Marathon website at www.Marathon.com.
Replays of the webcast will be available through Nov. 13, 2008. Quarterly
financial and operational information is also provided on Marathon's Web site
at http://ir.marathon.com in the Quarterly Investor Packet.
In addition to net income determined in accordance with generally accepted
accounting principles, Marathon has provided supplementally "net income
adjusted for special items," a non-GAAP financial measure which facilitates
comparisons to earnings forecasts prepared by stock analysts and other third
parties. Such forecasts generally exclude the effects of items that are
considered non-recurring, are difficult to predict or to measure in advance or
that are not directly related to Marathon's ongoing operations. A
reconciliation between GAAP net income and "net income adjusted for special
items" is provided in a table on page 1 of this release. "Net income adjusted
for special items" should not be considered a substitute for net income as
reported in accordance with GAAP. Management, as well as certain investors,
uses "net income adjusted for special items" to evaluate Marathon's financial
performance between periods. Management also uses "net income adjusted for
special items" to compare Marathon's performance to certain competitors.
Unlike capital expenditures reported under generally accepted accounting
principles, the projected costs for the Garyville refinery expansion project
discussed in this release do not include capitalized interest. Capitalized
interest is budgeted at the corporate level.
This release contains forward-looking statements with respect to 2008
worldwide net liquid hydrocarbon and natural gas production available for
sale, the AOSP expansion, projected 2009 capital spending, the goal of
achieving $2 - $4 billion in gross proceeds from asset dispositions by
mid-year 2009, timing and levels of production from the Alvheim/Vilje
development, the potential separation of Marathon's businesses, anticipated
future exploratory and development drilling activity, the Garyville refinery
expansion project, the Detroit refinery heavy oil upgrading and expansion
project, and the common stock repurchase program. The projected 2009 capital
spending budget is based on current expectations, estimates and projections
and is not a guarantee of future performance. Some factors that could
potentially affect the projected asset dispositions include changes in prices
of and demand for crude oil, natural gas and refined products, actions of
competitors, future financial condition and operating results, and economic,
business, competitive and/or regulatory factors affecting the Company's
businesses. Some factors that could potentially affect 2008 worldwide net
liquid hydrocarbon and natural gas production available for sale, the timing
and levels of production from the Alvheim/Vilje development, and anticipated
future exploratory and development drilling activity include pricing, supply
and demand for petroleum products, the amount of capital available for
exploration and development, regulatory constraints, timing of commencing
production from new wells, drilling rig availability, unforeseen hazards such
as weather conditions, acts of war or terrorist acts and the governmental or
military response thereto, and other geological, operating and economic
considerations. Worldwide net liquid hydrocarbon and natural gas production
available for sale could also be affected by the occurrence of acquisitions or
dispositions of oil and gas properties. Factors that could affect the
potential separation of Marathon include board approval, future financial
condition and operating results, and economic, business, competitive and/or
regulatory factors affecting our businesses. Factors that could affect the
AOSP expansion, the Garyville refinery expansion and the Detroit refinery
heavy oil upgrading and expansion projects include transportation logistics,
availability of materials and labor, unforeseen hazards such as weather
conditions, delays in obtaining or conditions imposed by necessary government
and third-party approvals, and other risks customarily associated with
construction projects. The common stock repurchase program could be affected
by changes in prices of and demand for crude oil, natural gas and refined
products, actions of competitors, disruptions or interruptions of the
Company's production or refining operations due to unforeseen hazards such as
weather conditions or acts of war or terrorist acts, a decision to separate
Marathon's businesses, and other operating and economic considerations. The
foregoing factors (among others) could cause actual results to differ
materially from those set forth in the forward-looking statements. In
accordance with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, Marathon Oil Corporation has included in its
Annual Report on Form 10-K for the year ended December 31, 2007, and
subsequent Forms 10-Q and 8-K, cautionary language identifying other important
factors, though not necessarily all such factors, that could cause future
outcomes to differ materially from those set forth in the forward-looking
statements.
Media Relations Contacts: Lee Warren 713-296-4103
Paul Weeditz 713-296-3910
Investor Relations Contacts: Howard Thill 713-296-4140
Chris Phillips 713-296-3213
Condensed Consolidated Statements of Income (Unaudited)
3rd Quarter Ended Nine Months Ended
September 30 September 30
(In millions, except per 2008 2007 2008 2007
share data)
Revenues and other income:
Sales and other operating
revenues (including consumer
excise taxes) $22,477 16,347 60,983 45,221
Sales to related parties 637 415 1,865 1,146
Income from equity method
investments 270 170 735 394
Net gain on disposal of assets 15 2 37 20
Other income 47 20 151 62
Total revenues and other
income 23,446 16,954 63,771 46,843
Costs and expenses:
Cost of revenues (excludes
items below) 16,992 12,951 49,432 34,358
Purchases from related
parties 244 104 609 240
Consumer excise taxes 1,273 1,352 3,784 3,856
Depreciation, depletion and
amortization 597 409 1,552 1,198
Selling, general and
administrative expenses 351 336 1,012 950
Other taxes 126 95 376 286
Exploration expenses 109 88 368 264
Total costs and expenses 19,692 15,335 57,133 41,152
Income from operations 3,754 1,619 6,638 5,691
Net interest and other
financing income (costs) (53) 19 (54) 58
Gain on foreign currency
derivative instruments - 120 - 120
Loss on early extinguishment
of debt - (11) - (14)
Minority interests in loss of
Equatorial Guinea
LNG Holdings Limited - - - 3
Income before income taxes 3,701 1,747 6,584 5,858
Provision for income taxes 1,637 726 3,015 2,578
Income from continuing
operations 2,064 1,021 3,569 3,280
Discontinued operations - - - 8
Net income $2,064 $1,021 $3,569 $3,288
Income from continuing
operations
Per share - basic $2.92 $1.50 $5.03 $4.80
Per share - diluted $2.90 $1.49 $5.00 $4.76
Net income
Per share - basic $2.92 $1.50 $5.03 $4.81
Per share - diluted $2.90 $1.49 $5.00 $4.77
Dividends paid per share $0.24 $0.24 $0.72 $0.68
Weighted Average Shares:
Basic 707 680 710 684
Diluted 711 685 714 689
Preliminary Supplemental Statistics (Unaudited)
3rd Quarter Ended Nine Months Ended
September 30 September 30
(Dollars in millions, except as 2008 2007 2008 2007
noted)
Segment Income (Loss)
Exploration and Production
United States $285 $147 $888 $470
International 654 332 1,563 794
E&P segment 939 479 2,451 1,264
Oil Sands Mining 288 - 158 -
Refining, Marketing and Transportation 771 482 854 2,073
Integrated Gas 65 52 266 83
Segment income 2,063 1,013 3,729 3,420
Items not allocated to segments,
net of income taxes:
Corporate and other unallocated
items (100) 3 (141) (149)
Gain on foreign currency derivative
instruments - 74 - 74
Gain (loss) on U.K. natural gas
contracts 101 (62) (19) (56)
Loss on early extinguishment of debt - (7) - (9)
Discontinued operations - - - 8
Net income $2,064 $1,021 $3,569 $3,288
Capital Expenditures
Exploration and Production $738 $582 $2,387 $1,623
Oil Sands Mining 271 - 781 -
Refining, Marketing and Transportation 765 430 1,978 981
Integrated Gas(a) 3 2 4 93
Corporate 9 12 18 28
Total $1,786 $1,026 $5,168 $2,725
Exploration Expenses
United States $68 $53 $173 $137
International 41 35 195 127
Total $109 $88 $368 $264
E&P Operating Statistics
Net Liquid Hydrocarbon Sales
(mbpd)(b)
United States 63 63 63 66
Europe 66 33 43 33
Africa 95 103 93 100
Total International 161 136 136 133
Worldwide 224 199 199 199
Net Natural Gas Sales (mmcfd)(b)(c)
United States 426 464 446 478
Europe 156 195 195 206
Africa 346 372 379 221
Total International 502 567 574 427
Worldwide 928 1,031 1,020 905
Total Worldwide Sales (mboepd) 379 371 369 350
(a) Through April 2007, includes EGHoldings at 100 percent. Effective
May 1, 2007, Marathon no longer consolidates EGHoldings and its investment in
EGHoldings is accounted for prospectively using the equity method of
accounting; therefore, EGHoldings' capital expenditures subsequent to April
2007 are not included in Marathon's capital expenditures.
(b) Amounts are net after royalties, except for Ireland where amounts are
before royalties.
(c) Includes natural gas acquired for injection and subsequent resale of
2 mmcfd and 51 mmcfd in the third quarters of 2008 and 2007 and 21 mmcfd and
49 mmcfd in the first nine months of 2008 and 2007.
Preliminary Supplemental Statistics (Unaudited) (continued)
3rd Quarter Ended Nine Months Ended
September 30 September 30
(Dollars in millions, except as noted) 2008 2007 2008 2007
E&P Operating Statistics (continued)
Average Realizations(d)
Liquid Hydrocarbons (per bbl)
United States $106.81 $63.53 $100.27 $55.83
Europe $118.52 $73.19 $115.15 $63.80
Africa $109.36 $69.48 $102.11 $60.57
Total International $113.10 $70.37 $106.21 $61.37
Worldwide $111.33 $68.21 $104.33 $59.54
Natural Gas (per mcf)
United States $7.70 $5.14 $7.70 $5.74
Europe $8.85 $6.47 $8.10 $5.95
Africa $0.25 $0.25 $0.25 $0.25
Total International $2.92 $2.38 $2.91 $3.01
Worldwide $5.11 $3.63 $5.00 $4.45
OSM Operating Statistics
Net Bitumen Production (mbpd)(e) 28 - 25 -
Net Synthetic Crude Sales (mbpd)(e) 32 - 31 -
Synthetic Crude Average Realization
(per bbl)(d) $113.42 $- $106.37 $-
RM&T Operating Statistics
Refinery Runs (mbpd)
Crude oil refined 955 1,042 941 1,028
Other charge and blend stocks 189 199 201 211
Total 1,144 1,241 1,142 1,239
Refined Product Yields (mbpd)
Gasoline 586 646 598 649
Distillates 358 358 336 352
Propane 21 24 22 24
Feedstocks and special products 95 111 104 118
Heavy fuel oil 20 27 24 25
Asphalt 79 93 75 87
Total 1,159 1,259 1,159 1,255
Refined Product Sales Volumes
(mbpd)(f) 1,357 1,440 1,335 1,403
Refining and Wholesale Marketing
Gross
Margin (per gallon)(g) $0.2519 $0.1717 $0.1137 $0.2317
Speedway SuperAmerica
Retail outlets 1,620 1,637 - -
Gasoline & distillates sales
(millions of gallons) 796 892 2,376 2,520
Gasoline & distillates gross margin
(per gallon) $0.1690 $0.1103 $0.1235 $0.1115
Merchandise sales $764 $752 $2,133 $2,110
Merchandise gross margin $197 $191 $541 $533
IG Operating Statistics
Sales Volumes (mtpd)(h)
LNG 6,048 6,137 6,453 3,117
Methanol 757 1,421 1,024 1,285
(d) Excludes gains and losses on derivative instruments (including the
unrealized effects of U.K. natural gas sales contracts that are accounted for
as derivatives).
(e) Amount is before royalties.
(f) Total average daily volumes of all refined product sales to
wholesale, branded and retail customers.
(g) Sales revenue less cost of refinery inputs, purchased products and
manufacturing expenses, including depreciation.
(h) LNG sales volumes include both consolidated sales (Alaska) and our
share of the sales of an equity method investee (Equatorial Guinea). Methanol
sales volumes represent our share of sales of an equity method investee in
Equatorial Guinea.
