Exhibit 99.1
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MARATHON OIL CORPORATION REPORTS FIRST QUARTER 2008 RESULTS
HOUSTON, May 1, 2008 – Marathon Oil Corporation (NYSE: MRO) today reported first quarter 2008 net income of $731 million, or $1.02 per diluted share. Net income in the first quarter of 2007 was $717 million, or $1.03 per diluted share. For the first quarter of 2008, net income adjusted for special items was $767 million, or $1.07 per diluted share, compared to net income adjusted for special items of $707 million, or $1.02 per diluted share, for the first quarter of 2007.
1st Quarter Ended March 31 | ||||||||
(In millions, except per diluted share data) | 2008 | 2007(b) | ||||||
Net income adjusted for special items(a) | $ | 767 | $ | 707 | ||||
Adjustments for special items (net of income taxes): | ||||||||
Gain (loss) on long-term U.K. natural gas contracts | (36 | ) | 11 | |||||
Loss on early extinguishment of debt | - | (1 | ) | |||||
Net income | $ | 731 | $ | 717 | ||||
Net income adjusted for special items(a) - per diluted share | $ | 1.07 | $ | 1.02 | ||||
Net income - per diluted share | $ | 1.02 | $ | 1.03 | ||||
Revenues and other income | $ | 18,100 | $ | 13,002 | ||||
Weighted average shares - diluted | 717 | 694 |
(a) | See page 6 for a discussion of net income adjusted for special items. |
(b) | Restated for two-for-one stock split on June 18, 2007. |
“Despite a very challenging downstream environment, our business overall generated very solid financial results for the first quarter, with increased adjusted net income over both the first and fourth quarters of 2007,” said Clarence P. Cazalot, Jr., Marathon president and CEO.
“Our upstream and integrated gas segments had strong operating performance and benefited as well from higher overall hydrocarbon prices. Upstream sales volumes were up 11.5 percent on a year-on-year basis and 6.8 percent quarter over quarter, while our LNG facility in Equatorial Guinea performed at near full capacity.
“Downstream results were adversely impacted by lower overall margins as a result of rapidly rising crude oil prices as well as the substantial amount of planned maintenance we performed at two of our largest refineries in the first quarter,” Cazalot added.
Segment Results
Total segment income was $735 million in the first quarter of 2008, compared to $749 million in the first quarter of 2007.
Marathon Oil Corporation Reports First Quarter 2008 Results
1st Quarter Ended March 31 | ||||||||
(In millions) | 2008 | 2007 | ||||||
Segment Income (Loss) | ||||||||
Exploration & Production (E&P) | ||||||||
United States | $ | 244 | $ | 150 | ||||
International | 440 | 235 | ||||||
Total E&P | 684 | 385 | ||||||
Oil Sands Mining (OSM) | 27 | - | ||||||
Refining, Marketing & Transportation (RM&T) | (75 | ) | 345 | |||||
Integrated Gas (IG) | 99 | 19 | ||||||
Segment Income(a) | $ | 735 | $ | 749 |
(a) | See Preliminary Supplemental Statistics on page 9 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 $684 million in the first quarter of 2008, compared to $385 million in the first quarter of 2007, primarily as a result of higher liquid hydrocarbon realizations, partially offset by higher exploration expenses. Sales volumes during the quarter averaged 378,000 barrels of oil equivalent per day (boepd) and production available for sale averaged 375,000 boepd.
United States upstream income was $244 million in the first quarter of 2008, compared to $150 million in the first quarter of 2007, primarily as a result of higher liquid hydrocarbon and natural gas realizations, partially offset by lower sales volumes and higher exploration expenses.
International upstream income was $440 million in the first quarter of 2008, compared to $235 million in the first quarter of 2007, primarily due to higher liquid hydrocarbon realizations, partially offset by increased exploration expenses. Included in the first quarter 2008 exploration expense were costs related to the acquisition of seismic data in Indonesia and to the evaluation of Canadian in-situ oil sand leases. The increase in Equatorial Guinea natural gas sales volumes due to the start-up of the EG LNG Train 1 production facility in the second quarter of 2007 contributed to the decline in the average natural gas realization for the first quarter of 2008.
1st Quarter Ended March 31 | ||||||||
2008 | 2007 | |||||||
Key Production Statistics | ||||||||
Net Sales | ||||||||
United States – Liquids (mbpd) | 63 | 69 | ||||||
United States – Natural gas (mmcfpd) | 482 | 512 | ||||||
International – Liquids (mbpd) | 127 | 129 | ||||||
International – Natural gas (mmcfpd) | 647 | 337 | ||||||
Total Net Sales (mboepd) | 378 | 339 |
Final project commissioning continues on the Alvheim/Vilje development in Norway. Marathon has a 65 percent operated interest in the Alvheim fields and a 47 percent outside-operated interest in the Vilje field. It is expected that a combined peak net production rate of 75,000 boepd will be reached in early 2009.
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 2
During the first quarter, Marathon was the high bidder on 15 blocks offered in the Central Gulf of Mexico Lease Sale No. 206 conducted by the Minerals Management Service (MMS). These high bids total $121 million net to the Company. Two blocks are 100 percent Marathon, and the remaining blocks were bid with partners. Initial drilling on these leases, and those acquired at Lease Sale No. 205 in October 2007, is planned for 2009.
Also in the Gulf of Mexico, Marathon drilled a successful appraisal well on the Droshky discovery and participated in the successful Stones appraisal well. The Droshky appraisal well is located on Green Canyon Block 244 in about 2,900 feet of water. The initial appraisal well successfully defined the limits of the discovery and encountered some additional deeper pay intervals. The appraisal well was then sidetracked to help assess reservoir connectivity and gather core and fluid information. The well has been cased for future completion/production. Marathon owns a 100 percent working interest in the Droshky discovery. The Stones appraisal well is located on Walker Ridge Block 508 approximately 200 miles from New Orleans. This discovery encountered multiple hydrocarbon-bearing sands in the Lower Tertiary interval. Future drilling activity is currently being planned to further define the size and help determine the potential commerciality of this discovery. Marathon holds a 25 percent outside-operated interest in Stones.
Offshore Angola, Marathon participated in the Portia discovery on Block 31. Portia is Marathon’s 27th discovery on Blocks 31 and 32. It was drilled in a water depth of about 6,500 feet and reached a total depth of about 18,600 feet. The well test results confirmed the capability of the reservoir to flow more than 5,000 barrels per day. Marathon is currently participating in a well on Block 31 and a well on Block 32. Also, Marathon has participated in three additional deepwater Angola exploration/appraisal wells that have reached total depth. The results of these wells will be disclosed upon receipt of government and partner approvals. Marathon holds a 10 percent outside-operated interest in Block 31 and a 30 percent outside-operated interest in Block 32.
Oil Sands Mining
The Oil Sands Mining segment reported income of $27 million for the first quarter of 2008. This includes a $36 million after-tax loss, of which $32 million was unrealized, on derivative instruments. These derivatives 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.
Marathon’s first quarter 2008 net bitumen production before royalties from the Athabasca Oil Sands Project (AOSP) mining operation was 24,000 barrels per day (bpd), which was lower than expected due to weather-related issues at the mine and unplanned maintenance at the Scotford upgrader.
1st Quarter Ended March 31 | ||||||||
2008 | 2007 | |||||||
Key Oil Sands Mining Statistics | ||||||||
Net Bitumen Production (mbpd)(a) | 24 | - | ||||||
Net Synthetic Crude Oil Sales (mbpd) | 31 | - | ||||||
Synthetic Crude Oil Average Realization (per bbl)(b) | $ | 89.03 | - |
(a) | Before royalties. |
(b) | Excludes losses on derivative instruments. |
The AOSP Phase 1 Expansion – which 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 – is anticipated to begin operations in late 2010.
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 3
During the first quarter, the royalty calculation methodology for the AOSP was revised to allow for additional eligible costs of the project. As a result, the project reverted to the one percent gross royalty (in lieu of the 25 percent post-recovery rate) as of July 1, 2007. Marathon expects a royalty refund of $32 million, of which $16 million was included in income for the first quarter of 2008 and $16 million reduced the goodwill recorded at the acquisition date since it related to pre-acquisition activities.
Refining, Marketing and Transportation
The Refining, Marketing and Transportation segment reported a loss of $75 million in the first quarter of 2008 compared to segment income of $345 million in the first quarter of 2007, with the decrease primarily a result of the lower refining and wholesale marketing gross margin.
The refining and wholesale marketing gross margin per gallon was negative 0.26 cents in the first quarter of 2008, compared to a positive 12.46 cents in the first quarter of 2007. The primary factor contributing to this decrease was the decline in the relevant market indicators [Light Louisiana Sweet (LLS) 6-3-2-1 crack spreads] in the Midwest (Chicago) and Gulf Coast markets. Furthermore, the decline in Marathon’s refining and wholesale marketing gross margin was greater than that of the market indicators because the Company’s wholesale price realizations for non-gasoline and non-distillate products did not increase over the comparable prior-year period as much as the average spot market price for the applicable product used in the market indicators.
Marathon’s refining and wholesale marketing gross margin for the first quarter of 2008 was further reduced by higher manufacturing costs, primarily resulting from increased planned maintenance at the Detroit, Garyville, La. and Robinson, Ill. refineries. Primarily as a result of the increase in Marathon’s planned maintenance activities, crude oil refined during the first quarter of 2008 averaged 845,000 bpd, a 123,000 bpd decrease from the first quarter of 2007. Total refinery throughputs were 1,079,000 bpd for the first quarter of 2008, 10 percent lower than the 1,195,000 bpd during the first quarter of 2007. Partially offsetting these negative factors was the improvement in the spread between gasoline and ethanol prices during the first quarter of 2008, compared to the first quarter of 2007.
Marathon’s refining and wholesale marketing gross margins included pretax derivatives losses of $120 million for the first quarter of 2008 and gains of $27 million for first quarter of 2007. The derivative changes reflect both the realized effects of closed derivative positions as well as unrealized effects as a result of marking open derivative positions to market. Most derivatives have an underlying physical commodity transaction; however, the income effect related to the derivatives and the income effect related to the underlying physical transactions may not necessarily be recognized in net income in the same period.
Speedway SuperAmerica (SSA) gasoline and distillates gross margin per gallon averaged 11.47 cents in the first quarter of 2008, compared to 12.17 cents in the first quarter of 2007. SSA same store gasoline sales volume declined 2.4 percent during the first quarter of 2008 while same store merchandise sales declined by slightly less than one percent during the same period.
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 4
1st Quarter Ended March 31 | ||||||||
2008 | 2007 | |||||||
Key Refining, Marketing & Transportation Statistics | ||||||||
Crude Oil Refined (mbpd) | 845 | 968 | ||||||
Other Charge and Blend Stocks (mbpd) | 234 | 227 | ||||||
Total Refinery Inputs (mbpd) | 1,079 | 1,195 | ||||||
Refined Product Sales Volumes (mbpd) | 1,279 | 1,343 | ||||||
Refining and Wholesale Marketing Gross Margin ($/gallon) | $ | (0.0026 | ) | $ | 0.1246 |
The projected $3.2 billion Garyville refinery expansion project – which will provide the equivalent of an additional 7.5 million gallons of clean transportation fuels each day – continues to progress on time and on budget toward a 2009 start-up.
In addition, the permitting process continues for Marathon’s projected $1.9 billion heavy oil upgrading and expansion project at the Detroit refinery.
Integrated Gas
Integrated Gas segment income was $99 million in the first quarter of 2008 compared to $19 million in the first quarter of 2007. The increase was primarily related to income from the Equatorial Guinea LNG production facility which commenced operations in May 2007. The operational availability of the facility was 93 percent in the first quarter of 2008. The production facility, in which Marathon holds a 60 percent interest, delivered 15 cargoes during the first quarter of 2008. Income from Atlantic Methanol Production Company LLC was $4 million higher in the first quarter of 2008 compared to the first quarter of 2007. Higher realized methanol prices offset the impact of a sales volume decrease that resulted from a planned shut-down to repair the reformer and to install a new compressor. Spending for Gas-to-FuelsTM and other natural gas commercialization technologies in the first quarter of 2008 was $16 million compared to $5 million in the first quarter of 2007.
1st Quarter Ended March 31 | ||||||||
2008 | 2007 | |||||||
Key Integrated Gas Statistics | ||||||||
Net Sales (mtpd) | ||||||||
LNG | 6,909 | 1,163 | ||||||
Methanol | 1,130 | 1,324 |
Corporate
Marathon has certain deferred income tax balances denominated in foreign currencies. Fluctuations in currency exchange rates cause the U.S. dollar value of these deferred tax balances to change with the related currency gains and losses reflected in the provision for income taxes. For the first quarter of 2008, Marathon’s provision for income taxes included a $49 million foreign currency gain primarily related to its deferred income tax balance in Canada. Marathon does not allocate foreign currency gains or losses to segments.
Marathon continued its share repurchase program during the first quarter, repurchasing approximately 2.8 million shares at a cost of approximately $143 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 first quarter, just under $2.7 billion in Marathon shares had been repurchased.
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 5
Special Items
Marathon has two long-term 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 first quarter of 2008, the non-cash after-tax mark-to-market loss on these contracts related to Marathon’s Brae natural gas production totaled $36 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.
The Company will conduct a conference call and webcast today, May 1, at 2 p.m. EDT during which it will discuss first quarter results. The webcast will include synchronized slides. To listen to the webcast of the conference call and view the slides, visit the Marathon Web site at www.Marathon.com. Replays of the webcast will be available through May 15, 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 and the Detroit refinery heavy oil upgrading and 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 the Alvheim/Vilje development, the Droshky prospect, potential developments in Angola, anticipated future exploratory and development drilling activity, the AOSP expansion, the Garyville refinery expansion project, the Detroit refinery heavy oil upgrading and expansion project, and the common stock repurchase program. Some factors that could potentially affect the Alvheim/Vilje development, the Droshky prospect, potential developments in Angola, 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. Except for the Alvheim/Vilje development, the foregoing forward-looking statements may be further affected by the inability or delay in obtaining government and third-party approvals and permits. 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, 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 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.
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 6
Media Relations Contacts: Lee Warren 713-296-4103
Scott Scheffler 713-296-4102
InvestorRelations Contacts: Howard Thill 713-296-4140
Michol Ecklund 713-296-3919
Chris Phillips 713-296-3213
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 7
Condensed Consolidated Statements of Income (Unaudited)
1st Quarter ended | ||||||||
March 31 | ||||||||
(In millions, except per share data) | 2008 | 2007 | ||||||
Revenues and other income: | ||||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 17,280 | $ | 12,549 | ||||
Sales to related parties | 542 | 320 | ||||||
Income from equity method investments | 209 | 107 | ||||||
Net gain on disposal of assets | 10 | 11 | ||||||
Other income | 59 | 15 | ||||||
Total revenues and other income | 18,100 | 13,002 | ||||||
Costs and expenses: | ||||||||
Cost of revenues (excludes items below) | 14,452 | 9,603 | ||||||
Purchases from related parties | 139 | 47 | ||||||
Consumer excise taxes | 1,216 | 1,197 | ||||||
Depreciation, depletion and amortization | 451 | 393 | ||||||
Selling, general and administrative expenses | 300 | 287 | ||||||
Other taxes | 123 | 98 | ||||||
Exploration expenses | 129 | 61 | ||||||
Total costs and expenses | 16,810 | 11,686 | ||||||
Income from operations | 1,290 | 1,316 | ||||||
Net interest and other financing income | 9 | 19 | ||||||
Loss on early extinguishment of debt | - | (2 | ) | |||||
Minority interests in loss of Equatorial Guinea LNG Holdings Limited | - | 2 | ||||||
Income before income taxes | 1,299 | 1,335 | ||||||
Provision for income taxes | 568 | 618 | ||||||
Net income | $ | 731 | $ | 717 | ||||
Per Share Data: | ||||||||
Net income per share - basic | $ | 1.03 | $ | 1.04 | ||||
Net income per share - diluted | $ | 1.02 | $ | 1.03 | ||||
Dividends paid per share | $ | 0.24 | $ | 0.20 | ||||
Weighted Average Shares: | ||||||||
Basic | 713 | 689 | ||||||
Diluted | 717 | 694 |
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 8
Preliminary Supplemental Statistics (Unaudited)
1st Quarter ended | ||||||||
March 31 | ||||||||
(Dollars in millions, except as noted) | 2008 | 2007 | ||||||
Segment Income (Loss) | ||||||||
Exploration and Production | ||||||||
United States | $ | 244 | $ | 150 | ||||
International | 440 | 235 | ||||||
E&P segment | 684 | 385 | ||||||
Oil Sands Mining | 27 | - | ||||||
Refining, Marketing and Transportation | (75 | ) | 345 | |||||
Integrated Gas | 99 | 19 | ||||||
Segment income | 735 | 749 | ||||||
Items not allocated to segments, net of income taxes: | ||||||||
Corporate and other unallocated items | 32 | (43 | ) | |||||
Gain (loss) on long-term U.K. natural gas contracts | (36 | ) | 11 | |||||
Net income | $ | 731 | $ | 717 | ||||
Capital Expenditures | ||||||||
Exploration and Production | $ | 775 | $ | 461 | ||||
Oil Sands Mining | 248 | - | ||||||
Refining, Marketing and Transportation | 511 | 217 | ||||||
Integrated Gas(a) | 1 | 57 | ||||||
Corporate | 2 | 2 | ||||||
Total | $ | 1,537 | $ | 737 | ||||
Exploration Expenses | ||||||||
United States | $ | 50 | $ | 37 | ||||
International | 79 | 24 | ||||||
Total | $ | 129 | $ | 61 | ||||
E&P Operating Statistics | ||||||||
Net Liquid Hydrocarbon Sales (mbpd)(b) | ||||||||
United States | 63 | 69 | ||||||
Europe | 23 | 32 | ||||||
Africa | 104 | 97 | ||||||
Total International | 127 | 129 | ||||||
Worldwide | 190 | 198 | ||||||
Net Natural Gas Sales (mmcfd)(b)(c) | ||||||||
United States | 482 | 512 | ||||||
Europe | 252 | 247 | ||||||
Africa | 395 | 90 | ||||||
Total International | 647 | 337 | ||||||
Worldwide | 1,129 | 849 | ||||||
Total Worldwide Sales (mboepd) | 378 | 339 |
(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 37 mmcfd and 40 mmcfd in the first quarters of 2008 and 2007 |
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 9
Preliminary Supplemental Statistics (Unaudited) (continued)
1st Quarter ended | ||||||||
March 31 | ||||||||
(Dollars in millions, except as noted) | 2008 | 2007 | ||||||
E&P Operating Statistics (continued) | ||||||||
Average Realizations(d) | ||||||||
Liquid Hydrocarbons (per bbl) | ||||||||
United States | $ | 83.98 | $ | 49.32 | ||||
Europe | 94.48 | 56.72 | ||||||
Africa | 90.25 | 50.44 | ||||||
Total International | 91.03 | 52.01 | ||||||
Worldwide | $ | 88.70 | $ | 51.07 | ||||
Natural Gas (per mcf) | ||||||||
United States | $ | 6.83 | $ | 5.91 | ||||
Europe | 7.80 | 6.62 | ||||||
Africa | 0.25 | 0.26 | ||||||
Total International | 3.19 | 4.91 | ||||||
Worldwide | $ | 4.75 | $ | 5.51 | ||||
OSM Operating Statistics | ||||||||
Net Bitumen Production (mbpd)(e) | 24 | - | ||||||
Net Synthetic Crude Sales (mbpd)(e) | 31 | - | ||||||
Synthetic Crude Average Realization (per bbl)(d) | $ | 89.03 | $ | - | ||||
RM&T Operating Statistics | ||||||||
Refinery Runs (mbpd) | ||||||||
Crude oil refined | 845 | 968 | ||||||
Other charge and blend stocks | 234 | 227 | ||||||
Total | 1,079 | 1,195 | ||||||
Refined Product Yields (mbpd) | ||||||||
Gasoline | 601 | 621 | ||||||
Distillates | 284 | 322 | ||||||
Propane | 21 | 20 | ||||||
Feedstocks and special products | 101 | 147 | ||||||
Heavy fuel oil | 30 | 22 | ||||||
Asphalt | 60 | 78 | ||||||
Total | 1,097 | 1,210 | ||||||
Refined Product Sales Volumes (mbpd)(f) | 1,279 | 1,343 | ||||||
Refining and Wholesale Marketing Gross Margin (per gallon)(g) | $ | (0.0026 | ) | $ | 0.1246 | |||
Speedway SuperAmerica | ||||||||
Retail outlets | 1,637 | 1,632 | ||||||
Gasoline & distillates sales (millions of gallons) | 792 | 800 | ||||||
Gasoline & distillates gross margin (per gallon) | $ | 0.1147 | $ | 0.1217 | ||||
Merchandise sales | $ | 647 | $ | 644 | ||||
Merchandise gross margin | $ | 163 | $ | 160 | ||||
IG Operating Statistics | ||||||||
Sales Volumes (mtpd)(h) | ||||||||
LNG | 6,909 | 1,163 | ||||||
Methanol | 1,130 | 1,324 |
(d) | Excludes gains and losses on traditional derivative instruments and the unrealized effects of long-term U.K. natural gas 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. |
Marathon Oil Corporation Reports First Quarter 2008 Financial Results page 10