29 Reconciliation of Adjusted Return on Capital Return on capital, excluding growth investments is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because it provides greater insight with respect to the underlying operating performance of the company’s productive assets. The company has significant growth investments underway in its upstream and downstream businesses, as previously noted, with expected completion dates over the next several years. As these investments generally require a period of time before they are productive, management believes that a return on capital measure excluding these growth investments is more representative of current operating performance. 1Q'06 4Q'05 3Q'05 2Q'05 1Q'05 Bloomberg 1Q'06 Bloomberg 4Q'05 Bloomberg 3Q'05 Bloomberg 2Q'05 Bloomberg 1Q'05 In Millions Method Annlzd Method Annlzd Method Annlzd Method Annlzd Method Annlzd Numerator (Sum Total) $2,159 $3,116 $1,753 $1,452 $1,767 $1,683 $1,748 $2,399 $1,681 $1,478 Russia & Bohai Net Loss ($86) ($110) ($71) ($91) ($48) ($27) ($41) ($115) ($12) ($49) Adjusted Net Income $2,245 $3,226 $1,824 $1,543 $1,815 $1,710 $1,789 $2,514 $1,693 $1,527 Average Balances Denominator (Sum Total) $22,247 $21,968 $21,153 $21,549 $21,185 $21,649 $20,968 $21,664 $21,391 $21,430 Capital Projects in Progress, Russia & Bohai Capital Base $2,139 $2,892 $1,981 $2,664 $1,736 $2,177 $1,539 $1,896 $1,423 $1,385 Adjusted Capital Base $20,108 $19,076 $19,172 $18,885 $19,449 $19,472 $19,429 $19,768 $19,968 $20,045 Return on Capital Excluding Growth Investments 11.2% 16.9% 9.5% 8.2% 9.3% 8.8% 9.2% 12.7% 8.5% 7.6% |
