Exhibit 99.3
SUMMARY OF NET INCOME (LOSS) BY SEGMENT
Millions of Dollars
------------------------------------------------------
2003 2004
------------------------------- ----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------- ----------------------
Income (Loss) from Continuing Operations
Before Accounting Changes
U.S. E&P 678 517 546 491 2,232 635
International E&P 447 560 421 500 1,928 622
- ------------------------------------------------------------------------------------------------- ----------------------
Total E&P 1,125 1,077 967 991 4,160 1,257
- ------------------------------------------------------------------------------------------------- ----------------------
Midstream 31 25 31 43 130 55
- ------------------------------------------------------------------------------------------------- ----------------------
U.S. R&M 275 248 416 176 1,115 403
International R&M 114 73 69 26 282 61
- ------------------------------------------------------------------------------------------------- ----------------------
Total R&M 389 321 485 202 1,397 464
- ------------------------------------------------------------------------------------------------- ----------------------
Chemicals (23) 12 7 11 7 39
Emerging Businesses (34) (23) (18) (24) (99) (22)
Corporate and Other (225) (316) (223) (238)(1,002) (190)
- ------------------------------------------------------------------------------------------------- ----------------------
Consolidated 1,263 1,096 1,249 985 4,593 1,603
================================================================================================= ======================
Cumulative Effect of Accounting Changes
U.S. E&P 142 - - - 142 -
International E&P - - - - - -
- ------------------------------------------------------------------------------------------------- ----------------------
Total E&P 142 - - - 142 -
- ------------------------------------------------------------------------------------------------- ----------------------
Midstream - - - - - -
- ------------------------------------------------------------------------------------------------- ----------------------
U.S. R&M (125) - - - (125) -
International R&M - - - - - -
- ------------------------------------------------------------------------------------------------- ----------------------
Total R&M (125) - - - (125) -
- ------------------------------------------------------------------------------------------------- ----------------------
Chemicals - - - - - -
Emerging Businesses - - - - - -
Corporate and Other (112) - - - (112) -
- ------------------------------------------------------------------------------------------------- ----------------------
Consolidated (95) - - - (95) -
================================================================================================= ======================
Income (Loss) from Discontinued Operations
Corporate and Other 53 91 57 36 237 13
================================================================================================= ======================
Net Income (Loss)
U.S. E&P 820 517 546 491 2,374 635
International E&P 447 560 421 500 1,928 622
- ------------------------------------------------------------------------------------------------- ----------------------
Total E&P 1,267 1,077 967 991 4,302 1,257
- ------------------------------------------------------------------------------------------------- ----------------------
Midstream 31 25 31 43 130 55
- ------------------------------------------------------------------------------------------------- ----------------------
U.S. R&M 150 248 416 176 990 403
International R&M 114 73 69 26 282 61
- ------------------------------------------------------------------------------------------------- ----------------------
Total R&M 264 321 485 202 1,272 464
- ------------------------------------------------------------------------------------------------- ----------------------
Chemicals (23) 12 7 11 7 39
Emerging Businesses (34) (23) (18) (24) (99) (22)
Corporate and Other (284) (225) (166) (202) (877) (177)
- ------------------------------------------------------------------------------------------------- ----------------------
Consolidated 1,221 1,187 1,306 1,021 4,735 1,616
================================================================================================= ======================
Page 1 of 10
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
Millions of Dollars
------------------------------------------------------
2003 2004
------------------------------- ----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------- ----------------------
Income from Continuing Operations
Before Income Taxes
U.S. E&P 1,050 803 853 757 3,463 987
International E&P 1,260 967 1,029 941 4,197 1,410
- ------------------------------------------------------------------------------------------------- ----------------------
Total E&P 2,310 1,770 1,882 1,698 7,660 2,397
- ------------------------------------------------------------------------------------------------- ----------------------
Midstream 51 42 50 70 213 86
- ------------------------------------------------------------------------------------------------- ----------------------
U.S. R&M 453 396 639 279 1,767 636
International R&M 150 94 86 16 346 79
- ------------------------------------------------------------------------------------------------- ----------------------
Total R&M 603 490 725 295 2,113 715
- ------------------------------------------------------------------------------------------------- ----------------------
Chemicals (44) 15 10 14 (5) 49
Emerging Businesses (51) (34) (29) (36) (150) (34)
Corporate and Other (300) (502) (328) (364)(1,494) (249)
- ------------------------------------------------------------------------------------------------- ----------------------
Consolidated 2,569 1,781 2,310 1,677 8,337 2,964
================================================================================================= ======================
Income from Continuing Operations
Effective Tax Rates
U.S. E&P 35.4% 35.6% 36.0% 35.1% 35.5% 35.7%
International E&P 64.5% 42.1% 59.1% 46.9% 54.1% 55.9%
- ------------------------------------------------------------------------------------------------- ----------------------
Total E&P 51.3% 39.2% 48.6% 41.6% 45.7% 47.6%
- ------------------------------------------------------------------------------------------------- ----------------------
Midstream 39.2% 40.5% 38.0% 38.6% 39.0% 36.0%
- ------------------------------------------------------------------------------------------------- ----------------------
U.S. R&M 39.3% 37.4% 34.9% 36.9% 36.9% 36.6%
International R&M 24.0% 22.3% 19.8%-62.5% 18.5% 22.8%
- ------------------------------------------------------------------------------------------------- ----------------------
Total R&M 35.5% 34.5% 33.1% 31.5% 33.9% 35.1%
- ------------------------------------------------------------------------------------------------- ----------------------
Chemicals 47.7% 20.0% 30.0% 21.4% 240.0% 20.4%
Emerging Businesses 33.3% 32.4% 37.9% 33.3% 34.0% 35.3%
Corporate and Other 25.0% 37.1% 32.0% 34.6% 32.9% 23.7%
- ------------------------------------------------------------------------------------------------- ----------------------
Consolidated 50.8% 38.5% 45.9% 41.3% 44.9% 45.9%
================================================================================================= ======================
Page 2 of 10
Page 2
of 10
CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX)
Millions of Dollars
--------------------------------------------
2003 2004
----------------------- --------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
----------------------- --------------------
U.S. E&P
Gain (loss) on asset sales - 16 65 - 81 -
Property impairments - (14) (10)(18) (42) (3)
Pending claims and settlements - (20) - - (20) -
- --------------------------------------------------------------------------------------------------- --------------------
Total - (18) 55 (18) 19 (3)
- --------------------------------------------------------------------------------------------------- --------------------
International E&P
Gain (loss) on asset sales - - 33 - 33 56
Property impairments (12) (32) - (18) (62) -
Canada tax law change - - - 95 95 -
Norway Removal Grant Act (1986) repeal* - 87 - - 87 -
Bayu-Undan ownership realignment - 51 - - 51 -
Angola leasehold impairment, net of taxes - - - 12 12 -
- --------------------------------------------------------------------------------------------------- --------------------
Total (12) 106 33 89 216 56
- --------------------------------------------------------------------------------------------------- --------------------
Total E&P (12) 88 88 71 235 53
- --------------------------------------------------------------------------------------------------- --------------------
Midstream
Property impairments - - - - - (12)
- --------------------------------------------------------------------------------------------------- --------------------
Total - - - - - (12)
- --------------------------------------------------------------------------------------------------- --------------------
U.S. R&M
Gain (loss) on asset sales - - - - - 2
Property impairments - - - (1) (1) (5)
Other - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Total - - - (1) (1) (3)
- --------------------------------------------------------------------------------------------------- --------------------
International R&M
Gain (loss) on asset sales - - - - - -
Property impairments - - - - - -
Other - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Total - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Total R&M - - - (1) (1) (3)
- --------------------------------------------------------------------------------------------------- --------------------
Chemicals - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Total - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Emerging Businesses - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Total - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Corporate and Other
Insurance demutualization benefits 34 - - - 34 -
Property impairments - (3) - - (3) -
Merger-related expenses (27)(115) (41)(40)(223) (14)
Premium on early debt retirement (10) (9) - (34) (53) -
Other - - - - - -
- --------------------------------------------------------------------------------------------------- --------------------
Total (3)(127) (41)(74)(245) (14)
- --------------------------------------------------------------------------------------------------- --------------------
Total Company (15) (39) 47 (4) (11) 24
=================================================================================================== ====================
* Net of $21 million of property impairments.
Page 3 of 10
CASH FLOW INFORMATION
Millions of Dollars
-----------------------------------------------------------
2003 2004
----------------------------------- -----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
----------------------------------- -----------------------
Cash Flows from Operating Activities
Income from continuing operations 1,263 1,096 1,249 985 4,593 1,603
DD&A and property impairments 887 1,003 876 971 3,737 949
Dry hole costs and leasehold impairments 40 54 75 131 300 87
Accretion on discounted liabilities 33 35 39 38 145 36
Deferred taxes 243 10 80 68 401 360
Undistributed equity earnings 18 (66) (143) 132 (59) (181)
Net (gain) loss on asset dispositions (56) (28) (142) 15 (211) (82)
Other 56 (94) (88) (202) (328) 70
Net working capital changes 636 16 51 (114) 589 (777)
Discontinued operations - 120 61 8 189 8
- ------------------------------------------------------------------------------------------------ -----------------------
Net Cash Provided by
Operating Activities 3,120 2,146 2,058 2,032 9,356 2,073
- ------------------------------------------------------------------------------------------------ -----------------------
Cash Flows from Investing Activities
Capital expenditures and investments:
E&P (1,012)(1,167)(1,109)(1,220)(4,508) (1,210)
Midstream (2) (2) (2) (4) (10) (3)
R&M (203) (245) (302) (429)(1,179) (215)
Chemicals - - - - - -
Emerging Businesses (66) (98) (60) (60) (284) (28)
Corporate and Other (25) (45) (47) (71) (188) (25)
- ------------------------------------------------------------------------------------------------ -----------------------
Total capital expend. & investments (1,308)(1,557)(1,520)(1,784)(6,169) (1,481)
Acquisitions, net of cash acquired - - - - - -
Acquisitions - adoption of FIN 46 225 - - - 225 -
Proceeds from asset dispositions 125 466 913 1,155 2,659 449
Long-term advances to affiliates and
other investments (28) (8) 38 21 23 (44)
Discontinued operations (26) (5) (28) (177) (236) (1)
- ------------------------------------------------------------------------------------------------ -----------------------
Net Cash Used for Investing Activities (1,012)(1,104) (597) (785)(3,498) (1,077)
- ------------------------------------------------------------------------------------------------ -----------------------
Cash Flows from Financing Activities
Net issuance (repayment) of debt (1,569) (709)(1,514)(1,019)(4,811) (722)
Issuance of stock 19 14 20 55 108 112
Dividends (271) (272) (272) (292)(1,107) (294)
Other (8) 19 64 36 111 89
- ------------------------------------------------------------------------------------------------ -----------------------
Net Cash Provided by (Used for)
Financing Activities (1,829) (948)(1,702)(1,220)(5,699) (815)
- ------------------------------------------------------------------------------------------------ -----------------------
Effect of Exchange Rate Changes 57 13 (26) (20) 24 (12)
- ------------------------------------------------------------------------------------------------ -----------------------
Net Change in Cash
and Cash Equivalents 336 107 (267) 7 183 169
Cash and cash equivalents
at beginning of period 307 643 750 483 307 490
- ------------------------------------------------------------------------------------------------ -----------------------
Cash and Cash Equivalents
at End of Period 643 750 483 490 490 659
================================================================================================ =======================
Page 4 of 10
TOTAL E&P
2003 2004
------------------------------ ----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------
E&P Net Income ($ Millions) 1,267 1,077 967 991 4,302 1,257
================================================================================================= ======================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 1,626 1,641 1,561 1,611 1,609 1,611
- ------------------------------------------------------------------------------------------------- ----------------------
Crude Oil and Condensate (MB/D)
Consolidated 880 850 793 806 832 828
Equity affiliates 55 117 120 116 102 113
- ------------------------------------------------------------------------------------------------- ----------------------
Total 935 967 913 922 934 941
================================================================================================= ======================
Sales of crude oil produced (MB/D) 911 996 917 921 936 928
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas Liquids (MB/D) 71 72 62 72 69 76
- ------------------------------------------------------------------------------------------------------------------------
Natural Gas (MMCF/D)
Consolidated 3,605 3,485 3,373 3,581 3,510 3,415
Equity affiliates 12 11 11 12 12 9
- ------------------------------------------------------------------------------------------------- ----------------------
Total 3,617 3,496 3,384 3,593 3,522 3,424
================================================================================================= ======================
Canadian Syncrude (MB/D) 17 19 22 18 19 23
- ------------------------------------------------------------------------------------------------- ----------------------
Industry Prices (Platt's)
Crude Oil ($/bbl)
WTI spot 34.06 29.02 30.18 31.17 31.11 35.23
Brent dated 31.51 26.03 28.41 29.42 28.84 31.95
Natural Gas--Henry Hub 1st of month ($/mcf) 6.58 5.40 4.97 4.60 5.39 5.69
- ------------------------------------------------------------------------------------------------- ----------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated 31.27 26.33 28.15 28.43 28.54 32.08
Equity affiliates 20.97 16.85 19.90 17.86 18.58 18.68
Total 30.73 25.19 27.00 27.24 27.47 30.35
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas Liquids ($/bbl) 24.65 19.73 20.10 23.36 21.95 25.43
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas ($/mcf)
Consolidated 4.49 3.92 3.80 4.07 4.07 4.48
Equity affiliates 4.82 4.89 4.12 3.96 4.44 3.91
Total 4.49 3.93 3.80 4.07 4.07 4.48
- ------------------------------------------------------------------------------------------------- ----------------------
Exploration Charges ($ Millions)
Dry Holes 20 30 39 78 167 67
Lease Impairments 20 24 36 53 133 20
- ------------------------------------------------------------------------------------------------- ----------------------
Total Non-Cash Charges 40 54 75 131 300 87
Other (G&G and Lease Rentals) 76 88 57 80 301 56
- ------------------------------------------------------------------------------------------------- ----------------------
Total Exploration Charges 116 142 132 211 601 143
================================================================================================= ======================
Depreciation, Depletion and
Amortization ($ Millions) 662 652 653 695 2,662 704
- ------------------------------------------------------------------------------------------------- ----------------------
Page 5 of 10
U.S. E&P
2003 2004
------------------------------ ----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------
U.S. E&P Net Income ($ Millions) 820 517 546 491 2,374 635
================================================================================================= ======================
Alaska ($ Millions) 508 302 302 333 1,445 403
- ------------------------------------------------------------------------------------------------- ----------------------
Lower 48 ($ Millions) 312 215 244 158 929 232
- ------------------------------------------------------------------------------------------------- ----------------------
Production
Total U.S. (MBOE/D) 700 683 651 664 674 659
- ------------------------------------------------------------------------------------------------- ----------------------
Crude Oil and Condensate (MB/D)
Alaska 337 331 314 318 325 320
Lower 48 60 57 51 50 54 53
- ------------------------------------------------------------------------------------------------- ----------------------
Total 397 388 365 368 379 373
================================================================================================= ======================
Sales of crude oil produced (MB/D) 391 389 369 372 380 373
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas Liquids (MB/D)*
Alaska 26 23 19 24 23 26
Lower 48 22 26 25 27 25 24
- ------------------------------------------------------------------------------------------------- ----------------------
Total 48 49 44 51 48 50
================================================================================================= ======================
*Includes reinjection volumes sold lease-to-lease: 15 14 13 16 15 16
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas (MMCF/D)
Alaska 189 162 180 205 184 185
Lower 48 1,338 1,311 1,271 1,264 1,295 1,233
- ------------------------------------------------------------------------------------------------- ----------------------
Total 1,527 1,473 1,451 1,469 1,479 1,418
================================================================================================= ======================
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Alaska
North Slope 25.95 21.70 22.82 23.17 23.41 28.00
- ------------------------------------------------------------------------------------------------- ----------------------
West Coast 31.47 27.19 28.31 28.51 28.87 32.93
- ------------------------------------------------------------------------------------------------- ----------------------
Lower 48 31.48 27.34 27.94 28.02 28.76 31.86
- ------------------------------------------------------------------------------------------------- ----------------------
Total U.S. 31.47 27.21 28.26 28.45 28.85 32.78
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas Liquids ($/bbl)
Alaska 31.32 27.24 28.42 28.82 29.04 32.93
- ------------------------------------------------------------------------------------------------- ----------------------
Lower 48 22.13 17.77 19.71 20.81 20.02 24.19
- ------------------------------------------------------------------------------------------------- ----------------------
Total U.S. 24.96 20.25 21.31 22.85 22.30 26.80
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas ($/mcf)
Alaska 1.97 1.88 1.33 1.88 1.76 2.54
- ------------------------------------------------------------------------------------------------- ----------------------
Lower 48 5.47 4.72 4.56 4.27 4.76 4.91
- ------------------------------------------------------------------------------------------------- ----------------------
Total U.S. 5.34 4.58 4.41 4.13 4.62 4.79
- ------------------------------------------------------------------------------------------------- ----------------------
Kenai, Alaska LNG Sales
Volume (MMCF/D) 130 91 121 140 121 118
- ------------------------------------------------------------------------------------------------- ----------------------
Sales price per MCF 4.38 4.56 4.46 4.44 4.45 4.51
- ------------------------------------------------------------------------------------------------- ----------------------
U.S. Exploration Charges ($ Millions)
Dry Holes 16 3 9 48 76 32
Lease Impairments 13 12 10 12 47 11
- ------------------------------------------------------------------------------------------------- ----------------------
Total Non-Cash Charges 29 15 19 60 123 43
Other (G&G and Lease Rentals) 28 22 23 8 81 15
- ------------------------------------------------------------------------------------------------- ----------------------
Total U.S. Exploration Charges 57 37 42 68 204 58
================================================================================================= ======================
Alaska Only 25 10 11 9 55 17
- ------------------------------------------------------------------------------------------------- ----------------------
Depreciation, Depletion and
Amortization ($ Millions)
Alaska 124 135 130 127 516 119
Lower 48 151 150 156 134 591 146
- ------------------------------------------------------------------------------------------------- ----------------------
Total U.S. 275 285 286 261 1,107 265
================================================================================================= ======================
Page 6 of 10
INTERNATIONAL E&P
2003 2004
------------------------------ ----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------
International E&P
Net Income ($ Millions) 447 560 421 500 1,928 622
================================================================================================= ======================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 926 958 910 947 935 952
- ------------------------------------------------------------------------------------------------- ----------------------
Crude Oil and Condensate (MB/D)
Consolidated
Norway 226 214 207 205 213 215
United Kingdom 87 82 67 72 77 67
Canada 33 31 29 28 30 27
China 23 27 25 28 26 32
Indonesia 21 17 16 10 16 15
Vietnam 16 15 11 22 16 31
Timor Sea 3 3 3 3 3 5
Other 74 73 70 70 72 63
Equity affiliates 55 117 120 116 102 113
- ------------------------------------------------------------------------------------------------- ----------------------
Total 538 579 548 554 555 568
================================================================================================= ======================
Sales of crude oil produced (MB/D) 520 607 548 549 556 555
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas Liquids (MB/D)
Norway 8 7 7 8 7 9
Canada 11 11 9 10 10 10
Other 4 5 2 3 4 7
- ------------------------------------------------------------------------------------------------- ----------------------
Total 23 23 18 21 21 26
================================================================================================= ======================
Natural Gas (MMCF/D)
Consolidated
Norway 305 273 216 307 275 319
United Kingdom 1,002 952 853 954 940 879
Canada 436 424 448 431 435 428
Timor Sea 61 61 61 56 60 40
Indonesia 224 246 275 275 255 248
Vietnam - - - 12 3 17
Other 50 56 69 77 63 66
Equity affiliates 12 11 11 12 12 9
- ------------------------------------------------------------------------------------------------- ----------------------
Total 2,090 2,023 1,933 2,124 2,043 2,006
================================================================================================= ======================
Canadian Syncrude (MB/D) 17 19 22 18 19 23
- ------------------------------------------------------------------------------------------------- ----------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated
Norway 32.72 26.28 29.08 29.08 29.24 32.13
United Kingdom 30.11 24.34 28.32 28.29 27.70 31.27
Canada 28.40 23.61 24.15 23.71 25.06 28.95
China 28.87 26.51 26.38 28.56 27.55 29.91
Indonesia 29.35 24.54 26.32 26.52 26.88 32.21
Vietnam 30.26 27.54 27.12 30.88 29.21 31.76
Timor Sea 32.43 27.38 28.25 29.75 29.37 35.49
Other 30.16 25.44 27.42 27.94 27.68 30.89
Equity affiliates 20.97 16.85 19.90 17.86 18.58 18.68
Total 30.17 23.90 26.15 26.42 26.53 28.71
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas Liquids ($/bbl)
Norway 21.85 18.13 18.50 22.96 20.27 24.34
Canada 26.11 20.78 23.55 25.27 23.93 26.38
Other 23.40 16.73 14.18 25.13 16.48 18.43
Total 24.22 18.96 18.23 24.35 21.39 23.53
- ------------------------------------------------------------------------------------------------- ----------------------
Natural Gas ($/mcf)
Consolidated
Norway 3.66 3.86 4.21 4.09 3.94 4.37
United Kingdom 3.55 3.17 2.88 4.48 3.54 4.43
Canada 5.42 4.34 4.17 4.02 4.48 4.88
Timor Sea 0.43 0.42 0.45 0.42 0.43 0.43
Indonesia 4.66 4.16 4.35 4.21 4.33 4.38
Vietnam - - - 1.04 1.04 1.10
Other 0.54 0.54 0.54 0.68 0.58 0.66
Equity affiliates 4.82 4.89 4.12 3.96 4.44 3.91
Total 3.92 3.48 3.38 4.03 3.71 4.28
- ------------------------------------------------------------------------------------------------- ----------------------
International Exploration Charges ($ Millions)
Dry Holes 4 27 30 30 91 35
Lease Impairments 7 12 26 41 86 9
- ------------------------------------------------------------------------------------------------- ----------------------
Total Non-Cash Charges 11 39 56 71 177 44
Other (G&G and Lease Rentals) 48 66 34 72 220 41
- ------------------------------------------------------------------------------------------------- ----------------------
Total International Exploration Charges 59 105 90 143 397 85
================================================================================================= ======================
Depreciation, Depletion and
Amortization ($ Millions) 387 367 367 434 1,555 439
- ------------------------------------------------------------------------------------------------- ----------------------
Page 7 of 10
R&M
2003 2004
------------------------------ ----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------
R&M Net Income ($ Millions) 264 321 485 202 1,272 464
================================================================================================= ======================
United States ($ Millions) 150 248 416 176 990 403
- ------------------------------------------------------------------------------------------------- ----------------------
International ($ Millions) 114 73 69 26 282 61
- ------------------------------------------------------------------------------------------------- ----------------------
Market Indicators
U.S. East Coast Crack Spread ($/bbl) 6.16 3.46 6.37 4.98 5.24 6.87
U.S. Gulf Coast Crack Spread ($/bbl) 5.64 3.65 5.38 3.72 4.60 6.36
U.S. Group Central Crack Spread ($/bbl) 6.12 6.96 8.32 5.34 6.69 6.91
U.S. West Coast Crack Spread ($/bbl) 12.79 11.39 14.00 11.44 12.41 16.10
U.S. Weighted 3:2:1 Crack Spread ($/bbl) 6.99 5.86 7.84 5.67 6.59 8.39
NW Europe Crack Spread ($/bbl) 5.68 3.17 3.11 3.20 3.79 2.56
Singapore 3:2:1Crack Spread ($/bbl) 8.16 4.65 5.64 7.12 6.39 10.33
U.S. Wholesale Gasoline Mktg Mrgn ($/bbl) 1.53 2.36 2.15 1.45 1.87 0.69
- ------------------------------------------------------------------------------------------------- ----------------------
Realized Margins
Refining Margin ($/bbl)
U.S. 6.50 5.34 6.39 5.58 5.94 7.30
International 6.00 3.67 4.38 3.61 4.44 5.51
- ------------------------------------------------------------------------------------------------- ----------------------
Marketing Margin ($/bbl)
U.S. 1.86 2.62 2.17 1.75 2.10 1.08
International 7.09 9.06 7.82 6.41 7.59 6.50
- ------------------------------------------------------------------------------------------------- ----------------------
Depreciation, Depletion and
Amortization ($ Millions) 167 174 174 174 689 186
- ------------------------------------------------------------------------------------------------- ----------------------
Turnaround Expense ($ Millions) 60 38 19 63 180 59
- ------------------------------------------------------------------------------------------------- ----------------------
Eastern U.S.
Crude Oil Charge Input (MB/D) 415 435 428 421 425 413
Total Charge Input (MB/D) 466 488 468 442 466 438
Crude Oil Capacity Utilization (%) 97% 101% 100% 98% 99% 96%
Clean Product Yield (%) 88% 84% 86% 88% 86% 87%
- ------------------------------------------------------------------------------------------------- ----------------------
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 668 702 708 680 690 699
Total Charge Input (MB/D) 771 797 803 782 788 774
Crude Oil Capacity Utilization (%) 93% 98% 99% 95% 96% 97%
Clean Product Yield (%) 82% 78% 80% 78% 79% 79%
- ------------------------------------------------------------------------------------------------- ----------------------
Central U.S.
Crude Oil Charge Input (MB/D) 573 632 556 584 586 601
Total Charge Input (MB/D) 601 654 584 614 613 633
Crude Oil Capacity Utilization (%) 91% 101% 88% 93% 93% 96%
Clean Product Yield (%) 84% 82% 81% 86% 83% 83%
- ------------------------------------------------------------------------------------------------- ----------------------
Western U.S.
Crude Oil Charge Input (MB/D) 352 359 391 389 373 392
Total Charge Input (MB/D) 365 374 408 410 390 409
Crude Oil Capacity Utilization (%) 90% 91% 100% 99% 95% 100%
Clean Product Yield (%) 82% 81% 83% 83% 82% 81%
- ------------------------------------------------------------------------------------------------- ----------------------
TOTAL UNITED STATES
Crude Oil Charge Input (MB/D) 2,008 2,128 2,083 2,074 2,074 2,105
Total Charge Input (MB/D) 2,203 2,313 2,263 2,248 2,257 2,254
Crude Oil Capacity Utilization (%) 93% 98% 96% 96% 96% 97%
Clean Product Yield (%) 84% 81% 82% 83% 82% 82%
- ------------------------------------------------------------------------------------------------- ----------------------
Refined Products Production (MB/D)
Gasoline 1,060 1,077 1,070 1,061 1,067 1,054
Distillates 590 615 591 591 597 604
Aviation Fuel 190 173 200 195 189 168
Other 414 492 461 423 448 429
- ------------------------------------------------------------------------------------------------- ----------------------
Total 2,254 2,357 2,322 2,270 2,301 2,255
================================================================================================= ======================
Petroleum Products Sales (MB/D)
Gasoline 1,331 1,381 1,398 1,365 1,369 1,315
Distillates 600 590 580 530 575 570
Aviation Fuel 164 164 197 193 180 178
Other 509 493 497 474 492 517
- ------------------------------------------------------------------------------------------------- ----------------------
Total 2,604 2,628 2,672 2,562 2,616 2,580
================================================================================================= ======================
Page 8 of 10
R&M (continued)
2003 2004
------------------------------ ----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------
International - Consolidated - United Kingdom and Ireland
Crude Oil Charge Input (MB/D) 262 244 258 253 254 254
Total Charge Input (MB/D) 301 286 296 280 291 299
Crude Oil Capacity Utilization (%) 86% 80% 84% 83% 83% 82%
Clean Product Yield (%) 84% 83% 84% 84% 84% 84%
- ------------------------------------------------------------------------------------------------- ----------------------
International - Equity Affiliates - Net Share*
Crude Oil Charge Input (MB/D) 134 132 129 128 131 120
Total Charge Input (MB/D) 137 135 134 131 134 121
Crude Oil Capacity Utilization (%) 98% 97% 95% 94% 96% 87%
Clean Product Yield (%) 82% 83% 81% 82% 82% 82%
- ------------------------------------------------------------------------------------------------- ----------------------
TOTAL INTERNATIONAL
Crude Oil Charge Input (MB/D) 396 376 387 381 385 374
Total Charge Input (MB/D) 438 421 430 411 425 420
Crude Oil Capacity Utilization (%) 90% 85% 88% 86% 87% 84%
Clean Product Yield (%) 83% 83% 83% 84% 83% 84%
- ------------------------------------------------------------------------------------------------- ----------------------
Refined Products Production (MB/D)
Gasoline 142 132 139 125 134 124
Distillates 183 177 185 154 175 181
Aviation Fuel 24 15 19 21 20 24
Other 87 83 70 95 83 81
- ------------------------------------------------------------------------------------------------- ----------------------
Total 436 407 413 395 412 410
================================================================================================= ======================
Petroleum Products Sales (MB/D)
Gasoline 202 190 181 171 186 185
Distillates 181 199 192 172 186 228
Aviation Fuel 5 7 14 7 8 6
Other 40 52 54 53 50 82
- ------------------------------------------------------------------------------------------------- ----------------------
Total 428 448 441 403 430 501
================================================================================================= ======================
Worldwide - Including Net Share of Equity Affiliates
Crude Oil Charge Input (MB/D) 2,404 2,504 2,470 2,455 2,459 2,479
Total Charge Input (MB/D) 2,641 2,734 2,693 2,659 2,682 2,674
Crude Oil Capacity Utilization (%) 92% 96% 95% 94% 94% 95%
Clean Product Yield (%) 84% 81% 82% 83% 83% 82%
- ------------------------------------------------------------------------------------------------- ----------------------
Refined Products Production (MB/D)
Gasoline 1,202 1,209 1,209 1,186 1,201 1,178
Distillates 773 792 776 745 772 785
Aviation Fuel 214 188 219 216 209 192
Other 501 575 531 518 531 510
- ------------------------------------------------------------------------------------------------- ----------------------
Total 2,690 2,764 2,735 2,665 2,713 2,665
================================================================================================= ======================
Petroleum Products Sales (MB/D)
Gasoline 1,533 1,571 1,579 1,536 1,555 1,500
Distillates 781 789 772 702 761 798
Aviation Fuel 169 171 211 200 188 184
Other 549 545 551 527 542 599
- ------------------------------------------------------------------------------------------------- ----------------------
Total 3,032 3,076 3,113 2,965 3,046 3,081
================================================================================================= ======================
* Represents 18.75 percent interest in a refinery complex at Karlsruhe,
Germany; 16.33 percent interest in two refineries in Kralupy and Litvinov,
Czech Republic; and 47 percent interest in a refinery at Melaka, Malaysia.
Page 9 of 10
MIDSTREAM
2003 2004
----------------------------------- -----------------------
1st Qtr2nd Qtr3rd Qtr4th Qtr YTD 1st Qtr2nd 3rd 4th YTD
Qtr Qtr Qtr
----------------------------------- -----------------------
Midstream Net Income ($ Millions) 31 25 31 43 130 55
=============================================================================================== =======================
U.S. Equity Affiliate ($ Millions)* 13 23 18 18 72 33
- ----------------------------------------------------------------------------------------------- -----------------------
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States 51 53 50 54 52 54
International 47 35 47 50 45 46
Equity Affiliates
United States* 114 110 111 110 111 109
International 10 11 12 11 11 12
- ----------------------------------------------------------------------------------------------- -----------------------
Total 222 209 220 225 219 221
=============================================================================================== =======================
* Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS).
Natural Gas Liquids Fractionated (MB/D)
United States 168 158 172 168 167 158
- ----------------------------------------------------------------------------------------------- -----------------------
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated 25.59 20.99 20.94 23.14 22.67 25.68
DEFS 24.53 20.53 20.67 22.76 22.12 24.81
- ----------------------------------------------------------------------------------------------- -----------------------
* Prices are based on index prices from the Mont Belvieu and Conway market
hubs that are weighted by natural gas liquids component and location mix.
Depreciation, Depletion and
Amortization ($ Millions) 14 14 13 13 54 13
- ----------------------------------------------------------------------------------------------- -----------------------
EMERGING BUSINESSES
2003 2004
----------------------------------- -----------------------
1st Qtr2nd Qtr3rd Qtr4th Qtr YTD 1st Qtr2nd 3rd 4th YTD
Qtr Qtr Qtr
----------------------------------- -----------------------
Emerging Businesses
Net Income (Loss) ($ Millions)* (34) (23) (18) (24) (99) (22)
=============================================================================================== =======================
Detail of Net Income (Loss) ($ Millions)
Technology Solutions (5) (6) (5) (4) (20) (4)
Gas-to-Liquids (20) (13) (7) (10) (50) (9)
Power 1 (1) (3) (2) (5) (4)
Other (10) (3) (3) (8) (24) (5)
- ----------------------------------------------------------------------------------------------- -----------------------
Total (34) (23) (18) (24) (99) (22)
=============================================================================================== =======================
CORPORATE AND OTHER
2003 2004
----------------------------------- -----------------------
1st Qtr2nd Qtr3rd Qtr4th Qtr YTD 1st Qtr2nd 3rd 4th YTD
Qtr Qtr Qtr
----------------------------------- -----------------------
Corporate and Other
Net Income (Loss) ($ Millions) (284) (225) (166) (202) (877) (177)
=============================================================================================== =======================
Detail of Net Income (Loss) ($ Millions)
Net interest expense (190) (145) (134) (163) (632) (104)
Corporate overhead (30) (43) (33) (67) (173) (55)
Discontinued operations 53 91 57 36 237 13
Merger-related costs (27) (115) (41) (40) (223) (14)
Accounting change (112) - - - (112) -
Other 22 (13) (15) 32 26 (17)
- ----------------------------------------------------------------------------------------------- -----------------------
Total (284) (225) (166) (202) (877) (177)
=============================================================================================== =======================
Before-Tax Net Interest Expense ($ Millions)
Interest and financing expense (339) (306) (314) (287)(1,246) (279)
Capitalized interest 73 78 98 77 326 115
Interest revenue 29 31 27 17 104 34
Premium on early debt retirement (12) (11) - (45) (68) -
- ----------------------------------------------------------------------------------------------- -----------------------
(249) (208) (189) (238) (884) (130)
=============================================================================================== =======================
Debt
Total Debt ($ Millions) 21,007 20,254 18,739 17,780 17,780 17,109
Debt-to-Capital Ratio 40% 38% 36% 34% 34% 32%
- ----------------------------------------------------------------------------------------------- -----------------------
Page 10 of 10