(Mark One)
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[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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For the Quarterly Period Ended March 31, 2014
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from _____ to _____
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Delaware
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25-0996816
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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INDEX
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Page
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||
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Three Months Ended
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||||||
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March 31,
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||||||
(In millions, except per share data)
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2014
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2013
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||||
Revenues and other income:
|
|
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||||
Sales and other operating revenues, including related party
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$
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2,830
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$
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3,354
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Marketing revenues
|
540
|
|
|
430
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Income from equity method investments
|
137
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|
|
118
|
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||
Net gain on disposal of assets
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2
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|
|
109
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Other income
|
20
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|
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9
|
|
||
Total revenues and other income
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3,529
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4,020
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Costs and expenses:
|
|
|
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Production
|
613
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564
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Marketing, including purchases from related parties
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540
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429
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Other operating
|
114
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|
|
111
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Exploration
|
76
|
|
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463
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Depreciation, depletion and amortization
|
697
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|
|
720
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||
Impairments
|
17
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|
|
38
|
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Taxes other than income
|
98
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|
84
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|
||
General and administrative
|
192
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172
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Total costs and expenses
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2,347
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|
|
2,581
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||
Income from operations
|
1,182
|
|
|
1,439
|
|
||
Net interest and other
|
(52
|
)
|
|
(72
|
)
|
||
Income from continuing operations before income taxes
|
1,130
|
|
|
1,367
|
|
||
Provision for income taxes
|
590
|
|
|
987
|
|
||
Income from continuing operations
|
540
|
|
|
380
|
|
||
Discontinued operations
|
609
|
|
|
3
|
|
||
Net income
|
$
|
1,149
|
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|
$
|
383
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Per Share Data
|
|
|
|
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||
Basic:
|
|
|
|
|
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||
Income from continuing operations
|
$
|
0.78
|
|
|
$
|
0.54
|
|
Discontinued operations
|
$
|
0.88
|
|
|
$
|
—
|
|
Net income
|
$
|
1.66
|
|
|
$
|
0.54
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|
Diluted:
|
|
|
|
|
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||
Income from continuing operations
|
$
|
0.77
|
|
|
$
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0.54
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Discontinued operations
|
$
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0.88
|
|
|
$
|
—
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Net income
|
$
|
1.65
|
|
|
$
|
0.54
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Dividends
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$
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0.19
|
|
|
$
|
0.17
|
|
Weighted average shares:
|
|
|
|
|
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Basic
|
693
|
|
|
708
|
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Diluted
|
696
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|
|
712
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Three Months Ended
|
||||||
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March 31,
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||||||
(In millions)
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2014
|
|
2013
|
||||
Net income
|
$
|
1,149
|
|
|
$
|
383
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
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Postretirement and postemployment plans
|
|
|
|
|
|
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Change in actuarial loss and other
|
(30
|
)
|
|
13
|
|
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Income tax benefit (provision)
|
10
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(5
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)
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Postretirement and postemployment plans, net of tax
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(20
|
)
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8
|
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Foreign currency translation and other
|
|
|
|
|
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Unrealized loss
|
—
|
|
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(1
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)
|
||
Income tax benefit
|
—
|
|
|
—
|
|
||
Foreign currency translation and other, net of tax
|
—
|
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|
(1
|
)
|
||
Other comprehensive income (loss)
|
(20
|
)
|
|
7
|
|
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Comprehensive income
|
$
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1,129
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|
$
|
390
|
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March 31,
|
|
December 31,
|
||||
(In millions, except per share data)
|
2014
|
|
2013
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,964
|
|
|
$
|
264
|
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Receivables
|
2,222
|
|
|
2,134
|
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Inventories
|
405
|
|
|
364
|
|
||
Other current assets
|
196
|
|
|
213
|
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Total current assets
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4,787
|
|
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2,975
|
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||
Equity method investments
|
1,223
|
|
|
1,201
|
|
||
Property, plant and equipment, less accumulated depreciation,
|
|
|
|
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depletion and amortization of $22,336 and $21,895
|
28,426
|
|
|
28,145
|
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Goodwill
|
499
|
|
|
499
|
|
||
Other noncurrent assets
|
1,216
|
|
|
2,800
|
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Total assets
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$
|
36,151
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$
|
35,620
|
|
Liabilities
|
|
|
|
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Current liabilities:
|
|
|
|
|
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Commercial paper
|
$
|
—
|
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|
$
|
135
|
|
Accounts payable
|
2,382
|
|
|
2,206
|
|
||
Payroll and benefits payable
|
180
|
|
|
240
|
|
||
Accrued taxes
|
1,476
|
|
|
1,445
|
|
||
Other current liabilities
|
208
|
|
|
239
|
|
||
Long-term debt due within one year
|
68
|
|
|
68
|
|
||
Total current liabilities
|
4,314
|
|
|
4,333
|
|
||
Long-term debt
|
6,392
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|
6,394
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||
Deferred tax liabilities
|
2,517
|
|
|
2,492
|
|
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Defined benefit postretirement plan obligations
|
660
|
|
|
604
|
|
||
Asset retirement obligations
|
2,062
|
|
|
2,009
|
|
||
Deferred credits and other liabilities
|
401
|
|
|
444
|
|
||
Total liabilities
|
16,346
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|
|
16,276
|
|
||
Commitments and contingencies
|
|
|
|
|
|
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Stockholders’ Equity
|
|
|
|
|
|
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Preferred stock – no shares issued or outstanding (no par value,
|
|
|
|
||||
26 million shares authorized)
|
—
|
|
|
—
|
|
||
Common stock:
|
|
|
|
|
|
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Issued – 770 million and 770 million shares (par value $1 per share,
|
|
|
|
||||
1.1 billion shares authorized)
|
770
|
|
|
770
|
|
||
Securities exchangeable into common stock – no shares issued or
|
|
|
|
|
|
||
outstanding (no par value, 29 million shares authorized)
|
—
|
|
|
—
|
|
||
Held in treasury, at cost – 89 million and 73 million shares
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(3,445
|
)
|
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(2,903
|
)
|
||
Additional paid-in capital
|
6,599
|
|
|
6,592
|
|
||
Retained earnings
|
16,151
|
|
|
15,135
|
|
||
Accumulated other comprehensive loss
|
(270
|
)
|
|
(250
|
)
|
||
Total stockholders' equity
|
19,805
|
|
|
19,344
|
|
||
Total liabilities and stockholders' equity
|
$
|
36,151
|
|
|
$
|
35,620
|
|
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Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
Increase (decrease) in cash and cash equivalents
|
|
|
|
||||
Operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
1,149
|
|
|
$
|
383
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Discontinued operations
|
(609
|
)
|
|
(3
|
)
|
||
Deferred income taxes
|
105
|
|
|
45
|
|
||
Depreciation, depletion and amortization
|
697
|
|
|
720
|
|
||
Impairments
|
17
|
|
|
38
|
|
||
Pension and other postretirement benefits, net
|
21
|
|
|
7
|
|
||
Exploratory dry well costs and unproved property impairments
|
43
|
|
|
404
|
|
||
Net gain on disposal of assets
|
(2
|
)
|
|
(109
|
)
|
||
Equity method investments, net
|
(43
|
)
|
|
(48
|
)
|
||
Changes in:
|
|
|
|
|
|||
Current receivables
|
(46
|
)
|
|
39
|
|
||
Inventories
|
(41
|
)
|
|
(17
|
)
|
||
Current accounts payable and accrued liabilities
|
129
|
|
|
(71
|
)
|
||
All other operating, net
|
(28
|
)
|
|
115
|
|
||
Net cash provided by continuing operations
|
1,392
|
|
|
1,503
|
|
||
Net cash provided by discontinued operations
|
78
|
|
|
25
|
|
||
Net cash provided by operating activities
|
1,470
|
|
|
1,528
|
|
||
Investing activities:
|
|
|
|
|
|
||
Additions to property, plant and equipment
|
(1,051
|
)
|
|
(1,321
|
)
|
||
Disposal of assets
|
2,123
|
|
|
312
|
|
||
Investments - return of capital
|
20
|
|
|
18
|
|
||
Investing activities of discontinued operations
|
(49
|
)
|
|
(54
|
)
|
||
All other investing, net
|
5
|
|
|
8
|
|
||
Net cash provided by (used in) investing activities
|
1,048
|
|
|
(1,037
|
)
|
||
Financing activities:
|
|
|
|
|
|
||
Commercial paper, net
|
(135
|
)
|
|
(200
|
)
|
||
Debt repayments
|
—
|
|
|
(114
|
)
|
||
Purchases of common stock
|
(551
|
)
|
|
—
|
|
||
Dividends paid
|
(133
|
)
|
|
(120
|
)
|
||
All other financing, net
|
9
|
|
|
21
|
|
||
Net cash used in financing activities
|
(810
|
)
|
|
(413
|
)
|
||
Effect of exchange rate changes on cash
|
(8
|
)
|
|
6
|
|
||
Net increase in cash and cash equivalents
|
1,700
|
|
|
84
|
|
||
Cash and cash equivalents at beginning of period
|
264
|
|
|
684
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,964
|
|
|
$
|
768
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2014
|
|
2013
|
||||||||||||
(In millions, except per share data)
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
Income from continuing operations
|
$
|
540
|
|
|
$
|
540
|
|
|
$
|
380
|
|
|
$
|
380
|
|
Discontinued operations
|
609
|
|
|
609
|
|
|
3
|
|
|
3
|
|
||||
Net income
|
$
|
1,149
|
|
|
$
|
1,149
|
|
|
$
|
383
|
|
|
$
|
383
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
693
|
|
|
693
|
|
|
708
|
|
|
708
|
|
||||
Effect of dilutive securities
|
—
|
|
|
3
|
|
|
—
|
|
|
4
|
|
||||
Weighted average common shares, including
|
|
|
|
|
|
|
|
||||||||
dilutive effect
|
693
|
|
|
696
|
|
|
708
|
|
|
712
|
|
||||
Per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations
|
$
|
0.78
|
|
|
$
|
0.77
|
|
|
$
|
0.54
|
|
|
$
|
0.54
|
|
Discontinued operations
|
$
|
0.88
|
|
|
$
|
0.88
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income
|
$
|
1.66
|
|
|
$
|
1.65
|
|
|
$
|
0.54
|
|
|
$
|
0.54
|
|
|
Three Months Ended March 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
Revenues applicable to discontinued operations
|
$
|
58
|
|
|
$
|
86
|
|
Pretax income from discontinued operations
(a)
|
$
|
51
|
|
|
$
|
41
|
|
Pretax gain on disposition of discontinued operations
|
$
|
470
|
|
|
$
|
—
|
|
(In millions)
|
December 31, 2013
|
||
Other current assets
|
$
|
41
|
|
Other noncurrent assets
|
1,647
|
|
|
Total assets
|
$
|
1,688
|
|
Other current liabilities
|
$
|
25
|
|
Deferred credits and other liabilities
|
43
|
|
|
Total liabilities
|
$
|
68
|
|
|
|
•
|
North America E&P ("N.A. E&P") – explores for, produces and markets liquid hydrocarbons and natural gas in North America;
|
•
|
International E&P ("Int'l E&P") – explores for, produces and markets liquid hydrocarbons and natural gas outside of North America and produces and markets products manufactured from natural gas, such as liquefied natural gas ("LNG")and methanol, in Equatorial Guinea; and
|
•
|
Oil Sands Mining (“OSM”) – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014
|
||||||||||||||||||
|
|
|
Not Allocated
|
|
|
||||||||||||||
(In millions)
|
N.A. E&P
|
|
Int'l E&P
|
|
OSM
|
|
to Segments
|
|
Total
|
||||||||||
Sales and other operating revenues
|
$
|
1,392
|
|
|
$
|
1,061
|
|
|
$
|
377
|
|
|
$
|
—
|
|
|
$
|
2,830
|
|
Marketing revenues
|
440
|
|
|
69
|
|
|
31
|
|
|
—
|
|
|
540
|
|
|||||
Total revenues
|
1,832
|
|
|
1,130
|
|
|
408
|
|
|
—
|
|
|
3,370
|
|
|||||
Income from equity method investments
|
—
|
|
|
137
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|||||
Net gain on disposal of assets and other income
|
3
|
|
|
17
|
|
|
2
|
|
|
—
|
|
|
22
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Production expenses
|
211
|
|
|
171
|
|
|
231
|
|
|
—
|
|
|
613
|
|
|||||
Marketing costs
|
440
|
|
|
69
|
|
|
31
|
|
|
—
|
|
|
540
|
|
|||||
Exploration expenses
|
57
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|||||
Depreciation, depletion and amortization
|
515
|
|
|
125
|
|
|
45
|
|
|
12
|
|
|
697
|
|
|||||
Impairments
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
Other expenses
(a)
|
110
|
|
|
54
|
|
|
13
|
|
|
129
|
|
(c)
|
306
|
|
|||||
Taxes other than income
|
90
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
98
|
|
|||||
Net interest and other
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
52
|
|
|||||
Income tax provision (benefit)
|
153
|
|
|
512
|
|
|
21
|
|
|
(96
|
)
|
|
590
|
|
|||||
Segment income/Income from continuing operations
|
$
|
242
|
|
|
$
|
331
|
|
|
$
|
64
|
|
|
$
|
(97
|
)
|
|
$
|
540
|
|
Capital expenditures
(b)
|
$
|
867
|
|
|
$
|
171
|
|
|
$
|
68
|
|
|
$
|
3
|
|
|
$
|
1,109
|
|
(a)
|
Includes other operating expenses and general and administrative expenses.
|
(b)
|
Includes accruals.
|
(c)
|
Includes pension settlement loss of $63 million.
|
|
Three Months Ended March 31, 2013
|
||||||||||||||||||
|
|
|
Not Allocated
|
|
|
||||||||||||||
(In millions)
|
N.A. E&P
|
|
Int'l E&P
|
|
OSM
|
|
to Segments
|
|
Total
|
||||||||||
Sales and other operating revenues
|
$
|
1,215
|
|
|
$
|
1,801
|
|
|
$
|
388
|
|
|
$
|
(50
|
)
|
(c)
|
$
|
3,354
|
|
Marketing revenues
|
345
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
430
|
|
|||||
Total revenues
|
1,560
|
|
|
1,886
|
|
|
388
|
|
|
(50
|
)
|
|
3,784
|
|
|||||
Income from equity method investments
|
—
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|||||
Net gain on disposal of assets and other income
|
—
|
|
|
16
|
|
|
—
|
|
|
102
|
|
|
118
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Production expenses
|
184
|
|
|
109
|
|
|
271
|
|
|
—
|
|
|
564
|
|
|||||
Marketing costs
|
347
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
429
|
|
|||||
Exploration expenses
|
435
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
463
|
|
|||||
Depreciation, depletion and amortization
|
478
|
|
|
180
|
|
|
52
|
|
|
10
|
|
|
720
|
|
|||||
Impairments
|
23
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
38
|
|
|||||
Other expenses
(a)
|
106
|
|
|
65
|
|
|
8
|
|
|
104
|
|
|
283
|
|
|||||
Taxes other than income
|
76
|
|
|
2
|
|
|
6
|
|
|
—
|
|
|
84
|
|
|||||
Net interest and other
|
—
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
72
|
|
|||||
Income tax provision (benefit)
|
(30
|
)
|
|
1,100
|
|
|
13
|
|
|
(96
|
)
|
|
987
|
|
|||||
Segment income/Income from continuing operations
|
$
|
(59
|
)
|
|
$
|
454
|
|
|
$
|
38
|
|
|
$
|
(53
|
)
|
|
$
|
380
|
|
Capital expenditures
(b)
|
$
|
970
|
|
|
$
|
171
|
|
|
$
|
45
|
|
|
$
|
30
|
|
|
$
|
1,216
|
|
(a)
|
Includes other operating expenses and general and administrative expenses.
|
(b)
|
Includes accruals.
|
(c)
|
Unrealized loss on crude oil derivative instruments.
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
(In millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Service cost
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost
|
16
|
|
|
15
|
|
|
3
|
|
|
3
|
|
||||
Expected return on plan assets
|
(18
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||
– prior service cost (credit)
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
(2
|
)
|
||||
– actuarial loss
|
6
|
|
|
13
|
|
|
—
|
|
|
—
|
|
||||
Net settlement loss
(a)
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost
|
$
|
82
|
|
|
$
|
27
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2014
|
|
2013
|
||||
Liquid hydrocarbons, natural gas and bitumen
|
$
|
68
|
|
|
$
|
55
|
|
Supplies and other items
|
337
|
|
|
309
|
|
||
Inventories, at cost
|
$
|
405
|
|
|
$
|
364
|
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2014
|
|
2013
|
||||
North America E&P
|
$
|
27,309
|
|
|
$
|
26,755
|
|
International E&P
|
12,519
|
|
|
12,428
|
|
||
Oil Sands Mining
|
10,514
|
|
|
10,436
|
|
||
Corporate
|
420
|
|
|
421
|
|
||
Total property, plant and equipment
|
50,762
|
|
|
50,040
|
|
||
Less accumulated depreciation, depletion and amortization
|
(22,336
|
)
|
|
(21,895
|
)
|
||
Net property, plant and equipment
|
$
|
28,426
|
|
|
$
|
28,145
|
|
|
March 31, 2014
|
||||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Collateral
|
|
Total
|
||||||||||
Derivative instruments, assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Foreign currency
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Derivative instruments, assets
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17
|
|
Derivative instruments, liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Derivative instruments, liabilities
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
December 31, 2013
|
||||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Collateral
|
|
Total
|
||||||||||
Derivative instruments, assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Foreign currency
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Derivative instruments, assets
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Derivative instruments, liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Derivative instruments, liabilities
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2014
|
|
2013
|
||||||||||||
(In millions)
|
Fair Value
|
|
Impairment
|
|
Fair Value
|
|
Impairment
|
||||||||
Long-lived assets held for use
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||
|
Fair
|
|
Carrying
|
|
Fair
|
|
Carrying
|
||||||||
(In millions)
|
Value
|
|
Amount
|
|
Value
|
|
Amount
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Other noncurrent assets
|
$
|
154
|
|
|
$
|
147
|
|
|
$
|
154
|
|
|
$
|
147
|
|
Total financial assets
|
154
|
|
|
147
|
|
|
154
|
|
|
147
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other current liabilities
|
13
|
|
|
13
|
|
|
13
|
|
|
13
|
|
||||
Long-term debt, including current portion
(a)
|
7,020
|
|
|
6,427
|
|
|
6,922
|
|
|
6,427
|
|
||||
Deferred credits and other liabilities
|
153
|
|
|
149
|
|
|
149
|
|
|
147
|
|
||||
Total financial liabilities
|
$
|
7,186
|
|
|
$
|
6,589
|
|
|
$
|
7,084
|
|
|
$
|
6,587
|
|
|
March 31, 2014
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Asset
|
|
Balance Sheet Location
|
||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
||||||
Interest rate
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
Other noncurrent assets
|
Foreign currency
|
10
|
|
|
—
|
|
|
10
|
|
|
Other current assets
|
|||
Total Designated Hedges
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
|
|
March 31, 2014
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Liability
|
|
Balance Sheet Location
|
||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
Other current liabilities
|
Total Designated Hedges
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
|
|
December 31, 2013
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Asset
|
|
Balance Sheet Location
|
||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
||||||
Interest rate
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
Other noncurrent assets
|
Foreign currency
|
2
|
|
|
—
|
|
|
2
|
|
|
Other current assets
|
|||
Total Designated Hedges
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
December 31, 2013
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Liability
|
|
Balance Sheet Location
|
||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
Other current liabilities
|
Total Designated Hedges
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
|
|
Aggregate Notional
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Amount
|
Weighted Average, LIBOR-Based,
|
||||||
Maturity Dates
|
(in millions)
|
Floating Rate
|
||||||
October 1, 2017
|
$
|
600
|
|
4.64
|
%
|
|
4.65
|
%
|
March 15, 2018
|
$
|
300
|
|
4.49
|
%
|
|
4.50
|
%
|
|
|
Gain (Loss)
|
||||||
|
|
Three Months Ended March 31,
|
||||||
(In millions)
|
Income Statement Location
|
2014
|
|
2013
|
||||
Derivative
|
|
|
|
|
||||
Interest rate
|
Net interest and other
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
Foreign currency
|
Provision for income taxes
|
$
|
3
|
|
|
$
|
(25
|
)
|
Hedged Item
|
|
|
|
|
|
|
||
Long-term debt
|
Net interest and other
|
$
|
1
|
|
|
$
|
3
|
|
Accrued taxes
|
Provision for income taxes
|
$
|
(3
|
)
|
|
$
|
25
|
|
|
Stock Options
|
|
Restricted Stock
|
||||||||||
|
Number of
Shares
|
|
Weighted
Average
Exercise Price
|
|
Awards
|
|
Weighted
Average Grant
Date Fair Value
|
||||||
Outstanding at December 31, 2013
|
18,104,887
|
|
|
|
$27.27
|
|
|
4,031,888
|
|
|
|
$31.80
|
|
Granted
|
901,447
|
|
(a)
|
|
$33.94
|
|
|
138,851
|
|
|
|
$33.85
|
|
Options Exercised/Stock Vested
|
(289,709
|
)
|
|
|
$20.89
|
|
|
(368,263
|
)
|
|
|
$33.60
|
|
Canceled
|
(246,363
|
)
|
|
|
$33.60
|
|
|
(201,215
|
)
|
|
|
$31.33
|
|
Outstanding at March 31, 2014
|
18,470,262
|
|
|
|
$27.61
|
|
|
3,601,261
|
|
|
|
$31.72
|
|
|
Three Months Ended March 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
Net cash provided from operating activities:
|
|
|
|
||||
Interest paid (net of amounts capitalized)
|
$
|
56
|
|
|
$
|
61
|
|
Income taxes paid to taxing authorities
|
453
|
|
|
1,003
|
|
||
Commercial paper, net:
|
|
|
|
|
|
||
Commercial paper - issuances
|
$
|
2,235
|
|
|
$
|
200
|
|
- repayments
|
(2,370
|
)
|
|
(400
|
)
|
||
Noncash investing activities, related to continuing operations:
|
|
|
|
|
|
||
Asset retirement costs capitalized
|
$
|
37
|
|
|
$
|
27
|
|
Change in capital expenditure accrual
|
58
|
|
|
(105
|
)
|
||
Asset retirement obligations assumed by buyer
|
43
|
|
|
88
|
|
||
Receivable for disposal of assets
|
44
|
|
|
50
|
|
•
|
North America E&P – explores for, produces and markets liquid hydrocarbons and natural gas in North America;
|
•
|
International E&P – explores for, produces and markets liquid hydrocarbons and natural gas outside of North America and produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea ("E.G."); and
|
•
|
Oil Sands Mining – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.
|
•
|
Increased net income per diluted share to $1.65, which includes $0.83 per diluted share related to the after-tax gain on the sale of our Angola assets, an increase of over 200 percent from the same quarter of last year
|
•
|
Increased income from continuing operations per diluted share to $0.77, up 43 percent from the same quarter of last year
|
•
|
Three high-quality U.S. resource plays averaged net production of 154 thousand barrels of oil equivalent per day ("mboed"), up 26 percent from the first quarter of 2013
|
◦
|
Eagle Ford downspacing results continued to consistently outperform modeled type curves
|
◦
|
Austin Chalk and Eagle Ford co-development continuing on plan with completion of first 2014 Austin Chalk well at 30-day initial production ("IP") rate of 1,600 barrels of oil equivalent per day ("boed")
|
◦
|
Bakken and Three Forks co-development progressing with high density pilots delivering strong results; testing eight wells per 1,280-acre drilling spacing unit
|
◦
|
Bakken recompletions program delivered five wells with initial 24-hour and 30-day IP rates exceeding expectations
|
◦
|
South Central Oklahoma Oil Province ("SCOOP") extended-reach (XL) wells delivering strong results with two wells at 30-day IP rates of up to 1,550 boed
|
•
|
Recorded 97 percent average operational availability for operated assets
|
•
|
Marketing of North Sea businesses on schedule; bids due in second quarter
|
•
|
Closed on sales of Angola Blocks 31 and 32 for aggregate cash proceeds of approximately $2 billion, resulting in after-tax gain of $576 million
|
•
|
Completed second phase of $1 billion share repurchase; initiated additional $500 million share repurchase
|
•
|
Substantially completed additional $500 million share repurchase
|
|
Three Months Ended March 31,
|
|||||
Benchmark
|
2014
|
2013
|
||||
West Texas Intermediate ("WTI") crude oil
(Dollars per barrel)
|
|
$98.62
|
|
|
$94.36
|
|
Brent (Europe) crude oil
(Dollars per barrel)
|
|
$108.17
|
|
|
$112.49
|
|
Henry Hub natural gas (
Dollars per million British thermal units ("mmbtu"
))
(a)
|
|
$4.94
|
|
|
$3.34
|
|
(a)
|
Settlement date average.
|
|
Three Months Ended March 31,
|
|||
Benchmark
|
2014
|
2013
|
||
WTI crude oil
(Dollars per barrel)
|
$98.62
|
$94.36
|
||
WCS crude oil
(Dollars per barrel)
(a)
|
$75.55
|
|
$62.41
|
|
AECO natural gas sales index
(Dollars per mmbtu)
(b)
|
$4.99
|
|
$3.16
|
|
(a)
|
Monthly pricing based upon average WTI adjusted for differentials unique to western Canada.
|
(b)
|
Monthly average AECO day ahead index.
|
|
Three Months Ended March 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
Sales and other operating revenues, including related party
|
|
|
|
||||
North America E&P
|
$
|
1,392
|
|
|
$
|
1,215
|
|
International E&P
|
1,061
|
|
|
1,801
|
|
||
Oil Sands Mining
|
377
|
|
|
388
|
|
||
Segment sales and other operating revenues, including related party
|
2,830
|
|
|
3,404
|
|
||
Unrealized loss on crude oil derivative instruments
|
—
|
|
|
(50
|
)
|
||
Sales and other operating revenues, including related party
|
$
|
2,830
|
|
|
$
|
3,354
|
|
|
|
Three Months Ended March 31,
|
||||
|
|
2014
|
|
2013
|
||
North America E&P Operating Statistics
|
|
|
|
|
||
Net liquid hydrocarbon sales volumes
(mbbld)
(a)
|
|
163
|
|
|
141
|
|
Liquid hydrocarbon average price realizations
(per bbl)
(b) (c)
|
|
$84.79
|
|
$86.14
|
||
Net crude oil and condensate sales volumes
(mbbld)
|
|
138
|
|
|
121
|
|
Crude oil and condensate average price realizations
(per bbl)
(b)
|
|
$92.48
|
|
$94.68
|
||
Net natural gas liquids sales volumes
(mbbld)
|
|
25
|
|
|
20
|
|
Natural gas liquids average price realizations
(per bbl)
(b)
|
|
$43.11
|
|
$35.48
|
||
Net natural gas sales volumes
(mmcfd)
|
|
300
|
|
|
340
|
|
Natural gas average price realizations
(per mcf)
(b)
|
|
$5.28
|
|
$3.86
|
(a)
|
Includes crude oil, condensate and natural gas liquids.
|
(b)
|
Excludes gains and losses on derivative instruments.
|
(c)
|
Inclusion of realized losses on crude oil derivative instruments would have decreased average liquid hydrocarbon price realizations by
$0.31
per bbl for the
first three months
of
2013
. There were no crude oil derivative instruments for the
first three months
of
2014
.
|
|
Three Months Ended March 31,
|
||||
|
2014
|
|
2013
|
||
International E&P Operating Statistics
|
|
|
|
||
Net liquid hydrocarbon sales
volumes
(mbbld)
(a)
|
110
|
|
|
171
|
|
Liquid hydrocarbon average price realizations
(per bbl)
|
$96.49
|
|
$107.79
|
||
Net natural gas sales volumes
(mmcfd)
(b)
|
518
|
|
|
568
|
|
Natural gas average price realizations
(per mcf)
|
$1.98
|
|
$2.57
|
(a)
|
Includes crude oil, condensate and natural gas liquids. The amounts correspond with the basis for fiscal settlements with governments, representing equity tanker liftings and direct deliveries of liquid hydrocarbons.
|
(b)
|
Includes natural gas acquired for injection and subsequent resale of
7
mmcfd and
11
mmcfd for the
first quarter
s of
2014
and
2013
.
|
(a)
|
Includes blendstocks.
|
|
|
Three Months Ended March 31,
|
|
|||||
($ per boe)
|
|
2014
|
|
2013
|
||||
North America E&P
|
|
|
$11.02
|
|
|
|
$10.35
|
|
International E&P
|
|
|
$9.67
|
|
|
|
$4.57
|
|
Oil Sands Mining
(a)
|
|
$47.54
|
|
$46.29
|
(a)
|
Production expense per synthetic crude oil barrel (before royalties) includes production costs, shipping and handling, taxes other than income and insurance costs and excludes pre-development costs.
|
|
|
Three Months Ended March 31,
|
||||||
(In millions)
|
|
2014
|
|
2013
|
||||
Unproved property impairments
|
|
$
|
41
|
|
|
$
|
383
|
|
Dry well costs
|
|
2
|
|
|
21
|
|
||
Geological and geophysical
|
|
11
|
|
|
28
|
|
||
Other
|
|
22
|
|
|
31
|
|
||
Total exploration expenses
|
|
$
|
76
|
|
|
$
|
463
|
|
|
Three Months Ended March 31,
|
||||||
($ per boe)
|
2014
|
|
2013
|
||||
DD&A rate
|
|
|
|
||||
North America E&P
|
$
|
26.88
|
|
|
$
|
26.83
|
|
International E&P
|
$
|
7.04
|
|
|
$
|
7.50
|
|
Oil Sands Mining
|
$
|
11.70
|
|
|
$
|
12.13
|
|
|
|
Three Months Ended March 31,
|
||||||
(In millions)
|
|
2014
|
|
2013
|
||||
North America E&P
|
|
$
|
242
|
|
|
$
|
(59
|
)
|
International E&P
|
|
331
|
|
|
454
|
|
||
Oil Sands Mining
|
|
64
|
|
|
38
|
|
||
Segment income
|
|
637
|
|
|
433
|
|
||
Items not allocated to segments, net of income taxes
|
|
(97
|
)
|
|
(53
|
)
|
||
Income from continuing operations
|
|
540
|
|
|
380
|
|
||
Discontinued operations
(a)
|
|
609
|
|
|
3
|
|
||
Net income
|
|
$
|
1,149
|
|
|
$
|
383
|
|
(a)
|
In the first quarter of 2014, we closed the sale of our Angola assets. The Angola business is reflected as discontinued operations in all periods presented.
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2014
|
|
2013
|
||||
Commercial paper
|
$
|
—
|
|
|
$
|
135
|
|
Long-term debt due within one year
|
68
|
|
|
68
|
|
||
Long-term debt
|
6,392
|
|
|
6,394
|
|
||
Total debt
|
$
|
6,460
|
|
|
$
|
6,597
|
|
Cash and cash equivalents
|
$
|
1,964
|
|
|
$
|
264
|
|
Equity
|
$
|
19,805
|
|
|
$
|
19,344
|
|
Calculation:
|
|
|
|
|
|
||
Total debt
|
$
|
6,460
|
|
|
$
|
6,597
|
|
Minus cash and cash equivalents
|
1,964
|
|
|
264
|
|
||
Total debt minus cash
|
$
|
4,496
|
|
|
$
|
6,333
|
|
Total debt
|
$
|
6,460
|
|
|
$
|
6,597
|
|
Plus equity
|
19,805
|
|
|
19,344
|
|
||
Minus cash and cash equivalents
|
1,964
|
|
|
264
|
|
||
Total debt plus equity minus cash and cash equivalents
|
$
|
24,301
|
|
|
$
|
25,677
|
|
Cash-adjusted debt-to-capital ratio
|
19
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Fair values of cash and cash equivalents, receivables, commercial paper, accounts payable and accrued interest approximate carrying value and are relatively insensitive to changes in interest rates due to the short-term maturity of the instruments. Accordingly, these instruments are excluded from the table.
|
(b)
|
Fair value was based on market prices where available, or current borrowing rates for financings with similar terms and maturities.
|
(c)
|
Excludes capital leases.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
Segment Income (Loss)
|
|
|
|
||||
North America E&P
|
$
|
242
|
|
|
$
|
(59
|
)
|
International E&P
|
331
|
|
|
454
|
|
||
Oil Sands Mining
|
64
|
|
|
38
|
|
||
Segment income
|
637
|
|
|
433
|
|
||
Items not allocated to segments, net of income taxes
|
(97
|
)
|
|
(53
|
)
|
||
Income from continuing operations
|
540
|
|
|
380
|
|
||
Discontinued operations
(a)
|
609
|
|
|
3
|
|
||
Net income
|
$
|
1,149
|
|
|
$
|
383
|
|
Capital Expenditures
(b)
|
|
|
|
|
|
||
North America E&P
|
$
|
867
|
|
|
$
|
970
|
|
International E&P
|
171
|
|
|
171
|
|
||
Oil Sands Mining
|
68
|
|
|
45
|
|
||
Corporate
|
3
|
|
|
30
|
|
||
Discontinued operations
(a)
|
44
|
|
|
54
|
|
||
Total
|
$
|
1,153
|
|
|
$
|
1,270
|
|
Exploration Expenses
|
|
|
|
|
|
||
North America E&P
|
$
|
57
|
|
|
$
|
435
|
|
International E&P
|
19
|
|
|
28
|
|
||
Total
|
$
|
76
|
|
|
$
|
463
|
|
(a)
|
In the first quarter of 2014, we closed the sale of our Angola assets. The Angola business is reflected as discontinued operations in all periods presented.
|
(b)
|
Capital expenditures include changes in accruals.
|
|
Three Months Ended
|
||
|
March 31,
|
||
Net Sales Volumes
|
2014
|
|
2013
|
North America E&P
|
|
|
|
Crude Oil and Condensate
(mbbld)
|
|
|
|
Bakken
|
38
|
|
33
|
Eagle Ford
|
62
|
|
46
|
Oklahoma resource basins
|
2
|
|
1
|
Other North America
|
36
|
|
41
|
Total Crude Oil and Condensate
|
138
|
|
121
|
Natural Gas Liquids
(mbbld)
|
|
|
|
Bakken
|
2
|
|
2
|
Eagle Ford
|
16
|
|
12
|
Oklahoma resource basins
|
4
|
|
4
|
Other North America
|
3
|
|
2
|
Total Natural Gas Liquids
|
25
|
|
20
|
Total Liquid Hydrocarbons
(mbbld)
|
|
|
|
Bakken
|
40
|
|
35
|
Eagle Ford
|
78
|
|
58
|
Oklahoma resource basins
|
6
|
|
5
|
Other North America
|
39
|
|
43
|
Total Liquid Hydrocarbons
|
163
|
|
141
|
Natural Gas
(mmcfd)
|
|
|
|
Bakken
|
16
|
|
13
|
Eagle Ford
|
107
|
|
83
|
Oklahoma resource basins
|
54
|
|
50
|
Alaska
|
0
|
|
31
|
Other North America
|
123
|
|
163
|
Total Natural Gas
|
300
|
|
340
|
Total North America E&P
(mboed)
|
213
|
|
198
|
|
Three Months Ended
|
||
|
March 31,
|
||
Net Sales Volumes
|
2014
|
|
2013
|
International E&P
|
|
|
|
Total Liquid Hydrocarbons
(mbbld)
|
|
|
|
Equatorial Guinea
|
35
|
|
37
|
Norway
|
62
|
|
79
|
United Kingdom
|
13
|
|
21
|
Libya
|
0
|
|
34
|
Total Liquid Hydrocarbons
|
110
|
|
171
|
Natural Gas
(mmcfd)
|
|
|
|
Equatorial Guinea
|
435
|
|
447
|
Norway
|
50
|
|
54
|
United Kingdom
(c)
|
30
|
|
41
|
Libya
|
3
|
|
26
|
Total Natural Gas
|
518
|
|
568
|
Total International E&P
(mboed)
|
197
|
|
265
|
Oil Sands Mining
|
|
|
|
Synthetic Crude Oil
(mbbld)
(d)
|
47
|
|
51
|
Total Continuing Operations
(mboed)
|
457
|
|
514
|
Discontinued Operations
(mboed)
(a)
|
6
|
|
9
|
Total Company
(mboed)
|
463
|
|
523
|
Net Sales Volumes of Equity Method Investees
|
|
|
|
LNG
(mtd)
|
6,579
|
|
6,787
|
Methanol
(mtd)
|
1,153
|
|
1,410
|
(c)
|
Includes natural gas acquired for injection and subsequent resale of
7
mmcfd and
11
mmcfd for the
first quarter
s of
2014
and
2013
.
|
(d)
|
Includes blendstocks.
|
|
Three Months Ended
|
||||
|
March 31,
|
||||
Average Price Realizations
(e)
|
2014
|
|
2013
|
||
North America E&P
|
|
|
|
||
Crude Oil and Condensate
(per bbl)
|
|
|
|
||
Bakken
|
$89.46
|
|
$91.22
|
||
Eagle Ford
|
96.10
|
|
|
103.78
|
|
Oklahoma resource basins
|
94.38
|
|
|
90.07
|
|
Other North America
|
89.25
|
|
|
87.30
|
|
Total Crude Oil and Condensate
|
92.48
|
|
|
94.68
|
|
Natural Gas Liquids
(per bbl)
|
|
|
|
||
Bakken
|
$57.62
|
|
$41.05
|
||
Eagle Ford
|
37.50
|
|
|
28.16
|
|
Oklahoma resource basins
|
44.58
|
|
|
41.27
|
|
Other North America
|
61.83
|
|
|
56.58
|
|
Total Natural Gas Liquids
|
43.11
|
|
|
35.48
|
|
Total Liquid Hydrocarbons
(per bbl)
(f)
|
|
|
|
||
Bakken
|
$87.60
|
|
$88.60
|
||
Eagle Ford
|
84.16
|
|
|
88.06
|
|
Oklahoma resource basins
|
58.75
|
|
|
52.86
|
|
Other North America
|
87.40
|
|
|
85.41
|
|
Total Liquid Hydrocarbons
|
84.79
|
|
|
86.14
|
|
Natural Gas
(per mcf)
|
|
|
|
||
Bakken
|
$8.41
|
|
$3.61
|
||
Eagle Ford
|
4.89
|
|
|
3.35
|
|
Oklahoma resource basins
|
5.50
|
|
|
3.56
|
|
Alaska
|
—
|
|
|
7.90
|
|
Other North America
|
5.10
|
|
|
3.49
|
|
Total Natural Gas
|
5.28
|
|
|
3.86
|
|
(e)
|
Excludes gains or losses on derivative instruments.
|
(f)
|
Inclusion of realized losses on crude oil derivative instruments would have decreased average liquid hydrocarbon price realizations by
$0.31
per bbl for the
first three months
of
2013
. There were no crude oil derivative instruments for the
first three months
of
2014
.
|
|
Three Months Ended
|
||||
|
March 31,
|
||||
Average Price Realizations
(e)
|
2014
|
|
2013
|
||
International E&P
|
|
|
|
||
Total Liquid Hydrocarbons
(per bbl)
|
|
|
|
||
Equatorial Guinea
|
$62.37
|
|
$65.89
|
||
Norway
|
112.94
|
|
|
117.13
|
|
United Kingdom
|
109.53
|
|
|
112.25
|
|
Libya
|
—
|
|
|
129.56
|
|
Total Liquid Hydrocarbons
|
96.49
|
|
|
107.79
|
|
Natural Gas
(per mcf)
|
|
|
|
||
Equatorial Guinea
(g)
|
$0.24
|
|
$0.24
|
||
Norway
|
12.01
|
|
|
14.00
|
|
United Kingdom
|
10.02
|
|
|
11.27
|
|
Libya
|
6.65
|
|
|
5.04
|
|
Total Natural Gas
|
1.98
|
|
|
2.57
|
|
Oil Sands Mining
|
|
|
|
||
Synthetic Crude Oil
(per bbl)
|
$88.50
|
|
$79.98
|
||
Discontinued Operations
(per bbl)
(a)
|
$99.82
|
|
$105.95
|
|
Column (a)
|
|
Column (b)
|
|
Column (c)
|
|
Column (d)
|
||
|
Total Number of
|
|
Average Price
|
|
Total Number of
Shares Purchased
as Part of
Publicly Announced
|
|
Approximate Dollar
Value of Shares that
May Yet Be
Purchased Under the
|
||
Period
|
Shares Purchased
(a)(b)
|
|
Paid per Share
|
|
Plans or Programs
(c)
|
|
Plans or Programs
(c)
|
||
01/01/14 - 01/31/14
|
5,324
|
|
|
$35.03
|
|
—
|
|
|
$2,500,000,000
|
02/01/14 - 02/28/14
|
4,814,974
|
|
|
$33.30
|
|
4,803,356
|
|
|
$2,340,045,464
|
03/01/14 - 03/31/14
|
11,670,823
|
|
|
$33.76
|
|
11,576,645
|
|
|
$1,949,161,815
|
Total
|
16,491,121
|
|
|
$33.63
|
|
16,380,001
|
|
|
|
(a)
|
83,556 shares of restricted stock were delivered by employees to Marathon Oil, upon vesting, to satisfy tax withholding requirements.
|
(b)
|
In March 2014, 27,564 shares were repurchased in open-market transactions to satisfy the requirements for dividend reinvestment under the Marathon Oil Corporation Dividend Reinvestment and Direct Stock Purchase Plan (the “Dividend Reinvestment Plan”) by the administrator of the Dividend Reinvestment Plan. Shares needed to meet the requirements of the Dividend Reinvestment Plan are either purchased in the open market or issued directly by Marathon Oil.
|
(c)
|
As of
March 31, 2014
, we had repurchased 108 million common shares at a cost of $4,273 million, which includes transaction fees and commissions that are not reported in the table above. Of this total, 16 million shares were acquired at a cost of $551 million during the first quarter of 2014.
|
|
|
|
|
Incorporated by Reference
|
|
|
|
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
SEC File No.
|
|
Filed Herewith
|
|
Furnished Herewith
|
10.1
|
|
Form of Performance Unit Award Agreement 2014 - 2016 Performance Cycle for Section 16 Officers
|
|
|
|
|
|
|
|
|
|
X
|
|
|
10.2
|
|
Form of Performance Unit Award Agreement 2014 - 2016 Performance Cycle for Officers
|
|
|
|
|
|
|
|
|
|
X
|
|
|
10.3
|
|
Marathon Oil Corporation Deferred Compensation Plan for Non-Employee Directors (Amended and Restated as of January 1, 2012)
|
|
|
|
|
|
|
|
|
|
X
|
|
|
12.1
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
31.1
|
|
Certification of President and Chief Executive Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
31.2
|
|
Certification of Executive Vice President and Chief Financial Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
32.1
|
|
Certification of President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
32.2
|
|
Certification of Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
May 7, 2014
|
|
MARATHON OIL CORPORATION
|
|
|
|
|
By:
|
/s/ John R. Sult
|
|
|
John R. Sult
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
Incorporated by Reference
|
|
|
|
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
SEC File No.
|
|
Filed Herewith
|
|
Furnished Herewith
|
10.1
|
|
Form of Performance Unit Award Agreement 2014 - 2016 Performance Cycle for Section 16 Officers
|
|
|
|
|
|
|
|
|
|
X
|
|
|
10.2
|
|
Form of Performance Unit Award Agreement 2014 - 2016 Performance Cycle for Officers
|
|
|
|
|
|
|
|
|
|
X
|
|
|
10.3
|
|
Marathon Oil Corporation Deferred Compensation Plan for Non-Employee Directors (Amended and Restated as of January 1, 2012)
|
|
|
|
|
|
|
|
|
|
X
|
|
|
12.1
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
31.1
|
|
Certification of President and Chief Executive Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
31.2
|
|
Certification of Executive Vice President and Chief Financial Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
32.1
|
|
Certification of President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
32.2
|
|
Certification of Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
TSR
Ranking of
|
|
TSR
Percentile
|
|
Vesting
|
Corporation
|
|
Ranking
|
|
Percentage
|
1
st
|
|
100%
|
|
200%
|
2
nd
|
|
90.9%
|
|
182%
|
3
rd
|
|
81.8%
|
|
164%
|
4
th
|
|
72.7%
|
|
145%
|
5
th
|
|
63.6%
|
|
127%
|
6
th
|
|
54.5%
|
|
109%
|
7
th
|
|
45.4%
|
|
91%
|
8
th
|
|
36.3%
|
|
73%
|
9
th
|
|
27.2%
|
|
54%
|
10
th
|
|
18.1%
|
|
-%
|
11
th
|
|
9%
|
|
-%
|
12
th
|
|
-%
|
|
-%
|
TSR
Ranking of
|
|
TSR
Percentile
|
|
Vesting
|
Corporation
|
|
Ranking
|
|
Percentage
|
1
st
|
|
100%
|
|
200%
|
2
nd
|
|
90.9%
|
|
182%
|
3
rd
|
|
81.8%
|
|
164%
|
4
th
|
|
72.7%
|
|
145%
|
5
th
|
|
63.6%
|
|
127%
|
6
th
|
|
54.5%
|
|
109%
|
7
th
|
|
45.4%
|
|
91%
|
8
th
|
|
36.3%
|
|
73%
|
9
th
|
|
27.2%
|
|
54%
|
10
th
|
|
18.1%
|
|
-%
|
11
th
|
|
9%
|
|
-%
|
12
th
|
|
-%
|
|
-%
|
1.
|
Purpose
|
2.
|
Definitions
|
(a)
|
409A Benefit
means that portion of a Participant’s Deferred Cash Account and Deferred Stock Account that was deferred or became vested after December 31, 2004, with earnings and losses attributable thereto pursuant to Sections 5 and 6.
|
(b)
|
Beneficiary or Beneficiaries
means a person or persons or other entity designated on a beneficiary designation form by a Participant as allowed in this Plan to receive Deferred Benefit payments. If there is no valid designation by the Participant, or if the designated Beneficiary or Beneficiaries fail to survive the Participant or otherwise fail to take the Benefit, the Participant's Beneficiary is the Participant's surviving spouse or, if there is no surviving spouse, the Participant's estate. A Participant may use a beneficiary designation form (in the form and manner acceptable to the Committee) to designate one or more Beneficiaries for all of the Participant’s Deferred Benefit; such designations are revocable.
|
(c)
|
Board
means the Board of Directors of Marathon Oil Corporation.
|
(d)
|
Code
means the Internal Revenue Code of 1986 as amended, including regulations and other guidance of general applicability promulgated thereunder.
|
(e)
|
Code section 409A
means, collectively, section 409A of the Code and any Treasury and Internal Revenue Service regulations and guidance issued thereunder.
|
(f)
|
Committee
means the Corporate Governance and Nominating Committee of the Board or such other committee of the Board as the Board may designate to administer the Plan. In the event the Committee has delegated any authority or responsibility under the Plan in accordance with Section 12, the term “Committee” where used herein shall also refer to the applicable delegate.
|
(g)
|
Common Stock
means the common stock of the Corporation.
|
(h)
|
Common Stock Unit
means a book-entry unit equal in value to a share of Common Stock. A Participant shall be credited with one Common Stock Unit for each stock unit or hypothetical share of Common Stock granted pursuant to a Director Stock Award (or any successor stock incentive arrangement).
|
(i)
|
Corporation
means Marathon Oil Corporation or any successor thereto.
|
(j)
|
Deferral Election Form
means a document designated by the Committee for the purpose of allowing a Participant to elect deferrals under Section 3.
|
(k)
|
Deferral Year
means the calendar year for which a Participant has elected to defer amounts under this Plan.
|
(l)
|
Deferred Benefit
means a Participant’s Deferred Cash Account and Deferred Stock Account under the Plan.
|
(m)
|
Deferred Cash Account
means that bookkeeping record established for each Participant to reflect the status of the Participant’s Deferred Cash Benefit under this Plan. A Deferred Cash Account: (i) is established only for purposes of measuring a Deferred Cash Benefit and not to segregate assets or to identify assets that may or must be used to satisfy a Deferred Cash Benefit; (ii) will be credited with that portion of the Participant's Retainer Fee deferred as a Deferred Cash Benefit according to a Deferral Election Form; and (iii) will be credited periodically with earnings and losses as provided under Section 5.
|
(n)
|
Deferred Cash Benefit
means the amount of Retainer Fees deferred by a Participant under Section 3.
|
(o)
|
Deferred Stock Account
means that bookkeeping record established for each Participant to reflect the status of the Participant’s Deferred Stock Benefit under this Plan. A Deferred Stock Account is established only for purposes of measuring Common Stock Units and not to segregate assets or to identify assets that may or must be used to satisfy a Deferred Stock Benefit. A Deferred Stock Account will be credited with the Common Stock Units that are awarded to a Participant annually or at such other times that awards are made and deferred. A Deferred Stock Account will be credited periodically with additional Common Stock Units that reflect the value of dividends paid on Common Stock pursuant to Section 6.
|
(p)
|
Deferred Stock Benefit
means the number of Common Stock Units that are deferred pursuant to Section 3. In addition to the Common Stock Units granted pursuant to any Director Stock Award, a Participant’s Deferred Stock Benefit shall also include any Common Stock Units granted prior to 2007 pursuant to any predecessor arrangement.
|
(q)
|
Directors
means those duly named members of the Board.
|
(r)
|
Director Stock Award
means an award providing for the grant of Common Stock Units, including awards governed by the 2007 Incentive Compensation Plan Administrative Regulations for Annual Director Stock Awards or, in the discretion of the Committee, any successor stock incentive award.
|
(s)
|
Distribution Election Form
means the form submitted by a Participant prior to 2008 to elect the time and form of payment of the Participant’s Deferred Benefit.
|
(t)
|
Election Date
means the date established by this Plan as the date before which a Participant must submit a valid Deferral Election Form to the Committee. For each Deferral Year, the Election Date is December 31 of the preceding calendar year. Notwithstanding the foregoing, the Committee may set an earlier date as the Election Date for any Deferral Year. All Election Dates shall be established in conformity with Code section 409A.
|
(u)
|
Grandfathered Benefit
means that portion of a Participant’s Deferred Cash Account and Deferred Stock Account that is exempt from Code section 409A because it was deferred and vested as of December 31, 2004, as adjusted to reflect any earnings or losses thereto pursuant to Sections 5 and 6.
|
(v)
|
Participant
means a Director who is not simultaneously an employee of the Corporation.
|
(w)
|
Plan
means the Marathon Oil Corporation Deferred Compensation Plan for Non-Employee Directors.
|
(x)
|
Retainer Fee
means that portion of a Participant's compensation that is fixed and paid without regard to the Participant’s attendance at meetings.
|
(y)
|
Separation from Service
shall have the same meaning as set forth under Code section 409A.
|
(z)
|
Specified Employee
shall have the same meaning as set forth under Code section 409A and as determined by the Corporation in accordance with its established policy.
|
3.
|
Deferral Election
|
(a)
|
No later than each Deferral Year's Election Date, each Participant may submit a Deferral Election Form to defer until after Separation from Service the receipt of any portion up to 100 percent of the Participant’s Retainer Fee for the Deferral Year in the form of a Deferred Cash Benefit. In the event an individual becomes a Director and is first eligible to participate during a Deferral Year, such Director may submit a Deferral Election Form no later than thirty (30) days following the effective date of the individual’s position as a Director, provided that, to the extent required by Code section 409A, the Retainer Fee subject to the election shall be prorated in accordance with Code section 409A.
|
(b)
|
Common Stock Units awarded pursuant to a Director Stock Award are automatically deferred and accounted for in a Deferred Stock Account and are not subject to any Deferral Election.
|
(c)
|
If it does so before the last business day preceding the Deferral Year, the Committee may reject or modify any Deferral Election Form for such Deferral Year and the Committee is not required to state a reason for such action. However, the Committee's rejection or modification of any Deferral Election Form must be based upon action taken without regard to any vote of the Participant whose Deferral Election Form is under consideration, and the Committee's rejections or modifications must be made on a uniform basis with respect to similarly situated Participants. If the Committee rejects or modifies a Deferral Election Form, the Participant must be paid the Retainer Fee that the Participant is entitled to receive after taking into account the rejected or modified Deferral Election Form.
|
(d)
|
A Participant may not revoke a Deferral Election Form after the Deferral Year begins. Any writing signed by a Participant expressing an intention to revoke the Participant’s Deferral Election Form before the close of business on the relevant Election Date is a revocation. In the event the Retainer Fee is paid in more than one payment during a Deferral Year, a Participant’s deferral may be taken from such Retainer Fee ratably during the applicable Deferral Year or in any other manner determined by the
|
4.
|
Effect of No Election
|
5.
|
Deferred Cash Benefits
|
(a)
|
The Deferred Cash Account for each Participant will be credited with deemed investment returns as provided in section 5(b). Deferred Cash Benefits are credited to the applicable Participant's Deferred Cash Account as of the day the Retainer Fees would have been paid but for the deferral.
|
(b)
|
A Participant may select one or more investment options approved by the Committee for the Participant’s Deferred Cash Benefits, and earnings and loses from such investment options will be credited to the Participant’s Deferred Cash Account at periods determined by the Committee. A Participant may change the investment allocation of the Participant’s Deferred Cash Account at any time.
|
6.
|
Deferred Stock Benefit
|
(a)
|
Each Common Stock Unit held in a Deferred Stock Account will increase or decrease in value by the same amount and with the same frequency as the fair market value of a share of Common Stock. Each Deferred Stock Account will be credited as of the Award Date specified under the Administrative Regulations for Director Stock Awards.
|
(b)
|
Each Deferred Stock Account will be credited on or about each Common Stock dividend payment date with additional Common Stock Units, including fractional units, in a quantity equal to the quotient of the dividends payable on the quantity of shares equal to the number of Common Stock Units in such account divided by the value of a share of Common Stock on the date of that payment as determined in accordance with the manner established by the Committee from time to time.
|
(c)
|
In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering or any other change in the corporate structure, the number and kind of Common Stock Units credited to each Participant’s Deferred Stock Account shall be adjusted accordingly.
|
7.
|
Distributions
|
(a)
|
A Deferred Cash Benefit must be distributed in cash. A Deferred Stock Benefit must be distributed in shares of Common Stock and such distribution will correspond to, and equal to the number of, the Common Stock Units credited to the Participant's Deferred Stock Account; provided that cash must be paid in lieu of fractional shares of the Common Stock otherwise distributable.
|
(b)
|
Except as otherwise provided in this Section 7, both a Participant’s (i) Deferred Cash Benefit and (ii) Deferred Stock Benefit and dividends credited with respect to such Common Stock Units pursuant to Section 6(b) of this Plan, shall be paid in a lump sum on the first day of the calendar month following the expiration of 45 days after the Participant’s Separation from Service for any reason other than death. However, a Participant’s Deferred Stock Benefit consisting of Common Stock Units granted on or after January 1, 2012 and dividends credited with respect to such Common Stock Units pursuant to Section 6(b) of this Plan, shall be paid in a lump sum on the earlier of (i) the date on which such Common Stock Units would otherwise be payable as provided in Section 7 or (ii) the first day of the calendar month following the third anniversary of the date such Common Stock Units are credited under Section 6(a) of this Plan.
|
(c)
|
In the event of the death of a Participant, the Participant’s Deferred Benefit shall be paid to the Participant’s Beneficiary (or Beneficiaries) in a lump sum in the February of the year following the Participant’s death or if earlier, on the first day of the calendar month following the expiration of 45 days after the Participant’s Separation from Service as described in Section 7(b) (or, in the event of a Separation from Service of a Specified Employee not on account of death, within the 45-day period described in Section 7(d)).
|
(d)
|
Distribution of the Deferred Benefit of a Participant who the Committee determines is a Specified Employee (other than the Participant’s Grandfathered Benefit) shall commence within the 45-day period following the first of the month following 6 months after Separation from Service (other than a Separation from Service on account of the death of Participant). In the event of a Separation from Service of a Specified Employee on account of death, payment shall be made pursuant to Section 7(c). Payment of a Specified Employee’s Grandfathered Benefit shall be made pursuant to Sections 7(b) or 7(e), as applicable.
|
(e)
|
Notwithstanding any contrary provisions of this Section 7 (other than Section 7(d)), in the event a Participant submitted a Distribution Election Form prior to 2008 and such Participant incurs a Separation from Service prior to 2010 (including a Separation from Service on account of death), such Participant’s Deferred Benefit will be paid (or continue to be paid) in accordance with the terms of such election. In the event a Participant incurs a Separation of Service after 2009, any such Distribution Election
|
(f)
|
Distributions of 409A Benefits prior to January 1, 2009 were made under reasonable good faith interpretations of Code section 409A and transition guidance provided thereunder.
|
8.
|
Corporation's Obligation
|
(a)
|
The Plan is unfunded. A Deferred Benefit is at all times solely a contractual obligation of the Corporation. A Participant and the Participant’s Beneficiaries have no right, title or interest in the Participant’s Deferred Benefit or any claim against them. Except according to section 8(b), the Corporation will not segregate any funds or assets for Deferred Benefits nor issue any notes or security for the payment of any Deferred Benefit.
|
(b)
|
The Corporation may establish a grantor trust and transfer to that trust shares of the Common Stock or other assets. The governing trust agreement must require a separate account to be established for each electing Participant. The governing trust agreement must also require that all Corporation assets held in trust remain at all times subject to the Corporation's creditors.
|
9.
|
Control by Participant
|
10.
|
Claims Against Participant's Deferred Benefit
|
11.
|
Amendment or Termination
|
12.
|
Administration
|
13.
|
Notices
|
14.
|
Waiver
|
15.
|
Construction
|
16.
|
Effective Date
|
(a)
|
Affiliate
means an affiliate of the Corporation as the term "affiliate" is defined in paragraph 8 of Canada Revenue Agency Interpretation Bulletin IT‑337R4,
Retiring Allowances [Consolidated]
, dated February 1, 2006, as such publication may be amended from time to time.
|
(b)
|
Canadian Director
means a Director who is a resident, at any material time, of Canada for the purposes of the ITA.
|
(c)
|
ITA
means the
Income Tax Act
(Canada) and the regulations thereto, as may be amended from time to time.
|
(d)
|
Termination Date
means, with respect to a Canadian Director, the earliest date on which both of the following conditions are met: (i) the Canadian Director has ceased to serve as a Director and is not a director of an Affiliate of the Corporation; and (ii) the Canadian Director is not an employee of the Corporation or any Affiliate thereof.
|
(a)
|
Notwithstanding any provisions of the Plan to the contrary, any Canadian Director whose Common Stock Units are to be automatically deferred and accounted for in a Deferred Stock Account shall receive such credit in his or her Deferred Stock Account immediately prior to the time that the Common Stock Units would otherwise be granted.
|
(b)
|
For greater certainty, Deferred Stock Benefits and Common Stock Units are not shares of Common Stock or other securities of the Corporation and do not entitle a Participant to any stockholder rights, including, without limitation, voting rights, dividend entitlement or rights on liquidation.
|
|
|
Three Months Ended
|
|
|||||||
(In millions)
|
|
March 31,
|
|
|||||||
|
|
|
|
|
|
|
||||
|
|
2014
|
|
|
2013
|
|
||||
|
|
|
|
|
|
|
||||
Portion of rentals representing interest,
|
|
|
|
|
|
|
||||
including discontinued operations
|
|
$
|
8
|
|
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalized interest,
|
|
|
|
|
|
|
|
|
||
including discontinued operations
|
|
7
|
|
|
|
4
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Other interest and fixed charges,
|
|
|
|
|
|
|
|
|
||
including discontinued operations
|
|
69
|
|
|
|
73
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Total fixed charges (A)
|
|
$
|
84
|
|
|
|
$
|
83
|
|
|
|
|
|
|
|
|
|
|
|
||
Earnings-pretax income with
|
|
|
|
|
|
|
|
|
||
applicable adjustments (B)
|
|
$
|
1,172
|
|
|
|
$
|
1,406
|
|
|
|
|
|
|
|
|
|
|
|
||
Ratio of (B) to (A)
|
|
13.95
|
|
|
|
16.94
|
|
|
1.
|
I have reviewed this report on Form 10-Q of Marathon Oil Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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May 7, 2014
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/s/ Lee M. Tillman
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Lee M. Tillman
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President and Chief Executive Officer
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1.
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I have reviewed this report on Form 10-Q of Marathon Oil Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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May 7, 2014
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/s/ John R. Sult
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John R. Sult
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Executive Vice President and Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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May 7, 2014
|
|
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/s/ Lee M. Tillman
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|
Lee M. Tillman
|
|
President and Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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May 7, 2014
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/s/ John R. Sult
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John R. Sult
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Executive Vice President and Chief Financial Officer
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