marathon oil 3rd Quarter 2002

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MARATHON OIL CORPORATION REPORTS THIRD QUARTER 2002 RESULTS

HOUSTON, October 24 – Marathon Oil Corporation (NYSE: MRO) today reported third-quarter 2002

net income, adjusted for special items, of $149 million or $.48 per diluted share, compared to net income,

adjusted for special items, of $319 million or $1.03 per diluted share in the third quarter of 2001.

Marathon reported third quarter 2002 net income of $87 million, or $.28 per diluted share, which

included a $7 million after-tax loss on the early extinguishment of $144 million of long-term debt, a

$61 million one-time deferred tax adjustment related to an increase in tax rates in the UK, a $15 mil-

lion after-tax gain related to the disposition of production interests in the San Juan Basin, and a $9 mil-

lion after-tax loss on a contract settlement. Net income applicable to Marathon Oil Corporation com-

mon stock in the third quarter of 2001 was $193 million, or $.62 per diluted share, which included a

$126 million after-tax loss related to the sale of Marathon's heavy oil assets in Canada.

Earnings Highlights

(Dollars in millions except per diluted share data) 2002 2001

Net income adjusted for special items $149 $319Adjustments for special items (After-tax):

Extraordinary loss from early extinguishment of debt (7) ---Deferred tax related to an increase in tax rates in the UK (61) ---Gain on asset disposition 15 ---Contract settlement (9) ---Loss related to sale of certain Canadian assets --- (126)Items related to disposition of United States Steel --- (23)

Net income $87 $170Net income applicable to Marathon Oil Corporation common stock* $87 $193Net income adjusted for special items - per diluted share $.48 $1.03Net income applicable to Marathon Oil Corporation common stock - per diluted share $.28 $.62Revenues and other income $8,518 $8,348

* Excludes loss applicable to USX-U.S. Steel common stock in the quarter ended September 30, 2001.

Quarter ended September 30

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Third Quarter 2002 Highlights• Realizing deepwater exploration success through:

- Annapolis gas discovery offshore Nova Scotia

- Offshore Angola discovery

• Strengthening core areas through:

- Approval of Equatorial Guinea phase 2A expansion project

• Advancing integrated gas strategy through:

- Acquisition of Elba Island, Georgia, liquefied natural gas (LNG) supply agreement

• Enhancing Marathon Ashland Petroleum LLC (MAP) pipeline network through:

- Construction startup of Cardinal Products Pipe Line

“Marathon's third-quarter results were lower than earnings reported in the same period last year prima-

rily due to significantly tighter refining and marketing margins,” said Marathon president and CEO

Clarence P. Cazalot Jr. “However, while the industry continues to be challenged by difficult refining

and marketing conditions, Marathon made progress in delivering on our business strategy. During the

third quarter, we had encouraging exploration success while also making significant progress in

strengthening our core areas and progressing our integrated natural gas strategy, which is creating a

platform for Marathon to deliver sustainable value growth.”

In the exploration and production (upstream) sector, Marathon's third-quarter oil and gas sales averaged

384,000 barrels of oil equivalent per day (boepd). Production available for sale averaged 401,000

boepd in line with guidance issued with the second quarter earnings. The difference between sales and

production is primarily due to lower than expected product liftings in the UK.

Exploration SuccessMarathon recently announced drilling successes in two of the company’s deepwater focus areas, off-

shore Nova Scotia and Angola. Offshore Nova Scotia, Marathon holds a 30-percent interest in the

recently announced gas discovery at the Annapolis G-24 deepwater wildcat well, located in 5,500 feet

of water. The Marathon-operated well encountered approximately 100 feet of net pay and was tem-

porarily abandoned allowing for re-entry at a later date. Plans are being developed for additional seis-

mic and drilling in 2003.

During September, Marathon and its partners announced the first ultra-deepwater oil discovery on

Block 31 offshore Angola, in which the company holds a 10-percent interest. The Plutao-1A discovery

well is located in 6,628 feet of water. The adjacent Saturno Prospect is expected to spud late in the

fourth quarter. In Block 32, Marathon is participating in the Gindungo Prospect. The well, located in

4,760 feet of water, was spud earlier this week and is the first exploration well on Block 32. Marathon

recently increased its working interest in Block 32 from 10 percent to 30 percent.

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In the Anadarko Basin, Marathon continues to have exploration success in the Cement Field of south-

ern Oklahoma. Three wells have been completed with gross initial rates of between 35 and 40 million

cubic feet per day each. Marathon’s net working interest in these wells varies from 25 to 38 percent.

The company has a significant acreage position in this area that provides a multi-year drilling inventory.

"We are very encouraged by our recent exploration success and we are optimistic that Marathon will

achieve additional success in these highly prospective areas as further drilling occurs. We are moving

forward with follow-up drilling near these discoveries while we continue to pursue other opportunities

in our exploration portfolio,” said Cazalot.

Core Area DevelopmentIn Equatorial Guinea, Marathon secured government approval of the Alba field phase 2A expansion

project in September. This element of Marathon’s Equatorial Guinea expansion plans will increase

gross condensate production from 17,000 to 46,000 barrels per day (bpd) from the Marathon-operated

Alba field. The project is scheduled for completion in the fourth quarter of 2003.

Also, Marathon is awaiting Equatorial Guinea government approval of the Alba phase 2B expansion

project, which will increase production through the expansion of existing liquefied petroleum gas

(LPG) facilities from approximately 2,700 to 16,000 bpd. Upon approval and completion of both the

2A and 2B expansion projects, Marathon's net proven reserves in Equatorial Guinea will total approxi-

mately 300 million barrels of oil equivalent (boe). The full-cycle finding and development cost of these

reserves is estimated at $4.60 per boe.

Integrated Gas Developments

During the third quarter, Marathon further developed its integrated gas strategy primarily through the

acquisition of long-term LNG delivery rights at Elba Island, Georgia. Marathon acquired Enron’s right

to deliver and sell LNG at terminal facilities located near Savannah, Georgia. Under the terms of the

agreement, Marathon can supply up to 58 billion cubic feet of natural gas (as LNG) per year, for a min-

imum of 17 years, at the Elba Island LNG re-gasification terminal. The agreement enables Marathon to

capture value from the expected growth in LNG imports into the United States, while also enhancing

options to commercialize significant natural gas resources in Equatorial Guinea.

The Symphony natural gas pipeline project, another component of the company's integrated gas strate-

gy, recently completed an open season for prospective shippers. The positive feedback and results of

the open season validate the need for new pipeline infrastructure in the North Sea. Based upon the

market support and interest shown during the open season, Marathon will continue discussions with

interested parties in evaluating the best transportation alternatives to bring Norwegian gas to the UK

while optimizing use of existing Brae infrastructure.

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Marathon and its partners in the proposed Baja California (Mexico) LNG/Power project filed a permit

application with the Energy Regulatory Commission of Mexico (CRE) in early August and expect a

decision by year-end. Located in La Joya on the Pacific Coast, the Baja Project will consist of a LNG

regasification facility, water desalinization plant, gas-fired power generation plant, wastewater treatment

facilities and natural gas pipeline infrastructure. The project is expected to be completed in late 2005

or early 2006.

Refining, Marketing and Transportation In the refining, marketing and transportation (downstream) segment, MAP’s third-quarter results were

substantially lower when compared to the results in the third quarter 2001. This decrease was driven

by significantly tighter refining crack spreads and the continued narrow differential between sweet and

sour crude oil prices.

Cardinal Products Pipe Line construction began in early August. The 149-mile refined product pipeline

from Kenova, West Virginia, to Columbus, Ohio, is expected to be operational during the first half of

2003. The pipeline will provide a stable, cost-effective supply of gasoline, diesel fuel and jet fuel to

the central Ohio market.

Segment ResultsTotal segment income was $387 million in third quarter 2002, compared with $837 million in third

quarter 2001.

Exploration and ProductionUpstream segment income totaled $250 million in third quarter 2002, compared to $256 million in third

quarter 2001. Although production available for sale was slightly higher in the third quarter 2002, sales

volumes were lower because of the timing of liftings. The lower sales volumes were partially offset by

higher liquid hydrocarbon prices.

United States upstream income was $187 million in third quarter 2002, compared to $207 million in third

quarter 2001. The decrease was primarily due to lower sales volumes, partially offset by increased liquid

hydrocarbon prices.

International upstream income was $63 million in third quarter 2002, compared to $49 million in third

quarter 2001. The increase is a result of the addition of production interests in Equatorial Guinea, higher

liquid hydrocarbon prices and lower transportation costs. This increase was partially offset by a mark-to-

market valuation loss of $21 million associated with long-term natural gas contracts for the Brae field.

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In the fourth quarter 2002, sales are expected to average approximately 415,000 boepd. Sales are expected

to be approximately 410,000 boepd for the year, slightly below previous estimates. This is principally

due to lower than expected performance from the Vale development in Norway and higher than anticipated

Gulf of Mexico weather-related production deferrals.

Refining, Marketing and TransportationDownstream segment income was $108 million in third quarter 2002, versus segment income of $575

million in third quarter 2001. The decrease primarily reflects a significantly lower refining and whole-

sale marketing margin. The refining and wholesale marketing margin was severely compressed as crude

oil costs increased more than refined product prices compared to the prior year period. A continued

narrowing of the price differential between sweet and sour crude oil in the third quarter 2002 also neg-

atively impacted the refining and wholesale marketing margin.

Other Energy Related Businesses Other energy related businesses segment income was $29 million in third quarter 2002, compared with

$6 million in third quarter 2001. The increase reflected a favorable effect of $14 million from increased

margins in our gas marketing activities and mark-to-market valuation changes in derivatives used to

support those activities, earnings of $5 million from Marathon’s equity investment in the Equatorial

Guinea methanol plant acquired in 2002, and the recognition of a $5 million property damage loss in

the third quarter 2001 for an equity affiliate pipeline investment.

Other Corporate and AdministrativeIn early August, Marathon Oil Corporation was the first integrated oil company to announce plans to

expense the fair value of employee stock options beginning January 1, 2003. Assuming the number of

stock options granted in 2003 approximates the number of those granted in 2002, the estimated impact on

Marathon’s 2003 earnings would not be materially different than under the current method of accounting

for stock options.

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This release contains forward-looking statements with respect to the timing and levels of the company’s worldwide liquidhydrocarbon and natural gas and condensate production, future drilling activity, future interests in drilling prospects, addi-tional reserves, future gas processing and transportation services, and plans for a LNG regasification facility, waterdesalinization plant, gas-fired power generation plant, wastewater treatment facilities and natural gas pipeline infrastruc-ture, and the planned construction and estimated commencement date of pipeline facilities and pipeline deliveries. Somefactors that could potentially affect worldwide liquid hydrocarbon and natural gas and condensate production and theexploration drilling program include acts of war or terrorist acts and the governmental or military response thereto, pric-ing, supply and demand for petroleum products, amount of capital available for exploration and development, occurrence ofacquisitions/dispositions of oil and gas properties, regulatory constraints, timing of commencing production from newwells, drilling rig availability and other geological, operating and economic considerations. Some factors which couldimpact the North Sea pipeline and related facilities, include, but are not limited to, unforeseen difficulty in the negotiation ofdefinitive agreements among project participants, identification of additional participants to reach optimum levels of partic-ipation, inability or delay in obtaining necessary government and third-party approvals, arranging sufficient project financ-ing, unanticipated changes in market demand or supply, competition with similar projects and environmental and permittingissues. The forward-looking information related to the construction of a LNG regasification facility and related facilitiesmay differ significantly from those presently anticipated. Factors but not necessarily all factors that could adversely affectthese expected results include, unforeseen difficulty in negotiation of definitive agreements among project participants, iden-tification of additional participants to reach optimum levels of participation, inability or delay in obtaining necessary gov-ernment and third-party approvals, arranging sufficient project financing, unanticipated changes in market demand or sup-ply, competition with similar projects, environmental issues and availability or construction of sufficient LNG vessels. Theforward-looking information related to the future interests in drilling prospects and reserve additions is based on certainassumptions, including, among others, presently known physical data concerning size and character of reservoirs, economicrecoverability, technology development, future drilling success, production experience, industry economic conditions, levelsof cash flow from operations and operating conditions. Factors that could impact the planned construction and estimatedcommencement date of pipeline facilities and pipeline deliveries include completion of construction and resolution of pend-ing litigation. The foregoing factors (among others) could cause actual results to differ materially from those set forth inthe forward-looking statements. In accordance with the "safe harbor" provisions of the Private Securities Litigation ReformAct of 1995, Marathon Oil Corporation has included in its Annual Report on Form 10-K for the year ended December 31,2001 and subsequent forms 10-Q and 8-K, cautionary language identifying important factors, though not necessarily allsuch factors, that could cause future outcomes to differ materially from those set forth in the forward- looking statements.

The company will conduct a conference call on third-quarter earnings on October 24, 2002, at 11 a.m. EDT.

To listen to the Web cast of the conference call, visit the Marathon Web site at www.marathon.com.

Replays of the Web cast will be available through November 8, 2002.

Media Contacts: Paul Weeditz 713-296-3910

Susan Richardson 713-296-3915

Investor Relations: Ken Matheny 713-296-4114

Howard Thill 713-296-4140

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Marathon Oil CorporationConsolidated Statement of Income (Unaudited)

Third Quarter Ended Nine Months EndedSeptember 30 September 30

(Dollars in millions except per diluted share amounts) 2002 2001 2002 2001

Revenues and Other Income:Revenues $8,435 $8,514 $22,931 $26,260Dividend and investee income 39 34 104 106Net gains (losses) on disposal of assets 33 (208) 44 (180)Gain (loss) on ownership change in Marathon Ashland Petroleum LLC 5 1 9 (5)Other income 6 7 15 83

Total revenues and other income 8,518 8,348 23,103 26,264

Costs and Expenses:Cost of revenues (excludes items shown below) 6,444 6,058 17,192 18,499Selling, general and administrative expenses 218 174 588 505Depreciation, depletion and amortization 292 303 894 912Taxes other than income taxes 1,176 1,216 3,387 3,541Exploration expenses 29 20 130 69Inventory market valuation credit - - (72) -

Total costs and expenses 8,159 7,771 22,119 23,526

Income From Operations: 359 577 984 2,738Net interest and other financial costs 75 50 215 134Minority interest in income of Marathon Ashland Petroleum LLC 45 223 138 650

Income From Continuing Operations Before Income Taxes: 239 304 631 1,954Provision for income taxes 145 120 289 689

Income From Continuing Operations: 94 184 342 1,265

Discontinued Operations:Loss from discontinued operations - (13) - (13)Costs associated with disposition of United States Steel - (1) - (13)

Income Before Extraordinary Loss and Cumulative Effect of Changes in Accounting Principles: 94 170 342 1,239Extraordinary loss on early extinguishment of debt (7) - (33) -Cumulative effect of changes in accounting principles - - 13 (8)

Net Income 87 170 322 1,231Dividends on preferred stock - 2 - 6

NET INCOME APPLICABLE TO COMMON STOCK(S) $87 $168 $322 $1,225

The following notes are an integral part of this Consolidated Statement of Income.

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Marathon Oil CorporationConsolidated Statement of Income (Continued) (Unaudited)


(Dollars in millions except per share amounts) 2002 2001 2002 2001

Applicable to Marathon Oil Corporation Common Stock:Income from continuing operations $94 $184 $342 $1,265- Per share – basic and diluted .30 .59 1.10 4.09

Net income 87 193 322 1,275 - Per share – basic .28 .63 1.04 4.13- Per share – diluted .28 .62 1.04 4.12

Dividends paid per share .23 .23 .69 .69

Weighted average shares, in thousands- Basic 309,874 309,309 309,751 309,056- Diluted 309,970 309,923 309,952 309,452

Applicable to Steel Stock:Net loss $- $(25) $- $(50)- Per share – basic - (0.28) - (0.56)- Per share – diluted - (0.28) - (0.57)

Dividends paid per share - .10 - .45

Weighted average shares, in thousands- Basic and diluted - 89,193 - 89,003

The following notes are an integral part of this Consolidated Statement of Income.

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Marathon Oil CorporationSelected Notes to Financial Statement

1. Marathon Oil Corporation (Marathon), formerly USX Corporation, is engaged in worldwide exploration andproduction of crude oil and natural gas; domestic refining, marketing and transportation of crude oil andpetroleum products primarily through its 62 percent owned subsidiary, Marathon Ashland Petroleum LLC;and other energy related businesses.

Prior to December 31, 2001, Marathon had two outstanding classes of common stock: USX–Marathon Groupcommon stock (Marathon Stock), which was intended to reflect the performance of Marathon’s energy busi-ness, and USX–U. S. Steel Group common stock (Steel Stock), which was intended to reflect the performanceof Marathon’s steel business. As described further in Note 2, on December 31, 2001, Marathon disposed of itssteel business by distributing the common stock of its wholly owned subsidiary United States SteelCorporation (United States Steel) to holders of Steel Stock in exchange for all outstanding shares of SteelStock on a one-for-one basis (the Separation).

2. On December 31, 2001, in a tax-free distribution to holders of Steel Stock, Marathon exchanged the commonstock of United States Steel for all outstanding shares of Steel Stock on a one-for-one basis. The net assets ofUnited States Steel were approximately the same as the net assets attributable to Steel Stock at the time of theSeparation, except for a value transfer of $900 million in the form of additional net debt and other financingsretained by Marathon.

The income from discontinued operations for the periods ended September 30, 2001, represents the netincome attributable to the Steel Stock for the periods presented, except for certain limitations on the amountsof corporate administrative expenses and interest expense (net of income tax effects) allocated to discontinuedoperations as required by generally accepted accounting principles in the United States.

The financial results of United States Steel have been reclassified as discontinued operations for the thirdquarter and nine months ended September 30, 2001, in the Statement of Income and are summarized as follows:


(In Millions) 2001 2001

Revenues and other income $1,660 $4,961Costs and expenses 1,682 5,097

Loss from operations (22) (136)Net interest and other financial costs 24 48

Loss before income taxes (46) (184)Provision (credit) for estimated income taxes (33) (171)

Net loss $(13) $(13)

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Marathon Oil CorporationSelected Notes to Financial Statement (Continued)

2. (Continued)

The following is a reconciliation of income from continuing operations to net income applicable to MarathonOil Corporation Common Stock:


(In Millions) 2001 2001

Income from continuing operations applicable to Marathon Oil CorporationCommon Stock $184 $1,265

Costs associated with disposition of United States Steel (1) (13)

Cumulative effect of accounting principle -- (8)

Amounts included above attributable to Steel Stock:- Selling, general and administrative expenses 3 17- Net interest and other financial costs 14 25- Provision for income taxes (7) (16)- Costs related to separation included in loss on

disposition of United States Steel net of tax - 5

Net income applicable to Marathon Oil Corporation Common Stock $193 $1,275

3. During 2002, in two separate transactions, Marathon acquired interests in the Alba Field offshore EquatorialGuinea, West Africa, and certain other related assets.

On January 3, 2002, Marathon acquired certain interests from CMS Energy Corporation for $1,005 million.Marathon acquired three entities that own a combined 52.4% working interest in the Alba Production SharingContract and a net 43.2% interest in an onshore liquefied petroleum gas processing plant through an equitymethod investee. Additionally, Marathon acquired a 45% net interest in an onshore methanol production plantthrough an equity method investee. Results of operations for the nine months of 2002 include the results ofthe interests acquired from CMS Energy from January 3, 2002.

On June 20, 2002, Marathon acquired 100% of the outstanding stock of Globex Energy, Inc. (Globex) for$155 million. Globex owned an additional 10.9% working interest in the Alba Production Sharing Contractand an additional net 9.0% interest in the onshore liquefied petroleum gas processing plant. Globex also heldoil and gas interests offshore Australia. Results of operations for the nine months of 2002 include the resultsof the Globex acquisition from June 20, 2002.

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Marathon Oil CorporationSelected Notes to Financial Statement (Continued)

4. Marathon has established an inventory market valuation (IMV) reserve to reduce the cost basis of its invento-ries to current market value. Quarterly adjustments to the IMV reserve result in noncash charges or credits toincome from operations. Decreases in market prices below the cost basis result in charges to income fromoperations. Once a reserve has been established, subsequent inventory turnover and increases in prices (up tothe cost basis) result in credits to income from operations. Nine months ended September 30, 2002, results ofoperations includes credits to income from operations of $72 million.

5. During the third quarter of 2002 Marathon retired $144 million of long-term debt resulting in a pretaxextraordinary loss of $12 million ($7 million net of taxes or $.03 per share.) During the nine months endedSeptember 30, 2002, Marathon retired $337 million of long-term debt resulting in a pretax extraordinary lossof $53 million ($33 million net of taxes or $.11 per share.)

6. In July 2002, the United Kingdom enacted a supplementary 10 percent tax on profits from North Sea oil andgas production retroactively effective to April 17, 2002. In the third quarter 2002, Marathon recognized aone-time noncash deferred tax adjustment of $61 million.

Marathon Oil CorporationConsolidated Statement of Income (Unaudited)


(Dollars in millions) 2002 2001 2002 2001

Income (Loss) from OperationsExploration & Production

United States $187 $207 $458 $1,007International 63 49 219 292

E&P Segment Income 250 256 677 1,299Refining, Marketing & Transportation(a) 108 575 268 1,693Other Energy Related Businesses(b) 29 6 74 40

Segment Income $387 $837 $1,019 $3,032

Items Not Allocated To Segments:Administrative Expenses (42) (40) (125) (127)Inventory Market Valuation Credit - - 72 -Gain on lease resolution with U.S. Government - - - 59Gain (Loss) on Ownership Change - MAP 5 1 9 (5)Contract settlement (15) - (15) -Gain on asset disposition 24 - 24 -Loss related to sale of certain Canadian assets - (221) - (221)

Income From Operations $359 $577 $984 $2,738

Capital ExpendituresExploration & Production $254 $219 $692 $593Refining, Marketing & Transportation 121 153 303 365Other(c) 8 20 28 62

Total $383 $392 $1,023 $1,020

Exploration ExpenseUnited States $4 $9 $85 $34International 25 11 45 35

Total $29 $20 $130 $69

Operating StatisticsNet Liquid Hydrocarbon Production(d)(f)

United States 113.8 124.1 118.3 124.9U.S. Equity Investee (MKM) 8.2 9.0 8.5 9.5

Total United States 122.0 133.1 126.8 134.4

Europe 38.6 52.3 50.7 47.0Other International 6.3 10.4 5.0 12.7West Africa 22.5 13.5 23.5 17.3International Equity Investee (CLAM) - - - .1

Total International 67.4 76.2 79.2 77.1

Worldwide 189.4 209.3 206.0 211.5

Net Natural Gas Production(e)(f)(g)United States 709.6 751.8 743.3 771.3Europe 270.4 301.4 308.8 322.1Other International 99.0 119.1 104.0 125.4West Africa 72.5 - 48.3 -International Equity Investee (CLAM) 16.1 26.4 23.3 31.6


Worldwide 1,167.6 1,198.7 1,227.7 1,250.4

Total production (MBOEPD) 384.0 409.1 410.6 419.9

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Marathon Oil CorporationPreliminary Supplemental Statistics (Unaudited)


(Dollars in millions) 2002 2001 2002 2001

Operating StatisticsAverage Sales Prices (excluding derivative gains and losses)

Liquids Hydrocarbons United States $23.77 $21.97 $21.31 $22.54U.S. Equity Investee (MKM) 27.35 25.01 23.98 25.07


Europe 26.52 24.67 23.54 25.60Other International 25.21 22.55 23.05 21.99West Africa 25.89 24.20 23.39 25.95International Equity Investees (CLAM) 36.36 42.36 15.51 28.86


Worldwide $24.79 $22.95 $22.25 $23.58

Natural GasUnited States $2.75 $2.69 $2.69 $4.20

Europe 2.68 2.38 2.65 2.69Other International 3.05 2.82 3.01 4.72West Africa .24 - .24 -International Equity Investees (CLAM) 2.69 3.29 2.95 3.46


Worldwide $2.60 $2.64 $2.61 $3.85

Average Sales Prices (including derivative gains and losses)Liquids Hydrocarbons

United States $23.54 $22.09 $20.71 $22.58U.S. Equity Investee (MKM) 27.35 25.01 23.98 25.07


Europe 26.45 24.67 23.52 25.60Other International 25.21 22.55 23.05 21.99West Africa 25.89 24.20 23.39 25.95International Equity Investees (CLAM) 36.36 42.36 15.51 28.86


Worldwide $24.64 $23.03 $21.90 $23.60

Natural GasUnited States $2.83 $2.76 $2.87 $4.44

Europe 1.84 2.38 2.54 2.69Other International 3.05 2.82 3.01 4.72West Africa .24 - .24 -International Equity Investees (CLAM) 2.69 3.29 2.95 3.46


Worldwide $2.44 $2.68 $2.69 $3.99

MAP:Crude Oil Refined(d) 931.3 961.1 931.9 930.0Consolidated Refined Products Sold(d) 1,387.4 1,343.8 1,322.7 1,300.3

Matching buy/sell volumes included in refined products sold(d) 94.4 43.0 76.4 43.8Refining and Wholesale Marketing Margin(h)(i) $.0389 $.1314 $.0364 $.1347Number of SSA retail outlets(k) 2,063 2,145 - -SSA Gasoline and Distillate Sales(j)(k) 943 916 2,706 2,657SSA Gasoline and Distillate Gross Margin(h)(k) $.1063 $.1331 $.1007 $.1230SSA Merchandise Sales(k) $645 $607 $1,797 $1,669SSA Merchandise Gross Margin(k) $150 $137 $436 $387

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Marathon Oil CorporationPreliminary Supplemental Statistics (Unaudited)

(a) Includes MAP at 100%. RM&T income for reportable segments includes Ashland’s 38% interest in MAP of$45 million, $223 million, $110 million and $650 million in the third quarter and nine month year-to-date2002 and 2001, respectively.

(b) Includes domestic natural gas and crude oil marketing and transportation, and power generation.

(c) Includes other energy related businesses and corporate capital expenditures.

(d) Thousands of barrels per day

(e) Millions of cubic feet per day

(f) Amounts reflect sales before royalties, if any, excluding Canada, Equatorial Guinea, Gabon and the UnitedStates where amounts are shown after royalties.

(g) Includes gas acquired for injection and subsequent resale of 4.0, 6.8, 4.4, and 8.3 mmcfd in the third quarterand nine month year-to-date 2002 and 2001, respectively.

(h) Per gallon

(i) Sales revenue less cost of refinery inputs, purchased products and manufacturing expenses, including depreciation.

(j) Millions of gallons

(k) Excludes travel centers contributed to Pilot Travel Centers LLC. Periods prior to September 1, 2001 havebeen restated.

marathon oil 3rd Quarter 2002

Economy & Finance

Transcript of marathon oil 3rd Quarter 2002