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Hoover's Online Report BuilderMarathon Oil Corporation (NYSE: MRO)

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Table of ContentsThe Basics...............................................................................................................................................................................1

Key Numbers.............................................................................................................................................................1Financial Overview....................................................................................................................................................1Officers & Employees................................................................................................................................................1Board Members..........................................................................................................................................................2Industry Information..................................................................................................................................................2SIC Codes...................................................................................................................................................................3NAICS Codes.............................................................................................................................................................3Top Competitors.........................................................................................................................................................3All Competitors..........................................................................................................................................................4Rankings.....................................................................................................................................................................4Subsidiaries/Affiliates Covered By Hoover's Online.................................................................................................4

Biographies............................................................................................................................................................................5 Thomas J. Usher, Age 61..........................................................................................................................................5 Clarence P. Cazalot Jr., Age 53.................................................................................................................................5 Philip G. Behrman, Age 52.......................................................................................................................................6 Steven B. Hinchman, Age 44....................................................................................................................................7 Steven J. Lowden, Age 43.........................................................................................................................................7 Jerry Howard, Age 54...............................................................................................................................................8 Janet F. Clark, Age 48...............................................................................................................................................8 William F. Schwind Jr., Age 58................................................................................................................................9 Albert G. Adkins, Age 55.........................................................................................................................................9 Eileen M. Campbell, Age 44...................................................................................................................................10 Alard (Al) Kaplan...................................................................................................................................................10 Kenneth L. Matheny, Age 55..................................................................................................................................11 James F. Meara, Age 49..........................................................................................................................................11 Paul C. Reinbolt, Age 47.........................................................................................................................................11 Daniel J. Sullenbarger, Age 50...............................................................................................................................12 Thomas K. Sneed....................................................................................................................................................12 Gary R. Heminger...................................................................................................................................................13 Charles F. Bolden Jr., Age 57.................................................................................................................................13 David A. Daberko, Age 58......................................................................................................................................13 William L. Davis, Age 60.......................................................................................................................................14 Shirley Ann Jackson, Age 58..................................................................................................................................15 Philip Lader, Age 58...............................................................................................................................................15 Charles R. Lee, Age 64...........................................................................................................................................16 Dennis H. Reilley, Age 50......................................................................................................................................17 Seth E. Schofield, Age 64.......................................................................................................................................17 Douglas C. (Doug) Yearley, Age 68.......................................................................................................................18

Overview..............................................................................................................................................................................19

History..................................................................................................................................................................................20

Products/Operations...........................................................................................................................................................21

Report Builder − Marathon Oil Corporation − Hoover's Online

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Table of ContentsOther Resources Available On Hoover's Online..............................................................................................................23

Other Resources.......................................................................................................................................................23Related Products From Our Trusted Partners..........................................................................................................23

Annual Financials................................................................................................................................................................24

Quarterly Financials...........................................................................................................................................................26

Historical Financials & Employees....................................................................................................................................29

Market Data.........................................................................................................................................................................31

Comparison Data.................................................................................................................................................................32

Competitive Landscape.......................................................................................................................................................34

Report Builder − Marathon Oil Corporation − Hoover's Online

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The Basics

5555 San Felipe Rd.Houston, TX 77056−2723 (Map)http://www.marathon.com

Phone: 713−629−6600Fax: 713−296−2952

In the long−running competition for profits in the oil and gas industry, Marathon Oil (formerly USX Corporation) iskeeping up a steady pace. Through its Marathon Oil Company subsidiary, the company explores for and produces oil andnatural gas principally in 10 countries, including Canada, the UK, and the US. It has net proved reserves of 1 billionbarrels of oil equivalent. Marathon Oil owns 62% of Marathon Ashland Petroleum (MAP), a joint venture with Ashland.MAP operates seven refineries with an aggregate capacity of 935,000 barrels of crude oil a day. MAP also has 5,500 USretail gas outlets. In 2004 Ashland agreed to sell its stake in MAP to Marathon Oil for about $3 billion.

Key Numbers

Company Type Public (NYSE: MRO)

Fiscal Year−End December

2003 Sales (mil.) $36,678.0

1−Year Sales Growth 16.6%

2003 Net Income (mil.) $1,321.0

1−Year Net Income Growth 156.0%

2003 Employees 27,007

1−Year Employee Growth (4.1%)

Auditor PricewaterhouseCoopers LLP

Financial Overview

Last Close 23−Mar−2004 $33.13

52−Week High $36.31

52−Week Low $22.48

Basic EPS $4.25

Price/Earnings Ratio 7.80

Current Ratio 1.44

R&D Expense (mil.) −−

Advertising Expense (mil.) −−

% Owned by Institutions 79.60%

Officers & Employees

Title Name Age Salary Bonus

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Chairman Thomas J. Usher 61

President, CEO, and Director Clarence P. Cazalot Jr. 53 $900,000 $1,800,000

SVP Worldwide Exploration Philip G. Behrman 52 $300,000 $350,000

SVP Worldwide Production Steven B. Hinchman 44 $300,000 $325,000

SVP Business Development Steven J. Lowden 43 $300,000 $325,000

SVP Corporate Affairs Jerry Howard 54 $290,000 $260,000

SVP and CFO Janet F. Clark 48

SVP, General Counsel, andSecretary

William F. Schwind Jr. 58

VP Accounting and Controller Albert G. Adkins 55

VP Human Resources Eileen M. Campbell 44

VP Major Projects Alard (Al) Kaplan

VP Investor Relations Kenneth L. Matheny 55

VP Tax James F. Meara 49

VP Finance and Treasurer Paul C. Reinbolt 47

VP Health Enviroment andSafety

Daniel J. Sullenbarger 50

CIO Thomas K. Sneed

President, Marathon AshlandPetroleum LLC

Gary R. Heminger

Board Members

Title Name Age

Chairman Thomas J. Usher 61

President, CEO, and Director Clarence P. Cazalot Jr. 53

Director Charles F. Bolden Jr. 57

Director David A. Daberko 58

Director William L. Davis 60

Director Shirley Ann Jackson 58

Director Philip Lader 58

Director Charles R. Lee 64

Director Dennis H. Reilley 50

Director Seth E. Schofield 64

Director Douglas C. (Doug) Yearley 68

Industry Information

Energy & Utilities•


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Oil & Gas Exploration & Production♦ Oil & Gas Refining, Marketing & Distribution♦

RetailGasoline Retailers♦

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SIC Codes

1311 Crude petroleum and natural gas

1321 Natural gas liquids

2911 Petroleum refining

2992 Lubricating oils and greases

2999 Petroleum and coal products, nec

5171 Petroleum bulk stations & terminals

5172 Petroleum products, nec

5541 Gasoline service stations

5983 Fuel oil dealers

5984 Liquefied petroleum gas dealers

NAICS Codes

21111 Oil and Gas Extraction

211111 Crude Petroleum and Natural Gas Extraction

211112 Natural Gas Liquid Extraction

324110 Petroleum Refineries

32419 Other Petroleum and Coal Products Manufacturing

324191 Petroleum Lubricating Oil and Grease Manufacturing

324199 All Other Petroleum and Coal Products Manufacturing

424710 Petroleum Bulk Stations and Terminals

424720 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)

447110 Gasoline Stations with Convenience Stores

447190 Other Gasoline Stations

45431 Fuel Dealers

454311 Heating Oil Dealers

454312 Liquefied Petroleum Gas (Bottled Gas) Dealers

454319 Other Fuel Dealers

Top Competitors

ChevronTexaco• Exxon Mobil• Royal Dutch/Shell Group•









All Competitors

7−Eleven• Amerada Hess• BP• ChevronTexaco• ConocoPhillips• Exxon Mobil• J.M. Huber• Kerr−McGee• Koch• Lyondell Chemical• Norsk Hydro• Occidental Petroleum• PDVSA• PEMEX• Royal Dutch/Shell Group• Sinclair Oil• Sunoco• TransCanada• Unocal•

Rankings

#52 in FORTUNE 500 • S&P 500•

Subsidiaries/Affiliates Covered By Hoover's Online

Atlantic Methanol Production Company LLC• Marathon Ashland Petroleum LLC

Catlettsburg Refining, LLC♦ Pilot Travel Centers, LLC♦ Speedway SuperAmerica, LLC♦

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Marathon Oil Company•





















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Biographies

Thomas J. Usher, Age 61

Chairman

Other Company Affiliations

Company Title Salary Bonus

H.J. Heinz Company Director

The PNC Financial Services Group, Inc. Director

PPG Industries, Inc. Director

United States Steel Corporation Chairman and CEO $1,100,000 $1,250,000Recent Work Highlights

Marathon Oil Corporation2001: Chairman, $1,400,000 salary, $9,000,000 bonus♦

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United States Steel Corporation2002: Chairman, President, and CEO, $1,100,000 salary, $1,243,000 bonus♦ 2001: Chairman, President, and CEO, $1,400,000 salary, $3,000,000 bonus♦ Title held until 2004: Chairman and CEO♦ Title held until 2003: Chairman, President, and CEO♦

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Biography

Mr. Usher graduated from the University of Pittsburgh with a BS degree in industrial engineering,an MS degree inoperations research and a Ph.D. in systems engineering. He joined United States Steel Corporation ("U. S. Steel") (laterrenamed USX Corporation) in 1965 and held various positions in industrial engineering. From 1975 through 1979,he helda number of management positions at U. S. Steel's South and Gary Works. Mr. Usher was elected Executive VicePresident−Heavy Products in 1986, President−U. S. Steel Group and director of USX in 1991, President and ChiefOperating Officer of USX in 1994 and Chairman of the Board and Chief Executive Officer effective July 1,1995. He isChairman of the Board of Directors of United States Steel Corporation,and a director of H. J. Heinz Co., PNC FinancialServices Group,and PPG Industries,Inc. Mr. Usher is Vice Chairman of the International Iron and Steel Institute; Directorand Chairman of the U.S.−Korea Business Council; Chairman and member of the Executive Committee ofTheSteelAlliance and a member of the Board of Trustees of the University of Pittsburgh and of the Board of the ExtraMile Education Foundation.

Source: Proxy, March 9, 2004

Clarence P. Cazalot Jr., Age 53

President, CEO, and Director, $900,000 salary, $1,800,000 bonus









Baker Hughes Incorporated Director

Marathon Oil Company President and CEORecent Work Highlights

Marathon Oil Corporation2002: President, CEO, and Director, $783,333 salary, $1,100,000 bonus♦ 2001: President, CEO, and Director, $650,000 salary, $2,200,000 bonus♦

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Biography

Mr. Cazalot graduated from Louisiana State University in 1972 with a BS degree in geology and joined Texaco Inc. thatsame year as a geophysicist. After holding a number of increasingly responsible management positions, Mr. Cazalot waselected a Vice President of Texaco Inc. and President of Texaco's Latin America/West Africa Division in 1992. In 1994,he was named President of Texaco Exploration and Production Inc. Mr. Cazalot was appointed President of TexacoInternational Marketing and Manufacturing in 1997, and in 1998 he was named President−International Production andChairman of London−based Texaco Ltd. He was elected President of Texaco's worldwide production operations in 1999.Mr. Cazalot joined USX Corporation as Vice Chairman and Marathon Oil Company as President in March 2000.Effective upon the separation of USX's steel and energy businesses on January 1, 2002, Mr. Cazalot was named Presidentand Chief Executive Officer of Marathon Oil Corporation. He also serves as Chairman of the Board of Managers ofMarathon Ashland Petroleum LLC. Mr. Cazalot serves on the Boards of Directors of Baker Hughes Incorporated, theUS−Saudi Arabian Business Council, the American Petroleum Institute and the Greater Houston Partnership. He also is amember of the Board of Trustees of Spindletop Charities, Inc., the Board of Advisors for the Maguire Energy Institute,and the Board of Directors of the Sam Houston Area Council, Boy Scouts of America.


Philip G. Behrman, Age 52

SVP Worldwide Exploration, $300,000 salary, $350,000 bonus



Marathon Oil Company SVP Worldwide ExplorationRecent Work Highlights

Marathon Oil Corporation2002: SVP Worldwide Exploration, $290,000 salary, $215,000 bonus♦

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Vastar Resources, Inc.Last position held, Acting VP Exploration and Land♦

•

Biography

Prior to joining Marathon in 2000, Mr. Behrman had served since 1996 as exploration manager for Vastar Resources Inc.'s





Gulf of Mexico deepwater division. While with Vastar, Mr. Behrman assumed the additional responsibilities ofacting−vice president of Exploration and Land during 2000. Mr. Behrman holds a Bachelor of Science degree in geologyfrom the University of California at Los Angeles and a doctorate degree in geology from the University of California,Berkley. Mr. Behrman began his career in 1978 in Unocal's geothermal division and subsequently gained more than 15years of experience with British Petroleum in a range of exploration and production assignments throughout the UnitedStates.

Source: Company Web Site, 2003

Steven B. Hinchman, Age 44

SVP Worldwide Production, $300,000 salary, $325,000 bonus



Marathon Oil Company SVP Worldwide ProductionRecent Work Highlights

Marathon Oil Corporation2002: SVP Production Operations, $250,000 salary, $290,000 bonus♦

•

Biography

Mr. Hinchman was appointed to this position in September 2000. Mr. Hinchman joined Marathon in 1980 as a fieldengineer, progressing through a series of technical, staff, and managerial positions in domestic and international upstreamorganizations, and began managing Marathon's Mid−Continent region in 1999. Mr. Hinchman holds a bachelor's degree inpetroleum engineering from Pennsylvania State University and a master's degree in petroleum engineering from theColorado School of Mines.


Steven J. Lowden, Age 43

SVP Business Development, $300,000 salary, $325,000 bonus

Recent Work Highlights

Marathon Oil Corporation2002: SVP Business Development, $290,000 salary, $215,000 bonus♦ 2001: SVP Business Development, $275,000 salary, $300,000 bonus♦

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Biography

Prior to joining Marathon Oil Company in 2000, Mr. Lowden was an executive director of the Board of Power andresponsible for exploration, production, commercial, and business development. He joined London−based Premier Oil in1987, and has extensive business development experience in Asia, Australia, the Caribbean, Europe, the Middle East, andNorth Africa. Mr. Lowden earned a Bachelor of Science degree with honors in pure mathematics from Exeter University



in Exeter, England, and a Master of Science degree in petroleum engineering from Imperial College in London.


Jerry Howard, Age 54

SVP Corporate Affairs, $290,000 salary, $260,000 bonus


Marathon Oil Corporation2001: SVP Corporate Affairs, $255,000 salary, $325,000 bonus♦

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Biography

Mr. Howard began his career in 1975 as an internal auditor at Marathon Oil Company in Findlay, Ohio. He wastransferred to the Marathon Tax department in 1976, where he progressed through a series of supervisory and managerialposts until 1986 when he was named manager of Tax Compliance and Planning. In 1988 he was appointed general taxmanager and in 1993, director of Tax and Financial Planning. Mr. Howard was appointed Marathon's vice president ofHuman Resources and Environment in 1997 and became vice president of Taxes in 1998 at USX Corporation inPittsburgh, Pennsylvania. He began his current assignment as Marathon Oil Corporation's senior vice president ofCorporate Affairs on January 1, 2002. Mr. Howard was born in Social Circle, Georgia. In 1970 he earned a bachelor'sdegree in accounting from Morris Brown College in Atlanta, Georgia, and a Master of Business Administration degree in1972 from Northwestern University in Evanston, Illinois. He also is a certified public accountant.


Janet F. Clark, Age 48

SVP and CFO



Marathon Oil Company SVP and CFO

Universal Compression Holdings, Inc. DirectorRecent Work Highlights

Nuevo Energy Company2002: SVP and CFO, $195,000 salary, $97,500 bonus♦ 2001: SVP and CFO, $13,375 salary, $3,339 bonus♦

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Santa Fe Snyder Corp.Last position held, EVP, Corporate Development and Administration♦

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Biography

Clark graduated from Harvard University in 1977 with a bachelor of arts degree in Economics. She later earned a masterof business administration degree in finance from the Wharton School of the University of Pennsylvania in 1982. Beforejoining the energy industry, Clark was an investment banker specializing in corporate finance for 12 years, primarily withThe First Boston Corporation, predecessor to Credit Suisse First Boston. Clark joined Santa Fe Energy Resources, Inc. aschief financial officer in 1997, and was named senior vice president and chief financial officer in 1998. Following themerger of Santa Fe Energy and Snyder Oil in 1999, she assumed the role of executive vice president of CorporateDevelopment and Administration, with responsibility for corporate development, internal auditing, human resources,information technology, purchasing, office services, security and environmental, health and safety. Clark joined NuevoEnergy, based in Houston, in 2001 in her most recent position as senior vice president & chief financial officer. While atNuevo, she has been responsible for all finance, accounting, investor relations and information technology functionswithin the company, serving as the direct point of contact with investment and commercial banks, Wall Street analystsand rating agencies. Clark serves on the Board of Directors of Universal Compression Holdings, Inc., which trades on theNew York Stock Exchange under the ticker symbol UCO.

Source: Company Press Release, December 4, 2003

William F. Schwind Jr., Age 58

SVP, General Counsel, and Secretary


Marathon Oil CorporationTitle held until 2003: VP, General Counsel, and Secretary♦

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Biography

Mr. Schwind joined Marathon's law organization in Findlay, Ohio, in 1974 and subsequently held various legal andgovernmental affairs positions until 1983 when he moved to Jakarta, Indonesia, as a commercial contract manager. Mr.Schwind returned to the United States in 1984 and subsequently became general attorney for Marathon's refining,marketing, supply, and transportation (downstream) activities. He assumed responsibilities as Delhi Gas PipelineCorporation's senior vice president of Administration, General Counsel and Secretary in Dallas in 1991. He was namedGeneral Counsel and Secretary of Marathon Oil Company in 1992. Mr. Schwind was born in Chicago, Illinois, in 1944.He holds a Bachelor of Science degree in English literature and a Doctor of Law degree from Loyola University ofChicago. Mr. Schwind is a member of the American Bar Association and the American Corporate Counsel Association,and currently serves as chairman of the General Committee of Law of the American Petroleum Institute.


Albert G. Adkins, Age 55

VP Accounting and Controller

Biography

Albert G. Adkins is vice president of Accounting and controller at Marathon Oil Corporation. Al Adkins was born inHuntington, West Virginia. He has a bachelor's degree in accounting from Marshall University in Huntington. Mr. Adkins


is a certified public accountant and a certified management accountant. After spending six years in the public accountingsector, Adkins joined USX Corporation in 1979 via the acquisition of Novamont and became manager of Accounting. Hesubsequently held a variety of accounting positions with the former USS Chemicals Division and USX Corporation andwas promoted to director−general and consolidation accounting in 1989. Adkins was named director of ConsolidatedIncome Taxes in 1992 and was appointed vice president of Finance and Accounting for the former Delhi Gas PipelineCorporation in 1996. He was named assistant comptroller for USX at the Pittsburgh headquarters in 1997 and becamecomptroller for USX in 2000. He was named vice president and controller for Marathon Oil Corporation in 2002.


Eileen M. Campbell, Age 44

VP Human Resources

Biography

Eileen M. Campbell is vice president of Human Resources at Marathon Oil Corporation. Ms. Campbell was appointed toher current position in September 2000. Ms. Campbell's career spans over 20 years, focusing heavily on lobbying,government affairs, and management. She joined Marathon at the Houston headquarters in 1991 as manager ofGovernment Affairs, lobbying for Marathon in Texas, Louisiana, Oklahoma, and New Mexico. In July 1998, she wasappointed director of State Governmental Affairs for Marathon's parent company, USX Corporation. Prior to joiningMarathon, Ms. Campbell was employed by United Gas Pipe Line Company as a lobbyist. Previously, she worked foreight years in a number of positions with the National Association of Manufacturers (NAM). After several promotions,Campbell was named assistant division manager for NAM's Southern Division. In this role she assumed direction of themarketing, sales, membership services, and public affairs functions. Her responsibilities encompassed multiple staffs andactivities in 21 southern states. Ms. Campbell began her career as a lobbyist for the Governor of New Jersey withCongress and the federal government in Washington, D.C. A native of New Jersey, Campbell holds a bachelor's degreefrom the University of Maryland. She resides in Houston, Texas, with her husband and two teen−aged daughters.

Source: Company Press Release, 2004

Alard (Al) Kaplan

VP Major Projects

Biography

Kaplan graduated from the University of Missouri at Rolla in 1972 with a bachelor of science degree in civil engineering.He joined Mobil Oil Company in 1973 as a project engineer in the company's refining and marketing segment and laterbecame a member of the project management team for Mobil's LNG facilities in Indonesia. From 1978 to 1990, Kaplanserved as project manager for a variety of projects in the Gulf of Mexico and the North Sea, ultimately leading themanagement of Mobil's North Sea projects. In the early 1990s, he was project manager for the development of a gas fieldin Indonesia, which included gas plants and offshore exploration and production. Following his Indonesian projectassignment, Kaplan was transferred to the Qatargas LNG project where he served as Mobil's representative on the projectShareholder's Board and led the completion of the design phase and issuance of the engineering, procurement andconstruction bid package and selection of a contractor. He also served as project manager of the Ras Laffan LNG projectin Qatar throughout the front−end engineering and design phase of that project. In 1995, Kaplan joined Triton EnergyLimited as technical manager for a gas field under development in Malaysia. In this role, he was responsible for projectimplementation. In 1999, he was appointed project manager for the Ceiba Field Development in Equatorial Guinea.Following Amerada Hess' acquisition of Triton in 2001, Kaplan joined Foster Wheeler in his most recent position as


Director of LNG. In this role, he has been responsible for the management of business development and execution for thecompany's LNG project group, as well as holding significant responsibility for sales and commercial functions.

Source: Company Press Release, November 19, 2003

Kenneth L. Matheny, Age 55

VP Investor Relations


Marathon Oil Corporation2001: VP Investor Relations, $288,750 salary, $300,000 bonus♦

•

Biography

Kenneth L. Matheny is vice president of Investor Relations & Public Affairs at Marathon Oil Corporation. Mr. Mathenywas born in Akron, Ohio, and has a bachelor's degree in accounting from the University of Akron and an MBA fromBowling Green State University. He joined Marathon Oil Company in 1977 as an advanced tax analyst and held a seriesof more responsible posts in Marathon's tax organization. In 1988, he was named director of corporate finance andbecame director, human resources in 1989. He was appointed vice president, human resources and environment forMarathon in 1994. He was named vice president and comptroller at USX Corporation Pittsburgh headquarters in 1997,and was named vice president, investor relations for USX Corporation in April 2000. He assumed his current position onJanuary 1, 2002. Mr. Matheny is a member of the American Institute of Certified Public Accountants, National InvestorRelations Institute and the Petroleum Investor Relations Association. He participated in the Stanford University executiveprogram in 1991.


James F. Meara, Age 49

VP Tax

Biography

James F. Meara is vice president of Tax at Marathon Oil Corporation. Mr. Meara joined Marathon Oil Company in 1980as a tax analyst and moved through a series of posts in the Tax department, becoming manager of Tax Audit Systems &Planning in 1988. In 1995, he was named commercial director of Sakhalin Energy in Moscow, Russia. In 1997, Mr.Meara was appointed Tax manager of Marathon Oil, and in 2000 was appointed controller. Mr. Meara was appointed tohis current position as vice president of Tax on January 1, 2002. Mr. Meara is a native of Fairlawn, New Jersey. In 1980,he earned a bachelor's degree in accounting from the University of Kentucky and a Master of business administrationfrom Bowling Green State University in 1987. Mr. Meara is a member of the American Institute of Certified PublicAccountants.


Paul C. Reinbolt, Age 47


VP Finance and Treasurer

Biography

Paul Reinbolt is vice president of Finance and Treasurer at Marathon Oil Corporation. Mr. Reinbolt was born in ChapelHill, North Carolina, and has a bachelor's degree in accounting and an MBA from Miami University in Oxford, Ohio. Mr.Reinbolt began his career in 1980 as a financial analyst with Marathon Oil Company in Findlay, Ohio, and later waspromoted to advanced financial analyst. He transferred to Marathon's headquarters in Pittsburgh in 1984 as seniorfinancial representative, became short−term investment manager in New York in 1986 and manager of Treasury in NewYork in 1987. Reinbolt returned to Pittsburgh as director of Corporate Financial Analysis in 1991 and was named assistanttreasurer of Corporate Finance in 1994. In 1998, he was appointed manager of Finance andAdministration−Production−United Kingdom for Marathon and relocated to London. Reinbolt was named comptroller forU.S. Steel in Pittsburgh in 2000. Paul Reinbolt relocated to Marathon's headquarters in Houston and was named vicepresident Finance and Treasurer in 2001.


Daniel J. Sullenbarger, Age 50

VP Health Enviroment and Safety

Biography

Daniel J. Sullenbarger is vice president of Health, Environment & Safety at Marathon Oil Corporation. Mr. Sullenbargerjoined Marathon Oil Company in 1975 and held a number of posts in the law organizations at Marathon offices inFindlay, London, and Houston. After serving in three senior counsel positions in Houston, he was appointed generalattorney−Refining, Marketing, Supply & Transportation in Findlay, Ohio, in 1991. In 1994, he was appointed to theposition of group counsel−Worldwide Exploration & Production in Houston. In September 1998, Mr. Sullenbarger wasappointed vice president of Human Resources & Environment and in September 2000 was appointed to his currentposition of vice president of Health, Environment & Safety. Mr. Sullenbarger was born in Greenville, Ohio, in 1951. Heearned an undergraduate degree in political science from Bowling Green State University in 1973 and a law degree fromOhio Northern University in 1976. He is licensed to practice before the Supreme Court of Ohio and Texas. In 2000, heattended the Stanford Executive Program and is a member of the API HES General Committee.


Thomas K. Sneed

CIO

Biography

Thomas K. Sneed is Chief Information Officer at Marathon Oil Corporation. Mr. Sneed began his career in 1981 as acomputer applications programmer at Marathon in Findlay, Ohio. He was transferred to the Data Base Managementdepartment in 1984, where he progressed through a series of technical positions until 1992 when he was named supervisorof Corporate Systems and Programming. In 1997, Mr. Sneed was named manager of Information Technology Services:Downstream Computing and, later that year, served as manager of Information Technology Marketing & AccountingApplications for Marathon Ashland Petroleum LLC. Mr. Sneed transferred to Speedway SuperAmerica LLC in Enon,Ohio, in 1998 as manager of Computer Services. He was appointed vice president of Information Technology Services at


Speedway SuperAmerica LLC in 2000. Mr. Sneed returned to Marathon Ashland Petroleum LLC in Findlay, Ohio, in2002 as manager of Information Technology Services. He began his current assignment in Houston, Texas, as MarathonOil Corporation's Chief Information Officer in 2003. Mr. Sneed was born in Dayton, Ohio, and has a bachelor's degree inComputer & Information Science from Ohio State University in Columbus, Ohio.


Gary R. Heminger

President, Marathon Ashland Petroleum LLC



Marathon Ashland Petroleum LLC PresidentRecent Work Highlights

Marathon Ashland Petroleum LLCTitle held until 2001: EVP, Supply, Transportation, and Marketing♦

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Charles F. Bolden Jr., Age 57

Director

Biography

Mr. Charles F. Bolden, Jr. received a Bachelor of Science degree from the U.S. Naval Academy, a Master of Sciencedegree in systems management from the University of Southern California, and is a graduate of the U.S. Naval Test PilotSchool at Patuxent River, Maryland. He has received Honorary Doctorates from several distinguished universities. Hewas a space shuttle pilot astronaut for the National Aeronautics and Space Administration (NASA) for 13 years, flyingfour space missions. Mr. Bolden was assigned Deputy Commanding General, 1MEF, Marine Forces, Pacific in 1997. Heserved as Commanding General, 1 MEF (FWD) for Operation Desert Thunder in Kuwait from February to June 1998. InJuly 1998, he was promoted to Major General serving as the Commanding General of the Third Marine Aircraft Wing.Mr. Bolden retired from the United States Marine Corps on January 1, 2003 after serving 34 and a half years. Mr. Boldenhas been awarded a number of military and NASA decorations. Mr. Bolden was the President and Chief Operating Officerof American PureTex Water Corporation and PureTex Water Works from January to April 2003. He is currently a SeniorVice President at TechTrans International, Inc. Mr. Bolden is a member of the Board of Trustees of the University ofSouthern California.


David A. Daberko, Age 58

Director






National City Corporation Chairman and CEO $1,000,000 $1,000,000

OMNOVA Solutions Inc. DirectorRecent Work Highlights

National City Corporation2001: Chairman and CEO, $1,000,000 salary, $750,000 bonus♦

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Biography

Mr. Daberko graduated from Denison University with a BA and from Case Western Reserve University with an MBA. Hejoined National City Bank in 1968 as a management trainee and held a number of management positions within thecompany. In 1985 he led the assimilation of the former BancOhio National Bank into National City Bank, Columbus. In1987 Mr. Daberko was elected deputy chairman of the corporation and president of National City Bank in Cleveland. Heserved as president and chief operating officer from 1993 until 1995 when he was named Chief Executive Officer. Mr.Daberko is a director of OMNOVA Solutions, Inc. He is a trustee of Case Western University, University HospitalsHealth System and Cleveland Tomorrow.


William L. Davis, Age 60

Director



R.R. Donnelley & Sons Company Chairman $900,000 $37,877Recent Work Highlights

R.R. Donnelley & Sons Company2002: Chairman, President, and CEO, $900,000 salary♦ 2001: Chairman, President, and CEO, $900,000 salary, $63,180 bonus♦ Title held until 2004: Chairman, President, and CEO♦

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Biography

Mr. Davis graduated from Princeton University in 1965 with a BA degree. From 1977 through 1997 he held a variety ofpositions with Emerson Electric Company, including the position of President of two of its subsidiaries, Appleton ElectricCompany and Skil Corporation, and Senior Executive Vice President for the Emerson Tool Group, the Industrial Motorsand Drives Group and the Process Control Group. Mr. Davis joined R.R. Donnelley & Sons Company in 1997 as theChairman and Chief Executive Officer. In 2001, he further accepted the responsibility as President of the company. Mr.Davis is a director of the U.S. Chamber of Commerce, the Chicago Urban League, Evanston Northwestern Healthcare,and the YMCA of Metropolitan Chicago, and a former director of Mallinckrodt. He is a trustee of NorthwesternUniversity.








Shirley Ann Jackson, Age 58

Director



AT&T Corp. Director

FedEx Corporation Director

KeyCorp Director

Medtronic, Inc. Director

Public Service Enterprise Group Incorporated Director

Sealed Air Corporation Director

United States Steel Corporation DirectorRecent Work Highlights

SCI Systems, Inc.Last position held, Director♦

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Biography

Dr. Jackson received a BS degree in physics in 1968, and a Ph.D. in theoretical elementary particle physics in 1973, fromthe Massachusetts Institute of Technology. She was a research associate at the Fermi National Accelerator Laboratory, avisiting scientist at the European Center for Nuclear Research and, from 1976 to 1991, a theoretical physicist at the formerAT&T Bell Laboratories. She was a professor of theoretical physics at Rutgers University from 1991 to 1995. She wasChairman of the U.S. Nuclear Regulatory Commission from 1995 to 1999. Dr. Jackson was named President ofRensselaer Polytechnic Institute in 1999. She is a director of New York Stock Exchange, Inc., United States SteelCorporation, Federal Express Corporation, AT&T, Medtronic, Inc., and Public Service Enterprise Group. Dr. Jacksonholds 23 honorary degrees, was awarded the New Jersey Governor's Award in Science in 1993, and was inducted into theNational Women's Hall of Fame in 1998.


Philip Lader, Age 58

Director



The AES Corporation Director

WPP Group plc Chairman











Biography

Ambassador Lader received a bachelor's degree from Duke University (Phi Beta Kappa), a master's degree from theUniversity of Michigan and a juris doctor degree from Harvard Law School, after graduate studies in law at OxfordUniversity. Awarded honorary doctorates by 14 universities and colleges, he served as U.S. Ambassador to the Court ofSt. James's from 1997 through 2001 and was White House Deputy Chief of Staff, Deputy Director of the Office ofManagement and Budget, and Administrator of the U.S. Small Business Administration. Formerly President of Sea PinesCompany and Executive Vice President of Sir James Goldsmiths's U.S. holding company, he is non−executive Chairmanof WPP Group plc, the global advertising/communications services company, which includes J. Walter Thompson, Ogilvy& Mather, and Young & Rubicam, a Senior Advisor to Morgan Stanley International, and a partner in the law firm ofNelson, Mullins, Riley & Scarborough. Ambassador Lader serves on the Boards of Directors of WPP Group plc, Randand AES Corporations and the British Museum.


Charles R. Lee, Age 64

Director



The Procter & Gamble Company Director

The DIRECTV Group, Inc. Director

United States Steel Corporation Director

United Technologies Corporation DirectorRecent Work Highlights

GTE CorporationLast position held, Chairman and CEO♦

•

Verizon Communications Inc.2002: Chairman, $1,951,900 salary, $1,575,000 bonus♦ 2001: Chairman, $1,750,000 salary, $2,844,000 bonus♦

•

Biography

Mr. Lee received a Bachelor's degree in metallurgical engineering from Cornell University and an MBA with distinctionfrom the Harvard Graduate School of Business. He served in various financial and management positions beforebecoming Senior Vice President−Finance for Penn Central Corp. and then Columbia Pictures Industries Inc. In 1983 hejoined GTE Corporation (which merged with Bell Atlantic Corporation to form Verizon Communications in 2000) asSenior Vice President of Finance and in 1986 was named Senior Vice President of Finance and Planning. He was electedPresident, Chief Operating Officer and Director in December 1988 and was elected Chairman of the Board and ChiefExecutive Officer of GTE in May 1992. He was elected to his present position with Verizon Communications on June 30,2000. Mr. Lee is a director of United States Steel Corporation, The Procter & Gamble Company, United TechnologiesCorporation, the Stamford Hospital Foundation, and the New American Schools Development Corporation. He is amember of The Business Council, The Business Roundtable, The Conference Board and the New American RealitiesCommittee of the National Planning Association. He is also a Trustee Emeritus and Presidential Councillor of CornellUniversity.








Dennis H. Reilley, Age 50

Director



Entergy Corporation Director

Praxair, Inc. Chairman, President, and CEO $955,000 $1,450,000Recent Work Highlights

Praxair, Inc.2002: Chairman, President, and CEO, $912,500 salary, $1,150,000 bonus♦ 2001: Chairman, President, and CEO, $856,250 salary, $750,000 bonus♦ 2000: Chairman, President, and CEO, $657,971 salary, $660,000 bonus♦

•

Biography

Mr. Reilley graduated from Oklahoma State University with a BS in Finance in 1978. He began working at Conoco, Inc.in 1975 as a pipeline engineer and in 1979 was promoted to Executive Assistant to the Chairman. Mr. Reilley held manykey positions at E. I. Du Pont de Nemours & Company which purchased Conoco in 1981. He held senior managementpositions in DuPont's Chemicals and Specialties business including Vice President and General Manager of SpecialChemicals. In May 1999 he was appointed Executive Vice President and Chief Operating Officer of DuPont withresponsibility for pigments and chemicals, specialty polymers, nylon and polyester. Mr. Reilley became Chairman,President and Chief Executive Officer of Praxair, Inc. in 2002. Mr. Reilley is a director of Entergy Corporation. Reilley ispast Chairman of the American Chemistry Council.


Seth E. Schofield, Age 64

Director



Calgon Carbon Corporation Director


Candlewood Hotel Company, Inc.Last position held, Director♦

•







Biography

Mr. Schofield graduated from the Harvard Business School Program for Management Development in 1975. He served invarious corporate staff positions after joining USAir in 1957 and became Executive Vice President−Operations in 1981.Mr. Schofield served as President and Chief Operating Officer from 1990 until 1991. He was elected President and ChiefExecutive Officer in 1991 and became Chairman of the boards of USAir Group and USAir, Inc. in 1992. He retired inJanuary 1996. Mr. Schofield is a director of United States Steel Corporation, Calgon Carbon Corp. and Candlewood HotelCompany, Inc. He is also an Advisory Board member of Desai Capital Management.


Douglas C. (Doug) Yearley, Age 68

Director



Heidrick & Struggles International, Inc. Director

Lockheed Martin Corporation Director


Cyprus Amax Minerals CompanyLast position held, Chairman, President, and CEO♦

•

Biography

Mr. Yearley graduated from Cornell University with a Bachelor's degree in metallurgical engineering and attended theProgram for Management Development at Harvard Business School. He joined Phelps Dodge in 1960 in projectdevelopment. He held several key positions before being elected Executive Vice President and a director in 1987,Chairman and Chief Executive Officer in 1989 and President in 1991. He retired in May, 2000. He is a director of UnitedStates Steel Corporation and Lockheed Martin Corporation. He was a director of J.P. Morgan & Co. Incorporated andMorgan Guaranty Trust Company of New York from 1993 to 2000, and Southern Peru Copper Corporation from 1991 to2000. He is Chairman of the International Council on Mining and Metals, director of the Compatible Ventures Group ofThe Nature Conservancy, member of the National Council of the World Wildlife Fund, and graduate member of TheBusiness Council.






Overview

In the long−running competition for profits in the oil and gas industry, Marathon Oil (formerly USX Corporation) iskeeping up a steady pace. Through its Marathon Oil Company subsidiary, the company explores for and produces oil andnatural gas principally in 10 countries, including Canada, the UK, and the US. It has net proved reserves of 1 billionbarrels of oil equivalent. Marathon Oil owns 62% of Marathon Ashland Petroleum (MAP), a joint venture with Ashland.MAP operates seven refineries with an aggregate capacity of 935,000 barrels of crude oil a day. MAP also has 5,500 USretail gas outlets. In 2004 Ashland agreed to sell its stake in MAP to Marathon Oil for about $3 billion.

Marathon Oil was created when the former USX abandoned its holding company structure and spun off its steeloperations in 2001. The oil company's MAP unit holds stakes in several pipelines, operates asphalt and light−productterminals, and owns seven refineries in the US.

The company is expanding exploration in key areas such as the Gulf of Mexico and the North Sea, as well as Gabon,Republic of Congo, and Equatorial Guinea. Marathon returned to Russia in 2003 with the acquisition of Khanty MansiyskOil. Seeking energy revenues beyond oil and gas, the company is investing in independent electric power generationprojects outside North America.

Marathon has acquired Globex Energy, a privately held exploration and production company with assets in West Africa,for $155 million. In an effort to cut debt and exit its non−core operations, the company sold its interests in its Canadianbusiness unit to Husky Energy for $588 million.





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History

Marathon Oil was founded in 1887 in Lima, Ohio, as The Ohio Oil Company by 14 independent oil producers to competewith Standard Oil. Within two years Ohio Oil was the largest producer in the state. This success did not go unnoticed byStandard Oil, which proceeded to buy Ohio Oil in 1889. In 1905 the company moved to Findlay, Ohio, where it remaineduntil it relocated to Houston in 1990.

When the US Supreme Court broke up Standard Oil in 1911, Ohio Oil became independent once again and expanded itsexploration activities to Kansas, Louisiana, Texas, and Wyoming.

In a 1924 attempt to drill three wells west of the Pecos River in Texas, Ohio Oil mistakenly drilled three dry holes to theeast. The company was on the verge of abandoning the project until a geologist reported the error. Ohio Oil drilled in theright area and the wells flowed. That year the company bought Lincoln Oil Refining −− its first venture outside crude oilproduction.

Ohio Oil continued its expansion into refining and marketing operations in 1927. Following WWII the company beganinternational exploration. Through Conorada Petroleum (later Oasis), a partnership with Continental Oil (later Conoco andthen ConocoPhillips) and Amerada Hess, the company explored in Africa and South and Central America. Conorada'sbiggest overseas deal came in 1955, when it acquired concessions on more than 60 million acres in Libya.

In 1962 the company acquired Plymouth Oil and changed its name to Marathon Oil Company; it had been using theMarathon name in its marketing activities since the late 1930s. Marathon added a 200,000−barrel−a−day refinery inLouisiana to its operations in 1976 when it acquired ECOL Ltd.

After a battle with Mobil, U.S. Steel acquired Marathon in 1982 for $6.5 billion. U.S. Steel changed its name to USX in1986 and acquired Texas Oil & Gas. That year the US government introduced economic sanctions against Libya, puttingMarathon's Libyan holdings in suspension.

USX consolidated Texas Oil and Marathon in 1990. After a protracted struggle with corporate raider Carl Icahn, USXsplit Marathon and U.S. Steel into two separate stock classes in 1991. A third offering, USX−Delhi Group (the pipelineoperator division), followed the next year. (Koch Industries bought USX−Delhi in 1997.)

A consortium led by USX−Marathon signed an agreement with the Russian government in 1994 to develop oil and gasfields off Sakhalin Island (although USX−Marathon sold its stake in the project in 2000). In 1996 Marathon formed aventure, ElectroGen International, with East Coast utility DQE to develop power generation projects in the Asia/Pacificregion.

In 1998 Marathon and Ashland merged their refining and retail operations, creating Marathon Ashland Petroleum, orMAP, of which Marathon owns 62%. That year Marathon, in a deal that boosted its reserves by 18%, acquiredCalgary−based Tarragon Oil and Gas.

As part of a restructuring drive, in 1999 MAP sold its crude oil gathering business, Scurlock Permian, to Plains AllAmerican Pipeline. With oil prices rebounding, Marathon ramped up its oil exploration in 2000, buying more deepwaterleases in the Gulf of Mexico and acquiring an interest in an oil and gas play offshore the Republic of Congo.

The company bought Pennaco Energy, a Colorado−based producer of coalbed methane gas, for about $500 million in2001, and it agreed to buy CMS Energy's Equatorial Guinea (West Africa) oil and gas assets in a $993 million deal thatwas completed in 2002. At the end of 2001, USX spun off U.S. Steel and changed the name of the remaining company toMarathon Oil Corporation.


Products/Operations

Marathon Oil conducts exploration and development activities in Angola, Canada, the Republic of Congo, EquatorialGuinea, Gabon, Ireland, the Netherlands, Norway, Russia, the UK, and the US.

2003 Sales

$ mil. % of total

US 39,37796

UK 849 2

Canada 413 1

Equatorial Guinea 119 −

Other countries 205 1

Adjustments 271 −

Total 41,234100

2003 Sales

$ mil. % of total

Refining, marketing & transportation 33,50881

Exploration & production 3,445 9

Other 4,281 10

Total 41,234

Selected Subsidiaries

Marathon Ashland Petroleum LLC (62%)• Speedway SuperAmerica LLC• Marathon Canada Limited• Marathon International Oil Company• Marathon International Petroleum Ireland Limited• Marathon Oil Company• Marathon Oil U.K., Ltd• Marathon Petroleum Gabon LDC (Cayman Islands)• Marathon Petroleum Investment, Ltd.•

Archived Charts

Selected Subsidiaries

Marathon Ashland Petroleum LLC (62%)• Speedway SuperAmerica LLC• Marathon Canada Limited• Marathon International Oil Company• Marathon International Petroleum Ireland Limited• Marathon Oil Company•


Marathon Oil U.K., Ltd• Marathon Petroleum Gabon LDC (Cayman Islands)• Marathon Petroleum Investment, Ltd.•

2002 Sales % of totalUS 92Canada 4UK 3Other countries 1

Total 100


Other Resources Available On Hoover's Online

News for Marathon Oil (last 90 days)

Company Press Release Archive

Other Resources

Headquarters Map• SEC Filings

10−K Filings♦ •

Stock Quote• Stock Chart• Earnings Estimates• ValuEngine Analysis• Investor Relations • Financial Data Definitions• Market Data Definitions• Comparison Data Definitions• Historical Financials & Employees Definitions•

Related Products From Our Trusted Partners

Buy Reports and Books

D&B Business/Credit Reports: Marathon Oil Corporation(D&B, Feb 1, 2004, Business Reports)

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Marathon Oil Corporation: Company Profile(Datamonitor, Feb 1, 2004, Business Reports)

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SGA Lists − Individual Company Contact List for MRO(Sheila Greco and Associates, Sep 30, 2003, Business Reports)

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Retail Travail: Selling in a Wal−Mart World(Hoover's, Inc., Feb 1, 2004, Business Reports)

•

Gas Stations & Convenience Stores Major Companies Report(Harris Industry Reports, Aug 12, 2003, Business Reports)

•

Gasoline Retailers: Financial Analysis Profiles(BizMiner, Dec 23, 2003, Business Reports)

•

Fuel Dealers in the US(IBISWorld, Dec 9, 2003, Business Reports)

•

Plunkett's Retail Industry Almanac 2003(Plunkett Research, Ltd., Dec 4, 2002, Books)

•

Additional 3rd Party Libraries

Additional Research On Marathon Oil

Corporate Hierarchy •


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Annual Financials

All amounts in millions of US Dollars

Income Statement Dec 03 Dec 02 Dec 01

Revenue 36,678.0 31,464.0 33,019.0

Cost of Goods Sold 32,296.0 23,674.0 23,255.0

Gross Profit 4,382.0 7,790.0 9,764.0

Gross Profit Margin 11.9% 24.8% 29.6%

SG&A Expense 1,095.0 1,029.0 942.0

Depreciation & Amortization 1,175.0 1,201.0 1,236.0

Operating Income 1,813.0 1,052.0 2,907.0

Operating Margin 4.9% 3.3% 8.8%

Nonoperating Income 271.0 314.0 47.0

Nonoperating Expenses 485.0 4,776.0 4,852.0

Income Before Taxes 1,898.0 1,098.0 2,781.0

Income Taxes 584.0 389.0 759.0

Net Income After Taxes 1,314.0 709.0 2,022.0

Continuing Operations 1,012.0 536.0 1,318.0

Discontinued Operations 305.0 0.0 (1,153.0)

Total Operations 1,317.0 536.0 165.0

Total Net Income 1,321.0 516.0 157.0

Net Profit Margin 3.6% 1.6% 0.5%

Diluted EPS from Continuing Operations ($) 3.26 1.72 (2.73)

Diluted EPS from Discontinued Operations ($) 0.99 0.00 0.00

Diluted EPS from Total Operations ($) 4.25 1.72 (2.73)

Diluted EPS from Total Net Income ($)

Dividends per Share 0.96 0.92 0.92

Balance Sheet Dec 03 Dec 02 Dec 01

Assets

Current Assets

Cash 1,396.0 488.0 657.0

Net Receivables 2,530.0 1,854.0 1,772.0

Inventories 1,953.0 1,984.0 1,851.0


Other Current Assets 161.0 153.0 131.0

Total Current Assets 6,040.0 4,479.0 4,411.0

Net Fixed Assets 10,830.0 10,390.0 9,578.0

Other Noncurrent Assets 2,612.0 2,943.0 2,140.0

Total Assets 19,482.0 17,812.0 16,129.0

Liabilities and Shareholders' Equity Dec 03 Dec 02 Dec 01

Current Liabilities

Accounts Payable 3,352.0 2,847.0 2,431.0

Short−Term Debt 272.0 161.0 215.0

Other Current Liabilities 583.0 651.0 822.0

Total Current Liabilities 4,207.0 3,659.0 3,468.0

Long−Term Debt 4,085.0 4,410.0 3,432.0

Other Noncurrent Liabilities 1,615.0 1,245.0 1,029.0

Total Liabilities 13,407.0 12,730.0 11,189.0

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0

Common Stock Equity 6,075.0 5,082.0 4,940.0

Total Equity 6,075.0 5,082.0 4,940.0

Shares Outstanding (mil.) 310.4 309.9 309.4

Cash Flow Statement Dec 03 Dec 02 Dec 01

Net Operating Cash Flow 2,761.0 2,405.0 3,636.0

Net Investing Cash Flow (981.0) (2,666.0) (2,244.0)

Net Financing Cash Flow (888.0) 88.0 (1,290.0)

Net Change in Cash 908.0 (169.0) 98.0

Depreciation & Amortization 1,175.0 1,201.0 1,236.0

Capital Expenditures (2,144.0) (2,734.0) (2,145.0)

Cash Dividends Paid 0.0 (285.0) (341.0)

Data Definitions

Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia


http://www.mgfs.com

Quarterly Financials

All amounts in millions of US Dollars except per share amounts.

Income StatementQuarter

Ending Dec 03Quarter

Ending Sep 03Quarter

Ending Jun 03Quarter Ending

Mar 03Quarter

Ending Dec 02

Revenue 6,749.0 10,253.0 8,613.0 10,103.0 8,533.0

Cost of Goods Sold 8,905.0 7,998.0 7,467.0 7,983.0 6,352.0

Gross Profit (2,156.0) 2,255.0 1,146.0 2,120.0 2,181.0

Gross Profit Margin −− 22.0% 13.3% 21.0% 25.6%

SG&A Expense 395.0 249.0 277.0 207.0 441.0

Depreciation & Amortization 309.0 246.0 311.0 309.0 307.0

Operating Income 283.0 583.0 480.0 506.0 312.0

Operating Margin 4.2% 5.7% 5.6% 5.0% 3.7%

Nonoperating Income 70.0 75.0 62.0 67.0 142.0

Nonoperating Expenses (3,130.0) 1,232.0 123.0 1,163.0 1,174.0

Income Before Taxes 340.0 603.0 497.0 508.0 329.0

Income Taxes 106.0 191.0 144.0 175.0 100.0

Net Income After Taxes 234.0 412.0 353.0 333.0 229.0

Continuing Operations 199.0 280.0 248.0 303.0 194.0

Discontinued Operations 286.0 1.0 0.0 0.0 0.0

Total Operations 485.0 281.0 248.0 303.0 194.0

Total Net Income 485.0 281.0 248.0 307.0 194.0

Net Profit Margin 7.2% 2.7% 2.9% 3.0% 2.3%

Diluted EPS from ContinuingOperations ($)

0.64 0.90 0.80 0.98 0.62

Diluted EPS fromDiscontinued Operations ($)

0.93 0.00 0.00 0.00 0.00

Diluted EPS from TotalOperations ($)

1.57 0.90 0.80 0.98 0.62

Diluted EPS from Total NetIncome ($)

Dividends per Share 0.25 0.25 0.23 0.23 0.23

Balance SheetQuarter

Ending Dec 03Quarter

Ending Sep 03Quarter

Ending Jun 03Quarter Ending

Mar 03Quarter

Ending Dec 02

Assets


Current Assets

Cash 1,396.0 441.0 501.0 565.0 488.0

Net Receivables 2,530.0 2,350.0 2,321.0 2,494.0 1,854.0

Inventories 1,953.0 2,163.0 2,134.0 2,053.0 1,984.0

Other Current Assets 161.0 211.0 128.0 268.0 153.0

Total Current Assets 6,040.0 5,165.0 5,084.0 5,380.0 4,479.0

Net Fixed Assets 10,830.0 10,749.0 11,051.0 10,389.0 10,390.0

Other Noncurrent Assets 2,612.0 3,142.0 2,729.0 2,968.0 2,943.0

Total Assets 19,482.0 19,056.0 18,864.0 18,737.0 17,812.0

Liabilities andShareholders' Equity

QuarterEnding Dec 03

QuarterEnding Sep 03

QuarterEnding Jun 03

Quarter EndingMar 03


Current Liabilities

Accounts Payable 3,352.0 3,017.0 3,060.0 3,383.0 2,847.0

Short−Term Debt 272.0 286.0 434.0 435.0 161.0

Other Current Liabilities 583.0 763.0 696.0 746.0 651.0

Total Current Liabilities 4,207.0 4,066.0 4,190.0 4,564.0 3,659.0

Long−Term Debt 4,085.0 4,100.0 4,101.0 4,014.0 4,410.0

Other Noncurrent Liabilities 1,615.0 1,663.0 1,518.0 1,424.0 1,245.0

Total Liabilities 13,407.0 13,350.0 13,382.0 13,418.0 12,730.0

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0 0.0 0.0

Common Stock Equity 6,075.0 5,706.0 5,482.0 5,319.0 5,082.0

Total Equity 6,075.0 5,706.0 5,482.0 5,319.0 5,082.0

Shares Outstanding (mil.) 310.4 310.2 310.1 309.9 309.9

Cumulative Cash FlowStatement


QuarterEnding Sep 03

QuarterEnding Jun 03

Quarter EndingMar 03


Net Operating Cash Flow 2,761.0 1,751.0 1,078.0 606.0 2,405.0

Net Investing Cash Flow (981.0) (1,232.0) (821.0) (321.0) (2,666.0)

Net Financing Cash Flow (888.0) (559.0) (256.0) (212.0) 88.0

Net Change in Cash 908.0 (27.0) 13.0 77.0 (169.0)

Depreciation & Amortization 309.0 246.0 311.0 309.0 307.0

Capital Expenditures (2,144.0) (1,521.0) (1,069.0) (374.0) (2,734.0)


Cash Dividends Paid 0.0 (221.0) (143.0) (72.0) (285.0)

Data Definitions



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Historical Financials & Employees

Income Statement

YearRevenue

($ mil.)Net Income

($ mil.)Net Profit

MarginEmployees

Dec 03 36,678.0 1,321.0 3.6% 27,007

Dec 02 31,464.0 516.0 1.6% 28,166

Dec 01 33,019.0 157.0 0.5% 30,671

Dec 00 33,859.0 432.0 1.3% 30,892

Dec 99 24,212.0 654.0 2.7% 32,103

Dec 98 21,726.0 310.0 1.4% 43,513

Dec 97 15,668.0 456.0 2.9% 40,494

Dec 96 13,564.0 664.0 4.9% −−

Dec 95 13,871.0 (88.0) −− −−

Dec 94 12,757.0 321.0 2.5% −−

Stock History

YearStock Price ($) P/E Per Share ($)

FYHigh

FYLow

FYClose

High Low Earns. Div.BookValue

Dec 03 33.6 19.9 33.1 7.9 4.7 4.3 1.0 19.6

Dec 02 30.3 18.8 21.3 17.6 10.9 1.7 0.9 16.4

Dec 01 33.7 25.0 30.0 −− −− (2.7) 0.9 16.0

Dec 00 30.4 20.7 27.8 21.9 14.9 1.4 0.9 15.7

Dec 99 33.9 19.4 24.7 16.1 9.2 2.1 0.8 15.4

Dec 98 40.5 25.0 30.1 38.6 23.8 1.0 0.8 14.0

Dec 97 38.9 23.8 33.8 24.6 15.0 1.6 0.8 12.5

Dec 96 25.5 17.2 23.9 11.0 7.5 2.3 0.7 12.2

Dec 95 21.5 15.8 19.5 −− −− (0.3) 0.7 10.6

Dec 94 19.1 15.6 16.4 17.4 14.2 1.1 0.7 11.9

2003 Year−End Financials

Debt ratio 67.2%

Return on equity 21.7%

Cash ($ mil.) 1,396.0

Current ratio 1.44

Long−term debt ($ mil.) 4,085.0


Shares Outstanding (mil.) 310.4

Dividend yield 2.9%

Dividend payout 22.6%

Market Cap ($ mil.) 10,271.9

Data Definitions



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Market Data

Current Information

Last Close 23−Mar−2004 $33.13 Price/Sales Ratio 0.28

52−Week High $36.31 Price/Book Ratio 1.69

52−Week Low $22.48 Price/Earnings Ratio 7.80

60−Month Beta 0.7 Price/Cash Flow Ratio 4.13

Market Cap (mil.) $10,291.8Return on Assets 6.8%

Shares Outstanding (mil.) 310.6 Return on Equity 21.7%

Dividend Rate 1.00 Current Ratio 1.44

Dividend Yield 3.0% Long−Term Debt/Equity 0.67

# of Institutional Holders 1,084 % Owned by Institutions 79.6%

Latest Short Interest Ratio 2.00 Latest Net Insider Transactions 0.00

Growth Rates 12 Month 36 Month 60 Month

Revenue Growth 16.6% 2.0% 10.1%

EPS Growth 147.1% −− −−

Dividend Growth 4.3% 2.6% 2.8%

Data Definitions



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Comparison Data

Profitability Company Industry 1 Market 2

Gross Profit Margin 11.95% 23.95% 48.25%

Pre−Tax Profit Margin 5.17% 4.48% 6.92%

Net Profit Margin 3.59% 4.40% 4.05%

Return on Equity 21.7% 13.2% 7.9%

Return on Assets 6.8% 3.9% 1.3%

Return on Invested Capital 13.0% 7.5% 3.8%

Valuation Company Industry 1 Market 2

Price/Sales Ratio 0.28 0.61 1.37

Price/Earnings Ratio 7.80 14.06 33.17

Price/Book Ratio 1.69 1.83 2.66

Price/Cash Flow Ratio 4.13 5.52 13.40

Operations Company Industry 1 Market 2

Days of Sales Outstanding 24.83 57.63 58.63

Inventory Turnover 16.4 13.6 7.6

Days Cost of Goods Sold in Inventory 22 27 47

Asset Turnover 2.0 0.9 0.3

Net Receivables Turnover Flow 16.7 6.4 6.3

Effective Tax Rate 30.8% 31.4% 41.1%

Financial Company Industry 1 Market 2

Current Ratio 1.44 0.98 1.42

Quick Ratio 0.9 0.7 1.0

Leverage Ratio 3.21 3.36 5.95

Total Debt/Equity 0.72 0.80 1.42

Interest Coverage 9.60 3.30 2.30

Per Share Data ($) Company Industry 1 Market 2

Revenue Per Share 118.07 65.56 19.90

Fully Diluted Earnings Per Sharefrom Total Operations

4.25 2.84 0.82

Dividends Per Share 0.96 0.66 0.43

Cash Flow Per Share 8.02 7.23 2.03

Working Capital Per Share 5.90 (0.51) 2.26

Long−Term Debt Per Share 13.15 16.61 11.10

Book Value Per Share 19.56 21.88 10.24


Total Assets Per Share 62.71 73.54 60.91

Growth Company Industry 1 Market 2

12−Month Revenue Growth 16.6% 18.7% 7.0%

12−Month Net Income Growth 145.7% 73.7% 147.2%

12−Month EPS Growth 147.1% 73.2% 156.3%

12−Month Dividend Growth 4.3% 1.5% 4.9%

36−Month Revenue Growth 2.0% (7.2%) 2.5%

36−Month Net Income Growth 57.2% (22.4%) (9.3%)

36−Month EPS Growth −− (12.5%) (10.0%)

36−Month Dividend Growth 2.6% 16.1% 2.2%1Industry: Oil & Gas Refining/MrktngIndustry classifications are from Media General Financial Services, Inc. .

2 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

Data Definitions



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Competitive Landscape

KEY: Best of Group. Companies listed are Top Competitors.

Key NumbersMarathon

OilChevronTexaco

ExxonMobil

Royal Dutch/ShellGroup 1

Annual Sales ($mil.) 36,678.0 112,937.0 213,199.0 179,431.0

Employees 27,007 50,582 88,300 111,000

Market Cap ($mil.) 10,291.8 93,569.9 267,284.6 −−

ProfitabilityMarathon

OilChevronTexaco

ExxonMobil


Industry 2 Market 3

Gross Profit Margin 11.95% 28.54% 39.06% −− 23.95% 48.25%

Pre−Tax Profit Margin 5.17% 11.38% 15.32% −− 4.48% 6.92%

Net Profit Margin 3.59% 6.58% 9.83% −− 4.40% 4.05%

Return on Equity 21.7% 20.5% 23.3% −− 13.2% 7.9%

Return on Assets 6.8% 9.1% 12.0% −− 3.9% 1.3%

Return on Invested Capital 13.0% 15.7% 22.1% −− 7.5% 3.8%

ValuationMarathon

OilChevronTexaco

ExxonMobil


Industry 2 Market 3

Price/Sales Ratio 0.28 0.83 1.25 −− 0.61 1.37

Price/Earnings Ratio 7.80 12.25 12.94 −− 14.06 33.17

Price/Book Ratio 1.69 2.58 2.97 −− 1.83 2.66

Price/Cash Flow Ratio 4.13 7.31 8.90 −− 5.52 13.40

OperationsMarathon

OilChevronTexaco

ExxonMobil


Industry 2 Market 3

Days of Sales Outstanding 24.83 30.99 41.05 −− 57.63 58.63

Inventory Turnover 16.4 29.8 15.3 −− 13.6 7.6

Days Cost of Goods Soldin Inventory

22 12 24 −− 27 47

Asset Turnover 2.0 1.4 1.3 −− 0.9 0.3

Net Receivables TurnoverFlow

16.7 11.8 9.4 −− 6.4 6.3

Effective Tax Rate 30.8% 41.6% 33.7% −− 31.4% 41.1%

FinancialMarathon

OilChevronTexaco

ExxonMobil


Industry 2 Market 3

Current Ratio 1.44 1.21 1.20 −− 0.98 1.42

Quick Ratio 0.9 0.9 0.9 −− 0.7 1.0

Leverage Ratio 3.21 2.24 1.94 −− 3.36 5.95

Total Debt/Equity 0.72 0.35 0.11 −− 0.80 1.42



























Interest Coverage 9.60 27.90 155.40 −− 3.30 2.30

Per Share Data ($)Marathon

OilChevronTexaco

ExxonMobil


Industry 2 Market 3

Revenue Per Share 118.07 105.57 32.51 −− 65.56 19.90

Fully Diluted Earnings PerSharefrom Total Operations

4.25 7.14 3.15 −− 2.84 0.82

Dividends Per Share 0.96 2.86 0.98 −− 0.66 0.43

Cash Flow Per Share 8.02 11.97 4.58 −− 7.23 2.03

Working Capital PerShare

5.90 3.10 1.16 −− (0.51) 2.26

Long−Term Debt PerShare

13.15 10.18 0.73 −− 16.61 11.10

Book Value Per Share 19.56 33.93 13.71 −− 21.88 10.24

Total Assets Per Share 62.71 76.16 26.58 −− 73.54 60.91

GrowthMarathon

OilChevronTexaco

ExxonMobil


Industry 2 Market 3

12−Month RevenueGrowth

16.6% 23.2% 19.2% −− 18.7% 7.0%

12−Month Net IncomeGrowth

145.7% 556.0% 82.9% −− 73.7% 147.2%

12−Month EPS Growth 147.1% 567.3% 87.5% −− 73.2% 156.3%

12−Month DividendGrowth

4.3% 2.1% 6.5% −− 1.5% 4.9%

36−Month RevenueGrowth

2.0% 0.0% 0.6% −− (7.2%) 2.5%

36−Month Net IncomeGrowth

57.2% (12.8%) 5.5% −− (22.4%) (9.3%)

36−Month EPS Growth −− (11.9%) 7.4% −− (12.5%) (10.0%)

36−Month DividendGrowth

2.6% −− 3.4% −− 16.1% 2.2%

1 Data unavailable.2 Industry: Oil & Gas Refining/MrktngIndustry classifications are from Media General Financial Services, Inc. .3 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

Data Definitions













http://www.mgfs.com/html/products/resource_center/industry_groups/definitions.shtml

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