23. Asset Retirement Obligations for Marathon

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MRO » Topics » 23. Asset Retirement Obligations

These excerpts taken from the MRO 10-K filed Feb 27, 2009.

21. Asset Retirement Obligations

The following summarizes the changes in asset retirement obligations:


(In millions)	2008			2007
Asset retirement obligations as of January 1	$	1,134		$	1,044
Liabilities incurred, including acquisitions		30			60
Liabilities settled		(94	)		(10	)
Accretion expense (included in depreciation, depletion and amortization)		66			61
Revisions to previous estimates		24			(17	)
Held for sale^(a)		(195	)		–
Deconsolidation of EGHoldings		–			(4	)

Asset retirement obligations as of December 31^(b)	$	965		$	1,134

^(a)	See Note 7 for information related to our assets held for sale.

^(b)	Includes asset retirement obligation of $2 and $3 million classified as short-term at December 31, 2008, and 2007.

106

Index to Financial Statements

MARATHON OIL CORPORATION

ALIGN="center">Notes to Consolidated Financial Statements

These excerpts taken from the MRO 10-K filed Feb 29, 2008.

23. Asset Retirement Obligations

The following summarizes the changes in asset retirement obligations.


(In millions)	2007			2006
Asset retirement obligations as of January 1	$	1,044		$	711
Liabilities incurred, including acquisitions		60			29
Liabilities settled		(10	)		(16	)
Accretion expense (included in depreciation, depletion and amortization)		61			43
Revisions of previous estimates		(17	)		277
Deconsolidation of EGHoldings		(4	)		–

Asset retirement obligations as of December 31^(a)	$	1,134		$	1,044

^(a)	Includes asset retirement obligations of $3 million classified as short-term at December 31, 2007.

23. Asset Retirement Obligations

The following summarizes the changes in
asset retirement obligations.


(In millions)	2007			2006
Asset retirement obligations as of January 1	$	1,044		$	711
Liabilities incurred, including acquisitions		60			29
Liabilities settled		(10	)		(16	)
Accretion expense (included in depreciation, depletion and amortization)		61			43
Revisions of previous estimates		(17	)		277
Deconsolidation of EGHoldings		(4	)		–

Asset retirement obligations as of December 31SIZE="1">^(a)	$	1,134		$	1,044

^(a)	Includes asset retirement obligations of $3 million classified as short-term at December 31, 2007.

STYLE="margin-top:0px;margin-bottom:0px">24. Stock-Based Compensation Plans

Description of the plans
– The Marathon Oil Corporation 2007 Incentive Compensation Plan (the “2007 Plan”) was approved by the Company’s stockholders in April 2007 and authorizes the Compensation Committee of the Board of Directors
to grant stock options, stock appreciation rights, stock awards (including restricted stock and restricted stock unit awards) and performance awards to employees. The 2007 Plan also allows Marathon to provide equity compensation to its non-employee
directors. No more than 34 million shares of common stock may be issued under the 2007 Plan and no more than 12 million of those shares may be used for awards other than stock options or stock appreciation rights.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:3%">Shares subject to awards under the 2007 Plan that are forfeited, are terminated or expire unexercised become available for future grants. If a stock
appreciation right is settled upon exercise by delivery of shares of common stock, the full number of shares with respect to which the stock appreciation right was exercised will count against the number of shares of common stock reserved for
issuance under the 2007 Plan and will not again become available under the 2007 Plan. In addition, the number of shares of common stock reserved for issuance under the 2007 Plan will not be increased by shares tendered to satisfy the purchase price
of an award, exchanged for other awards or withheld to satisfy tax withholding obligations. Shares issued as a result of awards granted under the 2007 Plan are generally funded out of common stock held in treasury, except to the extent there are
insufficient treasury shares, in which case new common shares are issued.

After approval of the 2007 Plan, no new grants were or will be
made from the 2003 Incentive Compensation Plan (the “2003 Plan”). The 2003 Plan replaced the 1990 Stock Plan, the Non-Officer Restricted Stock Plan, the Non-Employee Director Stock Plan, the deferred stock benefit provision of the Deferred
Compensation Plan for Non-Employee Directors, the Senior Executive Officer Annual Incentive Compensation Plan and the Annual Incentive Compensation Plan (the “Prior Plans”). No new grants will be made from the Prior Plans. Any awards
previously granted under the 2003 Plan or the Prior Plans shall continue to vest and/or be exercisable in accordance with their original terms and conditions.

F-41

Index to Financial Statements

This excerpt taken from the MRO 10-K filed Mar 10, 2005.

24. Asset Retirement Obligations

Changes in asset retirement obligations during the year were:

(In millions)		2004			2003

Asset retirement obligations as of January 1		$	390		$	339
	Liabilities incurred^(a)		17			32
	Liabilities settled^(b)		(3	)		(42	)
	Accretion expense (included in depreciation, depletion and amortization)		24			20
	Revisions of previous estimates		49			41

Asset retirement obligations as of December 31		$	477		$	390

^(a): Includes $12 million related to the acquisition of Khanty Mansiysk Oil Corporation in 2003.
^(b): Includes $25 million associated with assets sold in 2003.

EXCERPTS ON THIS PAGE:

10-K (3 sections)	Feb 27, 2009

10-K (2 sections)	Feb 29, 2008

10-K	Mar 10, 2005

Marathon Oil (MRO)

MRO » Topics » 23. Asset Retirement Obligations

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Index to Financial Statements

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Index to Financial Statements

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