Send us Feedback

Marathon Oil (MRO)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

MRO » Topics » Derivative Gains or Losses Included in Results of Operations

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

Derivative Gains or Losses Included in Results of Operations

Pretax derivative losses of $15 million in 2007 and gains of $25 million in 2006 and $7 million in 2005 were included in E&P segment income and were primarily related to derivatives utilized to protect the value of natural gas in storage and margins on natural gas purchased for use in our marketing activities.

Pretax derivative losses of $54 million were included in OSM segment income for 2007. These losses primarily resulted from the increase in crude oil prices since the acquisition date of Western.

Pretax derivative gains and losses included in RM&T segment income for each of the last three years are summarized in the following table:

 

(In millions)    2007     2006     2005  

Strategy:

       

Mitigate price risk on purchases of crude oil and other commodities

    $ (378 )   $ 204     $ (57 )

Mitigate price risk on carrying values of inventories

      (511 )     200       (118 )

Other

      (10 )     (4 )     (63 )
                        

Subtotal, non-trading activities

      (899 )     400       (238 )

Trading activities

      (1 )     1       (87 )
                        

Total net derivative gains (losses)

    $ (900 )   $ 401     $ (325 )

Derivative Gains or Losses Included in Results of Operations

STYLE="margin-top:12px;margin-bottom:0px; text-indent:3%">Pretax derivative losses of $15 million in 2007 and gains of $25 million in 2006 and $7 million in 2005 were included in E&P segment income and were
primarily related to derivatives utilized to protect the value of natural gas in storage and margins on natural gas purchased for use in our marketing activities.

FACE="Times New Roman" SIZE="2">Pretax derivative losses of $54 million were included in OSM segment income for 2007. These losses primarily resulted from the increase in crude oil prices since the acquisition date of Western.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:3%">Pretax derivative gains and losses included in RM&T segment income for each of the last three years are summarized in the following table:

 



























































































































































(In millions)  2007  2006  2005 

Strategy:

    

Mitigate price risk on purchases of crude oil and other commodities

  $(378) $204  $(57)

Mitigate price risk on carrying values of inventories

   (511)  200   (118)

Other

   (10)  (4)  (63)
             

Subtotal, non-trading activities

   (899)  400   (238)

Trading activities

   (1)  1   (87)
             

Total net derivative gains (losses)

  $(900) $401  $(325)

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 29, 2008

RELATED TOPICS for MRO:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki