Marathon Oil (MRO)

13. Investments and Long-Term Receivables

        Summarized financial information of investees accounted for by the equity method of accounting follows:

        Marathon's carrying value of its equity method investments is $258 million higher than the underlying net assets of investees. This basis difference is being amortized into income over the remaining useful lives of the underlying net assets.

        Dividends and partnership distributions received from equity investees (excluding distributions that represented a return of capital previously contributed) were $127 million in 2004, $175 million in 2003 and $109 million in 2002.

        On June 30, 2003, Marathon Oil Corporation and Kinder Morgan Energy Partners, L.P. ("Kinder Morgan") dissolved MKM Partners L.P. which had oil and gas production operations in the Permian Basin of Texas. Marathon held an 85 percent noncontrolling interest in the partnership. Prior to the dissolution of the partnership, Kinder Morgan acquired MKM Partners L.P.'s 12.75 percent interest in the SACROC unit for an undisclosed amount. The partnership recorded a loss on the disposal of SACROC of $19 million, of which Marathon's share was $17 million. Also prior to the dissolution, Marathon recorded a $107 million impairment of its investment in MKM Partners L.P. due to an other-than-temporary decline in the fair value of the investment. The total loss recognized by Marathon related to the dissolution of MKM Partners L.P. was $124 million. The partnership's interest in the Yates field was distributed to Marathon and Kinder Morgan on dissolution.