This excerpt taken from the MRO 8-K filed Nov 5, 2007.
Selected Notes to Financial Statements (Unaudited)
1. Equatorial Guinea LNG Holdings Limited (EGHoldings), in which Marathon holds a 60 percent interest, was formed for the purpose of constructing and operating an LNG production facility. During facility construction, EGHoldings was a variable interest entity (VIE) that was consolidated by Marathon because Marathon was its primary beneficiary. Once the LNG production facility commenced its primary operations and began to generate revenue in May 2007, EGHoldings was no longer a VIE. Effective May 1, 2007, Marathon no longer consolidates EGHoldings, despite the fact that the Company holds majority ownership, because the minority shareholders have rights limiting Marathons ability to exercise control over the entity. Marathons investment is accounted for prospectively using the equity method of accounting.
2. On April 25, 2007, the Companys Board of Directors declared a two-for-one split of the Companys common stock. The stock split was effected in the form of a stock dividend distributed on June 18, 2007, to stockholders of record at the close of business on May 23, 2007. Stockholders received one additional share of Marathon Oil Corporation common stock for each share of common stock held as of the close of business on the record date. Common share and per share information for all periods presented in the condensed consolidated statements of income has been restated to reflect the stock split.