101778--2/26/2010--MARATHON_OIL

related topics

{gas, price, oil}

{acquisition, growth, future}

{operation, natural, condition}

{cost, regulation, environmental}

{stock, price, share}

{financial, litigation, operation}

{condition, economic, financial}

{customer, product, revenue}

{operation, international, foreign}

A substantial or extended decline in liquid hydrocarbon or natural gas prices, or in refining and wholesale marketing gross margins, would reduce our operating results and cash flows and could adversely impact our future rate of growth and the carrying value of our assets. Estimates of liquid hydrocarbon, natural gas and synthetic crude oil reserves depend on many factors and assumptions, including various assumptions that are based on conditions in existence as of the dates of the estimates. Any material changes in those conditions or other factors affecting those assumptions could impair the quantity and value of our liquid hydrocarbon, natural gas and synthetic crude oil reserves. If we are unsuccessful in acquiring or finding additional reserves, our future liquid hydrocarbon and natural gas production would decline, thereby reducing our cash flows and results of operations and impairing our financial condition. The availability of crude oil and increases in crude oil prices may reduce our refining, marketing and transportation profitability and refining and wholesale marketing gross margins. We will continue to incur substantial capital expenditures and operating costs as a result of compliance with, and changes in environmental health, safety and security laws and regulations, and, as a result, our profitability could be materially reduced. If we are unable to complete capital projects at their expected costs and in a timely manner, or if the market conditions assumed in our project economics deteriorate, our business, financial condition, results of operations and cash flows could be materially and adversely affected. Many of our major projects and operations are conducted with partners, which may decrease our ability to manage risk. Uncertainty in the financial markets may impact our ability to obtain future financing and could adversely affect entities with which we do business. Worldwide political and economic developments could damage our operations and materially reduce our profitability and cash flows. Our operations are subject to business interruptions and casualty losses. We do not insure against all potential losses and therefore we could be seriously harmed by unexpected liabilities and increased costs. If the transactions resulting in our acquisition of the minority interest in MPC previously owned by Ashland were found to constitute a fraudulent transfer or conveyance, we could be required to provide additional consideration to Ashland or to return a portion of the interest in MPC, and either of those results could have a material adverse effect on us. Litigation by private plaintiffs or government officials could adversely affect our performance. We may issue preferred stock whose terms could dilute the voting power or reduce the value of Marathon common stock.

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101778--2/26/2010--MARATHON_OIL_CORP