101778--3/6/2006--MARATHON_OIL

related topics

{gas, price, oil}

{debt, indebtedness, cash}

{operation, natural, condition}

{acquisition, growth, future}

{stock, price, share}

{cost, regulation, environmental}

{competitive, industry, competition}

{operation, international, foreign}

{financial, litigation, operation}

If we are unsuccessful in acquiring or finding additional reserves, our future oil and natural gas production would decline, thereby reducing our cash flows and results of operations and impairing our financial condition. Increases in crude oil prices and environmental regulations may reduce our refined product margins. If we do not compete successfully with our competitors, our future operating performance and profitability could materially decline. We will continue to incur substantial capital expenditures and operating costs as a result of environmental laws and regulations, and, as a result, our profitability could be materially reduced. Worldwide political and economic developments could damage our operations and materially reduce our profitability. Our operations are subject to business interruptions and casualty losses, and we do not insure against all potential losses and therefore we could be seriously harmed by unexpected liabilities. If Ashland fails to pay its taxes, we could be responsible for satisfying various tax obligations of Ashland. Marathon is required to pay Ashland for deductions relating to various contingent liabilities of Ashland, which could be material. 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. If United States Steel fails to perform any of its material obligations to which we have financial exposure, we could be required to pay those obligations, and any such payment could materially reduce our cash flows and profitability and impair our financial condition. If the transfer of ownership of various assets and operations by Marathon s former parent entity to Marathon was held to be a fraudulent conveyance or transfer, United States Steel s creditors may be able to obtain recovery from us or other relief detrimental to the holders of our common stock.

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101778--3/6/2006--MARATHON_OIL_CORP