We have three reportable operating segments. Each of these segments is organized and managed based upon the nature of the products and services they offer.

1) Exploration and Production (“E&P”) – explores for, produces and markets liquid hydrocarbons and natural gas on a worldwide basis;

2) Oil Sands Mining (“OSM”) – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil; and

3) Integrated Gas (“IG”) – markets and transports products manufactured from natural gas, such as liquefied natural gas (“LNG”) and methanol, on a worldwide basis.

Segment income represents income from continuing operations, net of income taxes, attributable to the operating segments. Our corporate general and administrative costs are not allocated to the operating segments. These costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate activities, net of associated income tax effects. Foreign currency remeasurement and transaction gains or losses are not allocated to operating segments.

Differences between segment totals for income taxes and depreciation, depletion and amortization and our consolidated totals represent amounts related to corporate administrative activities and other unallocated items which are included in “Items not allocated to segments, net of income taxes” in the reconciliation below. Capital expenditures include accruals.

As discussed in Notes 1 and 2, our downstream business was spun-off on June 30, 2011 and has been reported as discontinued operations in all periods presented. Crude oil sales to MPC previously reported as Intersegment revenues are now reported as Customer revenues because such sales are expected to continue subsequent to the spin-off. Such sales were $787 million and $349 million in the second quarter of 2011 and 2010 and $1,395 million and $647 million in the first six months of 2011 and 2010.

	Three Months Ended June 30, 2011
(In millions)		E&P		OSM		IG		Total

Revenues:
Customer	$	3,220	$	447	$	13	$	3,680
Intersegment		15		0		0		15
Related parties		14		0		0		14
Segment revenues		3,249		447		13		3,709
Elimination of intersegment revenues		(15)		0		-		(15)
Total revenues	$	3,234	$	447	$	13	$	3,694
Segment income	$	601	$	69	$	43	$	713
Income from equity method investments		66		0		54		120
Depreciation, depletion and amortization		501		49		1		551
Income tax provision		598		23		17		638
Capital expenditures		749		80		0		829

	Three Months Ended June 30, 2010
(In millions)		E&P		OSM		IG		Total

Revenues:
Customer	$	2,570	$	190	$	33	$	2,793
Intersegment		16		0		0		16
Related parties		14		0		0		14
Segment revenues		2,600		190		33		2,823
Elimination of intersegment revenues		(16)		0		-		(16)
Total revenues	$	2,584	$	190	$	33	$	2,807
Segment income (loss)	$	432	$	(60)	$	24	$	396
Income from equity method investments		40		0		43		83
Depreciation, depletion and amortization		391		16		1		408
Income tax provision (benefit)		625		(10)		12		627
Capital expenditures		585		243		0		828

	Six Months Ended June 30, 2011
(In millions)		E&P		OSM		IG		Total

Revenues:
Customer	$	6,506	$	753	$	77	$	7,336
Intersegment		41		-		-		41
Related parties		29		-		-		29
Segment revenues		6,576		753		77		7,406
Elimination of intersegment revenues		(41)		0		-		(41)
Total revenues	$	6,535	$	753	$	77	$	7,365
Segment income	$	1,269	$	101	$	103	$	1,473
Income from equity method investments		124		-		113		237
Depreciation, depletion and amortization		1,087		86		3		1,176
Income tax provision		1,211		33		43		1,287
Capital expenditures		1,417		200		1		1,618

	Six Months Ended June 30, 2010
(In millions)		E&P		OSM		IG		Total

Revenues:
Customer	$	5,018	$	370	$	60	$	5,448
Intersegment		29		0		0		29
Related parties		26		0		0		26
Segment revenues		5,073		370		60		5,503
Elimination of intersegment revenues		(29)		0		-		(29)
Total revenues	$	5,044	$	370	$	60	$	5,474
Segment income (loss)	$	934	$	(77)	$	68	$	925
Income from equity method investments		77		0		91		168
Depreciation, depletion and amortization		788		39		2		829
Income tax provision (benefit)		1,162		(17)		35		1,180
Capital expenditures		1,188		508		1		1,697

The following reconciles segment income to net income as reported in the consolidated statements of income:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2011			2010	2011		2010
Segment income	$	713	$	396	$	1,473	$	925
Items not allocated to segments, net of income taxes:
Corporate and other unallocated items		(21)		7		(136)		(80)
Foreign currency remeasurement of income taxes		(3)		37		(17)		70
Impairments^{a}		(195)		(9)		(195)		(271)
Loss on early extinguishment of debt^{b}		-		(57)		(176)		(57)
Tax effect of subsidiary restructuring^{c}		(122)		-		(122)		-
Deferred income tax items^{c}		(50)		-		(50)		(45)
Water abatement - Oil Sands^{d}		(48)		-		(48)		-
Gain on dispositions ^{e}		24		-		24		449
Income from continuing operations		298		374		753		991
Discontinued operations		698		335		1,239		175
Net income	$	996	$	709	$	1,992	$	1,166

The following reconciles total revenues to sales and other operating revenues as reported in the consolidated statements of income:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2011			2010	2011		2010
Total revenues	$	3,694	$	2,807	$	7,365	$	5,474
Less: Sales to related parties		14		14		29		26
Sales and other operating revenues	$	3,680	$	2,793	$	7,336	$	5,448