Maintaining financial discipline. Our capital discipline leads us to invest in only the opportunities that have the greatest potential to increase long-term shareholder value. The 67 percent increase in Marathon's 2008 capital, investment and exploration budget to $8 billion illustrates our confidence in the Company's business strategy and the significant value-added investments that are planned. The increase is primarily due to activity related to the Garyville, Louisiana, refinery expansion, the Athabasca Oil Sands Project in Canada, and the associated Detroit, Michigan, refinery heavy oil upgrading and expansion project. In addition to capital expenditures, this budget includes cash investments in equity method investees of $46 million and exploration costs other than well costs of $296 million.

Capital discipline, however, is only a part of our financial discipline. The Company also took steps to reduce costs by streamlining business processes and finding efficiencies — not only in the field, but also in terms of administrative costs.

Maximizing shareholder value. Delivering increased value to shareholders by investing in value-accretive projects, maintaining financial flexibility, paying a competitive dividend and undertaking an active stock repurchasing program continues to drive Marathon's business philosophy. In April 2007, the Board declared a two-for-one split of common shares and increased the dividend by 20 percent. This was the fifth increase in the dividend since July 2003, resulting in a 109 percent increase during this period. Marathon also increased its share repurchase program in 2007, for a total authorization of $5 billion. Through year-end 2007, the Company had repurchased approximately 58 million common shares, on a split-adjusted basis, at a cost of $2.5 billion.