Press Release

The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 421,000 barrels per day in the first quarter of 2003, a decrease of 8% from the first quarter of 2002. In the first quarter of 2003, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $25.55 per barrel, an increase of $2.60 per barrel from the first quarter of 2002. The Corporation's average United States natural gas selling price, including the effect of hedging, was $4.89 per Mcf in the first quarter of 2003, an increase of $1.46 per Mcf from the first quarter of 2002.
 
Exploration and production earnings include after-tax gains from asset sales of $31 million and $28 million in the first quarters of 2003 and 2002, respectively. The gain in the first quarter of 2003 reflects the sale of the Corporation's 1.5% interest in the Trans Alaska Pipeline System. Results in the first quarter of 2003 included higher exploration expense than the first quarter of 2002.
 
On February 26, 2003, the Corporation exchanged its crude oil producing properties in Colombia, plus $10 million in cash, for an additional 25% interest in natural gas reserves in the joint development area of Malaysia and Thailand. This transaction resulted in a net loss from discontinued operations of $47 million, including $13 million of operating income from January 1 through the date of disposition. Effective January 1, 2003, the Corporation adopted the provisions of FAS No. 143, Accounting for Asset Retirement Obligations, and recorded a net benefit of $7 million from the cumulative effect of the accounting change.
 
Refining and marketing results improved in the first quarter of 2003 compared with the first quarter of 2002, principally reflecting higher refining margins and increased energy marketing earnings due to a colder winter.
 
Sales and other operating revenues in the first quarter of 2003 amounted to $4,297 million compared with $2,958 million in the first quarter of 2002. Capital expenditures in the first quarter of 2003 amounted to $341 million of which $321 million related to exploration and production activities. Capital expenditures in the first quarter of 2002 amounted to $445 million, including $427 million for exploration and production.