Exploration and Production
Upstream segment income totaled $555 million in first quarter 2005,
compared to $464 million in first quarter 2004. Project development is on schedule
with first production expected in 2007. The improvement was
primarily due to a higher refining and wholesale marketing margin and
increased refinery throughputs. In the second half of 2005, the company will begin taking delivery
of LNG at Elba Island under terms of a supply agreement reached with BP Energy
Company last year under which BP will supply Marathon with 58 billion cubic
feet of natural gas per year, as LNG, for a minimum period of five years.1 183.34 31.79 17.6
Refined Product Sales Volumes(mbpd) (F) 1,369."
A vast majority of the total worldwide baseload LNG production capacity is
produced with Air Products ' technology.

pth detonation

80 per diluted share. long-term gas contracts (33) 8
Net income $324 $258

Net income adjusted for special items* -
per diluted share $1.

Key First Quarter Events
* Strengthened Exploration and Production Business
- Petronius back online and at full pre-Hurricane Ivan production
rates
- Equatorial Guinea condensate expansion project ramped up to full
production
- Equatorial Guinea liquefied petroleum gas (LPG) expansion project
commissioning continues on track for mid-year start -up
- Alvheim development offshore Norway on schedule with all remaining
major contracts awarded during first quarter
- Vilje Plan of Development and Operation (PDO) approved by Norwegian
Government
- Continued to deliver exploration success with three discoveries

* Strengthened MAP Assets
- Achieved record first quarter refinery throughput rates
- Continued industry leading growth of same store merchandise sales
- Recently announced agreement to purchase Ft. Cazalot, Jr.3 701.
In addition , the company's condensate expansion project in Equatorial
Guinea ramped up to full production, with total liquids production averaging
approximately 47,000 gross barrels per day (bpd) for the quarter (26,500 net
to Marathon), but exiting March at a rate of approximately 62,000 gross bpd
(35,000 net to Marathon).

Refining, Marketing and Transportation
Downstream segment income was $210 million in first quarter 2005 versus
segment income of $49 million in first quarter 2004 .
Marathon and its partners have been advised by Qatar's Energy Minister
that the company's proposed Qatar GTL project will be delayed. have reached regarding Marathon's
purchase of Ashland 's interest in MAP announced earlier this morning.com . Factors that could affect the
LNG project include unforeseen problems arising from construction, inability
or delay in obtaining necessary government and third party approvals,
unanticipated changes in market demand or supply, environmental issues,
availability or construction of sufficient LNG vessels, and unforeseen hazards
such as weather conditions.0
Other International 24.71

Europe 5.47 $28.59
West Africa 43.K.

hoses lubricators

Reported crude oil and natural gas sales
during the quarter averaged 334,000 boepd. The well
has reached total depth and encountered hydrocarbons in the Lower Tertiary
section. A reconciliation between GAAP net income and
"net income adjusted for special items " is provided in a table on page 1.
This release contains forward-looking statements with respect to the
timing and levels of the company's worldwide liquid hydrocarbon and natural
gas and condensate production and sales, future exploration and drilling
activity, the Alvheim/Vilje development, an LPG expansion project, a LNG
project, the Detroit refinery expansion project, and the proposed acquisition
of a Ft.1 16.8 358.10
Other International 24.10 27.4 196.8
Asphalt 72.0 57.

apv franceschini

93 per diluted share.4
International - Liquids (mbpd) 91.
Also during the first quarter, Marathon's production operations benefited
from the restart of the Petronius platform in the Gulf of Mexico following
extensive repairs necessitated by damage caused by Hurricane Ivan.
MAP continued to make progress on its Detroit refinery expansion project
during the quarter. Lauderdale terminal. Some factors that could affect the LPG
expansion project include unforeseen problems arising from construction and
unforeseen hazards such as weather conditions.

long-term gas contracts (57) 14
Income From Operations $624 $478
Capital Expenditures
Exploration + Production $293 $172
Refining, Marketing + Transportation (A) 134 135
Integrated Gas (B) 126 35
Corporate 1 2
Total $554 $344
Exploration Expense
United States $17 $8
International 17 17
Total $34 $25
Operating Statistics
Liquid Hydrocarbon Sales (mbpd) (C)
United States 71.6 91.0
Total International 91.4

Europe 371.05 4.

headquarter tubings

1
International - Gas (mmcfpd) 455. Commissioning of the Equatorial Guinea LPG
expansion project continued during the first quarter with start-up on schedule
for mid-year.93 $0.2 788.6
Refining and Wholesale Marketing
Margin (G) (H) $0.8 million tons per year
(MM TPY). Actual
results could vary materially, due to changes in current expectations.

tubings priming

Lauderdale, Florida,
light products terminal will enhance MAP's refined products
distribution network

* Advanced Integrated Gas Strategy
- Equatorial Guinea liquefied natural gas (LNG) project construction
continues on schedule
- Integrated Technology Project at Port of Catoosa, Oklahoma,
gas-to-liquids (GTL) demonstration plant moving forward to further
develop gas commercialization technology

"Our first quarter results were positively influenced by a number of key
factors including continued high oil and natural gas prices, solid production
from our upstream business, record refinery throughputs, and a strong refining
and wholesale marketing margin," said Clarence P.

1st Quarter Ended March 31
(Dollars in millions) 2005 2004
Segment Income
Exploration + Production
United States $305 $306
International 250 158
E+P Segment Income 555 464
Refining, Marketing + Transportation 210 49
Integrated Gas 7 15
Segment Income** $772 $528

** See Preliminary Supplemental Statistics on page 8 for a reconcilement
of segment income to income from operations as reported under
generally accepted accounting principles.9
Total Sales (mboepd) 334.m. Some factors that could potentially affect
worldwide liquid hydrocarbon and natural gas and condensate production and
sales, the exploration and drilling activities and the Alvheim /Vilje
development include pricing, supply and demand for petroleum products, amount
of capital available for exploration and development, occurrence of
acquisitions/dispositions of oil and gas properties, regulatory constraints,
timing of commencing production from new wells, drilling rig availability,
unforeseen hazards such as weather conditions, acts of war or terrorist acts
and the governmental or military response thereto, and other geological,
operating and economic considerations .1
Worldwide 163.47 $29.23 29.98

Natural Gas ($ per mcf)
United States $4.6 984.8 26.7 1,307.0 mmcfd in the first quarter 2005 and 2004
(E) Excludes the effects of the U.

apv ethylene

Marathon Oil Corporation Reports First Quarter 2005 Results

83 per diluted share . Marathon Ashland Petroleum LLC (MAP)
benefited from wider sweet/sour crude differentials in general and was able to
run more sour crudes during the period, taking advantage of the substantial
discounts on these feedstocks. In addition, as a result of a relatively light
maintenance schedule during the first quarter, MAP crude oil throughput was
17 percent higher than the same 2004 period.marathon .
"Net income adjusted for special items" should not be considered a substitute
for net income as reported in accordance with GAAP.
Factors that could affect the acquisition of the terminal include satisfaction
of closing conditions.2 45.5 1,136.24 .34 30.05 4.24 .
Air Products' AP-X LNG process production capacity, which is 50 percent
larger than any other LNG plant currently in operation, is positioned well for
a continuing market trend toward larger LNG process trains.

vaporizers lng

Reported volumes
are based upon sales volumes which may vary from production available for sale
primarily due to the timing of liftings of certain of the company's
international liquid hydrocarbon volumes.6
Other Charge and Blend Stocks (mbpd ) 171.7 1,307.0344

During the quarter, Speedway SuperAmerica LLC (SSA) continued to realize
strong same store merchandise sales with an increase of approximately
11. Lauderdale , Florida.

Integrated Gas
Integrated gas segment income was $7 million in first quarter 2005
compared with $15 million in first quarter 2004.3 701.0 373.3

Preliminary Supplemental Statistics (unaudited) (continued)

1st Quarter Ended March 31
(Dollars in millions, except as noted) 2005 2004
Operating Statistics (continued)
Average Sales Prices (excluding derivative
gains and losses)
Liquid Hydrocarbons ($ per bbl)
United States $38.95 $4.92 $4.2 998.

inert lng

02 per diluted
share.
United States upstream income was $305 million in first quarter 2005,
compared to $306 million in first quarter 2004. This strong
operating performance positioned the company to help meet rising demand for
motor fuels, while capturing the benefits of the strong refining margins in
the Midwest and Gulf Coast during the quarter.4 196. The decrease was due to
mark-to -market changes in the value of derivatives used to support gas
marketing activities, partially offset by increased earnings from Marathon's
equity investment in the AMPCO methanol plant in Equatorial Guinea.com/Investor_Center/Investor_Relations/ in the Quarterly
Investor Packet.

In addition to net income determined in accordance with generally accepted
accounting principles (GAAP), Marathon has provided supplementally "net income
adjusted for special items", a non-GAAP financial measure which facilitates
comparisons to earnings forecasts prepared by stock analysts and other third
parties .K.1
West Africa 36.1058 $0.

Please submit your site to one of these subcategories, because it will be so placed in any cases.

hoses wasterwater

93 $0. The increase was primarily
due to higher liquid hydrocarbon and natural gas prices, partially offset by
lower liquid hydrocarbon and natural gas sales volumes in the current quarter. The
Palas-1 and Ceres-1 discoveries are both located on Block 31 offshore Angola
and mark the fifth and sixth deepwater discoveries the company has announced
on the Block.82 $28.24
Total International 4.8
Propane 19.

** *NOTE: This release may contain forward-looking statements.

wasterwater headquarter

, Marathon
president and CEO . During the quarter MAP achieved
record first quarter crude runs that averaged 922,200 bpd, with total
throughput averaging a first quarter record of 1,093,600 bpd.6 984. Project expenditures totaled approximately $675 million as of
March 31, 2005.
Also during the quarter, Marathon took delivery of two cargos of LNG under
its long term delivery rights at the Elba Island (Georgia ) regasification
terminal. The principal
reason for the delay is Qatar Petroleum's desire to ensure that they manage
the giant North Field gas resources in the most effective manner and they are
currently reviewing their long-term gas production delivery plans.marathon.23

Average Sales Prices (including derivative
gains and losses)
Liquid Hydrocarbons ($ per bbl)
United States $38.48
Total International 39. Patented Technology's Increased Production Capacity Meets Evolving Industry
Needs

LEHIGH VALLEY, Pa. "This novel AP-X
liquefaction process provides a combination of proven Air Products process
technologies and key liquefaction equipment in a way that provides the
industry with low spigot cost, high reliability and flexible operation as new
markets are developed," said Mark Modjeska, general manager, Worldwide
Equipment at Air Products.

liquefied vaporizers

In addition, the nearby Vilje field
received PDO approval from the Norwegian Government .
MAP also announced an agreement with Motiva Enterprises LLC to purchase a
terminal in Ft . During
the first quarter, the methanol plant operated at a 94 percent on-stream
factor and prices have remained strong averaging nearly $260 per ton during
the quarter.9
Natural Gas Sales (mmcfd) (C) (D)
United States 570.79 17.59 $4. Air Products has designed,
manufactured and exported over 70 LNG heat exchangers over the last 35 years.

tubings pth

8
United States - Gas (mmcfpd) 570.
In Norway, Marathon made progress in advancing the Alvheim development
with the award of the two remaining major contracts for conversion of the MST
Odin to a floating production, storage and offloading (FPSO) vessel. Lauderdale by more than
70 percent, enabling MAP to better serve the growing Florida market, improve
logistics , and add flexibility to its product sourcing.
Management also uses "net income adjusted for special items" to compare
Marathon's performance to certain competitors.17 3.0
Total 1,108. Interest from others in
this state-of-the-art LNG process technology continues to grow.
In support of the LNG industry Air Products provides process license and
equipment for the baseload liquefaction process, dry inert gas generators for
LNG carriers , shipboard membrane nitrogen systems, membrane nitrogen and
natural gas dehydration membrane systems for offshore platforms, and land-
based nitrogen plants for the baseload LNG facility and LNG import terminals.

tescom lng

HOUSTON, Marathon Oil Corporation
(NYSE: MRO) today reported first quarter 2005 net income of $324 million, or
$0.80
Net income - per diluted share $0.
Marathon holds a 10 percent interest in Block 31.8
Refined Product Sales Volumes (mbpd) 1,369 . The 388,000 barrel light product
terminal will increase MAP's storage capacity at Ft.5 92.20

Preliminary Supplemental Statistics (unaudited) (continued)

1st Quarter Ended March 31
(Dollars in millions, except as noted) 2005 2004
MAP
Refinery Runs (mbpd)
Crude Oil Refined 922.4 108.3 79.0344

Speedway SuperAmerica LLC
Number of SSA retail outlets 1,659 1,773
SSA Gasoline and Distillate Sales (I) 745 763
SSA Gasoline and Distillate Gross
Margin (G) $0.

vaporizers fluid

For the first quarter of 2005, net
income adjusted for special items was $357 million, or $1.83
Revenues and other income $13,010 $10,693
Weighted average shares, in thousands - diluted 348,645 311,685

* See page 5 for a discussion of net income adjusted for special items.
International upstream income was $250 million in first quarter 2005,
compared to $158 million in first quarter 2004. The increase is a result of the East Kamennoye development
program.
MST Odin hull modifications have been initiated and development drilling will
commence in the third quarter of 2005.

Condensed Consolidated Statement of Income (unaudited)

1st Quarter Ended March 31
(Dollars in millions, except
per diluted share data) 2005 2004
Revenues and Other Income:
Sales and other operating revenues
(including consumer excise taxes) $9,840 $8,392
Revenue from matching buy/sell transactions 2,809 2,045
Sales to related parties 283 215
Income from equity method investments 40 27
Net gains on disposal of assets 11 2
Other income 27 12
Total revenues and other income 13,010 10,693

Costs and Expenses:
Cost of revenues (excludes items shown below) 7,692 6,435
Purchases related to matching buy/sell
transactions 2,832 2,065
Purchases from related parties 56 31
Consumer excise taxes 1,084 1,052
Depreciation , depletion and amortization 323 299
Selling, general and administrative expenses 260 222
Other taxes 105 83
Exploration expenses 34 28
Total costs and expenses 12,386 10,215

Income from Operations 624 478
Net interest and other financial costs 32 38
Minority interest in income (loss) of:
Marathon Ashland Petroleum LLC 70 17
Equatorial Guinea LNG Holdings Limited (1) ---

Income before Income Taxes 523 423
Provision for income taxes 199 165

Net Income $324 $258

Net income
Per share - basic $0.94 $0.8

Europe 31.3
Total International 455.9
Worldwide 1,025.14
West Africa ., Air Products
(NYSE: APD) today announced the signing of an agreement to supply its new
AP-X(TM) liquefaction process technology to Ras Laffan Liquefied Natural Gas
Co .

catridges liquefied

1st Quarter Ended March 31
2005 2004
Key Production Statistics
Sales
United States - Liquids (mbpd) 71.
Marathon's integrated gas activities during the quarter were marked by
continued progress in constructing the company's LNG project in Equatorial
Guinea. The ITP, also at the Port of Catoosa,
will combine higher efficiency syngas processing and liquid products treatment
with the Syntroleum FT reactor. Replays of the Web cast will be available through
May 12, 2005.4 76.71
Worldwide $38.46
Worldwide $4.

panner priming

During the first quarter, MAP recorded a $73 million charge for crack
spread derivative contracts, approximately $61 million of which related to
mark-to-market losses on derivative contracts primarily for #2 high sulfur
fuel oil crack spreads that expire over the remainder of 2005.24
Total International 4.09

Europe 45.2
Total 1,093.

Air Products to Provide New AP-X(TM) Liquefaction Process Technology to RasGas II LNG Facility in Qatar

ethylene lng

K."

Segment Results
Total segment income was $772 million in first quarter 2005, compared with
$528 million in first quarter 2004.0 373.2
Total Refinery Inputs (mbpd) 1,093.0685 $0. SSA also increased same store gasoline sales volume by
1. The foregoing factors (among others) could cause
actual results to differ materially from those set forth in the forward-
looking statements .6
West Africa 83.3
Total Sales (mboepd) 334.71
West Africa 43.6
Other Charge and Blend Stocks 171.8
Feedstocks and Special Products 116. Limited (II) for Train 6 at the RasGas II facility located in Qatar.

danfoss apv

The increase is primarily a
result of higher liquid hydrocarbon and natural gas prices.5 92. With the LPG expansion at full production, total Equatorial
Guinea liquids production is expected to exceed 80,000 gross bpd. In
addition, Marathon is currently participating in a well on the Juno Prospect .2 percent when compared to the first quarter of 2004. The transaction is
expected to close in June 2005. Additionally, the company continues to
examine a variety of gas projects to apply the company 's GTL technology
package, as well as compressed natural gas and methanol processes which are
ready for commercial application.
Management, as well as certain investors, uses "net income adjusted for
special items" to evaluate Marathon's financial performance between periods. In accordance with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation has
included in its Annual Report on Form 10-K for the year ended December 31,
2004 and subsequent Forms 8-K, cautionary language identifying other important
factors, though not necessarily all such factors, that could cause future
outcomes to differ materially from those set forth in the forward-looking
statements.83
Per share - diluted $0.82 $27.3 552.2 19. Air
Products provides natural gas liquefaction process technology , main cryogenic
heat exchange equipment, plus other key process equipment components in the
AP -X process for world-class process trains producing liquefied natural gas
(LNG). The
feed gas will come from Qatar's North Field, the largest offshore non-
associated natural gas field in the world, with proven natural gas reserves in
excess of 900 trillion cubic feet (tcf).

franceschini inert

These lower
volumes resulted primarily from storm-related downtime at Petronius and Camden
Hills in the Gulf of Mexico and natural field declines.
Marathon continues to estimate its 2005 production available for sale will
average between 325,000 and 350,000 barrels of oil equivalent per day,
excluding the effect of any acquisitions or dispositions. Petronius
came back online in early March, quickly ramping up to pre-Ivan levels of
approximately 25,000 net boepd.3
Refining and Wholesale Marketing Margin
($/gallon) $0. In
addition, they are examining the industry's capacity to manage the design and
construction of the large number of gas projects in a compressed time frame in
a single location, which Marathon believes to be a reasonable and responsible
approach. Quarterly financial and operational information is also
provided on Marathon's Web site at
http://www.83

Dividends paid per share $0.48
Total International 39.22
Worldwide $38.23 29.14
West Africa . RM+T segment income includes Ashland's 38%
interest in MAP of $76 million and $18 million in the first quarter
2005 and 2004
(B) Includes Equatorial Guinea LNG Holdings at 100%
(C) Amounts reflect sales after royalties, excluding the U.K. and
Ireland where amounts are before royalties
(D) Includes gas acquired for injection and subsequent resale of
20. "RasGas II is the second company to license the
AP-X LNG process and purchase the AP-X LNG equipment.

lubricators turbomolecular

Net income in the first quarter 2004 was
$258 million , or $0.
In the Gulf of Mexico, Marathon participated in the Stones well, in which
it holds a 15% working interest, located on Walker Ridge Block 508.2 788. This project will build upon last year's
successful demonstration with the objective of producing ultra-clean, low-
sulfur fuels from stranded and flared natural gas at a range of economic plant
sizes.

The company will conduct a conference call today, April 28, 2005, at
2 p. EDT during which it will discuss first quarter results, as well as the
modified agreement Marathon and Ashland Inc.28 $0.10 28.46
Worldwide $4.60 $4.66

Europe (E) 5.5 mmcfd and 22.

detonation apv

Higher liquid hydrocarbon and
natural gas prices and business interruption insurance recoveries of
$46 million related to Hurricane Ivan storm-related damage claims were offset
by lower liquid hydrocarbon and natural gas sales volumes .
Sales volumes in Russia also improved during the quarter averaging
approximately 24,000 bpd compared to approximately 16,000 bpd during the same
period in 2004.

1st Quarter Ended March 31
2005 2004
Key Refining, Marketing +
Transportation Statistics
Crude Oil Refined (mbpd) 922. This $300 million project, which remains on schedule for
completion during the fourth quarter of this year, will increase the
refinery 's crude processing capacity from 74,000 bpd to 100,000 bpd and enable
it to meet the Federal Tier II low-sulfur fuels regulations which become fully
effective in 2006. To
listen to the Web cast of the conference call, visit the Marathon Web site at
http://www. The Detroit refinery expansion project could be
affected by unforeseen problems arising from construction, availability of
materials and labor, and unforeseen hazards such as weather conditions.25

Weighted average shares, in thousands
Basic 346,006 310,196
Diluted 348,645 311,685

Preliminary Supplemental Statistics (unaudited)

1st Quarter Ended March 31
(Dollars in millions, except as noted) 2005 2004
Income from Operations
Exploration + Production
United States $305 $306
International 250 158
E+P Segment Income 555 464
Refining , Marketing + Transportation (A) 210 49
Integrated Gas (B) 7 15
Segment Income $772 $528
Items not allocated to segments:
Administrative Expenses $(91) $(64)
Gain (loss) on U.11
Other International 24.2
Distillates 291.0
Heavy Fuel Oil 32.

Please try to add valves, hoses, and fittings sites for fluid handling equipment to the /Valves, Hoses, Fittings category and sites for fluid power (hydraulic and pneumatic) to the /Fluid Power Components category.

stirred tubings

"In addition, each of the business segments within
Marathon's fully integrated structure continued to make progress in executing
our strategies that are delivering sustainable value growth.3

A key contributor to Marathon 's first quarter upstream performance was
strong overall production available for sale during the quarter which, at an
average of approximately 347,000 boepd, slightly exceeded previous guidance of
between 330,000 and 340,000 boepd. The Palas-1 and Ceres-1 wells are located approximately 37 and
20 miles southeast, respectively, of the planned Northeast Development Area
and provide the potential for a second development area on Block 31.
Following the successful demonstration of GTL technology at Marathon's and
Syntroleum Corporation's Port of Catoosa (Oklahoma) GTL facility last year,
Marathon intends to further develop this important technology through an
Integrated Technology Project (ITP). Such forecasts generally exclude the effects of items that are
difficult to predict or to measure in advance and are not directly related to
Marathon's ongoing operations .2 31.74

Europe 45.17 3.

detonation lubricators

Earnings Highlights
Quarter ended March 31
(Dollars in millions, except
per diluted share data) 2005 2004
Net income adjusted for special items* $357 $250
Adjustments for special items (After tax):
Gain (loss) on U.2 434. This period's variance between
production available for sale and reported sales volumes is primarily
attributable to the timing of liquid hydrocarbon liftings from the company's
operations in Gabon and the UK. At this
time, all the major contracts for the Alvheim development have been placed. Vilje will be tied back
to Alvheim and will also begin producing in 2007.5 percent.90

Natural Gas ($ per mcf)
United States $4.8
Refined Product Yields(mbpd)
Gasoline 576.5 234.0685 $0.1145
SSA Merchandise Sales $560 $521
SSA Merchandise Gross Margin $143 $132

(A) Includes MAP at 100%. long-term gas contracts that are
accounted for as derivatives
(F) Total average daily volumes of all refined product sales to MAP's
wholesale, branded and retail (SSA) customers
(G) Per gallon
(H) Sales revenue less cost of refinery inputs, purchased products and
manufacturing expenses, including depreciation
(I) Millions of gallons

turbomolecular danfoss

For the first quarter of 2004, net income adjusted for special items
was $250 million , or $0.02 $0.6 91.
Marathon also announced two discoveries in Angola during the quarter. Marathon and its partners are currently analyzing data from the well
to determine next steps. Construction remains on schedule with first shipments of LNG
expected in late 2007. Despite this delay, Marathon remains committed to fully exploring
the potential of GTL technology.2 434.3
Matching buy/sell volumes included in
refined product sales volumes (mbpd)
80.
The LNG process Train 6 at the RasGas II facility will be rated for an
annual LNG production capacity of approximately 7 . The RasGas II facility is scheduled to be on-stream in 2008.