Part IV

Item 15.

	Year Ended December 31
(in millions, except per share data)	2007		2006		2005
REVENUES
Gas and natural gas liquids	$	4,214	$	3,490	$	2,787
Oil and condensate	1,204		1,002		670
Gas gathering, processing and marketing	100		86		56
Other	(5)		(2)		6
Total Revenues	5,513		4,576		3,519
EXPENSES
Production	615		491		406
Taxes, transportation and other	444		372		306
Exploration	52		22		24
Depreciation, depletion and amortization	1,187		875		655
Accretion of discount in asset retirement obligation	22		16		12
Gas gathering and processing	81		41		11
General and administrative	231		189		155
Derivative fair value (gain) loss	(11)		(102)		(13)
Total Expenses	2,621		1,904		1,556
OPERATING INCOME	2,892		2,672		1,963
OTHER (INCOME) EXPENSE
Gain on distribution of royalty trust units	–		(469)		–
Interest expense, net	250		180		153
Total Other (Income) Expense	250		(289)		153
INCOME BEFORE INCOME TAX	2,642		2,961		1,810
INCOME TAX EXPENSE
Current	292		572		243
Deferred	659		529		415
Total Income Tax Expense	951		1,101		658
NET INCOME	$	1,691	$	1,860	$	1,152
EARNINGS PER COMMON SHARE
Basic	$	3.58	$	4.08	$	2.57
Diluted	$	3.53	$	4.02	$	2.52
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	471.9		456.1		448.1
See accompanying notes to consolidated financial statements.