200 Peach Street

P. O. Box 7000, El Dorado, Arkansas

ASSETS

Current assets

Cash and cash equivalents

Short-term investments in marketable securities

Accounts receivable, less allowance for doubtful accounts of $13,951 in 2005 and $13,962 in 2004

Inventories, at lower of cost or market

Crude oil and blend stocks

Finished products

Materials and supplies

Prepaid expenses

Deferred income taxes

Total current assets

Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $2,949,828 in 2005 and $2,933,214 in 2004

Goodwill, net

Deferred charges and other assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Current maturities of long-term debt

Accounts payable and accrued liabilities

Income taxes

Total current liabilities

Notes payable

Nonrecourse debt of a subsidiary

Deferred income taxes

Asset retirement obligations

Accrued major repair costs

Deferred credits and other liabilities

Stockholders’ equity

Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued

Common Stock, par $1.00, authorized 200,000,000 shares, issued 94,613,379 shares

Capital in excess of par value

Retained earnings

Accumulated other comprehensive income

Unamortized restricted stock awards

Treasury stock, 2,398,159 shares of Common Stock in 2005 and 2,578,002 shares in 2004, at cost

Total stockholders’ equity

Total liabilities and stockholders’ equity

Three Months Ended

March 31,

REVENUES

Sales and other operating revenues

Gain on sale of assets

Interest and other income

Total revenues

COSTS AND EXPENSES

Crude oil and product purchases

Operating expenses

Exploration expenses, including undeveloped lease amortization

Selling and general expenses

Depreciation, depletion and amortization

Accretion of asset retirement obligations

Interest expense

Interest capitalized

Total costs and expenses

Income from continuing operations before income taxes

Income tax expense

Income from continuing operations

Income from discontinued operations, net of tax

NET INCOME

INCOME PER COMMON SHARE – BASIC

Income from continuing operations

Income from discontinued operations

NET INCOME – BASIC

INCOME PER COMMON SHARE – DILUTED

Income from continuing operations

Income from discontinued operations

NET INCOME – DILUTED

Average common shares outstanding – basic

Average common shares outstanding – diluted

Net income

Other comprehensive income (loss), net of tax

Cash flow hedges

Net derivative gains (losses)

Reclassification to income

Total cash flow hedges

Net loss from foreign currency translation

COMPREHENSIVE INCOME

Three Months Ended

March 31,

OPERATING ACTIVITIES

Income from continuing operations

Adjustments to reconcile income from continuing operations to net cash provided by operating activities

Depreciation, depletion and amortization

Provisions for major repairs

Expenditures for major repairs and asset retirements

Dry hole costs

Amortization of undeveloped leases

Accretion of asset retirement obligations

Deferred and noncurrent income tax charges

Pretax gains from disposition of assets

Net (increase) decrease in operating working capital other than cash and cash equivalents

Other

Net cash provided by continuing operations

Net cash provided by discontinued operations

Net cash provided by operating activities

INVESTING ACTIVITIES

Property additions and dry hole costs

Proceeds from sales of assets

Proceeds from maturities of marketable securities

Other – net

Investing activities of discontinued operations

Net cash required by investing activities

FINANCING ACTIVITIES

Decrease in notes payable

Decrease in nonrecourse debt of a subsidiary

Proceeds from exercise of stock options and employee stock purchase plans

Cash dividends paid

Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents at January 1

Cash and cash equivalents at March 31

SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES

Cash income taxes paid

Interest capitalized in excess of amounts paid

Three Months Ended

March 31,

Cumulative Preferred Stock – par $100, authorized 400,000 shares, none issued

Common Stock – par $1.00, authorized 200,000,000 shares, issued 94,613,379 shares

Balance at beginning and end of period

Capital in Excess of Par Value

Balance at beginning of period

Exercise of stock options, including income tax benefits

Restricted stock transactions and other

Sale of stock under employee stock purchase plans

Balance at end period

Retained Earnings

Balance at beginning of period

Net income for the period