1 | FINANCIAL REVIEW FINANCIAL REVIEW  » * See page 14 for definition of this non-GAAP measure.  *** Adjusted for field diff er entials. ****  Excludes unrealized gains (losses) natural gas and oil hedging.  **  PV-10 is the present v alue (10% discount rate) of estimated future gross revenues to be generated from the production of proved reserves, net of production and future development costs, using assumed prices and costs. Please see page 113 of our Form 10-K for information on the standardized measure of discounted future net cash flows. Years Ended December 31  ($ in millions, except per share data) Revenues Natural gas and oil sales  $ 5,647 $ 5,049 $ 7,858 $ 5,624 $ 5,619 $ 3,273 $ 1,936 $ Marketing, ga thering, compression and service operations sales   3,719 2,653 3,771 2,176 1,707 1,392 773 Total rev enues 9,366 7,702 11,629 7,800 7,326 4,665 2,709 Operating costs  Production e xpenses 893 876 889 640 490 317 205 Production taxes  157 107 284 216 176 208 104 General and administrative expenses  453 349 377 243 139 64 37 Marketing, ga thering, compression and service operations expenses  3,560 2,498 3,648 2,063 1,590 1,358 755 Depreciation, deple tion and amortization  1,614 1,615 2,144 1,988 1,462 945 611 Impairments and other  (116)  11,202 2,830 — 55 — 5 Total opera ting costs   6,561 16,647 10,172 5,150 3,912 2,892 1,717 Income (loss) from operations  2,805 (8,945)  1,457 2,650 3,414 1,773 992 Interest expense  (19)  (113)  (271)  (401)  (316)  (221)  (167)  Other income (e xpense) 243 (28)  (11)  15 26 10 5 Miscellaneous gains (losses)   (145)  (202)  (184)  83 117 (70)   (25)  Total other income (expense)  79 (343)  (466)  (303)   (173)  (281)  (187)  Income (loss) befor income taxes and cumulative effect of accounting change   2,884 (9,288)   991 2,347 3,241 1,492 805 Income tax expense (benefit):  Current   — 4 423 29 5 — — Deferred   1,110 (3,487)   (36)   863 1,242 545 290 Net income (loss) bef ore cumulative effect of accounting change, net of tax   1,774 (5,805)  604 1,455 1,994 947 515 Net (income) loss at tributable to noncontrolling interest  — (25)   — — — — — Cumulative effec of accounting change, net of tax  — — — — — — — Net income (loss)  1,774 (5,830)  604 1,455 1,994 947 515 Preferred stock dividends  (111)   (23)   (33)  (94)   (89)   (42)   (40)  Gain (loss) on conver sion/exchange of preferred stock   — — (67)  (128)   (10)  (26)  (36)  Net income (loss) av ailable to common shareholders  $  1,663 $  (5,853)  $  504 $  1,233 $  1,895 $  879 $  439 $  Earnings per common shar e – basic:  Income (loss) bef ore cumulative effect of accounting change  $ 2.63 $ (9.57)  $ 0.94 $ 2.70 $ 4.76 $ 2.73 $ 1.73 $ Cumulative effec t of accounting change  — — — — — — — EPS – basic  $  2.63 $  (9.57)  $  0.94 $  2.70 $  4.76 $  2.73 $  1.73 $  Earnings per common shar e – diluted:  Income (loss) bef ore cumulative effect of accounting change  $ 2.51 $ (9.57)  $ 0.93 $ 2.63 $ 4.33 $ 2.51 $ 1.53 $ Cumulative effec t of accounting change  — — — — — — — EPS – diluted  $  2.51 $  (9.57)  $  0.93 $  2.63 $  4.33 $  2.51 $  1.53 $  Cash provided b (used in) operating activities (GAAP)  $ 5,117 $ 4,356 $ 5,357 $ 4,974 $ 4,843 $ 2,407 $ 1,432 $ Operating cash flo (non-GAAP) * $  4,548 $  4,333 $  5,299 $  4,675 $  4,040 $  2,426 $   1,403 $  Balance Shee Data (at end of period) Total assets  $  37,179 $  29,914 $  38,593 $  30,764 $  24,413 $  16,114 $  8,245 $  Long-term debt, ne of current maturities  $  12,640 $ 12,295 $ 13,175 $ 10,178 $ 7,187 $ 5,286 $ 3,075 $ Stockholders’ equit (deficit)  $  15,264 $  12,341 $  17,017 $  12,624 $  11,366 $  6,299 $  3,163 $  Other Operating and Financial Data Proved reserves in na tural gas equivalents (bcfe)   17,096 14,254 12,051 10,879 8,956 7,521 4,902 Future net natural gas and oil revenues discounted at 10% ** $  15,146 $  9,449 $  15,601 $  20,573 $  13,647 $  22,934 $  10,504 $  Natural gas pric used in reserve report (per mcf)***  $ 3.52 $ 3.13 $ 5.12 $ 6.19 $ 5.41 $ 8.76 $ 5.65 $ Oil price used in r eserv e report (per bbl)***  75.17 56.72 41.60 90.58 56.25 56.41 39.91 Natural gas production (bcf)   925 835 775 655 526 422 322 Oil production (mmbbl) 18.4 11.8 11.2 9.9 8.7 7.7 6.8 Production (bcfe)  1,035 906 843 714 578 469 363 Sales price per mcf e**** $ 6.09 $ 6.22 $ 8.38 $ 8.40 $ 8.86 $ 6.90 $ 5.23 $ Production expense per mcfe  0.86 0.97 1.05 0.90 0.85 0.68 0.56 Production taxes per mcfe  $ 0.15 $ 0.12 $ 0.34 $ 0.30 $ 0.31 $ 0.44 $ 0.29 $ General and adminis trative expense per mcfe  0.44 0.38 0.45 0.34 0.24 0.14 0.10 Depreciation, deple tion and amortization expense per mcfe  $ 1.56 $ 1.78 $ 2.55 $ 2.78 $ 2.53 $ 2.02 $ 1.69 $ Number of employees (full-time at end of period)  10,021 8,152 7,649 6,219 4,883 2,885 1,718 Cash dividends declar ed per common share  $ 0.30 $ 0.30 $ 0.2925 $ 0.2625 $ 0.23 $ 0.195 $ 0.17 $ Stock price (a end of period – split adjusted)  $  25.91 $  25.88 $  16.17 $  39.20 $  29.05 $  31.73 $  16.50 $  Financialand Oper ating Data  2010  2009  2008  2007  2006  2005  2004 