Outlook

We have a planned capital program of $.9 - $1.3 billion for 2009, with a majority supporting low-risk development in our U.S. operations onshore. We will drill between 330 - 360 gross wells in 2009.focusing on high value-add projects with significant inventory and repeatability, including those in:

• Cotton Valley horizontal wells and oil in the Altamont region;
• Haynesville, Niobrara (Pierre), and New Albany shales;
• Black Warrior Basin coal bed methane.

2009 production levels will be consistent with our 2008 production levels.

Overall, our drilling and development program is low-risk and well-balanced. In 2009, we will place more emphasis on our onshore business and on further improving operational efficiencies.

We will build on our 2008 progress in 2009 by focusing on:

• Developing domestic pilot programs in shale plays;
• Growing non-proved inventory through studies and assessments;
• Advancing international projects;
• Improve capital and expense efficiencies.

*Cautionary Statement Regarding Forward-looking Statements