A disciplined management team with a strong continuity of strategy and philosophy. Of these, an emphasis on achieving superior returns on capital employed and maintaining low debt leverage are the most critical. Operations are highly cost competitive and geographically diversified. Sustainable competitive advantages are provided by their economies of scale, technical complexity, acreage, and market positions. A large backlog of projects should help stem production declines for much of the next decade at attractive rates of return. Ample liquidity and financial flexibility provided by outstanding free operating cash flow, large cash balances, and exceptional access to capital. Excellent technical talent enables the company to replace reserves while maintaining highly competitive unit costs. A strong research and development effort helps provide
