Underlying profitability and cash generation of considerable upstream reserves and production. Diversity from geographic spread, with OECD core assets; and some from upstream and downstream mix. Inherently cyclical, volatile, and capital-intensive hydrocarbon industries, with presently depressed U.S. gas prices. Exposure to some concentrated country risks. Prudent net leverage and liquidity management. Unquantified fines and penalties, and litigation uncertainties relating to the oil spill from the Macondo well in the Gulf of Mexico in April 2010. Exposure to pension funding volatility and unfunded pensions. Our base-case assumptions include funds from operations (FFO) strengthening in both 2014 and 2013, compared with 2012, resulting in adjusted FFO to debt of at least 45%. We also assume that any short-term payments arising from Gulf
