Total production increased to 2,389 MBOED in Q1 2025, up 487 MBOED from Q1 2024. The acquisition of Marathon Oil in November 2024 significantly contributed to this increase, demonstrating successful inorganic growth.

The company has closed definitive agreements to dispose of certain assets in the Lower 48 segment for proceeds of approximately $1.3 billion. This is part of a larger $2 billion disposition target communicated in conjunction with the Marathon Oil acquisition.

ConocoPhillips became the sole operator of the Kebabangan Cluster (KBBC) PSC in Malaysia in January 2025, extending the PSC to 2050 and achieving first oil at partner-operated Gumusut Phase 4 in February 2025.

Full-year capital expenditure guidance is lowered to $12.3 to $12.6 billion versus prior guidance of approximately $12.9 billion, while maintaining full-year production guidance. This indicates improved capital efficiency and effective project management.

The company distributed $2.5 billion to shareholders in Q1 2025, including $1.5 billion through share repurchases and $1.0 billion through the ordinary dividend. A second-quarter ordinary dividend of $0.78 per share was declared in May 2025.

Significant progress was made during the winter construction season at the Willow project, achieving critical milestones. This demonstrates effective project execution despite ongoing market volatility.

The price of crude oil declined due to several macroeconomic market impacts including the U.S. announcing the imposition of broad-ranging tariffs on several U.S. trade partners and the related reactions to such tariffs.

Continuing political and social attention to the issue of global climate change has resulted in a broad range of proposed or promulgated state, national and international laws focusing on GHG emissions reduction.

The company is subject to various lawsuits and claims, including those related to environmental damages. Accrued environmental costs were $210 million at March 31, 2025, compared to $206 million at December 31, 2024.

Average production increased 416 MBOED in the three-month period of 2025. Increases to production were primarily due to new wells online from our development programs in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.

Our realized bitumen price averaged $45.29 per barrel in the first quarter of 2025, an increase of two percent compared with $44.30 per barrel in the first quarter of 2024. The increase in the first quarter of 2025 was driven by narrowing WCS differentials due to increased egress at the Trans Mountain Pipeline Expansion.

Lower 48 segment realized gas prices improved in the first quarter of 2025 primarily due to fewer third-party pipeline constraints. Volatility in regional markers is expected throughout 2025.

Production and operating expenses in the first quarter of 2025 increased $491 million primarily due to impacts from our acquisition of Marathon Oil in the fourth quarter of 2024.

DD&A expenses in the first quarter of 2025 increased $535 million mainly due to impacts from our acquisition of Marathon Oil in the fourth quarter of 2024.

We expect to capture greater than $1 billion in synergies on a run rate basis within the first full year following the close of the transaction.

Technology includes our investments in low-carbon and other new technologies or businesses and licensing revenues. Other new technologies or businesses and licensing activities are focused on both conventional and tight oil reservoirs, shale gas, oil sands, enhanced oil recovery, as well as LNG.

The company continues to license its proprietary technology, including the Optimized Cascade® process technology, to customers to maximize the efficiency of LNG plants.

Achieved record Eagle Ford drilling performance from leveraging combined best practices, indicating operational improvements through technology and knowledge sharing.

Full-year capital expenditure guidance is lowered to $12.3 to $12.6 billion versus prior guidance of approximately $12.9 billion. This indicates improved capital efficiency and effective project management.

The company distributed $2.5 billion to shareholders in Q1 2025, including $1.5 billion through share repurchases and $1.0 billion through the ordinary dividend. A second-quarter ordinary dividend of $0.78 per share was declared in May 2025.

Also in the first quarter of 2025, we re-invested $3.4 billion into the business in the form of capital expenditures and investments, with over half of the expenditures related to flexible, short-cycle unconventional plays in the Lower 48 segment, where our production has access to both domestic and export markets.

The Climate Risk Strategy is intended to enable us to responsibly meet the global demand for energy, deliver competitive returns on and of capital and work to meet our previously established emissions-reduction targets.

To drive accountability for the emissions that are within our control, we are progressing toward our Scope 1 and Scope 2 emissions intensity targets.

The strategy sets out our choices around portfolio composition, emissions reductions, targets and incentives, emissions-related technology development, and our climate-related policy and finance sector engagement.

Commodity prices are the most significant factor impacting our profitability and related returns on and of capital to our shareholders. Dynamics that could influence world energy markets and commodity prices include, but are not limited to, global economic health, supply or demand disruptions or fears thereof caused by civil unrest, global pandemics, military conflicts, actions taken by OPEC Plus and other major oil producing countries, environmental laws, tariffs, governmental policies and weather-related disruptions.

In the second quarter of 2025, we began to see the price of crude oil decline due to several macroeconomic market impacts. This includes the U.S. announcing the imposition of broad-ranging tariffs on several U.S. trade partners and the related reactions to such tariffs, including retaliatory tariffs.

We continually monitor market fundamentals, including the impacts associated with geopolitical tensions and conflicts, global demand for our products, oil and gas inventory levels, governmental policies, tariffs, inflation and supply chain disruptions.