ConocoPhillips

Welcome to the Q4 2022 ConocoPhillips Earnings Conference Call. My name is Michelle, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press star 1-1 on your touch-tone phone. I will now turn the call over to Phil Gresh, Vice President, Investor Relations. Sir, you may begin.

Yes, thank you, Operator, and welcome to everyone joining us for our fourth quarter 2022 earnings conference call. On the call today are several members of the ConcoPhillips leadership team, including Ryan Lance, Chairman and CEO, Bill Bullock, Executive Vice President and Chief Financial Officer, Dominic Macklin, Executive Vice President of Strategy, Sustainability, and Technology, Nick Olds, Executive Vice President of Lower 48, Andy O'Brien, Senior Vice President of Global Operations, and Tim Leach, Advisor to the CEO. Ryan and Bill will kick off the call with opening remarks, after which the team will be available for your questions. A few quick reminders. First, along with today's release, we published supplemental financial materials and a presentation, which you can find on our Investor Relations website. Second, during this call, we'll be making forward-looking statements based on current expectations. Actual results may differ due to factors noted in today's release and in our periodic SEC filings. Finally, we will make reference to some non-GAAP financial measures. Reconciliations to the nearest corresponding GAAP measure can be found in today's release and on our website. With that, I will turn the call over to Ryan.

Thanks, Phil, and thank you to everyone for joining our fourth quarter 2022 earnings conference call. As we sit here today, there are a number of cross-currents in the global economy. While the energy sector is not immune to potential macro headwinds, our fundamental outlook remains constructive. On the demand side, we think that growth will continue in 2023, aided by normalization in China mobility following the loosening of COVID restrictions. On the supply side, we believe that continued producer discipline and the expected impacts of Russian oil and product sanctions are likely to keep balances tight. So while commodity prices are currently not as high as they averaged in 2022, we see duration to this upcycle. Now, stepping back, we remain steadfast in our view that a successful energy transition must meet society's fundamental need for secure, reliable, and affordable energy while also progressing toward a lower carbon future. While we all recognize the challenges that global energy policymakers face to achieve the goals of the Paris Agreement, it is clear that doing so requires an all-the-above approach. This can be done by enacting policies that encourage the development of lower-emission energy sources and oil and gas resources. These policies should include efforts aimed at fiscal stability, streamlining of the permitting process, increased transparency on timelines, and supporting critical infrastructure. These are not just necessary for the oil and gas industry, but also for nuclear, hydrogen, and renewables, all of which will be necessary to deliver on the energy transition. At the end of the day, it's critical for our administration to remember that North American energy production is a stabilizing force for both global energy security and meeting energy transition demand. Meeting that demand will require investments in medium and long cycle projects in addition to short cycle U.S. shale. This is why you see ConocoPhillips leaning a bit further across our deep and diversified portfolio in 2023. Whether it's the lower 48, where we achieved record production in 2022, or our diversified global portfolio, ConocoPhillips is well-positioned to meet the world's long-term energy needs while also reducing our own emissions footprint. Shifting to our 2022 performance, ConocoPhillips showed continuous strong execution across our triple mandate. We generated a trailing 12-month return on capital employed of 27%, the highest since the spin. We delivered on our plan to return $15 billion of capital to our shareholders, which represented 53% of our CFO, while in excess of our greater than 30% annual through-the-cycle commitment. And we further advanced our net zero operational emissions ambition with a new medium-term methane intensity target consistent with our recent commitment to joining OGMP 2.0. Now looking ahead, ConocoPhillips is well positioned to further deliver on our triple mandate in 2023 with a well-balanced capital allocation strategy. This morning, we announced a plan to return $11 billion of capital to shareholders. which represents about 50% of our forecasted CFO at $80 WTI. The other half of our cash flow will be dedicated to reinvesting in the business. From a portfolio perspective, our deep and well-diversified asset base is well-positioned to generate solid cash flow growth for decades to come. This is further evidenced by our organic reserve replacement ratio of 177% in 2022. We're also enthusiastic about our new LNG opportunities we are participating in in Qatar and the United States, which are highly complementary to our existing LNG business. And we look forward to providing you a comprehensive update about our long-term strategy and our financial outlook at our upcoming analyst and investor meeting on April 12th at the New York Stock Exchange. Now let me turn the call over to Bill to cover our fourth quarter performance and 2023 guidance in a bit more detail.