ConocoPhillips

Welcome to the first quarter 2025 ConocoPhillips Earnings Conference Call. My name is Liz, 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.

Thank you, Liz, and welcome everyone to our first quarter 2025 earnings conference call. On the call today are several members of the ConocoPhillips leadership team, including Brian Lance, Chairman and CEO, Bill Bullock, Executive Vice President and Chief Financial Officer, Annie O'Brien, Senior Vice President of Strategy, Commercial, Sustainability, and Technology, Nick Holtz, Executive Vice President, Lower 48, and Kirk Johnson, Senior Vice President of Global Operations. Ryan and Bill will kick off the call with opening remarks, after which the team will be available for your questions. For the Q&A, we will be taking one question per caller. A few quick reminders. First, along with today's release, we have published supplemental financial materials and a slide presentation, which you can find on the Investor Relations website. Second, during this call, we will make 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. And we will make reference to some non-GAAP financial measures. Reconciliations to our nearest corresponding GAAP measure can be found in today's release or on our website. With that, I will turn the call over to Ryan.

Thanks, Phil, and thank you to everyone for joining our first quarter 2025 earnings conference call. Before we cover the details of our first quarter results, some comments on the macro. Clearly, the current environment is marked by both uncertainty and volatility. Outlooks for global economic growth and oil demand have been revised lower. And on the supply side, OPEC Plus is unwinding voluntary cuts quicker than expected. And as a result, oil prices have softened relative to the first quarter. However, the ultimate depth and duration of this current price environment remains unclear. And as I've said in the past, ConocoPhillips is built for this with clear competitive advantages. We have a deep, durable, and diverse portfolio. We have decades of inventory below our $40 per barrel WTI cost-to-supply threshold, both in the U.S. and internationally. And our advantaged U.S. inventory position in particular should become increasingly evident as the market sorts through the inventory halves, and have-nots in the current environment. We believe we are the clear leader of the haves, and we have a disciplined capital allocation framework that is battle-tested through the cycles. In addition, our company is executing well. Our integration of Marathon Oil is progressing ahead of schedule, and we are finding additional opportunities to enhance capital efficiency and reduce costs across the entire organization, as reflected in our updated guidance. which includes about a half a billion dollar reduction to our capital spending and a 200 million reduction in operating costs while keeping our production guidance unchanged. So we are delivering the same volume for less, less capital and reduced operating costs. And we will keep working to further advance this plan as the year progresses. We'll also continue monitoring the macro environment. We have flexibility in our capital program we could exercise. should conditions warrant. We've been here before, and we know how to manage through a more challenging environment. With respect to return of capital, we distributed $2.5 billion to shareholders in the first quarter. We believe our shares represent a very attractive investment at these prices, and we will continue returning a significant portion of our cash flow to our shareholders, consistent with our long-term track record of distributing 45% of our annual CFO. To close out my commentary, while I recognize the current focus is on the near term macro uncertainties, we are playing the long game. I'll remind everyone that our fundamental long term value proposition is truly differentiated. We have a deep, durable, and diverse portfolio with decades of high quality, low cost of supply inventory to develop. And we are on the cusp of a compelling, multi-year free cash flow growth trajectory, led by our high-quality logger cycle investments in Alaska and LNG. This underlying improvement in our free cash flow will structurally lower our break-even and increase our capacity to return capital to shareholders. Finally, you'll also have seen our announcement this morning that Bill Bullock has decided to retire after 39 years of service to the company. and that Andy O'Brien will take over as CFO. Bill has been an outstanding colleague and an integral part of our executive leadership team. I know you will all join me in congratulating Bill on an exemplary career and wishing him well in retirement. Now, I'll hand it over to Bill for the last time to cover our first quarter performance and 2025 guidance in more detail.