A message from our Chairman and CEO

In 2023, ConocoPhillips continued to manage environmental and social-related risks across our global portfolio, while delivering strong financial and operational performance. Energy supply and security remained key themes globally, as rising demand and market volatility reinforced the importance of a reliable and affordable energy supply. Amid an uncertain macro environment, our strategy is resilient and underpinned by an unwavering commitment to sustainability.

The energy transition will be complex and will continue to evolve, with oil and natural gas projected to remain essential parts of the energy supply mix for decades across a broad range of transition scenarios. We intend to play a valued role in this transition by executing on the tenets of our Triple Mandate. These include:

• Meeting transition pathway energy demand, which requires a focus on delivering production that will best compete in any transition scenario. This production will be delivered from a diverse portfolio of resources with a competitive cost of supply and low greenhouse gas (GHG) emissions intensity.
• Delivering competitive returns to shareholders, with our greater than 30% of cash from operations (CFO) commitment. Since our 2016 strategy reset, we have a track record of delivering above 40% of CFO.
• Driving accountability for the emissions that are within our control. We are progressing toward our net-zero Scope 1 and Scope 2 emissions ambition.

This year’s Sustainability Report highlights strong environmental and social performance that supports ConocoPhillips as a company of choice for our many stakeholders. Efforts and results in this area are important to our employees, neighboring communities, financial sector partners and shareholders, all of whom we actively engage with to align on shared value.

Last year, we took a proactive approach to improving the data quality of reported GHG emissions. After surveying a representative sample of our sites, we updated our reported methane emissions to reflect a more accurate estimate of equipment counts and classifications, and flare downtime. This resulted in an increase in methane emissions estimates compared to 2022. Accounting for the increase, we remain on track to achieve our near-zero methane emissions target by 2030 by executing our comprehensive emissions reduction plan across our Lower 48 assets.

As a member of the Oil and Gas Methane Partnership (OGMP) 2.0 initiative, we collaborate with peers and non-industry participants to improve methane measurement and reporting. We were awarded the OGMP 2.0 Gold Standard Pathway designation in recognition of our multiyear measurement-based reporting plan, which goes beyond current regulatory requirements and meets our commitment to data quality and transparent reporting.

Simultaneously, our Low Carbon Technologies organization continues to work with the company’s business units to develop and implement region-specific emissions reduction initiatives and identify potential technology solutions for hard-to-abate emissions.

We believe ongoing engagement with key stakeholders is integral to recognizing interests, accelerating performance and supporting effective policy. This communication and collaboration allows us to understand priorities and concerns, so that we can respond to risks and opportunities that will arise throughout the energy transition.

Looking ahead, we will continue to integrate sustainability into our planning and decision making, while delivering strong financial and operational performance in the years to come.

Ryan Lance, Chairman and Chief Executive Officer
August 2024