Dear fellow shareholders,

2024 was another strong year for ConocoPhillips.

We continued to deliver on our returns-focused

value proposition, distributed $9.1 billion to

shareholders and enhanced our portfolio with

the acquisition of Marathon Oil. We achieved

significant operational milestones across our

business with a focus on safety and efficiency.

And we further progressed our global

liquefied natural gas (LNG) strategy.

Looking ahead to 2025, we remain

committed to returning over 30% of cash

from operations (CFO) to our shareholders,

with a planned target of $10 billion in

distributions.

These accomplishments align with

our Triple Mandate of responsibly and

reliably meeting global energy demand

and delivering competitive returns on

and of capital, while working to meet our

previously established emissions-reduction

targets. They also reflect the commitment

and ingenuity of our workforce.

Industry-leading value

proposition

At ConocoPhillips, our focus is on

delivering superior returns through the

cycles based on our foundational principles

of balance sheet strength, peer-leading

distributions and disciplined investments,

with an emphasis on environmental,

social and governance performance. We

are committed to our value proposition

and financial plan that produce reliable

free cash flow, allowing us to reward

shareholders now and in the future.

With assets in some of the most prolific

basins in the U.S. Lower 48 and Alaska, as

well as in Africa, Asia, Australia, Canada

and Europe, ConocoPhillips produced

1,987 thousand barrels of oil equivalent

per day (MBOED) globally in 2024, which

was a record for the company. Our reserve

replacement ratio was 244% and our

organic reserve replacement ratio was

123%. In the Lower 48, we continued to

deliver drilling and completion efficiency

improvements, resulting in mid-single-

digit production growth while maintaining

similar activity levels as in 2023. In Alaska,

our teams reached first oil at Nuna, and we

opportunistically exercised our preferential

rights to acquire additional working interests

in the Kuparuk River and Prudhoe Bay Units.

Internationally, we reached first production

at Eldfisk North in Norway and Bohai Phase

5 in China. We also celebrated the 1,000th

cargo lifts at Bohai Bay and APLNG. And the

company progressed long-cycle projects,

including Willow in Alaska, North Field East

and North Field South in Qatar, and Port

Arthur LNG along the U.S. Gulf Coast.

ConocoPhillips always looks for

opportunities to enhance our portfolio

— but only when they meet our rigorous

financial framework and strengthen our

business. In November 2024, we acquired

Marathon Oil in a $22.5 billion all-stock

transaction, adding high-quality, low

cost of supply inventory adjacent to our

leading U.S. unconventional position

in the Eagle Ford, Bakken and Permian

Basin. We have a strong history of

seamlessly integrating assets, and we

expect the Marathon Oil transaction to

deliver synergies of over $1 billion on a

run rate basis by the end of 2025, half of

which were incorporated into our 2025

capital guidance.

We also advanced our global LNG

strategy in 2024 through new long-term

agreements in Europe and Asia. With the

addition of Marathon Oil, we’ve added

approximately 2 million tonnes per annum

of net LNG capacity in Equatorial Guinea

to our global portfolio.

We have equity,

offtake and regasification agreements

across major global markets.

Our competitive advantage

ConocoPhillips executed across all

aspects of our Triple Mandate in 2024.

We achieved a 14% return on capital

employed and returned $9.1 billion of

capital to shareholders, well in excess

of our greater than 30% of CFO annual

through-the-cycle commitment. In December

2024, we increased our ordinary dividend by

34%, effectively incorporating our variable

return of cash into the ordinary dividend.

Since 2017, following our strategy reset,

our total shareholder distributions have

averaged more than 45% of CFO. We believe

that our CFO-based returns framework

differentiates us relative to peers and is a

competitive advantage.

As part of our commitment to reduce Scope 1

and Scope 2 greenhouse gas emissions, our

Low Carbon Technologies team worked with

our business units to develop and implement

region-specific emissions-reduction initiatives

and identify potential technology solutions for

hard-to-abate emissions. We are in our third

year of membership in the Oil & Gas Methane

Partnership 2.0 and recently achieved the

Gold Standard reporting designation. This

recognition is for our ambitious measurement-

based methane emissions reporting that goes

beyond current regulatory requirements.

World-class workforce

At ConocoPhillips, we work together to help

supply the energy that communities around

the world depend on. Our people make that

mission possible. Every day, we strive to

create a culture that prioritizes safety, well-

being and career growth, with a focus on

innovation and collaboration.

Positioned for the future

The world needs access to responsibly

produced, reliable energy — and

ConocoPhillips is uniquely equipped to

deliver it with a deep, durable and diverse

portfolio that provides competitive returns

and cash flow. Combined with our high-

performing operations, continuously

advancing technology and world-class

workforce, ConocoPhillips is well positioned

to achieve strong, consistent financial

results, now and for decades to come.

Ryan M. Lance

Chairman and Chief Executive Officer

Feb. 18, 2025