On this page of StockholderLetter.com we present the latest annual shareholder letter from CONOCOPHILLIPS — ticker symbol COP. Reading current and past COP letters to shareholders can bring important insights into the investment thesis.
2024 Annual Report
Letter to shareholders Dear fellow shareholders, 2024 was another strong year for ConocoPhillips. And we further progressed our global We continued to deliver on our returns-focused liquefied natural gas (LNG) strategy. value proposition, distributed $9.1 billion to Looking ahead to 2025, we remain shareholders and enhanced our portfolio with committed to returning over 30% of cash the acquisition of Marathon Oil. We achieved from operations (CFO) to our shareholders, significant operational milestones across our with a planned target of $10 billion in business with a focus on safety and efficiency. distributions. These accomplishments align with ADVANCING A FINANCIAL FRAMEWORK THAT REWARDS SHAREHOLDERS our Triple Mandate of responsibly and reliably meeting global energy demand and delivering competitive returns on and of capital, while working to meet our Ordinary dividend and variable return of cash $3.6B Share repurchases $5.5B 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 Shareholder return in 2024 9.1B Delivering on our returns-focused value proposition 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 ConocoPhillips is well positioned to achieve strong, consistent financial results, now and for decades to come. improvements, resulting in mid-singledigit production growth while maintaining at Eldfisk North in Norway and Bohai Phase similar activity levels as in 2023. In Alaska, 5 in China. We also celebrated the 1,000th our teams reached first oil at Nuna, and we cargo lifts at Bohai Bay and APLNG. And the opportunistically exercised our preferential company progressed long-cycle projects, rights to acquire additional working interests including Willow in Alaska, North Field East in the Kuparuk River and Prudhoe Bay Units. and North Field South in Qatar, and Port Internationally, we reached first production Arthur LNG along the U.S. Gulf Coast.
ConocoPhillips at a glance Returned $9.1 billion of capital to shareholders. Increased ordinary dividend by 34%. Produced 1,987 MBOED. 1 but only when they meet our rigorous business. In November 2024, we acquired 2024 HIGHLIGHTS $9.2 billion. opportunities to enhance our portfolio financial framework and strengthen our As of Dec. 31, 2024 Generated earnings1 of ConocoPhillips always looks for Marathon Oil in a $22.5 billion all-stock Acquired Marathon Oil, on track to deliver over $1 billion in synergies. Reached first oil at new sites in Norway, Alaska and China. Expanded global LNG business with new agreements in Europe and Asia. Earnings refers to net income. 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 WHO WE ARE approximately 2 million tonnes per annum of net LNG capacity in Equatorial Guinea to our global portfolio. We have equity, ONE OF THE WORLD S LEADING EXPLORATION AND PRODUCTION COMPANIES 14 COUNTRIES WITH OPERATIONS AND ACTIVITIES offtake and regasification agreements across major global markets. Our competitive advantage ConocoPhillips executed across all aspects of our Triple Mandate in 2024. BALANCED, DIVERSIFIED GLOBAL PORTFOLIO 123B IN TOTAL ASSETS 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 Positioned for the future through-the-cycle commitment. In December The world needs access to responsibly 2024, we increased our ordinary dividend by produced, reliable energy and 34%, effectively incorporating our variable ConocoPhillips is uniquely equipped to return of cash into the ordinary dividend. deliver it with a deep, durable and diverse Since 2017, following our strategy reset, portfolio that provides competitive returns our total shareholder distributions have and cash flow. Combined with our high- averaged more than 45% of CFO. We believe performing operations, continuously that our CFO-based returns framework advancing technology and world-class differentiates us relative to peers and is a workforce, ConocoPhillips is well positioned competitive advantage. to achieve strong, consistent financial As part of our commitment to reduce Scope 1 results, now and for decades to come. 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 Ryan M. Lance hard-to-abate emissions. We are in our third Chairman and Chief Executive Officer year of membership in the Oil & Gas Methane Feb. 18, 2025 Partnership 2.0 and recently achieved the Gold Standard reporting designation. This recognition is for our ambitious measurementbased 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, wellbeing and career growth, with a focus on innovation and collaboration.
 • shareholder letter icon 3/31/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/3/2023 COP Stockholder Letter
 • stockholder letter icon 4/1/2024 COP Stockholder Letter
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COP Shareholder/Stockholder Letter Transcript:

2024
Annual Report

Letter to shareholders
Dear fellow shareholders,
2024 was another strong year for ConocoPhillips.
And we further progressed our global
We continued to deliver on our returns-focused
liquefied natural gas (LNG) strategy.
value proposition, distributed $9.1 billion to
Looking ahead to 2025, we remain
shareholders and enhanced our portfolio with
committed to returning over 30% of cash
the acquisition of Marathon Oil. We achieved
from operations (CFO) to our shareholders,
significant operational milestones across our
with a planned target of $10 billion in
business with a focus on safety and efficiency.
distributions.
These accomplishments align with
ADVANCING A FINANCIAL
FRAMEWORK THAT REWARDS
SHAREHOLDERS
our Triple Mandate of responsibly and
reliably meeting global energy demand
and delivering competitive returns on
and of capital, while working to meet our
Ordinary dividend
and variable return of cash
$3.6B

Share repurchases
$5.5B
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
Shareholder return in 2024
9.1B

Delivering on
our returns-focused
value proposition
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
   ConocoPhillips is
well positioned
to achieve strong,
consistent financial
results, now and for
decades to come.   
improvements, resulting in mid-singledigit production growth while maintaining
at Eldfisk North in Norway and Bohai Phase
similar activity levels as in 2023. In Alaska,
5 in China. We also celebrated the 1,000th
our teams reached first oil at Nuna, and we
cargo lifts at Bohai Bay and APLNG. And the
opportunistically exercised our preferential
company progressed long-cycle projects,
rights to acquire additional working interests
including Willow in Alaska, North Field East
in the Kuparuk River and Prudhoe Bay Units.
and North Field South in Qatar, and Port
Internationally, we reached first production
Arthur LNG along the U.S. Gulf Coast.

ConocoPhillips
at a glance
    Returned
$9.1 billion
of capital to
shareholders.
    Increased
ordinary
dividend by
34%.
    Produced
1,987 MBOED.
1
    but only when they meet our rigorous
business. In November 2024, we acquired
2024 HIGHLIGHTS
$9.2 billion.
opportunities to enhance our portfolio
financial framework and strengthen our
As of Dec. 31, 2024
    Generated
earnings1 of
ConocoPhillips always looks for
Marathon Oil in a $22.5 billion all-stock
    Acquired
Marathon Oil, on
track to deliver
over $1 billion
in synergies.
    Reached first oil
at new sites in
Norway, Alaska
and China.
    Expanded
global LNG
business with
new agreements in
Europe and Asia.
Earnings refers to net income.
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
WHO WE ARE
approximately 2 million tonnes per annum
of net LNG capacity in Equatorial Guinea
to our global portfolio. We have equity,
ONE OF THE
WORLD   S LEADING
EXPLORATION
AND PRODUCTION
COMPANIES
14
COUNTRIES
WITH OPERATIONS
AND ACTIVITIES
offtake and regasification agreements
across major global markets.
Our competitive advantage
ConocoPhillips executed across all
aspects of our Triple Mandate in 2024.
BALANCED,
DIVERSIFIED GLOBAL
PORTFOLIO
123B

IN TOTAL ASSETS
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
Positioned for the future
through-the-cycle commitment. In December
The world needs access to responsibly
2024, we increased our ordinary dividend by
produced, reliable energy     and
34%, effectively incorporating our variable
ConocoPhillips is uniquely equipped to
return of cash into the ordinary dividend.
deliver it with a deep, durable and diverse
Since 2017, following our strategy reset,
portfolio that provides competitive returns
our total shareholder distributions have
and cash flow. Combined with our high-
averaged more than 45% of CFO. We believe
performing operations, continuously
that our CFO-based returns framework
advancing technology and world-class
differentiates us relative to peers and is a
workforce, ConocoPhillips is well positioned
competitive advantage.
to achieve strong, consistent financial
As part of our commitment to reduce Scope 1
results, now and for decades to come.
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
Ryan M. Lance
hard-to-abate emissions. We are in our third
Chairman and Chief Executive Officer
year of membership in the Oil & Gas Methane
Feb. 18, 2025
Partnership 2.0 and recently achieved the
Gold Standard reporting designation. This
recognition is for our ambitious measurementbased 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, wellbeing and career growth, with a focus on
innovation and collaboration.



shareholder letter icon 3/31/2025 Letter Continued (Full PDF)
 

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