Strategic Performance and Market Positioning

• Performance was driven by strong Lower 48 execution and high-quality inventory, achieving 4% year-over-year underlying growth in the region.

• Management attributes financial strength to an unhedged position in oil and LNG, capturing significant price upside as global markets tighten.

• The company is maintaining a ‘steady-state’ operational approach in the Permian to preserve efficiency gains and avoid ‘frac gaps’ between drilling and completion teams.

• Strategic positioning is focused on being ‘resource rich’ in an increasingly ‘resource scarce’ world, utilizing a deep inventory of low cost of supply assets.

• Operational context in Alaska remains a primary focus, with the Willow project reaching the 50% completion milestone and successful winter construction.

• Management believes the oil price floor will likely rise following the start of the conflict and is currently assessing the long-term impact on the mid-cycle equilibrium price.

• The company is prioritizing shareholder returns, committing to 45% of CFO through dividends and share repurchases across commodity cycles.

Outlook and Strategic Trajectory

• The company is on track for a $7 billion free cash flow inflection by 2029, underpinned by the Willow project, LNG expansions, and cost reduction programs.

• Guidance for 2026 assumes a 20 thousand barrel of oil equivalent per day annual impact due to the exclusion of Qatar production from second-quarter forecasts.

• Capital expenditure guidance was increased to $12 billion to $12.5 billion to account for modest Permian activity additions and higher non-operated spending.

• Management expects to achieve a $1 billion run-rate reduction in operating costs by the end of 2026 through labor and lease operating cost efficiencies.

• Future LNG strategy involves placing the remaining Port Arthur Phase 1 offtake into a market characterized by high interest and intensifying conversations.

Risk Factors and Structural Dynamics

• The Middle East conflict has resulted in the temporary shutdown of Qatar production (QG3), impacting approximately 3% of total company production.

• A royalty rate adjustment at Surmont due to higher oil prices is expected to impact annual production by 15 thousand barrels of oil equivalent per day.

• Global oil demand outlook was downgraded to ‘flat’ year-over-year, with potential downside risks if regional conflicts persist and demand curtailments accelerate.

• The $2 billion remaining in the divestiture program is focused on non-core Permian assets that would not be developed for 10 to 15 years.