We believe ConocoPhillips has an essential role in responsibly meeting global energy demand. As the demand continues to rise for all forms of energy — including oil and natural gas — we are focused on managing environmental and social-related risks as an integral part of achieving our strong financial and operational performance. While doing so, we are committed to delivering competitive returns on and of capital and working to meet our operational emissions intensity reduction targets.
Since the publication of our last Sustainability Report, we have made progress in reducing emissions intensity across our operations. We are on track to deliver on our 2030 operational greenhouse gas (GHG) emissions intensity reduction targets and continue to invest in projects that support our goal of reducing GHG emissions intensity by 50-60% by 2030, from a 2016 baseline.
Concurrently, we are advancing activities to achieve near-zero methane emissions intensity by 2030. Now in our third year of participation in the Oil & Gas Methane Partnership 2.0, we recently earned the Gold Standard Reporting designation for our measurement-based methane emissions reporting, demonstrating leadership that goes beyond current regulatory requirements. We are on schedule to meet the World Bank Zero Routine Flaring goal by the end of 2025, excluding the Marathon Oil assets acquired in late 2024. Integration of those assets into our climate-related risk framework is underway.
As we work to reduce our operational emissions, it has become evident that the shift in global priorities — toward energy security, availability, and affordability — has slowed the progress of the supportive policies and economically viable technologies needed to achieve net-zero by a defined deadline. As a result, while our ambition to achieve net-zero operational emissions remains unchanged, we are no longer tying that ambition to a specific year.
At the same time, we continue to build a dynamic liquefied natural gas (LNG) portfolio, which plays a critical role in displacing higher-emissions fuels such as coal in power generation. In 2024, we added to our global LNG portfolio through agreements that provide additional access to European and Asian natural gas markets. The acquisition of Marathon Oil further strengthens our position, adding approximately 2 million tonnes per annum of net LNG capacity in Equatorial Guinea.
Amid ongoing market volatility and macroeconomic and geopolitical uncertainty, our strategy remains consistent and durable. Despite longer-term uncertainties, our near-term strategy continues to prioritize building a low-cost of supply, low-GHG intensity portfolio that is resilient to commodity price cycles and policy fluctuations.
We are committed to ongoing, meaningful engagement with key stakeholders as we work to continuously improve our environmental and social performance. This collaboration provides critical insight into stakeholder priorities, helping us effectively respond to risks and opportunities.
Looking ahead, we will continue to play a significant role in meeting future global energy demand. Integrating sustainability into our planning and decision making enables us to strengthen our competitive advantage while creating value for stakeholders.
Ryan Lance, Chairman and Chief Executive Officer
June 2025