Chairman and CEO Ryan Lance

Ongoing engagement with stakeholders gives us the opportunity to understand the environmental and social issues that are not only important to them, but essential to our business success. In these conversations we hear requests for our participation in addressing matters ranging from local community concerns to broad global issues, as well as greater transparency about our performance. These engagements reinforce our long-standing commitment to demonstrating leadership in the way we produce natural gas and oil resources by being competitive both financially and with our environmental and social performance.

Determining how to effectively manage climate change while maintaining human and economic progress is among modern society's most compelling challenges. We believe there are many possible pathways to a low-carbon energy transition, and while natural gas and oil will continue to be part of the energy mix, how they are produced will remain critical. Though we cannot predict with certainty what the transition will look like, we are working to ensure we have a business strategy in place that provides ongoing resilience in a challenging marketplace. Our Managing Climate-Related Risks report, introduced in early 2019, outlines how we are building that resilient strategy.

We recognize that driving continuous improvement in environmental and social performance requires an effective internal governance structure. This includes managing sustainable development risks and opportunities companywide, from strategic planning through field operations. Our board of directors provides oversight, our Executive Leadership Team sets strategy and expectations, and our business units and functions implement action plans to address risk-based priorities.

We continually develop innovative solutions to manage our risks. For water management we increasingly utilize centralized gathering, storage and distribution systems to facilitate the use of recycled produced water for hydraulic fracturing. To minimize our exploration footprint, we built 140 miles of winter ice roads in Alaska that reduced the need for permanent gravel roads. We are pilot testing the use of drones to detect fugitive methane emissions and enable rapid leak repair. We have also reenergized our safety processes and tools by introducing human performance concepts and creating a learning culture to minimize or eliminate unexpected events.

Our innovation also extends to sustainability reporting. Rather than publish quickly outdated annual reports, we are moving toward providing real-time performance examples and timely updates on our website. These coupled with annual metrics reporting enhance transparency about our operations. We welcome comments on this new approach as well as on our other sustainability efforts at sdteam@conocophillips.com.

We consider sustainability vital to our business strategy. I am confident we have the people, processes and commitment in place to help solve the complex energy and environmental challenges of today and tomorrow.

Ryan Lance, Chairman and Chief Executive Officer

May 2019