“Moving to operating costs, full-year guidance of $10.2 billion is unchanged, reflecting a $400 million reduction from 2025 due to the benefits of our cost reduction and margin enhancement program.”

In context

“ar and transparent framework to model and assess the underlying performance of the company. For production, the midpoint of our annual guidance is updated to 2.31 million barrels of oil equivalent per day. This reflects a 20 thousand barrel of oil equivalent per day annual impact due to Qatar being excluded from second-quarter production guidance and a 15 thousand barrel of oil equivalent per day annual royalty rate adjustment at Surmont due to higher prices. We have made no other adjustments to our annual production guidance. The midpoint of our second-quarter production guidance is 2.2 million barrels of oil equivalent per day, which reflects the full exclusion of Qatar production from guidance for the quarter, the Surmont royalty rate adjustment, and planned second-quarter maintenance. Moving to operating costs, full-year guidance of $10.2 billion is unchanged, reflecting a $400 million reduction from 2025 due to the benefits of our cost reduction and margin enhancement program. We made strong progress in the first quarter and we remain confident in realizing the full $1 billion run rate by year end. For capital spending, we are updating our guidance to a range of $12 billion to $12.5 billion versus our prior guidance of about $12 billion, representing a 2% increase at the midpoint. This increase is due to slightly more Permian activity over the second half of the year; we are adding a rig to keep pace with the completion efficiencies, and we expect higher levels of non-operated spend. These modest activity additions maintain our operational continuity into 2027. Additionally, we are incorporating a guidance range to capture the uncertainty around the macro environment as well as the Middle East conflict, specifically as it pertains to timing for NFE and NFS spen”