“We expect the joint venture to fund its own activity from its own cash flows, so no to little capital expenditures for ConocoPhillips is our base case.”

In context

“Andrew O'Brien (President and Chief Executive Officer-designate / Chief Financial Officer and Executive Vice President, Strategy and Commercial): Thank you. I will broaden a bit and talk about Iraq and Syria, because there are similarities. We are targeting large resource bases with low entry costs, competitive cost supply and structures that become self-funding relatively quickly. A few important points: first, the contract structure is attractive. Under this agreement, we receive a share of incremental production and reserves and we recover our costs. Second, capital to get into this is modest. We currently expect the Iraq transaction with Kirkuk to close around year-end and acquisition capital to be in the $300 to $500 million at close, including our share of historical costs spent to date and expectations of costs from now to year-end. We expect the joint venture to fund its own activity from its own cash flows, so no to little capital expenditures for ConocoPhillips is our base case. Most importantly, this asset competes well within our portfolio. We are looking at cost of supply around $30 per barrel and long-term resource upside. In Syria, there were smaller opportunities that share similar characteristics: producing assets that are underdeveloped, providing long-term optionality, and fitting our skillset—ConocoPhillips has a long history in Syria. The common denominator is stepping into existing producing assets that are underdeveloped where redevelopment can be largely funded from the assets' own cash flow, preserving capital efficiency. We see no impact on our $7 billion free cash flow inflection in 2029 from these transactions; in fact, these are upside to that in the future. These are great additions to the portfolio and fit within our strategy of high-grading the portfolio while keeping capital discipline.”