FOURTH QUARTER 2025 EARNINGS CALL January 29, 2026 1 Forward-looking Statements This presentation includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to m ...

Core Viewpoint - The energy sector is currently the best-performing stock market sector, with a year-to-date increase of 7.9%, contrasting with a 5.1% decline in the S&P 500, driven by leading oil and gas companies that provide safety amid economic uncertainty and trade tensions [1] Group 1: Company Performance and Cash Flow - ExxonMobil, Chevron, and ConocoPhillips are highlighted as strong dividend stocks due to their ability to generate significant free cash flow (FCF) even at current oil prices [2][3] - ExxonMobil aims to break even at $30 per barrel Brent by 2030 and projects $110 billion in surplus cash through 2030, even if Brent averages $55 per barrel [4] - Chevron expects to generate $5 billion in FCF at $70 Brent in 2025 and $6 billion in 2026, with 75% of its oil investments breaking even below $50 per barrel Brent [5] - ConocoPhillips is investing in long-term projects expected to yield $6 billion in incremental FCF, supported by its acquisition of Marathon Oil [6] Group 2: Capital Return Programs - All three companies are returning substantial amounts to shareholders, with ExxonMobil returning $36 billion in 2024, Chevron over $75 billion between 2022 and 2024, and ConocoPhillips planning to return $10 billion in 2025 [7][8][9] - Despite high yields, these companies spent more on buybacks than dividends in 2024, indicating strong FCF generation and providing a cushion against falling oil prices [10] Group 3: Financial Health and Valuation - ExxonMobil, Chevron, and ConocoPhillips maintain strong balance sheets with debt-to-capital ratios near 10-year lows, allowing them to support operations and capital expenditures with FCF [12][13] - The companies exhibit reasonable valuations with low price-to-earnings and price-to-FCF ratios, suggesting they are good investment values [14] - Valuation metrics are based on trailing-12-month results, and while margins may decrease with lower oil prices in 2025, acquisitions and expansions could still drive earnings and FCF growth [15][16][17] Group 4: Investment Appeal - ExxonMobil, Chevron, and ConocoPhillips are positioned to grow cash flows and return profits to shareholders, offering yields significantly higher than the S&P 500 average of 1.3%, making them attractive for passive income investors [18] - Although energy is not typically viewed as a safe sector, these high-quality companies are considered safe stocks due to their strong balance sheets and manageable payouts [19]