Financial Data and Key Metrics Changes - In Q2 2025, the company reported adjusted earnings of approximately $4.3 billion and cash flow from operations of $11.9 billion, despite a challenging macro environment [8][11] - The company achieved $800 million in structural cost reductions in 2025, totaling $3.9 billion since 2022, on track to reach a target of $5 to $7 billion by 2028 [3][4] Business Line Data and Key Metrics Changes - Integrated Gas and Upstream segments delivered strong operational performance, while Chemicals and Products faced challenges due to weak margins and unplanned downtime [8] - Marketing recorded its best Q2 results in nearly a decade, with Mobility and Lubricants benefiting from high grading and increased premium fuels margin contribution [9] Market Data and Key Metrics Changes - Year-to-date, global oil products demand growth was approximately 1 million barrels per day, despite headwinds such as tariffs and GDP below trend [43] - The LNG market is expected to grow by 60% between now and 2040, with current prices stabilizing around $10 to $12 per million BTU [81] Company Strategy and Development Direction - The company is focused on executing its strategy, transforming its portfolio, and delivering on key targets, emphasizing operational performance and cost discipline [11] - The startup of LNG Canada is a major milestone, expected to enhance LNG sales by 4% to 5% [4][5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging geopolitical and macroeconomic environment but expressed confidence in the company's strategy and operational momentum [2][11] - The company is prepared to navigate prolonged trough conditions in the chemicals market and is actively pursuing measures to improve performance [28][32] Other Important Information - The company announced a $3.5 billion share buyback program, maintaining a distribution level of 46% of cash flow from operations [10][36] - The company is committed to a 10% free cash flow per share growth target between now and 2030 on a CAGR basis [47] Q&A Session Summary Question: Outlook for trading and optimization businesses - Management noted that trading had a decent contribution in Q2, with different segments performing variably, and expressed optimism for future trading opportunities [20][23] Question: Upstream business performance and sustainability - Management highlighted strong performance in the upstream sector, focusing on operational improvements and cost optimization, with a commitment to maintaining competitiveness [16][19] Question: Gearing levels and buyback program sustainability - Management indicated comfort with current gearing levels and emphasized a balanced approach between share buybacks and maintaining a strong balance sheet [33][36] Question: LNG market conditions and future expectations - Management acknowledged the current LNG market as the new normal, with expectations for continued growth and stability in pricing [66][81] Question: Exploration program adequacy - Management stated that the exploration program is right-sized, focusing on established basins and ensuring better results for every dollar spent [98][100] Question: Impact of geopolitical uncertainty on trading - Management emphasized the importance of a high-quality trading team capable of adapting to geopolitical changes and market conditions [101][102]

Financial Data and Key Metrics Changes - The company reported earnings of $7.7 billion, up 4% sequentially, excluding identified items [10] - Generated $13 billion of cash flow from operations, leading all integrated oil companies (IOCs) [10] - Achieved $12.7 billion in structural cost savings since 2019, averaging nearly $2.5 billion per year [6][10][102] Business Line Data and Key Metrics Changes - Sold $1.8 billion of assets in the quarter, primarily in the Upstream sector [10] - Since 2019, the company has sold $24 billion of non-core assets, enhancing earnings power by $4 billion at current prices and margins [11] - Plans to lower breakevens to $35 per barrel by 2027 and $30 per barrel by 2030 [11] Market Data and Key Metrics Changes - The current market environment is characterized by significant volatility and downward pressure on prices and margins due to economic uncertainties and increased operational expenditures [5][6] - The company is positioned to respond to market challenges and capitalize on opportunities, with a focus on reliable and affordable energy [8][9] Company Strategy and Development Direction - The company aims to invest in advantaged projects to meet energy demands profitably, with a long-term view of generating $20 billion more in earnings and $30 billion more in cash by 2030 [9][11] - The strategy includes maintaining a strong balance sheet and focusing on profitable growth while rewarding shareholders [15][21] - The company is committed to sustainable investments, particularly in low-carbon solutions, with expectations of generating $1 billion in earnings from these initiatives by 2030 [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing uncertainty in tariffs and its impact on economic forecasts, emphasizing the importance of focusing on controllable factors [5][6] - The long-term fundamentals of the energy market remain robust, with a continued need for reliable energy sources [9] - Management is confident in the company's ability to navigate market challenges and enhance shareholder value through strategic investments [19][20] Other Important Information - The company distributed $9.1 billion in cash, including $4.8 billion in share buybacks, achieving a three-year total shareholder return of 60% [21][22] - The company has ramped up investor engagement, meeting with approximately 75% of institutional investors over the past year [23] Q&A Session Summary Question: Market conditions and flexibility in investment decisions - Management emphasized that investment decisions are based on maximizing net present value (NPV) and are influenced by market conditions and operational momentum [29][30] Question: Impact of market developments on the chemicals business - Management noted that while the chemicals industry faces challenges due to supply and demand imbalances, the company remains focused on high-value products and cost efficiency [38][40] Question: Share buybacks and maintaining balance sheet strength - Management confirmed the commitment to continue share buybacks, viewing current stock prices as buying opportunities while ensuring investments in advantaged projects [50][51] Question: M&A strategy in a low-price environment - Management stated that acquisitions are evaluated based on the potential to create value beyond what each entity could achieve independently, with a focus on leveraging existing strengths [58][59] Question: Update on Baytown project and investment decisions - Management highlighted the need for solid policy support and customer commitments before moving forward with the Baytown Blue Hydrogen project [66][68] Question: Synergies from the Pioneer acquisition - Management reported exceeding synergy expectations from the Pioneer acquisition, with optimism about future value creation [73][75] Question: CapEx plans and policy dependencies - Management indicated that while some CapEx plans are policy-dependent, the overall capital spending remains on track, with no significant delays anticipated [81][84] Question: Tariffs and project organization - Management reassured that existing projects are shielded from tariff impacts, with a proactive approach to managing new project costs [116][117]

Financial Data and Key Metrics Changes - The company reported earnings of $7.7 billion, a 4% increase sequentially, excluding identified items [8] - Generated $13 billion of cash flow from operations, leading all integrated oil companies (IOCs) [8] - Achieved a net debt to capital ratio of 7%, leading large-cap industrials and all IOCs [5] Business Line Data and Key Metrics Changes - Sold $1.8 billion of assets in the quarter, primarily from divestments in the Upstream [8] - Since 2019, the company has sold $24 billion of non-core assets, strategically reshaping its portfolio and increasing earnings power by $4 billion at current prices and margins [9] - Plans to lower breakevens to $35 per barrel by 2027 and $30 per barrel by 2030 [9] Market Data and Key Metrics Changes - The company is experiencing significant downward pressure on prices and margins due to increased operational expenditures and market volatility [4] - The chemical business is facing challenges from a market glut, with industry margins below historical averages [37] Company Strategy and Development Direction - The company is focused on investing in advantaged projects to meet the ongoing demand for reliable and affordable energy [7] - Plans to maintain a strong balance sheet while continuing to invest in profitable growth and share success with shareholders [12] - The company aims to grow high-value products to 80% of total product solutions earnings by 2030 [15] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of flexibility in investment decisions based on market conditions and long-term fundamentals [30] - The company is prepared to respond to market challenges and capitalize on opportunities presented by a low-price environment [30] - Management expressed confidence in the long-term demand for energy and the company's ability to deliver on its plans [7] Other Important Information - The company distributed $9.1 billion of cash, including $4.8 billion in share buybacks, achieving a three-year total shareholder return of 60% [19] - The company has ramped up investor engagements significantly over the past five years, resulting in zero shareholder proposals for the first time since 1958 [21] Q&A Session Summary Question: How does the company exercise flexibility in its investment portfolio? - Management emphasized that decisions are based on market conditions and long-term marginal costs, ensuring that operational momentum is not compromised [28][30] Question: What is the impact of recent market developments on the chemicals business? - Management noted that while the industry faces a supply glut, the company continues to focus on high-value products and efficient operations [37][40] Question: Will the company maintain its share buyback pace regardless of market volatility? - Management confirmed the commitment to continue buybacks, viewing lower stock prices as buying opportunities while ensuring investments in advantaged projects [50] Question: What is the current status of the Baytown Blue Hydrogen project? - Management indicated that the project is competitive and progressing well, with customer agreements being a key focus for moving forward [66][68] Question: How does the company view potential M&A opportunities in a low-price environment? - Management stated that while they are always on the lookout for opportunities, the focus remains on leveraging existing strengths and capabilities [59] Question: What is the status of the litigation against the European Union regarding the windfall tax? - Management noted that legal processes are slow, and no specific timeline for resolution is available [93]