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]

Financial Data and Key Metrics Changes - The company reported earnings of $7.7 billion in the first quarter, a decrease of approximately $500 million compared to the same quarter last year, primarily due to market forces across its businesses [29] - Cash flow from operations reached $13 billion, the highest among all integrated oil companies, with a five-year compound annual growth rate of cash flow from operations being double that of the next highest IOC [23][24] - The net debt to capital ratio was 7%, leading all other integrated oil companies, with total distributions to shareholders amounting to $9.1 billion, including $4.8 billion in share buybacks [14][25] Business Line Data and Key Metrics Changes - In the upstream segment, more than 60% of production is expected to come from advantaged assets in the Permian, Guyana, and LNG by 2030, contributing to an increase in upstream profitability from $10 to $13 per barrel [15] - The company's advantaged projects delivered $2.1 billion of earnings in 2024, with expectations of roughly $4 billion per year more from these projects by the end of the decade [16] - The company produced approximately 3.5 million tons of performance chemicals, lubricants, and lower emission fuels in the first quarter, showing growth compared to the same period last year [16] Market Data and Key Metrics Changes - Crude prices remained roughly flat, while natural gas prices improved due to stronger global demand driven by LNG exports and colder weather in the U.S. and Europe [26] - Global industry refining margins were lower, particularly in Asia Pacific, but the company's energy products business generated higher sequential margins due to its majority weighting in the North American market [27] - Chemical margins stayed below the ten-year range, but the chemicals business performed well due to a focus on high-value chemical products and cost reductions [28] Company Strategy and Development Direction - The company maintains a disciplined approach to capital allocation, focusing on long-term growth by investing in advantaged opportunities across its portfolio [5][10] - The company is executing on 10 key project startups in 2025, including the China Chemical Complex and an advanced recycling unit in Baytown, which are expected to deliver significant earnings [11][20] - The company aims to achieve $18 billion in structural savings by 2030, having already delivered $12.7 billion in savings since 2019 [19][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of flexibility in navigating economic uncertainty and emphasized that the company is built to excel in any market environment [3][4] - The company is prepared to capitalize on opportunities despite ongoing economic challenges, with a focus on disciplined capital allocation and leveraging competitive advantages [38] - Management expects scheduled maintenance in the upstream segment to decrease volumes in the second quarter, but anticipates ramping up production at the China Chemical Complex [36] Other Important Information - The company has secured contracts for carbon capture and storage, aiming to permanently store 30 million tons of CO2 by 2030 [14] - The company showcased a revolutionary EV battery case prototype made from Proxima products, indicating a strong position in the growing market for high-performance materials [12][13] Q&A Session Summary Question: What are the expectations for the second quarter? - The company expects scheduled maintenance in the upstream segment to decrease volumes by about 100,000 oil equivalent barrels per day compared to the first quarter [36] - Lower scheduled maintenance in Product Solutions is anticipated, with production ramping up at the China Chemical Complex throughout the year [36] Question: How is the company addressing economic uncertainty? - Management reiterated that the company is built to excel in any market environment and remains focused on its proven strategy and cost discipline [38]

Financial Data and Key Metrics Changes - The company reported earnings of $7.7 billion in the first quarter, a decrease of approximately $500 million compared to the same quarter last year, primarily due to market forces across its businesses [27] - Cash flow from operations reached $13 billion, the highest among all integrated oil companies, with a five-year compound annual growth rate of cash flow from operations being double that of the next highest IOC [22][24] - The net debt to capital ratio was 7%, leading all other integrated oil companies, and the company distributed $9.1 billion to shareholders, including $4.8 billion in share buybacks [14][24] Business Line Data and Key Metrics Changes - In the upstream segment, over 60% of production volume is expected to come from advantaged assets in the Permian, Guyana, and LNG by 2030, contributing to an increase in upstream profitability from $10 to $13 per barrel [15] - The company's advantaged projects delivered $2.1 billion of earnings in 2024, with expectations of roughly $4 billion per year more from these projects by the end of the decade [16] - The company produced approximately 3.5 million tons of performance chemicals, lubricants, and lower emission fuels in the first quarter, showing growth compared to the same period last year [16] Market Data and Key Metrics Changes - Crude prices remained roughly flat, while natural gas prices improved due to stronger global demand driven by LNG exports and colder weather in the U.S. and Europe [25] - Global industry refining margins were lower, particularly in Asia Pacific, but the company's energy products business generated higher sequential margins due to its majority weighting in the North American market [26] - Chemical margins stayed below the ten-year range, but the company's chemicals business performed well due to a focus on high-value chemical products and cost reductions [26] Company Strategy and Development Direction - The company maintains a disciplined approach to capital allocation, focusing on long-term growth by investing in advantaged opportunities across its portfolio [5][6] - The company is executing on 10 key project startups in 2025, including the China Chemical Complex and an advanced recycling unit in Baytown, which are expected to deliver significant earnings [11][19] - The company aims to achieve $18 billion in structural savings by 2030, having already realized $12.7 billion in savings since 2019 [18][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic uncertainty due to tariffs and market volatility but emphasized the company's flexibility and strong position to thrive through market cycles [3][4] - The company is built to excel in any market environment, with a focus on proven strategy, superior execution, and cost discipline [36][37] - Management expressed confidence in the company's ability to navigate market cycles and seize opportunities despite ongoing uncertainties [36][37] Other Important Information - The company has signed six large carbon capture and storage contracts, bringing its total CO2 under contract for CCS with third-party customers to 8.7 million tons per annum [13][14] - The company is committed to maintaining industry-leading financial strength while delivering robust returns to shareholders [14][24] Q&A Session Summary Question: What are the expectations for the second quarter? - The company expects scheduled maintenance in Qatar and Canada to decrease volumes by about 100,000 oil equivalent barrels per day compared to the first quarter [34] - There will be lower scheduled maintenance in Product Solutions, with production ramping up at the China Chemical Complex throughout the year [35] - Seasonal tax payments of $2.5 to $3 billion are expected in the second quarter, leading to a working capital outflow [36]