## Letter to Shareholders 

## Dear Fellow Shareholders: 

This year’s Letter to Shareholders poses a unique challenge. While it is important to recognize the company’s signi fi cant accomplishments in 2014, it is also important to recognize that we entered 2015 in the midst of a dramatic downturn in oil and natural gas prices. So, I will address both themes. Our past and future are connected by an approach to this business that is both fl exible and resilient. We believe these qualities are essential for delivering value to shareholders in a cyclical business like ours. As importantly, we have built our company upon a foundation of accountability and performance. We set commitments and deliver on them. 

When ConocoPhillips emerged as an independent E&P company in 2012 we set out to deliver a unique value proposition of double-digit returns annually to shareholders through a combination of 3 to 5 percent compound annual growth in both production and margins, with a compelling dividend. These objectives were based on annual capital expenditures of about $16 billion, as well as a signi fi cant portfolio high-grading program. During 2012 and 2013 we completed our portfolio transformation, executed our investment programs and maintained a strong balance sheet, all of which positioned ConocoPhillips for production and margin growth. By 2014, we had established strong momentum on our value proposition—and we delivered on our objectives. In short, we did what we said we would do. 

“We have built our company upon a foundation of accountability and performance. ” 

