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. ConocoPhillips  2014 ANNUAL REPORT 1 “We have built our company upon a foundation of  accountability and performance. ”