ÐÇ¿ÕÎÞÏÞ´«Ã½

In 2023, we delivered on our capital allocation strategy by strengthening our balance sheet, providing significant returns to shareholders and strategically developing our assets. Our culture of continuous improvement, focus on cost control and disciplined capital allocation continues to drive strong operational and financial results, maximizing value for our shareholders. We achieved record annual average daily production of 1,332 MBOE/d in 2023, an increase of 4% from 2022 levels, or 7% growth on a production per share basis and we delivered strong financial results including adjusted funds flow of $15.3 billion.

In the past three years, we have reduced our net debt by over $11 billion and delivered approximately $21.5 billion directly to shareholders through $11.0 billion in dividends and $10.5 billion in share repurchases, totaling approximately $30 per share.

In 2023, the Board of Directors approved two separate increases to our quarterly dividend, for a combined increase of 18% to $1.00 per common share on an annual basis, demonstrating the confidence that the Board of Directors has in the sustainability of our business model, our strong balance sheet and the strength of our diverse, long life low decline asset base. The Company has a leading track record of dividend growth, as 2024 marked the 24th consecutive year of increases with a compound annual growth rate of 21% over that time period.

We ended 2023 with approximately $9.9 billion in net debt, achieving our net debt level of $10 billion. As a result commencing in 2024, we are returning 100% of free cash flow to shareholders as per our free cash flow allocation policy. We remain committed to sustainable, growing shareholder returns, a strong balance sheet and reducing our environmental footprint through innovative technology and continuous improvement, continuing to build upon its history of creating premium value for our shareholders.

In 2022, the strength of the Company’s balanced, diverse asset base combined with a flexible capital allocation strategy yielded substantial free cash flow generation and strong reserve growth, which resulted in significant returns to ÐÇ¿ÕÎÞÏÞ´«Ã½â€™s shareholders.

ÐÇ¿ÕÎÞÏÞ´«Ã½ achieved record annual production of approximately 1,281 MBOE/d in 2022, an increase of 4% from 2021 levels, and 8% growth on a production per share basis. This growth was largely driven by strategic investments in our robust natural gas assets, which resulted in 23% production growth from 2021 levels in the Company’s natural gas assets, achieving record annual natural gas production of approximately 2.1 Bcf/d.

ÐÇ¿ÕÎÞÏÞ´«Ã½â€™s culture of continuous improvement, focus on cost control and disciplined capital allocation continue to drive strong operational and financial results, maximizing value for our shareholders. ÐÇ¿ÕÎÞÏÞ´«Ã½ generated approximately $19.8 billion in adjusted funds flow in 2022, resulting in free cash flow of approximately $10.9 billion, after total dividend payments and base capital expenditures excluding net acquisitions and strategic growth capital. We were able to deliver significant returns to shareholders in 2022, totaling approximately $10.5 billion through $5.6 billion in share repurchases and $4.9 billion in dividends, including a special dividend of $1.50 per common share paid in August 2022. This equates to approximately $9.25 per share in direct returns to shareholders in 2022.

2021 was a strong year for ÐÇ¿ÕÎÞÏÞ´«Ã½ which brought renewed optimism and confidence in the Company’s asset portfolio underpinned by our significant base of long life low decline assets. With ÐÇ¿ÕÎÞÏÞ´«Ã½â€™s low maintenance capital, operating costs, and a disciplined capital program, the Company grew production 6%. The Company implemented a free cash flow policy, where 50% of free cash flow after dividends will be allocated to the balance sheet and 50% to share repurchases until net debt is reduced below $15 billion.

Returns to shareholders were significant in 2021. The Company increased the quarterly dividend twice throughout the year for a combined total increase of 38%, marking 2021 as the 22nd consecutive year of dividend increases, while share repurchases totaled $1.6 billion. ÐÇ¿ÕÎÞÏÞ´«Ã½â€™s advantage through effective and efficient operations, high quality lands, and long life low decline assets, maximizes value for the shareholders in all the cycles.

2020 brought many challenges, from the impacts of the global crude oil price war to the devastating effects of the COVID-19 pandemic. We were nimble in 2020, quickly lowering our capital program with minimal impact to annual production as we stayed within the Company’s original production guidance range. ÐÇ¿ÕÎÞÏÞ´«Ã½ achieved record annual average production of 1,164 MBOE/d in 2020, a 6% increase compared to 2019 levels. The resilience and sustainability of our business model was evident in 2020 as annual adjusted funds flow was strong, through the com