Risk Factors Update Summary

• Market prices for crude oil and natural gas in 2023 decreased significantly compared to 2022.
• The Company's operations in Egypt contributed 27% of production, 15% of year-end estimated proved reserves, and 29% of estimated discounted future net cash flows in 2023. Further deterioration in Egypt could materially and adversely affect the Company's business, financial condition, and results of operations.
• The proposed acquisition of Callon Petroleum is subject to various conditions, including stockholder and regulatory approvals. Failure to complete the merger could negatively impact the Company's stock price and have a material adverse effect on its results of operations, cash flows, and financial position.
• The Company faces increased competition, impacting acquisitions, labor, and marketing of production.
• Regulators in some states have taken actions to limit disposal well activities, including orders to temporarily shut down or curtail water injection. This may impact the Company's ability to reuse and recycle water, potentially increasing operating costs or causing production limitations.
• The Holding Company Reorganization may lead to disruptions in business relationships, loss of key employees, distraction of management, and limitations on business activities. The pending merger could cause uncertainties, disruptions, and financial impacts, affecting the Company's future business operations.
• The Company's credit rating was upgraded by Moody's and affirmed by Standard and Poor's.
• The percentage of the Company's production outside the U.S. decreased from 47% in 2022 to 46% in 2023, while estimated proved oil and gas reserves outside the U.S. decreased from 32% to 30%.
• Litigation relating to the merger could result in substantial costs to the Company, including defending against securities class action lawsuits and derivative lawsuits. Adverse judgments could negatively impact the Company's liquidity, financial condition, and results of operations.
• The Company faces risks related to cyberattacks, with potential operational disruptions and financial losses.
• The Company's charter authorizes the Board of Directors to issue preferred stock, potentially impacting shareholder interests.
• The Company may face financial loss due to hedging arrangements if production falls short.
• Legislative changes, like the Energy Profits Levy, could impact the Company's profits.
• The Company's disclosures on sustainability metrics could impact its reputation and financial performance.