Risk Factors Update Summary

• CalGEM proposed prohibiting hydraulic fracturing in the state by 2024, impacting operations significantly.
• Added mention of the Israel-Hamas conflict, impacting geopolitical instability and market disruptions.
• The EPA finalized more stringent methane rules, requiring a 95% reduction in emissions.
• Increased capital expenditure budget from $95 million to $110 million for E&P operations in 2024.
• The EPA proposed an annual charge on methane emissions exceeding 25,000 metric tons, starting at $900 per metric ton in 2024.
• Potential loss of proved undeveloped reserves expiring by December 31, 2025, due to permitting issues.
• The Board approved a fixed cash dividend of $0.24 per share in 2022, increased to $0.97 per share in 2023.
• Changes in California laws imposing stringent financial assurance requirements for well operators.
• The Board declared variable cash dividends of $1.54 per share based on Q4 2023 results.
• Impact of inflation on operating costs and capital expenditures, with prices reaching $50.79 per mmbtu.
• The Board authorized the issuance of 2,950,000 shares of common stock under the 2022 Omnibus Plan.
• Enhanced climate-related reporting obligations may lead to increased compliance costs and access restrictions.
• The company transitioned from emerging growth status, requiring annual management assessments of internal controls.
• Ongoing regulatory uncertainty in California affecting capital programs and permitting processes.