Risk Factors Update Summary

• Entered into Merger Agreement with Aera, subject to stockholder approval, with a termination fee of $50 million.
• Oil and gas drilling locations may expire, with 8% of leases expiring in the next three years.
• Increased Share Repurchase Program from $389 million to $1.35 billion, extended through 2025.
• Potential separation of E & P and carbon management businesses could impact 4% of total net undeveloped acreage.
• Facing delays in obtaining permits, with $25 million allocated for drilling in Wilmington in 2024.
• Exploration, development, and acquisition activities involve substantial capital investments, aiming to fund 2023 capital program using cash flow.
• Reduced net present value of proved undeveloped reserves by 19% and overall proved reserves by 2%.
• Facing increased financial assurance requirements under AB 1167, impacting acquisitions in California.
• Potential adverse effects from new regulations on CO2 unitization, permitting, and pipeline safety.
• Uncertainty in obtaining permits for drilling and sidetrack operations, impacting future development plans.