Risk Factors Update Summary

• Addition of significant CCUS activities as a new risk factor, subject to evolving regulations, financing challenges, and competition in the Gulf Coast market.
• Increase in oil prices from $84 per Bbl in October 2021 to $123 per Bbl in March 2022.
• The company's reserves increased from $63.86 per Bbl for crude oil to $93.02 per Bbl.
• Oil demand amid the COVID-19 pandemic increased in 2022, resulting in higher energy prices.
• The company's reserves increased from $3.39 per Mcf for natural gas to $5.14 per Mcf.
• Oil price volatility, influenced by factors beyond the company's control, may impact operational and financial performance.
• The company's number of purchasers individually accounting for 10% or more of revenues decreased from four to two.
• Risks associated with geopolitical tensions, such as the Russian invasion of Ukraine, could affect worldwide oil prices and demand.
• The company's loss of one or more purchasers individually accounted for 10% or more of revenues decreased from 62% to 38%.
• Risks related to government and societal reactions to climate change, including potential impacts on stock price and increased costs.
• The company's operations now include equipment control events in addition to failures.
• Risks of engaging in significant CCUS activities, including regulatory oversight, financing challenges, and cash flow negativity until 2025.
• The company's expansion into the emerging CCUS industry has increased demand for specialized technical employees.
• The company's operations now include well control events in addition to blowouts, cratering, or explosions.