Risk Factors Update Summary

• Upgrading accounting systems may impact timely financial reporting as company grows, risking accuracy.
• Increased risk of write-downs due to low oil and gas prices, with significant adjustments to estimated proved reserves and future development costs.
• Changes in debt structure, including New Senior Notes issuance, could negatively impact financial condition.
• Volatility in commodity prices, including daily lows of $70 per Bbl for crude oil and $1.61 per MMBtu for natural gas.
• Regulatory changes, such as the IRA 2022, imposing fees on greenhouse gas emissions, impacting operating costs.
• Acquisition integration risks with QuarterNorth may lead to reduced stockholder influence and financial impact.
• Potential impact of inflation on costs, with the U.S. inflation rate rising and the Fed increasing interest rates.
• Risks associated with geopolitical tensions affecting oil, gas, and NGL prices, particularly in Mexico and the Middle East.
• Increased competition from larger companies with greater financial resources, affecting acquisitions and operations.
• Failure to complete QuarterNorth Acquisition may result in negative market reactions and financial risks.
• Uncertainty surrounding the availability and applicability of federal financial incentives for CCS projects.
• QuarterNorth Acquisition may lead to reduced stockholder ownership and influence in the combined company.
• Integration process with QuarterNorth may result in loss of key personnel and business disruptions.
• Uncertainty related to QuarterNorth Acquisition may disrupt business relationships, affecting financial position.