Risk Factors Update Summary

• Oil prices moderated over the second half of 2022 and the first half of 2023 before initially increasing in the second half of 2023 due to expected supply constraints and hostilities in the Middle East.
• Recorded an impairment of long-lived assets of $223.4 million for the year ended December 31, 2023, due to declining commodity prices, increased costs, and a change in recording policy.
• The Federal Reserve raised the target range for the federal funds rate by 525 basis points to a range of 5.25% to 5.50% in 2023.
• Inflation in the U.S. economy experienced the highest rate in 40 years, leading to higher costs.
• Relatively higher inflation is expected to continue in 2024, resulting in higher costs.
• Supply chain constraints may impact the ability to procure materials and equipment in a timely and cost-effective manner.
• Changes in ESG disclosures could result in private litigation or government investigations regarding the sufficiency or validity of such disclosures.