Risk Factors Update Summary

• Increased attention to ESG matters, including climate change, may impact business and access to capital.
• The DOI released a report on federal oil and gas leasing program, with recommendations for reform.
• Asset retirement costs are difficult to predict and may be substantial, diverting resources.
• Proposed NEPA regulations aim to impose more stringent methane emissions standards for new facilities.
• Development of proved undeveloped reserves may require higher capital expenditures than anticipated.
• The Inflation Reduction Act of 2022 aims to phase out oil and gas development on federal lands by 2035.
• Net income fluctuated significantly, from a loss of $19.7 million to income of $118.9 million.
• Cash dividends paid decreased from $58.0 million in 2021 to $36.0 million in 2023.
• 38% of estimated net proved reserves were classified as proved undeveloped as of December 31, 2023.
• Failure to comply with environmental laws could result in substantial penalties and affect business.