Risk Factors Update Summary

• Addition of NGL to risk factors due to price fluctuations. NGL prices can impact business.
• Addition of environmental laws and regulations could substantially increase costs and liabilities.
• Change from 2022 to 2023 in the risk of commodity price decreases. Lower future oil, NGL, and natural gas prices may impact operations.
• Increase in the number of days Mobile Bay Properties were shut-in for maintenance in 2023. Shut-in for 35 days, up from 0 in 2022.
• Introduction of the Inflation Reduction Act of 2022 imposing fees on GHG emissions.
• Increase in the number of fields tied back to separate facilities in 2023. Three fields tied back, up from two in 2022.
• Change in the estimated depletion of proved reserves within three years. Estimated 33% depletion in 2023, up from 26% in 2022.
• Change in the principal amount of long-term debt outstanding. $400.2 million outstanding in 2023.
• Increased focus on data privacy and cybersecurity laws leading to compliance complexities and costs.
• Change in the estimated undeveloped PUD reserves. Approximately 16% undeveloped in 2023.
• Risks from climate change and energy transition could impact operations, financial condition, and cash flows.
• Financial sector developments may restrict capital access and divestment from certain industries.
• Potential impact of activist efforts on operations, capital raising, and regulatory burden.
• Uncertainty regarding future legislation affecting U.S. federal income tax deductions.