Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Increased attention to climate change and environmental conservation, resulting in potential increased costs, reduced demand for products, reduced profits, increased investigations and litigation, and negative impacts on stock price and access to capital markets.
• Negative stakeholder sentiment towards the oil and gas industry and increased attention to ESG matters could affect ability to raise equity and debt capital.
• Highly competitive oil and gas industry, potentially putting the company at a disadvantage in competing for resources.
• Substantial capital expenditures required for operations, with uncertainty in generating expected cash flows and obtaining necessary capital.
• Concentration of producing properties and reserves in limited geographic areas, making the company vulnerable to regional risks.
• Inadequate insurance policies to protect against unforeseen risks.
• Extensive governmental regulation of oil and gas operations, including environmental protection laws.
• Potential for significant future write-downs of property values due to low oil and gas prices.
• Risks associated with acquiring properties, including unanticipated liabilities or performance issues.
• Potential for depletion of reserves due to offset wells and actions of other operators.
• Climate change risks, including increased operating costs, limitations on exploration and production activities, and reduced demand for products.
• Dependence on third-party gathering, transportation, and processing facilities.
• Risks associated with operating or participating in oil and gas leases with third parties who may not fulfill their commitments.
• Increased costs of service providers.
• Limitations on using net operating loss carryforwards.
• Cyber incidents could result in information theft, data corruption, operational disruption, and financial loss.

Mitigation Strategies

• Maintaining insurance against some risks.
• Seeking to repay, refinance, repurchase, redeem, exchange, or terminate existing indebtedness.
• Reviewing existing indebtedness and seeking to refinance on favorable terms.
• Utilizing stock-based compensation to retain talented personnel.
• Implementing design enhancements to internal control procedures.
• Hiring a Chief Accounting Officer and engaging an outside company for internal controls review.
• Adding resources and focusing efforts to test the operational effectiveness of established controls.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events, water shortages

Transition Risks

• Regulatory changes, market shifts, reduced demand for oil and gas, increased costs of compliance, potential for lawsuits or investigations

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Focus on minimizing operational impact including reducing air emissions, preventing spills, and safeguarding local water supplies
• Utilizing advanced drilling, completion and operations technologies that minimize environmental impact

Social Achievements

• Strong emphasis on attracting, hiring, and developing a talented and diverse workforce
• Market-competitive compensation and benefit programs for employees

Governance Achievements

• Leveraging corporate governance practices that promote transparency and accountability
• Commitment to operating with sound corporate governance practices and ensuring all business interactions are performed with honesty and integrity

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Focus on minimizing operational impact including reducing air emissions, preventing spills, and safeguarding local water supplies.
• Utilizing advanced drilling, completion and operations technologies that minimize environmental impact.

Social Achievements

• Strong emphasis on attracting, hiring, and developing a talented and diverse workforce.
• Market-competitive compensation and benefit programs for employees.
• Maintaining a work culture that treats employees fairly and with respect, promotes inclusivity, and provides equal opportunities.

Governance Achievements

• Leveraging corporate governance practices that promote transparency and accountability.
• Operating with sound corporate governance practices and ensuring all business interactions are performed with honesty and integrity.
• Adopting fundamental governance policies applicable to team members and others with whom they do business.

Climate Goals & Targets

Environmental Challenges

• Lower price realizations quarter over sequential quarter.
• Natural gas price per mcf decreased by 59% to $1.18.
• NGL price per bbl decreased by 7% to $11.81.
• Higher lease operating expenses due to $0.6MM of plug and abandonment expense.

Mitigation Strategies

• Delaying a portion of gas production until gas price improves.
• Approximately 80% of production is not hedged, positioning the company for commodity price improvements in 2023 and 2024.

Supply Chain Management

Climate-Related Risks & Opportunities