Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions during the COVID-19 pandemic
• Reduced drilling and completions activity impacting utilization and pricing for oilfield services
• Volatility of oil and natural gas prices
• Severity and duration of the COVID-19 pandemic
• Operational challenges relating to the COVID-19 pandemic
• Performance of contracts
• General economic, business or industry conditions
• Conditions in the capital, financial and credit markets
• Conditions of U.S. oil and natural gas industry and the effect of U.S. energy, monetary and trade policies
• U.S. and global economic conditions and political and economic developments
• Ability to obtain capital or financing needed for operations
• Ability to regain compliance with certain financial covenants
• Ability to execute business and financial strategies
• Ability to continue to grow infrastructure services segment
• Loss of one or more significant customers
• Asset impairments
• Ability to identify, complete and integrate acquisitions
• Ability to receive permits and governmental approvals
• Outcome of government investigation relating to contracts awarded by PREPA
• Outcome of litigation matters
• Regional supply and demand factors
• Delays or interruptions of production
• Availability of transportation, pipeline and storage facilities
• Extreme weather conditions
• Access to and restrictions on use of water
• Technology
• Civil unrest or terrorist attacks
• Cybersecurity issues
• Competition within the energy services industry
• Availability of equipment, materials or skilled personnel
• U.S. presidential executive order concerning mandatory COVID-19 vaccination for certain U.S. government contractors and the new OSHA vaccine mandate

Mitigation Strategies

• Reducing headcount, adjusting pay and limiting spending
• Monitoring the recovery process from the COVID-19 pandemic and adverse industry and market conditions
• Preserving liquidity
• Reducing costs
• Lowering capital expenditures
• Cutting costs and enhancing accountability across the infrastructure division
• Pursuing opportunities within the infrastructure sector
• Strategically structuring service offerings for growth
• Increasing infrastructure services activity
• Expanding geographic footprint and depth of projects
• Closely monitoring cost structure
• Pursuing additional cost savings
• Settlement with Gulfport

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health, Safety and Environment (HSE)
• Sustainability
• Human Capital
• Community Engagement

Environmental Achievements

• Reduced direct and indirect greenhouse gas emissions by approximately 85% from 220 thousand metric tons in 2018 to 32 thousand metric tons in 2021.
• Converted one pressure pumping fleet to dual fuel and plans to convert another to Tier 4 dual fuel and upgrade two existing fleets to Tier 2 dual fuel by year-end 2023.

Social Achievements

• Actively recruit talented people regardless of gender or ethnic background.
• Promote diversity, inclusion and equal employment opportunities.
• Over 9% of employees were women and 16 of 84 managers/directors/VPs were women as of December 31, 2022.
• Over 20% of employees self-identify as ethnic minorities as of December 31, 2022.
• Partnerships with organizations that give back to communities (American Heart Association, United Way, etc.).

Governance Achievements

• Four of six directors meet independence standards under Nasdaq listing rules.
• Independent audit, compensation, and nominating and corporate governance committees.
• Annual advisory “say-on-pay” vote.
• Clawback policy for incentive compensation.
• Anti-hedging and anti-pledging policies for directors and executive officers.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and backlogs of equipment and replacement parts for pressure pumping fleets.
• Slight decline in crude oil and natural gas pricing in Q1 2023, potentially slowing completion activities.
• Ongoing war in Ukraine impacting global energy markets and supply chains.
• Significant decline in demand for sand proppant in 2019-2020 due to lower oil demand and pricing.
• Outstanding amounts owed by PREPA for services performed in Puerto Rico.

Mitigation Strategies

• Temporarily shut down certain operations (cementing, acidizing, etc.) in response to market conditions.
• Monitoring market conditions to determine when to recommence services.
• Executing sand supply agreements with third-party providers.
• Focusing on cutting costs, improving margins, and enhancing accountability in infrastructure services.
• Vigorously pursuing collection of receivables from PREPA.

Supply Chain Management

Climate-Related Risks & Opportunities