Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Reduced the number of spills by 62% and the net volume spilled by 70% compared to the prior year.
• Sold 3.4 billion cubic feet of natural gas to the market instead of flaring it.
• Implemented a voluntary leak detection and repair program.

Social Achievements

• Launched an initiative to encourage employee submissions for innovative projects.
• Granted employees up to eight hours of paid time off annually for volunteer work.
• Donated over $130,000 to local charities in 2019.

Governance Achievements

• Improved Board diversity with nearly half of the Board represented by women or minorities.
• Established the Nominating, Corporate Governance, Environmental and Social Committee to oversee ESG matters.
• Implemented a Short-Term Incentive Program (STIP) that includes Spill Severity Rate and Air Stewardship metrics.

Climate Goals & Targets

Environmental Challenges

• Regional transportation constraints
• Volatility in commodity pricing and services
• Regulatory impacts on operations
• Energy transition and adoption of new technologies

Mitigation Strategies

• Investment in digital systems and physical infrastructure
• Emissions reduction targets
• Water infrastructure to lower lease operating expenses and reduce truck traffic
• Internal scenario analysis using the Transition Pathway Initiative (TPI) methodology

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ethical and financial standing and environmental, health and safety performance are considered when approving service providers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Climate change legislation or regulations restricting emissions of greenhouse gases

Opportunities

• Lower-carbon technology adoption

Reporting Standards

Frameworks Used: SASB, TCFD, IPIECA

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2019 Ignite Award from Tulsa Area United Way
• 2019 National Conversation on Board Diversity recognition for gender diversity

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Employee Health and Safety
• Community Engagement
• Supply Chain Sustainability

Environmental Achievements

• 56% reduction in flared volumes compared to 2019
• 48% reduction in produced fluid spill intensity compared to 2019
• Improved data quality through third-party limited assurance verification of Scope 1, 2, and 3 emissions

Social Achievements

• Increased Board diversity (race and gender) from 22% to 56% since 2019
• 56% of Board and 61% of professional staff are diverse on the basis of gender or race
• 14% reduction in Total Recordable Incident Rate (TRIR) compared to 2019
• Launched employee initiative to submit innovative project ideas
• Incorporated ESG goals into pay structure (Spill Severity Rate and Air Stewardship metrics in STIP)
• Donated over $253,600 to local charities in 2020

Governance Achievements

• Enhanced shareholder rights (majority voting standard, director resignation policy)
• Restructured Nominating and Corporate Governance Committee to include Environmental and Social oversight
• Undertook a TCFD-aligned scenario analysis to quantify climate-related financial risks
• Formalized and augmented Enterprise Risk Management (ERM) process

Climate Goals & Targets

Environmental Challenges

• Pandemic challenges impacting operations and data collection
• Data quality issues related to emissions and water usage
• Limitations on water recycling at newly acquired Howard County operations
• Takeaway capacity constraints in the Permian Basin
• Potential for super-emitter events related to venting

Mitigation Strategies

• Expanded access to telemedicine and remote work capabilities
• Improved data quality and systems for monitoring progress toward GHG emission reduction targets
• Increased offload capacity to third-party sales points
• Piloting IoT sensors, CEMS, and pneumatic device conversion program
• Evaluating opportunities to electrify field operations
• Implementing programs to build a belief-based safety culture
• Updating emergency response plans and safety best practices
• Expanding water recycling infrastructure
• Conducting ESG focused survey with suppliers

Supply Chain Management

Supplier Audits: ESG focused survey conducted in 2021

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• Focus on veteran, minority, and women-owned suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Access to water

Transition Risks

• GHG laws and regulations
• Energy market volatility

Opportunities

• Development of low-cost, high-margin assets
• Implementation of emissions reduction strategies

Reporting Standards

Frameworks Used: SASB, TCFD, IPIECA, AXPC, API

Certifications: Null

Third-party Assurance: HXE Partners

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2019 National Conversation on Board Diversity

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity, Equity, and Inclusion
• Community Engagement
• Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions intensity by 59% since 2019 (2022 intensity: 10.70 mtCO2e/MBOE)
• Reduced methane emissions by 87% since 2019 (2022 emissions: 0.11% of natural gas produced)
• Reduced routine flaring by 42% since 2019
• Recycled 18.5 million barrels of produced water in 2022 (more than double 2021)
• Reduced produced fluid spill intensity by 85% since 2019

Social Achievements

• Zero employee safety incidents in 2022
• Launched Vital Women’s Network to support female employees
• 55% of new hires in 2022 were diverse
• Provided an average of 34.5 safety training hours per field employee in 2022

Governance Achievements

• 90% of Board refreshed in the last five years to increase diversity and ESG expertise
• 60% Board diversity in 2022
• 20% of STIP and 15% of LTIP tied to sustainability and safety performance
• Extensive annual stockholder engagement program

Climate Goals & Targets

Environmental Challenges

• Water stress in operating areas
• Regulatory changes related to water
• Induced seismicity (industry risk)
• Climate change transition risks

Mitigation Strategies

• Water recycling program
• Increased operational efficiency to reduce freshwater intensity
• Internal water monitoring and stakeholder engagement
• Proactive monitoring of regulatory landscape
• Partnership with local trade organizations
• Scenario analysis of climate-related risks and opportunities
• Emissions reduction initiatives (electrification, enhanced monitoring, etc.)

Supply Chain Management

Supplier Audits: Annual supplier survey

Responsible Procurement

• Supplier Management Policy
• Code of Conduct requirements for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing

Opportunities

• Increased demand for responsibly sourced oil and gas
• Development of lower-carbon technologies and services

Reporting Standards

Frameworks Used: SASB, TCFD, Ipieca, AXPC, API

Certifications: Project Canary TrustWell Certification

Third-party Assurance: HXE Partners (limited assurance)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Biodiversity
• Human Rights
• Community Relations
• Workforce Health and Safety
• Business Ethics
• Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions intensity to below 12.5 mtCO2e/MBOE by 2022 (65% reduction from 2019 baseline)
• Reduced methane emissions to below 0.20% (mCH4/MCF) by 2022 (90% reduction from 2019 baseline)
• 58% reduction in routine flaring since 2019
• Achieved water recycling target in 2023, using no fresh water for completion activities.

Social Achievements

• Reduced produced fluid spill intensity rate by 80% since 2019
• Implemented numerous employee well-being initiatives (flexible work schedules, health and fitness benefits, employee assistance program, family accommodations and caregiving support)
• Average of 34 safety training hours per field employee in 2023

Governance Achievements

• Established robust Whistleblower Policy and Ethics & Compliance Hotline
• Implemented Anti-Bribery and Anti-Corruption Policy
• 90% of Board refreshed in last five years to increase ESG and technology expertise
• ESG matters discussed in nearly 36% of Board meetings in 2023
• Executive and employee compensation tied to environmental and safety metrics

Climate Goals & Targets

Environmental Challenges

• Access to water in high baseline water stress areas (71% of operations)
• Climate-related risks (policy and legal, technology, market, reputation, and physical risks)
• Community concerns regarding dust, sound/noise, and increased traffic

Mitigation Strategies

• Implementing best management practices to mitigate community concerns
• Investing in emissions reduction initiatives (enhancing monitoring and leak mitigation, reducing flared and vented emissions, electrifying operations)
• Using brackish and recycled produced water in operations
• Developing mitigation plans for climate-related risks (detailed in Climate Risk and Resilience Report)
• Implementing sound well design and construction to prevent spills

Supply Chain Management

Responsible Procurement

• Supplier Management Policy includes expectations around human rights and strong ESG performance

Climate-Related Risks & Opportunities

Physical Risks

• Access to water

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputation risks

Opportunities

• Resource efficiencies
• Energy source shifts
• Development of new lower carbon services or products

Reporting Standards

Frameworks Used: SASB, TCFD, Ipieca, AXPC, API

Third-party Assurance: Apex Companies LLC (limited assurance for 2023)