Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced emissions by 1,750 tonnes of CO2 equivalent since 2019 through VRU installation.
• Completed numerous emission reduction projects (details in report).
• Reduced flaring by pre-building pipelines to pad sites.
• Converted 27 wells to plunger lifts, reducing energy consumption.
• Completed 144 high to low bleed pneumatic device conversions, forecasted to result in significant emission reductions.
• Achieved 18% decrease in water use intensity compared to 2020.
• Zero recordable spills over the last two years.
• Achieved savings of approximately 20% over the AER’s estimated liability values through large-scale, shallow gas abandonment project.
• Received $3.0 million of grants for deployment through the end of 2022 for site rehabilitation.

Social Achievements

• Zero LTIF and TRIF rate over the last four years.
• Implemented an Employee and Family Assistance Program (EFAP).

Governance Achievements

• Added ESG responsibilities to the board of directors' mandate.
• Established the Corporate Governance and EHS&S committee to oversee climate-related issues and sustainability.

Climate Goals & Targets

Environmental Challenges

• Acute impacts from extreme weather conditions (restricting access, damaging assets, disrupting supply chain).
• Chronic operational delays due to weather patterns.
• Social opposition to new and expanded pipeline projects.
• Potential shifts in supply and demand for commodities due to climate change.
• More restrictive decarbonization policies from investors, lenders, and insurers.
• Potential for legal action related to climate change risk disclosure.
• Uncertainty around future federal and/or provincial regulations.
• Limitations on availability, scalability, and cost-effectiveness of emissions reduction technologies.

Mitigation Strategies

• Operations team has significant experience in mitigating industry risks and anticipating the evolving landscape.
• Incorporating climate risks and opportunities into governance, strategy, risk management, and performance measures.
• Rigorous asset integrity program (surveillance, corrosion mitigation, abandonment, emergency response plan).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changes in societal demand for fossil fuels
• Decarbonization policies
• Regulatory changes

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced emissions intensity relative to peers
• Prioritized methane reduction through reduced flaring and venting
• Completed numerous emission reduction projects
• Reduced water use intensity by 7% compared to 2021
• Achieved 20% savings over AER’s estimated liability values on a large-scale, shallow gas abandonment project
• Received $3.0 million in grants for site rehabilitation

Social Achievements

• Zero employee lost time or recordable incidents over the last four years
• Implemented an Employee and Family Assistance Program (EFAP)
• Donated $25,000 to the Rimbey Agricultural Society
• Supported local economies through employment and vendor utilization

Governance Achievements

• Established Corporate Governance and EHS&S committee overseeing ESG initiatives
• Implemented a diversity policy

Climate Goals & Targets

Environmental Challenges

• Acute impacts from extreme weather (restricting access, damaging assets, disrupting supply chain)
• Chronic shifts in weather patterns (water scarcity, increased storm/fire frequency, prolonged heat waves)
• Social opposition to pipeline projects
• Potential shifts in supply and demand for commodities
• More restrictive decarbonization policies from investors/lenders/insurers
• Uncertainty around GHG regulations
• Potential for legal action related to climate change risk
• Limitations on emissions reduction technologies

Mitigation Strategies

• Operations team experience in mitigating industry risks and anticipating evolving landscape
• Effective asset integrity program
• Regular ERP training and scenario exercises
• Utilizing composite pipelines to minimize corrosion
• Directional boring to install pipelines minimizing surface impacts
• Refurbished equipment usage
• Utilizing produced saltwater in enhanced oil recovery
• Sourcing water from dugouts and ponds
• Consultant expertise for abandonment and reclamation operations
• Participation in AER’s area-based closure program
• Application for Site Rehabilitation Programs

Supply Chain Management

Responsible Procurement

• Utilization of local vendors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, heavy snowfall, heavy rainfall, wildfires

Transition Risks

• Decreases in societal demand for fossil fuels
• Changing government regulation
• Technological change
• Consumer trends
• Restrictive decarbonization policies

Opportunities

• Markets increasingly considering climate change in product purchase decisions

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Environmental Stewardship
• Responsible Resource Management

Environmental Achievements

• Reduced emissions intensity since 2017 resulting in a reduction of 25,000 tonnes of CO2e
• Added 2 VRUs in 2022 to further reduce emissions
• Increased gas conservation through operations including the 100% utilization of pneumatic controls at field sites
• Rigorous pipeline integrity program to mitigate risk of environmental impact

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Production curtailments due to low commodity pricing and natural gas facility startup delays
• Alberta wildfires impacting production

Mitigation Strategies

• Implementing hedging strategies (swaps and collars) to mitigate commodity price volatility
• Focus on disciplined capital allocation and sustainable growth

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