Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Management
• Executive Compensation
• Board Diversity
• Shareholder Engagement

Environmental Achievements

• Reduced oil spills (details in 2022 ESG report)
• Improved ESG score (details in 2022 ESG report)

Social Achievements

• Improved employee retention through special retention bonuses and addressing competition for talent
• Adopted a Rooney Rule for diverse candidates for board and senior executive positions

Governance Achievements

• Ceased tax gross-up payments to CEO
• Extended performance measurement period of performance-based awards to three years
• Adopted a policy of not entering into any future employment agreements with executive officers containing “single trigger” change of control vesting of benefits

Climate Goals & Targets

Environmental Challenges

• Hurricane Ida significantly impacted production and drilling activity
• Coronavirus outbreak impacted operations and staffing
• Competition for talent in the energy industry

Mitigation Strategies

• Special retention bonuses for employees
• Addressing competition for talent through compensation adjustments and policies
• Improved ESG score (details in 2022 ESG report)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes

Reporting Standards

Frameworks Used: SASB Oil and Gas Exploration and Production Sustainability Accounting Standard, TCFD recommendations, UN SDGs

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Sound corporate governance
• Contributing positively to our employees and the communities where we work and operate

Social Achievements

• 0.54 total recordable incident rate for employees in 2022 (far below the industry average)

Governance Achievements

• Created a new board committee focused on ESG oversight
• ESG metrics incorporated into short-term incentive plan

Climate Goals & Targets

Environmental Challenges

• Climate change related risks and regulations
• Inflationary pressures
• Cybersecurity risks
• Reserve replacement needs
• Decommissioning and financial assurance requirements

Mitigation Strategies

• Hedging commodity price risk
• Implementing a Safety Improvement Plan
• Transitioning information technology services and infrastructure
• Acquisitions to increase reserves and production
• Maintaining adequate insurance coverage

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Severe weather

Transition Risks

• Regulatory changes
• Reduced demand for fossil fuels
• Litigation risks

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Corporate Governance
• Employee Well-being
• Shareholder Rights
• Board Structure and Oversight
• Human Rights
• Labor
• Health and Safety
• Environmental Initiatives

Environmental Achievements

• Decreased total Scope 1 GHG emissions 26% from over 435,000 metric tons of CO2-e in 2019 to 325,000 metric tons of CO2-e in 2023
• Decreased scope 1 GHG production intensity by 42% across the past five years
• Maintained detailed efforts and procedures in place to estimate and track all waste management that is recycled, injected, or sent to landfills

Social Achievements

• Continued reaching out and engaging directly with W&T’s largest shareholders, affirming the Company’s commitment to shareholders and ensuring alignment over the long-term

Governance Achievements

• Established an ESG Committee, chaired by Dr. Nancy Chang, which will assist in setting the Company’s general strategy relating to ESG matters and in developing, implementing, and monitoring initiatives and policies based on that strategy
• Named as one of five finalists for the Best Proxy Statement in the small cap category at the 18th Annual Corporate Governance Awards

Climate Goals & Targets

Environmental Challenges

• Impacts from hurricanes and downtime resulting in temporarily reduced production by approximately 3.5 MBoe/d
• Two of the six fields acquired in early 2024 remain shut-in, requiring work to return them to production

Mitigation Strategies

• Working on returning the shut-in fields to production through existing or alternative sales routes
• Continued efforts to reduce costs and capture synergies from asset acquisitions

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes

Reporting Standards

Frameworks Used: SASB, GRI

Awards & Recognition

• Finalist for Best Proxy Statement in the small cap category at the 18th Annual Corporate Governance Awards