Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions Reductions
• Methane Intensity
• COVID-19 Response
• Sustainability Reporting
• Board Diversity
• Human Capital Management
• Shareholder Engagement

Environmental Achievements

• Reduced debt by ~$500MM in the second half of 2020
• <0.50% 4Q20 sales gas flared and vented
• Set a target to reduce methane intensity by one-third by 2025, using 2019 as our benchmark

Social Achievements

• Industry leading COVID-19 response kept our people safe and our business running smoothly
• 2020 was our 7th consecutive safest year ever with a Total Recordable Injury Frequency of 0.19
• 50% of executive officers reporting to the company’s CEO and three of 11 director nominees are women

Governance Achievements

• Active, engaged and independent Board that is diverse by gender, skills and experiences
• Ongoing Board refreshment continued with the retirement of three longstanding directors and the addition of two new directors
• In 2021, the Board adopted a Diversity in Board Recruitment Policy, committing to include female and racially or ethnically diverse candidates in each director search undertaken by the Committee

Climate Goals & Targets

Environmental Challenges

• Unprecedented pandemic that took a tragic toll on human life, shuttered global economies and crippled demand for the products we safely produce to fuel the world
• Simultaneous oil price war that sent crude to record lows

Mitigation Strategies

• Assembled a Pandemic Response Team
• Proactively reduced 2020 investments by nearly $1 billion
• Delivered our third consecutive year of free cash flow and exit the year with nearly $500 million less debt from mid-year 2020

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB

Environmental Metrics

ESG Focus Areas

• Emissions Reductions
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Delivered on 33% methane intensity reduction target in 2021, four years ahead of schedule
• Expect to achieve greater than 20% reduction in scope 1&2 greenhouse gas (GHG) intensity by year-end 2021 compared to 2019
• Fully aligned with the World Bank Zero Routine Flaring by 2030 initiative, nine years ahead of schedule
• Established real-time emissions dashboard across all operations
• Reduced flared and vented natural gas volumes to less than 0.7% of total natural gas sales volumes in 2020 (down from 1.2% in 2019), and further reduced to 0.4% year-to-date 2021

Social Achievements

• Achieved 7th consecutive safest year ever in 2020 with a Total Recordable Injury Frequency of 0.19
• Launched a social commitment leadership team and published inaugural social commitment framework
• Broadened the diversity of the Company's Board of Directors
• Offered staff training on unconscious bias
• Formed an employee resource group to encourage inclusion and networking
• Conducted staff surveys on inclusion
• Facilitated sessions with guest speakers on diversity, equity and inclusion at work

Governance Achievements

• Revised corporate governance framework to reflect commitment to a diverse and inclusive workplace
• Deepened board diversity since early 2019, adding five new directors, appointing a new independent board chairman and refreshing committee memberships, including three new committee chairs
• Adopted a requirement that candidates of gender and racial or ethnic diversity are sought out and included in its Director search processes (Rooney Rule)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, equity, and inclusion
• Safety

Environmental Achievements

• Reduced Scope 1&2 GHG emissions intensity by 24% compared to 2019 levels by 2021; eliminated routine flaring in operations.

Social Achievements

• Launched employee resource group LINK to foster diversity and inclusion; offered training on inclusive leadership and interrupting bias; maintained an average employee tenure of over nine years and voluntary turnover of approximately six percent.

Governance Achievements

• Established an emissions reduction task force; tied Scope 1 and 2 GHG emissions intensity reduction targets to employee compensation; Board chair and the Human Resources and Compensation Committee provide strategic oversight to key social issues including diversity, equity and inclusion, as well as the compensation program.

Climate Goals & Targets

Environmental Challenges

• Increased environmental regulations; government action in response to climate change concerns; inflationary pressures on service and supply costs; supply chain disruptions, labor shortages and increased demand for fuel, electricity and steel; potential for climate change related litigation.

Mitigation Strategies

• Voluntarily participates in emission reduction programs; adopted strategies to reduce emissions from operations; incorporating new and proven technologies and optimizing processes; working closely with third-party providers to develop best practices; proactively utilizes transportation contracts to diversify sales markets; pursuing innovative ways to minimize inflationary pressures with efficiency improvements and effective supply chain management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions, natural disasters

Transition Risks

• Increased environmental regulations; government action in response to climate change concerns; reduction in demand for oil, NGLs and natural gas; increased operating costs; limitations on exploration, development, and production areas; difficulty in accessing capital markets.

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

• Climate Change
• Safety
• Water Management
• Waste Management
• Community Investment
• Workforce Diversity and Inclusion

Environmental Achievements

• Reduced GHG intensity (Scope 1 & 2) from 14.9 metric tons (CO2e/Mboe) in 2022 to 13.2 metric tons (CO2e/Mboe) in 2023
• Increased water recycle rate from 31% in 2022 to 36% in 2023
• Reduced hydrocarbon spills greater than 1 bbl that reached the environment from 19 in 2022 to 12 in 2023

Social Achievements

• Maintained low total recordable incident frequency rate (total workforce) at 0.17 in 2023
• Community spending of $6,351,537 in 2023
• Charitable donations of $1,293,448 in 2023

Governance Achievements

• Not disclosed

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: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed