Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reduced flaring, spills and emissions
• Safety culture
• Community support
• Accountability, risk management and ethical behavior
• Acid gas injection (AGI) for H2S & CO2 sequestration

Environmental Achievements

• AGI will capture and sequester >50,000 tons of H2S and CO2 annually
• Minimal flaring with 1Q22 average flare intensity of 0.05 Mcf gas flared/bbl oil produced (industry standard 0.10)

Social Achievements

• Record low TRIR (0.41) in 2021
• Provided over 5,000 EHS training hours for employees and contractors
• Investing in employees through benefits/training
• Community efforts including donations to Monahans KidzZone and local municipality

Governance Achievements

• Separated roles of Chairman and CEO
• Compensation structure aligned with operating results and ESG initiatives
• Enhanced Board oversight of 2022 ESG initiatives
• Code of Business Conduct and Ethics for Employees and Contractors

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• AGI will be able to fully capture and sequester >50,000 tons of H2S and CO2 annually
• Minimal flaring overall with LTM average flare intensity well below industry standard of 0.10 mcf gas flared/bbls oil produced

Social Achievements

• Inaugural charity golf tournament in 4Q22 – all proceeds benefiting non-profits
• Active in our local communities, supporting youth programs and first responders
• Provided over 5,000 EHS training hours for employees and contractors
• Zero recordable incidents over last twelve months

Governance Achievements

• Independent Governance
• Compensation structure aligned with operating results and ESG initiatives
• Separated roles of Chairman and CEO
• Enhanced Board oversight of 2022 ESG initiatives
• Code of Business Conduct and Ethics for Employees and Contractors

Climate Goals & Targets

Environmental Challenges

• Inflation
• Supply chain disruptions (implied)

Mitigation Strategies

• Mitigating inflation through capital efficiency – record drilling and pump times
• Improving flow assurance with additional takeaway optionality and flexibility
• Reducing execution risk through proactive management of supply chain

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Construction of acid gas treating facility on track – AGI facility in-service in 1Q23; AGI facility will further bolster industry leading H2S management capability; Minimal flaring overall with LTM average flare intensity well below industry standard of 0.10 mcf gas flared/bbls oil produced; Membership in Environment Partnership (API) for study on methane emissions

Social Achievements

• Hosted inaugural BATL For The Kids Charity Golf tournament with proceeds benefiting non-profits; Provided over 5,000 EHS training hours for employees and contractors; Community efforts to liaison with first responders and local community – recent donations to Monahans Kidz Zone and local municipality; Zero recordable incidents over last twelve months

Governance Achievements

• Independent Governance; Separated roles of Chairman and CEO; Enhanced Board oversight of 2022 ESG initiatives; Code of Business Conduct and Ethics for Employees and Contractors; Compensation structure aligned with operating results and ESG initiatives

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: 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