Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, health, and safety (EHS)
• Environmental, Social, and Governance (ESG)
• Sustainability

Environmental Achievements

• Key top-quartile benchmarks for EHS performance in 2019 (including total recordable incident rate, spill volumes, greenhouse gas emissions, and safety training objectives).

Social Achievements

• Expanded stockholder engagement effort in 2018 and 2019 to solicit input and address stockholder concerns; Responding to investor feedback regarding enhanced ESG reporting.

Governance Achievements

• Separation of the roles of Chairman of the Board and Chief Executive Officer; Active, independent, and diverse Board of Directors focused on ESG matters, risk management, and cybersecurity; Modifications to executive compensation program; Increased disclosure relating to the Board’s risk oversight processes.

Climate Goals & Targets

Environmental Challenges

• Challenging commodity price environment; Unprecedented disruption in the industry due to COVID-19 and misaligned commodity price environment.

Mitigation Strategies

• Strategic transformation of the business involving divestiture of non-core assets and acquisition of top-tier assets; Reduction and alignment of general and administrative costs; Temporary reduction to CEO's base salary; Possible additional temporary reductions to executive officers' base salaries; Reduction of 2020 LTIP target grant values and/or delay of 2020 LTIP awards; Possible temporary reduction to executive officers’ annual cash bonus targets and award; Indefinite suspension of scheduled 2020 base salary increases for all employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Stewardship
• Greenhouse Gas Emission Intensity
• Sustainability

Environmental Achievements

• Outperformed internal target for greenhouse gas emission intensity
• Achieved top quartile performance in safety and spill metrics (compared to the trailing three-year average of reporting American Exploration Production Council (“AXPC”) members)
• Completed planned triennial independent environmental, health and safety compliance audit with excellent results

Social Achievements

• Substantially all office-based employees worked remotely during 2020 to mitigate COVID-19 spread
• Continuously assessed procedures to protect employees unable to work remotely
• Maintained and continually assessed procedures designed to protect workforce and limit COVID-19 spread, including physical distancing and enhanced sanitization measures

Governance Achievements

• Expanded ESG-related duties of nominating and governance committee, renaming it the Environmental, Social and Governance Committee
• Disclosed 2019 SASB Metrics
• Participated in 2020 CDP Climate Change Questionnaire

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global economies, energy demand, and causing hardship
• Unprecedented declines in commodity prices

Mitigation Strategies

• Substantially all office-based employees worked remotely
• Continuously assessed procedures to protect employees unable to work remotely
• Successfully executed offers to exchange certain outstanding senior unsecured notes for newly issued second lien secured notes, applying excess cash flow toward open market repurchases of senior notes at a discount, and reducing the Company’s revolving line of credit
• Modified executive compensation programs to align with stockholder experience (reduced salaries, bonuses below target, reduced long-term incentives)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, CDP, TCFD

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Launched leadership development programs available to all employees

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: 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

Climate Goals & Targets

Environmental Challenges

• Risks associated with the XCL Acquisition, including the risk that we may fail to consummate the XCL Acquisition on the terms or timing currently contemplated, or at all, the risk that Northern Oil and Gas, Inc. may fail to consummate its purchase of an undivided 20% of the XCL Acquisition Agreement, the risk that we may fail to realize the expected benefits of the XCL Acquisition, including as it relates to the number of net acres to be acquired, the number of expected drilling locations, reserves estimates and producing formations, and risks related to the integration of the XCL Acquisition or business disruptions that could result from the XCL Acquisition.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Governance Achievements

• Executive compensation linked to ESG performance (partially).

Climate Goals & Targets

Environmental Challenges

• Inflation impacting aspects of the business.
• Supply chain disruptions.
• Rise in interest rates.
• Commodity price volatility due to OPEC+ production curtailments, Middle East instability, and the war in Ukraine.

Mitigation Strategies

• Commodity derivative contracts to mitigate price volatility.
• Costless collars to participate in upward price movements while setting a price floor.

Supply Chain Management

Climate-Related Risks & Opportunities