Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Compliance with environmental regulations and potential costs associated with violations or liabilities.
• Risks associated with the current United States Government Administration’s possible budget features and potential changes in Federal income tax laws.
• Various operating and other casualty risks that could result in liability exposure or the loss of production and revenues.
• Uncertainties in reserve estimates and future net cash flows.
• Risks in acquiring producing oil and natural gas properties, including difficulties in integrating acquired properties into our business, additional liabilities and expenses associated with acquired properties, diversion of management attention, increasing the scope, geographic diversity and complexity of our operations.
• Risks associated with aging pipelines and the eventual need for replacement.
• Risks associated with the abandonment of properties and the associated costs.
• Risks associated with governmental regulations and potential substantial costs.
• Risks associated with insufficient insurance coverage.
• Risks associated with the obsolescence of products due to new technologies.
• Risks associated with cyber-attacks or acts of cyber-terrorism.
• Risks associated with natural disasters, terrorist activities, or other significant events.
• Potential adverse impacts from climate changes or related legislation/regulation.
• Various environmental risks that may cause substantial costs.
• Title risks associated with oil and gas properties.
• Substantial capital requirements for undeveloped properties and potential inability to obtain adequate financing.
• Wide fluctuations in oil and natural gas prices and the potential for material adverse impacts on business and financial results.
• Risks associated with gathering and transporting natural gas, including accidents and additional operating costs.

Mitigation Strategies

• Maintaining insurance coverage at levels deemed reasonable (though not fully insured against all risks).
• Evaluating alternatives for funding, such as joint ventures or property sales, to address potential capital and credit market limitations.
• Focusing on cost-effective ways to grow production, including value-priced acquisitions and development of economically feasible drilling prospects.
• Implementing cost controls through headcount reduction and focusing on essential general and administrative expenditures.
• Pursuing the acquisition of new operated and non-operated reserves through acquisitions of producing properties and drilling ventures.
• Thorough review of title records for producing properties and less rigorous review for undeveloped properties (consistent with industry standards).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Increased demand and prices for crude oil and condensate due to COVID-19 mitigation efforts and other world events.
• Continuing COVID-19 pandemic related economic repercussions and potential future outbreaks of infectious diseases.
• Continuing inflation and other uncertainties regarding the global economy, financial environment, and global conflict.
• Volatility and disruption in capital and credit markets, increasing the cost of accessing credit.
• Negative shift in public attitudes toward the oil and natural gas industry, including ESG activism and initiatives aimed at limiting climate change.
• Opposition to oil and natural gas drilling and development activities.
• Potential adverse legislation that could curtail the ability to attract investors and raise capital.
• Proposed changes in Federal income tax laws that could reduce investment capital.

Mitigation Strategies

• Evaluating alternatives such as joint ventures or sales of interests in properties to secure funding.
• Evaluating whether current cash balances and cash flow from operations are sufficient to fund operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts
• Changes in technology that alter fuel choices
• Changes in consumer preferences