Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Climate Change and Energy Efficiency
• Environmental Improvements
• Health and Safety
• Diversity and Inclusion
• Workforce
• Supply Chain Management
• Community Relationships
• Indigenous Relationships

Environmental Achievements

• Reduced vented and flared methane emission intensity by 46% since 2016 (15% from 2019); total annual methane emission reductions of 148,000 tonnes CO2e.
• Achieved a 32% reduction in overall emissions intensity (scope 1, 2, 3) from 2013 levels.
• Eliminated 72,184 tonnes CO2e associated with flaring during completion operations in 2020.
• Generated 80,000 offset credits through chemical pump retrofits and low bleed equipment installations.
• Reduced cumulative land used for roads and leases to 1.6 ha/well (25% reduction since 2013).

Social Achievements

• Maintained a TRIF of 0.83 in 2020, achieving the goal of less than 1.00; three-year weighted average TRIF decreased to 0.82 from 1.02 in 2019.
• High employee retention, producing over 10 MMSCFE/D per employee.
• Increased Indigenous business spend (though the amount fluctuates significantly year to year).

Governance Achievements

• Established a Board of Directors ESG Committee.
• Chief Operating Officer leads a multidisciplinary ESG working group.

Climate Goals & Targets

Environmental Challenges

• Legislation/Policy Changes
• Material HSE Incident
• Social License
• Market Access
• Attracting/Retaining Key Staff
• Security
• Conflict of Interest/Unethical Business Conduct

Mitigation Strategies

• Engagement with stakeholders to understand and influence effects of potential changes; participation in industry advocacy groups.
• HSE management system, emergency and incident response plans and training; strong corporate HSE culture; preventive maintenance programs.
• Comprehensive ESG disclosure; continued advocacy for sustainable energy development; meaningful engagement with local communities.
• Exploring opportunities for new market access; diversification strategy; advocating for future energy infrastructure.
• Promoting a corporate culture based on inclusion and diversity; competitive compensation; development and succession planning; employee surveys.
• IT steering committee; IT best practices; access control; mandatory check-in policy.
• Code of Business Conduct and Ethics; annual ESTMA report; Whistleblower Policy.

Supply Chain Management

Responsible Procurement

• Working collaboratively with diverse mix of local and global suppliers; continually evaluating new supplier entrants.

Climate-Related Risks & Opportunities

Transition Risks

• Legislation/Policy Changes
• Market Access

Reporting Standards

Frameworks Used: SASB, TCFD

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions intensities by 28% from 2013 levels and 3% from the prior year (18.1 kgCO2e per boe of production in 2021).
• Reduced 2021 flared and vented methane emissions intensity by 59% from 2016 levels, exceeding its 5-year target.
• Recycled 84% of flowback water used in hydraulic fracturing activities, exceeding the 80% target set in 2020.
• Reduced cumulative land used for roads and well sites to 1.4 ha/well, down 30% from 2013.

Social Achievements

• Maintained zero total recordable incidents over the last 5 years for its employees.
• Achieved a contractor total recordable incident frequency rate of 0.84 for 2021, below the 2020 target of below 1.0.
• Low voluntary employee turnover rate averaging 2% over the last 5 years.
• 40% female workforce.

Governance Achievements

• Proactively spent $2.1MM towards retirement and abandonment activities, exceeding the target set in 2020.
• Renewed the Company’s Certification of Recognition (COR), resulting in a third-party audit score of 95%.

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: COR

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

• Not disclosed

Environmental Achievements

• Invested $31 million to bring 72 gross (67.8 net) wells on production using ultra-low emissions electric wellsite equipment.
• Reduced drilling costs per meter by 5% from 2022 while completion costs per meter were down 4%.

Social Achievements

• High quality employment opportunities for many Canadians.
• Payments to various levels of government totaling $780 million over the past decade.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lower seasonal demand as a result of a warmer-than-normal North American winter, coupled with increased production has left gas storage levels above the 5-year average across the continent. This imbalance continues to put downward pressure on prices for 2024.
• Higher cost structure of the Repsol facilities.

Mitigation Strategies

• Disciplined hedging and diversification program protected revenues from the sharp decline in benchmark natural gas prices.
• The increase in gas-fired power demand and the buildout of LNG egress projects over the next two years bodes well for the longer-term future of natural gas prices.
• The Company plans to execute a 2024 capital program between $450 to $500 million specifically designed with flexibility in the back half of the year to adjust to changing commodity prices.
• The Company expects to reduce costs with continued optimization and increased utilization of the acquired gas processing plants.

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

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Reduced operating costs by 5% from Q1 2024, on target for 10% reduction by year-end. Orderly shutdown of hydrogen sulfide processing units at Edson gas plant to increase reliability, lower emissions, and improve safety.
• Improved drilling and completion costs per meter by 8% compared to Q1 2024.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Low natural gas prices (lowest AECO daily benchmark since 2019).
• Elevated natural gas storage inventories.
• Extreme heat in Alberta impacting compressor efficiency.

Mitigation Strategies

• Disciplined hedging and diversification program (protected revenues, delivered $71.4 million in natural gas hedging gains).
• Redirection of natural gas volumes to Peyto's owned and operated Edson gas plant (reduced operating costs).
• Managing production at current levels and building productive capability in anticipation of higher winter gas prices.
• Testing gathering systems to identify optimization projects.

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