US oil and gas reserves, production and ESG benchmarking study

2021 Table of contents

Overview ...... 1

Capital expenditures...... 7

Revenues and results of operations ...... 9

Oil reserves ...... 11

Gas reserves ...... 14

Performance measures Proved reserve acquisition costs ...... 16 Production replacement rates ...... 17 Production costs ...... 19

ESG ...... 21

Company statistics ...... 22

Peer groups ...... 36

Appendix ...... 37

Contacts...... 40 Overview

This study is a compilation and analysis of US oil and gas reserve and production information reported by publicly traded companies to the United States Securities and Exchange Commission and an analysis of certain publicly reported environmental, social and governance (ESG) disclosures, as applicable. It presents results for the five-year period from 2016 to 2020 for the 50 largest companies based on 2020 end-of-year US oil and gas reserve estimates. These companies represent approximately 39% of the US combined oil and gas production for 2020 (39% for 2019), and we believe that these companies are a good bellwether of industry trends. The oil and gas industry in the US is unique though, and the conclusions that we draw do not necessarily apply to the rest of the world. Companies have been classified into three peer groups: integrated companies (integrateds), large independents, and independents. Integrateds are companies that have oil-refining and marketing activities in addition to exploration and production (E&P) activities. Independents do not have oil-refining and marketing activities but may have midstream operations. Independents are classified as “large” if their reserves exceeded 1 billion barrels of oil equivalent (BOE) at the end of 2020. We’ve expanded our study this year to highlight the industry’s growing focus on sustainability and nonfinancial goals related to ESG matters. Our benchmarks include whether an ESG or sustainability report was issued, whether published ESG information aligns to a specific reporting framework (e.g., Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and/or the Task Force on Climate-related Financial Disclosures (TCFD)), whether third-party assurance is provided, and whether specific goals are set.

Peer group analysis End-of-year US oil and gas US combined oil and gas Number of companies reserves, 2020 production, 2020

8% 22% 23% 27% 25%

28% 64%

55% 48%

Integrateds Large independents Independents

US oil and gas reserves, production and ESG benchmarking study 1 2020 in review It’s certainly not news that the COVID-19 pandemic decline from studied companies) from levels that have dominated the global landscape, the economy and oil remained depressed since the 2014 downturn as companies markets in 2020. The closing of businesses, the curtailment focused on conserving cash and production exceeded of travel and guidance from public health authorities to stay extensions and discoveries. Asset sales in our study group at home impacted oil demand in ways that no one had ever were larger than reserve purchases. contemplated, let alone tried to forecast or model. Global Remarkably, US oil production fell “only” 2.7 million barrels oil demand fell to 80 million barrels per day in April 2020 per day from its pre-pandemic peak of 12.7 million barrels compared to 100 million barrels per day in April 2019.¹ Oil per day.³ From the beginning of the pandemic to the bottom prices fell dramatically and, on the day that May futures in August, US rig counts fell from 800 to 244.4 High grading contracts expired, they went negative as traders scrambled of upstream portfolios and the imperative to improve to exit long positions that would force them to take delivery efficiency were in full gear. of oil that had no place to go when storage capacity at the facility in Cushing, Oklahoma is filled. Financial results In a typical year, mergers and acquisitions can drive big reflected all of this and results of operations for the changes in the reserve landscape, and 2020 was no companies included in our study fell from a gain of US$2.7 exception. Consolidation, debt reduction and divestment billion to a loss of US$84.1 billion. were the key themes in 2020. In the upstream sector, five transactions accounted for US$47.3 billion out of US$60 Asia LNG prices billion5 total, and in each of those deals, the buyer expanded

25 an existing footprint by acquiring a smaller competitor with the objective of achieving cost synergies. Uncertainty about 20 near-term commodity market balance and the dramatic

15 adjustments on the supply side of the market meant that crude and refined product prices were somewhat distorted. 10 Valuation in that sort of environment would always be $/MMBtu 5 difficult, and pandemic travel restrictions severely disrupted the normal logistics of deal-making. 0 2017 2018 2019 2020 Sustainability has been on the corporate radar for quite some time and recently has become an imperative, essential Source: Refinitiv to attracting capital, employees and customers. The oil and Gas markets proved to be somewhat more resilient. Henry gas industry is no exception to that trend, and a variety of Hub prices had been on the downswing well before the factors are in play. ESG investing strategies have moved pandemic started falling from north of US$3/MMBtu in early from a niche to a transformative factor in the allocation of 2019 to just a little more than US$2/MMBtu in January of capital. Integrating ESG into the overall business strategy 2020. Liquefied natural gas (LNG) was a different story. offers an opportunity to enhance performance, differentiate The spread between the price of landed LNG and the price from competitors, build trust through greater transparency of gas feedstock fell steadily from the beginning of the year and create long-term value. ESG communications provide and was essentially zero by mid-year as cargos struggled shareholders and other stakeholders a holistic view into how to find a destination where the gas might be needed. a company is delivering and protecting value. We’ve noted Disruption in oil markets was a central feature of what we that a large majority of studied companies are publishing a saw in this year’s reserve data. Oil and gas reserves fell sustainability or ESG report (76% overall, with integrateds, dramatically, mainly as a result of price-driven changes in large independents and independents comprising 100%, recovery economics and downward revision in estimates 93% and 65% of the total, respectively). However, very few of economically recoverable reserves. Upstream capital companies are including third-party assurance (16% overall, investment in North America plunged by 43%² (a 60% with integrateds, large independents and independents comprising 75%, 21% and 6% of the total, respectively).

¹ Source: U.S. Energy Information Administration (EIA) ² Source: Barclays Research ³ Source: U.S. EIA 4 Source: Baker Hughes 5 Source: Enverus

2 US oil and gas reserves, production and ESG benchmarking study Looking forward GlobalGlobal oil ildemand emand (million million barrels barrels per day) per day By the time of this writing, oil, gas and LNG markets had stabilized and companies’ financial position had been restored 99.1 100.0 99.8 to the point where they could begin planning for the future. In 97.7 98.2 95.3 93.5 94.3 mid-June 2021, the price of WTI crude oil hovered at about 92.9 91.4 US$70/bbl and Henry Hub gas was trading at about US$3.25/ MMBtu. Both of those numbers are at the high end of the five-year range. Consensus price forecasts for both oil and gas 83.3 are somewhat below current levels, but there are important 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 tailwinds that could move the market toward increased scarcity 2020 2020 2020 2020 2021 2021 2021 2021 and more favorable economics. The market that we find Source OPEC ourselves in reflects the confluence of three forces. Second, the supply side of the market has been carefully Oil and gas prices managed by oil-exporting countries. While pressure on

80 6 national oil companies to bring more revenue into government 70 coffers has been relentless, ministers of the Organization of 5 60 the Petroleum Exporting Countries (OPEC) have taken a longer 4 50 view, carefully calibrating production increases to expected 40 3 recovery in demand and maintaining collective discipline in an

$/bbl 30

2 $/MMBtu effort to bring inventories back to normal levels and supply- 20 1 demand balance back to pre-pandemic normalcy. 10 0 0 Third, it is unclear how aggressive companies will be investing 2017 2018 2019 2020 2021 2022 in the oilfield even as prices rise and economics improve. A Crude oil atural gas survey of companies at the end of 2020 projected US capital spending levels roughly equal to the very low levels we saw First, demand is slowly but surely finding its way back to in 2020. There are at least two potential explanations. First, pre-pandemic levels. Domestically, businesses are open, and the survey was taken at the end of 2020, before the impact consumers, diners, commuters and travelers are returning of vaccination programs was clear and the oil price recovery to their old habits. The biggest question mark at this point is had gone into full swing. It is possible that companies are international travel. Aviation fuel accounts for more than 5% revisiting those plans. Second, companies may be under of global oil demand, progress toward large-scale vaccination pressure from investors (some of whom are acutely aware of is uneven and governments are wary of the fallout from ESG considerations) to reduce debt and/or return capital rather unrestricted movement of people across international borders. than put it back into the business. Some habits may have been changed permanently. While business travel has been curtailed, companies have developed arclaysBarclays research esearch new ways of working that may live on. While the benefits 120,000 of face-to-face contact and competitive pressures are self- evident, the temptation to build lower travel costs into profits 100,000 on an ongoing basis, as well as the pressure to decarbonize, 80,000 may result in downward bias on oil demand that lasts forever. 60,000

million US$ 40,000

20,000

0 2019A 2020E 2021E

IOCs Large independents

Other independents

US oil and gas reserves, production and ESG benchmarking study 3 Some simple arithmetic on plowback percentages gives Oil companies are seeing increased pressure to decarbonize us some indication that spending will come back, at least their operations and redeploy capital toward low-carbon to some extent. At today’s oil prices and expected capital fossil fuel alternatives. On a single day in May 2021, a Dutch spending levels, plowback ratios would go to unprecedented court ordered an international oil company (IOC) to reduce lows — and we see a shift that abrupt as unlikely. But its Scope 3 carbon emissions (which include emissions from plowback percentages had been on a downward trend customers’ use of oil products) by 45% by 2030, a second for several years as capital markets began to shift their oil majors’ shareholders elected board members nominated expectations about the US shale business from a growth by an activist investor and committed to changing the mode and toward a return mode. Higher commodity prices company’s decarbonization strategy, and a third major’s should bend the curve on spending, but to the extent that shareholders adopted a resolution urging the company to the downward trend continues, and upstream capital is adopt Scope 3 greenhouse gas emissions targets, in effect constrained, there could be downward pressure on reserve pushing the company toward investing in carbon-capture additions and production. projects and/or low- or no-carbon alternatives.

U.S. EIA short-term energy outlook umber o analyst uestions to oil maors on alternative energy Number of analyst questions to oil majors on alternative energy 14 100 investments and decarboniation investments and decarbonization 13 95

12 90 8 11 85

10 80 1 1

Million barrels per day Million barrels 9 75

Billion cubic feet per day feet cubic Billion 11 1 34 8 70 2 26 26 2016 2017 2018 2019 2020 2021 2022 1 Crude oil atural gas 16 16 11 7 7 Source U.S. EIA ShortTerm Energy Outlook 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Notwithstanding the tensions, forecasts continue to call European oil majors US oil majors for increased US oil and gas production. Rig counts have The effect of all of this on reserves and production remains continued to creep upward and it is inevitable that higher to be seen. In the short run, prospects seem favorable, but oil prices will attract capital, but it is unclear in in the longer term, there is significant uncertainty. The EY the long run how effectively unconventional resources Fueling the Future analysis examines the impact of energy can compete with Middle Eastern oil in an environment transition on oil demand and asset returns in detail. where demand is expected to fall because of electrification and decarbonization. Combinedombined oil and gas productionproduction or for study the study companies companies ESG matters will continue to be at the forefront. The US Presidential election brought a new administration with a 6.0 renewed commitment to arresting climate change. In his 5.0

first days in office, President Biden brought the US back 4.0 2.1 2.2 2.2 into the Paris Agreement and convened a virtual summit 2.2 2.3 3.0 of world leaders to discuss climate change. In November, 2.0 Billion BOE Billion world leaders will convene in Scotland to discuss how to 2.9 2.8 2.2 2.3 2.6 accelerate progress on that front. 1.0 0.0 2016 2017 2018 2019 2020

Oil Gas

4 US oil and gas reserves, production and ESG benchmarking study Study highlights Although the studied companies were able to realize a decrease in production costs, significant impairments and a decrease in commodity prices led to significant losses. Capital expenditures • Expenditures totaled US$60.3 billion, 60% lower than 2019, the lowest for the study period. • Significant decreases were observed in all categories of capital spending. • The companies drilled 41% and 32% fewer development and exploration wells, respectively, compared to 2019. Revenues and results of operations • Revenues were US$110.8 billion, down 33% from 2019 and the lowest since 2016 as a result of depressed commodity prices. • Production costs were down US$1.15/BOE, an 11% decrease as compared to 2019. • Impairment was US$66.6 billion, the highest for the study period by more than three times due to the significant oil price decline caused by the global pandemic. • After-tax losses were US$84.1 billion, the greatest loss for the study period and the first loss since 2016. Oil reserves and production • Production was 2.8 billion barrels, a 2% decrease from 2019, which had the highest production during the study period. • The companies reported extensions and discoveries of 2.3 billion barrels, a decrease of 53% as compared to 2019, reflecting lower capital expenditures due to impact of the lower commodity pricing environment. • The companies reported combined oil reserves of 26.0 billion barrels, a 19% decrease as compared to 2019 primarily driven by 5.1 billion barrels of downward revisions due to lower commodity pricing and decreased forecasted capital investment commitments. Gas reserves and production • Production was 13.2 tcf, a 2% decrease from 2019, which had the highest production during the study period. • The companies reported extensions and discoveries of 15.5 tcf, a decrease of 35% as compared to 2019 primarily due to decreased development capital spending. • The companies reported combined gas reserves of 148 tcf, a decrease of 13% as compared to 2019 primarily driven by 19.4 tcf of downward revisions due to lower commodity pricing and decreased forecasted capital investment commitments.

US oil and gas reserves, production and ESG benchmarking study 5 The studied companies realized significant losses and conserved cash through decreasing capital expenditures and other costs

6 US oil and gas reserves, production and ESG benchmarking study Capital expenditures

US — capital expenditures (US$ millions) (a)

2016 2017 2018 2019 2020 Proved properties acquired 12,846 12,547 25,409 28,902 7,002 Unproved properties acquired 23,383 24,148 13,452 35,322 4,554 Exploration 9,888 12,745 13,328 11,440 6,177 Development 39,202 58,521 77,892 76,486 42,551 Other 28 163 578 73 65 Total 85,347 108,124 130,659 152,223 60,349 (a) Includes the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates. Activity related to acquired companies has also been reflected as described in the Appendix.

The studied companies significantly with exploration spend of US$1.1 Highest capital expenditures for 2020 decreased capital expenditures in billion. The two companies represented (US$ millions) 2020, recording the first year-over- 37% of 2020 total exploration spend Proved properties acquired year decrease and the lowest level of in our study. Chevron Corporation 3,486 spend during the study period due Development spending decreased PDC Energy, Inc. 1,618 to the impact of the COVID-19 global from US$76.5 billion in 2019 to EQT Corporation 762 pandemic on oil and gas demand US$42.6 billion in 2020. Investments Talos Energy Inc 423 and the resulting low commodity in development expenditures National Fuel Gas Company 246 price environment. Total capital from the integrated oil and gas Unproved properties acquired expenditures were US$60.3 billion in companies decreased year over Chevron Corporation 2,880 2020, representing a 60% decrease year by approximately one-third, from 2019 as compared to increases while investments in development EOG Resources, Inc. 265 of 17%, 21% and 27% in 2019, 2018 expenditures from the large Continental Resources, Inc. 202 and 2017, respectively. independents and independents Southwestern Energy Company 124 Chevron Corporation was the leading decreased by approximately half. PDC Energy, Inc. 114 purchaser in 2020 with total property Exploration Net wells drilled acquisition costs of US$6.4 billion, et ells drilled Pioneer Natural Resources Company 1,172 primarily due to the acquisition of 10,000 Diamondback Energy, Inc. 1,098

Noble Energy, Inc., which included 7,702 8,000 Royal Dutch Shell plc 951 acquisition costs of US$3.5 billion 6,000 4,525 ConocoPhillips 403 and US$2.8 billion for proved and 4,000 Chevron Corporation 398 unproved properties, respectively. 2,000 855 581 Development PDC Energy, Inc. followed with total 0 2019 2020 Exxon Mobil Corporation¹ 5,810 property acquisition costs of US$1.7 evelopment Exploration billion, primarily related to the merger Chevron Corporation 4,622 Costsosts incurred incurred with SRC Energy Inc. in January. Royal Dutch Shell plc 4,186 160 EOG Resources, Inc. 2,998 11 Exploration spending was US$6.2 140 29 120 13 BP p.l.c. 2,966 billion in 2020 compared with 13 25 100 35 13 13 ¹ See company endnotes on page 39. 80 10 US$11.4 billion in 2019. Pioneer 13 24 6 US$ billions 60 23 7 5 Natural Resources kept its leading 40 78 76 59 position in exploration spend from the 20 39 43 0 prior year and incurred US$1.2 billion. 2016 2017 2018 2019 2020 evelopment Unproved properties acquired Diamondback Energy, Inc. followed Proved properties acquired Exploration

US oil and gas reserves, production and ESG benchmarking study 7 The studied companies recorded a combined US$66.6 billion of impairments, the most significant impairments recorded during the study period by more than three times

8 US oil and gas reserves, production and ESG benchmarking study Revenues and results of operations

US — revenues and results of operations (US$ millions) (a) 2016 2017 2018 2019 2020 Revenues 100,651 132,225 176,300 165,903 110,749 Production costs (b) 47,875 47,893 53,520 54,805 47,769 Exploration expense 5,934 6,143 4,335 3,673 7,537 DD&A (c) 74,694 59,786 60,722 73,479 85,045 Impairments 19,681 10,256 8,923 18,756 66,647 Other expenses (d) 3,011 5,810 5,697 12,355 6,615 Pre-tax results of operations (50,544) 2,337 43,103 2,835 (102,864) Income tax expense (benefit) (e) (15,582) (13,224) 8,576 120 (18,773) Results of operations (34,962) 15,561 34,527 2,715 (84,091)

US — revenues and results of operations (US$ per BOE) (a) 2016 2017 2018 2019 2020 Revenues 23.01 30.35 36.98 32.24 22.03 Production costs (b) 10.94 10.99 11.23 10.65 9.50 Exploration expense 1.36 1.41 0.91 0.71 1.50 DD&A (c) 17.08 13.72 12.74 14.28 16.92 Impairments 4.50 2.35 1.87 3.65 13.26 Other expenses (d) 0.69 1.33 1.19 2.40 1.32 Pre-tax results of operations (11.56) 0.55 9.04 0.55 (20.47) Income tax expense (benefit) (e) (3.56) (3.03) 1.80 0.02 (3.73) Results of operations (8.00) 3.58 7.24 0.53 (16.74) (a) This includes the 50 largest companies based on 2020 end-of-year oil and gas reserves. Activity related to acquired companies has also been reflected as described in the appendix. (b) This includes production taxes and transportation costs for companies that separately disclose these expenses. (c) DD&A (depreciation, depletion and amortization) (d) This includes asset retirement obligation accretion and production-related general and administrative costs, among other items, for companies that separately disclose these expenses. (e) Income taxes are presented for informational purposes only. The study is focused on pre-tax results of operations as a more meaningful comparative metric. Facts and circumstances underlying an individual company’s tax results might not be representative of the study group as a whole and, as such, are not discussed in further details.

The studied companies reported the lowest combined pre- commodity prices and market views of forward pricing tax and after-tax results of operations during the study totaled US$66.6 billion in 2020, more than three times the period represented by losses more than twice the size of previous high during the study period. The increase in DD&A those recorded in 2016. Results of operations for 2020 was per BOE is likely reflective of downward revisions to oil and a loss of US$84.1 billion compared to income of US$2.7 gas reserves offset by the lower cost basis of properties as a billion in 2019, mainly due to a decline in revenue and result of the impairment charges recorded. significant impairment charges. The revenue decrease of The studied companies posted a 96% plowback percentage 33% from prior year was attributable to depressed prices as in 2020 compared to the 2019 average of 137%. The the average realized revenue per BOE decreased by 32% as plowback percentage represents total capital expenditures compared to the prior year. Combined oil and gas production as a percentage of netback (revenues less production was materially consistent year over year. costs). Integrated companies posted the highest plowback While the study companies achieved a decrease of US$1.15 percentage with a 2020 rate of 154%. Large independents per BOE, or 11%, in production costs year over year, DD&A had a rate of 74%, and independents had a rate of 76%. The and oil and gas property impairment charges increased larger plowback percentage for the integrated companies year over year by US$2.64 per BOE, or 18%, and US$9.61 resulted in part from the acquisition of Noble Energy, Inc. by per BOE, or 263%, respectively. Oil and gas property Chevron Corporation. impairments recorded primarily as a result of declining

US oil and gas reserves, production and ESG benchmarking study 9 Plowback percentage

250%

200%

150%

100%

50%

0% 2016 2017 2018 2019 2020

Integrateds Large independents Independents

Revenues and results of operations

$200 $40

$150 $30

$100 $20

$50 $10

$0 $0

US$ billions 2016 2017 2018 2019 2020 US$ per BOE $(50) $(10)

$(100) $(20)

Revenues (left axis) et income (left axis) et income per BOE (right axis) Revenue per BOE (right axis)

10 US oil and gas reserves, production and ESG benchmarking study Oil reserves

US — proved oil reserves (million barrels) (a) (b) 2016 2017 2018 2019 2020 Beginning of year 23,495 23,105 28,064 31,382 32,077 Additions: Extensions and discoveries 2,519 4,822 5,349 4,884 2,312 Improved recovery 187 202 262 455 140 Revisions (799) 1,770 436 (1,970) (5,068) Production (2,228) (2,328) (2,607) (2,886) (2,820) Purchases 965 1,114 1,798 2,083 777 Sales (919) (630) (1,702) (1,871) (1,431) Other (115) 9 (218) 0 0 End of year 23,105 28,064 31,382 32,077 25,987 (a) This includes the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates. Activity related to acquired companies has also been reflected as described in the appendix. (b) This includes condensate and natural gas liquids.

Oil reserves for the studied companies Oil production remained materially sales of 739 million barrels (52% of decreased 19% in 2020 mainly due flat as compared to 2019. The largest total sales), given the acquisitions of to significant downward revisions, increases were posted by Occidental these companies by other companies production and sales, which were Petroleum Corporation (79 million included in the study group. BP p.l.c. partially offset by extensions and barrels) and Chevron Corporation recorded 445 million barrels in sales discoveries. As a result, the studied (26 million barrels) likely due to the of proved reserves (31% of total sales), companies reported the lowest oil acquisitions of Anadarko Petroleum the most significant sales after the sale reserves since 2016. Corporation and Noble Energy, Inc., of Noble Energy, Inc. Extensions and discoveries decreased respectively. The largest decreases were posted by ConocoPhillips (27 by 53% as compared to 2019 as Oilil production production companies conserved cash during million barrels) and BP p.l.c. (21 million a period of depressed commodity barrels) and are likely the result of 3.0 2.5 prices. At 2.3 billion barrels, the reduced development spending and production curtailments due to the low 2.0 studied companies reported the lowest 1.5

oil price environment. barrels Billion extensions and discoveries for the 1.0 study period. Overall, oil production increased by 0.5 0.0 Downward revisions for 2020 were 5.2 27% from 2016 to 2020, with the 2016 2017 2018 2019 2020 billion barrels, and upward revisions large independents’ production growing All companies Integrateds Large independents Independents were 0.1 billion barrels, resulting in 5.1 39%, compared with 63% growth for billion barrels net negative revisions. the integrateds and a 12% decrease for the independents. The largest downward revisions were End-of-year oil reserves Endoyear oil reserves reported by Exxon Mobil Corporation Purchases of oil reserves for 2020 (1,241 million barrels), ConocoPhillips were 777 million barrels, while 35 sales were 1,431 million barrels. 30 (449 million barrels), Occidental 25 Petroleum Corporation (373 million Chevron Corporation recorded 425 20 15

million barrels in purchases (55% barrels Billion barrels) and Chevron Corporation (350 10 million barrels). Revisions by these four of total purchases), largely due to 5 0 its acquisition of oil and gas assets Integrateds Large Independents All companies companies accounted for 48% of all independents from Noble Energy, Inc. Noble downward revisions in 2020. Individual 2016 2017 2018 2019 2020 contributions to the upward revisions Energy, Inc. and Montage Resources were not significant. Corporation accounted for combined

US oil and gas reserves, production and ESG benchmarking study 11 Highest oil reserves and production for 2020 (million barrels) Ending reserves Chevron Corporation 2,343 EOG Resources, Inc. 2,326 Exxon Mobil Corporation1 2,090 ConocoPhillips 1,896 BP p.l.c. 1,771 Production Chevron Corporation 290 Occidental Petroleum Corporation 286 EOG Resources, Inc. 199 Exxon Mobil Corporation1 194 ConocoPhillips 175 1 See company endnotes on page 39.

Highest oil reserves and production for 2019 (million barrels) Ending reserves Exxon Mobil Corporation1 3,339 EOG Resources, Inc. 2,434 Chevron Corporation 2,430 BP p.l.c. 2,384 ConocoPhillips 2,373 Production Chevron Corporation 264 EOG Resources, Inc. 215 Occidental Petroleum Corporation 207 ConocoPhillips 202 Exxon Mobil Corporation1 187 1 See company endnotes on page 39.

12 US oil and gas reserves, production and ESG benchmarking study In 2020, the studied companies reported the lowest combined oil and gas reserves since 2016

US oil and gas reserves, production and ESG benchmarking study 13 Gas reserves

US — proved gas reserves (bcf) (a) 2016 2017 2018 2019 2020 Beginning of year 142,233 143,431 172,401 176,236 169,567 Additions: Extensions and discoveries 18,525 31,469 31,166 23,814 15,500 Improved recovery 609 1,246 1,646 700 728 Revisions (4,727) 9,721 (2,466) (18,171) (19,395) Production (12,920) (12,111) (12,967) (13,559) (13,236) Purchases 8,010 12,169 5,267 10,178 6,577 Sales (7,910) (13,515) (15,903) (9,631) (11,751) Other (389) (9) (2,908) 0 0 End of year 143,431 172,401 176,236 169,567 147,990 (a) This includes the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates. Activity related to acquired companies has also been reflected as described in the appendix.

End-of-year gas reserves for the reported by BP p.l.c. (0.6 tcf), Pioneer Montage Resources Corporation, studied companies decreased by Natural Resources Company (0.3 tcf), and Chevron Corporation recorded 13% in 2020 to 148 tcf, marking the Diamondback Energy, Inc. (0.3 tcf), 1.5 tcf in purchases primarily due to lowest level of gas reserves since Comstock Resources, Inc. (0.3 tcf) and its acquisition of assets from Noble 2016. The decrease is mainly due Apache Corporation (0.2 tcf). Revisions Energy, Inc. Collectively, this represents to significant downward revisions, by these five companies accounted for 53% of total purchases. production and sales, which were 89% of all upward revisions in 2020. Sales of gas reserves were 11.8 tcf partially offset by extensions and Gas production remained materially in 2020. BP p.l.c. posted the largest discoveries and purchases. flat as compared to 2019. The largest sales in 2020 of 3.6 tcf, while Noble EQT Corporation (3.4 tcf), CNX increases were posted by Occidental Energy, Inc. and Montage Resources Resources Corporation (2.2 tcf), Petroleum Corporation (235 bcf), Corporation accounted for combined Cabot Oil & Gas Corporation (2.0 tcf), Comstock Resources, Inc. (158 bcf) and sales of 4.2 tcf, given the acquisitions EOG Resources, Inc, (1.1 tcf) and Chevron Corporation (141 bcf), while of these companies by other companies Range Resources Corporation (1.0 the largest decreases were posted by included in the study group. tcf) posted the largest extensions and BP p.l.c (320 bcf), Royal Dutch Shell discoveries accounting for 63% of the plc (136 bcf) and Gulfport Energy End-of-year gas reserves total extensions and discoveries for Corporation (113 bcf). Endoyear gas reserves the study group. 200 While gas production from 2016 to 180 160 Downward revisions for 2020 were 2020 did not change significantly, 140 120 Tcf 21.3 tcf, and upward revisions were the level of change varied among the 100 80 1.9 tcf, resulting in 19.4 tcf net peer groups. The large independents 60 40 negative revisions. increased their gas production by 20 0 Integrateds Large Independents All companies The largest downward revisions were 27% from 2016, and production of independents the integrateds and the independents reported by Exxon Mobil Corporation 2016 2017 2018 2019 2020 (5.0 tcf), Chesapeake Energy decreased by 4% and 24%, respectively. Corporation (2.3 tcf), Gulfport Energy The large independents accounted for Corporation (1.6 tcf) and Continental 54% of total gas production in 2020. Resources, Inc. (1.5 tcf). Revisions by Purchases of gas reserves were 6.6 these four companies accounted for tcf in 2020. Southwestern Energy 54% of all downward revisions in 2020. Company recorded 1.9 tcf in purchases The largest upward revisions were primarily due to its merger with

14 US oil and gas reserves, production and ESG benchmarking study Gas production

16.0 14.0 12.0 10.0 8.0 Tcf 6.0 4.0 2.0 0.0 2016 2017 2018 2019 2020

All companies Integrateds Large independents Independents

Highest gas reserves and production for 2020 (bcf) Ending reserves EQT Corporation 18,864 Cabot Oil & Gas Corporation 13,672 Exxon Mobil Corporation1 13,541 Range Resources Corporation 11,148 Antero Resources Corporation 10,025

Production EQT Corporation 1,419 Exxon Mobil Corporation1 1,093 Antero Resources Corporation 875 Cabot Oil & Gas Corporation 858 Southwestern Energy Company 694 1 See company endnotes on page 39.

Highest gas reserves and production for 2019 (bcf) Ending reserves Exxon Mobil Corporation1 19,239 EQT Corporation 16,677 Cabot Oil & Gas Corporation 12,903 Range Resources Corporation 12,115 Antero Resources Corporation 11,494

Production EQT Corporation 1,435 Exxon Mobil Corporation1 1,115 BP p.l.c 923 Cabot Oil & Gas Corporation 865 Antero Resources Corporation 822 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 15 Performance measures

Proved reserve acquisition costs

US — proved reserve acquisition costs (PRACs) (a) US$ per BOE 2016 2017 2018 2019 2020 Three-year Five-year PRACs 5.64 3.65 9.49 7.77 3.74 7.41 6.30 (a) This includes the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates and their historic results of operations and production information. As a result, activity related to acquired companies has not been reflected as described in the appendix.

PRACs were US$3.74 per BOE in 2020, approximately half that of the prior year. Lowest three-year (2018–2020) PRACs (a) Chevron Corporation and PDC Energy, Inc. accounted for 73% of proved properties acquisition costs. The larger acquisitions relating to these companies were PRACs (b) discussed above, and the PRAC results for Chevron Corporation and PDC Energy, Ovintiv Inc.1 $ 0.07 Inc. were US$5.10 per BOE and US$5.48 per BOE, respectively. We note that this Callon Petroleum Company 1.08 measure is a combination of oil and gas property acquisitions and the US$ per CNX Resources Corporation 1.71 BOE measure is impacted by the mix of the commodities in acquired reserves. Amplify Energy Corp. 2.17 National Fuel Gas Company 2.20 (a) Amounts presented represent a combination of oil and gas property and development costs. As such, a company with a large concentration of expenditures related to natural gas will likely have a lower US$ per BOE in these measures. (b) Based on companies with proved acquisition costs of at least US$50 million for the three-year period. 1 See company endnotes on page 39.

16 US oil and gas reserves, production and ESG benchmarking study Production replacement rates Oil

US — all sources and finding and development (F&D) oil production replacement rates (a) 2016 2017 2018 2019 2020 Three-year Five-year All sources 92% 310% 278% 174% (90%) 112% 142% F&D, including revisions 79% 284% 237% 118% (93%) 79% 114% F&D, excluding revisions 122% 217% 217% 185% 87% 160% 163% (a) This includes the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates and their historic results of operations and production information. As a result, activity related to acquired companies has not been reflected as described in the appendix.

Decreases in oil reserves mainly due to significant downward revisions and lower Oil F&D, excluding revisions extension and discovery adds as a result of cash conservation lead to decreased production replacement rates oil production replacement rates. Production replacement rates from all sources 300% and F&D, including revisions, were negative as reserves decreased, excluding the 250% effects of production. 200% 150% All peer groups experienced replacement rates from all sources and from F&D, 100% including revisions of less than zero. Only the large independents reported reserve 50% replacement from F&D, excluding revisions greater than 100%. 0% 2016 2017 2018 2019 2020 All sources: In 2020, 21 companies reported positive replacement from all sources, while 11 companies reported more than 100% replacement from All companies Integrateds all sources. Large independents Independents F&D, including revisions: In 2020, 18 companies reported positive replacement from all F&D sources, while 8 companies reported more than 100% replacement from all F&D sources. F&D, excluding revisions: In 2020, 16 companies achieved more than 100% replacement from F&D sources other than revisions.

Oil production replacement by peer group, 2020 F&D, including F&D, excluding All sources revisions revisions Integrateds (174%) (167%) 51% Large independents (32%) (32%) 123% Independents (94%) (113%) 67%

US oil and gas reserves, production and ESG benchmarking study 17 Production replacement rates Gas

US — all sources and F&D gas production replacement rates (a) 2016 2017 2018 2019 2020 Three-year Five-year All sources 117% 397% 179% 75% (32%) 72% 139% F&D, including revisions 99% 348% 234% 43% (24%) 81% 133% F&D, excluding revisions 146% 281% 256% 179% 123% 184% 195% (a) This includes the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates and their historic results of operations and production information. As a result, activity related to acquired companies has not been reflected as described in the appendix.

Similar to oil replacement rates, decreases in gas reserves resulted in lower Gas F&D, excluding revisions levels of replacement rates for gas reserves. Although reserve replacement production replacement rates rates were below zero from all sources and from F&D, including revisions, the 400% study companies achieved an above 100% replacement rate in 2020 for F&D, 350% 300% excluding revisions. 250% 200% While gas replacement rates from all sources and from F&D, including revisions, 150% were below zero for all companies in the aggregate, the large independent peer 100% 50% group achieved positive gas replacement rates in all three categories. 0% 2016 2017 2018 2019 2020 All sources: In 2020, 28 companies reported positive replacement rates from all sources, while 19 companies reported more than 100% replacement from All companies Integrateds Large independents Independents all sources. F&D, including revisions: In 2020, 25 companies reported positive replacement rates from all F&D sources, while 16 companies reported more than 100% replacement from all F&D sources. F&D, excluding revisions: In 2020, 17 companies achieved more than 100% replacement from F&D sources other than revisions.

Gas production replacement by peer group, 2020 F&D, including F&D, excluding All sources revisions revisions Integrateds (305%) (149%) 56% Large independents 81% 60% 184% Independents (61%) (102%) 49%

18 US oil and gas reserves, production and ESG benchmarking study Production costs US — production costs (US$ per BOE) (a)

2016 2017 2018 2019 2020 Three-year Five-year Integrateds 14.41 13.22 13.40 12.85 11.70 12.63 13.06 Large independents 9.94 10.01 10.16 9.70 8.75 9.49 9.65 Independents 10.52 10.68 10.85 10.11 8.85 9.94 10.19 All companies 11.33 11.07 11.19 10.62 9.50 10.41 10.68 (a) This includes the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates and their historic results of operations and production information. As a result, activity related to acquired companies has not been reflected as described in the appendix.

Production costs per BOE decreased 11% from 2019 to 2020 as production Production costs per BOE taxes declined due to lower commodity prices and as the companies continue 16% 14% to optimize their cost profiles and asset portfolios as a result of adapting to the 12% low and cyclical price environment. 10% 8% 6% Lowest three-year (2018-2020) production costs 4% 2% (US$ per BOE) (a) 0% 2016 2017 2018 2019 2020 Viper Energy Partners LP 2.46 Comstock Resources, Inc. 3.50 Integrateds Large independents Independents SilverBow Resources 4.60 Cabot Oil & Gas Corporation 4.68 PDC Energy, Inc. 5.23 (a) Amounts presented represent a combination of oil and gas production costs. As such, a company with a large concentration of expenditures related to natural gas will likely have a lower US$ per BOE in this measure.

US oil and gas reserves, production and ESG benchmarking study 19 20 US oil and gas reserves, production and ESG benchmarking study ESG

US — ESG reporting (a)

Does reporting Does the include third- Are goals Are goals company publish Does reporting party assurance identified for Are goals identified for a sustainability align to a specific over ESG environmental identified for governance or ESG report? framework? (b) metrics? topics? social topics? topics? Integrateds 100% 100% 75% 100% 50% 25% Large independents 93% 79% 21% 71% 57% 7% Independents 65% 58% 6% 39% 19% 10% All companies 76% 67% 16% 53% 33% 10% (a) This data includes the 49 of the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates. This report excludes data for QEP Resources, Inc. as it was acquired by Diamondback Energy, Inc. in March 2021. The data presented here is based on a review of company sustainability and ESG reports, as well as a review of information included on company websites. (b) The frameworks included in this question were GRI, SASB and the TCFD frameworks.

As investor demand for ESG information has continued to increase, oil and gas companies have responded by providing ESG disclosures through sustainability reports and information on their company websites. The integrated and large independents have led the charge as 100% and 93% of these companies, respectively, published a sustainability or ESG report, while 65% of independents published a report. Most reports published align with the GRI, SASB, and/or the TCFD frameworks. While 75% of integrated companies included third-party assurance over ESG metrics, large independents and independents are significantly less likely to include third- party assurance. Company goals were most often identified for environmental topics (53% of all companies) while only 33% and 10% of companies identified goals for social and governance topics, respectively.

US oil and gas reserves, production and ESG benchmarking study 21 Company statistics

US — capital expenditures for the latest fiscal year (a) US$ millions

Proved Unproved Total properties properties Exploration Development Other expenditures Amplify Energy Corp. 0 (49) 0 30 0 (19) Antero Resources Corporation 0 45 3 823 0 871 Apache Corporation 0 4 8 332 0 344 Berry Corporation 12 0 0 97 0 109 BHP Group 0 38 278 676 0 992 Bonanza Creek Energy, Inc. 9 2 1 56 0 68 BP p.l.c. 1 25 233 2,966 0 3,225 Cabot Oil & Gas Corporation 0 6 15 547 0 568 California Resources Corporation 0 0 11 42 0 53 Callon Petroleum Company 0 31 123 380 0 534 Centennial Resource Development, Inc. 1 7 18 284 0 310 Chesapeake Energy Corporation 3 6 8 887 0 904 Chevron Corporation 3,486 2,880 398 4,622 0 11,386 Cimarex Energy Co. 12 47 2 496 0 557 CNX Resources Corporation 17 8 34 432 0 491 Comstock Resources, Inc. 0 0 8 484 0 492 ConocoPhillips 62 14 403 2,503 0 2,982 Continental Resources, Inc. 60 202 48 1,054 0 1,364 Denbury Resources Inc. 0 0 0 116 0 116 Devon Energy Corporation 0 8 159 820 0 987 Diamondback Energy, Inc. 13 106 1,098 381 0 1,598 Earthstone Energy, Inc 0 0 0 68 0 68 EOG Resources, Inc. 97 265 203 2,998 0 3,563 EQT Corporation 762 78 5 947 0 1,792 Extraction Oil & Gas, Inc. 8 9 0 174 0 191 Exxon Mobil Corporation1 1 80 60 5,810 0 5,951 Gulfport Energy Corporation1 15 0 0 277 0 292 Hess Corporation 0 0 169 716 0 885

22 US oil and gas reserves, production and ESG benchmarking study Proved Unproved Total properties properties Exploration Development Other expenditures Laredo Petroleum, Inc. 11 25 17 327 0 380 Magnolia Oil & Gas Corporation1 49 26 0 188 0 263 Marathon Oil Corporation 0 36 330 780 0 1,146 Matador Resources Company 8 62 29 419 0 518 Murphy Oil Corporation 0 7 34 609 0 650 National Fuel Gas Company 246 43 4 356 62 711 Oasis Petroleum Inc. 0 1 1 214 0 216 Occidental Petroleum Corporation 7 41 117 1,376 0 1,541 Ovintiv Inc.1 3 16 12 1,352 0 1,383 PDC Energy, Inc. 1,618 114 13 529 0 2,274 Penn Virginia Corporation 0 3 0 127 0 130 Pioneer Natural Resources Company 0 14 1,172 387 0 1,573 QEP Resources, Inc. 3 1 0 325 0 329 Range Resources Corporation 0 26 40 373 3 442 Royal Dutch Shell plc 0 80 951 4,186 0 5,217 SilverBow Resources 5 6 0 89 0 100 SM Energy Company 6 11 78 491 0 586 Southwestern Energy Company 0 124 0 784 0 908 Talos Energy Inc 423 95 59 362 0 939 Viper Energy Partners LP 56 10 0 0 0 66 W&T Offshore, Inc. 8 0 7 24 0 39 Whiting Petroleum Corporation 0 1 28 235 0 264 All companies 7,002 4,554 6,177 42,551 65 60,349

Integrateds 3,488 3,065 1,642 17,584 0 25,779 Large independents 1,021 945 3,319 14,673 3 19,961 Independents 2,493 544 1,216 10,294 62 14,609 (a) Amounts are determined from the disclosure of costs incurred and may include amounts that were capitalized and amounts that were charged to expense. 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 23 US — revenues and results of operations for the latest fiscal year (a) US$ millions

Other income Production Exploration (expense) Income Results of Revenues costs (b) expense DD&A Impairments (c) taxes operations Amplify Energy Corp. 280 (154) 0 (40) (477) (6) 0 (397) Antero Resources Corporation 3,084 (2,736) (1) (854) (224) 0 (176) (907)

Apache Corporation 1,764 (797) (168) (726) (3,938) (32) 818 (3,079) Berry Corporation 406 (230) 0 (135) (289) (24) 83 (189) BHP Group 1,101 (162) (271) (476) 0 (24) (35) 133 Bonanza Creek Energy, Inc. 267 (43) (1) (91) (37) (1) 61 155 BP p.l.c. 6,961 (2,115) (2,724) (3,655) 0 (3,349) 1,125 (3,757) Cabot Oil & Gas Corporation 1,440 (659) (15) (391) 0 0 (41) 334 California Resources Corporation 1,431 (735) (11) (330) (1,733) (112) 417 (1,073) Callon Petroleum Company 1,083 (334) 0 (481) (2,547) 0 (122) (2,401) Centennial Resource Development, Inc. 534 (220) (18) (359) (691) 0 85 (669)

Chesapeake Energy Corporation 3,397 (1,604) (427) (1,026) (8,446) 0 1,840 (6,266) Chevron Corporation 9,376 (4,530) (457) (6,482) (58) (114) 558 (1,707) Cimarex Energy Co. 1,513 (578) 0 (625) (1,638) (15) 296 (1,047) CNX Resources Corporation 1,176 (351) (15) (502) (62) (101) (42) 103 Comstock Resources, Inc. 993 (246) 0 (417) 0 17 9 356 ConocoPhillips 5,761 (3,016) (1,172) (3,384) (804) (169) 701 (2,083) Continental Resources, Inc. 2,555 (749) (18) (1,860) (278) 0 83 (267) Denbury Resources Inc. 693 (443) 0 (178) (998) 40 214 (672) Devon Energy Corporation 2,695 (1,123) (167) (1,207) (2,664) (20) 0 (2,486) Diamondback Energy, Inc. 3,006 (760) 0 (1,304) (6,021) (7) 1,104 (3,982) Earthstone Energy Inc 201 (39) 0 (96) (64) 0 0 2 EOG Resources, Inc. 7,116 (2,214) (149) (3,192) (2,018) (459) 220 (696) EQT Corporation 2,650 (1,866) (5) (1,393) (407) 0 255 (766) Extraction Oil & Gas, Inc. 556 (245) (259) (332) (208) 0 121 (367) Exxon Mobil Corporation1 8,594 (5,071) (51) (28,049) 0 0 5,650 (18,927) Gulfport Energy Corporation1 801 (538) 0 (230) (1,357) 0 (7) (1,331) Hess Corporation 2,747 (682) (284) (1,480) (697) (1,122) 0 (1,518)

24 US oil and gas reserves, production and ESG benchmarking study Other income Production Exploration (expense) Income Results of Revenues costs (b) expense DD&A Impairments (c) taxes operations Laredo Petroleum, Inc. 496 (165) 0 (203) (889) (4) 0 (765) Magnolia Oil & Gas Corporation1 535 (139) (567) (283) (1,381) (6) 79 (1,762) Marathon Oil Corporation 2,964 (1,134) (175) (2,260) 0 (48) 9 (644) Matador Resources Company 783 (198) 0 (362) (685) (5) 46 (421) Murphy Oil Corporation 1,412 (632) (36) (767) (1,153) (84) 244 (1,016) National Fuel Gas Company 510 (219) 0 (167) (449) (8) 93 (240) Oasis Petroleum Inc. 690 (283) (3) (278) (4,801) (1) 1,106 (3,570) Occidental Petroleum Corporation 9,058 (4,097) (68) (6,611) (5,973) 129 1,663 (5,899) Ovintiv Inc.1 2,701 (1,096) 0 (1,378) (5,580) (13) 1,309 (4,057) PDC Energy, Inc. 1,333 (299) (1) (611) (882) (9) 5 (464) Penn Virginia Corporation 349 (76) 0 (141) (392) 0 2 (258) Pioneer Natural Resources Company 3,674 (924) (47) (1,639) 0 (321) 61 804 QEP Resources, Inc. 721 (293) 0 (564) (9) 0 32 (113) Range Resources Corporation 1,930 (1,205) (33) (394) (98) (437) 26 (211) Royal Dutch Shell plc 6,247 (2,679) (325) (7,927) 0 (230) 790 (4,124) SilverBow Resources 256 (53) 0 (65) (356) 0 (21) (239) SM Energy Company 1,477 (391) (41) (785) (1,016) 1 192 (563) Southwestern Energy Company 1,348 (866) 0 (348) (2,825) 0 0 (2,691) Talos Energy Inc 720 (248) 0 (364) (268) (50) (36) (246)

Viper Energy Partners LP 210 (20) 0 (101) (69) 0 (142) (122) W&T Offshore, Inc. 380 (184) 0 (98) 0 (23) 30 105 Whiting Petroleum Corporation 774 (328) (28) (404) (4,165) (8) 68 (4,091) All companies 110,749 (47,769) (7,537) (85,045) (66,647) (6,615) 18,773 (84,091)

Integrateds 31,178 (14,395) (3,557) (46,113) (58) (3,693) 8,123 (28,515) Large independents 48,246 (21,221) (1,807) (24,730) (24,987) (2,500) 5,163 (21,836) Independents 31,325 (12,153) (2,173) (14,202) (41,602) (422) 5,487 (33,740) (a) Amounts are determined from the results of the operations table if it is provided; otherwise, amounts are determined from the income statement. Revenues determined from the income statement include oil and gas sales and realized derivatives gains or losses. (b) This includes production taxes and transportation costs for companies that separately disclose these expenses. (c) This includes asset retirement obligations accretion and production-related general and administrative expenses, among other items, for those companies that separately disclose these expenses. 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 25 US — oil reserves for the latest fiscal year (a) Million barrels

Extensions and Improved Beginning discoveries recovery Revisions Production Purchases Sales Other Ending Amplify Energy Corp. 100 0 0 (27) (6) 0 0 0 67 Antero Resources Corporation 1,233 51 0 57 (72) 0 0 0 1,269 Apache Corporation 507 29 0 (70) (59) 0 (9) 0 398 Berry Corporation 131 1 0 (32) (9) 0 0 0 91 BHP Group 283 0 0 23 (25) 0 0 0 281 Bonanza Creek Energy, Inc. 87 13 0 (15) (7) 2 0 0 80 BP p.l.c. 2,384 2 25 (40) (155) 0 (445) 0 1,771 Cabot Oil & Gas Corporation 0 0 0 0 0 0 0 0 0 California Resources Corporation 535 21 0 (171) (30) 0 (1) 0 354 Callon Petroleum Company 414 34 0 (19) (30) 0 (13) 0 386 Centennial Resource Development, Inc. 217 43 0 (32) (18) 0 0 0 210 Chesapeake Energy Corporation 478 2 0 (199) (49) 0 (19) 0 213 Chevron Corporation 2,430 165 1 (350) (290) 425 (38) 0 2,343 Cimarex Energy Co. 364 39 0 (45) (54) 0 0 0 304 CNX Resources Corporation 81 10 0 0 (5) 0 0 0 86 Comstock Resources, Inc. 17 0 0 (4) (2) 0 0 0 11 ConocoPhillips 2,373 159 0 (449) (175) 7 (19) 0 1,896

Continental Resources, Inc. 760 42 0 (250) (58) 3 0 0 497 Denbury Resources Inc. 226 0 0 (63) (18) 0 (4) 0 141 Devon Energy Corporation 487 104 0 (8) (85) 4 (2) 0 500 Diamondback Energy, Inc. 941 249 0 (56) (88) 3 0 0 1,049 Earthstone Energy Inc 76 1 0 (12) (4) 0 0 0 61 EOG Resources, Inc. 2,434 375 0 (285) (199) 6 (5) 0 2,326 EQT Corporation 132 2 0 7 (13) 29 0 0 157 Extraction Oil & Gas, Inc. 157 8 0 (60) (20) 0 (1) 0 84 Exxon Mobil Corporation1 3,339 187 0 (1,241) (194) 0 (1) 0 2,090 Gulfport Energy Corporation1 80 4 0 (27) (6) 0 0 0 51

Hess Corporation 677 76 0 (96) (75) 0 (19) 0 563

26 US oil and gas reserves, production and ESG benchmarking study Extensions and Improved Beginning discoveries recovery Revisions Production Purchases Sales Other Ending Laredo Petroleum, Inc. 181 6 0 (4) (20) 6 0 0 169 Magnolia Oil & Gas Corporation1 77 20 0 (4) (16) 2 0 0 79 Marathon Oil Corporation 823 22 0 (119) (87) 0 (1) 0 638 Matador Resources Company 148 21 0 7 (16) 0 0 0 160 Montage Resources Corporation (b) 99 0 0 0 0 0 (99) 0 0 Murphy Oil Corporation 431 17 0 (134) (37) 0 (2) 0 275 National Fuel Gas Company 25 0 0 (1) (2) 0 0 0 22 Noble Energy, Inc. (b) 640 0 0 0 0 0 (640) 0 0 Oasis Petroleum Inc. 201 5 0 (70) (16) 0 0 0 120 Occidental Petroleum Corporation 2,110 11 114 (373) (286) 3 (51) 0 1,528 Ovintiv Inc.1 1,132 223 0 (251) (85) 18 (17) 0 1,020 PDC Energy, Inc. 351 1 0 (56) (41) 162 (4) 0 413 Penn Virginia Corporation 118 33 0 (29) (8) 0 0 0 114 Pioneer Natural Resources Company 886 167 0 5 (109) 1 (2) 0 948 QEP Resources, Inc. 320 0 0 7 (25) 0 0 0 302 Range Resources Corporation 1,013 42 0 30 (40) 0 (36) 0 1,009 Royal Dutch Shell plc 982 27 0 (116) (165) 0 0 0 728 SilverBow Resources 44 1 0 (16) (3) 0 0 0 26 SM Energy Company 258 55 0 (53) (29) 0 (2) 0 229 Southwestern Energy Company 682 5 0 (261) (31) 74 0 0 469 Talos Energy Inc 116 4 0 (15) (15) 30 0 0 120 Viper Energy Partners LP 73 20 0 (6) (7) 1 0 0 81 W&T Offshore, Inc. 62 0 0 (7) (7) 1 0 0 49 Whiting Petroleum Corporation 362 15 0 (138) (29) 0 (1) 0 209 All companies 32,077 2,312 140 (5,068) (2,820) 777 (1,431) 0 25,987

Integrateds 9,135 381 26 (1,747) (804) 425 (484) 0 6,932 Large independents 15,094 1,412 114 (1,922) (1,236) 144 (789) 0 12,817 Independents 7,848 519 0 (1,399) (780) 208 (158) 0 6,238 (a) Includes condensate and natural gas liquids. (b) See the Appendix for activity related to acquired companies. 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 27 US — gas reserves for the latest fiscal year bcf

Extensions and Improved Beginning discoveries recovery Revisions Production Purchases Sales Other Ending Amplify Energy Corp. 378 1 0 (77) (27) 0 0 0 275 Antero Resources Corporation 11,494 799 0 (1,280) (875) 0 (113) 0 10,025 Apache Corporation 1,061 61 0 215 (206) 0 (2) 0 1,129 Berry Corporation 45 0 0 (12) (7) 0 0 0 26 BHP Group 112 0 0 14 (11) 0 0 0 115 Bonanza Creek Energy, Inc. 212 32 0 0 (14) 5 0 0 235 BP p.l.c. 8,457 1 545 580 (603) 0 (3,636) 0 5,344 Cabot Oil & Gas Corporation 12,903 1,974 0 (347) (858) 0 0 0 13,672 California Resources Corporation 654 24 0 (86) (62) 0 (3) 0 527 Callon Petroleum Company 757 44 0 (199) (41) 0 (20) 0 541 Centennial Resource Development, Inc. 502 74 0 (7) (41) 0 0 0 528 Chesapeake Energy Corporation 6,566 100 0 (2,326) (684) 0 (126) 0 3,530 Chevron Corporation 4,728 385 0 (509) (588) 1,548 (1,314) 0 4,250 Cimarex Energy Co. 1,532 107 0 (44) (233) 0 0 0 1,362 CNX Resources Corporation 7,938 2,189 0 (612) (481) 0 0 0 9,034

Comstock Resources, Inc. 5,341 366 0 307 (451) 0 0 0 5,563 ConocoPhillips 5,119 304 0 (1,046) (316) 74 (39) 0 4,096 Continental Resources, Inc. 5,154 296 0 (1,529) (307) 27 0 0 3,641 Denbury Resources Inc. 24 0 0 (6) (3) 0 0 0 15 Devon Energy Corporation 1,621 188 0 (90) (221) 19 (5) 0 1,512 Diamondback Energy, Inc. 1,119 316 0 300 (131) 4 (1) 0 1,607 Earthstone Energy Inc 108 1 0 9 (7) 0 0 0 111 EOG Resources, Inc. 5,035 1,078 0 (498) (441) 26 (157) 0 5,043 EQT Corporation 16,677 3,434 0 (782) (1,419) 1,209 (255) 0 18,864 Extraction Oil & Gas, Inc. 580 31 0 (164) (72) 0 (6) 0 369 Exxon Mobil Corporation1 19,239 433 0 (5,003) (1,093) 0 (35) 0 13,541 Gulfport Energy Corporation1 4,048 216 0 (1,564) (345) 0 (74) 0 2,281 Hess Corporation 700 78 0 (17) (103) 0 (5) 0 653

28 US oil and gas reserves, production and ESG benchmarking study Extensions and Improved Beginning discoveries recovery Revisions Production Purchases Sales Other Ending Laredo Petroleum, Inc. 675 11 0 34 (70) 7 0 0 657 Magnolia Oil & Gas Corporation1 197 40 0 8 (39) 2 0 0 208 Marathon Oil Corporation 1,278 45 0 7 (155) 0 (1) 0 1,174 Matador Resources Company 627 84 0 19 (70) 1 0 0 661 Montage Resources Corporation (b) 2,138 0 0 0 0 0 (2,138) 0 0 Murphy Oil Corporation 417 14 0 (76) (34) 0 (1) 0 320 National Fuel Gas Company 2,950 7 0 (88) (227) 684 0 0 3,326 Noble Energy, Inc. (b) 2,019 0 0 0 0 0 (2,019) 0 0 Oasis Petroleum Inc. 514 9 0 (99) (47) 0 0 0 377 Occidental Petroleum Corporation 4,128 38 183 (823) (561) 4 (523) 0 2,446 Ovintiv Inc.1 2,441 392 0 (323) (194) 47 (95) 0 2,268 PDC Energy, Inc. 1,558 3 0 (272) (166) 796 (18) 0 1,901 Penn Virginia Corporation 90 15 0 (27) (5) 0 0 0 73 Pioneer Natural Resources Company 1,500 267 0 342 (167) 2 (4) 0 1,940 QEP Resources, Inc. 373 0 0 28 (33) 0 0 0 368 Range Resources Corporation 12,115 1,007 0 (790) (575) 0 (609) 0 11,148 Royal Dutch Shell plc 1,869 66 0 (319) (272) 0 (542) 0 802 SilverBow Resources 1,158 23 0 (194) (51) 12 0 0 948 SM Energy Company 1,223 188 0 (247) (104) 1 (9) 0 1,052 Southwestern Energy Company 8,630 714 0 (1,380) (694) 1,911 0 0 9,181 Talos Energy Inc 156 4 0 (56) (29) 182 0 0 257 Viper Energy Partners LP 96 24 0 11 (11) 1 0 0 121 W&T Offshore, Inc. 571 0 0 32 (48) 15 0 0 570 Whiting Petroleum Corporation 740 17 0 (409) (44) 0 (1) 0 303 All companies 169,567 15,500 728 (19,395) (13,236) 6,577 (11,751) 0 147,990

Integrateds 34,293 885 545 (5,251) (2,556) 1,548 (5,527) 0 23,937 Large independents 96,972 12,886 183 (8,785) (7,122) 3,304 (3,820) 0 93,618

Independents 38,302 1,729 0 (5,359) (3,558) 1,725 (2,404) 0 30,435 (a) See the appendix for activity related to acquired companies. 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 29 US — performance measures (three-year averages) Costs in US$ per BOE; production replacement rates in %

Production replacement rates Oil Gas

All F&D, including F&D, excluding All F&D, including F&D, excluding Production PRAC sources revisions revisions sources revisions revisions costs Amplify Energy Corp. 2.17 (90%) (315%) 14% (59%) (235%) 5% 16.21

Antero Resources Corporation 0.00 237% 237% 193% 55% 60% 230% 11.68 Apache Corporation 9.06 24% 57% 135% 21% 73% 155% 10.60 Berry Corporation 11.46 58% 55% 132% (786%) (746%) 24% 23.61 BHP Group 0.00 3% 119% 34% (522%) (18%) 52% 10.89 Bonanza Creek Energy, Inc. 5.29 117% 146% 261% 325% 367% 243% 7.18 BP p.l.c. 9.62 120% 105% 81% (31%) 40% 96% 9.48 Cabot Oil & Gas Corporation 0.00 (7,371%) 75% 0% 276% 278% 258% 4.68 California Resources Corporation 8.68 (45%) (81%) 79% 15% (29%) 44% 20.44 Callon Petroleum Company 1.08 639% 153% 286% 577% 48% 303% 8.92 Centennial Resource 7.55 242% 237% 315% 275% 272% 287% 9.37 Development, Inc.

Chesapeake Energy Corporation 14.25 (71%) (88%) 92% (126%) (20%) 96% 10.37 Chevron Corporation 4.75 155% 100% 160% 34% 15% 214% 12.27 Cimarex Energy Co. 11.22 108% 95% 136% 65% 49% 101% 7.06 CNX Resources Corporation 1.71 155% 258% 251% 231% 259% 316% 5.83 Comstock Resources, Inc. 3.95 (232%) (50%) 101% 621% 246% 197% 3.50 ConocoPhillips 7.80 86% 51% 142% 21% 6% 138% 14.94 Continental Resources, Inc. 5.31 25% 22% 238% 45% 37% 374% 7.91 Denbury Resources Inc. 0.00 (86%) (75%) 5% (165%) (148%) (2%) 26.38 Devon Energy Corporation 0.16 89% 128% 148% (80%) 73% 108% 10.01 Diamondback Energy, Inc. 11.26 451% 283% 345% 603% 359% 300% 7.48 Earthstone Energy Inc 6.08 61% 53% 158% 229% 257% 150% 7.61 EOG Resources, Inc. 15.49 186% 185% 237% 196% 200% 268% 9.62 EQT Corporation 3.82 (168%) (70%) 51% 77% 86% 238% 7.55 Extraction Oil & Gas, Inc. 5.21 (68%) (63%) 140% (40%) (34%) 146% 7.26 Exxon Mobil Corporation1 0.69 (56%) (59%) 274% (76%) (63%) 192% 15.49 Gulfport Energy Corporation1 0.00 (100%) (88%) 161% (104%) (90%) 147% 5.90 Hess Corporation 10.75 80% 93% 191% 12% 70% 162% 9.93

30 US oil and gas reserves, production and ESG benchmarking study Production replacement rates Oil Gas

All F&D, including F&D, excluding All F&D, including F&D, excluding Production PRAC sources revisions revisions sources revisions revisions costs Laredo Petroleum, Inc. 3.41 138% 77% 106% 239% 208% 107% 5.48 Magnolia Oil & Gas 63.40 110% 67% 128% 156% 100% 112% 6.98 Corporation1 Marathon Oil Corporation 16.29 38% 36% 62% 68% 71% 77% 11.46 Matador Resources Company 21.05 278% 278% 249% 250% 255% 207% 8.16 Murphy Oil Corporation 8.73 108% (49%) 126% 218% 86% 120% 13.85 National Fuel Gas Company 2.20 (13%) 54% 47% 330% 225% 207% 5.71 Oasis Petroleum Inc. 7.91 (71%) (88%) 137% (1%) (15%) 98% 13.75 Occidental Petroleum 14.61 129% 2% 89% 223% (25%) 100% 12.57 Corporation

Ovintiv Inc.1 0.07 451% 226% 351% 520% 185% 255% 8.10 PDC Energy, Inc. 5.16 259% 64% 22% 302% 61% 20% 5.23 Penn Virginia Corporation 6.35 306% 254% 582% 250% 250% 601% 9.22 Pioneer Natural Resources 2.17 183% 206% 203% 140% 317% 169% 8.44 Company QEP Resources, Inc. 2.76 (4%) 25% 135% (595%) 202% 47% 10.16 Range Resources Corporation 0.00 240% 311% 177% 152% 215% 249% 9.50 Royal Dutch Shell plc 7.54 64% 70% 59% (67%) (1%) 46% 12.64 SilverBow Resources 3.42 50% 73% 405% 161% 164% 423% 4.60 SM Energy Company 1.64 70% 107% 275% 28% 44% 258% 9.95 Southwestern Energy 0.00 (70%) (159%) 99% 8% 80% 117% 6.04 Company Talos Energy Inc 10.31 194% 10% 47% 273% (102%) 46% 12.94 Viper Energy Partners LP 24.56 346% 218% 267% 432% 268% 211% 2.46 W&T Offshore, Inc. 2.64 131% 41% 9% 410% 53% 7% 13.17 Whiting Petroleum 4.11 (154%) (170%) 64% (284%) (297%) 80% 10.64 Corporation All companies 7.41 112% 79% 160% 72% 81% 184% 10.41

Integrateds 7.39 78% 57% 149% (42%) (12%) 149% 12.63 Large independents 7.90 169% 122% 192% 137% 136% 228% 9.49 Independents 6.67 62% 39% 124% 35% 48% 129% 9.94 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 31 US — rankings and accounting method

Rankings for the latest fiscal year All sources Oil reserves Gas reserves Total capital Accounting expenditures Beginning Ending Beginning Ending method Amplify Energy Corp. 50 39 43 40 41 Successful efforts Antero Resources Corporation 21 7 7 5 5 Successful efforts Apache Corporation 33 18 19 28 25 Successful efforts Berry Corporation 43 36 37 49 49 Successful efforts BHP Group 15 27 24 45 46 Successful efforts Bonanza Creek Energy, Inc. 46 40 41 42 43 Successful efforts BP p.l.c. 5 4 5 7 9 Successful efforts Cabot Oil & Gas Corporation 25 50 50 3 2 Successful efforts California Resources Corporation 48 17 21 33 35 Successful efforts Callon Petroleum Company 27 22 20 29 33 Successful efforts Centennial Resource Development, Inc. 35 30 28 38 34 Successful efforts Chesapeake Energy Corporation 19 20 27 9 14 Successful efforts Chevron Corporation 1 3 1 14 11 Successful efforts Cimarex Energy Co. 26 23 22 22 23 Full cost CNX Resources Corporation 30 41 38 8 7 Successful efforts Comstock Resources, Inc. 29 49 49 10 8 Successful efforts ConocoPhillips 6 5 4 12 12 Successful efforts Continental Resources, Inc. 13 14 16 11 13 Successful efforts Denbury Resources Inc. 42 29 33 50 50 Full cost Devon Energy Corporation 16 19 15 20 22 Successful efforts Diamondback Energy, Inc. 9 11 8 27 21 Full cost Earthstone Energy Inc 45 44 44 46 47 Successful efforts EOG Resources, Inc. 4 2 2 13 10 Successful efforts EQT Corporation 8 35 32 2 1 Successful efforts Extraction Oil & Gas, Inc. 40 33 39 35 37 Successful efforts Exxon Mobil Corporation1 2 1 3 1 3 Successful efforts

32 US oil and gas reserves, production and ESG benchmarking study Rankings for the latest fiscal year

All sources Oil reserves Gas reserves Total capital Accounting expenditures Beginning Ending Beginning Ending method Gulfport Energy Corporation1 36 42 45 16 17 Full cost Hess Corporation 20 16 14 31 31 Successful efforts Laredo Petroleum, Inc. 32 32 30 32 30 Successful efforts Magnolia Oil & Gas Corporation1 38 43 42 43 44 Successful efforts Marathon Oil Corporation 14 13 13 24 24 Successful efforts Matador Resources Company 28 34 31 34 29 Successful efforts Murphy Oil Corporation 23 21 25 39 39 Successful efforts National Fuel Gas Company 22 48 48 17 15 Full cost Oasis Petroleum Inc. 39 31 35 37 36 Successful efforts Occidental Petroleum Corporation 11 6 6 15 16 Successful efforts Ovintiv Inc.1 12 8 9 18 18 Full cost PDC Energy, Inc. 7 25 18 21 20 Successful efforts Penn Virginia Corporation 41 37 36 48 48 Full cost Pioneer Natural Resources Company 10 12 11 23 19 Successful efforts QEP Resources, Inc. 34 26 23 41 38 Successful efforts Range Resources Corporation 31 9 10 4 4 Successful efforts Royal Dutch Shell plc 3 10 12 19 28 Successful efforts SilverBow Resources 44 47 47 26 27 Successful efforts SM Energy Company 24 28 26 25 26 Successful efforts Southwestern Energy Company 18 15 17 6 6 Full cost Talos Energy Inc 17 38 34 44 42 Full cost Viper Energy Partners LP 47 45 40 47 45 Full cost W&T Offshore, Inc. 49 46 46 36 32 Full cost Whiting Petroleum Corporation 37 24 29 30 40 Successful efforts 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 33 US — ESG reporting (a)

Does the company Does reporting include publish a sustainability Does reporting align to a third-party assurance or ESG report? specific framework? (b) over ESG metrics? Amplify Energy Corp. No No No Antero Resources Corporation Yes No Yes Apache Corporation Yes Yes No Berry Corporation Yes No No BHP Group Yes Yes Yes Bonanza Creek Energy, Inc. No No No BP p.l.c. Yes Yes Yes Cabot Oil & Gas Corporation Yes Yes No California Resources Corporation Yes Yes No Callon Petroleum Company Yes Yes No Centennial Resource Development, Inc. Yes Yes No Chesapeake Energy Corporation Yes Yes No Chevron Corporation Yes Yes Yes Cimarex Energy Co. No No No CNX Resources Corporation Yes Yes No Comstock Resources, Inc. No Yes No ConocoPhillips Yes Yes Yes Continental Resources, Inc. Yes No No Denbury Resources Inc. Yes Yes No Devon Energy Corporation Yes Yes Yes Diamondback Energy, Inc. Yes No No Earthstone Energy Inc No No No EOG Resources, Inc. Yes Yes No EQT Corporation Yes Yes No Extraction Oil & Gas, Inc. Yes No No Exxon Mobil Corporation1 Yes Yes No Gulfport Energy Corporation1 Yes Yes No Hess Corporation Yes Yes Yes

34 US oil and gas reserves, production and ESG benchmarking study Does the company Does reporting include publish a sustainability Does reporting align to a third-party assurance or ESG report? specific framework? (b) over ESG metrics? Laredo Petroleum, Inc. Yes Yes No Magnolia Oil & Gas Corporation1 No No No Marathon Oil Corporation Yes Yes No Matador Resources Company No No No Murphy Oil Corporation Yes Yes No National Fuel Gas Company Yes Yes No Oasis Petroleum Inc. No No No Occidental Petroleum Corporation No Yes No Ovintiv Inc.1 Yes Yes No PDC Energy, Inc. Yes Yes No Penn Virginia Corporation No No No Pioneer Natural Resources Company Yes Yes No Range Resources Corporation Yes Yes No Royal Dutch Shell plc Yes Yes Yes SilverBow Resources No No No SM Energy Company Yes Yes No Southwestern Energy Company Yes Yes No Talos Energy Inc Yes No No Viper Energy Partners LP No No No W&T Offshore, Inc. Yes Yes No Whiting Petroleum Corporation Yes Yes No % of all companies 76% 67% 16%

Integrateds 100% 100% 75% Large independents 93% 79% 21% Independents 65% 58% 6% (a) This data includes the 49 of the 50 largest companies based on 2020 end-of-year oil and gas reserve estimates. This report excludes data for QEP Resources, Inc. as it was acquired by Diamondback Energy, Inc. in March 2021. The data presented here is based on a review of company sustainability and ESG reports, as well as a review of information included on company websites. (b) The frameworks included in this question were: GRI, SASB and the TCFD frameworks. 1 See company endnotes on page 39.

US oil and gas reserves, production and ESG benchmarking study 35 Peer groups

Integrateds Independents BP p.l.c. Amplify Energy Corp. Chevron Corporation Apache Corporation Exxon Mobil Corporation Berry Corporation Royal Dutch Shell plc BHP Group Bonanza Creek Energy, Inc. Large independents California Resources Corporation Antero Resources Corporation Callon Petroleum Company Cabot Oil & Gas Corporation Centennial Resource Development, Inc. CNX Resources Corporation Chesapeake Energy Corporation ConocoPhillips Cimarex Energy Co. Continental Resources, Inc. Comstock Resources, Inc. Diamondback Energy, Inc. Denbury Resources Inc. EOG Resources, Inc. Devon Energy Corporation EQT Corporation Earthstone Energy Inc Hess Corporation Extraction Oil & Gas, Inc. Occidental Petroleum Corporation Gulfport Energy Corporation Ovintiv Inc. Laredo Petroleum, Inc. Pioneer Natural Resources Company Magnolia Oil & Gas Corporation Range Resources Corporation Marathon Oil Corporation Southwestern Energy Company Matador Resources Company Murphy Oil Corporation National Fuel Gas Company Oasis Petroleum Inc. PDC Energy, Inc. Penn Virginia Corporation QEP Resources, Inc. SilverBow Resources SM Energy Company Talos Energy Inc Viper Energy Partners LP W&T Offshore, Inc. Whiting Petroleum Corporation

36 US oil and gas reserves, production and ESG benchmarking study Appendix

Due to the significance of the operations of companies that Brazos Valley Longhorn, L.L.C. is the successor company were acquired during the study period, capital expenditures, to WildHorse Resource Development Company, which was revenues and results of operations, oil reserves and gas acquired by Chesapeake Energy Corporation in February reserves schedules for the 2016 through 2019 period were 2019. Brazos Valley Longhorn, L.L.C.’s and WildHorse updated to include activities prior to acquisition as described Resource Development Company’s 2016 through 2018 below. This provides a more meaningful comparison results have been included in the above-mentioned schedules throughout the study period. as applicable. The capital expenditures, revenues and results of operations, oil reserves and gas reserves reported by In January 2021, Concho Resources Inc. was acquired Chesapeake Energy Corporation for 2019 include activity by ConocoPhillips; Parsley Energy, Inc. was acquired by related to the operations acquired from WildHorse Resource Pioneer Natural Resources Company; and WPX Energy, Development Company and succeeded by Brazos Valley Inc. and Devon Energy Corporation merged with Devon Longhorn, L.L.C. Brazos Valley Longhorn, L.L.C.’s end-of- Energy Corporation remaining as the accounting acquiror. year 2018 oil reserves (343 million barrels) and gas reserves As Concho Resources Inc, Parsley Energy, Inc. and WPX (378 bcf) have been included in 2019 beginning-of-year Energy, Inc. did not file annual reports for 2020, the activity reserves with an equal volume included as sales in 2019 to related to these companies has been excluded from the reflect the Chesapeake Energy Corporation transaction. above-mentioned schedules to provide a more meaningful comparison throughout the study period. In August 2019, Anadarko Petroleum Corporation was acquired by Occidental Petroleum Corporation. Anadarko In October 2020, Noble Energy, Inc., was acquired by Petroleum Corporation’s 2016 through 2018 results Chevron Corporation. Noble Energy, Inc.’s 2016 through have been included in the above-mentioned schedules as 2019 results have been included in the above-mentioned applicable. The capital expenditures, revenues and results schedules as applicable. The capital expenditures, revenues of operations, oil reserves and gas reserves reported by and results of operations, oil reserves and gas reserves Occidental Petroleum Corporation for 2019 include activity reported by Chevron Corporation for 2020 include activity related to the operations acquired from Anadarko Petroleum related to the operations acquired from Noble Energy, Inc. Corporation. Anadarko Petroleum Corporation’s end-of-year Noble Energy, Inc.’s end-of-year 2019 oil reserves (640 2018 oil reserves (787 million barrels) and gas reserves million barrels) and gas reserves (2,019 bcf) have been (3,198 bcf) have been included in 2019 beginning-of-year included in 2020 beginning-of-year reserves with an equal reserves with an equal volume included as sales in 2019 to volume included as sales in 2020 to reflect the Chevron reflect the Occidental Petroleum Corporation transaction. Corporation transaction. In December 2019, Carrizo Oil & Gas, Inc. was acquired by In November 2020, Montage Resources Corporation merged Callon Petroleum Company. Carrizo Oil & Gas, Inc.’s 2016 into Southwestern Energy Company. Montage Resource through 2018 results have been included in the above- Corporation’s 2016 through 2019 results have been included mentioned schedules as applicable. The capital expenditures, in the above-mentioned schedules as applicable (see below revenues and results of operations, oil reserves and gas for information related to Montage Resources Corporation’s reserves reported by Callon Petroleum Company for 2019 2018 acquisition of Eclipse Resources Corporation). The include activity related to the operations acquired from capital expenditures, revenues and results of operations, oil Carrizo Oil & Gas, Inc. Carrizo Oil & Gas, Inc.’s end-of-year reserves and gas reserves reported by Southwestern Energy 2018 oil reserves (249 million barrels) and gas reserves Company for 2020 include activity related to the operations (483 bcf) have been included in 2019 beginning-of-year merged from Montage Resources Corporation. Montage reserves with an equal volume included as sales in 2019 to Resources Corporation’s end-of-year 2019 oil reserves reflect the Callon Petroleum Company transaction. (99 million barrels) and gas reserves (2,138 bcf) have been included in 2020 beginning-of-year reserves with an equal In January 2018, Eclipse Resources Corporation was volume included as sales in 2020 to reflect the Southwestern acquired by Montage Resources Corporation, Inc. Eclipse Energy Company transaction. Resources Corporation’s 2016 and 2017 results have been

US oil and gas reserves, production and ESG benchmarking study 37 included in the above-mentioned schedules as applicable. beginning-of-year reserves with an equal volume included as The capital expenditures, revenues and results of operations, sales in 2017 to reflect the acquisition. oil reserves and gas reserves reported by Montage Resources In September 2016, Memorial Resource Development Corporation for 2018 include activity related to the Corp. was acquired by Range Resources Corporation. The operations acquired from Eclipse Resources Corporation. capital expenditures, revenues and results of operations, Eclipse Resources Corporation’s end-of-year 2017 oil oil reserves and gas reserves reported by Range Resources reserves (62 million barrels) and gas reserves (1,090 bcf) for 2016 include activity related to the operations acquired have been included in 2018 beginning-of-year reserves with from Memorial Resource Development. Memorial Resource an equal volume included as sales in 2018 to reflect the Development’s end-of-year 2015 oil reserves (201.7 million Montage Resources Corporation transaction. barrels) and gas reserves (1,435.3 bcf) have been included In November 2018, Energen Corporation was acquired by in 2016 beginning-of-year reserves with an equal volume Diamondback Energy, Inc. Energen Corporation’s 2016 and included as sales in 2016 to reflect the Range Resources 2017 results have been included in the above-mentioned transaction. schedules as applicable. The capital expenditures, revenues For purposes of the peer group analysis, Brazos Valley and results of operations, oil reserves and gas reserves Longhorn, L.L.C., Carrizo Oil & Gas, Inc. and Montage reported by Diamondback Energy, Inc. for 2018 include Resources Corporation are independents; Anadarko activity related to the operations acquired from Energen Petroleum Corporation and Noble Energy, Inc. are large Corporation. Energen Corporation’s end-of-year 2017 oil independents. reserves (348 million barrels) and gas reserves (576 bcf) have been included in 2018 beginning-of-year reserves Performance measures with an equal volume included as sales in 2018 to reflect The performance measures presented herein were calculated the Diamondback Energy, Inc. transaction. based on the companies’ oil and gas reserve disclosure In 2018, Encana Corporation, which later became Ovintiv information. The EY methodology for calculating the Inc. (see company endnotes), announced its acquisition performance measures is defined below: of Newfield Exploration Company. The transaction closed • Plowback percentage represents total capital in February 2019, and Newfield Exploration Company did expenditures as a percentage of netback (revenues less not file an annual report for 2018. Newfield Exploration production costs). Company’s 2016 and 2017 results have been included in the above-mentioned schedules as applicable. The • PRACs are calculated as proved property acquisition costs capital expenditures, revenues and results of operations, divided by proved reserves purchased. oil reserves and gas reserves reported by Ovintiv Inc. • Production replacement rate (all sources) is calculated as Corporation for 2019 include activity related to the the sum of extensions and discoveries, improved recovery, operations acquired from Newfield Exploration Company. revisions, purchases and sales of proved reserves divided Newfield Exploration Company’s end-of-year 2017 oil by production. reserves (394 million barrels) and gas reserves (1,704 bcf) have been included in 2018 beginning-of-year reserves with • Production replacement rate (F&D, including revisions) an equal volume included as sales in 2018 to reflect the is calculated as the sum of extensions and discoveries, Encana Corporation transaction. improved recovery and revisions of proved reserves divided by production. In November 2017, Rice Energy Inc. was acquired by EQT Corporation. Rice Energy Inc.’s 2016 results have been • Production replacement rate (F&D, excluding revisions) included in the above-mentioned schedules as applicable. is calculated as the sum of extensions and discoveries and The capital expenditures, revenues and results of operations, improved recovery of proved reserves divided oil reserves and gas reserves reported by EQT Corporation by production. for 2017 include activity related to the operations acquired • Production costs are calculated as production costs, from Rice Energy Inc. Rice Energy Inc.’s end-of-year including production taxes, and transportation costs gas reserves (4,005.3 bcf) have been included in 2017 divided by production.

38 US oil and gas reserves, production and ESG benchmarking study Many individual companies calculate and report their own Totals presented may not add due to rounding. All amounts performance measures, and companies may use different are reported in US dollars. methods that produce results different from those shown in Natural gas prices are quoted on an MMBtu (one million this study. British Thermal Units) basis, while gas reserves in this Data limitations study are presented in bcf (billion cubic feet) and tcf Users of this study should keep in mind the following (trillion cubic feet). limitations on the data presented: Certain amounts in this study are presented on a per BOE • This study excludes government-owned and privately- (barrel of oil equivalent) basis. Natural gas volumes are owned companies and smaller public companies. converted to barrels at a ratio of 6,000 cubic feet (mcf) to one barrel of oil. This ratio is generally viewed as • Individual companies did not prepare or review the being reflective of an approximate thermal equivalence compiled data presented in this report. between the two commodities, though some individual • Oil and gas companies that follow US generally accepted companies may use a different ratio for their internal accounting principles (GAAP) are allowed to select either performance metrics. successful efforts accounting or full cost accounting for Company endnotes their oil and gas activities. Some companies included in this study follow US GAAP, while others follow International Gulfport Energy Corporation filings include only acquisition Financial Reporting Standards (IFRS) as adopted by their costs without further breakdown between proved and applicable country. These variations in standards can result unproved properties. For our study purposes, Gulfport in different results for some companies. Energy Corporation acquisitions were included in the proved properties acquired category. • Data for all companies may not be comparable because of differing interpretations or applications of reporting Amounts presented for Exxon Mobil Corporation include requirements. investments accounted for by the equity method. Oil rollforwards and computations based on oil volumes exclude • Oil and gas reserve estimates are imprecise and are revised NGLs, which are only reported on a worldwide basis. as additional information about reserves becomes known. Magnolia Oil & Gas Corporation’s filings include exploration Other and development capital expenditures without further The data included herein for the 2016–2018 study periods breakdown between exploration and development. For our are obtained from Evaluate Energy, and the individual study purposes, Magnolia Oil & Gas Corporation’s exploration companies’ published annual reports and the data included and development capital expenditures were reflected as herein for the 2019 and 2020 study periods are obtained development costs. from the individual companies’ published annual reports. Ovintiv Inc. is the successor to Encana Corporation as a The studied companies generally were determined based result of Encana Corporation’s corporate reorganization in on data available as of March 15, 2021. The 2016–2018 January 2020. Ovintiv Inc. filed an annual report for 2019, data includes each year’s original disclosures made by which included the operations previously owned by Encana the companies. Restatements and other adjustments Corporation. For consistency, results for prior periods include made to capital expenditures or revenues and results of the results of Encana Corporation. operations data in subsequent years generally have not been incorporated herein. The 2019 and 2020 data are generally based on companies’ 2020 annual report. Unless otherwise indicated, restatements and other adjustments made to oil and gas reserve data are included in the “Other” component of the reserve tables, but these amounts are not included in the performance measure calculations.

US oil and gas reserves, production and ESG benchmarking study 39 Contacts

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