Rockcliff Energy 2022 Sustainability Report

SUSTAINABILITY REPORT 2022

OUR MISSION To SAFELY produce

MESSAGE FROM THE CEO As Rockcliff continues to lead the way in the development of clean-burning,

certified responsibly

affordable natural gas, I am especially proud to share our progress in advancing

sourced natural gas in a

the company’s environmental, social and governance (ESG) goals in this

manner that minimizes the

Sustainability Report. Our leadership and employees remain engaged and focused on applying innovative solutions and new technologies that will continue

environmental footprint of

to reduce our environmental footprint, improve our performance and give back

our operations; provides

to the communities that we call home.

rewarding jobs for our

We take pride in being a responsible supplier of low-cost, reliable and

employees; encourages

sustainable energy for the world. As we look back on Russia’s unprovoked

partnership with the

invasion of Ukraine, resulting in shortages of energy supply and severe impacts on global stability, we recognize

communities in which we

that our role in the world’s economy is more important than ever. In 2022, the United States supplied around 40

operate; and rewards our

percent of Europe’s natural gas imports, or 56 billion cubic meters of liquified natural gas, which resulted in Russia’s

shareholders.

share of the European market falling from 40 percent to 10 percent*. To that end, Rockcliff remains committed to continuing to be part of the energy solution, providing a much needed supply of responsibly sourced energy in the face of these shortages.

We believe the world will continue to demand safe, affordable, reliable, and increasingly clean energy in the years ahead and that natural gas will remain an essential source of long-term global energy supply, while continuing to have an important role in the energy transition, but being a champion of natural gas is only one component of Rockcliff’s ESG commitment. Our ultimate success is dependent upon the success of our stakeholders – our employees, our investors, and the communities where we work. We strive to be good stewards, operating safely and efficiently with minimal impact to the environment, while continuing to grow and promote a secure energy future for Americans and the world.

Our ESG programs have and will continue to evolve over time and these programs have my full support as well as the support of the entire leadership team. We appreciate your interest in Rockliff and are excited to showcase some of the ways that we are committed to a sustainable future.

Alan Smith Rockcliff Co-founder, President and Chief Executive Officer 2

*Forbes 4/17/2023

ROCKCLIFF ENERGY: EXCEPTIONAL PEOPLE, EXTRAORDINARY RESULTS Rockcliff is the largest dry gas producer in the state of Texas. In fact, Rockcliff produces approximately 1.3% of all natural gas in the United States. Our core operating area is the prolific and highly economic Haynesville Shale region of East Texas, strategically located with access to multiple Gulf Coast markets.

Over the years, our team has built nine companies across various basins, commodities, and economic cycles, all with outstanding project-level and corporate-level returns to our investors. As a safe, efficient and innovative operator, our success is driven by exceptional people who utilize best-in-class technologies to consistently deliver extraordinary results.

This has earned us the respect of our industry partners, service providers, landowners, investors, regulatory agencies and the communities in which we operate.

Founded:

2015

Net Haynesville Acres:

>189K

Gross Production:

>1.3 Bcf/d

Wells:

>1,000

Employees:

152

OUR DEDICATION TO TRANSPARENCY AND ESG REPORTING To accelerate the integration and documentation of ESG practices within our business strategy, Rockcliff formed an ESG Committee in 2021. The committee is comprised of senior leadership and oversees the development of Rockcliff’s sustainability strategy, provides direction on key ESG topics, analyzes ESG key performance indicators, and helps guide our sustainability disclosure and engagement.

The ESG Committee supports the Chief Sustainability Officer in developing and implementing our sustainability strategy and programs. These contributors are instrumental in embedding a culture of sustainability throughout our business that will enable us to meet our objectives.

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ROCKCLIFF ESG COMMITTEE

ALAN SMITH

BOYD HEATH

Alan Smith is currently CoFounder, President and Chief Executive Officer of Rockcliff Energy, LLC. Mr. Smith cofounded Rockcliff Energy in January of 2015 after previously serving as the Chief Executive Officer of Quantum Resources, a direct investment private equity fund, and QR Energy, LP, a publicly traded MLP. Mr. Smith is presently the Chairman of the Board and serves on the Executive Committee of the Texas Oil and Gas Association (TXOGA) and is on the board and serves on the Executive Committee of the US Oil and Gas Association (USOGA). Alan earned a B.S. in Petroleum Engineering from Texas Tech University.

Prior to Co-Founding Rockcliff Energy LLC, Boyd served as the Chief Financial Officer of Quantum Resources Management LLC (“QRM”), a direct investment private equity fund focused on the energy sector. Boyd joined QRM from Network International, Inc. (“NI”), the leading global online marketplace for energy equipment, where he served as Chairman & CEO until the successful sale of the company. Prior to NI, Boyd was a Vice President with EnCap Investments, a provider of venture and growth capital to the energy sector. Boyd began his career with JP Morgan in their energy practice. Boyd earned his Bachelor of Business Administration from The University of Texas.

Co-founder, President and Chief Executive Officer

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Co-founder and Chief Financial Officer

GREG MCCAIN

TED WURFEL

Greg most recently served as Senior Manager, Commercial for BHP Billiton Petroleum, where he managed onshore acquisition and divestiture activities. Prior to that Greg was General Manager of the Haynesville and Fayetteville for BHP, where he was responsible for the business unit P&L, managing capital budgets of $500 million to $750 million and over 400 office and field personnel. Previously, Greg worked with Petrohawk where his two primary roles were Vice President Resource Play Development Haynesville and Vice President Resource Play Development Fayetteville.

Prior to Petrohawk, Greg served as Production Engineer for JW Operating Company, Operations Engineer for Marathon Oil Company, and Reservoir Engineer for Enron Oil and Gas (now known as EOG Resources).

Greg has a BS in Petroleum Engineering from Texas A&M University, and is a registered Professional Engineer.

Ted Wurfel most recently served as the VP of HSE and Sustainability at Indigo Minerals.

He also worked on an emissions Quantification, Monitoring, Recordkeeping, and Verification of Methane Emissions project with Cheniere Energy to help show that clean natural gas produced in America competes favorably on the world stage.

Before Indigo, Mr. Wurfel had senior HSE roles at Talisman and Chief, both in the Eagleford and the Marcellus shales. Mr. Wurfel has also worked for KN Energy, El Paso Energy, and Tenneco Energy. Mr. Wurfel is a Professional Engineer, has his MBA from the Quantic School of Business and Technology, has a BS in Engineering from the Colorado School of Mines, and is a registered Professional Engineer.

Chief Operating Officer

Chief Sustainability Officer

NICK KOCH

Senior Vice President of Operations Nick previously served as Senior Vice President, Operations at Halcon Resources from 2012 through 2015 and was responsible for all aspects of development in the East Texas Eagle Ford along with several noncore properties. Mr. Koch served as Operations Manager, Permian PU at BHP Billiton in 2012 and served as Vice President, Resource Development at Petrohawk Energy Corporation from 2010 until its sale to BHP Billiton in 2011. Nick graduated from South Dakota School of Mines and Technology with a Bachelor of Science degree in Mechanical Engineering and is a registered Petroleum Engineer.

GRI OIL AND GAS SECTOR STANDARD This report is organized using the GRI Oil and Gas Sector Standard, a global best practice for impact reporting, to help deliver the highest level of transparency for organizational impacts on the economy, the environment, and people. At Rockcliff, we use these standards as a benchmark to measure our ESG programs and results.

GRI TOPIC 11.1 GHG EMISSIONS

GRI TOPIC 11.6 WATER AND EFFLUENTS

Page 6

Page 10

GRI TOPIC 11.11 NON-DISCRIMINATION AND EQUAL OPPORTUNITY Page 13

GRI TOPIC 11.2 CLIMATE ADAPTATION, RESILIENCE, AND TRANSITION

GRI TOPIC 11.7 CLOSURE AND REHABILITATION Page 11

Page 14

Page 8

GRI TOPIC 11.3 AIR EMISSIONS Page 9

GRI TOPIC 11.12 FORCED LABOR AND MODERN SLAVERY

GRI TOPIC 11.8 ASSET INTEGRITY AND CRITICAL INCIDENT MANAGEMENT Page 11

GRI TOPIC 11.13 FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING Page 14

GRI TOPIC 11.4 BIODIVERSITY Page 9

GRI TOPIC 11.5 WASTE Page 10

GRI TOPIC 11.9 OCCUPATIONAL HEALTH AND SAFETY

GRI TOPIC 11.14 ECONOMIC IMPACTS

Page 12

Pages 14–15

GRI TOPIC 11.10 EMPLOYMENT PRACTICES

GRI TOPIC 11.15 LOCAL COMMUNITIES Page 15

Page 13 5

GRI TOPIC 11.1

GHG EMISSIONS

ENVIRONMENTAL STEWARDSHIP Environmental stewardship is an important part of our project planning and day-to-day business. In the natural gas exploration and production business, many common practices can lead to the generation of greenhouse gas emissions, including combustion of diesel and natural gas, venting and flaring natural gas, equipment leaks, natural gas-driven pneumatic devices, and electricity usage. Each year Rockcliff tracks and reports these emissions to the United States Environmental Protection Agency (EPA) under the Greenhouse Gas Reporting Program. Our emissions fall well within and often below industry norms and government regulations.

In addition to being certified as Responsibly Sourced Gas, Rockcliff wells have also been certified as “Low Methane Verified Attribute” by TrustWell, an independent 3rd party auditor. In order to achieve this certification, a well’s methane intensity needs to be below 0.2%. Rockcliff’s methane intensity is significantly below the level required to achieve a “Low Methane Verified Attribute” certification.

Rockcliff Historical GHG Intensity (mtCO2e/MBOE)

13.5 2019

GRI TOPIC 11.1

Rockcliff Historical Methane Intensity (% of production)

~25% Average Annual Intensity Reductions Since 2019 9.5 2020

6.8 2021

0.221% 5.5

2022

2019

~30% Average Annual Intensity Reductions Since 2019 0.128% 2020

0.078% 2021

0.075% 2022

GHG EMISSIONS

INNOVATIVE LEADER IN EMISSIONS MONITORING Rockcliff strongly believes that if you want to understand your methane emissions, then you should monitor them. Rockcliff has done this through Canary X, which is specifically designed to track methane emissions at the high-fidelity rate of 0.4 ppm/sec CH4. Leveraging this industry-leading sensitivity, measurement frequency, and accuracy, Canary X allows for the localization and quantification of emission sources using Tunable Diode Laser Absorption Spectroscopy (TDLAS) technology. TDLAS sensors are less sensitive to variations in environmental conditions (i.e., temperature and humidity) than other sensor options, and are less prone to interference from other gaseous compounds present in ambient air. We have Canary X continuous emission monitors on our Haynesville wells, and are committed to continue to do so moving forward. We monitor, in real time, over 95% of our produced gas, which is over 1 billion cubic feet of gas per day. Monitoring these emissions allows our Operations department to see the impact of their work on our methane emissions. We are alerted to any unusual emissions enabling us to evaluate and remediate them immediately. These continuous emissions monitors have been a game-changer for Rockcliff.

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In addition to our Canary X continuous methane emissions monitors, we continue to maintain our in-house Leak Detection and Repair (LDAR) program which utilizes a Forward Looking InfraRed (FLIR) optical gas imaging camera allowing us to pinpoint the exact location of any leak. In 2022, we surveyed over 289,000 components, finding 193 leaks (which were quickly repaired) resulting in a leak ratio of less than 0.001. This year, we also added a new tool to our arsenal, the Distran Ultra Pro ultrasound camera allowing us to not only pinpoint gas leaks of any type, but also to estimate the leak rate. The Distran also allows for more efficient and timely evaluations, enabling us to conduct more frequent inspections.

The Rockcliff team recently participated in a case study, partnering with Canary to test operational hypotheses, using data to find areas where simple changes can make a tangible impact on emissions. Until June 2022, Rockcliff, like many producers, used gas-driven pneumatics exclusively. But using gas-driven pneumatic devices results in small emissions every time the pneumatics are actuated. In the spirit of continuous improvement, the Rockcliff team performed a trial with compressed air-driven pneumatics to see if the change made a quantifiable impact on emissions.

Comparing June (when the swap was made) to July at one facility, the Rockcliff team saw a methane reduction of over 500 kg, with 215 kg of that reduction directly attributed to equipment retrofitted with compressed air pneumatics. Over the course of a year, that adds up to over 2,580 kg of methane that the Rockcliff team prevented from entering the atmosphere from a single location – that equates to 64.5 metric tons of CO2e, or the emissions from burning 72,215 pounds of coal.

Following the verifiable data and operationally successful pilot, which clearly showed that the project reduced emissions, the Rockcliff team began installing compressed air systems to actuate the pneumatics on all new facilities beginning April 2023.

RESPONSIBLY SOURCED GAS (RSG) – TRUSTWELL™

Rockcliff has always operated responsibly. In the changing and evolving marketplace, Rockcliff understands that to remain competitive our natural gas needs to be certified as “Responsibly Sourced Gas” (RSG). Rockcliff teamed up with TrustWell™ in 2021 to undergo an independent, third party, review of our operating practices.

The TrustWell™ process is a qualitative and quantitative audit performing a holistic operational review that provides defensible, dynamic scores at a facility level. This environmental risk assessment is compiled by evaluating over 600+ data points across 28 categories relevant to well construction, emergency management, emissions, and water use. The program combines a set of qualitative criteria which the operator needs to meet, and an independently verified quantification of methane emissions.

216

TrustWell verified wells

>1Bcf/d of monitered produced natural gas

~95%

received Project Canary Gold rating

67

CanaryX monitored sites

0.075%

LMVA (industry benchmark is 0.2%)

Rockcliff has received TrustWell™ certifications including the Low Methane Verified Attribute on 202 Haynesville wells. The Low Methane Verified Attribute is awarded to locations with methane intensity below 0.2%.

Additionally, Rockcliff earned a “Gold” rating on approximately 95% of our wells. Canary X sensors and Project Canary’s data reconciliation solutions allow operators to quantify the total site-level emissions, converting point sensor concentration levels to site-level mass values for emissions.

Rockcliff is committed to acquiring RSG certifications through the TrustWell™ process for all existing and future Rockcliff completed Haynesville wells. Additionally, Rockcliff has recently contracted with EarnDLT to help tokenize the RSG component of the natural gas to make it available to other end users in different parts of the world. Rockcliff is just beginning this process, and is excited to be involved in sharing the benefits of RSG throughout the world.

7

GRI TOPIC 11.2

CLIMATE ADAPTATION, RESILIENCE, AND TRANSITION

CONTINUOUS EMISSION REDUCTION INITIATIVES Environmental stewardship is an important part of our project planning and day-to-day business. We are continually working to reduce the impact of our operations on the environment and the communities in which we live and work. Rockcliff’s goal is to be a respected leader in environmental stewardship, focusing on clean, safe and efficient operations.

GHG emissions monitoring and reduction go hand-in-hand. Our proactive approach to emission reduction includes: • • • • • •

Emission-reducing completion practices, effectively eliminating venting and flaring 99.9% of Rockcliff’s freshwater, and 93% of our produced water is piped, eliminating over 225,000 truck trips and > 5,000 metric tons of CO2/year Participation in a pilot project to evaluate the conversion of pneumatic devices to air actuation, thereby eliminating the emissions associated with these devices Dual-fuel engines for drilling and completions activities, allowing us to maintain operational efficiencies while reducing our GHG emissions Multi-well pad development, minimizing environmental footprint The development of ESG targets directly tied to compensation

DUAL-FUEL ENGINES REDUCE EMISSIONS

All of our contracted drilling rigs and frac fleets use dual-fuel engines allowing them to use natural gas from our operations to supplement their fuel source. The dual-fuel engines reduce our diesel fuel consumption and directly reduce our emissions on-site. This also indirectly reduces the environmental impact associated with the refining and transportation of diesel fuel used for our operations.

Rockcliff focused on increasing the natural gas fuel usage in our frac fleets in 2022. A new field operating procedure was written to optimize the fuel gas system on the pump engines, and training was provided to the operators to maximize the amount of natural gas the engines could efficiently burn. The increase in efficiency of the process within our operations allowed for a 49% reduction in diesel fuel usage from 2021 to 2022.

10,350

8%

By displacing 6.1 million gallons of diesel with

natural gas, GHG emissions were reduced by a total of 10,350 metric tons of CO2e/year

The category of combustion emissions associated with completions was reduced by 8%

LEAK DETECTION AND REPAIR (LDAR) PROGRAM

8

Rockcliff employs a comprehensive, in-house LDAR program to monitor and ensure the ongoing integrity of our assets. As part of this effort, we use a FLIR optical gas imaging camera to survey and inspect each company-operated facility. These cameras see what the naked eye cannot and are used to observe and record emissions from E&P equipment. Pictures and videos captured by the FLIR cameras provide clear footage of emissions and assist crews with any necessary repairs, ultimately reducing our environmental footprint and GHG emissions.

GRI TOPIC 11.3

AIR EMISSIONS

CLEAN AIR Stringent regulations guide the permitting of all oil and gas operations, specifically as it applies to criteria pollutants including NOx, CO, VOCs, PM and SOx. Rockcliff has no facilities that are considered “major” under Title V of the Clean Air Act, nor the EPA‘s PSD permitting process.

GRI TOPIC 11.4

BIODIVERSITY

PROTECTING WILDLIFE AND HABITATS Biodiversity is a critical aspect of sustainable development and a key consideration for Rockcliff. We engage with local stakeholders including landowners, and federal, state, and local governments prior to construction activities to minimize environmental and local impacts. Rockcliff minimizes the operational footprint and impacts to the landscape and wildlife habitats in our development area by drilling and completing multiple wells from a single pad.

We evaluate each well pad, access road and pipeline right-of-way through an initial desktop review and onsite visit to locate them in a favorable location for all stakeholders. During the evaluation process, if potential wetlands, Waters of the United States, protected species, or cultural resources are encountered, then a third-party expert is included in the process to provide a more thorough environmental assessment of the area. If any of these sensitive areas are found during the assessment, then the team evaluates the project and either relocates the pad, road or pipeline to eliminate or minimize impacts to the sensitive areas, or obtains the necessary environment permits and mitigation as required. Avoidance and minimization of environmental concerns and impacts is our primary approach in managing biodiversity and land use activities.

9

GRI TOPIC 11.5

WASTE

WASTE MANAGEMENT Rockcliff Energy has a written comprehensive Waste Management Plan to provide guidance for the proper management and minimization of waste generated from all Rockcliff production, drilling, and completion activities operating under the jurisdiction of Federal, State and Local regulatory authorities. The waste management plan defines roles and responsibilities for waste handling, shipping, disposal, and training. In addition, contractors are held responsible for managing the waste they generate and for complying with all applicable state and federal waste regulations. The plan emphasizes waste minimization prioritizing waste reduction, recycling, and reuse/treatment over disposal.

GRI TOPIC 11.6

WATER AND EFFLUENTS

CONSERVING OUR WATER RESOURCES Responsible water management is a critical component to life and to our ongoing operations. Rockcliff is continuously optimizing our operations and procedures resulting in a 26% reduction in freshwater usage from 2021 to 2022. We accomplished this by improving our completion design, resulting in a 15% reduction of water usage per treated lateral foot, and by increasing the volume of produced water used in our hydraulic fracturing operations.

Rockcliff works closely with the local groundwater conservation districts, where we utilize groundwater for our operations, to monitor and mitigate any potential impacts on water quality and quantity. We recently completed multiple hydrogeological studies in Panola County, including the identification of aquifer parameters, review of geologic and hydrogeologic setting, evaluation of well construction, projections of the effect of pumping, and water quality analyses. No significant adverse impacts to groundwater quality or availability were identified in the hydrogeological studies. In addition, Rockcliff performed quarterly sampling on the water wells included in the hydrogeological studies in Panola County for over three years and has found no adverse effects to groundwater quality.

PIPING WATER, REDUCING TRUCK TRAFFIC

10

10

A standard practice for many oil and gas companies is to use trucks to transport produced water from their facilities to their final disposal destination. As part of our efforts to reduce emissions, Rockcliff built a produced water pipeline, allowing us to move nearly 93% of our produced water by pipe, limiting the number of trucks on the road, and thus significantly reducing vehicle emissions.

Utilizing pipelines rather than trucks, Rockcliff has eliminated more than 200,000 annual truckloads of water and 3.7 million road miles, which lowers our trucking emissions by 5,000 metric tonnes.

125

%

In an effort to reduce costs and minimize environmental im-

pact, we increased our recycled water usage in 2022 by 125%, exceeding our KPI goal for the year

GRI TOPIC 11.7

CLOSURE AND REHABILITATION

RESTORING THE LAND We are committed to minimizing the footprint of our operations and restoring the land. After initial facility construction and operations are complete, we undertake restoration and reclamation activities including the dewatering and closing of reserve pits within Railroad Commission of Texas (RRC) guidelines, and contouring and reseeding the area around our operations.

Additionally, decommissioning and site restoration are critical components of the oil and gas industry in Texas. As oil and gas wells reach the end of their productive lives, it is essential to properly decommission them to protect the environment and public health and safety. Decommissioning involves removing all equipment, pipes, and other materials from the well site, safely plugging the well, and restoring the land to its original state, or as directed by the landowner.

Rockcliff follows applicable rules set by the Railroad Commission of Texas (RRC) who oversees the decommissioning and site restoration process for oil and gas wells.

GRI TOPIC 11.8

ASSET INTEGRITY AND CRITICAL INCIDENT MANAGEMENT

PROACTIVE INCIDENT MANAGEMENT AND RESPONSE

Risks are inherent to our business – proactive mitigation and response are key. Rockcliff is committed to preventing and minimizing all product releases and their impact on the surrounding environment. We comply with, and often exceed, all rules and regulations, by installing the necessary secondary containment, having comprehensive Spill Prevention Control and Countermeasure (SPCC) plans, training our personnel and contractors on how to use our equipment, and having emergency response plans in place. Additionally, we proactively conduct comprehensive tank and load line integrity inspections to identify high-risk equipment, allowing us to identify and address potential issues.

0.21

In 2022, our total oil spill rate (Bbl/MBbl) was 0.21*

*Removed 123 bbls of released oil associated with 2 lighting strikes and 1 vandalism incident.

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GRI TOPIC 11.9

OCCUPATIONAL HEALTH AND SAFETY

A COMMITMENT TO SAFETY Rockcliff Energy is a safe operator. Ensuring that we provide a safe and healthy working environment for our employees, the community, and the environment is a top priority at Rockcliff. First and foremost, we conduct our operations and maintain our facilities using state of the art safety procedures.

We have comprehensive programs in place to ensure that we elevate awareness, track our progress, train all personnel, and achieve and maintain safety at all times. Our team of in-house HSE professionals help ensure a safe and compliant work environment, along with a prompt and thorough response should an issue arise.

COMPREHENSIVE TRAINING

Rockcliff employees are provided with a combination of computer-based and in-person safety training to prepare them for potential hazards and challenges they may face as part of their jobs. Training activities are supplemented with quarterly safety meetings that include field employees, as well as corporate leadership to ensure a top down/bottom up approach to the importance of safety.

All training activity is documented and successful completion for all employees is tracked as part of our corporate key performance indicator (KPI) structure. In 2022, 100% of Rockcliff field employees completed health and safety training programs. Additionally, we recently implemented an app-based work observation program to keep workers continually focused on safety. Each year we conduct specific safety meetings with all companies that work for Rockcliff.

CONTRACTOR SAFETY

Not only do we ensure that all Rockcliff employees are well-trained and make safety a top priority, we require the same of all our contractors. Each year we conduct six days of safety meetings that include all companies that work for Rockcliff. They participate in a rigorous training program that addresses important components of working for Rockcliff, including our culture, policies and procedures, incident management structure, and expectations.

Once completed, each contractor must sign a Rockcliff-specific pledge to ensure that they acknowledge our values and expectations and understand their safety obligations.

AN EXCELLENT RECORD

~3,000 100% 0.31 0.21 1.21

12

Hours of Safety training completed in 2022 100% of Rockcliff contactors are vetted for safety using Veriforce Combined TRIR of 0.31* Combined LTIR of 0.21 1.21 Preventable Vehicle Incidents per 1,000,000 miles driven

*0.31 compares favorably with the US Bureau of Labor Statistics data for 2020 for Natural Gas Extraction rate of 0.8.

GRI TOPIC 11.10

EMPLOYMENT PRACTICES

INVESTED IN OUR EMPLOYEES We provide opportunities for our employees to expand their knowledge and skills through our training programs, and encourage our employees to give back to the communities where we work and live. We have quarterly optional charitable activities that are conducted during work hours to help encourage employee involvement and minimize the impact on their home life. We also have (at least) quarterly team building events that help maintain the bonds both within and across departments. At Rockcliff, our employees are the key to our success.

LOW EMPLOYEE TURNOVER

GRI TOPIC 11.11

CAREER ADVANCEMENT OPPORTUNITIES

COMPETITIVE SALARY AND BENEFITS

MATERNITY LEAVE

TRAINING AND PROFESSIONAL DEVELOPMENT OPPORTUNITIES

COMMUNITY ENGAGEMENT OPPORTUNITIES

NON-DISCRIMINATION AND EQUAL OPPORTUNITY

DIVERSITY, EQUITY AND INCLUSION (DEI) Rockcliff welcomes diversity and respects the differences that make our employees unique.

ROCKCLIFF DEI POLICY*

Rockcliff’s diversity initiatives and values apply, but are not limited to, our practices and policies regarding recruitment and selection, compensation and benefits, professional development and training, promotions, social and recreational programs, and community and charitable engagements. To apply and improve our approach to diversity and inclusion, we seek to: • • •

Demonstrate leadership commitment and accountability through implementation and messaging of this Policy to advance our DE&I goals and objectives Cultivate a supportive, welcoming, inclusive, and fair work environment that allows team members to feel connected to the Company’s mission and contribute to their full potential Recruit, hire, retain and promote talent that helps advance a diverse working environment

PAY SCALE EQUITY

In 2022 Rockcliff completed a voluntary, corporate-wide Pay Equity Audit to evaluate our employees’ compensation and ensure fairness, analyzing, resolving and preventing pay disparities due to gender, race, ethnicity, or any other demographic designation. We are proud to report that Rockcliff currently has no discrepancies. This audit was part of our 2022 ESG key performance indicators.

*an excerpt from Rockcliff Energy’s DEI Policy 2022

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GRI TOPIC 11.12 GRI TOPIC 11.13

FORCED LABOR AND MODERN SECURITY FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

PEOPLE ARE OUR GREATEST ASSET

We are firm supporters of basic human rights and an individual’s right to speak out about an organization’s policies and practices, without interference. To that end, we comply with all federal, state and local laws and regulations, including those surrounding forced labor, human trafficking, freedom of association, and collective bargaining.

GRI TOPIC 11.14

ECONOMIC IMPACTS

A STRONG ECONOMIC CONTRIBUTOR Rockcliff is based in Houston, has an office in Longview, Texas, and has operations in six east Texas counties. We take great pride in being a good community neighbor, working closely with local organizations to understand the needs of those that live around our operations and how we can give back to the local communities.

Rockcliff pays a significant amount in state and local taxes each year, helping to build and support roads, schools and other infrastructure in the areas we operate, and throughout the state.

A SIGNIFICANT TAXPAYER State of Texas (Severance) ISD (Ad Valorem) Sales Tax Local 2022 Total Taxes

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$ 88,015,800 $ 17,725,000 $ 11,900,000 $ 10,924,600 $ 128,565,400

> 650M $

100%

In 2022, our capital expenditure was greater than

$650 million – much of which was spent directly in the communities where we live and work

100% of our field and corporate employees are hired from their respective local communities

GRI TOPIC 11.14

ECONOMIC IMPACTS

FUELING OUR NATION In addition to the direct impact of our capital expenditures, the people we employ, and the taxes we pay, Rockcliff produces over 1 billion cubic feet per day of clean-burning, reliable natural gas – the valuable energy needed to keep our local, state, and national economies moving.

According to the U.S. Energy Information Administration (EIA), natural gas provides nearly 35%* of the U.S.’s total energy consumption today. The natural gas we produce is used to generate electricity, to create fertilizers and chemicals, to operate refrigeration and cooling equipment, to cook, to provide heating and air conditioning, and to provide transportation, among other things. It is hard to put a price on the economic value these services provide. We are in the business that fuels every other business.

1,068

$

147B

$

500B

$

GRI TOPIC 11.15

Households that use natural gas for heating, cooking and clothes drying save an average of $1,068** per year compared to homes using electricity for those applications

The low cost of natural gas has saved families a total of $147 billion** over 10 years

Commercial and industrial customers have saved more than

half a trillion dollars** over the last decade by using natural gas

LOCAL COMMUNITIES

A STRONG COMMUNITY PARTNER Giving back and making a positive difference in the communities where we live and work isn’t just part of our ESG strategy – it is an integral part of who we are. We are committed to providing our employees with opportunities each quarter for community outreach, fundraising, and volunteer programs.

400

15,000 141,600

In 2022, we continued our partnership with

the Greater Houston and East Texas food banks, volunteering approximately 400 hours Preparing nearly 15,000 meals While raising funds to provide approximately 141,600 more meals

*Use of natural gas – U.S. Energy Information Administration (EIA)

**Affordable – American Gas Association (aga.org)

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717 Texas Ave., Suite 1900 Houston, TX 77002 (713) 351-0500 www.rockcliffenergy.com