2023 Essential Energy. Responsibly Produced.

 ^{"Our fundamental purpose, which revolves around advancing modern life through the responsible production of essential energy resources, serves as the very foundation of our company and guides our operational and strategic decisions. As we continue our journey, we are thrilled to provide updates on the progress we've made and the milestones we've achieved in our pursuit of our ESG (Environmental, Social, and Governance) objectives. Our unwavering commitment to environmental excellence remains a key element of our success. It is grounded in our long-standing tradition of resilience, a strategic focus on sustainability, and a steadfast commitment to prioritize safety and responsibility in our operations."} 

 _{- Christopher Valdez, CEO} 

We utilize GIS to support environmental review and design during well pad planning and the life cycle of a well pad. On a high level, some of our key initiatives to operationally incorporate GIS include:

Centralized GIS Data Repository

The team built and maintains a comprehensive corporate data repository for all of PureWest’s GIS data. It houses critical datasets, including lease road infrastructure, pad attributes (reclamation status, TrustWellTM rating, etc.), and well data from PureWest’s Geology Department. This centralized resource empowers informed decision- making and drives environmental transparency across our operations.

GIS technology is leveraged to create visual aids that enhance the understanding of PureWest’s operational landscape. These visual aids enable critical insight into areas such as emergency response preparedness, biodiversity conservation, and spill prevention. Examples include:

• Asset wall maps
• Regulatory maps
• Route maps for operations
• Pad-level map of the entire field for ops/ regulatory/emergency response
• Maps of avoidance areas including critical habitat and flood planes
• Vegetation maps
• Web map application development for pad planning and emergency response
• Develop framework and map content for the PureWest ESG StoryMap

In 2023, as part of continuous improvement and technological adaptation efforts, we upgraded our existing systems by expanding the live web mapping capabilities of our GIS and acquiring higher- resolution drones for enhanced image capture. By utilizing this technology, drone imaging of pre and post construction of well pads, for example, assists with proper design and reduced cost by minimizing disturbance to the ecosystem.

LiDAR data is used for various purposes, including elevation modeling (including viewshed and noise analyses), fill and cut balancing, and cuttings planning, etc. in order to assist well pad design for environmental functions.

• Processing leak data information and creating a data visualization dashboard to track leak location, frequency, and trends.
• Utilizing drone imagery by setting-up flight plans, ingesting high-resolution imagery and elevation products and visualizing drone imagery on our web map system.
• Producing various emergency response-related materials including made-for-purpose maps as well as Latitude/Longitude lists that contain coordinates for all PureWest-operated pads/facilities.
• Collecting and making available 360° walkthroughs of various pads in the field.
• Developing field GIS application that allows offline map use (lease roads, pads, and wells) from your cell phone with no internet connectivity needed.

In late 2022, PureWest became a member of the Oil & Gas Methane Partnership 2.0 (OGMP 2.0), a comprehensive, measurement-driven reporting framework that enhances the precision and openness of methane emissions reporting within the oil and gas sector. Our participation has since strengthened our emissions quantification efforts. Through this partnership, we have improved top-down emissions estimates by incorporating basin-level data, allowing for comparisons between sites.

In 2023, we advanced our efforts by developing an OGMP 2.0 Implementation Plan, involving a materiality assessment that helps us prioritize emission reduction strategies for identified sources. We also expanded Project Canary Continuous Emission Monitoring (CEM) deployment to monitor 50% of production volumes and collaborated with Greenfield Environmental to assess equipment leak emissions, all to enhance OGMP 2.0 reporting. Additionally, we evaluated two industry-leading aerial emission measurement companies in 2023 to inform future collaboration and improvement opportunities.

In 2023, PureWest embarked on a series of pilot studies to identify innovative approaches for optimizing our pneumatic systems, a core component of our operations. We began with a comprehensive analysis, exploring alternatives like nitrogen and instrument air to replace our current reliance on compressed natural gas (CNG). This analysis identified viable projects for pilot studies, which assessed the performance and feasibility of these alternatives. Additionally, we also explored the potential for integrating solar power to run compressors where applicable.

These pilot studies provided invaluable insights as we gained a clear understanding of the most cost-effective options for replacing CNG across our extensive network of over 8,000 process controllers. As part of the studies, we also evaluated the potential impacts associated with implementing new mechanical processes, allowing us to mitigate any related risks. The results provided direction for us to ensure a smooth transition without disrupting production if we were to implement these alternatives on a larger scale in the coming years.

By proactively exploring new technologies and conducting thorough pilot studies, we are demonstrating our commitment to continuous improvement and environmental responsibility. The valuable data gathered from these studies paves the way for more sustainable and efficient pneumatic operations, ultimately contributing to reduced operational costs and a minimized environmental footprint. We look forward to sharing updates on the ongoing implementation of these initiatives in the years to come.

PureWest consistently strives to align our field operations with our ambitious environmental goals. One such undertaking was securing regulatory permission to minimize operational emissions by commingling produced gas and liquids through common equipment.

Gaining authorization to commingle production has allowed PureWest to make incremental changes to some pieces of process equipment, thereby allowing us to completely decommission others. For example, prior to commingling, the Warbonnet 8-25 pad was permitted for eight (8) 25-million standard cubic feet per day dehydration towers and their associated reboilers, control devices, pneumatics, blowcases, and other ancillary equipment (collectively the dehydration system). After commingling, the total dehydration systems in operation were reduced to four (4). In addition to dehydration systems, other equipment counts reduced by commingling include combustors, pneumatic pumps and controllers, and heaters (process, in-line, heat trace, etc.).

The numbers represented in the graphic above reflect reductions in potential to emit based on operating fewer pieces of equipment. PureWest recognizes that the actual emissions reduced by these commingling projects are less than the PTE numbers represented above. Due to ever- changing field conditions, actual emissions reductions will fluctuate from day to day. Additionally, as the equipment is removed, PureWest will be able to reclaim these large areas and restore the natural habitat. By optimizing our field operations through commingling, PureWest has been able to reduce operational emissions in the field, minimize the footprint of equipment at future facilities constructed with fewer pieces of equipment, and reduce emissions associated with repair and routine maintenance.

Over the past few years, we have partnered with our downstream gathering partners to implement a multi-phased line pressure reduction initiative. As of 2023, we have invested over $20 million across two projects, with a timeframe ranging from 12 to 24 months. By lowering and optimizing pressure levels throughout our pipeline system, we have achieved several key benefits, including:

• Enhanced Operational Efficiency: By reducing equipment operating pressures, we lowered the risk of leaks in the event of mechanical failures and reduced the likelihood of freezing events, ultimately achieving higher production volumes.
• Reduced Environmental Footprint: By improving our overall system reliability, we reduced the volumes of potential leaks and the frequency of blowdowns, further enhancing our emissions mitigation strategies in the long term.
• Enhanced Market Stability: Reduced pressure and facility upgrades improved uptime efficiency, leading to consistent and reliable production volumes that contributed to greater market stability for West Coast Gas markets.

“The GIS maps for the pressure reduction project (gas gathering system pressure, liquid gathering system pressure, well static pressure, and well casing pressure) are extremely useful in tracking and monitoring the effects of the project. The maps have been influential in identifying issues with the LGS (Liquid Gathering Systems) pressures in North Stewart Point and over Lovatt Draw as well as reviewing static pressure optimization on PureWest Operated locations.” – Ryan Lacy, Production Engineer

KEY EMISSIONS REDUCTION PRACTICES We continue to implement best practices in our operations wherever applicable. These key initiatives highlighted below continue to drive our low emissions footprint associated with our operations.

PureWest also closely monitors our potential impact on groundwater and other water resources. We developed a third-party Groundwater Aquifer Pollution Prevention, Mitigation, and Monitoring program with oversight from governmental agencies, including the BLM, WOGCC, the EPA, State Engineer’s Office (SEO), the Wyoming DEQ, as well as highly skilled groundwater experts. The program has three components:

• Pollution Prevention: Ensures continued protection of groundwater outlined by 110 Best Management Practices;
• Monitoring: Comprehensively covers full-field groundwater monitoring; and
• Response Action: Implemented if an issue is detected by the monitoring program.

Aligned to our long-standing commitment to operate with a high degree of transparency and environmental integrity, PureWest has publicly reported our total water usage annually since 2009 and has sampled the groundwater around our operations since 2004. In 2023, NewFields, a third-party environmental consulting firm, conducted groundwater sampling, which reported no degradation or findings of concern.

Additionally, we continue to monitor the health of the New Fork River in partnership with the Sublette County Conservation District (SCCD). This ongoing partnership has increased the data quality of our water metrics so we can ultimately produce more detailed reports. Monitoring is conducted at 10 sites, with one centrally located continuous monitoring device within a portion of the New Fork River that passes our production area. SCCD’s recent findings concluded the surface water is healthy and not impacted by our operations. PureWest has been committed to the health of the river for nearly two decades and has never detected a negative impact on the natural environment.

In 2022, PureWest embarked on a comprehensive research initiative to understand how reclamation practices impact long-term success in the Pinedale Anticline natural gas field. This project, conducted in collaboration with Abnova Ecological Solutions (Abnova), involved a multi-pronged approach. First, a historical record of past reclamation practices was compiled. Additionally, soil samples were collected to assess viability for plant growth.

The core of the research focused on well pads reclaimed 5 -12 years prior to the study. Researchers utilized high- resolution smartphone camera images and specialized software (SamplePoint) to quantify vegetation on these sites compared to undisturbed reference areas. Insect populations were also sampled and identified at family and species level.

Statistical analysis revealed minimal differences in vegetation communities between reclaimed and reference areas. However, insect life displayed a much more positive response. Significantly higher abundance of insects was observed in 3 out of 5 years, and species and family richness were significantly higher in 4 out of 5 years.

These findings suggest that reclaimed well pads within mature sagebrush stands can support increased insect biodiversity and abundance for at least 12 years following restoration efforts. This is significant because insects, as the most diverse group of animals on Earth, play a critical role in maintaining ecosystem health.

The research was published in  Diversity  in 2024. These findings will be used to evaluate seed mixes, refine reclamation practices, and assess habitat suitability for vital insect populations and other wildlife within the Pinedale Anticline ecosystem.

Safety is a core value at PureWest, deeply embedded across our business operations. Whether in our offices or at our field sites, our commitment to safety is woven throughout all levels and functions of our company.

Our success in maintaining a safe work environment is largely due to our robust health and safety training, policies, protocols, and resources we provide our workforce. Each month, we hold safety meetings where the entire team gathers to review safety practices, discuss potential areas for improvement, and learn from past incidents.

Annual safety training is mandatory for all employees, complemented by emergency drills that simulate real-life scenarios such as well control incidents and spill events.

These drills - involving field staff, management, emergency responders, and external safety agencies - ensure that everyone is prepared and ready to take action during potential emergencies. We also conduct educational sessions on the risks and responses related to surface and groundwater pollution from hypothetical spill events.

To ensure we remain up-to-date with the latest safety protocols, we regularly update our Safety Manual and Emergency Response Plan. These documents are communicated to employees and serve as essential resources during trainings and actual incident responses.

To further reinforce our commitment to safety, we conduct a variety of health and safety trainings, including:

PureWest continues to prioritize impactful and authentic connections with our communities. We provide various channels for both the company and employees to actively contribute in ways that are meaningful to both personal and corporate goals.

We continue to rely on our employee-led Giving Committee to manage our community support strategies and programs. This governing body enables transparent oversight and effective decision-making in all our charitable initiatives.

The Committee structure includes a representative from the executive team and four employees to promote diverse perspectives in leadership roles. Each member serves a one- year term, with new members appointed by the executive team every December to maintain diversity of leadership.

Every January, the Committee convenes to select a chairperson from the four employee members and develop a giving strategy for the year. The chairperson oversees organizing meetings, tracking contributions, managing communications, routing corporate giving proposals, overseeing employee matches, and addressing other Committee-related issues.

PureWest proudly supported nearly 80 local nonprofit organizations that seek to improve health care, education, and basic human needs such as food and energy security.

Through our dedicated community relations programs, we actively engage with the local community in several impactful ways. PureWest has been involved in numerous community engagement programs for several years, showcasing our longstanding commitment to our communities:

See more information below on our community engagement programs:

Our ongoing support in 2023 includes teaming up with Energy Outreach Colorado (EOC) at Sanctuary Golf Course, contributing to their fundraising efforts. These proceeds directly benefit critical home energy programs for Colorado’s most vulnerable households. Our commitment to aiding EOC continues to help provide essential energy assistance to those in need.

In 2023, we remain dedicated to addressing the issue of food security. Our focus continues to be on assisting families facing various challenges. Alongside our charitable donations, we continue to support the Pinedale Food Basket by helping organize and maintain their shelves to meet the diverse needs of their customers. In addition, our commitment to the community includes efforts to alleviate the burden of local school lunch debt in Sublette County.

At PureWest, we are committed to supporting foundations dedicated to community wellbeing and home building, helping create safe and stable communities for a brighter future. Our team of employees actively supports Habitat for Humanity, contributing to their efforts in building homes for local families. We also organize several outdoor fundraisers to support various local nonprofits, reflecting our ongoing dedication to making a positive impact in our community.

Our company proudly contributes to the Craig Hospital Foundation, Children’s Hospital Colorado, and St. Jude Children’s Research Hospital, among others, demonstrating our commitment to social responsibility and community betterment. Additionally, we continue to support families impacted by a cancer diagnosis through Fishing for the Fight, a fund that provides assistance to families facing health emergencies in the surrounding Pinedale, Wyoming community.

PureWest is dedicated to supporting education by making regular contributions to foundations committed to empowering future generations. For several years, we have maintained our support for The Children’s Learning Center in Sublette County and have also contributed significantly to various other foundations.

In August 2023, we hosted a community meeting as part of our commitment to being an engaged community partner. The science fair-style event provided an open forum for community members to learn about our company and planned operations in the Pinedale region. Attendees had the opportunity to ask questions and engage directly with our team. This meeting was useful in fostering transparency, building trust, and strengthening our relationship with the community.

Continuing our commitment to mental health and wellbeing from last year, PureWest prioritizes a healthy work-life balance by investing in programs and resources that help mitigate stress, enhance mindfulness, boost productivity, and cultivate stronger career engagement. Our success in remote work continues to offer employees the flexibility needed to balance their professional and personal lives.

In 2023, we expanded mental health resources for our employees. We identified counseling and therapy services from designated providers across Wyoming and Colorado. Employees and their family members can each receive five sessions at no cost. In addition, we have partnered with a suicide prevention foundation in Wyoming, The Jae Foundation, to introduce all of our employees to educational and emergency resources available. We also work closely with Anthem/Blue Cross to assess any new mental health benefits that become available under our plans. Finally, we continue to provide robust support through our Employee Assistance Plan (EAP), offering 24/7 confidential help for employees and their household members at no cost.

Our dedication to employee wellness is reflected in our extensive benefits package, which includes comprehensive health coverage, generous leave, and time-off benefits. We offer a generous Family and Medical Leave (FMLA) paid leave policy to support employees during eligible leaves, including those for the employee’s own health, maternity/paternity, and qualifying relationships. The company offers paid leave for the first eight weeks of eligible leaves. For employees taking leave due to serious health condition, PureWest provides a short-term disability policy, fully funded by the company, to protect the employee’s income throughout the leave period. If employees are unable to return to work after their FMLA leave ends, they may transition to the company-paid long-term disability plan.

In 2023, we continued to build upon the work of our Wellness Committee by expanding its offerings in the realms of health, nutrition, fitness, mindfulness, and more. Our monthly wellness newsletters provide comprehensive support, employee recognition, expert advice, delicious recipes, and essential helpline information, becoming an invaluable resource for our employees.

Equally as important are our benefits around financial wellness. We have provided free resources through our 401(k) provider for retirement and investment planning. Our 401(k) matching program offers a 5% dollar for dollar match, but we also provide an additional 8% on top of the match, for a total of 13% tax free benefit.

As we evolve our offerings, our dedication to an inclusive, equitable, and diverse workplace remains unwavering, ensuring a brighter future for all at PureWest. To do so, we prioritize tailoring our comprehensive rewards packages to the unique needs of every employee.

At PureWest, we conduct business according to the highest ethical standards. Ethics and integrity are woven into all aspects of our business, from field operations and local community engagement to evaluation of employee benefits. Our robust internal controls system ensures we achieve our business objectives while minimizing risk and negative impact on the environment and communities where we operate. We are committed to further enhancing our reputation for transparency and integrity by consistently integrating short- and long-term strategic planning through an ethical lens.

Our comprehensive Code of Ethics and Business Conduct (Code of Ethics) provides critical guidance to uphold integrity throughout our organization. All employees are required to review and sign the Code of Ethics policy. Additionally, our new hires receive Code of Ethics training as part of their onboarding process.

*Violations of this Code may result in disciplinary action, including dismissal.

We are firmly committed to complying with all applicable laws and regulations and maintaining transparent and timely financial disclosures to both our internal and external stakeholders. Additionally, we also report audited and unaudited financials in accordance with our credit and LLC agreements.

We have an established Whistleblower Policy to cultivate a safe working environment for our employees. Our Whistleblower Policy serves to provide a secure and supportive framework for our employees to recognize and voice their concerns with the assurance that there will be no repercussions or backlash for doing so.

In support of this policy, we outline the step-by-step procedure for employees to identify and articulate their concerns in the Employee Handbook. Additionally, a link to the confidential reporting hotline is available on the company’s intranet site. PureWest is also in a partnership with Lighthouse, a third-party company that objectively manages complaints and reports received through our confidential hotline. In the event that a complaint is received, it is forwarded to the appropriate senior leadership department head for action. Our employees have the fundamental right to utilize these processes and trust that the company will respond promptly and effectively.

At PureWest, risk is mitigated through multiple strategies: