The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risk. The term “market risk” refers to the risk of loss arising from adverse changes in oil and natural gas prices and interest rates. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures. All of our market risk sensitive instruments were entered into for hedging purposes, rather than for speculative trading. Oil, Natural Gas and NGL Revenues Our revenues and cash flows from operations are subject to many variables, the most significant of which is the volatility of commodity prices. Commodity prices are affected by many factors outside of our control, including changes in market supply and demand, which are impacted by global economic factors, pipeline capacity constraints, inventory levels, basis differentials, weather conditions and other factors. Commodity prices have long been volatile and unpredictable, and we expect this volatility to continue in the future. There can be no assurance that commodity prices will not be subject to continued wide fluctuations in the future. A substantial or extended decline in such prices could have a material adverse effect on our financial position, results of operations, cash flows and quantities of oil and gas reserves that may be economically produced, which could result in impairments of our oil and gas properties. Commodity Price Risk and Hedges Our primary market risk exposure is in the pricing that we receive for our oil, natural gas and NGL production. Oil, natural gas and NGLs are commodities and, therefore, their prices are subject to wide fluctuations in response to relatively minor changes in supply and demand. Pricing for oil, natural gas and NGLs has been volatile and unpredictable for several years, and we expect this volatility to continue for the foreseeable future. Our revenues, profitability and future growth are highly dependent on the prices we receive for our oil, natural gas and NGL sales, and the levels of our production, and depend on numerous factors beyond our control, some of which are described in “Item 1A. Risk Factors” in the 2025 Form 10-K. Based on our production for the three months ended June 30, 2025, our oil, natural gas and NGL sales for the three months ended June 30, 2025 would have moved up or down $3.2 million for each 10% change in oil prices per Bbl, $3.0 million for each 10% change in gas prices per Mcf, and $1.0 million for each 10% change in NGL prices per Bbl. Based on our production for the three months ended June 30, 2026, our oil, natural gas and NGL sales for the three months ended June 30, 2026 would have moved up or down $9.7 million for each 10% change in oil prices per Bbl, $4.7 million for each 10% change in gas prices per Mcf, and $2.7 million for each 10% change in NGL prices per Bbl. Based on our production for the six months ended June 30, 2025, our oil, natural gas and NGL sales for the six months ended June 30, 2025 would have moved up or down $7.9 million for each 10% change in oil prices per Bbl, $5.3 million for each 10% change in gas prices per Mcf, and $2.5 million for each 10% change in NGL prices per Bbl. Based on our production for the six months ended June 30, 2026, our oil, natural gas and NGL sales for the six months ended June 30, 2026 would have moved up or down $15.3 million for each 10% change in oil prices per Bbl, $12.1 million for each 10% change in gas prices per Mcf, and $4.7 million for each 10% change in NGL prices per Bbl. Due to this volatility, we have historically used, and we may elect to continue to selectively use, commodity derivative instruments (such as collars, swaps, puts and basis swaps) to mitigate price risk associated with a portion of our anticipated production. Our derivative instruments allow us to reduce, but not eliminate, the potential effects of the variability in cash flows that can emanate from fluctuations in oil and natural gas prices, and thereby provide increased certainty of cash flows for our drilling program and debt service requirements. These instruments provide only partial price protection against declines in oil and natural gas prices, but alternatively they partially limit our potential gains from future increases in prices. Our Credit Agreement limits our ability to enter into commodity hedges covering greater than 90% of our reasonably anticipated, projected production from proved properties. “Item 1A. Risk Factors” in the 2025 Form 10-K contains additional information regarding the volumes of our production covered by derivatives and the associated risks. 44 Table of Contents Counterparty and Customer Credit Risk Our derivatives expose us to credit risk in the event of nonperformance by counterparties. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk. We minimize the credit risk in derivative instruments by: (i) limiting its exposure to any single counterparty; and (ii) only entering into hedging arrangements with counterparties that are also participants in the Credit Agreement, all of which have investment-grade credit ratings. Our principal exposures to credit risk are through receivables resulting from the sales of our oil, natural gas, and NGLs. The inability or failure of our significant customers to meet their obligations to us or their insolvency or liquidation may adversely affect our financial results. However, we believe the credit quality of our customers is high. We sell our production to a relatively small number of customers, as is customary in our business. We extend and monitor credit based on an evaluation of their financial conditions and publicly available credit ratings. The future availability of a ready market for oil, natural gas and NGLs depends on numerous factors outside of our control, none of which can be predicted with certainty. For the three and six months ended June 30, 2026, we had three customers that exceeded 10% of total revenues. We do not believe the loss of any single purchaser would materially impact our operating results as crude oil and natural gas are fungible products with well-established markets and numerous purchasers. Interest Rate Risk As of June 30, 2026, our reserves supported a $875.0 million credit facility of which zero borrowings were outstanding with no letters of credit, leaving $875.0 million of unused capacity. Our largest exposure with respect to variable-rate debt comes from changes in the relevant benchmark rate underlying such debt financings, principally the Secured Overnight Financing Rate. We currently do not have an interest rate hedge program to hedge our exposure to floating interest rates on our variable-rate debt obligations. If annual interest rates increase 50 basis points based on variable-rate debt outstanding as of June 30, 2025 and 2026, annual interest expense on variable-rate debt would increase by approximately $0.2 million and $0.0 million, respectively.