Achieved a record 25th consecutive quarter of adjusted free cash flow despite an 18% decline in realized commodity prices during 2025.

Reduced lease operating expenses by 18% over the last six months of 2025, resulting in a monthly run-rate lower than pre-acquisition levels despite managing more wells.

Improved drilling capital efficiency by 19% since 2023 to $500 per lateral foot through technical optimization and disciplined cost control.

Expanded total proved reserves by 14% and proved undeveloped inventory by 17%, demonstrating a three-year track record of organic growth beyond production replacement.

Utilized 60% of debt incurred from the Lime Rock acquisition to pay down principal within three quarters of closing.

Attributed 2025 performance to a value-focused strategy that allowed for rapid capital spending adjustments following post-Liberation Day price volatility.

Budgeting assumes conservative pricing of $60 per barrel WTI and $3.50 per Mcf Henry Hub to ensure capital program funding and debt repayment.

Planned transition to a higher horizontal drilling mix, increasing to 85% of the program compared to 67% in 2025 to unlock more capital-efficient inventory.

Strategic shift toward longer laterals exceeding 1.5 miles and multi-bench co-development to enhance long-term free cash flow durability.

Guidance for 2026 sales volumes remains essentially flat at a midpoint of 20,150 BOE per day, accounting for a 200 BOE per day divestiture and January winter storm impacts.

Allocating remaining cash flow after maintenance capital toward further debt reduction to eventually position the company for a return of capital to stockholders.

Completed the divestiture of non-operated assets in Yoakum County for $4.5 million, representing approximately 4.5 times the next 12 months' cash flow.

Recognized $35.9 million in non-cash ceiling test impairment charges in Q4 2025, contributing to a reported net loss of $12.8 million.

Noted that the exit of a former large stockholder in August 2025 created selling pressure that previously drove the stock price below $1 and led to Russell 3000 disqualification.

Identified the Iranian crisis as a catalyst for shifting focus from hedging floors to managing rapidly changing market conditions and potential international supply disruptions.

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Management is testing the repeatability of horizontal targets in zones previously produced via vertical wells in Crane and Ector Counties.

The 2026 program is designed to inventory more horizontal 'sticks' to enable significant organic growth without a reliance on M&A.

Successful testing is expected to provide more data on the sustainability of the current asset set for horizontal development.

The company has spent two years organizing leases to accommodate longer laterals, including the first planned two-mile well in 2026.

Infrastructure investments, such as increased water storage for completions, are being made to support the shift toward capital-efficient longer laterals.

Management expects these upfront costs to yield long-term benefits in reserves and production per dollar spent.

Management indicated the 'cupboard is bare' regarding non-core assets after five years of portfolio cleaning, suggesting future divestitures would likely follow new acquisitions.

While current leverage limits sizable acquisitions, the company remains active in looking for deals that provide operational synergies and expanded inventory.

The strategy emphasizes having 'more than one way to win' by balancing opportunistic M&A with proven organic growth capabilities.

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