Dear Friends and Colleagues, As we bid farewell to 2023, Intrepid stands on the precipice of a remarkable journey, one made possible by the unwavering support and collaboration of our incredible energy community. With gratitude in our hearts, we extend our deepest thanks for being integral partners in a foundational year marked by teamwork, innovation, and collective success. A Century of Experience and Countless Relationships: Our leadership team, boasting a combined industry experience exceeding 100 years, has tirelessly cultivated significant relationships across the energy spectrum. From investment sponsors and banks to resource companies and service providers, our wide network is a testament to the strength of collaboration within the energy sector. Beyond Acquisition to a Higher Calling: While our core business revolves around acquiring and developing natural gas resources, we acknowledge a greater calling—to serve others through a culture rooted in utmost integrity and teamwork. This collective purpose has guided our actions, decisions, and interactions throughout the year, creating a foundation for sustained success. From Blueprint to Reality: In the past year, we crafted and executed our business plan by stepping up our engagement with energy companies and resource owners. As a result of our diligent strategic acquisition and resource development planning, we are starting to witness the tangible realization of our vision. Today, Intrepid stands poised and ready for significant near-term accomplishments. A Year of Thanks: Our success is not ours alone. We extend heartfelt thanks to our dedicated employees, visionary Board of Directors, and invaluable technology and business partners. Every stakeholder who believes in our mission has played a crucial role in our journey. Looking Forward with Enthusiasm: As Founder and CEO, I can confidently say that my enthusiasm for working in the energy business has never been greater. This is a testament to the talent and dedication of our employees, with whom I share ambitious growth plans. Together, we are ready to navigate the challenges and seize the opportunities that lie ahead. In closing, Intrepid enters 2024 with a sense of purpose, fueled by our achievements and the promise of the future. We remain deeply grateful for the support of our energy community and look forward to continued collaboration and success in the years to come. Wishing you and your families a joyous holiday season and a prosperous New Year. Sincerely, Charlie Chambers Founder and Chairman of the Board, Intrepid Resources LLC

The regulatory initiatives and commitments announced at COP28, particularly those targeting methane emissions in the oil and gas sector, can have several implications for US natural gas producers. Here are some potential impacts: 1. Increased Compliance Costs: The EPA's finalized rule, which includes requirements for routine monitoring of methane leaks, the phased-out flaring, and the Super-Emitter Program, may result in increased compliance costs for natural gas operators. Companies will need to invest in new technologies and monitoring systems to meet the regulatory standards. 2. Impact on Production Costs: The new regulations, coupled with potential methane fees under the Inflation Reduction Act’s Methane Emissions Reduction Program, may lead to increased production costs for facilities exceeding emissions thresholds. This could influence the overall economics of natural gas production. 3. Global Market Dynamics: International commitments and the formation of the Subnational Methane Action Coalition indicate a global push towards methane reduction. This may influence the competitiveness of U.S. natural gas in the global market, as consumers and buyers increasingly prioritize environmentally sustainable energy sources. 4. Data Transparency: Initiatives like MethaneSAT, providing global methane emission data publicly, may contribute to increased transparency in the industry. This transparency could influence public perception and market dynamics. In summary, the regulatory efforts to reduce methane emissions can lead to changes in production practices, compliance costs, and market dynamics in the natural gas sector. A thorough understanding of these changes along with the appropriate positioning can help U.S. producers become more competitive in the global natural gas markets. At Intrepid Resources, we are committed to natural gas, which provides an abundant, clean-burning, and versatile energy source. We are aligned with these regulatory efforts to drive down methane emissions—paving the way towards a sustainable future while minimizing the impact on our environment.

In the ever-changing landscape of the American oil and gas industry, wildcatters have stood as the pioneering mavericks who, for decades, have symbolized a unique blend of risk-taking, entrepreneurship, and a deep-rooted commitment to their word as their bond. With over five decades of experience in the industry, I've witnessed firsthand how wildcatters, like my father, played an integral role in shaping the energy landscape of the United States. Traditionally, wildcatters operated in a world where success hinged on a limited understanding of the subsurface and taking on geological risk. It involved the art of shooting seismic surveys, pinpointing drilling locations, and tapping into reserves that often eluded conventional wisdom. These early wildcatters were the gamblers of the industry, betting on their instincts and intuition, and in many cases, hitting it big against all odds. However, the times have changed dramatically. Today's shale basins have ushered in a new era where technology, engineering, and predictability have taken center stage. Once unpredictable, well drilling has evolved into a more streamlined and predictable manufacturing process, complete with complex supply chains and resource requirements. The industry's risk profile has shifted, moving away from geological uncertainty towards a business with increasingly higher capital costs associated with drilling longer laterals, navigating changing regulations, securing pipeline access, and, in the case of natural gas, gaining entry to liquefied natural gas (LNG) ports. Perhaps the most significant transformation has been the globalization of gas markets. No longer bound by domestic boundaries, wildcatters and industry leaders alike must now consider the global energy landscape. The pursuit of new markets and the transportation of liquefied natural gas has become essential. These shifts have redefined the playing field, adding layers of complexity that the old guard of wildcatters could scarcely have imagined. Simultaneously, the industry is undergoing consolidation, with major oil and gas producers showing a growing interest in domestic basins. As supermajors enter the scene, wildcatters are faced with a new set of challenges. Competition has intensified, and the ability to adapt to a rapidly shifting industry has become more critical than ever. But the indomitable spirit of the wildcatter endures. These pioneers of the oil and gas industry have managed to adapt to the changing landscape while retaining their entrepreneurial nature and their inherent appetite for risk. They have embraced technology and incorporated it into their operations, recognizing that innovation is the key to survival. Despite the evolving landscape, the core values of trust, integrity, and the unspoken commitment that your word is your bond, passed down through generations, remain the backbone of the wildcatter ethos. These values continue to be a source of inspiration in an industry that has seen dramatic changes in the way business is conducted. The legacy of the wildcatter lives on, not just in the history books, but in the spirit of innovation, tenacity, and unwavering commitment to the energy industry. In a world where everything is subject to change, the wildcatters are the constants - the risk-takers, the pioneers, and the guardians of a unique American tradition that continues to fuel the nation and shape its energy future.

The energy transition refers to a global shift from a predominantly hydrocarbon-based energy system to one that is characterized by a greater reliance on renewable and sustainable energy sources. The goal of the energy transition is to create a more sustainable, low-carbon, and resilient energy system that can meet the world's energy needs while reducing greenhouse gas emissions and minimizing environmental impacts. Natural gas is considered a cleaner-burning hydrocarbon-based fuel compared to coal and oil. When burned, it produces fewer carbon dioxide (CO2) emissions and air pollutants, which can help reduce greenhouse gas emissions especially when replacing coal in power generation. During periods of high demand, such as hot summer days when air conditioning use is at its peak, natural gas-fired peaker plants provide reliable electricity generation. They can start up quickly and ramp up their output to provide additional power when renewable sources like solar and wind are unable to meet the demand. Across Texas, for example, gas-fired peaker power plants and peaking units help meet statewide peak electric demand. Natural gas is a "bridge" or transitional fuel that can help countries transition from higher-emission hydrocarbon-based fuels (such as coal) to a low-carbon or renewable energy future. It can provide a reliable source of energy while renewable technologies continue to develop and become more cost-effective. Natural gas power plants provide flexibility and serve as backup for intermittent renewable energy sources like solar and wind. They can quickly ramp up or down to compensate for fluctuations in renewable energy generation, helping to ensure a resilient electricity supply. Natural gas can also be used in hybrid power generation systems that combine renewable sources (such as solar and wind) with gas-fired generators. Excess energy generated from renewables can be used to produce hydrogen through electrolysis, and this hydrogen can then be stored and later used in natural gas plants to generate electricity when renewable energy supply is low. Also, gas-fired generators can provide grid balancing services by injecting power into the grid when there is an electricity supply shortfall from renewables. They can also help stabilize the grid by responding to sudden changes in supply or demand. At Intrepid Resources, we are committed to natural gas as part of a balanced energy transition strategy that considers environmental, economic, social, and technological factors to ensure a sustainable and resilient energy future for generations to come.

The U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) defines energy independence as the state in which a nation does not need to import energy resources to meet its energy demand. Energy security means having enough energy to meet demand and having a power system and infrastructure that are protected against physical and cyber threats. Together, energy independence and energy security enhance America’s national security, competitiveness, and economic standing. Natural gas plays a major role in ensuring energy independence and security. Many countries have abundant natural gas reserves within their borders. By tapping into these domestic resources, nations can reduce their reliance on imported energy sources, thereby enhancing their energy independence. Relying on domestic natural gas production reduces vulnerability to supply disruptions, price fluctuations, and geopolitical tensions associated with imported energy. Natural gas can substitute other hydrocarbon-based fuels like coal and oil in various sectors, including power generation, heating, and industrial processes. By shifting to natural gas, countries can reduce their dependence on these non-renewable resources, which are often subject to international market dynamics and price volatility. This diversification of energy sources increases resilience and ensures a more self-reliant energy system. Natural gas can be obtained from various sources, including conventional gas fields, unconventional resources like shale gas, and liquefied natural gas (LNG) imports. This diversity of supply sources reduces the dependence on a single country or region, enhancing energy security and independence. By diversifying the natural gas supply portfolio, nations can mitigate risks associated with geopolitical conflicts or disruptions in a particular region. Developing the necessary infrastructure for natural gas exploration, production, transportation, and distribution also contributes to energy independence. Building pipelines, LNG terminals, and storage facilities within a country enables efficient utilization of domestic resources and facilitates the movement of natural gas to areas of demand. Such infrastructure investments enhance energy security and reduce dependence on external sources. At Intrepid Resources, we are committed to natural gas as part of an integrated energy strategy that promotes self-sufficiency, strengthens national security, and reduces exposure to external energy risks.

As we navigate the path to a sustainable future, we must harness energy sources that strike a balance between environmental preservation and meeting the world’s growing energy demands. Among these sources, natural gas is a vital component due to its numerous benefits. First, natural gas is abundant, with vast reserves discovered across the globe. Its extraction and utilization release fewer impurities compared to other hydrocarbon-based fuels, resulting in significantly lower greenhouse gas emissions. By substituting coal and oil in power generation and transportation, natural gas helps reduce air pollution and mitigate climate change. Second, natural gas plays a crucial role in facilitating the transition from traditional fossil fuels to renewable energy sources. It provides a reliable and efficient energy source that complements intermittent renewables like solar and wind power. By offering a flexible and dependable energy backup, natural gas helps overcome the challenge of intermittency, ensuring a stable and consistent power supply. And third, natural gas is widely used in various industrial processes, including manufacturing, heating, and chemical production. Its utilization in these sectors contributes to energy efficiency, lowers operational costs, and reduces carbon footprints. By promoting cleaner and more sustainable industrial practices, natural gas fosters a greener economy. At Intrepid Resources, we are committed to natural gas, which provides an abundant, clean-burning, and versatile energy source. We support natural gas as a transitional fuel, paving the way towards a sustainable future while minimizing the impact on our environment.

Connor Dawkins is a summer intern at Intrepid. Connor is a business major with a focus in finance. He is a student at St. Edward's University in Austin, Texas. Originally from Austin, Connor has always enjoyed spending time with his friends. He enjoys trying out new restaurants in different places. As well as playing tennis. In his current internship, he has been heavily engaged in research, learning about new business opportunities and gaining insights into the intricacies of the oil and gas industry. Connor is a committed intern who looks forward to contributing to the team and learning as much as he can during his time at Intrepid.

Marion Garabedian is a summer intern at Intrepid. She is an undergraduate student at the University of Washington, currently pursuing a degree in Chemical Engineering. Born and raised in Spokane, Washington, Marion’s love for the outdoors is reflected in her hobbies, which include skiing, hiking, swimming, and exploring the natural wonders of the Pacific Northwest. During her time with us, Marion has been actively engaged in expanding her knowledge of the oil and gas industry, gaining valuable insights from both business and engineering perspectives. She has demonstrated a strong eagerness to learn. Marion’s time with our company serves as a valuable opportunity for her to further develop her skills and broaden her understanding of the field.

Steve Herod has recently joined Intrepid’s Board of Directors, bringing 40 years of experience in all aspects of the E&P business. He is currently a director of Caliber Midstream, LLC, a private midstream company active in the Bakken. Mr. Herod served as Chief Executive Officer of Grizzly Energy, LLC, a privately held energy company with operations in eight states from 2020 to 2021. From 2012 until 2019, he was with Halcon Resources Corporation, a NYSE listed exploration and production company, in various management positions. He was a co-founder and Executive Vice President – Corporate Development of Petrohawk Energy Corporation from 2003 until Petrohawk’s sale to BHP Billiton in 2011. Mr. Herod served as Executive Vice President – Corporate Development for 3TEC Energy Corporation from 1999 to 2003. Mr. Herod served as President of Shore Oil Company from 1992 until the merger of Shore with 3TEC’s predecessor in 1997. From 1984 to 1991, he was with Conquest Exploration Company in various financial management positions. Mr. Herod began his career in 1981 as a financial analyst with Superior Oil Company. He is a graduate of Oklahoma State University with a B.S. degree in finance and management. Mr. Herod is active in various industry and charitable organizations. Mr. Herod stated “This is a great time to start a gas focused energy company. I believe in the vision Intrepid has and look forward to helping guide the team”. “The leadership, values, and experience Steve will bring to Intrepid is exceptional” said Charlie Chambers, Founder and CEO in welcoming Mr. Herod to Intrepid’s Board of Directors.

Carlos De Ayala has joined Intrepid’s Executive team as EVP of Corporate Development. He brings significant A&D transaction and field development experience that will serve Intrepid well. Previously, Mr. De Ayala served Linn Energy and Sydri Energy in leadership and business development roles and served in asset management roles with Beryl Resources, Pogo Producing Company, and Norcen Explorer. Mr. De Ayala earned his BS in Petroleum Engineering from The University of Texas and holds an MBA from St. Thomas University. He is a past member of The University of Texas Petroleum Engineering Advisory Council, the Society of Petroleum Engineers, and is a registered Professional Engineer in Texas. Mr. De Ayala stated, “I am thrilled to join Charlie Chambers and the Intrepid team and I look forward to creating meaningful value for our investors and stakeholders”. “I’ve known Carlos professionally for 30 years and I am excited to work together to exceed Intrepid’s goals” said Charlie Chambers, Intrepid Founder and CEO.

Intrepid Resources LLC (“Intrepid”) has signed an agreement with the not-for-profit foundation MiQ – the leading market standard for methane emissions performance in the United States – to pursue natural gas certification in its future US onshore assets. The certification process will include an independent assessment of the company’s emissions performance from the wellhead to delivery, focused on monitoring and best practices, with validation by a third-party auditor. This agreement reflects Intrepid’s commitment to natural gas as a key fuel for a just energy transition to a lower carbon future and aligns with the company’s goals to upgrade operations in acquired assets. In line with its Stewardship corporate value, Intrepid will endeavor to certify its natural gas assets to MiQ’s Independently Certified Gas (ICG) methane standards. “We are fully committed to producing natural gas safely and responsibly to meet the energy needs of the future,” said Charlie Chambers, Founder and CEO. “Intrepid’s highly experienced industry professionals are looking forward to demonstrating our capabilities and processes by working alongside MiQ to drive down the methane emissions of our future gas production assets.” "Eliminating oil and gas methane emissions this decade is vital to combat climate change. We welcome Intrepid’s commitment to undergo independent certification of the methane emissions from its future facilities against MiQ’s world-leading methane standard. MiQ certification will provide Intrepid’s customers with full transparency on the methane emissions related to the gas they are purchasing.” For more information on natural gas production certification see www.MiQ.org