Environmental Defense Fund (EDF) is a leading international environmental nonprofit Significant focus on mitigating climate change Pursuing practical solutions founded on science and economics Advocates reducing risk to health and environment from oil and gas production and distribution Global presence Pleasure to be here… EDF is an international nonprofit tackling a broad set of issues, including a focus on climate change mitigation First American enviro to hire an economist – known for advocacy grounded in science on biggest problems and economics on how to solve them. Our motto is “finding the ways that work” as distinct from our roots in “sue the bastards” Even as societies decarbonize, some oil and gas production is a fact of life. Even as we speed toward a lower carbon economy, must reduce risk to health and the environment from O&G production and transportation International presence- both oceans and longstanding work on climate and air in China. Most recently new EDF EU Exec Director Bryony Worthington who joined EDF from House of Lords 2

Global oil and gas methane emissions estimated at $30 billion Methane accounts for 25% of the warming our planet is experiencing right now Reducing global oil and gas methane emissions by 45% equivalent to shutting 1,000 coal-fired power plants Global oil and gas methane emissions estimated at $30 billion Some surprised to learn that methane accounts for about ¼ of current warming Oil and gas is the largest industrial source, in the United States and globally To solve the urgent puzzle that is global climate change, must fit together two pieces: carbon dioxide reductions AND methane reductions That’s because methane is ultra potent in the short term (86x more potent than CO2), accelerating the rate of warming we’re experiencing now and in the coming years, and carbon dioxide much less potent but longer lasting, and will determine the amount of warming for centuries to come Reducing global O&G methane 45%...near term climate benefit ~ 1000 coal fired power plants As lost product, current global emissions valued at $30B, and that may be conservative estimate since the U.S. experience shows emissions often larger than official estimates suggest. Not just a US or fracking problem. Emissions occur across the value chain, and globally 3

Unchecked methane presents investment risk REPUTATIONAL FINANCIAL So, we’ve discussed the magnitude of the problem, and the potential role of technology in solving it Where does this leave us from a management perspective? An investment perspective? Talking with investors in North America, the overriding theme we hear is risk Most of all reputational risk, to an industry that touts cleanness vs. coal but is literally leaking it away Also financial risk, as methane emissions are a hallmark of suboptimal operations, product into thin air And regulatory risk, as while select companies are taking steps to thrive in the inevitable methane-regulated world, most are not - REGULATORY 8

An Investor Guide to Methane provides support for constructive engagement on oil and gas methane emissions The guide includes… Background information on methane science, regulation, and risks for investors Practical advice on how investors can engage A framework to assess a company’s methane measuring, reporting and reducing performance A baseline for what investors should expect from operators in terms of methane emissions management Discussion question that help guide conversation

Measuring, reporting and reducing methane emissions are essential for assessing and managing risk 3 Reduce 2 Report Report 4 1 Measure Measure Measure 1 Oil and gas companies need to regularly measure methane emissions to create an accurate data inventory, identify problems/opportunities and assess progress toward reduction targets 2 Companies need to publicly report metrics to help investors understand how they are actively addressing methane risk. They should continuously expand the quantity and quality of data. 3 Using best management practices and technologies, companies need to reduce their methane emissions each year to meet their targets. 4 Continuous improvement of data capture must be an ongoing priority; data accuracy and availability can always be advanced