Corporate Responsibility

Our Commitment to ESG

At Surge Energy, our core values are simply “Who We Are” and are fully integrated into our organization through our commitment to safety, integrity, teamwork, transparency, and excellence. We incorporate “Who We Are” in every facet of our business in order to deliver value to our employees, stakeholders and the communities in which we work and live. “Who We Are” is a top-down philosophy that has allowed Surge Energy to experience exceptional achievements related to many components of the environmental, social and governance (ESG) principles that have become a focal point of the industry.

As a private operator in the Permian Basin, we take pride in our commitment to providing informative ESG disclosures with transparency and integrity. Our ESG strategy and approach to reporting, including the results of our materiality assessment, 2023 performance highlights, and our forward-looking commitment to sustainability and ESG are available in our sustainability report.

Environmental Stewardship

At Surge, we know that to achieve our goals and take care of our people and community, we must invest in protecting and improving our environment. As a leader in produced water management, electrical generation, drilling and completion optimization, and advanced information delivery systems, we leverage our industry expertise to bring innovative solutions that mitigate our environmental impact and address broader environmental challenges.

Community Impact

We are committed to fostering a culture of safety, integrity, teamwork, and excellence at Surge that benefits our people and the communities we serve. We invest in numerous programs and resources to ensure Surge is a great place to work and that we attract and retain top talent. In addition to creating an inclusive environment where diversity of background and thought is embraced, we deliver competitive compensation, benefits, health and wellness opportunities, employee recognition programs, and continuous education and development training.

As committed corporate citizens, we understand the importance of being engaged in the communities in which we live and work. We offer employees paid volunteer time off to support causes important to them. Our team has also worked closely with local organizations selected by our employees to positively impact the Greater Houston and West Texas Areas, including:

Sustainability Oversight

Our Corporate Responsibility Team is comprised of experts from across the organization with deep industry expertise and a strong understanding of relevant sustainability issues and priorities. This group works closely with our Executive Leadership Team on the Company’s sustainability reporting, emerging sustainability trends, and sharing stakeholder feedback.

The Executive Leadership Team, which is comprised of our Chief Executive Officer and Chief Financial Officer, maintains management of our business strategy, risk management, governance, and compensation practices. In addition, our Board of Directors seeks to ensure that our governance practices and Board composition support effective oversight of our strategy, performance, and key risks and opportunities.

7 Billion gallons of freshwater conserved due to Surge's produced water recycling system
Surpassed 95% recycled water used during Surge completion operations
Elimination of over 408 thousand mT of CO2e through innovation, operational excellence, and investments in emissions-eliminating infrastructure and operations such as water infrastructure, electrical infrastructure, and the use of dual fuel engines in our completions operations

Surge employees completed a total of over 1,800 hrs of safety training in 2024
45% of employees’ variable compensation is based on performance relative to sustainability targets
Achieved zero employee recordable incidents for the fourth consecutive year
Decommissioned 37 sites and plugged & abandoned 56 wells in 2024d
Maintained over 60% compressed natural gas ("CNG") consumption surpassing our objective to reduce frac fleet diesel use by 50%

Sustainability Goals

In October 2022, we announced four goals to guide our sustainability efforts. While we continue to prioritize efforts across each area of ESG, environmental performance metrics are core to our business and essential to promoting industry best practices. Our goals covering greenhouse gas intensity, fuel efficiency, methane intensity, and water management are meant to drive progress and accountability in areas deemed most important to our stakeholders and our commitments as a responsible operator.