Financial Analysis

(13) COMMITMENTS AND CONTINGENCIES Litigation We are the subject of, or party to, various pending or threatened legal actions, administrative proceedings or investigations arising in the ordinary course of our business including, but not limited to, royalty claims, contract claims and environmental claims. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to these actions, proceedings or claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future annual results of operations. When deemed necessary, we establish reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible we could incur additional losses with respect to those matters in which reserves have been established. We will continue to evaluate our litigation on a quarterly basis and will establish and adjust any litigation reserves as appropriate to reflect our assessment of the then current status of litigation. We have incurred and will continue to incur capital, operating and remediation expenditures as a result of environmental laws and regulations. As of June 30, 2026, liabilities for remediation were not material. We are not aware …

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(5) INDEBTEDNESS We had the following debt outstanding as of the dates shown below (in thousands): June 30, 2026 December 31, 2025 Bank debt $ 381,000 $ 118,000 Senior notes: 8.25 % senior notes due 2029 600,000 4.75 % senior notes due 2030 500,000 500,000 Total senior notes 500,000 1,100,000 Unamortized debt issuance costs ( 13,915 ) ( 19,666 ) Total debt, net of debt issuance costs 867,085 1,198,334 No interest was capitalized during the six months ended June 30, 2026 or the year ended December 31, 2025. We were in compliance with applicable covenants under the bank credit facility and our senior notes as of June 30, 2026. Bank Debt In October 2025, we entered into an amended and restated revolving bank facility (which we refer to as our bank debt or our bank credit facility) which is secured by substantially all of our assets and has a maturity date of October 2, 2030 . The bank credit facility provides for a maximum facility amount of $ 4.0 billion and an initial borrowing base of $ 3.0 billion and bank commitments totaling $ 2.0 billion. The bank credit facility is subject to annual re-determinations and event-driven unscheduled re-determinations. As of June 30, 2026 , our bank group was composed of seventeen financial institutions. The borrowing base may be increased or decreased based on our request and sufficient proved reserves, as determined by the bank group. The commitment amount may be increased to the borrowing base, subject to payment of a mutually acceptable c …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenue attributable to each of our identified revenue streams is disaggregated below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Natural gas sales $ 339,796 $ 397,955 $ 1,043,877 $ 888,332 NGLs sales 312,822 238,034 572,054 513,688 Oil sales 49,469 30,649 96,408 56,538 Total natural gas, NGLs and oil sales 702,087 666,638 1,712,339 1,458,558 Sales of purchased natural gas 53,858 31,751 106,735 82,836 Sales of purchased NGLs 1,427 ( 236 ) 3,694 1,531 Other marketing revenue 2,211 1,494 4,296 3,050 Total $ 759,583 $ 699,647 $ 1,827,064 $ 1,545,975

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"(9) STOCK-BASED COMPENSATION PLANS Total Stock-Based Compensation Expense Refer to Note 10 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards, their valuations and their award terms. Stock-based compensation represents amortization of time-based restricted stock and performance-based awards. The following details the allocation of stock-based compensation to functional expense categories (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Direct operating expense $ 518 $ 504 $ 1,064 $ 1,041 Brokered natural gas, NGLs and marketing expense 717 802 1,601 1,642 Exploration expense 386 366 720 713 General and administrative expense 10,471 9,326 21,096 19,437 Total stock-based compensation expense $ 12,092 $ 10,998 $ 24,481 $ 22,833 The mark-to-market adjustment of the liability related to the restricted stock Liability Awards held in our deferred compensation plan as recorded in deferred compensation plan expense on our consolidated statements of income is directly tied to the change in our stock price and not directly related to functional expenses and, therefore, is not allocated to the functional categories above. Time-based - Equity Awards ("" Equity Awards "") . These awards are expensed ratably over the service period associated with the awards based on fair value. Fair value is based on prevailing market price on the da te of grant and …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

(8) FAIR VALUE MEASUREMENTS The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information on the fair value hierarchy, refer to Note 2 of the Notes to the Consolidated Financial Statements in the Form 10-K. As of June 30, 2026, a portion of our natural gas derivative instruments contain swaptions where the counterparty has the right, but not the obligation, to enter into a fixed price swap on a pre-determined date. If exercised, the swaption contract becomes a swap treated consistently with our fixed price swaps. As of June 30, 2026, we used a weighted average implied volatility of 14 % for natural gas swaptions. As of June 30, 2026, we also utilized collars for propane that include unobservable inputs due to lack of published volatility data and used a weighted average implied volat ility of 36 % for these collars. The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value h ierarchy (in thousands): Six Months Ended June 30, 2026 Balance as of December 31, 2025 $ ( 603 ) Additions 225 Settlements 603 Balance as of June 30, 2026 $ 225 The following presents the carrying amounts and the fair values and hierarchy of our financial instruments as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 December 31, 2025 Carrying Value Fair Value Carrying Value Fair Value Assets: Commodity derivatives (a …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

(3) INCOME TAXES We evaluate and update our annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. For the three and six months ended June 30, 2026, our overall effective tax rate was not materially different than the federal statutory rate. For the three and six months ended June 30, 2025, our overall effective tax rate was lower than the federal statutory rate due primarily to tax credits, state income taxes and equity compensation. Our current income taxes reflect estimated state and federal income taxes due for 2026 which are based on our estimated earnings, taking into account all applicable tax rates and laws.

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(11) EXIT COSTS In third quarter 2020, the Company sold its North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030. These are contracts where we will not realize any future benefit. The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets. In first six months 2026, we recorded accretion expense of $ 13.7 million compared to $ 17.4 million in the same period of the prior year. In second quarter 2026, we recorded a net adjustment of $ 2.9 million to increase this obligation for a change in expected throughput volumes. The following details the accrued exit cost liability activity for the six months ended June 30, 2026 (in thousands): Exit Costs Balance as of December 31, 2025 $ 278,428 Accretion of discount 13,669 Changes in estimate 2,850 Payments ( 41,837 ) Balance as of June 30, 2026 $ 253,110

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"(2) REVENUES FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue All of the Company's revenues from contracts with customers have title transfer in the United States (""U.S."") and are recognized at the point in time when control is transferred to the customer and collectability is reasonably assured. Accounts receivable attributable to our revenue contracts with customers was $ 284.2 million as of June 30, 2026 and $ 354.9 million as of December 31, 2025 . Revenue attributable to each of our identified revenue streams is disaggregated below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Natural gas sales $ 339,796 $ 397,955 $ 1,043,877 $ 888,332 NGLs sales 312,822 238,034 572,054 513,688 Oil sales 49,469 30,649 96,408 56,538 Total natural gas, NGLs and oil sales 702,087 666,638 1,712,339 1,458,558 Sales of purchased natural gas 53,858 31,751 106,735 82,836 Sales of purchased NGLs 1,427 ( 236 ) 3,694 1,531 Other marketing revenue 2,211 1,494 4,296 3,050 Total $ 759,583 $ 699,647 $ 1,827,064 $ 1,545,975"

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(10) CAPITAL STOCK Treasury Stock In February 2026, our Board of Directors approved an increase to our existing stock repurchase program to an aggregate $ 1.5 billion. O ur total remaining share repurchase authorization was approximately $ 1.4 billion as of June 30, 2026. In second quarter 2026 , we repurchased 2.0 million shares at an aggregate cost of $ 78.4 million ($ 79.0 million including the 1 % excise tax). In first six months 2026 we repurchased 2.8 million shares at an aggregate cost of $ 105.5 million ($ 106.1 million including the 1 % excise tax). The following is a schedule of the change in treasury shares based on settlement date for the three and six months ended June 30, 2026: Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Beginning balance 33,915,000 33,115,000 Shares repurchased 2,000,000 2,800,000 Ending balance 35,915,000 35,915,000

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