# EDGAR Filing Document

**Accession Number:** 0001141197
**File Stem:** 0001654954-26-000233
**Filing Date:** 2026-1
**Character Count:** 146737
**Document Hash:** 968e3a2b2bacbfe9cc02fe26525c5542
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-26-000233.hdr.sgml**: 20260109

**ACCESSION NUMBER**: 0001654954-26-000233

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20251029

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260109

**DATE AS OF CHANGE**: 20260109

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PEDEVCO CORP
- **CENTRAL INDEX KEY:** 0001141197
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 223755993
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35922
- **FILM NUMBER:** 26523579

**BUSINESS ADDRESS:**
- **STREET 1:** 575 N. DAIRY ASHFORD
- **STREET 2:** ENERGY CENTER II, SUITE 210
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77079
- **BUSINESS PHONE:** 855-733-3826

**MAIL ADDRESS:**
- **STREET 1:** 575 N. DAIRY ASHFORD
- **STREET 2:** ENERGY CENTER II, SUITE 210
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77079

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BLAST ENERGY SERVICES, INC.
- **DATE OF NAME CHANGE:** 20050610

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VERDISYS INC
- **DATE OF NAME CHANGE:** 20010523

?xml version='1.0' encoding='ASCII'? ped_8ka.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K/A**

**(Amendment No. 2)**

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): **October 29, 2025**

---

| |
|:---|
| **PEDEVCO CORP.** |
| **(Exact name of registrant as specified in its charter)** |

---

---

| | | |
|:---|:---|:---|
| **Texas** | **001-35922** | **22-3755993** |
| **(State or other jurisdiction of** <br>**incorporation or organization)** | **(Commission**<br>**file number)**  | **(IRS Employer** <br>**Identification No.)** |

---

---

| | |
|:---|:---|
| **575 N. Dairy Ashford, Suite 210**<br>**Houston, Texas** | **77079** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: <u>(713) 221-1768</u>**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.001 par value per share | PED | NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**EXPLANATION NOTE**

PEDEVCO Corp. (the "<u>Company</u>", "<u>we</u>" and "<u>us</u>") previously filed a Current Report on Form 8-K with the Securities and Exchange Commission (the "<u>SEC</u>") on November 3, 2025 (the "<u>Initial Form 8-K</u>"), disclosing that on October 31, 2025 (the "<u>Closing Date</u>"), the Company entered into, and closed the transactions contemplated by, an Agreement and Plan of Merger (the "<u>Merger Agreement</u>"), with NP Merger Sub, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company ("<u>First Merger Sub</u>"), COG Merger Sub, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company ("<u>Second Merger Sub,</u>" and together with First Merger Sub, the "<u>Merger Subs</u>"), North Peak Oil & Gas, LLC, a Delaware limited liability company ("<u>NPOG</u>"), Century Oil and Gas Sub-Holdings, LLC, a Delaware limited liability company ("<u>COG,</u>" and together with NPOG, "<u>North Peak</u>"), and, solely for purposes of the specified provisions therein, North Peak Oil & Gas Holdings, LLC, a Delaware limited partnership ("<u>North Peak Holdings</u>"), pursuant to which (a) First Merger Sub merged with and into NPOG, with NPOG being the surviving entity and a wholly-owned subsidiary of PEDEVCO, and (b) Second Merger Sub merged with and into COG, with COG being the surviving entity and a wholly owned subsidiary of PEDEVCO (clauses (a) and (b), together, the "<u>Mergers</u>" or the "<u>North Peak Merger</u>"). Concurrently with the closing of the Mergers, certain investors subscribed for and purchased an aggregate of 6,363,637 shares of PEDEVCO Series A Preferred Stock at a price per share equal to $5.50 per share or an aggregate of $35,000,004, from the Company. North Peak owns substantial oil-weighted producing assets and leasehold interests with future drilling inventory located in the Northern DJ and Powder River Basins including approximately 281,000 net acres.

At the time of the filing of the Initial Form 8-K, the Company stated that it intended to file the required financial statements and pro forma financial information associated with the Mergers within 71 days from the date that such Initial Form 8-K was required to be filed.

Pursuant to an Amendment No. 1 to the Initial Form 8-K filed with the SEC on December 23, 2025 ("<u>Amendment No. 1</u>"), the Company amended and restated <u>Item 9.01</u> thereof to include the required financial statements and pro forma financial information.

This Amendment No. 2 to the Initial Form 8-K (this "<u>Amendment</u>") is being filed by the Company to amend Amendment No. 1 solely to further amend and restate <u>Item 9.01</u> thereof, to present the audited and interim unaudited financial statements of North Peak, which were included as <u>Exhibits 99.1</u> and <u>99.2</u> to Amendment No. 1, as searchable text and with html tables in accordance with Rule 304(e) of Regulation S-T; and to include an updated Consent of Whitley Penn LLP, independent registered public accounting firm of North Peak, as <u>Exhibit 23.1</u>, in order for Whitley Penn LLP to consent to the incorporation by reference of their audit report and the audited financial statements of North Peak into the Company's previously filed registration statements.

Except as described above, no other changes have been made to the Initial Form 8-K or Amendment No. 1. This Amendment does not reflect events occurring after the date of the Initial Form 8-K or Amendment No. 1. The audited and unaudited financial statements of North Peak included as <u>Exhibits 99.1</u> and <u>99.2</u> hereto are unchanged from those included as <u>Exhibits 99.1</u> and <u>99.2</u> to Amendment No. 1, except that such financial information as attached hereto has been presented in searchable text and HTML format in accordance with Rule 304(e) of Regulation S-T.

**Item 9.01. Financial Statements and Exhibits.**

(a) *Financial Statements of Business Acquired*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) North Peak's audited financial statements, comprising the combined balance sheets as of December 31, 2024 and 2023, and the related combined statements of operations, combined statements of changes in members' equity, and combined statements of cash flows for each of the years then ended, and the related notes to the financial statements, are filed as <u>Exhibit 99.1</u> to this Current Report on Form 8-K/A and are incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) North Peak's unaudited financial statements, comprising the condensed combined consolidated balance sheets as of September 30, 2025 and December 31, 2024, and the related condensed combined consolidated statements of operations, condensed combined statements of changes in members' equity, and condensed combined statements of cash flows for each of the nine months ended September 30, 2025 and 2024, and the related notes to the financial statements, are filed as <u>Exhibit 99.2</u> to this Current Report on Form 8-K/A and are incorporated herein by reference.

(b) *Pro forma financial information*.

The unaudited pro forma financial information required by <u>Item 9.01</u>, as well as the accompanying notes thereto, are incorporated by reference herein as <u>Exhibit 99.3</u>, and incorporated by reference into this <u>Item 9.01</u>. The unaudited pro forma combined financial statements are based on the historical consolidated financial statements of the Company and adjusts such information to give effect of the Mergers.

The unaudited pro forma condensed combined balance sheet data as of September 30, 2025, gives effect to the North Peak Merger as if it had occurred on September 30, 2025. The unaudited pro forma condensed combined statement of operations for the nine-month period ended September 30, 2025, gives pro forma effect to the North Peak Merger as if it had occurred on January 1, 2024. The unaudited pro forma condensed combined statement of operations for the twelve-month period ended December 31, 2024, gives pro forma effect to the North Peak Merger as if it had occurred on January 1, 2024.

The unaudited pro forma condensed combined financial information is provided for illustrative purposes only and does not purport to represent what the actual consolidated results of operations of PEDEVCO would have been had the North Peak Merger occurred on the date noted above, nor are they necessarily indicative of future consolidated results of operations.

(d) *Exhibits.*

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description of Exhibit** |
| [23.1\*](ped_ex231.htm) | [Consent of Whitley Penn LLP](ped_ex231.htm) |
| [99.1\*](ped_ex991.htm) | [Audited financial statements, comprising the combined balance sheets as of December 31, 2024 and 2023, and the related combined statements of operations, combined statements of changes in members' equity, and combined statements of cash flows for each of the years then ended, and the related notes to the financial statements, for North Peak](ped_ex991.htm) |
| [99.2\*](ped_ex992.htm) | [Unaudited financial statements, comprising the condensed combined balance sheets as of September 30, 2025 and December 31, 2024, and the related condensed combined statements of operations, condensed combined statements of changes in members' equity, and condensed combined statements of cash flows for each of the nine months ended September 30, 2025 and 2024, and the related notes to the financial statements for North Peak](ped_ex992.htm) |
| [99.3\*\*](http://www.sec.gov/Archives/edgar/data/1141197/000165495425014297/ped_ex993.htm) | [Unaudited Pro Forma Financial Information](http://www.sec.gov/Archives/edgar/data/1141197/000165495425014297/ped_ex993.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\* Filed herewith.

\*\* Filed as Exhibit 99.3 to the Company's Current Report on Form 8-K (Amendment No. 1) filed with the Securities and Exchange Commission on December 23, 2025, and incorporated by reference herein.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Current Report on Form 8-K/A and <u>Exhibits 99.1</u>, <u>99.2</u>, and <u>99.3</u> hereto contain forward-looking statements within the safe harbor provisions under the federal securities laws, including The Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and assumptions. These forward-looking statements relate to the Company's current expectations and are subject to the limitations and qualifications set forth in the press release as well as in the Company's other filings with the Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements. These statements also involve known and unknown risks, which may cause the results of the Company and its subsidiaries to be materially different than those expressed or implied in such statements. Accordingly, readers should not place undue reliance on any forward-looking statements. Forward-looking statements may include comments as to the Company's beliefs and expectations as to future financial performance, events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the Company's control. More information on potential factors that could affect the Company's financial results is included from time to time in the "<u>Cautionary Note Regarding Forward-Looking Statements,</u>" "<u>Risk Factors</u>" and "<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>" sections of the Company's periodic and current filings with the SEC, including the Form 10-Qs and Form 10-Ks, filed with the SEC and available at <u>www.sec.gov</u> and the Company's website at <u>https://www.PEDEVCO.com/ped/sec_filings</u>, and specifically including the Company's Annual Report on Form 10-K/A for the year ended December 31, 2024 and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **PEDEVCO CORP.** | **PEDEVCO CORP.** |
| Date: January 9, 2026 | By: | /s/ *J. Douglas Schick* |
|  |  | J. Douglas Schick |
|  |  | President and Chief Executive Officer |

---

## Exhibit 23.1

**EXHIBIT 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-192002, 333-201098, 333-207529, 333-215349, 333-222335, 333-227566, 333-233525, 333-259248, and 333-282037) and Form S-3 (No. 333-282046) of PEDEVCO Corp., of our report dated June 2, 2025, relating to the audit of the combined financial statements of North Peak Oil and Gas as of December 31, 2024 and 2023 and for the years then ended, which appears in this Current Report on Form 8-K/A (Amendment No. 2).

/s/ Whitley Penn LLP

Houston, Texas

January 9, 2026

## Exhibit 99.1

**EXHIBIT 99.1**

**NORTH PEAK OIL AND GAS**

Combined Financial Statements

December 31, 2024 and 2023

(With Independent Auditors' Report Thereon)

**NORTH PEAK OIL AND GAS**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| Independent Auditors' Report | 1 |
| Combined Financial Statements: |  |
| Balance Sheets | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of Operations | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of Changes in Members' Equity | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of Cash Flows | 6 |
| Notes to Combined Financial Statements | 7 |

---

**REPORT OF INDEPENDENT AUDITORS**

To the Management and Members of

North Peak Oil and Gas

**Opinion** 

We have audited the combined financial statements of North Peak Oil and Gas and its subsidiaries (collectively referred to as the "Company"), which comprise the combined balance sheets as of December 31, 2024 and 2023, and the related combined statements of operations, changes in members' equity, and cash flows for the years then ended, and the related notes to the combined financial statements.

In our opinion, the accompanying combined financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America ("GAAP").

**Basis for Opinion**

We conducted our audits in accordance with auditing standards generally accepted in the United States of America ("GAAS"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Financial Statements**

Management is responsible for the preparation and fair presentation of the combined financial statements in accordance with GAAP, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the combined financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the combined financial statements are issued.

**Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the combined financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the combined financial statements.

In performing an audit in accordance with GAAS, we:

· Exercise professional judgment and maintain professional skepticism throughout the audit.

· Identify and assess the risks of material misstatement of the combined financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the combined financial statements.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the combined financial statements.

· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

/s/ Whitley Penn LLP

Houston, Texas

June 2, 2025

**NORTH PEAK OIL AND GAS**

Combined Balance Sheets

*(in thousands)*

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| ASSETS |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $1780 | $1192 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 17630 | 24819 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliate receivable | 85 | 301 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, current | 2076 | 5154 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory | 2168 | 2137 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 880 | 2725 |
| Total current assets | 24619 | 36328 |
| Oil and natural gas property and equipment, based on successful efforts method of accounting, net | 567267 | 575948 |
| Commodity derivative asset | 583 | 2611 |
| Other assets | 562 | 833 |
| TOTAL ASSETS | $593031 | $615720 |
| LIABILITIES AND MEMBERS' EQUITY |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $56660 | $59701 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued legal judgement | 950 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 2050 | 2009 |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, current portion | 58642 | 43650 |
| Total current liabilities | 118302 | 105360 |
| Long-term debt, net | 78543 | 110465 |
| Other noncurrent liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 3043 | 2865 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other long-term liabilities  | 2268 | 2507 |
| Total other noncurrent liabilities | 5311 | 5372 |
| Commitments and contingencies |  |  |
| Members' equity | 390875 | 394523 |
| TOTAL LIABILITIES AND MEMBERS' EQUITY | $593031 | $615720 |

---

The accompanying notes are an integral part of these combined financial statements.

**NORTH PEAK OIL AND GAS**

Combined Statements of Operations

*(in thousands, except per share amounts)*

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| REVENUES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Crude oil, natural gas, and NGL sales, net | $158326 | $204030 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on derivatives, net | (5089) | 5642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 153237 | 209672 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease operating and workover expenses | 49096 | 48462 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exploration expense | 152 | 414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes | 20756 | 26461 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and amortization  | 55201 | 70085 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion expense | 260 | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment of oil and natural gas properties | 3894 | 21074 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal  | 78 | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3488 | 1045 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliate expenses | 7297 | 6777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 140222 | 174966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations | 13015 | 34706 |
| OTHER INCOME (EXPENSE): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income | 4215 | 3832 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on legal judgment | (490) | 2035 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of oil and natural gas properties |  | 3735 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | (21093) | (22905) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expense | (17368) | (13303) |
| NET (LOSS) INCOME | $(4353) | $21403 |
| BASIC NET (LOSS) INCOME PER SHARE | $(7.45) | $39.29 |
| DILUTED NET (LOSS) INCOME PER SHARE | $(7.45) | $39.29 |
| CLASS A WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED | 584517 | 544675 |

---

The accompanying notes are an integral part of these combined financial statements.

**NORTH PEAK OIL AND GAS**

Combined Statements of Changes in Members' Equity

*(in thousands)*

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Beginning Balance | $394523 | $372293 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contributions | 705 | 827 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net (loss) income | (4353) | 21403 |
| Ending Balance | $390875 | $394523 |

---

The accompanying notes are an integral part of these combined financial statements.

**NORTH PEAK OIL AND GAS**

Combined Statements of Cash Flows

*(in thousands)*

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net (loss) income | $(4353) | $21403 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net (loss) income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and amortization | 55201 | 70085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion expense | 260 | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of oil and natural gas properties | 3894 | 21074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of oil and natural gas properties |  | (3735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on derivatives, net | 5089 | (5642) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash settlements on commodity derivatives | 17 | 5072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 2110 | 2094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment-in-kind interest | 154 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on litigation result |  | (2035) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable and affiliate receivable | 7189 | (2127) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 2061 | 336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | (30) | (2132) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 392 | 6266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | (2644) | 23276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other long-term liabilities | (240) | (237) |
| Net cash provided by operating activities | 69100 | 134121 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Additions to oil and natural gas properties | (51231) | (178129) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of oil and natural gas properties | 781 | 3989 |
| Net cash used in investing activities | (50450) | (174140) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Contributions | 705 | 827 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payment of debt issuance costs |  | (310) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from long-term debt | 62152 | 1837 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments on long-term debt | (80919) | (22500) |
| Net cash used in financing activities | (18062) | (20146) |
| Net increase (decrease) in cash and cash equivalents | 588 | (60165) |
| Cash, cash equivalents and restricted cash at beginning of year | 1192 | 61357 |
| Cash, cash equivalents and restricted cash at end of year | $1780 | $1192 |

---

The accompanying notes are an integral part of these combined financial statements.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

**Note 1. Organization and Summary of Significant Accounting Policies**

***Description of the Company***

The combined financial statements and associated footnotes presented herein represent the financial statements of Century Oil and Gas Holdings, LLC and subsidiaries ("Century"), Navigation Powder River, LLC and subsidiaries ("Navigation") and North Peak Oil & Gas Holdings, LLC and subsidiaries ("North Peak"). The respective corporate offices of Century, Navigation and North Peak are each located in Houston, Texas. Collectively, Century, Navigation and North Peak are herein referred to as "North Peak Oil and Gas".

North Peak Oil and Gas is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids ("NGLs") primarily in the Denver-Julesburg ("DJ") Basin, located in Colorado and Wyoming, as well as the Powder River Basin ("PRB"), located in Wyoming.

North Peak Oil and Gas currently has negative working capital and is operating with a net loss for the year ended December 31, 2024. It has additional committed capital from its members to complete the drilling program that is ongoing. Also, North Peak Oil and Gas currently has production. Management believes that with these commitments and continued improvements in production, it will be able to continue as a going concern for at least one year from the issuance of these combined financial statements.

***Basis of Presentation of Combined Financial Statements***

The combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and include the accounts of North Peak Oil and Gas and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon combination.

***Principles of Combination***

These consolidated financial statements reflect the financial condition, results of operations, cash flows and changes in members' equity of the Company and its consolidated subsidiaries, Century, Navigation and North Peak for the periods presented. All intercompany balances and transactions are eliminated in consolidation.

***Use of Estimates***

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ significantly from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include proved oil and natural gas reserves, evaluation of suspended well costs, derivative financial instruments, and asset retirement obligations.

***Cash and Cash Equivalents***

North Peak Oil and Gas considers all highly liquid investments with original maturities of three months or less to be cash equivalents. North Peak Oil and Gas maintains deposits in one financial institution, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation ("FDIC").

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Accounts Receivable***

North Peak Oil and Gas accounts receivable are due from purchasers of crude oil, natural gas, and NGLs or joint interest billings from non-operated working interest owners and are generally unsecured. North Peak Oil and Gas determines its allowance for each type of receivable based on the length of time the receivable is past due, its previous loss history, and customers current ability to pay its obligation. North Peak Oil and Gas also bases its allowance for each type of receivable on its respective credit risks and writes off specific receivables when they become uncollectible. Once an allowance is recorded, any subsequent payments received on such receivables are credited to the allowance for credit losses. To date, North Peak Oil and Gas has not experienced any pattern of credit losses and therefore has no allowance as of December 31, 2024 or 2023, respectively. North Peak Oil and Gas will continually monitor the creditworthiness of its counterparties by reviewing credit ratings, financial statements, and payment history.

***Inventory***

All inventories as of December 31, 2024, consist primarily of tubular goods and equipment used for drilling and completion activities. North Peak Oil and Gas accounts for inventories at the lower of cost or market value.

***Commodity Derivative Financial Instruments***

North Peak Oil and Gas is exposed to certain risks relating to its ongoing business operations, such as risks related to commodity prices. As such, North Peak Oil and Gas uses derivative instruments primarily to manage commodity price risk.

North Peak Oil and Gas enters into derivative financial instruments with respect to a portion of its crude oil, natural gas and NGL production to hedge future prices received. These instruments are used to manage the inherent uncertainty of future revenues resulting from commodity price volatility. These derivative financial instruments typically include financial price swaps and costless price collars. North Peak Oil and Gas does not hold or issue derivative financial instruments for speculative trading purposes.

Under the terms of the price swaps, North Peak Oil and Gas receives a fixed price for its production and pays a variable market price to the contract counterparty. When the settlement price is above the fixed price, North Peak Oil and Gas pays its counterparty an amount equal to the difference between the settlement price and the fixed price multiplied by the contract volume. When the settlement price is below the fixed price, the counterparty pays North Peak Oil and Gas an amount equal to the difference between the settlement price and the fixed price multiplied by the contract volume.

For costless price collars, North Peak Oil and Gas utilizes two-way price collars. The two-way price collars set a floor and ceiling price for the hedged production. When the settlement price is below the price floor established by these collars, North Peak Oil and Gas receives an amount from its counterparty equal to the difference between the settlement price and the price floor multiplied by the contract volume. When the settlement price is above the price ceiling established by these collars, North Peak Oil and Gas pays its counterparty an amount equal to the difference between the settlement price and the price ceiling multiplied by the contract volume. No payment is received or paid if the settlement price is above the floor price and below the ceiling price.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the combined balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the balance sheet. Changes in the fair value of these derivative financial instruments are recorded in earnings unless specific hedge accounting criteria are met. For derivative financial instruments held during the years ended December 31, 2024 and 2023, North Peak Oil and Gas chose not to meet the necessary criteria to qualify its derivative financial instruments for hedge accounting treatment. Cash settlements with counterparties on derivative financial instruments held by North Peak Oil and Gas are also recorded in earnings.

***Fair Value Measurements***

Certain assets and liabilities of North Peak Oil and Gas are measured at fair value at each reporting date. Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants. This price is commonly referred to as the "exit price." Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques and requires that assets and liabilities are classified in their entirety based on the lowest level input that is significant to the fair value measurement. This hierarchy consists of three broad levels:

· Level 1 – Observable inputs that are based upon quoted market prices for identical assets and liabilities within active markets.

· Level 2 – Observable inputs other than Level 1 that are based upon quoted market prices for similar assets or liabilities, based upon quoted prices within inactive markets, or inputs other than quoted market prices that are observable through market data for substantially the full term of the asset or liability.

· Level 3 – Inputs that are unobservable for the particular asset or liability due to little or no market activity and are significant to the fair value of the asset or liability. These inputs reflect assumptions that market participants would use when valuing the particular asset or liability.

***Oil and Natural Gas Properties***

North Peak Oil and Gas follows the successful efforts method of accounting for its oil and natural gas properties. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with nonproductive exploratory wells, delay rentals and exploration overhead are charged against earnings as incurred. Costs of drilling successful exploratory wells along with acquisition costs and the costs of drilling development wells, including those that are unsuccessful, are capitalized. Costs of seismic studies that are utilized in development drilling within an area of proved reserves are capitalized as development costs.

Exploratory drilling costs are initially capitalized, or suspended, pending the determination of proved reserves. If proved reserves are found, drilling costs remain capitalized as proved properties. Costs of unsuccessful wells are charged to exploration expense. For exploratory wells that discover reserves that cannot be classified as proved when drilling is completed, costs continue to be capitalized as suspended exploratory well costs if there have been sufficient reserves found to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. If management determines that future appraisal drilling or development activities are unlikely to occur, the associated suspended exploratory well costs are expensed. The policy of North Peak Oil and Gas is to expense the costs of such exploratory wells if a determination of proved reserves has not been made within a twelve-month period after drilling is complete.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

Unproved properties and properties under development include costs that are not being depleted or amortized. North Peak Oil and Gas excludes these costs until proved reserves are found, until it is determined that the costs are impaired or until major development projects are placed in service, at which time such costs are moved into proved properties and subject to amortization.

Proved properties are assessed for impairment when events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Individual assets are grouped for impairment purposes based on a common operating field. If there is an indication the carrying amount of an asset may not be recovered, the asset is assessed for potential impairment. If, upon review, the sum of the undiscounted pre-tax reserve cash flows is less than the carrying value of the asset, the carrying value is written down to estimated fair value. There is normally a lack of quoted market prices for long-lived assets. As such, the fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or by comparable transactions. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review.

All unproved property costs are reviewed at least annually to determine if impairment has occurred. In addition, impairment assessments are made on an interim basis if facts and circumstances exist that suggest impairment may have occurred. The impairment assessments are affected by economic factors such as the results of exploration activities, commodity price outlooks, anticipated drilling programs, remaining lease terms, and potential shifts in business strategy. During any period in which impairment is indicated, the accumulated costs associated with the impaired property are charged against earnings.

***Depreciation, Depletion and Amortization***

Depreciation, depletion and amortization of capitalized drilling and development costs of producing crude oil and natural gas properties, including related support equipment and facilities, are computed using the unit-of-production method on a field basis based on total estimated proved developed reserves. Amortization of producing leaseholds is based on the unit-of-production method using total estimated proved reserves, which includes proved undeveloped reserves. The rates utilized under the unit-of-production method are based upon quantities of recoverable crude oil and natural gas reserves, which are established based on estimates made by the external independent reserve engineers.

Upon sale or retirement of proved oil and natural gas properties, the cost and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Sales of proved oil and natural gas properties constituting a part of an amortization base are accounted for as normal retirements with no gain or loss recognized if doing so does not significantly affect the unit-of-production amortization rate.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Asset Retirement Obligations***

North Peak Oil and Gas recognizes liabilities for retirement obligations associated with tangible long-lived assets, such as producing well sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the combined balance sheets. When the assumptions used to estimate a recorded asset retirement obligation change, a revision is recorded to both the asset retirement obligation and the asset retirement cost. The asset retirement cost is depreciated over the useful life of the associated asset. Accretion of the discount on asset retirement obligations is charged to expense.

***Debt Issuance Costs***

Costs incurred to secure debt financing are capitalized and amortized over the life of the arrangement on a straight-line basis, which approximates the effective interest method. Unamortized debt issuance costs for revolving notes are reflected as a component of "Other assets" in the combined balance sheets. All other unamortized debt issuance costs are reflected as a reduction of "Long-term debt, net" in the combined balance sheets. The amortization of all debt issuance costs are reflected as a component of "Interest expense" in the combined statements of income.

***Class B Units***

North Peak Oil and Gas has issued Class B units to certain members of management, which are designed as a profits interest and entitle the Class B unit holders to an increased share of distributable cash flow generated by North Peak Oil and Gas in the event certain performance hurdles are met.

***Revenue Recognition***

Revenues include the sale of crude oil, natural gas and NGL production. Crude oil, natural gas and NGL sales are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, control has transferred, and collectability of the revenue is probable. The performance obligations of North Peak Oil and Gas are satisfied at a point in time. This occurs when control is transferred to the purchaser upon delivery of contract specified production volumes at a specified point. The transaction price used to recognize revenue is a function of the contract billing terms. Taxes assessed by governmental authorities on crude oil, natural gas and NGL sales are presented separately from such revenues in the accompanying combined statements of comprehensive earnings.

In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, *Revenue from Contracts with Customers (Topic 606)* ("ASU 2014-09"), which includes a five-step model that requires an entity to identify performance obligations in its contracts, estimate the amount of consideration to be received, allocate the consideration to each separate performance obligation, and recognize revenue as obligations are satisfied. ASU 2014-09 requires expanded disclosures surrounding revenue recognition and is intended to improve the financial reporting requirements for revenue from contracts with customers and converge these requirements with international standards Subsequently, the FASB issued ASU 2016-08, *Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),* pertaining to the presentation of revenues on a gross basis (revenues presented separately from associated expenses) versus a net basis.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

*Oil*

Sales under oil contracts of North Peak Oil and Gas are generally considered performed when it sells the oil production at the wellhead and receives an agreed-upon index price, net of any price differentials. North Peak Oil and Gas recognizes revenue when control transfers to the purchaser at the wellhead based on the net price received.

*Natural Gas and NGLs*

A control-based assessment is performed to identify whether North Peak Oil and Gas is a principal or an agent in the transaction, which determines whether revenue and the related expenses are presented on a gross or net basis. North Peak Oil and Gas acts as a principal in sales transactions when it has the ability to take-in-kind, which is not the case in the majority of its gas processing and transportation contracts. North Peak Oil and Gas recognizes revenue on a net basis, with the gathering, processing and transportation costs associated with its arrangements being recorded as a reduction to natural gas and NGL sales in the statements of income. Natural gas and NGL processing fees are reported as a reduction of natural gas and NGL revenues.

*Performance Obligations and Contract Balances*

The majority of product sale commitments of North Peak Oil and Gas are short-term in nature with a contractual term of one year or less. For these contracts, North Peak Oil and Gas applies the practical expedient in Accounting Standards Codification ("ASC") 606-10-50-14, which exempts entities from disclosing the transaction price allocated to remaining performance obligations, if any, if the performance obligation is part of a contract that has an original expected duration of one year or less.

For contracts with terms greater than one-year, North Peak Oil and Gas does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical expedient in ASC 606-10-50-14A, which applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required.

North Peak Oil and Gas typically satisfies its performance obligations upon transfer of control and records the related revenue in the month production is delivered to the purchaser. Settlement statements for crude oil, natural gas and NGLs may not be received for 30 to 60 days after the date the volumes are delivered, and as a result, North Peak Oil and Gas is required to estimate the amount of volumes delivered to the purchaser and the price that will be received from the sale of the product. North Peak Oil and Gas records the difference between estimated volumes and prices for production and actual volumes and prices for production in the month that payment is received from the purchaser. Historically, differences between revenue estimates and actual revenue received have not been significant.

*Contract Balances*

North Peak Oil and Gas recognizes revenue after its performance obligations have been satisfied, at which point it has an unconditional right to receive payment for its activities that give rise to revenues. Therefore, the product sales contracts of North Peak Oil and Gas do not give rise to contract assets or contract liabilities. Instead, the unconditional right of North Peak Oil and Gas to receive consideration are presented as a receivable within "Accounts receivable" in its combined balance sheet.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Income Taxes***

North Peak Oil and Gas is organized as a limited liability company and taxed as a partnership for federal income tax purposes. As a result, income or loss are taxable or deductible to the members rather than at the North Peak Oil and Gas level. Accordingly, no provision has been made for federal income taxes in the accompanying combined financial statements. In certain instances, North Peak Oil and Gas is subject to state taxes on income arising in or derived from the state tax jurisdictions in which it operates.

State income tax positions are evaluated in a two-step process. North Peak Oil and Gas first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more likely than not threshold, it is then measured to determine the amount of expense to record in the combined financial statements. The tax expense recorded would be equal to the largest amount of expense related to the outcome that is 50% or greater likely to occur. North Peak Oil and Gas classifies any potential accrued interest recognized on an underpayment of income taxes as interest expense and classifies any statutory penalties recognized on a tax position taken as operating expense. Management of North Peak Oil and Gas has not taken a tax position that, if challenged, would be expected to have a material effect on the combined financial statements of North Peak Oil and Gas as of or for the years ended December 31, 2024 and 2023.

North Peak Oil and Gas did not incur any penalties or interest related to its state tax returns during the years ended December 31, 2024 and 2023.

Under the new centralized partnership audit rules effective for tax years beginning after 2018, the Internal Revenue Service ("IRS") assesses and collects underpayments of tax from the partnership instead of from each partner. The partnership may be able to pass the adjustments through to its partners by making a push-out election or, if eligible, by electing out of the centralized partnership audit rules. The collection of tax from the partnership is only an administrative convenience for the IRS to collect any underpayment of income taxes, including interest and penalties. Income taxes on partnership income, regardless of who pays the tax or when the tax is paid, is attributed to the partners. Any payment made by the partnership as a result of an IRS examination will be treated as a distribution from the partnership to the partners in the combined financial statements.

***Net Income Per Share***

Basic net income per share of North Peak Oil and Gas has been computed based on the average number of Class A shares outstanding for the period. During periods when North Peak Oil and Gas has net income, basic net income per share includes the effect of participating securities, which consist of Class B shares outstanding. North Peak Oil and Gas utilizes the if-converted method for the purpose of calculating diluted earnings per share if the result is more dilutive than under the two-class method.

***Leases***

North Peak Oil and Gas establishes right-of-use assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months. Typical right-of-use operating lease assets of North Peak Oil and Gas are for certain leases related to drilling rigs, compressors and other equipment related to the exploration, development and production of oil and gas. For the years ended December 31, 2024 and 2023, North Peak Oil and Gas had no leases in effect with a term extending greater than 12 months.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Commitments and Contingencies***

Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Liabilities for environmental remediation or restoration claims resulting from allegations of improper operation of assets are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated.

***Affiliate Transactions***

An affiliate provides certain operational and administrative support to North Peak Oil and Gas and bills for these services. Amounts incurred by North Peak Oil and Gas for these services are shown as "Affiliate expenses" in the combined statements of income. Amounts paid in excess of actual billings for operational and administrative support provided to North Peak Oil and Gas are reflected as "Affiliate receivables" in the combined balance sheets.

***Segments***

The crude oil and natural gas and production activities of North Peak Oil and Gas are solely focused in the U.S. North Peak Oil and Gas aggregates its operating segments into one reporting segment, exploration and production, due to the similarity of these operations.

***Recent Accounting Pronouncements***

In March 2024, the FASB issued ASU 2024-01, "*Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards"* ("ASU 2024-01"). The Private Company Council and other stakeholders noted diversity in practice in accounting for profits interest and similar awards as share-based payment arrangements under Topic 718 or similar to cash bonus or profit-sharing arrangements (Topic 710, Compensation—General, or other Topics). ASU 2024-01 addresses these differences by providing an illustrative example intended to demonstrate how entities should account for them under Topic 718. The amendments are effective for annual periods beginning after December 15, 2025, and interim periods within those annual periods with early adoption permitted. The amendments should be applied either (1) retrospectively to all prior periods presented in the financial statements, or (2) prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments. North Peak Oil and Gas is currently assessing the impacts of ASU 2024-01 but does not believe it will have a material effect on net income, cash flows or retained earnings.

**Note 2. Accounts Receivable and Accounts Payable**

Components of accounts receivable include the following (in thousands):

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Crude oil, natural gas and NGL Sales | $15538 | $21377 |
| Joint interest billings | 1424 | 2592 |
| Other | 668 | 850 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross accounts receivable | 17630 | 24819 |
| Allowance for credit losses | ― | ― |
| &nbsp;&nbsp;&nbsp;&nbsp; Net accounts receivable | $17630 | $24819 |

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**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

Accounts payable and accrued liabilities consisted of the following at the dates indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Accounts payable | $12702 | $25173 |
| Production and ad valorem taxes  | 16021 | 17502 |
| Suspense | 13578 | 7663 |
| Accrued oil and gas capital expenditures | ― | 111 |
| Accrued lease operating and workover expenses | 2657 | 441 |
| Owner advances and prepayments | 1985 | 315 |
| Revenues payable | 7630 | 7947 |
| Accrued compensation costs | 2087 | 170 |
| Other | ― | 379 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $56660 | $59701 |

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**Note 3. Oil and Natural Gas Properties**

***Capitalized Costs***

The following table reflects the aggregate capitalized costs associated with North Peak Oil and Gas (in thousands):

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Oil and natural gas properties and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $699633 | $581972 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 240979 | 308225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total oil and natural gas properties and equipment | 940612 | 890197 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Accumulated depreciation, depletion and amortization | (373345) | (314249) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil and natural gas properties and equipment, net | $567267 | $575948 |

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During the year ended December 31, 2023, North Peak Oil and Gas recorded proved property impairments of $16.4 million. North Peak Oil and Gas did not have any proved impairments during 2024. During the years ended December 31, 2024 and 2023, North Peak Oil and Gas recorded unproved property impairment of $3.9 million and $4.7 million, respectively.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Suspended Exploratory Well Costs***

The following table summarizes the changes in suspended exploratory wells costs for North Peak Oil and Gas (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Beginning balance | $14377 | $17729 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additions pending determination of proved reserves | 15 | 1914 |
| &nbsp;&nbsp;&nbsp;&nbsp; Charges to exploration expense |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassifications to proved properties | (2932) | (5266) |
| Ending Balance | $11460 | $14377 |

---

North Peak Oil and Gas had no projects with suspended exploratory well costs that were capitalized for a period of greater than one year since the completion of drilling as of December 31, 2024 and 2023.

**Note 4. Revenue**

***Disaggregation of Revenue***

The following table presents the disaggregation of crude oil, natural gas and NGL revenue of North Peak Oil and Gas (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Crude oil | $149556 | $194612 |
| Natural gas | 1632 | 2725 |
| NGLs | 7138 | 6693 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total crude oil, natural gas and NGL sales, net | $158326 | $204030 |

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***Contract Balances***

As of December 31, 2024 and 2023, the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers was $15.5 million and $21.4 million, respectively. As of January 1, 2023, the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers was $21.8 million.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

**Note 5. Derivative Financial Instruments**

***Commodity Derivatives***

As of December 31, 2024, North Peak Oil and Gas had the following open crude oil derivative positions:

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2026** | **2027** |
| **WTI NYMEX Sold Swaps** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notional Quantity (Bbls) | 825000 | 462000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Weighted Average Fixed Price ($/Bbl) | $71.83 | $66.79 | $— |
| **WTI NYMEX Purchased Puts** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notional Quantity (Bbls) | 375500 | 199500 | 20500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Weighted Average Strike Price ($/Bbl) | $65.66 | $63.12 | $65.00 |
| **WTI NYMEX Sold Calls** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notional Quantity (Bbls) | 375500 | 199500 | 20500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Weighted Average Strike Price ($/Bbl) | $75.36 | $74.84 | $76.15 |

---

As of December 31, 2024, North Peak Oil and Gas did not have any open natural gas or NGL derivative positions.

***Derivative Gains and Losses***

Cash receipts and payments reflect the gains or losses on derivative contracts which matured during the applicable period, calculated as the difference between the contract price and the market settlement price of matured contracts. The derivative contracts of North Peak Oil and Gas are settled based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on the New York Mercantile Exchange ("NYMEX") West Texas Intermediate pricing and natural gas derivative settlements based primarily on NYMEX Henry Hub pricing. Non-cash gains and losses represent the change in fair value of derivative instruments which continued to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period.

The following table presents cash receipts and payments along with non-cash gains and losses of commodity derivative contracts (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Cash received (paid) on derivatives | $(17) | $5072 |
| Non-cash gain (loss) on derivatives | (5072) | (570) |
| Gain (loss) on derivatives, net | $(5089) | $5642 |

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**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Financial Statement Presentation***

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the combined balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the combined balance sheets. The table below presents a summary of these positions as of December 31, 2024 and 2023 (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross Fair Value** | **Amounts Netted** | **Net Fair Value** |
| Commodity derivative assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, current | $3730 | $(1654) | $2076 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, noncurrent | 2444 | (1861) | 583 |
| Total commodity derivative assets | $6174 | $(3515) | $2659 |
| Commodity derivative liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, current | $(1654) | $1654 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, noncurrent | (1861) | 1861 |  |
| Total commodity derivative liabilities | $(3515) | $3515 | $— |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Gross Fair Value** | **Amounts Netted** | **Net Fair Value** |
| Commodity derivative assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, current | $5410 | $(256) | $5154 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, noncurrent | 5063 | (2452) | 2611 |
| Total commodity derivative assets | $10473 | $(2708) | $7765 |
| Commodity derivative liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, current | $(256) | $256 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, noncurrent | (2452) | 2452 |  |
| Total commodity derivative liabilities | $(2708) | $2708 | $— |

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**Note 6. Asset Retirement Obligations**

The following table presents changes in asset retirement obligations of North Peak Oil and Gas (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Asset retirement obligations at beginning of year | $4874 | $4432 |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells acquired/developed |  | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp; Liabilities settled | (41) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp; Revision of estimated obligation |  | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion expense on discounted obligation | 260 | 272 |
| Asset retirement obligations at end of year | $5093 | $4874 |

---

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

**Note 7. Debt and Related Expenses**

The following table presents the outstanding debt and related expenses of North Peak Oil and Gas (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Prudential Notes | $36142 | $36488 |
| EOC Loan | 99375 | 121875 |
| Amegy Notes | 4445 | 187 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total debt, including current portion | 139962 | 158550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Debt issuance costs | (2777) | (4435) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total debt, including current portion, net | 137185 | 154115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Prudential Notes, current portion | (36142) | (21150) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: EOC Loan, current portion | (22500) | (22500) |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, net | $78543 | $110465 |

---

Debt maturities as of December 31, 2024, excluding debt issuance costs, are as follows (in thousands):

---

| | |
|:---|:---|
| 2025 | 63062 |
| 2026 | 76900 |
| Total | $139962 |

---

***EOC Term Loan***

On August 29, 2022, North Peak entered into a four-year $150.0 million term loan agreement with EOC Partners Advisors, L.P. ("EOC Loan"), managed by Alter Domus, LLC. Proceeds from the EOC Loan were used to fund development drilling, future acquisitions and pay transactions fees and expenses. The EOC Loan is secured against a first lien on North Peak's oil and natural gas properties and other assets. The EOC Loan matures on August 29, 2026, at which time all advances are required to be paid in full. Interest accrues at the Secured Overnight Financing Rate ("SOFR"), or 4.33%, plus an applicable margin of 7.0% and an annual adjustment of 0.15%. As of December 31, 2024, North Peak had an interest rate of 11.48%.

Principal payments of 3.75% of the original balance are due quarterly, and the remaining balance and accrued interest are due at maturity.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

The EOC Loan contains various financial covenants, defined within the EOC Loan agreement, including a Consolidated Net Leverage Ratio, Current Ratio and Asset Coverage Ratio (collectively, the "EOC Financial Covenants"). The following table summarizes the Financial Covenants of the EOC Loan for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Consolidated Net** | **Current** | **Asset** |
| *At December 31, 2024:* | *At December 31, 2024:* | **Leverage Ratio\*** | **Ratio\*\*** | **Coverage Ratio** |
|  | EOC Loan | 2.50 to 1.00  | 0.25 to 1.00  | 1.50 to 1.00  |

---

\* Fiscal quarters ending after December 31, 2023, the Consolidated Net Leverage Ratio was lowered to 2.50 to 1.00 from 2.75 to 1.00.

\*\* Fiscal quarter ending after December 31, 2023, the Current Ratio was lowered to 0.25 to 1.00 from 1.00 to 1.00, according to the Third Amendment to EOC Term Loan Credit Agreement.

Additionally, the EOC Loan restricts North Peak's indebtedness, limits its ability to create liens securing certain indebtedness, make restricted payments, make or permit investments, loans and advances or enter into certain sale-leaseback transactions, among other matters. These covenants are subject to a number of important exceptions and qualifications.

As of December 31, 2024, North Peak did not meet the required Current Ratio requirement and, as a result, was not in compliance with the EOC Financial Covenants. Subsequent to year end, the Company's term loan was amended to extend the due date to August 29, 2026, and waive financial covenants as of December 31, 2024 until March 31, 2025.

***Amegy Notes***

North Peak has a Senior Secured Revolving Credit Agreement with Zions Bancorporation, N.A. dba Amegy Bank ("Amegy") with a commitment and borrowing base of $10.0 million ("Amegy Notes"). The Amegy Notes are secured against a first lien on North Peak's oil and natural gas properties and other assets. Balances outstanding under the Amegy Notes bear interest at the SOFR plus an applicable margin based on revolver utilization, which was 3.5% as of December 31, 2024. As of December 31, 2024, North Peak had an interest rate of 8.2%. Principal and any accrued interest is due at maturity on October 18, 2025.

The Amegy Notes contain various financial covenants, defined within Amegy Notes agreement, including a Consolidated Net Leverage Ratio, Current Ratio and Asset Coverage Ratio (collectively, the "Amegy Financial Covenants"). The following table summarizes the Financial Covenants of the Amegy Loan for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Consolidated Net** | **Current** | **Asset** |
| *At December 31, 2024:* | *At December 31, 2024:* | **Leverage Ratio\*** | **Ratio\*\*** | **Coverage Ratio** |
|  | Amegy Notes | 2.50 to 1.00  | 0.25 to 1.00  | 1.50 to 1.00  |

---

\* Fiscal quarters after December 31, 2023, the Consolidated Net Leverage Ratio was lowered to 2.50 to 1.00 from 2.75 to 1:00.

\*\*Fiscal quarter after December 31, 2023, specifically, lowered to 0.25 to 1.00 from 1:00 to 1:00 according to the Third Amendment to Amegy Senior Secured First Lien Revolving Credit agreement.

Additionally, the Amegy Notes restricts North Peak's indebtedness, limits its ability to create liens securing certain indebtedness, make restricted payments, make or permit investments, loans and advances or enter into certain sale-leaseback transactions, among other matters. These covenants are subject to a number of important exceptions and qualifications.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

As of December 31, 2024, North Peak Oil and Gas did not meet the required Current Ratio requirement and, as a result, was not in compliance with the Amegy Financial Covenants. Subsequent to year end, the Company's revolving loan agreement was amended to extend the due date to October 18, 2025, and waive financial covenants as of December 31, 2024 until March 31, 2025.

***Prudential Notes***

Navigation has an agreement with Prudential Capital Energy Partners, L.P., Prudential Capital Energy Partners Management Fund, L.P. and Prudential Annuities Life Assurance Corporation (collectively, "Prudential") to fund both three-year $40.0 million Senior Secured Revolving Notes ("Prudential Senior Notes") and four-year $15.0 million Senior Subordinated 13.0% Notes ("Prudential Subordinated Notes", collectively, the "Prudential Notes"). Proceeds from the Prudential Notes were used to refinance existing indebtedness under the Citibank Credit Facility, fund development drilling, potential future acquisitions and pay transaction fees and expenses. The Prudential Notes are secured against a first lien on Navigation's crude oil and natural gas properties and other assets.

The borrowing base under the Prudential Senior Notes was $20.7 million at December 31, 2024. The borrowing base is redetermined twice per year, on or about March 31 and September 30. Fundings under the Prudential Senior Notes are classified as Eurodollar Loans and bear interest at a benchmark of Adjusted Term SOFR. Adjusted Term SOFR is defined as Term SOFR, plus the applicable margin, plus 0.15% or 0.25%, dependent upon the LIBOR screen rate replaced term. Additionally, at any time the commitments under the Prudential Subordinated Notes have not been terminated, Navigation is required to pay a portion of such interest due on the Prudential Subordinated Notes equal to the payment-in-kind ("PIK") by adding the amount of the PIK to the principal balance of the Prudential Subordinated Notes, not to exceed 1.0%. All cash interest is payable quarterly in arrears. The interest rate on the Prudential Senior Notes was 13.76% at December 31, 2024.

The Prudential Notes contain various financial covenants, each defined within the purchase agreements for the Prudential Senior Notes and the Prudential Subordinated Notes, including a Total Leverage Ratio, Senior Leverage Ratio, Interest Coverage Ratio, and Asset Coverage Ratio (collectively, the "Financial Covenants"). The following table summarizes the Financial Covenants of the Prudential Notes for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total** | **Senior** | **Interest** | **Asset**  |
|  | **Leverage** | **Leverage** | **Coverage** | **Coverage** |
| *At December 31, 2024:* | **Ratio** | **Ratio** | **Ratio** | **Ratio** |
| Prudential Senior Notes | 4.00 to 1.00  | 2.50 to 1.00  | 1.75 to 1.00  | 1.50 to 1.00  |
| Prudential Subordinated Notes | 4.50 to 1.00  | 3.00 to 1.00  | 1.25 to 1.00  | 1.50 to 1.00  |

---

Additionally, the Prudential Notes require Navigation to maintain unrestricted cash of at least $0.75 million and limit Navigation's ability to create liens securing certain indebtedness, enter into certain sale-leaseback transactions, or consolidate, merge or transfer certain assets, among other matters. These covenants are subject to a number of important exceptions and qualifications.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

As of December 31, 2024, North Peak Oil and Gas did not meet several of the covenant requirements listed above and, as a result, was not in compliance with the Prudential Financial Covenants. As of December 31, 2024, North Peak Oil and Gas obtained a waiver for the noncompliance, and as of January 11, 2025, it amended the Prudential Senior Notes extending the maturity to June 30, 2025.

***Debt Issuance Costs***

Unamortized debt issuance costs were $2.5 million and $4.5 million at December 31, 2024 and 2023, respectively. Unamortized debt issuance costs include $0.1 million on unamortized debt issuance costs associated with the Prudential Senior Notes included in "Other assets" in the combined balance sheets. Amortization of debt issuance costs were $2.1 million for the years ended December 31, 2024 and 2023, respectively. Future amortization of debt issuance costs is as follows (in thousands):

---

| | |
|:---|:---|
| 2025 | $1569 |
| 2026 | 944 |
| Total | $2513 |

---

**Note 8. Leases**

***ASC 842***

In accordance with ASU 2016-02, *Leases* ("ASC 842"), North Peak Oil and Gas records a right-of-use ("ROU") asset and corresponding liability on the combined balance sheets for all operating or finance leases with a lease term in excess of 12 months.

North Peak Oil and Gas elected the accounting policy election as described in ASC 842-20-25-2 to not apply the recognition requirements within ASC 842 to short-term leases for all applicable asset classes.

***Lease Recognition***

North Peak Oil and Gas enters into contractual lease arrangements related to drilling rigs, compressors and other equipment related to the exploration, development and production of oil and gas from third-party lessors. All current leases are short-term, with an initial term of 12 months or less and are not recorded on the combined balance sheets. North Peak Oil and Gas recognizes lease expense in the combined statements of income for these short-term leases on a straight-line basis over the lease term. The lease costs of North Peak Oil and Gas were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Lease costs included in combined statements of operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-term lease costs | $11185 | $11317 |
| Total lease costs | $11185 | $11317 |

---

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

**Note 9. Fair Value Measurements**

The carrying values of cash, accounts receivable, other current assets, accounts payable and accrued expenses included in the accompanying combined balance sheets approximated fair value at December 31, 2024 and 2023 due to their short-term nature. Therefore, such financial assets and liabilities are not presented in the following table.

The following table provides the carrying value and fair value measurement information for certain of the financial assets and liabilities of North Peak Oil and Gas (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** |
|  | <br>**Carrying** <br>**Amount** | <br>**Total**<br>**Fair Value** | **Level 1**<br>**Inputs** | **Level 2**<br>**Inputs** | **Level 3** <br>**Inputs** |
| December 31, 2024 assets (liabilities): | December 31, 2024 assets (liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivatives | $2659 | $2659 | $― | $2659 | $― |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | $(5093) | $(5093) | $― | $― | $(5093) |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term debt | $(81532) | $(81532) | $― | $(81532) | $― |
| December 31, 2023 assets (liabilities): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivatives | $7765 | $7765 | $― | $7765 | $― |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | $(4874) | $(4874) | $― | $― | $(4874) |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term debt | $(114900) | $(114706) | $― | $(114706) | $― |

---

The following methods and assumptions were used to estimate the fair values in the table above.

***Level 2 Fair Value Measurements***

*Commodity derivatives* – The fair value of commodity derivatives is estimated using observable market data and assumptions with adjustments based on widely accepted valuation techniques. A discounted cash flow analysis on the expected cash flows of each derivative reflects the contractual terms of the derivative, including period to maturity, and uses observable market-based inputs, including interest rate curves, implied volatilities, transaction size, counterparty credit quality and the estimated current replacement cost of the derivative instrument.

*Long-term debt* – The debt instruments of North Peak Oil and Gas do not trade actively in an established market. The fair value of the EOC Loan, Amegy Notes and the Prudential Senior Notes approximate carrying value as both facilities contain variable interest rates. The fair value of the Prudential Subordinated Notes was $15.7 million at December 31, 2024, and was estimated based on debt with similar terms and maturity.

***Level 3 Fair Value Measurements***

*Asset retirement obligations –* The fair value of asset retirement obligations is estimated using discounted cash flow projections using numerous estimates, assumptions and judgments regarding such factors as the existence of a legal obligation, estimated plugging and abandonment costs, timing of remediation, the credit-adjusted risk-free rate and inflation rate.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Assets Measured at Fair Value on a Nonrecurring Basis***

Certain assets are reported at fair value on a nonrecurring basis in the combined financial statements. The following methods and assumptions were used to estimate the fair values for those assets.

*Asset impairments* – Proved crude oil and natural gas properties are reviewed for impairment on a field-by-field basis each quarter. The estimated future cash flows expected in connection with the field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. If the carrying amount of the field exceeds its estimated undiscounted future cash flows, the carrying amount of the field is reduced to its estimated fair value. Risk-adjusted probable and possible reserves may be taken into consideration when determining estimated future net cash flows and fair value when such reserves exist and are economically recoverable. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. Significant unobservable inputs (Level 3) utilized in the determination of discounted future net cash flows include future commodity prices adjusted for differentials, forecasted production based on decline curve analysis, estimated future operating and development costs, property ownership interests, and a 10.0% discount rate.

Unobservable inputs to the fair value assessments of North Peak Oil and Gas are reviewed and revised as warranted based on a number of factors, including reservoir performance, new drilling, crude oil and natural gas prices, changes in costs, technological advances, new geological or geophysical data, or other economic factors.

During the year ended December 31, 2023, North Peak Oil and Gas recorded proved property impairments of $16.4 million. The Company did not have any proved property impairments during 2024.

Certain unproved crude oil and natural gas properties were impaired during the years ended December 31, 2024 and 2023, reflecting recurring amortization of undeveloped leasehold costs on properties North Peak Oil and Gas expects will not be transferred to proved properties over the lives of the leases based on drilling plans, experience of successful drilling, and the average holding period.

The following table sets forth the non-cash impairments of both proved and unproved properties (in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2024** | **2023** |
| Proved property impairments | $― | $16378 |
| Unproved property impairments | 3894 | 4696 |
| Impairment expense | $3894 | $21074 |

---

**Note 10. Members' Equity and Incentive Units**

***Profits and Losses Allocation***

Profits and losses will be determined and allocated with respect to each fiscal year as of the end of such fiscal year. Profits and losses will be allocated among the members in a manner such that the adjusted capital account for each member is, as nearly as possible, equal (proportionately) to the distributions that would be made to such member if North Peak Oil and Gas were dissolved.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

As of December 31, 2024, North Peak Oil and Gas had the following equity commitments (amounts in thousands):

---

| | | |
|:---|:---|:---|
|  | **Equity**<br>**Committed** | **Equity**<br>**Percentage** |
| Juniper \* | $609220 | 99.8% |
| Boomtown Oil, LLC | 1033 | 0.2% |
| Century Natural Resources, LLC | 225 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | $610478 | 100.0% |

---

\* Juniper, as denoted in the table above, includes Juniper CAR Holdings, LLC; Juniper Century Holdings, LLC; Juniper Capital II, LP; Juniper Capital III, LP; Juniper North Peak Partners, LP; NPR Partners; PHR Holdings and Juniper NPR Holdings, LLC.

***Profits Interest Units***

North Peak Oil and Gas has issued to certain members of management Class B units, which are designed as profits interests. Class B unit holders are entitled to an increased share of the distributable cash flow generated by North Peak Oil and Gas in the event certain performance hurdles are met. Profits interests, such as the Class B units, do not typically have value until a major asset liquidation event occurs, and a major liquidation event is not deemed probable until such event has actually occurred under U.S. GAAP. Based upon the sharing ratios set forth in the operating agreements, the limited history of North Peak Oil and Gas and the fact no liquidation event has occurred, the realization of value for the Class B unitholders is not probable at the date of grant. As such, no compensation expense was recorded during the years ended December 31, 2024 and 2023. As of December 31, 2024 and 2023, North Peak Oil and Gas had 1,150 Class B units outstanding.

**Note 11. Commitments and Contingencies**

***Environmental Remediation***

Various federal, state and local laws and regulations covering the discharge of materials into the environment, or otherwise relating to the protection of the environment, may affect the operations and the cost of crude oil and natural gas exploration, development, and production operations of North Peak Oil and Gas. North Peak Oil and Gas does not anticipate that it will be required in the near future to expend significant amounts for compliance with such federal, state and local laws and regulations and therefore no amounts have been accrued for such purposes.

***Litigation***

North Peak Oil and Gas is involved in various legal proceedings including, but not limited to, commercial disputes, claims from royalty and surface owners, property damage claims, personal injury claims, regulatory compliance matters, disputes with tax authorities and other matters. While the outcome of these legal matters cannot be predicted with certainty, North Peak Oil and Gas does not expect them to have a material effect on its financial condition, results of operations or cash flows, other than as discussed below.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

North Peak was involved in litigation regarding ownership of revenue and working interests for certain wells during the year ended December 31, 2021. North Peak received an unfavorable judgment from the Court in the matter and as a result, accrued for the entire amount of the judgment of $4.1 million in the combined balance sheet at December 31, 2021. On October 26, 2022, the Wyoming Supreme Court ruled in favor of North Peak and remanded the case back to the Court for further consideration, including determination of the disbursement of funds in accordance with the ruling by the Wyoming Supreme Court. As a result of that ruling, the accrual was reduced to $3.7 million at December 31, 2022, resulting in a gain on litigation of $0.4 million. On May 23, 2023, the District Court issued its final ruling in favor of North Peak resulting in all previously restricted funds to be returned to North Peak. As part of the final ruling, North Peak was required by the District Court to pay $1.7 million of undisputed royalties to various third parties. North Peak Oil recorded a $2.0 million gain on legal judgment as it had accrued for the loss in a previous period of $3.7 million. This payment is included in other income in the combined statements of operations.

**Note 12. Concentrations of Credit Risk**

North Peak Oil and Gas is subject to credit risk resulting from the concentration of its crude oil, natural gas and NGL receivables with significant purchasers. Receivables from purchasers are generally unsecured as North Peak Oil and Gas does not require collateral. For the years ended December 31, 2024 and 2023, two purchasers and three purchasers accounted for 86%, respectively, of crude oil, natural gas, and NGL sales. North Peak Oil and Gas does not believe the loss of any single purchaser would materially impact its financial position, results of operations, or cash flows as crude oil, natural gas and NGLs are fungible products with well-established markets and numerous purchasers in its areas of operations. For the years ended December 31, 2024 and 2023, North Peak Oil and Gas experienced no such credit losses.

Derivative financial instruments are generally executed with major financial institutions that expose North Peak Oil and Gas to market and credit risks and which may, at times, be concentrated with certain counterparties. The credit worthiness of the counterparties is subject to continual review. North Peak Oil and Gas also has netting arrangements in place with counterparties to reduce its credit exposure. North Peak Oil and Gas has not historically experienced any losses from such instruments.

North Peak Oil and Gas maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. North Peak Oil and Gas has not experienced any losses related to amounts in excess of FDIC limits and believes it is not exposed to significant credit risk in this area.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

**Note 13. Net Income Per Share**

The following table reconciles net loss from North Peak Oil and Gas and weighted-average Class A shares outstanding used in the calculations of basic and diluted net income per share (in thousands, except share and per share amounts):

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2024** | **2023** |
| Net income attributable to North Peak Oil and Gas: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net (loss) income | $(4353) | $21403 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: income allocated to participating securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to North Peak Oil and Gas | $(4353) | $21403 |
| Class A weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted | 584517 | 544675 |
| Net income per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted | $(7.45) | $39.29 |

---

For the years ended December 31, 2024 and 2023, the performance hurdles for Class B units to participate in the profits of North Peak Oil and Gas were not met. As a result, no income is allocable to the Class B units for the years ended December 31, 2024 and 2023 for purposes of basic and diluted earnings per share.

**Note 14. Transactions with Affiliates**

For the years ended December 31, 2024 and 2023, North Peak Oil and Gas incurred management fees for certain operational and administrative functions of $7.3 million and $6.8 million, respectively. These management fees are included in affiliate expense on the combined statements of operations. For the years ended December 31, 2024 and 2023, management fees were overfunded by $0.1 million and $0.3 million, respectively.

**Note 15. Supplemental Disclosures to Combined Financial Statements**

***Cash and Cash Equivalents***

The following table reconciles cash and cash equivalents on the combined balance sheets to cash, cash equivalents and restricted cash on the combined statements of cash flows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Cash and cash equivalents | $1780 | $1192 |
| Restricted cash |  |  |
| Total cash, cash equivalents and restricted cash | $1780 | $1192 |

---

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Supplemental Cash Flow Information***

The following table provides certain supplemental cash flow information for the periods indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Supplemental Disclosure of Cash Flow Information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest paid | $19455 | $21521 |
| Supplemental Disclosure of Non-Cash Information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Additions to oil and natural gas properties included in accounts payable and accrued liabilities | $5 | $1176 |
| &nbsp;&nbsp;&nbsp;&nbsp; Revisions and additions (liabilities settled) to asset retirement obligations, net | $41 | $185 |

---

**Note 16. Subsequent Events**

North Peak Oil and Gas has evaluated all subsequent events through June 2, 2025, the date the accompanying financial statements were issued.

On January 11, 2025, the combined entities of Century were legally consolidated as Century Oil and Gas Holdings, LLC. Also on January 11, 2025, the Company amended the Prudential Senior Notes to extend the maturity date to June 30, 2025. On January 13, 2025, the Company amended the EOC Loan to waive the current ratio through March 31, 2025 and adjust certain minimum hedging requirements. Also on January 13, 2025, the Company amended the line of credit to waive the current ratio through March 31, 2025.

On January 14, 2025, the Company entered into a merger agreement with Amplify Energy Corp. ("Amplify") in which Amplify would issue North Peak Oil and Gas 26.7 million shares (39.0% outstanding shares) of Amplify common stock, par value $0.01 per share, and assume approximately $133.0 million in net debt. On April 15, 2025, Amplify and North Peak Oil and Gas entered into a mutual termination agreement to terminate the merger in light of extraordinary volatility in the market. As part of the termination, the Company received a cash payment of $0.8 million in lieu of any termination fees.

Since year-end, the Company has received additional capital contributions of $24.5 million.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

**Note 17. Supplemental Crude Oil and Natural Gas Information (Unaudited)**

***Costs Incurred***

The following tables reflect the costs incurred in oil and gas property acquisition, exploration and development activities (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
| Property acquisition costs |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 688 | 10738 |
| Exploration costs |  | 1914 |
| Development costs | 50481 | 155851 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total costs incurred | $51169 | $168503 |

---

***Results of Operations***

The following table presents the results of operations of crude oil, natural gas and NGL producing activities (excluding corporate overhead and interest costs) for the periods indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Crude oil, natural gas, and NGL sales, net | $158326 | $204030 |
| Production costs: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease operating and workover expenses | 49096 | 48462 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exploration expense | 152 | 414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Severance taxes | 9273 | 12142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total production costs | 58521 | 61018 |
| Other costs: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and amortization expense | 55201 | 70085 |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment expense | 3894 | 21074 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax expense/(benefit) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other costs | 59095 | 91159 |
| Results of operations | $40710 | $51853 |

---

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

***Net Proved Oil, NGL and Natural Gas Reserves***

The reserves engineers for North Peak Oil and Gas for the years ended December 31, 2024 and 2023, was DeGolyer and MacNaughton.

In accordance with SEC regulations, the reserves as of December 31, 2024 and 2023 were estimated using realized prices, which reflect adjustments to the benchmark prices for quality, certain transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the delivery point. North Peak Oil and Gas reports reserves in three streams; crude oil, natural gas and NGLs.

The SEC has defined proved reserves as the estimated quantities of crude oil, natural gas, and NGLs that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. The process of estimating crude oil, natural gas and NGLs reserves is complex, requiring significant decisions in the evaluation of available geological, geophysical, engineering and economic data. The data for a given property may also change substantially over time as a result of numerous factors, including additional development activity, evolving production history and a continual reassessment of the viability of production under changing economic conditions. As a result, material revisions to existing reserve estimates occur from time to time. Although every reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data for various properties increase the likelihood of significant changes in these estimates. If such changes are material, they could significantly affect future amortization of capitalized costs and result in impairment of assets that may be material.

The following tables provide an analysis of the changes in estimated proved reserve quantities of crude oil, natural gas and NGLs for the years ended December 31, 2024 and 2023, all of which are located within the United States:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
|  | **Crude Oil**<br>**(Bbl)** | **Natural Gas**<br>**(Mcf)** | **Liquids**<br>**(Bbl)** | **Total**<br>**Boe** |
| Proved reserves as of December 31, 2023 | 74717956 | 149324342 | 18109662 | 117715008 |
| &nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | (37251812) | (105079527) | (11514107) | (66279173) |
| &nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries and other additions | 1032386 | 597731 | 128263 | 1260271 |
| &nbsp;&nbsp;&nbsp;&nbsp; Production | (2145104) | (1534097) | (234205) | (2634992) |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of minerals in place | ― | ― | ― | ― |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of minerals in place | ― | ― | ― | ― |
| Proved reserves as of December 31, 2024 | 36353426 | 43308449 | 6489613 | 50061114 |
| Proved developed reserves |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 13709050 | 10054206 | 1684399 | 17069149 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of year | 14048447 | 10904578 | 1979859 | 17845736 |
| Proved undeveloped reserves |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 61008906 | 139270136 | 16425263 | 100645859 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of year | 22304979 | 32403871 | 4509754 | 32215378 |

---

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
|  | **Crude Oil**<br>**(Bbl)** | **Natural Gas**<br>**(Mcf)** | **Liquids** <br>**(Bbl)** | **Total**<br>**Boe** |
| Proved reserves as of December 31, 2022 | 103675666 | 176888985 | 25285691 | 158442854 |
| &nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | (29497910) | (27715077) | (7213317) | (41330406) |
| &nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries and other additions | 3235035 | 1773191 | 284815 | 3815381 |
| &nbsp;&nbsp;&nbsp;&nbsp; Production | (2693772) | (1622572) | (247482) | (3211683) |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of minerals in place | (1063) | (185) | (45) | (1138) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of minerals in place | ― | ― | ― | ― |
| Proved reserves as of December 31, 2023 | 74717956 | 149324342 | 18109662 | 117715008 |
| Proved developed reserves |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 13483470 | 9763294 | 1819367 | 16930052 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of year | 13709050 | 10054206 | 1684399 | 17069149 |
| Proved undeveloped reserves |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 90192196 | 167125691 | 23466324 | 141512802 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of year | 61008906 | 139270136 | 16425263 | 100645859 |

---

For the year ended December 31, 2024, North Peak Oil and Gas had downward revisions of previous estimates of 66.3 MMBoe and this was primarily attributable downgrading 163 PUDs related to changes in the overall development plans of North Peak Oil and Gas.

For the year ended December 31, 2024, extensions, discoveries and other additions resulted primarily from 4 new proved undeveloped locations for 1,260 BOE.

***Standardized measure of discounted future net cash flows relating to proved crude oil and natural gas reserves***

The standardized measure of discounted future net cash flows does not purport to be, nor should it be interpreted to present, the fair value of the oil, NGL and natural gas reserves of the property. An estimate of fair value would take into account, among other things, the recovery of reserves not presently classified as proved, the value of proved properties and consideration of expected future economic and operating conditions.

The estimates of future cash flows and future production and development costs as of December 31, 2024 and 2023 are based on realized prices, which reflect adjustments to the benchmark prices for quality, certain transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the delivery point. All realized prices are held flat over the forecast period for all reserve categories in calculating the discounted future net cash flows. Any effect from the commodity hedges is excluded. In accordance with SEC regulations, the proved reserves were anticipated to be economically producible from the "as of date" forward based on existing economic conditions, including prices and costs at which economic producibility from a reservoir was determined. These costs, held flat over the forecast period, include development costs, operating costs, ad valorem and production taxes and abandonment costs after salvage. Future income tax expenses would have been computed using the appropriate year-end statutory tax rates applied to the future pretax net cash flows from proved oil, NGL and natural gas reserves, less the tax basis of the oil and natural gas properties of North Peak Oil and Gas. The estimated future net cash flows are then discounted at a rate of 10%.

**NORTH PEAK OIL AND GAS**

Notes to Combined Financial Statements

December 31, 2024 and 2023

The following table presents the standardized measure of discounted future net cash flows relating to proved oil, NGL and natural gas reserves for the periods presented (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Future cash inflows | $2916634 | $6324883 |
| Future production costs | (1213282) | (2663000) |
| Future development and abandonment costs | (425523) | (1373658) |
| Future income taxes | ― | ― |
| Future net cash flows | 1277829 | 2288225 |
| 10% annual discount for estimated timing of cash flows | (664906) | (1257168) |
| Standardized measure of discounted future net cash flows | $612923 | $1031057 |

---

It is not intended that the FASB's standardized measure of discounted future net cash flows represent the fair market value of the proved reserves of North Peak Oil and Gas. North Peak Oil and Gas cautions that the disclosures shown are based on estimates of proved reserve quantities and future production schedules which are inherently imprecise and subject to revision, and the 10% discount rate is arbitrary. In addition, prices and costs as of the measurement date are used in the determinations, and no value may be assigned to probable or possible reserves.

The following table presents the changes in the standardized measure of discounted future net cash flows relating to proved oil, NGL and natural gas reserves for the periods presented (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Standardized measure of discounted future net cash flows at January 1 | $1031057 | $2562842 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in prices and production costs | 55167 | (1030771) |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in estimated future development and abandonment costs | 64005 | 28366 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of crude oil and natural gas produced, net of production costs | (92176) | (129107) |
| &nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries and improved recoveries, less related costs | 13090 | 45428 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases (sales) of minerals in place, net | ― |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous quantity estimates | (477557) | (703721) |
| &nbsp;&nbsp;&nbsp;&nbsp; Development costs incurred during the period | 49837 | 76798 |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in income taxes | ― | ― |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount | 103106 | 256284 |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in timing of estimated future production and other | (133606) | (75062) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change | (418134) | (1531785) |
| Standardized measure of discounted future net cash flows at December 31 | $612923 | $1031057 |

---

Estimates of economically recoverable oil, NGL and natural gas reserves and of future net cash flows are based upon a number of variable factors and assumptions, all of which are, to some degree, subjective and may vary considerably from actual results. Therefore, actual production, revenues, development and operating expenditures may not occur as estimated. The reserve data are estimates only, are subject to many uncertainties and are based on data gained from production histories and on assumptions as to geologic formations and other matters. Actual quantities of oil, NGL and natural gas may differ materially from the amounts estimated.

## Exhibit 99.2

**EXHIBIT 99.2**

**NORTH PEAK OIL AND GAS**

Condensed Combined Financial Statements

As of September 30, 2025 (Unaudited) and December 31, 2024 (Audited) and

For the Nine Months Ended September 30, 2025 (Unaudited) and 2024 (Unaudited)

**NORTH PEAK OIL AND GAS**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| Condensed Combined Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 (Audited) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statements of Operations for the Nine Months Ended September 30, 2025 (Unaudited) and 2024 (Unaudited) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statements of Changes in Members' Equity for the Nine Months Ended September 30, 2025 (Unaudited) and 2024 Unaudited) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statements of Cash Flows for the Nine Months Ended September 30, 2025 (Unaudited) and 2024 (Unaudited) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes to Condensed Combined Financial Statements | 6 |

---

**NORTH PEAK OIL AND GAS**

Condensed Combined Balance Sheets

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025**<br> ***(Unaudited)*** | **December 31, 2024**<br> ***(Audited)*** |
|  | *(in thousands)* | *(in thousands)* |
| ASSETS |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $911 | $1780 |
| &nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 355 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 10704 | 17630 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliate receivable | 166 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, current | 4569 | 2076 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory |  | 2168 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 692 | 880 |
| Total current assets | 17397 | 24619 |
| Oil and natural gas property and equipment, based on successful efforts method of accounting, net | 542075 | 567267 |
| Commodity derivative asset | 1516 | 583 |
| Other assets | 467 | 562 |
| TOTAL ASSETS | $561455 | $593031 |
| LIABILITIES AND MEMBERS' EQUITY |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $35780 | $56660 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued legal judgement |  | 950 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 1634 | 2050 |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, current portion | 103408 | 58642 |
| Total current liabilities | 140822 | 118302 |
| Long-term debt, net |  | 78543 |
| Other noncurrent liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 3668 | 3043 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other long-term liabilities  | 2243 | 2268 |
| Total other noncurrent liabilities | 5911 | 5311 |
| Commitments and contingencies |  |  |
| Members' equity | 414722 | 390875 |
| TOTAL LIABILITIES AND MEMBERS' EQUITY | $561455 | $593031 |

---

The accompanying notes are an integral part of these condensed combined financial statements.

**NORTH PEAK OIL AND GAS**

Condensed Combined Statements of Operations

*(Unaudited)*

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended**<br> **September 30,** | **Nine Months Ended**<br> **September 30,** |
|  | **2025** | **2024** |
|  | *(in thousands, except for per share and share information)* | *(in thousands, except for per share and share information)* |
| REVENUES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Crude oil, natural gas, and NGL sales, net | $78744 | $123277 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on derivatives, net | 7898 | (148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 86642 | 123129 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease operating and workover expenses | 30647 | 35593 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exploration expense | 162 | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes | 10196 | 16337 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and amortization | 36256 | 50559 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion expense | 209 | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment of oil and natural gas properties |  | 233 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal |  | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 4786 | 1051 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliate expenses | 3964 | 5419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 86220 | 109596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from operations | 422 | 13533 |
| OTHER INCOME (EXPENSE): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income, net | 1910 | 3314 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on sale of assets | (1686) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | (13678) | (16078) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expense | (13454) | (12763) |
| NET INCOME (LOSS) | $(13032) | $770 |
| BASIC NET INCOME (LOSS) PER SHARE | $(29.29) | $1.32 |
| DILUTED NET INCOME (LOSS) PER SHARE | $(29.29) | $1.32 |
| CLASS A WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED | 444871 | 584469 |

---

The accompanying notes are an integral part of these condensed combined financial statements.

**NORTH PEAK OIL AND GAS**

Condensed Combined Statements of Changes in Members' Equity

*(Unaudited)*

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
|  | *(in thousands)* | *(in thousands)* |
| Beginning Balance | $390875 | $394523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contributions | 36879 | 705 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | (13032) | 770 |
| Ending Balance | $414722 | $395998 |

---

The accompanying notes are an integral part of these condensed combined financial statements.

**NORTH PEAK OIL AND GAS**

Condensed Combined Statements of Cash Flows

*(Unaudited)*

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended**<br> **September 30,** | **Nine Months Ended**<br> **September 30,** |
|  | **2025** | **2024** |
|  | *(in thousands)* | *(in thousands)* |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(13032) | $770 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and amortization | 36256 | 50559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion expense | 209 | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of oil and natural gas properties |  | 233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of oil and natural gas properties |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of assets | 1686 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on derivatives, net | (7898) | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash settlements on commodity derivatives | 4473 | (1992) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 1037 | 1520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment-in-kind interest | 116 | 115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable and affiliate receivable | 6845 | 5485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 188 | (1430) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 95 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory |  | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | (22630) | (11341) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other long-term liabilities | (25) | (9) |
| Net cash provided by (used in) operating activities | $7320 | $44224 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Additions to oil and natural gas properties | $(10263) | $(30976) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds for the sale of assets | 482 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of oil and gas properties |  | 781 |
| Net cash used in investing activities | $(9781) | $(30195) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Contributions | $36879 | $705 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payment of debt issuance costs |  | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from long-term debt | 2593 | 3208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments on long-term debt | (37525) | (17260) |
| Net cash provided by (used in) financing activities | $1947 | $(13350) |
| Net (decrease) increase in cash, cash equivalents and restricted cash | $(514) | $679 |
| Cash, cash equivalents and restricted cash at beginning of period | 1780 | 1192 |
| Cash, cash equivalents and restricted cash at end of period | $1266 | $1871 |

---

The accompanying notes are an integral part of these condensed combined financial statements.

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

**Note 1. Organization and basis of presentation**

***Description of the Company***

The accompanying unaudited and audited condensed combined financial statements and associated footnotes presented herein represent the financial statements of Century Oil and Gas Holdings, LLC and subsidiaries ("Century"), Navigation Powder River, LLC and subsidiaries ("Navigation") and North Peak Oil & Gas Holdings, LLC and subsidiaries ("North Peak"). The respective corporate offices of Century, Navigation and North Peak are each located in Houston, Texas. Collectively, Century, Navigation and North Peak are herein referred to as "North Peak Oil and Gas".

North Peak Oil and Gas is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids ("NGLs") primarily in the Denver-Julesburg ("DJ") Basin, located in Colorado and Wyoming, as well as the Powder River Basin ("PRB"), located in Wyoming.

The crude oil and natural gas and production activities of North Peak Oil and Gas are solely focused in the U.S. North Peak Oil and Gas aggregates its U.S. operating segments into one reporting segment, exploration and production, due to the similarity of these operations.

North Peak Oil and Gas currently has negative working capital and is operating with a net loss for the nine months ended September 30, 2025. It has additional committed capital from its members to complete the drilling program that is ongoing. Also, North Peak Oil and Gas currently has production. Management believes that with these commitments and continued improvements in production, it will be able to continue as a going concern for at least one year from the issuance of these condensed combined financial statements.

On November 4, 2025, it was announced that the Company merged with PEDEVCO Corp. As consideration for the merger, PEDEVCO issued 10,650,000 shares of PEDEVCO Series A Convertible Preferred stock, convertible into 106,500,000 shares of common stock of PEDEVCO and paid off the Company's outstanding current and long-term debt with all parties.

***Basis of Presentation of Combined Financial Statements***

The unaudited condensed combined financial statements were derived from the historical accounting records of North Peak Oil and Gas and reflect the historical financial position, results of operations and cash flows for the periods described herein. The unaudited condensed combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and include the accounts of North Peak Oil and Gas and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon combination.

***Significant accounting policies***

Other than the "Restricted Cash" accounting policy below, there have been no material changes in North Peak Oil and Gas' significant accounting policies during the nine months ended September 30, 2025. See "— *Note 1. Organization and Summary of Significant Accounting Policies*" in the 2024 Annual Report for discussion of significant accounting policies.

***Restricted Cash***

Restricted cash represents funds held by the Company for operator bonds and by third parties in escrow for suspended revenues.

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

***Disaggregation of Revenue***

The following table presents the disaggregation of crude oil, natural gas and NGLs revenue of North Peak Oil and Gas (in thousands):

---

| | | |
|:---|:---|:---|
|  | **The Nine Months Ended**<br> **September 30,** | **The Nine Months Ended**<br> **September 30,** |
|  | **2025** | **2024** |
| Crude oil | $72613 | $116679 |
| Natural gas | 2014 | 1159 |
| NGLs | 4117 | 5439 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total crude oil, natural gas and NGL sales, net | $78744 | $123277 |

---

**Note 2. New Accounting Standards**

In March 2024, the FASB issued ASU 2024-01, "*Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards"* ("ASU 2024-01"). The Private Company Council and other stakeholders noted diversity in practice in accounting for profits interest and similar awards as share-based payment arrangements under Topic 718 or similar to cash bonus or profit-sharing arrangements (Topic 710, Compensation—General, or other Topics). ASU 2024-01 addresses these differences by providing an illustrative example intended to demonstrate how entities should account for them under Topic 718. The amendments are effective for annual periods beginning after December 15, 2025, and interim periods within those annual periods with early adoption permitted. The amendments should be applied either (1) retrospectively to all prior periods presented in the financial statements, or (2) prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments. North Peak Oil and Gas is currently assessing the impacts of ASU 2024-01 but does not believe it will have a material effect on net income, cash flows or retained earnings.

In July 2025, the FASB issued ASU 2025-05, *"Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets"* ("ASU 2025-05"), which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Accounting Standards Codification Topic 606, *Revenue from Contracts with Customers*. The practical expedient permits an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the current accounts receivable and current contract assets. ASU 2025-05 is effective for annual and interim periods beginning after December 15, 2025 on a prospective basis, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance on the consolidated financial statements and related disclosures.

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

**Note 3. Derivative Financial Instruments**

***Commodity Derivatives***

As of September 30, 2025, North Peak Oil and Gas had the following open crude oil derivative positions:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2026** | **2027** |
| **WTI NYMEX Sold Swaps** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notional Quantity (Bbls) | 170000 | 582000 | 120000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Weighted Average Fixed Price ($/Bbl) | $67.15 | $66.24 | $64.90 |
| **WTI NYMEX Purchased Puts** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notional Quantity (Bbls) | 114500 | 199500 | 20500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Weighted Average Strike Price ($/Bbl) | $66.48 | $63.12 | $65.00 |
| **WTI NYMEX Sold Calls** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notional Quantity (Bbls) | 114500 | 199500 | 20500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Weighted Average Strike Price ($/Bbl) | $75.35 | $74.84 | $76.15 |

---

As of September 30, 2025, North Peak Oil and Gas did not have any open natural gas or NGL derivative positions.

***Financial Statement Presentation***

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the condensed combined balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the condensed combined balance sheets. The table below presents a summary of these positions as of September 30, 2025 and December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Gross Fair Value** | **Amounts Netted** | **Net Fair Value** |
| Commodity derivative assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, current | $4840 | $(271) | $4569 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, noncurrent | 1612 | (96) | 1516 |
| Total commodity derivative assets | $6452 | $(367) | $6085 |
| Commodity derivative liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, current | $(271) | $271 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, noncurrent | (96) | 96 |  |
| Total commodity derivative liabilities | $(367) | $367 | $— |

---

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross Fair Value** | **Amounts Netted** | **Net Fair Value** |
| Commodity derivative assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, current | $3730 | $(1654) | $2076 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative asset, noncurrent | 2444 | (1861) | 583 |
| Total commodity derivative assets | $6174 | $(3515) | $2659 |
| Commodity derivative liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, current | $(1654) | $1654 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative liability, noncurrent | (1861) | 1861 |  |
| Total commodity derivative liabilities | $(3515) | $3515 | $— |

---

**Note 4. Net Income (Loss) Per Share**

The following table reconciles net loss from North Peak Oil and Gas and weighted-average Class A shares outstanding used in the calculations of basic and diluted net income (loss) per share (in thousands, except share and per share amounts):

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| Net Income (Loss) Attributable to North Peak Oil and Gas: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(13032) | $770 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: income allocated to participating securities |  |  |
| Net income (loss) attributable to North Peak Oil and Gas | $(13032) | $770 |
| Class A weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted | 444871 | 584469 |
| Net income (loss) per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted | $(29.29) | $1.32 |

---

**Note 5. Members' Equity and Incentive Units**

***Profits and Losses Allocation***

Profits and losses will be determined and allocated with respect to each fiscal period as of the end of such fiscal period. Profits and losses will be allocated among the members in a manner such that the adjusted capital account for each member is, as nearly as possible, equal (proportionately) to the distributions that would be made to such member if North Peak Oil and Gas were dissolved.

***Profits Interest Units***

North Peak Oil and Gas has issued to certain members of management Class B units, which are designed as profits interests. Class B unit holders are entitled to an increased share of the distributable cash flow generated by North Peak Oil and Gas in the event certain performance hurdles are met. Profits interests, such as the Class B units, do not typically have value until a major asset liquidation event occurs, and a major liquidation event is not deemed probable until such event has actually occurred under U.S. GAAP. Based upon the sharing ratios set forth in the operating agreements, the limited history of North Peak Oil and Gas and the fact no liquidation event had occurred as of the date of these financials, the realization of value for the Class B unitholders is not probable at the date of grant. As such, no compensation expense was recorded during the periods ended September 30, 2025 and 2024.

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

On July 15, 2025, Boomtown Oil III, LLC resigned as the Managing Member of North Peak Oil and Gas Holdings, LLC and forfeited its 1,000 Class B Units, whether vested or unvested. As of September 30, 2025 and December 31, 2024, North Peak Oil and Gas had 150 and 1,150 Class B units outstanding, respectively.

**Note 6. Supplemental Disclosures of Condensed Combined Balance Sheets and Condensed Combined Statement of Cash Flows**

***Accounts Payable and Accrued Liabilities***

Accounts payable and accrued liabilities consisted of the following at the dates indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025**  | **December 31, 2024**  |
| Accounts payable | $11882 | $12702 |
| Production and ad valorem taxes  | 3543 | 16021 |
| Suspense | 14281 | 13578 |
| Accrued lease operating and workover expenses | 1068 | 2657 |
| Owner advances and prepayments | 1416 | 1985 |
| Revenues payable | 3590 | 7630 |
| Accrued compensation costs |  | 2087 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $35780 | $56660 |

---

***Accounts Receivable***

Components of accounts receivable include the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025**  | **December 31, 2024**  |
| Crude oil, natural gas and NGL Sales | $8881 | $15538 |
| Joint interest billings | 1202 | 1424 |
| Other | 621 | 668 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross accounts receivable | 10704 | 17630 |
| Allowance for credit losses | ― | ― |
| &nbsp;&nbsp;&nbsp;&nbsp; Net accounts receivable | $10704 | $17630 |

---

***Supplemental Cash Flows***

The following table provides certain supplemental cash flow information for the periods indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended**<br> **September 30,** | **Nine Months Ended**<br> **September 30,** |
|  | **2025** | **2024** |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest paid | $12112 | $14469 |
| Supplemental Disclosure of Non-Cash Information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Additions to oil and natural gas properties included in accounts payable and accrued liabilities | $2336 | $16545 |

---

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

**Note 7. Oil and Natural Gas Properties**

***Capitalized Costs***

The following table reflects the aggregate capitalized costs associated with North Peak Oil and Gas (in thousands):

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Oil and natural gas properties and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $700862 | $699633 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 250814 | 240979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total oil and natural gas properties and equipment | 951676 | 940612 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Accumulated depreciation, depletion and amortization | (409601) | (373345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil and natural gas properties and equipment, net | $542075 | $567267 |

---

**Note 8. Debt and Related Expenses**

The following table presents the outstanding debt and related expenses of North Peak Oil and Gas (in thousands):

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Prudential Notes | $15609 | $36142 |
| EOC Loan | 82500 | 99375 |
| Amegy Notes | 7038 | 4445 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total debt, including current portion | 105147 | 139962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Debt issuance costs | (1739) | (2777) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total debt, including current portion, net | 103408 | 137185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Prudential Notes, current portion | (15609) | (36142) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: EOC Loan, current portion | (81032) | (22500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amegy Notes, current portion | (6767) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, net | $— | $78543 |

---

***EOC Term Loan***

On August 29, 2022, North Peak entered into a four-year $150.0 million term loan agreement with EOC Partners Advisors, L.P. ("EOC Loan"), managed by Alter Domus, LLC. Proceeds from the EOC Loan were used to fund development drilling, future acquisitions and pay transactions fees and expenses. The EOC Loan is secured against a first lien on North Peak's oil and natural gas properties and other assets. The EOC Loan matures on August 29, 2026, at which time all advances are required to be paid in full. Interest accrues at the Secured Overnight Financing Rate ("SOFR"), or 4.3%, plus an applicable margin of 8.5% and an annual adjustment of 0.15%. As of September 30, 2025, North Peak had an interest rate of 12.95%.

Principal payments of 3.75% of the original balance are due quarterly, and the remaining balance and accrued interest are due at maturity.

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

The EOC Loan contains various financial covenants, defined within the EOC Loan agreement, including a Consolidated Net Leverage Ratio, Current Ratio and Asset Coverage Ratio (collectively, the "EOC Financial Covenants"). The following table summarizes the Financial Covenants of the EOC Loan for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Consolidated Net** | **Current** | **Asset** |
| *At September 30, 2025:* | *At September 30, 2025:* | **Leverage Ratio** | **Ratio** | **Coverage Ratio** |
|  | EOC Loan | 2.50 to 1.00  | 0.25 to 1.00  | 1.50 to 1.00  |

---

Additionally, the EOC Loan restricts North Peak's indebtedness, limits its ability to create liens securing certain indebtedness, make restricted payments, make or permit investments, loans and advances or enter into certain sale-leaseback transactions, among other matters. These covenants are subject to a number of important exceptions and qualifications.

As of September 30, 2025, we did not meet several of the covenant requirements listed above and as a result, were not in compliance with our EOC Financial Covenants. As of September 30, 2025, we obtained a waiver for the noncompliance.

***Amegy Notes***

North Peak has a Senior Secured Revolving Credit Agreement with Zions Bancorporation, N.A. dba Amegy Bank ("Amegy") with a commitment and borrowing base of $10.0 million ("Amegy Notes"). The Amegy Notes are secured against a first lien on North Peak's oil and natural gas properties and other assets. Balances outstanding under the Amegy Notes bear interest at the SOFR plus an applicable margin based on revolver utilization, which was 3.5% as of September 30, 2025. As of September 30, 2025, North Peak had an interest rate of 9.2%. Principal and any accrued interest is due at maturity on October 18, 2025. As noted in "Note 14. Subsequent Events" below, on November 14, 2025, the Company merged with PEDEVCO Corp. and PEDEVCO issued 10,650,000 shares of PEDEVCO Series A Convertible Preferred stock, convertible into 106,500,000 shares of common stock of PEDEVCO, and paid off the Company's outstanding current and long-term debt with all parties, including the Amegy Notes.

The Amegy Notes contain various financial covenants, defined within Amegy Notes agreement, including a Consolidated Net Leverage Ratio, Current Ratio and Asset Coverage Ratio (collectively, the "Amegy Financial Covenants"). The following table summarizes the Financial Covenants of the Amegy Loan for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Consolidated Net** | **Current** | **Asset** |
| *At September 30, 2025:* | *At September 30, 2025:* | **Leverage Ratio** | **Ratio** | **Coverage Ratio** |
|  | Amegy Notes | 2.50 to 1.00  | 0.25 to 1.00  | 1.50 to 1.00  |

---

Additionally, the Amegy Notes restricts North Peak's indebtedness, limits its ability to create liens securing certain indebtedness, make restricted payments, make or permit investments, loans and advances or enter into certain sale-leaseback transactions, among other matters. These covenants are subject to a number of important exceptions and qualifications.

As of September 30, 2025, did not meet several of the covenant requirements listed above and as a result, were not in compliance with our Amegy Financial Covenants. As of September 30, 2025, we obtained a waiver for the noncompliance.

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

***Prudential Notes***

Navigation has an agreement with Prudential Capital Energy Partners, L.P., Prudential Capital Energy Partners Management Fund, L.P. and Prudential Annuities Life Assurance Corporation (collectively, "Prudential") to fund both three-year $40.0 million Senior Secured Revolving Notes ("Prudential Senior Notes") and four-year $15.0 million Senior Subordinated 13.0% Notes ("Prudential Subordinated Notes", collectively, the "Prudential Notes"). Proceeds from the Prudential Notes were used to refinance existing indebtedness under the Citibank Credit Facility, fund development drilling, potential future acquisitions and pay transaction fees and expenses. The Prudential Notes are secured against a first lien on Navigation's crude oil and natural gas properties and other assets. At June 30, 2025, the Company paid off it's Prudential Senior Notes.

At any time the commitments under the Prudential Subordinated Notes have not been terminated, Navigation is required to pay a portion of such interest due on the Prudential Subordinated Notes equal to the payment-in-kind ("PIK") by adding the amount of the PIK to the principal balance of the Prudential Subordinated Notes, not to exceed 1.0%. All cash interest is payable quarterly in arrears.

The Prudential Notes contain various financial covenants, each defined within the purchase agreements for the Prudential Subordinated Notes, including a Total Leverage Ratio, Senior Leverage Ratio, Interest Coverage Ratio, and Asset Coverage Ratio (collectively, the "Financial Covenants"). The following table summarizes the Financial Covenants of the Prudential Notes for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total** | **Senior** | **Interest** | **Asset**  |
|  | **Leverage** | **Leverage** | **Coverage** | **Coverage** |
| *At September 30, 2025:* | **Ratio** | **Ratio** | **Ratio** | **Ratio** |
| Prudential Subordinated Notes | 5.25 to 1.00  | 3.25 to 1.00  | 1.00 to 1.00  | 1.50 to 1.00  |

---

Additionally, the Prudential Notes require Navigation to maintain unrestricted cash of at least $0.8 million and limit Navigation's ability to create liens securing certain indebtedness, enter into certain sale-leaseback transactions, or consolidate, merge or transfer certain assets, among other matters. These covenants are subject to a number of important exceptions and qualifications.

As of September 30, 2025, North Peak Oil and Gas was in compliance with the Prudential Financial Covenants.

**Note 9. Leases**

The following table presents North Peak Oil and Gas' lease costs as of September 30, 2025 and December 31, 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Lease costs included in combined statements of operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-term lease costs | $8071 | $11185 |
| Total lease costs | $8071 | $11185 |

---

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

**Note 10. Asset Retirement Obligations**

The following table presents changes in asset retirement obligations of North Peak Oil and Gas (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| Asset retirement obligations at beginning of period | $5093 | $4874 |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells acquired/developed |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Liabilities settled |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Revision of estimated obligation |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion expense on discounted obligation | 209 | 195 |
| Asset retirement obligations at end of period | $5302 | $5069 |

---

**Note 11. Fair Value Measurements**

The carrying values of cash, accounts receivable, other current assets, accounts payable and accrued expenses included in the accompanying condensed combined balance sheets approximated fair value at September 30, 2025 and December 31, 2024 due to their short-term nature. At September 30, 2025, the Company's debt was classified as current and as such, is not included in this table as it approximated fair value. Therefore, such financial assets and liabilities are not presented in the following table.

The following table provides the carrying value and fair value measurement information for certain of the financial assets and liabilities of North Peak Oil and Gas (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** |
|  | <br>**Carrying** <br>**Amount** | <br>**Total**<br>**Fair Value** | **Level 1**<br>**Inputs** | **Level 2**<br>**Inputs** | **Level 3** <br>**Inputs** |
| September 30, 2025 assets (liabilities): | September 30, 2025 assets (liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivatives | $6085 | $6085 | $― | $6085 | $― |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | $(5302) | $(5302) | $― | $― | $(5302) |
| December 31, 2024 assets (liabilities): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivatives | $2659 | $2659 | $― | $2659 | $― |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | $(5093) | $(5093) | $― | $― | $(5093) |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term debt | $(81532) | $(81532) | $― | $(81532) | $― |

---

The following methods and assumptions were used to estimate the fair values in the table above.

***Level 2 Fair Value Measurements***

*Commodity derivatives* – The fair value of commodity derivatives is estimated using observable market data and assumptions with adjustments based on widely accepted valuation techniques. A discounted cash flow analysis on the expected cash flows of each derivative reflects the contractual terms of the derivative, including period to maturity, and uses observable market-based inputs, including interest rate curves, implied volatilities, transaction size, counterparty credit quality and the estimated current replacement cost of the derivative instrument.

**NORTH PEAK OIL AND GAS**

Notes to Condensed Combined Financial Statements

*Long-term debt* – The debt instruments of North Peak Oil and Gas do not trade actively in an established market. The fair value of the EOC Loan, Amegy Notes and the Prudential Senior Notes approximate carrying value as these facilities contain variable interest rates. The fair value of the Prudential Subordinated Notes at December 31, 2024 was $15.7 million, and was estimated based on debt with similar terms and maturity. The Prudential Subordinated Notes were listed as current as of September 30, 2025 in the accompanying condensed combined balance sheets.

***Level 3 Fair Value Measurements***

*Asset retirement obligations –* The fair value of asset retirement obligations is estimated using discounted cash flow projections using numerous estimates, assumptions and judgments regarding such factors as the existence of a legal obligation, estimated plugging and abandonment costs, timing of remediation, the credit-adjusted risk-free rate and inflation rate.

**Note 12. Commitments and Contingencies**

***Environmental Remediation***

Various federal, state and local laws and regulations covering the discharge of materials into the environment, or otherwise relating to the protection of the environment, may affect the operations and the cost of crude oil and natural gas exploration, development, and production operations of North Peak Oil and Gas. North Peak Oil and Gas does not anticipate that it will be required in the near future to expend significant amounts for compliance with such federal, state and local laws and regulations and therefore no amounts have been accrued for such purposes.

***Litigation***

North Peak Oil and Gas is involved in various legal proceedings including, but not limited to, commercial disputes, claims from royalty and surface owners, property damage claims, personal injury claims, regulatory compliance matters, disputes with tax authorities and other matters. While the outcome of these legal matters cannot be predicted with certainty, North Peak Oil and Gas does not expect them to have a material effect on its financial condition, results of operations or cash flows.

**Note 13. Transactions with Affiliates**

For the nine months ended September 30, 2025 and 2024, North Peak Oil and Gas incurred management fees for certain operational and administrative functions of $4.0 million and $5.4 million, respectively. These management fees are included in affiliate expense on the condensed combined statements of operations.

**Note 14. Subsequent Events**

North Peak Oil and Gas has evaluated all subsequent events through December 17, 2025, the date the accompanying unaudited condensed combined financial statements were issued.

On November 4, 2025, it was announced that the Company merged with PEDEVCO Corp. As consideration for the merger, PEDEVCO issued 10,650,000 shares of PEDEVCO Series A Convertible Preferred stock, convertible into 106,500,000 shares of common stock of PEDEVCO and paid off the Company's outstanding current and long-term debt with all parties.