# EDGAR Filing Document

**Accession Number:** 0001921603
**File Stem:** 0001193125-26-237902
**Filing Date:** 2026-5
**Character Count:** 2629256
**Document Hash:** 4fb536f845a528a1cc2cfdcb171594b6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-237902.hdr.sgml**: 20260526

**ACCESSION NUMBER**: 0001193125-26-237902

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 35

**FILED AS OF DATE**: 20260526

**DATE AS OF CHANGE**: 20260526

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WhiteHawk Income Corp
- **CENTRAL INDEX KEY:** 0001921603
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 880862160
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-295743
- **FILM NUMBER:** 261015961

**BUSINESS ADDRESS:**
- **STREET 1:** 2400 MARKET STREET
- **STREET 2:** OFFSITE SUITE 230
- **CITY:** PHILADELPHIA
- **STATE:** PA
- **ZIP:** 19103
- **BUSINESS PHONE:** 917 691-9676

**MAIL ADDRESS:**
- **STREET 1:** 2400 MARKET STREET
- **STREET 2:** OFFSITE SUITE 230
- **CITY:** PHILADELPHIA
- **STATE:** PA
- **ZIP:** 19103

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on May 26, 2026.** 

**Registration No. 333-295743** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**Amendment No. 2** 

**to** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

**WhiteHawk Income Corporation** 

**(Exact name of registrant as specified in its charter)\*** 

**\* WhiteHawk Income Corporation to be renamed WhiteHawk Minerals Corp. in connection with the consummation of this offering.** 

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| | | |
|:---|:---|:---|
| **Delaware** | **1311** | **88-0862160** |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(Primary Standard Industrial**<br> **Classification Code Number)** | **(I.R.S. Employer**<br> **Identification Number)** |

---

**2000 Market Street, Suite 910** 

**Philadelphia, PA 19103** 

**(610) 484-3412** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

**Daniel Herz** 

**Chief Executive Officer** 

**2000 Market Street, Suite 910** 

**Philadelphia, PA 19103** 

**(610) 484-3412** 

**(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)** 

***Copies to:***

---

| | | |
|:---|:---|:---|
| **Ryan J. Maierson<br>Christopher D. Lueking<br>Nick S. Dhesi<br>Latham & Watkins LLP<br>811 Main Street, Suite 3700<br>Houston, TX 77002<br>(713) 546-5400** | **Barrie Hananel<br>General Counsel<br>2000 Market Street, Suite 910<br>Philadelphia, PA 19103<br>(610) 484-3412** | **Douglas E. McWilliams<br>Thomas G. Zentner**<br> **Alexandra M. Lewis<br>Vinson & Elkins L.L.P.**<br> **845 Texas Avenue, Suite 4700**<br> **Houston, TX 77002<br>(713) 758-2222** |

---

**Approximate date of commencement of proposed sale to the public**: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | 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 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.** 

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##### [**Table of Contents**](#toc)
![LOGO](g86452g00v34.jpg)

The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. PRELIMINARY PROSPECTUS Subject to Completion, Dated May 26, 2026. WhiteHawk Income Corporation (to be renamed WhiteHawk Minerals Corp.) 6,925,000 Shares Class A Common Stock This is the initial public offering of shares of our Class A common stock. We are offering 6,925,000 shares of our Class A common stock. Prior to this offering, there has been no public market for our common stock. The initial public offering price of our common stock is expected to be between $25.00 and $27.00 per share. We have applied to list our common stock on the New York Stock Exchange ("NYSE") under the symbol "WHK." We intend to change our corporate name to WhiteHawk Minerals Corp. in connection with the closing of this offering. See "Prospectus Summary—Summary of the Transactions" and "Our Organizational Structure." To the extent that the underwriters sell more than 6,925,000 shares of common stock, the underwriters have the option to purchase, exercisable within 30 days from the date of this prospectus, up to an additional 1,038,750 shares from us at the public offering price, less underwriting discounts and commissions. Upon consummation of this offering, we will be a holding company in an organizational structure commonly referred to as an umbrella partnership-C-corporation (or "Up-C") structure, and our principal assets will consist of (i) direct ownership of 85.6% of the common units ("OpCo Interests") of WhiteHawk Income Operating Partnership L.P. ("WhiteHawk OpCo") (or approximately 86.1% of the OpCo Interests if the underwriters exercise in full their option to purchase additional shares of Class A common stock), which entitle us to a corresponding percentage ownership of the common economic interest in WhiteHawk OpCo (based on outstanding OpCo Interests and excluding Series B preferred units), and (ii) all of the member interests of WhiteHawk Income OP GP LLC ("OP GP"), the sole general partner of WhiteHawk OpCo, which entitles us to control the business and affairs of WhiteHawk OpCo. See "Risk Factors—Risks Related to Our Organizational Structure." We will operate and control all of the business and affairs of WhiteHawk OpCo and its direct and indirect subsidiaries, and conduct our business through WhiteHawk OpCo. In addition, we will own all of the Series B preferred units of WhiteHawk OpCo. Following this offering, we will have two series of authorized common stock: shares of Class A common stock, having one vote per share and economic rights, and shares of Class B common stock, having one vote per share and no economic rights. Holders of Class A and Class B common stock will vote together as a single class on all matters to be presented to our shareholders for their vote or approval, except as otherwise required by applicable law or our Bylaws (as defined herein). Our outstanding Class A common stock and Class B common stock will represent approximately 85.6% and 14.4%, respectively, of the total voting power of our outstanding Common Stock immediately following this offering, assuming no exercise of the underwriters' option to purchase additional shares of Class A common stock. See "Description of Capital Stock" and "Our Organizational Structure." We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and, as such, we have elected to take advantage of certain reduced public company reporting requirements for this prospectus and future filings. See "Risk Factors" and "Prospectus Summary—Emerging Growth Company." Investing in our Class A common stock involves risks. See "Risk Factors" starting on page 37. Price to Public Underwriting Discounts and Commissions(1) Proceeds to Issuer Per Share $$$ Total $$$(1) See "Underwriting" for additional information regarding underwriter compensation. Certain funds and accounts managed by Horizon Kinetics Asset Management LLC and certain accounts advised by T. Rowe Price Investment Management, Inc. severally and not jointly, (collectively, the "cornerstone investors"), have indicated an interest in purchasing up to an aggregate of $74 million of shares of Class A common stock offered hereby at the public offering price and on the same terms as the other shares of Class A common stock being offered hereby. The shares of Class A common stock to be purchased by the cornerstone investors will not be subject to a lock-up agreement with the underwriters. However, because indications of interest are not binding agreements or commitments to purchase, the cornerstone investors may determine to purchase more, less or no shares in this offering or the underwriters may determine to sell more, less or no shares to the cornerstone investors. The underwriters will receive the same discount on any shares of our Class A common stock purchased by the cornerstone investors as they will from any other shares sold to the public. At our request, the underwriters will reserve up to 5% of the Class A shares for sale at the public offering price through a directed share program to certain individuals associated with us. See "Underwriting—Directed Share Program." Delivery of the shares of Class A common stock will be made on or about , 2026. Neither the Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense. Joint Lead Bookrunners Raymond James Stifel J.P. Morgan Bookrunning Managers Stephens Inc. Capital One Securities Co-Manager Tuohy Brothers Prospectus dated , 2026

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##### [**Table of Contents**](#toc)
![LOGO](g86452g00z36.jpg)

Building the Premier Natural Gas Mineral Company APPALACHIA HAYNESVILLE EQTANTE RORAN GECNX EXPAND OTHER EXPAND MITS UBIS HI COM STOCK TRINITY TOKYO GAS OTHER APPALACHIA & HAYNESVILLE MAP 8,700+ gross undeveloped locations 10,000+ producing wells ~13% exposure to all 2025 U.S. dry gas production 8 large acquisitions since inception 3.4MM+ gross DSU acre position 2025 PRODUCTION EXPOSURE BY OPERATOR 86452-044 07May26 20:02 Page 3

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##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  | **<u>Page</u>** |
|  [ABOUT THIS PROSPECTUS](#toc86452_1) | iii |
|  [PROSPECTUS SUMMARY](#toc86452_1a) | 1 |
|  [RISK FACTORS](#toc86452_3) | 37 |
|  [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#toc86452_4) | 80 |
|  [OUR ORGANIZATIONAL STRUCTURE](#toc86452_100a) | 83 |
|  [USE OF PROCEEDS](#toc86452_5) | 87 |
|  [DIVIDEND POLICY](#toc86452_6) | 88 |
|  [CAPITALIZATION](#toc86452_7) | 89 |
|  [DILUTION](#toc86452_8) | 91 |
|  [UNAUDITED PRO FORMA CONDENSED CONSOLIDATED COMBINED FINANCIAL INFORMATION](#toc86452_9) | 94 |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#toc86452_10) | 102 |
|  [BUSINESS](#toc86452_11) | 120 |
|  [MANAGEMENT](#toc86452_12) | 151 |
|  [EXECUTIVE AND DIRECTOR COMPENSATION](#toc86452_13) | 157 |
|  [PRINCIPAL STOCKHOLDERS](#toc86452_14) | 167 |
|  [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#toc86452_15) | 169 |
|  [DESCRIPTION OF MATERIAL INDEBTEDNESS](#toc86452_16) | 180 |
|  [DESCRIPTION OF CAPITAL STOCK](#toc86452_17) | 189 |
|  [SHARES ELIGIBLE FOR FUTURE SALE](#toc86452_18) | 197 |
|  [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF COMMON STOCK](#toc86452_19) | 200 |
|  [UNDERWRITING](#toc86452_20) | 204 |
|  [LEGAL MATTERS](#toc86452_21) | 211 |
|  [EXPERTS](#toc86452_22) | 211 |
|  [CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#toc86452_22a) | 212 |
|  [WHERE YOU CAN FIND MORE INFORMATION](#toc86452_23) | 213 |
|  [INDEX TO FINANCIAL STATEMENTS](#toc86452_24) | F-1 |
|  [ANNEX A – GLOSSARY OF NATURAL GAS AND OIL TERMS](#toc86452_25) | A-1 |

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You should rely only on the information contained in this prospectus or in any free writing prospectus we may specifically authorize to be delivered or made available to you. Neither we nor any of the underwriters (or any of our or their respective affiliates) have authorized anyone to provide any information or to make any representations other than those contained in this prospectus, any amendment or supplement to this prospectus or in any free writing prospectus prepared by us or on our behalf or to which we have referred you. Neither we nor the underwriters (or any of our or their respective affiliates) take any responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares of Class A common stock offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. You should assume that the information contained in this prospectus or any free writing prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or the time of any sale of shares of our Class A common stock. Our business, financial condition, results of operations and prospects may have changed since that date.

For investors outside the United States: Neither we nor any of the underwriters have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside of the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our Class A common stock and the distribution of this prospectus outside of the United States.

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##### [**Table of Contents**](#toc)
**Through and including , 2026 (25 days after the date of this prospectus), all dealers effecting transactions in our Class A common stock, whether or not participating in this offering, may be required to deliver a prospectus. This requirement is in addition to the dealers' obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.** 

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##### [**Table of Contents**](#toc)
**ABOUT THIS PROSPECTUS** 

**Organizational Structure** 

In connection with the closing of this offering, we will undertake certain organizational transactions to reorganize our corporate structure. Unless otherwise stated or the context otherwise requires, all information in this prospectus reflects the consummation of the organizational transactions described in the section titled "Our Organizational Structure" and this offering, and the application of the proceeds therefrom, which we refer to collectively as the "Transactions." Additionally, unless otherwise indicated, share amounts in this prospectus reflecting the consummation of the Transactions do not give effect to OpCo Interests or shares of our Class B common stock that may be issued as a part of the Earnout Amount (as defined herein), as more fully described in the section titled "Certain Relationships and Related Party Transactions—Internalization—Earnout."

See "Our Organizational Structure" for a diagram depicting our organizational structure after giving effect to the Transactions, including this offering.

**Certain Definitions** 

As used in this prospectus, unless the context otherwise requires, references to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Contribution Agreement" refers to the contribution agreement we will enter into with WhiteHawk OpCo,
the Management Contributor, and ManagementCo, to effectuate the acquisition of ManagementCo, our current external manager, by WhiteHawk OpCo (the "Internalization").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Continuing Equity Owners" refers (i) prior to the distribution by the Management Contributor of the
OpCo Interests and shares of Class B common stock received by the Management Contributor in the Internalization, to the Management Contributor, and (ii) following such distribution, to the direct and indirect owners of the Management Contributor who
become holders of OpCo Interests (together with a corresponding number of shares of Class B common stock) upon such distribution, which distribution will occur after the first anniversary of the closing of this offering pursuant to the terms of the
Contribution Agreement, at which time such holders will execute a joinder to the OpCo Agreement (the Continuing Equity Owners referred to in this prong (ii) may also be referred to herein as the "Subsequent Continuing Equity Owners").
The Subsequent Continuing Equity Owners will be (a) Daniel Herz, our Chief Executive Officer and President, (b) PhiCap Advisors, LLC (of which Jeffrey Slotterback, our Chief Financial Officer, and Michael Downs, our Chief Operating
Officer, are members), (c) Matthew Heinlein, our Vice President, Head of Corporate Development & Strategy, (d) BCA-WHE, LLC (an entity controlled by Jeffery Smith, one of our directors), (e) Omega Capital Partners, LP and
(f) Wayne Cooperman. See "Principal Stockholders." Following the consummation of such distribution and execution of such joinder, the Subsequent Continuing Equity Owners may exchange at each of their respective options, in whole or
in part from time to time, their OpCo Interests (together with a corresponding number of shares of Class B common stock), for, at our election (determined solely by our independent directors (within the meaning of the NYSE rules) who are
disinterested), cash or newly-issued shares of our Class A common stock as described in "Certain Relationships and Related Party Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Exchange" or "NYSE" refers to the New York Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Legacy Common Stock Investors" refers, collectively, to the holders of shares of Class A common
stock, par value $0.0001 per share, Class I common stock, par value $0.0001 per share, and Class T common stock, par value $0.0001 per share, but excludes Continuing Equity Owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "OpCo Interests" refers to the common units of WhiteHawk Income Operating Partnership L.P., including
those that we purchase with the net proceeds from this offering.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Management Contributor" refers to WhiteHawk Minerals LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "OpCo Agreement" refers, as applicable, to WhiteHawk OpCo's amended and restated limited
partnership agreement, as currently in effect, or to the amended and restated limited partnership agreement effective immediately prior to the consummation of this offering, and as such agreement may thereafter be amended and/or restated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Transactions" refers to the organizational transactions described in the section titled "Our
Organizational Structure" and this offering, and the application of the net proceeds therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "we," "us," "our," the "Company," "WhiteHawk," and
similar references refer to, prior to this offering, WhiteHawk Income Corporation, and after this offering, WhiteHawk Minerals Corp., and, unless otherwise stated, in each case, all of its direct and indirect subsidiaries, including OP GP and
WhiteHawk OpCo.

We are a holding company and the sole member of WhiteHawk Income OP GP LLC ("OP GP"), the sole general partner of WhiteHawk OpCo. As the sole member of OP GP, we control the business and affairs of WhiteHawk OpCo.

**Presentation of Financial Results** 

WhiteHawk Income Corporation ("WhiteHawk," the "Company," "we," "us" and "our") was formed in February 2022. On June 23, 2025, pursuant to that certain Agreement and Plan of Merger, dated as of May 8, 2025 (the "PHX Merger Agreement"), by and among WhiteHawk Acquisition, Inc., a Delaware corporation and wholly owned subsidiary of the Company ("WH Acquisition Corp."), WhiteHawk Merger Sub, Inc., a Delaware corporation ("Merger Sub" and, together with WH Acquisition Corp., the "Company Parties") and PHX Minerals, Inc. ("PHX"), the Company Parties fully acquired all of the issued and outstanding shares of PHX's common stock (the "PHX Acquisition"). On March 31, 2025, the Company purchased mineral and royalty interests in the Marcellus Shale (the "Three Rivers Royalty Acquisition" or the "TRR Acquisition") from Three Rivers Royalty, LLC (the "TRR Seller"). Prior to the Three Rivers Royalty Acquisition, the TRR Seller was a wholly owned subsidiary of San Jacinto Minerals I, LLC ("SJM").

This prospectus includes historical consolidated financial information of the Company and its subsidiaries for the years ended December 31, 2025 (as restated) and 2024 and for the three months ended March 31, 2026 and 2025. This prospectus also includes historical financial information of PHX for the years ended December 31, 2024 and 2023 and the three months ended March 31, 2025 and 2024, as well as the carve-out financial statement information of the TRR Seller for the years ended December 31, 2024 and 2023. Historical financial and operating information is not indicative of the results that may be expected in any future periods. For more information, please see the historical consolidated financial statements and related notes thereto included elsewhere in this prospectus. Unless otherwise indicated, the historical financial information presented in this prospectus represents the historical data and information of WhiteHawk, without giving effect to the PHX Acquisition for periods prior to June 23, 2025, the Three Rivers Royalty Acquisition for periods prior to March 31, 2025, the Transactions or other adjustments.

This prospectus also includes certain unaudited pro forma financial information. See "Unaudited Pro Forma Condensed Consolidated Combined Financial Information." As used herein, except as noted in this prospectus, the term "pro forma" when used with respect to any financial data, refers to the historical data of WhiteHawk, as adjusted after giving effect to (i) the PHX Acquisition, (ii) the Three Rivers Royalty Acquisition and (iii) the Transactions. Pro forma financial data for the year ended December 31, 2025 gives effect to the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions as if each had been consummated on January 1, 2025. Pro forma financial data for the three months ended March 31, 2026 gives effect to the Transactions as if each had been consummated on January 1, 2026. Pro forma financial data as of March 31, 2026 gives effect to the Transactions as if they had been consummated on March 31, 2026. Pro forma financial data contains certain reclassification adjustments to conform the historical PHX financial statement presentation and the historical TRR Seller financial statement presentation to the Company's financial statement presentation.

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The pro forma data is presented for illustrative purposes only and should not be relied upon as an indication of the financial condition or the operating results that would have been achieved if the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions had taken place on the specified dates. Future results may vary significantly from the results reflected in such pro forma financial data and should not be relied on as an indication of future results.

Certain monetary amounts, percentages and other figures included in this prospectus have been subject to rounding adjustments. Percentage amounts included in this prospectus have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this prospectus may vary from those obtained by performing the same calculations using the figures in our consolidated financial statements included elsewhere in this prospectus. Certain other amounts that appear in this prospectus may not sum due to rounding.

**Restatement** 

On April 22, 2026, we concluded that our audited consolidated financial statements for the fiscal year ended December 31, 2025 could no longer be relied upon as a result of certain material accounting errors identified by management subsequent to the issuance of our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025. Accordingly, the audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 included elsewhere in this prospectus were restated by the Company in order to reflect the correction of the identified errors (the "Misstatements") related to (i) the recording of management fees and (ii) the misclassification of pre-closing date and post-effective date monies received related to acquisitions (the "Restatement"). For additional information, see "Note 3, Restatement of Financial Statements" to our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 included elsewhere in this prospectus and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting."

**Control Considerations** 

Although management did not, and was not required to, conduct a formal assessment of internal control over financial reporting as of December 31, 2025, as a result of the Misstatements and the Restatement, the Company identified certain material weaknesses in its internal control over financial reporting. As a result of these material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. Management expects to implement changes to strengthen our internal controls and remediate the material weaknesses. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting" for additional information related to the material weaknesses in internal control over financial reporting and our related remediation activities. See "Risk Factors—Risks Related to Our Business—We recently restated our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 to correct material accounting errors and have identified material weaknesses in our internal control over financial reporting."

**Reserves Estimates and Acreage Presentation** 

Unless otherwise indicated, operating and reserve information of the Company presented herein does not give effect to the PHX Acquisition or the Three Rivers Royalty Acquisition for the periods prior to the date of such transactions. We provide estimates of our proved reserves in this prospectus as of December 31, 2025 and 2024 based on SEC pricing, meaning the unweighted first day of the month arithmetic average price of natural gas and oil over the 12 months prior to the determination date. The estimates of our proved reserves as of December 31, 2025 were prepared by Cawley, Gillespie & Associates ("CG&A"), independent petroleum engineers. The estimates of our proved reserves as of December 31, 2024 have been prepared by Schaper Energy Consulting, LLC ("Schaper Energy"), independent petroleum engineers. We refer to Schaper Energy and CG&A as our

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"reserve engineers." Summaries of their reports are included as exhibits to the registration statement of which this prospectus forms a part. We refer to such reports herein as "our reserve reports." The estimates of PHX's proved reserves as of December 31, 2024 were prepared by CG&A, PHX's independent petroleum engineer. The estimates of the proved reserves of the TRR Seller as of December 31, 2024 have been prepared by Ryder Scott Company, L.P. ("Ryder Scott"), the TRR Seller's independent petroleum engineer, at the request of SJM as part of their audit process. For additional information regarding our, PHX's and TRR Seller's reserves estimates as of December 31, 2025 and 2024, see "Business—Natural Gas, NGL and Oil Data."

In this prospectus, references to gross DSU acres include both actual and theoretical DSUs. Theoretical DSUs are drilling spacing units that have not yet been formally established but are internally delineated by our engineering and land teams based on operator unitization practices, development patterns in the surrounding area and our reasonable assumptions regarding future well development.

**Non-GAAP Financial Measures** 

This prospectus contains certain financial measures that are not required by or prepared in accordance with generally accepted accounting principles ("GAAP"), including Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts). We refer to these measures as "non-GAAP financial measures." See "Prospectus Summary—Summary Historical and Pro Forma Condensed Consolidated Financial and Other Data—Non-GAAP Financial Measures" for our definitions of these non-GAAP financial measures, information about how and why we use these non-GAAP financial measures and a reconciliation of each of these non-GAAP financial measures to its most directly comparable financial measure calculated in accordance with GAAP.

**Trademarks and Trade Names** 

We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks, trade names or products in this prospectus is not intended to, and does not imply, a relationship with us or an endorsement or sponsorship by or of us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the TM, SM or <sup>®</sup> symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and trade names.

**Industry and Market Data** 

The market data and certain other statistical information used throughout this prospectus are based on independent industry publications, government publications and other published independent sources. These sources include reports entitled: Electric Power Monthly, dated December 2025, (the "EIA Electric Monthly"), Short-Term Energy Outlook, dated December 2025 (the "EIA Short-Term Energy Outlook"), Natural Gas Annual, dated December 2025 (the "EIA Natural Gas Annual"), the Liquefied Natural Gas Monthly, dated December 2025 (the "EIA Natural Gas Monthly"), the Annual Report of Domestic Oil and Gas Reserves, U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2023, dated December 2025 (the "EIA Reserve Report"), Liquefied U.S. Natural Gas Exports, dated December 2025 (the "EIA Natural Gas Exports"), U.S. Liquefaction Capacity, dated December 2025 (the "EIA Liquefaction Report"), by the Energy Information Administration (the "EIA"), a report entitled 2024 Statistical Review of World Energy (the "World Energy Report") by the Energy Institute, FactSet International LNG Pricing, dated January 2025 (the "International LNG Report"), FactSet Spot Price, dated December 2025 (the "Spot Price Report") and Upstream Outlook, dated December 2025 (the "Upstream Outlook Report") by FactSet, as well as data and analytics derived from Enverus Prism<sup>®</sup>, dated December 31, 2025 (the "Enverus Data"). Although we believe these third-party sources are reliable as of their respective dates, neither we nor the underwriters have independently verified the accuracy or completeness of this information. Some data is also based on our good faith estimates. The industry in which we operate is subject

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to a high degree of uncertainty and risk due to a variety of factors, including those described in the section entitled "Risk Factors." These and other factors could cause results to differ materially from those expressed in these publications.

Additionally, this prospectus includes industry and market data and forecasts that we obtained from internal company surveys, publicly available information and industry publications and surveys. Our internal research and forecasts are based on management's understanding of industry conditions, and such information has not been verified by independent sources. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable.

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**PROSPECTUS SUMMARY** 

*This summary highlights certain significant aspects of our business and this offering. This is a summary of information contained elsewhere in this prospectus, is not complete and does not contain all of the information that you should consider before making your investment decision. You should carefully read the entire prospectus, including the information presented under the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" and the consolidated financial statements and related notes thereto, before making an investment decision. This summary contains forward-looking statements that involve risks and uncertainties. Unless the context requires otherwise, references to "our company," "we," "us," "our," and "WhiteHawk" refer to WhiteHawk Income Corporation and its direct and indirect subsidiaries on a consolidated basis prior to this offering, and WhiteHawk Minerals Corp. and its direct and indirect subsidiaries on a consolidated basis following this offering. This prospectus includes certain terms commonly used in the natural gas and oil industry, which are defined elsewhere in this prospectus in the "Glossary of Natural Gas and Oil Terms" contained in Annex A to this prospectus.* 

*The estimates of our proved reserves as of December 31, 2025 have been prepared by CG&A, our independent reserve engineers. CG&A's report is included as an exhibit to the registration statement of which this prospectus forms a part. The estimates of our proved reserves as of December 31, 2024 have been prepared by Schaper Energy, our independent reserve engineers. Schaper Energy's report is included as an exhibit to the registration statement of which this prospectus forms a part. The estimates of PHX's (as defined herein) proved reserves as of December 31, 2024 have been prepared by CG&A, PHX's independent reserve engineers. CG&A's report is included as an exhibit to the registration statement of which this prospectus forms a part. The estimates of the TRR Seller's proved reserves as of December 31, 2024 have been prepared by Ryder Scott Company, L.P. ("Ryder Scott"), the TRR Seller's independent reserve engineers. Ryder Scott's report is included as an exhibit to this registration statement of which this prospectus forms a part.* 

**Our Company** 

WhiteHawk is focused on being the premier natural gas mineral and royalty business in the United States. We are committed to delivering cash flow and total returns to our investors through the disciplined acquisition, active management and ownership of high-quality mineral and royalty interests. Our assets are concentrated in the Marcellus and Haynesville Shales, which are located in the Appalachian and Haynesville Basins, which are among the most productive and lowest-cost U.S. natural gas basins.<sup>1</sup> Upon completion of the offering, we will own the largest, high-quality publicly traded natural gas mineral portfolio in the United States.<sup>2</sup> As a mineral and royalty business, we do not pay any drilling-related capital expenditures and only minimal operating expenses on our properties. This results in a high-margin business and allows us to distribute a meaningful portion of our cash flow to investors, while providing them with potential for significant capital appreciation over time.

As of March 31, 2026, our portfolio spans approximately 3.4 million gross DSU acres, including 1.6 million gross DSU acres across the Appalachian and Haynesville Basins and represents an economic interest in approximately 13%<sup>3</sup> of all natural gas produced in the United States as of December 31, 2025. Further, we have more than 10,900 producing wells and more than 8,000 remaining identified undeveloped locations as of December 31, 2025. The Appalachian and Haynesville Basins form the core of U.S. natural gas production and are among the most prolific energy-producing regions globally. If measured against sovereign nations, the Appalachian Basin would rank as the world's second-largest natural gas producer, with daily production of

<sup>1</sup> EIA Short-Term Energy Outlook; Enverus Data.

<sup>2</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

<sup>3</sup> Enverus Data.

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approximately 33 Bcf/d, and the Haynesville Basin would rank eighth with daily production of approximately 13 Bcf/d.<sup>4</sup> In 2025, the Appalachian and Haynesville Basins together accounted for more than 50%<sup>5</sup> of total U.S. dry gas production, providing the foundation of domestic natural gas supply and export growth. Our mineral interests are concentrated in the core of these premier natural gas regions and offer long-term participation in two of the largest, most active and lowest-cost natural gas weighted basins in the United States.<sup>6</sup>

WhiteHawk's mineral interests are developed by many of the largest, most active and well-capitalized natural gas operators in the United States, including EQT (NYSE: EQT), Range Resources (NYSE: RRC), CNX Resources (NYSE: CNX), Antero Resources (NYSE: AR), Expand Energy (NASDAQ: EXE), Comstock Resources (NYSE: CRK) and Aethon Energy. In 2025, approximately 18%<sup>7</sup> of all wells drilled in the Appalachian and Haynesville Basins were located on acreage in which we hold royalty interests. Our significant footprint across both basins provides alignment and scale with these premier operators. In 2025, EQT was the largest natural gas producer in the Appalachian Basin, and Expand Energy was the largest producer in the Haynesville Basin.<sup>8</sup> In the same year, approximately 49% of EQT's Appalachian production and 57% of Expand Energy's Haynesville production were sourced from acreage in which we hold royalty interests.<sup>9</sup> Because our mineral interests are concentrated within these operators' active and planned development areas, we can benefit directly from their scale, financial strength and efficiency. Our exposure to leading operators enables us to gain from their continuous development across commodity cycles and provides a resilient base for predictable cash flow growth.

Leveraging our scale and position alongside leading operators, we believe we are well positioned to capitalize on two powerful natural gas demand catalysts: artificial intelligence ("AI") driven electricity demand growth and expanding U.S. liquefied natural gas ("LNG") exports. Natural gas remains the most reliable, scalable and cost-effective source of baseload power and accounted for approximately 41%<sup>10</sup> of total U.S. electricity generation in 2025. The rapid buildout of AI and cloud-computing infrastructure is projected to create additional demand for natural gas-fired power generation, with a management-estimated 7.8 Bcf/d of total natural gas demand associated with new power plants expected to be constructed by 2031,<sup>11</sup> largely within WhiteHawk's Appalachian Basin footprint. In addition to an increase in domestic demand, global demand for U.S. natural gas is expected to further accelerate through LNG export growth. The EIA projects the United States will nearly double its LNG export capacity from approximately 17 Bcf/d<sup>12</sup> in 2025 to nearly 34 Bcf/d by 2031<sup>13</sup> as European and Asian buyers seek to diversify supply and reduce exposure to higher regional benchmark prices. The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position our mineral interests to benefit directly from this expansion in export capacity and feed-gas demand. Together, accelerating power demand from AI and the continued buildout of LNG export capacity, inclusive of announced projects, are expected to drive a structural step-change in U.S. natural gas demand—driving roughly a 38%<sup>14</sup> increase in combined demand by 2031 compared to 2025 levels. WhiteHawk believes it offers public investors direct equity exposure to the powerful tailwinds of AI-driven power demand and expanding U.S. LNG exports without drilling-related capital expenditures.

WhiteHawk is led by one of the most experienced and acquisitive management teams in the minerals and royalties sector. Collectively, our leadership has more than 125 years of industry experience and has completed

<sup>4</sup> World Energy Report.

<sup>5</sup> EIA Short-Term Energy Outlook.

<sup>6</sup> Enverus Data.

<sup>7</sup> Enverus Data.

<sup>8</sup> Enverus Data.

<sup>9</sup> Enverus Data.

<sup>10</sup> EIA Electric Monthly.

<sup>11</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>12</sup> EIA Natural Gas Exports.

<sup>13</sup> EIA Electric Monthly. Includes current operating and under construction projects only.

<sup>14</sup> EIA Natural Gas Monthly.

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over $31 billion of energy transactions across the upstream, midstream, and minerals and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy (NYSE: ATLS), Atlas Pipeline Partners (NYSE: APL) and Falcon Minerals Corporation (NASDAQ: FLMN), each of which were successful public companies that generated substantial shareholder value through disciplined growth, accretive acquisitions and strategic monetizations.

Since its inception, WhiteHawk has completed eight large acquisitions, making it the most active acquirer of natural gas mineral and royalty properties in the United States.<sup>15</sup> More importantly, these acquisitions have been highly accretive to shareholders and have resulted in approximately 38%<sup>16</sup> cash-on-cash return to our initial investors through 49 months of consecutive cash dividend payments, plus an additional 41% increase in shareholder value through three share dividends through March 31, 2026. We continue to execute a focused consolidation strategy in a fragmented market, targeting accretive acquisitions to expand scale, enhance returns and extend development visibility. Our ability to consistently source, evaluate and close accretive transactions ahead of broader market consolidation underscores WhiteHawk's leadership as a focused, data-driven consolidator with a proven track record of value creation.

**Our History** 

We were founded in 2022 with a clear mission to build the premier natural gas minerals and royalty platform. Our thesis was that natural gas minerals and royalties represent one of the most efficient and resilient ways to participate in the energy value chain, combining high-margin cash yield with exposure to long-term macro tailwinds in U.S. natural gas demand.

We began executing on a strategy to consolidate high-quality, core-basin mineral and royalty assets from institutional and private equity owners. We identified an estimated $3 – $5 billion of natural gas minerals and royalties in the Appalachian and Haynesville Basins that were held by private equity funds nearing the end of their investment cycles and fund lives with few buyers of scale in the market. This imbalance created an attractive entry point to acquire premium assets at compelling valuations. WhiteHawk was created to capitalize on this opportunity, bringing technical expertise, public market experience and fresh capital to a fragmented sector.

In addition to our strategic acquisitions of larger, consolidated natural gas mineral packages, we launched a dedicated "ground game" in 2025 that has become an important component of our growth strategy. This approach builds on a meaningful track record, including at Falcon Minerals Corporation, where our team successfully executed more than 30 acquisitions through a similar strategy. Leveraging significant in-house land and engineering expertise alongside an established network of regional brokers, we seek to efficiently source and underwrite smaller-scale opportunities that we believe are highly accretive. Since December 2025, we have completed 14 such transactions totaling approximately $39.7 million. We expect the ground game to remain a component of our acquisition strategy, with the goal of adding scale consistent with our existing portfolio quality.

This opportunity may be enhanced by the fragmentation across our existing asset base. With an average net revenue interest of approximately 0.51% across our DSUs as of March 31, 2026 and an average royalty rate of approximately 17% as of December 31, 2025, we believe there is more than 33 times our current ownership potentially available for acquisition within our existing footprint.

<sup>15</sup> Enverus Data.

<sup>16</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

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As of March 31, 2026, WhiteHawk has accumulated natural gas mineral and royalty assets across approximately 3.4 million gross DSU acres focused primarily on the Appalachian and Haynesville Basins. Since our inception in 2022, WhiteHawk has made eight acquisitions and through March 31, 2026 has paid more than 49 consecutive monthly cash dividends, representing approximately 38%<sup>17</sup> cash-on-cash return to our initial investors, plus an additional 41% increase in shareholder value through three share dividends.

The figure below summarizes our acquisition history with respect to acquired net royalty acres on an 8/8<sup>th</sup> basis ("NRAs").

![LOGO](g86452g11a11.jpg)

Members of our management team were some of the early pioneers in the Marcellus Shale and, prior to the formation of WhiteHawk, collectively drilled some of the first horizontal wells in the Marcellus Shale. With over 20 years of Appalachian Basin-specific experience, our land and engineering teams specialize in identifying and acquiring high-quality land assets that underpin valuable, long-term mineral and royalty interests. This technical capability, combined with our extensive history of operating in Appalachia, proprietary deal sourcing, and data-driven analysis, allows WhiteHawk to efficiently negotiate and close transactions while maintaining disciplined capital allocation. In addition to utilizing technical analysis, we strive to acquire mineral and royalty interests in properties with top-tier E&P operators. We seek E&P operators that are well-capitalized, have a strong operational track record, and we believe will continue to increase production through the application of the latest drilling and completion techniques across our mineral and royalty interests, and have demonstrated resilience through commodity cycles.

The U.S. natural gas minerals and royalties market remains highly fragmented with many private owners and few scaled aggregators. This structural fragmentation presents a significant opportunity for continued consolidation. WhiteHawk is one of the few active, large mineral buyers focused exclusively on natural gas. Upon completion of this offering, WhiteHawk will be the only public natural gas mineral and royalty company with meaningful, scaled exposure to the Appalachian and Haynesville Basins, allowing WhiteHawk to capitalize on this fragmented market.<sup>18</sup> We intend to leverage our position to pursue disciplined, accretive acquisitions that enhance portfolio quality, expand our footprint in premier basins, and drive sustainable growth in cash flow and shareholder returns over time.

<sup>17</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

<sup>18</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

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**Natural Gas Industry and Future Development** 

Natural gas is the largest source of U.S. electricity generation and a cornerstone of global energy supply, accounting for approximately 41%<sup>19</sup> of total domestic power output in 2025. U.S. natural gas demand has the potential to increase from 107 Bcf/d in 2025 to approximately 148 Bcf/d by 2031, supported by structural growth across LNG exports, power generation expansion, rising electricity demand from data centers and AI, and advanced manufacturing.<sup>20</sup>

U.S. LNG export capacity could expand to around 45 Bcf/d by 2031, supported by approximately 34 Bcf/d currently operating or under construction and an additional 11 Bcf/d of capacity announced but not currently under construction<sup>21</sup>. If all export capacity is active by 2031, this would represent a 28% increase in natural gas demand over 2025 levels from LNG exports alone. The continued growth in LNG exports is expected to position the United States as the world's leading supplier of natural gas to Europe and Asia as international buyers seek secure, competitively priced and transparent alternatives to oil-indexed or regional benchmarks.

The figure below illustrates estimated liquefaction capacity for existing, under construction and announced projects as of December 2025:

![LOGO](g86452g52b60.jpg)

*Note: Liquefaction Capacity reflects Peak Nameplate Capacity. Commercial Operation includes commissioned projects. Source: EIA Liquefaction Report.* 

Additionally, as of December 2025, WhiteHawk has identified 21 publicly announced new or planned natural gas power plants in close proximity to WhiteHawk's Appalachia mineral position, which are estimated to generate natural gas demand of approximately 7.8 Bcf/d by 2031.<sup>22</sup>

<sup>19</sup> EIA Electric Monthly.

<sup>20</sup> Management estimated based on EIA Short-Term Energy Outlook.

<sup>21</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities.

<sup>22</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

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In addition to the growing LNG export demand, the accelerated buildout of AI and cloud-computing infrastructure is creating a new and durable source of electricity demand, much of which is expected to be met by natural gas-fired power generation due to its reliability, scalability and relatively favorable carbon intensity.

WhiteHawk's mineral position in the Appalachian Basin lies in close proximity to major data center growth corridors across Virginia, Ohio and Pennsylvania, where WhiteHawk has identified, as of December 2025, publicly announced 28 new data centers representing what management estimates will generate 3.3 Bcf/d of incremental natural gas demand, of which approximately 1.7 Bcf/d is under construction or has achieved FID and approximately 1.6 Bcf/d is in pre-FID and announced stages.<sup>23</sup>

Together, these structural demand drivers are expected to sustain drilling and development activity on WhiteHawk's mineral acreage for years to come. With concentrated exposure to some of the most productive natural gas basins in the United States, we believe our mineral and royalty portfolio is well positioned to deliver stable production growth, increase royalty income and durable cash flow, and grow dividends and net asset value per share over the long term.

**Our Focus on Key Gas Basins** 

WhiteHawk's assets are concentrated in the Appalachian Basin and Haynesville Basin, which collectively represent the core of U.S. natural gas production. Each region combines substantial resource depth, high-quality operators, and access to major infrastructure and end-markets.

***Appalachian Basin (Pennsylvania / West Virginia / Ohio)***

The Appalachian Basin, located primarily in Pennsylvania, West Virginia and Ohio, constitutes the largest and most prolific natural gas basin in the United States and a critical source of future global natural gas supply, as of December 2025.<sup>24</sup> The basin's scale, consistent reservoir quality and access to infrastructure have made it a cornerstone of U.S. natural gas production and a key driver of the nation's transition toward cleaner, lower-carbon energy. The Appalachian Basin's importance to future natural gas growth is underpinned by its vast remaining resource potential and direct connectivity to both domestic and international demand. The basin benefits from an extensive network of gathering, processing and long-haul pipeline infrastructure that links production to major population centers and growing data center markets in the Northeast, Midwest and Northern Virginia, as well as to LNG export markets along the Gulf Coast. Continued expansion of southbound takeaway capacity and LNG facilities is expected to reinforce the region's role as a primary growth engine for U.S. natural gas supply over the next decade.

In the Appalachian Basin, the Marcellus Shale has transformed the United States from a net importer to a net exporter of natural gas over the past 20 years. During 2025, it accounted for roughly one-third of total U.S. dry gas production, producing at some of the lowest breakeven costs in the United States.<sup>25</sup> Exceptional pressure regimes, thick, laterally continuous pay zones and modern completion techniques allow operators to achieve recoveries and sustained productivity that rank among the highest in the industry.<sup>26</sup> The Utica Shale provides additional stacked-pay potential that enhances the economic life and development diversity of the basin and already accounted for 8% of total U.S. natural gas production in 2025.<sup>27</sup>

As of March 31, 2026, WhiteHawk's interests cover approximately 975,000 gross DSU acres across Southwest Pennsylvania and Northern West Virginia, operated by leading Appalachian Basin producers, including EQT,

<sup>23</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>24</sup> EIA Short-Term Energy Outlook.

<sup>25</sup> EIA Short-Term Energy Outlook.

<sup>26</sup> Enverus Data.

<sup>27</sup> EIA Short-Term Energy Outlook.

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Range Resources, CNX Resources and Antero Resources. These operators possess deep drilling inventories, strong balance sheets and a proven track record of disciplined development. Throughout 2024 and 2025, approximately 47% of wells turned in line by these operators in the Appalachian Basin were drilled on our acreage.<sup>28</sup>

The Appalachian Basin forms the foundation of WhiteHawk's asset base and provides investors with exposure to a region positioned to remain a highly productive source of low-cost, scalable natural gas for the U.S. and global markets for decades to come.

***Haynesville Basin (East Texas / North Louisiana)***

The Haynesville Basin, located in East Texas and North Louisiana, is one of the largest and most productive natural gas plays in the United States and a cornerstone of future U.S. supply growth. The basin's combination of exceptional reservoir quality, proximity to demand centers and direct access to the Gulf Coast has positioned it as a critical source of feed gas for the rapidly expanding LNG export market.

Strategically located within 150 miles of the Gulf Coast, the Haynesville Basin provides a direct and cost-advantaged connection between prolific supply and fast-growing global demand. It is estimated that nearly all existing and planned U.S. LNG export terminals—including Sabine Pass, Cameron, Golden Pass, Port Arthur and Plaquemines—source a substantial portion of their feed gas from the Haynesville Basin. This geographic alignment ensures that the basin will remain a key driver of U.S. natural gas export growth for decades as global markets seek cheaper, reliable sources of natural gas and lower-carbon alternatives to coal and oil.

Since its renewed development in 2017, the Haynesville Basin has delivered steady volume growth supported by high-deliverability wells and low full-cycle development costs.<sup>29</sup> The basin is characterized by over pressured, laterally extensive shale formations that yield high initial production rates and long-lived reserves.<sup>30</sup> Continued advances in lateral lengths, completion designs and multi-well pad efficiencies have enhanced recoveries and reduced breakeven costs, making the Haynesville Basin one of the most economically viable sources of natural gas in the world. In addition to the Haynesville Shale, our acreage also benefits from additional resources from the Cotton Valley and Mid-Bossier formations, which together produced approximately 3.2%<sup>31</sup> of U.S. natural gas production in 2025.

As of March 31, 2026, WhiteHawk's Haynesville interests cover approximately 600,000 gross DSU acres across East Texas and North Louisiana, operated by leading producers such as Expand Energy, Comstock Resources and Aethon Energy. These operators are among the most active and technically proficient in the basin, each maintaining multi-year drilling inventories and robust infrastructure connectivity.

The Haynesville Basin represents another cornerstone of WhiteHawk's portfolio, providing exposure to one of the highest-margin, infrastructure-advantaged gas plays in the United States. Its proximity to LNG export facilities, industrial corridors and petrochemical complexes along the Gulf Coast positions the basin—and WhiteHawk's assets within it—at the center of the next phase of global natural gas demand growth.

***Mid-Con Region (Anadarko Basin, Oklahoma)***

The Mid-Con region, anchored by the Anadarko Basin in Oklahoma and extending into portions of Texas, Arkansas and Kansas, is one of the most historically productive and geologically diverse hydrocarbon basins in the United States. The region has been a major contributor to U.S. natural gas and liquids supply for nearly a century and remains a critical source of stable production, infrastructure access and development optionality.

<sup>28</sup> Enverus Data.

<sup>29</sup> EIA Short-Term Energy Outlook.

<sup>30</sup> Upstream Outlook Report.

<sup>31</sup> Enverus Data.

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With its combination of legacy production, existing infrastructure and ongoing technical innovation, the Anadarko Basin continues to play an important role in maintaining domestic supply reliability and supporting industrial and power-generation demand across the central United States. The basin's multi-zone potential and moderate development costs have led to renewed operator activity, as natural gas demand expands through LNG exports and increasing AI-driven electricity demand.<sup>32</sup>

The Anadarko Basin is characterized by multiple geological formations—including the SCOOP (South Central Oklahoma Oil Province), STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher counties), Woodford Shale and Cherokee Shale, which together provide exposure to both dry gas and liquids-rich zones. These intervals offer extensive development potential through established drilling and completion techniques, allowing operators to target high-return projects across varying commodity price environments. The basin's mature gathering, processing and takeaway infrastructure ensures efficient market access to the Gulf Coast, Midwest and Mid-Con gas hubs.

As of March 31, 2026, WhiteHawk's Mid-Con position spans approximately 1.7 million gross DSU acres across the SCOOP, STACK and Arkoma plays, operated by established and well-capitalized producers such as Continental Resources and Devon Energy (NYSE: DVN). These operators maintain deep, de-risked inventories and continue to optimize recovery through longer laterals, tighter spacing and improved completion designs.

**Our Mineral and Royalty Interests** 

***Nature of Our Mineral and Royalty Interests***

WhiteHawk's portfolio consists primarily of producing and undeveloped mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region that provide the right to receive a share of production revenue from the sale of natural gas, natural gas liquids ("NGLs") and oil produced by third-party operators. These interests include fee mineral ownership, non-participating royalty interests and overriding royalty interests.

We own two types of interests: mineral and royalty interests and non-operating working interests. Of the mineral and royalty interests, we own three types: mineral interests, non-participating royalty interests ("NPRIs") and overriding royalty interests ("ORRIs"). For the three months ended March 31, 2026, our mineral and royalty interests accounted for approximately 98% of our royalty revenues and our non-operating working interests accounted for approximately 2% of our royalty revenues. For the year ended December 31, 2025, our mineral and royalty interests accounted for approximately 99% of our royalty revenues and our non-operating working interests accounted for approximately 1% of our royalty revenues. Each of these interests have different rights and obligations as further described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mineral Interests:* Mineral interests are perpetual real property interests rights of the owner to exploit,
mine and/or produce the minerals lying below the surface of the property. When we lease our mineral interests to third-party operators, we retain a royalty interest—the ongoing right to a portion of the revenue from any oil or gas later
produced—and receive a one-time payment known as a lease bonus. Typically, the resulting royalty interest is a cost-free percentage of production revenues for minerals extracted from the acreage. Holders
of royalty interests are generally not responsible for capital expenditures or lease operating expenses but may be responsible for certain post-production expenses and typically have limited environmental liability. While mineral interests are
usually perpetual, gas and oil leases have a set term. Therefore, if drilling stops or no production occurs during that term, the lease ends, and the mineral owner is free to lease the rights again to another party and receive another lease bonus.
Royalty interests expire upon the expiration of the gas and oil lease, but the mineral interests would be retained. Mineral interests represented approximately 92% of our mineral and royalty interests as of March 31, 2026.

<sup>32</sup> Enverus Data.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Participating Royalty Interest*. A NPRI has the same
characteristics as a standard royalty interest except that the term "non-participating" indicates that the interest owner has the right to participate in the execution of gas and oil leases but
does not share in the bonus or rentals from a gas and oil lease. NPRIs represented approximately 3% of our mineral and royalty interests as of March 31, 2026.

working interest. Like royalty interests, ORRIs do not confer an obligation to make capital expenditures or pay for lease operating expenses and have limited environmental liability; however, ORRIs may be calculated net of post-production expenses,
depending on how the ORRI is structured. ORRIs that are carved out of working interests are linked to the same underlying gas and oil lease that created the working interest and, therefore, ORRIs are typically subject to expiration upon the
expiration or termination of the underlying gas and oil lease. ORRIs represented approximately 5% of our mineral and royalty interests as of March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Operating Working Interest.* In addition to our mineral
and royalty interests, we own certain non-operating working interests acquired in connection with the PHX Acquisition. Non-operating working interest holders have the right to extract minerals from acreage
leased pursuant to a gas and oil lease from a mineral interest holder. Holders of working interests are responsible for their *pro rata* share of capital expenditures and lease operating expenses, but holders of working interests only receive
revenues after distributions have first been made to holders of royalty interests and ORRIs. Working interests expire upon the termination or expiration of the underlying gas and oil lease. As of March 31, 2026, our non-operating working
interest portfolio consisted of 437 gross (18.1 net) wells located exclusively in the Mid-Con region and accounted for approximately 2% of our royalty revenues. These non-operating working interests represented approximately 7% of our total proved
reserves as of December 31, 2025, 4% of our total production for the three months ended March 31, 2026 and 3% of our total production for the year ended December 31, 2025.

The following table presents information as of March 31, 2026 about our mineral and royalty interest acreage by the resource plays we consider most material to our current and future business and accounted for approximately 98% and 99% of our royalty revenue for the three months ended March 31, 2026 and the year ended December 31, 2025, respectively.

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|  | **Net<br>Mineral<br>Acres** | **Average<br>Royalty<br>Rate** | **NRA<br>100%<br>Basis<br>(Mineral**<br>**Interest)<sup>(2)</sup>** | **NRA<br>100%<br>Basis<br>(ORRIs)<sup>(2)</sup>** | **NRA<br>100%<br>Basis<br>(NPRIs)<sup>(2)</sup>** | **Total<br>NRAs<br>100%<br>Basis<sup>(2)</sup>** | **NRA<br>(1/8<sup>th</sup><br>Basis)** | **Gross**<br>**DSU**<br>**Acres** | **Implied<br>Average<br>Net<br>Revenue<br>Interest<br>Across<br>DSUs<sup>(1)</sup>** |
|  Appalachian Basin | 20286 | 16% | 3226 | 232 | 578 | 4035 | 32277 | 975000 | 0.41% |
|  Haynesville Basin | 5943 | 21% | 1248 | 60 |  | 1308 | 10464 | 600000 | 0.22% |
|  Mid-Continent Region | 63256 | 17% | 10564 | 487 |  | 11051 | 88406 | 1700000 | 0.65% |
|  Other | 6041 | 16% | 954 | 0 |  | 955 | 7638 | 150000 | 0.64% |
|  **Total** | **95526** | **17%** | **15992** | **779** | **578** | **17348** | **138785** | **3425000** | **0.51%** |

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(1) Calculated as total net royalty acres divided by gross DSU acres.

(2) Within the mineral and royalty industry, ownership is typically standardized to NRAs to compare portfolios on an
equivalent basis. NRAs are adjusted either to a 1/8 royalty (12.5%) standardized basis or to a 100% royalty equivalent.

As of March 31, 2026, our interest covered approximately 3.4 million gross DSU acres and, as of December 31, 2025, more than 10,900 producing wells. As of December 31, 2025 we held an economic interest in 13% of total U.S. natural gas production and in 2025 we had an interest in 18% of new wells drilled in the Appalachian and Haynesville

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Basins.<sup>33</sup> As of December 31, 2025, the estimated proved natural gas, NGL and crude oil reserves attributable to our interest are 86% natural gas, 10% NGLs and 4% crude oil, with $293,690 thousand of PV-10. Of these proved reserves, 98% were classified as PD reserves and 2% were classified as undeveloped reserves. For the year ended December 31, 2025, the average net daily production associated with our portfolio was 50,351 Mcfe/d, consisting of 45,442 Mcf/d of natural gas, 577 Bbls/d of NGLs and 241 Bbls/d of oil and on a pro forma basis, average net daily production of 67,255 Mcfe/d, consisting of 59,621 Mcf/d of natural gas, 790 Bbls/d of NGLs and 483 Bbls/d of oil. For the three months ended March 31, 2026, the average net daily production associated with our portfolio was 64,270 Mcfe/d, consisting of 56,812 Mcf/d of natural gas, 784 Bbls/d of NGLs and 459 Bbls/d of oil.

We earn most of our revenues through a steady stream of royalties and lease bonuses, all tied to the success of gas and oil production on our acreage. We differ from traditional upstream gas and oil companies as we, and any other royalty interest owner, do not pay for nor operate wells. All of the costs and risks involved in finding, drilling and maintaining wells are borne by the working interest owners. Royalty interest owners generally are only responsible for certain taxes tied to production, such as severance and property taxes, and fees related to transportation or marketing of gas and oil.

Because we do not pay for drilling or bear the risks of dry holes or operational setbacks, we typically enjoy much higher operating margins compared to our third-party operators. Our business model is more capital-light, focusing on management and acquisition of various mineral and royalty interests, rather than the direct, costly development capital necessary for the extraction of resources. This gives us a recurring income stream with less variability in free cash flow than the traditional exploration and production business.

As an active consolidator of mineral and royalty interests, WhiteHawk works closely with third-party operators throughout the lifecycle of each asset—from negotiating and optimizing lease terms at inception, to confirming timely in-pay status as wells are drilled and completed and continuously validating that we receive the correct revenue interest over the life of the well. This engagement has supported improved royalty terms, more favorable pricing provisions, and reduced post-production deductions, enhancing realized revenues and long-term returns.

WhiteHawk's mineral and royalty ownership model allows the Company to generate stable, capital-efficient cash flow from producing assets while maintaining organic growth potential through the continued development of its undeveloped mineral position without the need to pay for associated drilling capital expenditures. Over time, we have reinvested proceeds from lease bonuses and free cash flow from our assets to expand our footprint in the most economically attractive natural gas basins in the United States while maintaining a conservative balance sheet and disciplined capital strategy.

The following table provides information regarding our gross and net locations by region or basin based on technical parameters as of December 31, 2025. For additional information with respect to our gross and net locations, please see the section titled "Business—Natural Gas, NGL and Oil Data."

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Net Undeveloped<br>Location Count<sup>(4)</sup>** | **Average Lateral<br>Length** |
| **Region / Basin** | **Included in Proved<br>Reserves<sup>(2)</sup>** | **Other**<br>**Locations<sup>(3)</sup>** | **Total** | **Total** | **(feet)** |
|  Appalachian Basin | 229 | 2563 | 2792 | 8.7 | 13246 |
|  Haynesville Basin | 94 | 1487 | 1581 | 3.1 | 9267 |
|  Mid-Continent Basin<sup>(5)</sup> | 86 | 3866 | 3952 | 14.1 | 9314 |
|  Other<sup>(6)</sup> | 21 | 437 | 458 | 2.1 | 9864 |

---

(1) Numbers of gross well locations may vary based on actual lateral lengths drilled by operators.

(2) Includes Proved Undeveloped locations included as part of CG&A's reserve report dated March 13,
2026 with respect to the Company's proved reserves as of December 31, 2025. Includes WIPs and permits as defined by management.

<sup>33</sup> Enverus Data.

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(3) Includes locations not included as part of CG&A's reserve report dated March 13, 2026 with respect to
the Company's proved reserves as of December 31, 2025; however, such locations have been audited and approved by CG&A. Includes other undeveloped locations, as defined by management.

(4) Reflects management's estimated net revenue interest multiplied by Total Gross Undeveloped Locations as
audited by CG&A.

(5) Includes locations in the SCOOP, STACK, Cherokee, Arkoma and Fayetteville.

(6) Includes locations in the Bakken.

**Key Operators** 

We strive to acquire mineral and royalty interests in properties with top-tier E&P operators that are well capitalized, have a strong operational track record and that we believe will continue to increase production through the application of the latest drilling and completion techniques. Our royalty interests are developed and operated by many of the highest-quality natural gas producers in the United States. The graphs below highlight the portion of production from top operators captured on our position across each region in 2025:<sup>34</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g86452g26a01.jpg) ![LOGO](g86452g26b02.jpg) ![LOGO](g86452g26c03.jpg)

Collectively, in 2025, these 14 operators listed above controlled more than 79% of WhiteHawk's leased acreage and represented the leading producers in the Appalachian Basin, Haynesville Basin and Mid-Con region. Their scale, balance-sheet strength and technological capabilities enhance recovery efficiency, reduce breakeven costs and provide reliable long-term development of our mineral interests—directly supporting our ability to pay sustainable dividends to our investors.

**Strengths** 

We believe that the following competitive strengths will allow us to successfully capitalize on our market opportunities, execute our business strategies, and achieve our primary business objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Premier, large-scale natural gas mineral and royalty company in America's most productive gas basins.*** We have assembled one of the largest pure-play natural gas mineral and royalty portfolios in the United States, spanning approximately 3.4 million gross DSU acres as of March 31, 2026 and providing exposure to more than 10,900
producing wells as of December 31, 2025. Our acreage is concentrated in the Appalachian and Haynesville Basins, two of the most productive and lowest-cost sources of natural gas in the United States, which together accounted for more than 50%
of total U.S. dry gas production<sup>35</sup> in 2025, 81% of our royalty revenue in 2025 and 80% of our royalty revenue for the three months ended March 31, 2026. These basins feature thick, laterally
continuous shale intervals, high-pressure reservoirs, and well-developed gathering and long-haul pipeline infrastructure that enable some of the lowest breakeven development economics in the United States. The fact that 11% and 33%<sup>36</sup> of Appalachian and Haynesville Basin wells, respectively, were drilled on our acreage in 2025, is indicative that our assets are located in the core development areas of these premier gas plays.

<sup>34</sup> Enverus Data. Percentages exceed 100% due to rounding. 

<sup>35</sup> EIA Short-Term Energy Outlook.

<sup>36</sup> Enverus Data.

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We believe our proximity to the core development areas of these basins will provide long-term visibility into drilling activity and sustained royalty cash flow through consistent operator investments and stacked play potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-margin, capital-light business model.*** WhiteHawk's business model is designed to
generate substantial cash flow as our mineral and royalty interests have no drilling capital expenditure requirements and minimal operating costs. Our mineral and royalty interests allow us to capture the economic benefits of natural gas development
without bearing the capital risk or inflationary cost pressures typical of traditional E&P companies because we do not incur drilling, completion, lease operating expenses, or plugging and abandonment obligations at the end of a well's
productive life. This capital-light model enables us to convert a significant portion of our revenue directly into free cash flow. Our recurring costs are limited primarily to production taxes, gathering, processing, and transportation expenses, and
modest general and administrative overhead.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-quality assets supported by top-tier operators with visible development activity*.** Our mineral interests are operated by leading, well-capitalized E&P companies in some of the most productive and economically attractive natural gas basins in the United States. In 2025, the Appalachian Basin
accounted for approximately 38% of the total U.S. natural gas production,<sup>37</sup> with WhiteHawk's acreage operated by premier producers including EQT, Antero Resources, Range Resources and CNX
Resources. Combined, these operators accounted for approximately 96% of our royalty revenue in the Appalachian Basin in 2025 and approximately 97% of our royalty revenue in the Appalachian Basin for the three months ended March 31, 2026. The
Haynesville Basin contributed approximately 15% of total U.S. natural gas production in 2025,<sup>38</sup> with WhiteHawk's acreage operated by premier producers including Expand Energy, Comstock
Resources and Aethon Energy. Combined, these operators accounted for approximately 58% of our royalty revenue in the Haynesville Basin for 2025 and approximately 52% of our royalty revenue in the Haynesville Basin for the three months ended
March 31, 2026. As of December 31, 2025, our portfolio includes nearly 430 wells in progress ("WIPs") and permitted locations, and more than 8,000 remaining identified undeveloped locations. We believe this embedded
inventory provides a visible, multi-year growth runway that requires no additional capital investment from us. Our exposure to operators with strong balance sheets, basin-leading drilling productivity, and disciplined capital programs is designed to
enhance the stability of our production base and support long-term royalty cash flow generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Capturing value from AI-driven electricity demand growth.*** We are positioned to benefit from the accelerating rise in electricity demand driven by AI and data center expansion, much of which is expected to be met by natural gas. Natural gas is the primary fuel for U.S. power generation accounting for
approximately 41%<sup>39</sup> of total electricity output in 2025. In line with this trend, our Appalachian Basin acreage is located near 21 publicly announced new or planned natural
gas fired power plants representing what management estimates to be approximately 7.8 Bcf/d of total natural gas demand associated with new power plants expected by 2031.<sup>40</sup> The ongoing expansion
of AI-driven and digital-infrastructure power needs is expected to support long-term natural gas consumption and price stability, encouraging sustained operator investment and development activity on our
mineral acreage and providing predictable recurring cash flows that can be distributed to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Positioned to capitalize on LNG export growth.*** U.S. LNG export capacity is expected to nearly
double from approximately 17 Bcf/d in 2025 to nearly 34 Bcf/d by 2031<sup>41</sup>, as European and Asian buyers seek secure, competitively priced supply and diversify away from oil-indexed benchmarks or regional

<sup>37</sup> EIA Short-Term Energy Outlook.

<sup>38</sup> EIA Short-Term Energy Outlook.

<sup>39</sup> EIA Electric Monthly.

<sup>40</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>41</sup> EIA Natural Gas Exports. Includes current operating and under construction projects only.

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international benchmarks such as JKM (Asia) and TTF (Europe), where the average pricing is 3-4x Henry Hub pricing in the United States for the year 2025.<sup>42</sup> In addition, as of December 2025, approximately 28 Bcf/d of incremental LNG capacity is in various stages of regulatory review and development, representing further upside to long-term U.S. export potential.<sup>43</sup> The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position our assets to benefit directly from this expansion. Sustained growth in U.S. LNG exports is expected to drive long-term feed-gas demand from the basins where our mineral interests are concentrated, for years to come. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Proven management team with a track record of public company value creation and accretive growth.*** Our management team is among the most experienced and acquisitive in the minerals sector, with more than 125 years of combined industry experience and over $31 billion of completed energy transactions across the upstream, midstream, and
mineral and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy, Atlas Pipeline Partners and Falcon Minerals, each a successful public company that created substantial shareholder value through
disciplined growth, accretive acquisitions, and strategic monetization. Since our founding, WhiteHawk has been the most active acquirer of natural gas minerals and royalties, completing eight large transactions across the most prolific gas-oriented basins in the United States.<sup>44</sup> Our ability to consistently source, evaluate, and close accretive transactions underscores WhiteHawk's
leadership as a focused, data-driven consolidator with proven expertise in capital allocation, M&A execution and public-market stewardship.

**Strategies** 

Our primary business objective is to deliver shareholder value through dividends and total return from our mineral interests in premier natural gas-weighted properties. We intend to accomplish this objective by executing the following key strategies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Provide sustained income to investors through strong Cash Available for Distribution generation and cash dividends.*** We expect initially to pay dividends from our Cash Available for Distribution with the remaining cash flow to be used for additional acquisitions that meet our investment criteria or to maintain our
conservative capital structure. As mineral and royalty owners, we benefit from the continued organic development of our acreage and are able to convert a high percentage of our revenues to Cash Available for Distribution (as defined herein). We
believe that our mineral and royalty interests are positioned for growth as E&P operators continue to concentrate on the Appalachian Basin, Haynesville Basin and Mid-Con region to meet growing global
demand for natural gas. Since our inception in 2022, we have paid 49 consecutive monthly common equity dividends, totaling approximately $37 million and representing a cash-on-cash return of approximately 38%<sup>45</sup> to our initial investors through March 31, 2026. We believe our
efficient, conservatively levered structure, with low capital intensity and disciplined financial management, provides a sustainable foundation for attractive dividend yields, balance sheet flexibility, and long-term value creation for shareholders.
There can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the amount of any such dividends. See "Risk Factors—Risks Related to Our Business—We expect to distribute a substantial
majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions" and "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay
regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited…" for additional discussion of factors that could impact our ability to pay dividends, including
covenants

<sup>42</sup> FactSet LNG Pricing.

<sup>43</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities.

<sup>44</sup> Enverus Data.

<sup>45</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

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under our Senior Notes and Revolving Credit Facility. Please also read "Dividend Policy," "Description of Material Indebtedness," "Certain Relationships and Related Party Transactions—Internalization" and "Certain Relationships and Related Party Transactions—Investment Management Agreement—Liquidity Incentive Fee" for other factors that might affect our ability or the amount of cash available to pay dividends. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Strategically source and acquire de-risked, cash-flowing natural gas mineral and royalty interests of scale from long-term partnerships.*** Our strategy focuses on acquiring high-quality mineral and royalty interests that generate immediate cash flow and offer long-term development visibility. We target
assets operated by leading, well-capitalized producers in the core of the Appalachian Basin, Haynesville Basin, and Mid-Con region, where continued drilling activity provides durable revenue growth without
direct capital risk exposure. WhiteHawk differentiates itself through a disciplined, partnership-oriented sourcing approach with private-equity sponsors and other institutional owners seeking liquidity from later-life funds. This positions WhiteHawk
as one of the few large-scale consolidators of natural gas-weighted minerals, particularly in the Appalachian Basin, which remains underrepresented in public minerals markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Pursue disciplined, accretive acquisitions in premier natural gas plays.*** We intend to grow our
portfolio through the disciplined acquisition of high-quality natural gas mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region. By leveraging our management team's
extensive industry relationships, and proprietary geologic and title data, we target assets that can provide accretive growth in shareholder value while strengthening our production and reserve base. Since inception, we have been among the most
active consolidators in the natural gas minerals sector, completing eight transactions that have materially increased our scale and enhanced cash flow. These acquisitions have been highly accretive to shareholders and have resulted in approximately
38%<sup>46</sup> cash-on-cash return to our initial investors. We believe current market conditions remain highly favorable for
consolidation, as fragmented ownership across numerous private sellers continues to create opportunities for accretive acquisitions that meet our investment criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Optimize portfolio to maximize Cash Available for Distribution and maintain diversified exposure.*** We actively manage our portfolio to prioritize acreage with a strong cash-flow base, visible near-term development, and substantial future inventory. A core component of this strategy is maintaining a broad, diversified mineral
footprint across multiple core natural gas basins, encompassing an average NRI of 0.69% in more than 10,900 producing wells as of December 31, 2025, with additional wells consistently in various stages of development across a footprint
exceeding 3.4 million gross DSU acres as of March 31, 2026. This scale and diversity provide exposure to the most prolific, lowest-cost natural gas plays in the United States while reducing reliance on any single operator or well. The
result is a balanced portfolio designed to generate resilient cash flow and mitigate volatility through commodity cycles. Through disciplined asset management, targeted reinvestment, and continued optimization, we seek to enhance portfolio
productivity, strengthen cash flow stability and grow our dividend over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Maintain conservative and flexible capital structure to support our business and facilitate long-term operations.*** We are committed to maintaining a conservative capital structure that will afford us the financial flexibility to execute our business strategies on an ongoing basis. We expect to maintain a prudent level of debt to support our
acquisition and growth strategy while preserving balance sheet flexibility. We believe that the combination of cash flow from operations, proceeds from this offering, and selective use of other debt and equity financings will provide us with
sufficient liquidity to pursue accretive acquisitions, enhance our cash flow profile, and return capital to our shareholders. We intend to manage our leverage conservatively and finance future acquisitions through cash flow from operations or
opportunistically utilizing equity or debt to support disciplined growth.

<sup>46</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Commitment to responsible natural gas development and governance excellence.*** Natural gas, the
primary driver of our royalty income, is a critical, lower-emission component of the modern energy mix and remains central to meeting global demand for reliable and affordable power. As a cleaner-burning fuel, it provides consistent and scalable
energy that complements renewable energy and supports grid stability. The operators developing our mineral acreage, including EQT, Range Resources, Antero Resources and CNX Resources, have each adopted measurable standards focused on reducing
emissions and promoting responsible development. With all of our assets located in the most economic natural gas basins in the United States, we are positioned to benefit from the growing recognition of natural gas as a reliable, cleaner source of
energy. We also intend to reinforce the durability of our business through rigorous corporate governance, transparency, and alignment with our shareholders. Our governance framework emphasizes independence, accountability, and disciplined capital
allocation. We believe our governance framework reduces our risk profile and sustains investor confidence through commodity cycles. We believe our adherence to governance best practices and partnerships with responsible operators differentiate
WhiteHawk as a transparent, sustainable, and income-oriented energy investment capable of delivering attractive returns over the long term.

**Recent Developments** 

***PHX Acquisition***

Pursuant to the PHX Merger Agreement, by and among the Company Parties and PHX, the Company Parties agreed to acquire in an all-cash transaction all issued and outstanding shares of PHX's common stock for a purchase price of $4.35 per share, a total value of $194.8 million, including PHX's net debt.

Subsequently, on June 23, 2025, the Company Parties closed on the PHX Acquisition and fully acquired all of the outstanding shares of PHX's common stock. The PHX Acquisition increased the Company's mineral and royalty ownership position by acquiring additional mineral and royalty interests in the Haynesville Shale as well as the SCOOP/STACK, Bakken, Arkoma and others. The PHX Acquisition also increased the Company's exposure to some of its top third-party operators, including Expand Energy, Comstock Resources and Aethon Energy in the Haynesville Shale, while adding other top operators including Continental Resources and Devon Energy in the SCOOP/STACK region in Oklahoma. As a result of the PHX Acquisition, WhiteHawk added approximately 1.8 million gross DSU acres of premier natural gas mineral and royalty assets, significantly expanding its footprint in the core of the Haynesville Shale in East Texas/North Louisiana and diversifying its portfolio into the SCOOP/STACK region.

***Marcellus Assets***

On March 31, 2025, the Company purchased in the Three Rivers Royalty Acquisition mineral and royalty interests in the Marcellus Shale for a purchase price of $118.0 million from the TRR Seller. The Company believes these Marcellus Shale assets represent some of the highest quality natural gas reserves in the United States.

***Haynesville Assets***

On March 2, 2026, the Company and its affiliate entered into a definitive purchase and sale agreement to acquire certain natural gas mineral and royalty interests primarily located in the core of the Haynesville Shale in Louisiana and east Texas ("Haynesville Assets"). The Haynesville Assets cover approximately 150,000 gross DSU acres and will further increase the Company's exposure to high-quality development across the Haynesville and Mid-Bossier formations. The assets are concentrated in core areas of the basin and are operated by established, well-capitalized operators. The Haynesville Assets acquisition closed on April 3, 2026. We funded the purchase price of the Haynesville Assets acquisition primarily through the issuance of approximately

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$37.8 million of shares of Series D preferred stock. See "Description of Capital Stock—Preferred Stock— Series D Preferred Stock." The Company intends to use a portion of the proceeds from this offering to redeem any shares of Series D Preferred Stock outstanding. See "Use of Proceeds." To the extent the proceeds of this offering are insufficient to redeem the total aggregate principal amount of Series D Preferred Stock outstanding, the Company intends to use cash on hand to fully redeem the total aggregate principal amount of Series D Preferred Stock outstanding.

***Internalization***

In connection with this offering, we will consummate the Internalization, pursuant to which WhiteHawk OpCo will acquire all of the outstanding equity interests in ManagementCo from the Management Contributor in exchange for 3,750,000 OpCo Interests and an equal number of shares of Class B common stock (based on an initial public offering price of $26.00 per share of Class A common stock, which is the midpoint of the range set forth on the cover) with an aggregate value equal to 75% of the Internalization Price of $130.0 million (subject to an adjustment up or down, depending on the final initial public offering price). In addition, 25% of the Internalization Price (the "Earnout Amount") is subject to our achievement of certain Adjusted EBITDA targets during each of the three Earnout Years (as defined herein). The Earnout Amount, if earned, is payable solely in the form of up to an additional 1,250,000 OpCo Interests and an equal number of shares of Class B common stock (based on an assumed initial public offering price of $26.00 per share of Class A common stock, which is the midpoint of the range set forth on the cover). The Continuing Equity Owners will also be entitled to receive dividend equivalent rights ("DERs") in respect of the Earnout Amount equal to the dividends and distributions that would have been paid on the OpCo Interests issuable in respect of the Earnout Amount had such OpCo Interests been outstanding from the closing of the Internalization. Any such DER payments not already paid that are attributable to any portion of the Earnout Amount that is ultimately not earned will be forfeited. As a result of the Internalization, ManagementCo will become a wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed. See "Certain Relationships and Related Party Transactions—Internalization" for a more detailed description of the Contribution Agreement and the Internalization.

***Liquidity Incentive Fee***

In connection with this offering, approximately $13.6 million (estimated based on an assumed public offering price of $26.00 per share, which is the midpoint of the range set forth on the cover) will become payable as a Liquidity Incentive Fee to the Management Contributor under the Management Agreement. The Liquidity Incentive Fee is expected to be paid by the end of the second quarter of 2026. See "Certain Relationships and Related Party Transactions—Investment Management Agreement—Liquidity Incentive Fee."

**Summary of the Transactions** 

In connection with the consummation of the offering, we will consummate the following organizational transactions (the "Transactions"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will amend and restate our certificate of incorporation (our "amended and restated certificate of
incorporation") to, among other things, (i) change our name to "WhiteHawk Minerals Corp."; (ii) provide for the reclassification of shares held by the Legacy Common Stock Investors issued and outstanding immediately prior to
the offering into one validly issued, fully paid and non-assessable share of our Class A common stock, on a one-for-one basis (such reclassification, the "Common Stock Reclassification"); (iii) provide for an adjustment to the number of
authorized shares such that our authorized capital stock shall consist of 250,000,000 shares of Class A common stock, par value $0.0001 per share, 100,000,000 shares of Class B common stock, par value $0.0001 per share, and 10,000,000 shares of
preferred stock, par value $0.0001 per share; (iv) authorize our board of directors to establish and issue one or more series of preferred stock from time to time and to fix the rights, preferences, privileges and restrictions thereof; (v) provide
for the creation of Class B common stock in

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connection with our anticipated Up-C structure, with shares of Class B common stock to be issued to Continuing Equity Owners, with each share of Class B common stock entitled to one vote per share and no economic rights; and (vi) establish that Legacy Common Stock Investors are prohibited from selling their Class A common stock or related securities for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• WhiteHawk OpCo will enter into an amended and restated limited partnership agreement (the "OpCo
Agreement") to, among other things, (i) appoint OP GP as the sole general partner of WhiteHawk OpCo with the authority to manage and control the business and affairs of WhiteHawk OpCo, (ii) authorize the issuance of OpCo Interests to
us in exchange for the interests we own in WhiteHawk OpCo prior to this offering as well as the proceeds from this offering, (iii) provide the Continuing Equity Owners with the right to require WhiteHawk OpCo to redeem their OpCo Interests for,
at our election (determined solely by our independent directors who are disinterested), cash or newly-issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments), (iv) provide that, in connection with any
redemption or exchange of OpCo Interests, if applicable, a corresponding number of shares of Class B common stock held by the redeeming or exchanging Continuing Equity Owner will automatically be transferred to us for no consideration and canceled,
and (v) authorize the issuance to us of such number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of our Series B preferred stock outstanding upon the consummation of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will enter into a registration rights agreement with certain of our Subsequent Continuing Equity Owners
(the "Registration Rights Agreement"), as further described in "Certain Relationships and Related Party Transactions;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in connection with and in order to effectuate the Internalization, the Contribution Agreement will be entered
into by the parties thereto, pursuant to which, among other things, OpCo will acquire all of the outstanding equity interests in ManagementCo from the Management Contributor in exchange for OpCo Interests and shares of Class B common stock.
Prior to the closing of this offering, ManagementCo, as our external manager, provided management, acquisition, disposition and oversight functions with respect to us and WhiteHawk OpCo. As a result of the Internalization, ManagementCo will become a
wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will issue 6,925,000 shares of our Class A common stock to the purchasers in this offering (or
7,963,750 shares if the underwriters exercise in full their option to purchase additional shares of Class A common stock) in exchange for net proceeds of approximately $167.4 million (or approximately $192.6 million if the
underwriters exercise in full their option to purchase additional shares of Class A common stock) based upon an assumed initial public offering price of $26.00 per share (which is the midpoint of the estimated price range set forth on the cover page
of this prospectus), less the underwriting discount.

Immediately following the consummation of the Transactions (including this offering):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will be a holding company and our principal assets will consist of OpCo Interests we acquire or are otherwise
issued directly from WhiteHawk OpCo and all the membership interests in OP GP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as the sole member of OP GP, the sole general partner of WhiteHawk OpCo, we will control the business and affairs
of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own, directly or indirectly, 22,221,579 OpCo Interests, representing approximately 85.6% of the common
economic interest in WhiteHawk OpCo (or 23,260,329 OpCo Interests, representing approximately 86.1% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of Class A
common stock) (based on outstanding OpCo Interests and excluding Series B preferred units);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own a number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of Series B
preferred stock outstanding after the consummation of the Transactions, representing 100% of the preferred units of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will no longer have any shares of Series D preferred stock outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Management Contributor will own (i) 3,750,000 OpCo Interests, representing approximately 14.4% of the
common economic interest in WhiteHawk OpCo (or 3,750,000 OpCo Interests, representing approximately 13.9% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of
Class A common stock) (based on outstanding OpCo Interests and excluding Series B preferred units) and (ii) 3,750,000 shares of our Class B common stock, representing approximately 14.4% of the combined voting power of all
of our common stock (or 3,750,000 shares of our Class B common stock, representing approximately 13.9% if the underwriters exercise in full their option to purchase additional shares of Class A common stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the purchasers in this offering will own (i) 6,925,000 shares of our Class A common stock (or
7,963,750 shares of our Class A common stock if the underwriters exercise in full their option to purchase additional shares of Class A common stock), representing approximately 26.7% of the combined voting power of all of our common
stock and 31.2% of the economic interest in us (or approximately 29.5% of the combined voting power and 34.2% of the economic interest if the underwriters exercise in full their option to purchase additional shares of Class A common stock), and
(ii) through our ownership of OpCo Interests, indirectly will hold approximately 22.8% of the common economic interest in WhiteHawk OpCo (or approximately 25.4% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full
their option to purchase additional shares of Class A common stock) (based on outstanding OpCo Interests and excluding Series B preferred units).

Following the first anniversary of the closing of the Internalization, the Management Contributor expects to distribute the OpCo Interests and shares of Class B common stock received by the Management Contributor in connection with the Internalization to the Subsequent Continuing Equity Owners, at which time the Subsequent Continuing Equity Owners will execute a joinder to the OpCo Agreement. Following the consummation of such distribution and execution of such joinder, the Subsequent Continuing Equity Owners may exchange at each of their respective options, in whole or in part from time to time, their OpCo Interests (together with a corresponding number of shares of Class B common stock), for, at our election (determined solely by our independent directors (within the meaning of the NYSE rules) who are disinterested), cash or newly-issued shares of our Class A common stock as described in "Certain Relationships and Related Party Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions." Unless otherwise indicated, this prospectus does not give effect to the distribution of OpCo Interests or shares of Class B common stock by the Management Contributor to the Subsequent Continuing Equity Owners.

The foregoing description of the Transactions does not give effect to OpCo Interests or shares of our Class B common stock that may be issued as a part of the Earnout Amount (as defined herein), as more fully described in the section titled "Certain Relationships and Related Party Transactions—Internalization—Earnout."

Following the Transactions, including this offering, we will control the management of WhiteHawk OpCo through our ownership of OP GP. As a result, we will consolidate WhiteHawk OpCo in our consolidated financial statements.

Unless otherwise indicated, this prospectus assumes the shares of Class A common stock are offered at $26.00 per share (the midpoint of the estimated price range set forth on the cover page of this prospectus). For more information regarding the impact of the initial offering price on the share information included throughout this prospectus, see "The Offering."

Our corporate structure following this offering, as described below, is commonly referred to as an Up-C structure. The Up-C structure will allow the Continuing Equity Owners to retain their equity ownership in WhiteHawk

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OpCo following the Transactions and to continue to realize tax benefits associated with owning interests in an entity that is treated as a partnership, or "flow-through" entity, for U.S. federal income tax purposes. Investors in this offering will, by contrast, hold their equity ownership in us, a Delaware corporation that is a domestic corporation for U.S. federal income tax purposes, in the form of shares of Class A common stock. One of the tax benefits to the Continuing Equity Owners associated with this structure is that future taxable income of WhiteHawk OpCo that is allocated to the Continuing Equity Owners will be taxed on a flow-through basis and, therefore, will not be subject to corporate taxes at the entity level. Moreover, the Up-C structure permits the Continuing Equity Owners to defer the recognition of taxable gain on their OpCo Interests until they elect to exercise their redemption right (rather than recognizing such gain at the time of this offering). Additionally, because the Subsequent Continuing Equity Owners may at their election have their OpCo Interests redeemed by WhiteHawk OpCo (or at our option, directly exchanged by us) for newly issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments, including for stock splits, stock dividends, and reclassifications) or, at our option, for cash, the Up-C structure also provides the Subsequent Continuing Equity Owners with potential liquidity that holders of non-publicly traded limited liability companies are not typically afforded. Upon any such redemption or exchange of OpCo Interests for shares of Class A common stock, the Company may benefit from certain tax attributes, including potential increases in tax basis that may reduce the amount of tax that would otherwise be payable by us. In connection with any such redemption or exchange of OpCo Interests, a corresponding number of shares of Class B common stock held by the relevant Continuing Equity Owner will automatically be transferred to us for no consideration and be canceled.

For more information regarding the Transactions and our structure, see "Our Organizational Structure."

**Organizational Structure** 

The diagram below depicts our organizational structure after giving effect to the Transactions, including this offering and proposed use of proceeds, assuming no exercise by the underwriters of their option to purchase additional shares of Class A common stock and does not give effect to the issuance of any OpCo Interests or shares of Class B common stock in respect of the Earnout Amount.

![LOGO](g86452g06u13.jpg)

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(1) Legacy Common Stock Investors will be prohibited from selling their Class A common stock or related securities
for up to 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering.

(2) We intend to use a portion of the proceeds from this offering to redeem any shares of Series D preferred
stock outstanding. See "Use of Proceeds." To the extent the proceeds of offering are insufficient to redeem the total aggregate principal amount of Series D preferred stock outstanding, the Company intends to use cash on hand to
fully redeem the total aggregate principal amount of Series D preferred stock outstanding. As a result, following this offering, the only outstanding preferred stock outstanding will be the Series B preferred stock.

**Corporate Information** 

WhiteHawk Income Corporation was formed on February 18, 2022 and is the issuer of the Class A common stock offered by this prospectus. We intend to change our corporate name to WhiteHawk Minerals Corp. in connection with the closing of this offering. See "—Summary of the Transactions" and "Our Organizational Structure." Our principal executive offices are located at 2000 Market Street, Suite 910, Philadelphia, PA 19103, and our telephone number is (610) 484-3412. Our corporate website address is https://www.whitehawkenergy.com/. Our website and the information contained on or that can be accessed through our website is not deemed to be incorporated by reference in, and is not considered part of, this prospectus. You should not rely on any such information in making your decision whether to purchase our Class A common stock.

**Summary of Risk Factors** 

Investing in our Class A common stock involves a number of risks. The following is a summary of the principal factors that make an investment in our Class A common stock speculative or risky, all of which are more fully described in the section titled "Risk Factors" included elsewhere in this prospectus. This summary should be read in conjunction with the "Risk Factors" section and should not be relied upon as an exhaustive summary of the material risks facing our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our revenues are primarily derived from mineral and royalty payments that are based on the price of natural gas,
NGL and oil which is subject to volatility due to factors beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower natural gas, NGL and oil prices or negative adjustments of natural gas, NGL and oil prices may result in
significant impairment charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our derivative activities may limit the cash flows received from natural gas and oil sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of our properties relies exclusively on our third-party operators and these operators may fail to
develop our existing inventory of mineral and royalty acreage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Drilling for and producing natural gas, NGLs and oil are high-risk activities with many uncertainties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our third-party operators may fail to drill sufficient wells to hold acreage before lease expiration which may
result in loss of lease and prospective drilling opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience delays in the receipt of royalty payments and may not be able to terminate leases with
defaulting lessees if our third-party operators declare bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may incur losses as a result of title defects or other issues in the properties we own;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A limited number of third-party operators currently generate a significant portion of our revenue and accounts
receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The substantial majority of our business is concentrated in the Appalachian and Haynesville Basins, making us
vulnerable to risks associated with such geographic concentration of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to risks related to our wells where we are a non-operating working interest owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our future success depends on replacing reserves through acquisitions and there may be constraints in our ability
to finance acquisitions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have experienced significant business and portfolio growth in a short time, and our significant growth rates
and financial results may not be sustainable or indicative of future financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any acquisition of additional mineral and royalty interests that we complete will be subject to substantial
risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our failure to retain our key personnel or attract additional qualified personnel could negatively affect our
business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our estimated proved reserves are based on many assumptions that may prove to be inaccurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our identified drilling locations are susceptible to uncertainties that could materially alter the occurrence or
timing of their drilling and there is no guarantee that our estimates will be materially consistent with actual drilling activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on our third-party operators, other third parties and government databases for information regarding our
assets and such information may be incorrect, incomplete or lost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be subject to information technology system failures, network disruptions, cyber-attacks or other breaches
in data security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Declining general economic, business or industry conditions, which could have a material adverse effect on our
business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our industry is highly competitive, and competitive pressures could negatively affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exported liquefied natural gas could fail to be a competitive source of energy for the United States or
international markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our growth strategy is partly dependent upon the continued expansion of electricity demand driven by AI data
center development and expectations regarding increased demand may not materialize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The unavailability, high cost or shortages of equipment, raw materials, supplies or personnel for our third-party
operators related to developing and operating our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The marketability of natural gas, NGLs and crude oil is dependent on the availability of equipment and
transportation facilities that is outside of our and our third-party operators' control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our third-party operators are subject to significant governmental regulations, and governmental authorities can
delay or deny permits and approvals or change legal requirements governing our business, which could restrict their operations, increase costs of conducting our business, and delay our implementation of, or cause us to change, our business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development and enactment of climate change legislation as well as increased attention to sustainability may
impact our business or the business of our third-party operators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future legislative or regulatory changes may have a material adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our use of borrowings to finance our business exposes us to risks and any future indebtedness we may incur could
further increase the risks associated with our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We recently restated our audited consolidated financial statements to correct certain errors and have identified
material weaknesses in our internal control over financial reporting that caused our management to conclude that we did not maintain effective internal control over financial reporting and disclosure controls and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No market currently exists for our Class A common stock, and an active, liquid trading market for our
Class A common stock may not develop, which may cause our Class A common stock to trade at a discount from the initial offering price and make it difficult for you to sell the Class A common stock you purchase;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We cannot predict the effect our dual class structure may have on the market price of our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our organizational structure confers certain benefits upon the Continuing Equity Owners that will not benefit
holders of our Class A common stock to the same extent that it will benefit the Continuing Equity Owners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delaware law and anti-takeover provisions in our governing documents, to be adopted upon the consummation of this
offering, may have the effect of delaying or preventing a change of control or changes in our management and may deprive our investors of the opportunity to receive a premium for their shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to pay regular dividends to our stockholders may be limited by our financial condition, results of
operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The requirements of being a public company may strain our resources, divert management's attention and
affect our ability to attract and retain qualified board members and officers.

For a discussion of these and other risks you should consider before making an investment in our common stock, see the section entitled "Risk Factors."

**Emerging Growth Company** 

We are an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the JOBS Act. For as long as we are an emerging growth company, unlike other public companies that do not meet those qualifications, we are not required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide an auditor's attestation report on management's assessment of the effectiveness of our system
of internal control over financial reporting pursuant to Section 404(b) of Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide more than two years of audited financial statements and related management's discussion and
analysis of financial condition and results of operations in a registration statement on Form S-1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with any new requirements adopted by the Public Company Accounting Oversight Board ("PCAOB")
requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide certain disclosure regarding executive compensation required of larger public companies or hold
stockholder advisory votes on executive compensation required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain stockholder approval of any golden parachute payments not previously approved.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can use the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This permits an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of this extended transition period and, as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies.

We will cease to be an "emerging growth company" upon the earliest of: (i) the last day of the first fiscal year in which our annual gross revenues are $1.235 billion or more; (ii) the date on which we have issued more than $1.0 billion of non-convertible debt over a three-year period; (iii) the last day of the fiscal year following the fifth

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anniversary of our initial public offering; or (iv) the date on which we have been deemed a "large accelerated filer," which will occur as of the end of any fiscal year in which we (A) have an aggregate worldwide market value of voting and non-voting shares of common equity securities held by our non-affiliates of $700 million or more as of the last business day of our most recently completed second fiscal quarter, (B) have been subject to the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), for a period of at least 12 calendar months, (C) have filed at least one annual report pursuant to Section 13(a) or 15(d) of the Exchange Act, and (D) are no longer eligible to use the requirements for "smaller reporting companies," as defined in the Exchange Act, for our annual and quarterly reports.

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**THE OFFERING** 

Issuer WhiteHawk Income Corporation (to be changed to WhiteHawk Minerals Corp. in connection with the closing of the offering).

Class A common stock offered by us 6,925,000 shares (or 7,963,750 shares, if the underwriters exercise in full their option to purchase additional shares).

OpCo Interests to be outstanding after this offering 25,971,579 OpCo Interests (or 27,010,329 OpCo Interests if the underwriters exercise their option to purchase additional shares of Class A common stock in full).

Option to purchase additional shares We have granted the underwriters a 30-day option to purchase up to an aggregate of 1,038,750 additional shares of our Class A common stock to the extent the underwriters sell more than 6,925,000 shares of Class A common stock in this offering.

Class A common stock to be outstanding after this offering 22,221,579 shares (or 23,260,329 shares if the underwriters exercise in full their option to purchase additional shares).

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| Shares of Class B common stock to be outstanding immediately after this offering  | 3,750,000 shares, representing approximately 14.4% of the combined voting power of all of our common stock (or approximately 13.9% of the combined voting power of all of our common stock if the underwriters exercise in full their option to purchase additional shares of Class A common stock) and no economic interest in WhiteHawk Minerals Corp. |

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| OpCo Interests to be held by us immediately after this offering  | 22,221,579 OpCo Interests, representing approximately 85.6% of the common economic interest in WhiteHawk OpCo (or 23,260,329 OpCo Interests, representing approximately 86.1% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of Class A common stock) (based on outstanding OpCo Interests and excluding Series B preferred units). |

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| OpCo Interests to be held directly by the Management Contributor immediately after this offering  | 3,750,000 OpCo Interests, representing approximately 14.4% of the common economic interest in WhiteHawk OpCo (or approximately 13.9% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of Class A common stock) (based on outstanding OpCo Interests and excluding Series B preferred units). Certain Continuing Equity Owners will also hold shares of Class A common stock after this offering. See "Principal Stockholders." Unless otherwise indicated, this prospectus does not give effect to the distribution of OpCo  |

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Interests or shares of Class B common stock by the Management Contributor to the Subsequent Continuing Equity Owners.

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| Ratio of shares of Class A common stock to OpCo Interests  | The OpCo Agreement will require that we and WhiteHawk OpCo at all times maintain a one-to-one ratio between the number of shares of Class A common stock issued by us and the number of OpCo Interests owned by us. |

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| Ratio of shares of Class B common stock to OpCo Interests  | Our amended and restated certificate of incorporation and the OpCo Agreement will require that we and WhiteHawk OpCo at all times maintain a one-to-one ratio between the number of shares of Class B common stock owned by the Continuing Equity Owners and their respective permitted transferees and the number of OpCo Interests owned by the Continuing Equity Owners and their respective permitted transferees. Immediately after the Transactions, the Management Contributor will own 100.0% of the outstanding shares of our Class B common stock. |

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| Permitted holders of shares of Class B common stock  | Only the Continuing Equity Owners and the permitted transferees of Class B common stock as described in this prospectus will be permitted to hold shares of our Class B common stock. See "Certain Relationships and Related Party Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions." |

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| Voting rights  | Holders of shares of our Class A common stock and Class B common stock will vote together as a single class on all matters presented to stockholders for their vote or approval, except as otherwise required by law or our amended and restated certificate of incorporation. Each share of our Class A common stock and Class B common stock entitles its holders to one vote per share on all matters presented to our stockholders generally. See "Description of Capital Stock." |

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| Redemption rights of holders of OpCo Interests  | The Subsequent Continuing Equity Owners may, subject to certain exceptions, from time to time at each of their options require WhiteHawk OpCo to redeem all or a portion of their OpCo Interests in exchange for, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), newly-issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments, including for stock splits, stock dividends, and reclassifications) or a cash payment equal to a volume weighted average market price of one share of our Class A common stock for each OpCo Interest so redeemed, in each case, in accordance with the terms of the OpCo Agreement; provided that, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), we may effect a direct exchange by us of such Class A common stock or  |

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such cash, as applicable, for such OpCo Interests. Simultaneously with the payment of cash or shares of Class A common stock, as applicable, in connection with a redemption or exchange of OpCo Interests pursuant to the terms of the OpCo Agreement, a number of shares of our Class B common stock registered in the name of the redeeming or exchanging Continuing Equity Owner and permitted transferees will automatically be transferred to us for no consideration on a one-for-one basis with the number of OpCo Interests so redeemed or exchanged and such shares of Class B common stock will be canceled. See "Certain Relationships and Related Party Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions." <br>

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|:---|:---|
| Use of proceeds  | We estimate that the net proceeds from the sale of our Class A common stock in this offering, after deducting the underwriting discount and estimated offering expenses payable by us, will be approximately $160.9 million (or $186.1 million if the underwriters exercise their option to purchase additional shares of Class A common stock in full) based on an assumed initial public offering price of $26.00 per share (the midpoint of the price range set forth on the cover of this prospectus). |

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We intend to use the net proceeds from this offering, as well as cash on hand, as follows: (i) approximately $162.7 million to prepay, in part, the outstanding principal of our Senior Notes (including a make-whole amount of approximately $14.6 million and a prepayment premium of approximately $3.0 million to the existing holders, in each case as required under the terms of our existing Note Purchase Agreement), (ii) approximately $37.0 million for the redemption of all of the outstanding shares of our Series D preferred stock, and (iii) the remainder for other general corporate purposes.

We are a holding company and our only assets after consummation of this offering will be our ownership of OpCo Interests and membership units in OP GP. Accordingly, we intend to use the net proceeds from this offering to purchase newly issued OpCo Interests from WhiteHawk OpCo at a price per unit equal to the initial public offering price per share of Class A common stock, less estimated underwriting discounts and commissions. In the event the underwriters exercise their option to purchase additional shares of Class A common stock, we intend to use any such additional proceeds in the same manner. See "Use of Proceeds."

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| Dividend Policy  | We expect to pay quarterly dividends on our Class A common stock in amounts determined from time to time by our board of directors. However, the declaration and payment of any dividends will be at the sole discretion of our board of directors, which may change our dividend policy at any time. Holders of our Class B common stock are not entitled to participate in any dividends declared by our board of directors. Because we are a holding company, our ability to pay  |

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cash dividends on our Class A common stock depends on our receipt of cash distributions from WhiteHawk OpCo and our operating subsidiaries. Our ability to pay dividends may be restricted by the terms of any future credit agreement or any future debt or preferred equity securities. Our ability to pay dividends is also restricted by covenants governing our Senior Notes and Revolving Credit Facility. Our payment of dividends may vary from quarter to quarter, may be significantly reduced or may be eliminated entirely. Future dividend levels will depend on the requirements, regulatory restrictions, any restrictions in financing agreements and other factors deemed relevant by the board. See "Risk Factors—Risks Related to Our Business—We expect to distribute a substantial majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions", "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited…" and "Certain Relationships and Related Party Transactions—Investment Management Agreement—Liquidity Incentive Fee" for additional discussion of factors that could impact our ability or the amount of cash available to pay dividends. Please read "Dividend Policy." <br>

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|:---|:---|
| Directed Share Program  | The underwriters have reserved for sale at the initial public offering price up to 5% of the Class A common stock being offered by this prospectus for sale to our employees, executive officers, directors, business associates and related persons who have expressed an interest in purchasing Class A common stock in this offering. We do not know if these persons will choose to purchase all or any portion of these reserved shares, but any purchases they do make will reduce the number of shares available to the general public. The sales of shares pursuant to the directed share program will be made by Raymond James & Associates, Inc., an underwriter of this offering. Please read "Underwriting." |

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| | |
|:---|:---|
| Internalization  | In connection with this offering, we will consummate the Internalization, pursuant to which WhiteHawk OpCo will acquire all of the outstanding equity interests in ManagementCo from the Management Contributor in exchange for 3,750,000 OpCo Interests and an equal number of shares of Class B common stock (based on an initial public offering price of $26.00 per share of Class A common stock, which is the midpoint of the range) with an aggregate value equal to 75% of the Internalization Price of $130.0 million (based on an assumed initial public offering price of $26.00 per share of Class A common stock, which is the midpoint of the range set forth on the cover) (subject to an adjustment depending on the final public offering price). In addition, the Earnout Amount is subject to our achievement of certain Adjusted EBITDA targets during each of the three Earnout Years (as defined herein). The Earnout Amount, if earned, is payable solely in the form of up to an additional 1,250,000 OpCo Interests and an equal number of shares of Class B common  |

---

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##### [**Table of Contents**](#toc)
stock (based on an assumed initial public offering price of $26.00 per share of Class A common stock, which is the midpoint of the range set forth on the cover). The Continuing Equity Owners will also be entitled to receive DERs in respect of the Earnout Amount equal to the dividends and distributions that would have been paid on the OpCo Interests issuable in respect of the Earnout Amount had such OpCo Interests been outstanding from the closing of the Internalization. Any such DER payments not already paid that are attributable to any portion of the Earnout Amount that is ultimately not earned will be forfeited. As a result of the Internalization, ManagementCo will become a wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed. See "Certain Relationships and Related Party Transactions—Internalization" for a more detailed description of the Contribution Agreement and the Internalization. <br>

---

| | |
|:---|:---|
| Liquidity Incentive Fee  | In connection with this offering, approximately $13.6 million (estimated based on an assumed public offering price of $26.00 per share, which is the midpoint of the range set forth on the cover) will become payable as a Liquidity Incentive Fee to the Management Contributor under the Management Agreement. The Liquidity Incentive Fee is expected to be paid by the end of the second quarter of 2026. See "Certain Relationships and Related Party Transactions—Investment Management Agreement—Liquidity Incentive Fee." |

---

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| | |
|:---|:---|
| Registration Rights Agreement  | Pursuant to the Registration Rights Agreement, we will, subject to the terms and conditions thereof, agree to register the resale of the shares of our Class A common stock that are issuable to certain Subsequent Continuing Equity Owners in connection with the Transactions. See "Certain Relationships and Related Party Transactions—Registration Rights Agreement" for a discussion of the Registration Rights Agreement. |

---

Risk Factors Investing in our Class A common stock involves risks. See the "Risk Factors" section of this prospectus beginning on page 37 for a discussion of factors you should carefully consider before investing in our Class A common stock.

Listing We have applied to have our Class A common stock listed on the NYSE under the symbol "WHK."

The number of shares of our Class A common stock that will be outstanding upon the completion of the offering excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1,038,750 shares of Class A common stock issuable upon exercise of the underwriters' option to
purchase additional shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 84,704 shares of Class A common stock issuable upon the vesting and settlement of restricted stock
units outstanding as of May 26, 2026; and

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2,597,158 additional shares of Class A common stock (representing 10% of the aggregate number of shares
of Class A common stock and Class B common stock that we expect to be outstanding following this offering) reserved for future issuance under our Amended and Restated WhiteHawk Income Corporation 2026 Equity Incentive Plan (the
"A&R 2026 Plan") that will become effective on the date our registration statement of which this prospectus forms a part becomes effective (which number includes 28,836 shares of Class A common stock subject to restricted
stock unit awards which will be granted to our non-employee directors pursuant to the A&R 2026 Equity Incentive Plan in connection with the consummation of this offering based on an assumed initial public offering price of $26.00 per share
(the midpoint of the price range set forth on the cover of this prospectus)), as well as any shares that become issuable pursuant to provisions in the A&R 2026 Plan that automatically increase the share reserve under the A&R 2026 Plan as set
forth in "Executive and Director Compensation—Anticipated Changes to our Compensation Program Following This Offering —A&R 2026 Equity Incentive Plan."

Except as otherwise indicated, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amendment and restatement of the OpCo Agreement that converts all existing ownership interests in WhiteHawk
OpCo into OpCo Interests, as well as the filing of our amended and restated certificate of incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the completion of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of the underwriters' option to purchase up to 1,038,750 additional shares of Class A
common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no issuance of OpCo Interests or shares of Class B common stock pursuant to the Earnout Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an initial public offering price of $26.00 per share (the midpoint of the price range set forth on the cover of
this prospectus);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that no shares are purchased under the directed share program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our amended and restated certificate of incorporation and our amended and restated bylaws, which will become
effective prior to or upon the closing of this offering.

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##### [**Table of Contents**](#toc)
**SUMMARY HISTORICAL AND PRO FORMA CONDENSED CONSOLIDATED FINANCIAL** 

**AND OTHER DATA** 

The following tables present (i) summary historical consolidated financial and other data of the Company and its consolidated subsidiaries and (ii) summary unaudited pro forma condensed consolidated combined financial data for the Company and its subsidiaries.

We derived the summary consolidated balance sheet data as of March 31, 2026 and 2025 and the summary consolidated statements of operations data for the three months ended March 31, 2026 and 2025 from our unaudited interim consolidated financial statements and related notes thereto included elsewhere in this prospectus. We derived the summary consolidated balance sheet data as of December 31, 2025 and 2024 and the summary consolidated statements of operations data for the years ended December 31, 2025 and 2024 from our audited consolidated financial statements and related notes thereto included elsewhere in this prospectus (in the case of financial data as of and for the year ended December 31, 2025 as restated in the Restatement). You should read this data together with our consolidated financial statements and related notes included elsewhere in this prospectus and the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations." Our historical results for any prior period are not necessarily indicative of the results of future operations and should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the audited consolidated financial statements and notes thereto included elsewhere in this prospectus.

We derived the summary unaudited pro forma condensed consolidated combined balance sheet as of March 31, 2026 and the summary unaudited pro forma condensed consolidated combined statements of operations for the three months ended March 31, 2026 and the year ended December 31, 2025 from the unaudited pro forma consolidated financial data included elsewhere in this prospectus. The unaudited pro forma consolidated financial information gives pro forma effect to the transactions described under "Unaudited Pro Forma Condensed Consolidated Combined Financial Information." The unaudited pro forma condensed consolidated financial data includes various estimates that are subject to material change and may not be indicative of what our operations or financial position would have been had this offering and related transactions taken place on the dates indicated, or that may be expected to occur in the future. See "Unaudited Pro Forma Condensed Consolidated Combined Financial Information" for a complete description of the adjustments and assumptions underlying the summary unaudited pro forma condensed consolidated financial data.

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##### [**Table of Contents**](#toc)
**Condensed Consolidated Statements of Operations:** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Historical** | **Pro Forma<sup>(1)</sup>** | **Pro Forma<sup>(1)</sup>** |
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Three Months<br>Ended** | **Year Ended** |
|  | **2026** | **2025** | **2025** | **2024** | **March 31,<br>2026** | **December 31,<br>2025** |
|  | | | **(As Restated)** | | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  **Revenues:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $25616 | $8039 | $50075 | $12702 | $25616 | $71839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | (5309) | (8874) | 16648 | (4418) | (5309) | 16052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 517 | 2 | 872 | 1166 | 517 | 1343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $20824 | (833) | 67595 | 9450 | 20824 | 89234 |
|  **Operating expenses:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3109 | 891 | 16585 | 2792 | 3109 | 27439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 2981 | 1423 | 9966 | 4681 | 2981 | 9966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 9665 | 3199 | 24237 | 10827 | 9665 | 36451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock based compensation | 483 |  |  |  | 483 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | $16238 | 5513 | 50788 | 18300 | 16238 | 73856 |
|  **Operating income (loss)** | $4586 | (6346) | 16807 | (8850) | 4586 | 15378 |
|  **Other expense:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt |  |  | 3839 | 359 | 21017 | 24879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of assets |  |  | 123 |  |  | (6306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 5997 | 1747 | 19070 | 3939 | 5997 | 19729 |
|  **Income (loss) before income taxes** | $(1411) | (8093) | (6225) | (13148) | (22428) | (22924) |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (348) |  | (2640) | (1587) | (4381) | (4149) |
|  **Net income (loss)**  | $(1063) | $(8093) | $(3585) | $(11561) | $(18047) | $(18775) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net (income) loss attributable to non-controlling interests |  |  |  |  | 3279 | 3396 |
| &nbsp;&nbsp;&nbsp;&nbsp; Earnings allocated to participating securities | (1186) | (1086) | (7341) | (5266) | (1186) | (7341) |
|  **Net income (loss) attributable to common stockholders** | $(2249) | $(9179) | $(10926) | $(16827) | $(15954) | $(22720) |

---

(1) See unaudited pro forma condensed consolidated combined statements of operations for the three months ended
March 31, 2026 and the year ended December 31, 2025 in "Unaudited Pro Forma Condensed Consolidated Combined Financial Information" for more information.

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##### [**Table of Contents**](#toc)
**Condensed Consolidated Balance Sheet Data:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Pro Forma<sup>(1)</sup>** |
|  | **As of March 31,** | **As of December 31,** | **As of December 31,** | **As of March 31,** |
|  | **2026** | **2025** | **2024** | **2026** |
|  | | **(As Restated)** | | |
|  | | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Cash and cash equivalents | $64562 | $28989 | $5330 | $5353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $544862 | $507138 | $165920 | $585038 |
|  Total liabilities | $261212 | $270722 | $74128 | $115027 |
|  Total mezzanine equity | $74673 | $27662 | $21225 | $30643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | $208977 | $208754 | $70567 | $439368 |

---

(1) See unaudited pro forma condensed consolidated combined balance sheet as of March 31, 2026 in
"Unaudited Pro Forma Condensed Consolidated Combined Financial Information" for more information.

**Non-GAAP Financial Measures** 

Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) are supplemental non-GAAP financial measures used by our management and by external users of our financial statements such as investors, research analysts and others that our management believes are useful to assess the financial performance of our assets and their ability to sustain dividends and/or share repurchases over the long term without regard to financing methods, capital structure or historical cost basis.

We define Adjusted EBITDA as net income (loss) before interest expense, income taxes, and depreciation, depletion and amortization adjusted for unrealized gains and losses on commodity derivative instruments, non-cash equity-based compensation, if any, accretion of asset retirement obligations, impairment of oil and natural gas properties, if any, gains and losses on sales of assets, if any, loss on extinguishment of debt, transaction costs and other non-cash or non-recurring operating expenses, if any. We reconcile Adjusted EBITDA to net income (loss), its most directly comparable GAAP measure.

We define Cash Available for Distribution as net cash provided by operating activities excluding amortization of debt issuance costs, interest expense, net, transaction costs, deferred taxes, provision for income taxes, management fees, and changes in operating assets and liabilities, plus or minus amounts for certain non-cash operating activities, cash interest expense, cash taxes and cash preferred dividends. We reconcile Cash Available for Distribution to net cash provided by operating activities, its most directly comparable GAAP measure.

We define Pro Forma Adjusted EBITDA as Adjusted EBITDA as adjusted in accordance with the adjustments made to the corresponding period in our unaudited pro forma financial statements included elsewhere in this prospectus. We define Pro Forma Cash Available for Distribution as Cash Available for Distribution as adjusted in accordance with the adjustments made to the corresponding period in our unaudited pro forma financial statements included elsewhere in this prospectus. Please see "Unaudited Pro Forma Condensed Consolidated Combined Financial Information."

Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) do not represent and should not be considered alternatives to, or more meaningful than, their most directly comparable GAAP financial measures or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Our non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. Our computations of Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) may differ from computations of similarly titled measures of other companies.

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##### [**Table of Contents**](#toc)
The following table presents a reconciliation of Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) to the most directly comparable GAAP financial measures for the periods indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Historical** | **Pro Forma<sup>(1)</sup>** | **Pro Forma<sup>(1)</sup>** |
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Three Months<br>Ended** | **Year Ended** |
|  | **2026** | **2025** | **2025** | **2024** | **March 31,<br>2026** | **December 31,<br>2025** |
|  | | | **(As Restated)** | | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Net income (loss)  | $(1063) | $(8093) | $(3585) | $(11561) | $(18047) | $(18775) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 5997 | 1747 | 19070 | 3939 | 5997 | 19729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 9665 | 3199 | 24237 | 10827 | 9665 | 36451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | (348) |  | (2640) | (1587) | (4381) | (4149) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss (gain) on commodity derivative instruments | (395) | 8413 | (8121) | 13134 | (395) | (8121) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees |  |  |  |  | 2981 | 9966<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt |  |  | 3839 | 359 | 21017 | 24879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 483 |  | 179 |  | 483 | 861<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs |  |  | 7396 | 300 |  | 11596<sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on the sale of assets |  |  | 123 |  |  | (6306) |
|  Adjusted EBITDA | $14339 | $5266 | $40498 | $15411 | $17320 | $66131 |

---

<sup>(1)</sup> See our Unaudited Pro Forma Condensed Consolidated Combined Financial Information included elsewhere in this prospectus for more information about our pro forma financial measures.

<sup>(2)</sup> Reflects inclusion of $6.2 million of Base Management Fees and $3.7 million of Dividend Incentive Fees. After the completion of the Transactions, the Company will no longer incur the Base Management Fees or the Dividend Incentive Fees. 

<sup>(3)</sup> Reflects inclusion of $0.7 million of stock-based compensation expense from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

<sup>(4)</sup> Reflects inclusion of $4.2 million of non-recurring transaction expenses from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

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The following table presents a reconciliation of Cash Available for Distribution to the most directly comparable GAAP financial measure for the period indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Historical** | **Pro Forma<sup>(1)</sup>** | **Pro Forma<sup>(1)</sup>** |
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Three Months<br>Ended** | **Year<br>Ended** |
|  | **2026** | **2025** | **2025** | **2024** | **March 31,<br>2026** | **December 31,<br>2025** |
|  | | | **(As Restated)** | | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Net cash provided by operating activities | $2841 | $(230) | $13577 | $9447 | $2841 | 23088<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | (197) | (149) | (744) | (316) | (197) | (744) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 5997 | 1747 | 19070 | 3939 | 5997 | 19729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs |  |  | 7396 | 300 |  | 11596<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes | 72 |  | 3508 | 1587 | 72 | 3508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | (348) |  | (2640) | (1587) | (348) | (1343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees |  |  |  |  | 2981 | 9966<sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities | 5974 | 3898 | 331 | 2041 | 5974 | 331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash interest expense | (5964) | (1651) | (19117) | (3780) | (5964) | (19978)<sup>(5)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash income taxes | (42) |  | (745) | (877) | (42) | (1034)<sup>(6)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred dividends | (924) | (1044) | (7076) | (5114) | (924) | (7076) |
|  Cash Available for Distribution | $7409 | $2571 | $13560 | $5640 | $10390 | 38043 |

---

<sup>(1)</sup> See our Unaudited Pro Forma Condensed Consolidated Combined Financial Information included elsewhere in this prospectus for more information about our pro forma financial measures.

<sup>(2)</sup> Reflects inclusion of pro forma income statements changes related to the TRR Acquisition and PHX Acquisition.

<sup>(3)</sup> Reflects inclusion of $4.2 million of non-recurring transaction expenses from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

<sup>(4)</sup> Reflects inclusion of $6.2 million of Base Management Fees and $3.7 million of Dividend Incentive Fees. After the completion of the Transactions, the Company will no longer incur the Base Management Fees or the Dividend Incentive Fees. 

<sup>(5)</sup> Reflects inclusion of $0.8 million of cash interest expense from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

<sup>(6)</sup> Reflects inclusion of $0.3 million of cash income taxes from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

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**SUMMARY RESERVE DATA** 

The following table sets forth (i) estimates of our net proved natural gas, NGL and oil reserves as of December 31, 2025 based on the reserve report prepared by CG&A, (ii) estimates of our net proved natural gas, NGL and oil reserves as of December 31, 2024 based on the reserve report prepared by Schaper Energy, (iii) estimates of the PHX net proved natural gas, NGL and oil reserves as of December 31, 2024 based on the reserve report prepared by CG&A and (iv) estimates of the TRR Seller's ****net proved natural gas and oil reserves as of December 31, 2024 based on the reserve report prepared by Ryder Scott. The reserve reports were prepared in accordance with the rules and regulations of the SEC. You should refer to "Risk Factors," "Business—Our Natural Gas, NGL and Oil Data," "Business—Our Natural Gas, NGL and Oil Production Prices and Costs," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical consolidated financial statements and related notes thereto included elsewhere in this prospectus in evaluating the material presented below. The following table provides (a) our estimated proved reserves as of December 31, 2025 and (b) our, PHX's and the TRR Seller's ****estimated proved reserves, as of December 31, 2024, as applicable, using the provisions of the SEC rules regarding reserve estimation regarding a historical twelve-month pricing average applied prospectively. WhiteHawk's estimates as of December 31, 2024 do not give effect to the PHX Acquisition and the Three Rivers Royalty Acquisition.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **WhiteHawk<sup>(1)</sup>** | **PHX<sup>(2)</sup>** | **TRR Seller<sup>(3)</sup>** | **Combined<br>WhiteHawk,<br>PHX and TRR<br>Seller<sup>(4)</sup>** | **WhiteHawk<sup>(5)</sup>** |
|  | **December 31, 2024**<br>**(dollars in thousands)** | **December 31, 2024**<br>**(dollars in thousands)** | **December 31, 2024**<br>**(dollars in thousands)** | **December 31, 2024**<br>**(dollars in thousands)** | **December 31,<br>2025** |
|  **Estimated proved developed producing reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 64783 | 41648 | 47103 | 153534 | 154137 |
|  NGLs (MBbls) | 690 | 1320 | 653 | 2663 | 2914 |
|  Oil (MBbls) | 23 | 943 | 14 | 980 | 1154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (MMcfe)<sup>(6)</sup> | 69061 | 55227 | 51105 | 175393 | 178544 |
|  **Estimated proved developed non-producing reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 469 | 901 | 2424 | 3794 | 19094 |
|  NGLs (MBbls) | 11 | 2 | 61 | 74 | 459 |
|  Oil (MBbls) | 0 | 5 | 4 | 9 | 203 |
|  Total (MMcfe)<sup>(6)</sup> | 535 | 944 | 2814 | 4293 | 23066 |
|  **Estimated proved undeveloped reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 16469 | 6758 | 0 | 23227 | 4149 |
|  NGLs (MBbls) | 176 | 26 | 0 | 202 | 84 |
|  Oil (MBbls) | 16 | 99 | 0 | 115 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (MMcfe)<sup>(6)</sup> | 17619 | 7506 | 0 | 25125 | 4864 |
|  **Estimated proved reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 81721 | 49307 | 49527 | 180555 | 177380 |
|  NGLs (MBbls) | 877 | 1348 | 714 | 2939 | 3457 |
|  Oil (MBbls) | 39 | 1047 | 18 | 1104 | 1392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (MMcfe)<sup>(6)</sup> | 87213 | 63677 | 53919 | 204809 | 206473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Standardized Measure ($) | $61933 | $76255 | $45088 | $183276 | $266326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PV-10 ($)<sup>(7)</sup> | $72153 | $79642 | $45088 | $196883 | $293690 |

---

(1) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was

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adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.788 per Mcf of gas, $26.32 per barrel of NGLs and $65.26 per barrel of oil as of December 31, 2024.

(2) PHX's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry
Hub spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West
Texas Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $2.051 per Mcf of gas, $20.968 per
barrel of NGLs and $73.477 per barrel of oil as of December 31, 2024.

(3) The TRR Seller's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.44 per Mcf of gas, $23.67 per
barrel of NGLs and $71.51 per barrel of oil as of December 31, 2024.

(4) Combined reserve data generally represents the arithmetic sum of the proved reserves attributable to the
Company, PHX and the TRR Seller. The proved reserves of PHX and the TRR Seller are based on their respective reserve engineers' reserve estimation methodologies. Because we will estimate proved reserves in accordance with our own
methodologies, the estimates presented herein for PHX and the TRR Seller may not be representative of our future reserve estimates with respect to these properties or the reserve estimates we would have reported if we had owned such properties as of
December 31, 2024.

(5) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry
Hub spot price calculated in accordance with SEC guidance of $3.387 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West
Texas Intermediate price calculated in accordance with SEC guidance of $65.34 per barrel as of December 31, 2025 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All
economic factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $3.03 per Mcf of
gas, $22.03 per barrel of NGLs and $62.99 per barrel of oil as of December 31, 2025.

(6) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

(7) PV-10 is a non-GAAP financial
measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of
discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before
deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows
attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may
utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of
discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves. See
"Business—Natural Gas, NGL and Oil Data—Proved Reserves—Reconciliation of Standardized Measure to PV-10."

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**RISK FACTORS** 

*Investing in our Class A common stock involves a high degree of risk. You should carefully consider each of the following risk factors, as well as other information contained in this prospectus, including the matters addressed under "Cautionary Note Regarding Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated financial statements and related notes, before investing in our Class A common stock. The occurrence of any of the following risks could have a material adverse effect on our business, financial condition and results of operations, in which case the trading price of our Class A common stock could decline and you could lose all or part of your investment. Some statements in this prospectus, including statements in the following risk factors, constitute forward-looking statements. See the section of this prospectus captioned "Cautionary Note Regarding Forward-Looking Statements."* 

**Risks Related to Our Business** 

***Our revenues are primarily derived from mineral and royalty payments that are based on the price at which natural gas, NGLs and oil produced by our third-party operators from the acreage underlying our interests are sold. The volatility of these prices due to factors beyond our control could have a material adverse effect on our business, financial condition and results of operations.***

The supply of and demand for natural gas, NGLs and oil impact the revenues we realize and, in turn, could materially affect our financial results. Our revenues, operating results, Cash Available for Distribution and the carrying value of our natural gas, NGL and oil properties depend significantly upon the prevailing prices for natural gas, NGLs and oil. Natural gas, NGL and oil prices have historically been, and will likely continue to be, volatile. The prices for natural gas, NGLs and oil are subject to wide fluctuation in response to a number of factors beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• global economic conditions and market uncertainty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the supply of and demand for natural gas, NGLs and oil, both domestically and abroad;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of global natural gas and oil exploration and production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commodity futures trading and the level of prices and expectations about future prices of natural gas and
oil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regional price differentials and differing quality and NGL content of natural gas produced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the price and quantity of imports and the level of U.S. exports of natural gas, NGLs and oil, including the
export of natural gas as LNG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability and development of liquefaction facilities to support LNG export demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions taken by the Organization of Petroleum Exporting Countries Plus ("OPEC+") or other major
natural gas, NGL and oil producing or consuming countries and the ability of members of OPEC+ to agree to and maintain oil price and production controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technological advancements affecting energy consumption and energy supply, including the development of AI data
centers and related demand for natural gas power generation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of ongoing conflict and changing sanctions regimes in oil or natural gas producing regions, such as
Iran, Russia and Venezuela;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions to global oil supply and transportation through critical maritime chokepoints, including the Strait
of Hormuz, through which a substantial portion of the world's oil supply transits, due to military conflict, naval blockades, mine deployment, or other hostile actions by state or non-state actors, which could cause significant and rapid
fluctuations in global oil prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with operating drilling rights;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of exploring for, developing, producing and delivering natural gas and oil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the proximity, cost, availability and capacity of natural gas, NGLs and oil pipelines and other transportation
and processing facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculative trading in natural gas and crude oil derivative contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conservation and environmental protection efforts and the price and availability of, and competition from,
alternative fuels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• events outside of our control such as weather conditions and other natural disasters, the impacts and effects of
public health crises, pandemics and epidemics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in U.S. energy policy and other domestic and foreign governmental regulations, taxes, duties and tariffs;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the continued threat of terrorism, social unrest, and political instability or armed conflict in major natural
gas and oil producing regions outside the United States and the impact of military and other actions, including, but not limited to, U.S. military operations in the Middle East and Venezuela.

These factors and the volatility of the energy markets make it extremely difficult to predict future natural gas, oil and NGL price movements with any certainty. Natural gas and oil prices continued to fluctuate in fiscal year 2025, with the benchmark Henry Hub natural gas spot price increasing approximately 58% in 2025 compared to 2024, while the WTI crude oil benchmark declined approximately 15% over the same period. If the prices of natural gas, NGLs and oil decline, our operations, financial condition and level of expenditures for the development of our natural gas, NGL and oil reserves may be materially and adversely affected, and can include other material negative effects including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significantly decrease the number of wells operators drill on our acreage, or the development of pipelines to
transport production, thereby reducing our production and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cash flows would be reduced, decreasing cash available for distribution and/or acquisitions to replace reserves
and maintain or increase production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain reserves may no longer be economic for our operators to produce, leading to lower proved reserves,
production and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future undiscounted and discounted net cash flows from producing properties would decrease, possibly resulting in
recognition of impairment expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• access to sources of capital, such as equity and debt markets, could be severely limited or unavailable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• could limit our ability to make scheduled payments on our First Lien Senior Secured Notes (our "Senior
Notes") and our Revolving Credit Facility (our "Revolving Credit Facility").

***Lower natural gas, NGL and oil prices or negative adjustments to natural gas, NGL and oil reserves may result in significant impairment charges.***

The Company follows the successful efforts method of accounting for our natural mineral operations. Under this method, costs to acquire mineral and royalty interests in natural gas mineral properties are capitalized when incurred. We review and evaluate our mineral and royalty interests in natural gas mineral properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Proved natural gas properties are reviewed for impairment when events and circumstances indicate a potential decline in the fair value of such properties below the carrying value, such as a downward revision of the reserve estimates or lower commodity prices. The factors used to determine fair value include, but are not limited to, estimates of proved reserves, future commodity prices, the timing of future production and a discount rate commensurate with the risk reflective of the lives remaining for the respective natural gas properties. Because of

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the uncertainty inherent in these factors, we cannot predict when or if future impairment charges will be recorded. If an impairment charge is recognized, cash flows from operating activities is not impacted, but net income and, consequently, stockholders' equity are reduced. In periods when impairment charges are incurred, it could have a material adverse effect on our results of operations.

Historically, natural gas, NGLs and oil prices have been volatile and may continue to be volatile in the future. During the past five years, the Henry Hub spot market price for natural gas has ranged from a low of $1.21 per MMBtu in November 2024 to a high of $23.86 per MMBtu in February 2021. The posted price for WTI has ranged from a low of negative $36.98 per barrel in April 2020 to a high of $123.64 per barrel in March 2022. As of December 31, 2025, the posted price for WTI was $57.26 per barrel and the Henry Hub spot market price of natural gas was $4.00 per MMBtu. As of March 31, 2026, the posted price for WTI was $91.38 per barrel and the Henry Hub spot market price of natural gas was $3.04 per MMBtu. Lower prices not only decrease our revenues, but also potentially impact the amount of natural gas, NGLs and oil that our operators can produce economically. This, in turn, can impact the capital budgets for our operators and their development pace of our properties. We expect commodity price volatility will continue in the future. If these pricing trends persist, our revenues and cash flows could be materially reduced, which could adversely affect our ability to pay dividends, service our debt obligations, and pursue our acquisition strategy. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional discussion of the impact of commodity prices on our business.

See "Note 2, Summary of Significant Accounting Policies—Mineral Interests in Natural Gas Properties" to the audited consolidated financial statements included elsewhere in this prospectus for further discussion.

***Our derivative activities may reduce the cash flows received for natural gas and oil sales.***

In order to manage exposure to price volatility on our natural gas and oil production, we currently, and may in the future, enter into natural gas and oil derivative contracts for a portion of our expected production. Natural gas and oil price derivatives may limit the cash flows we actually realize and therefore reduce our ability to fund future projects. None of our natural gas and oil price derivative contracts are designated as hedges for accounting purposes; therefore, all changes in fair value of derivative contracts are reflected in earnings. Accordingly, these fair values may vary significantly from period to period, materially affecting reported earnings. In addition, this type of derivative contract can limit the benefit we would receive from increases in the prices for natural gas and oil. The fair value of our natural gas and oil derivative instruments outstanding as of March 31, 2026 and December 31, 2025 was approximately a net asset of $1.1 million and $0.7 million, respectively.

There is risk associated with derivative contracts that involves the possibility that counterparties may be unable to satisfy contractual obligations to us. If any counterparty to our derivative instruments were to default or seek bankruptcy protection, it could subject a larger percentage of our future natural gas and oil production to commodity price changes, could adversely affect our cash flows and could have a negative effect on our ability to fund future acquisitions. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosures about Market Risk."

***The development of our properties in which we own mineral and royalty interests relies exclusively on our various third-party operators. Our third-party operators' failure to develop our existing inventory of mineral and royalty acreage could have a material adverse effect on our business, financial condition and results of operations.***

We depend exclusively on various unaffiliated third-party operators for all of the exploration, development and production of our mineral and royalty interests and a substantial amount of our revenue is derived from royalty payments made by these third-party operators. We are unable to determine with certainty which third-party operators will ultimately operate our properties and there is no guarantee that any particular third-party operator will become or remain the operator on the properties associated with our mineral and royalty interests, and such

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third-party operators may identify, and subsequently focus their efforts and development on, prospects in which we do not maintain mineral or royalty interests. A reduction in the expected number of wells to be drilled on our acreage by these operators or the failure of our third-party operators to adequately and efficiently develop and operate the wells on our acreage could have a material adverse effect on our business, financial conditions and results of operations. The success and timing of drilling and development activities and whether the operators elect to drill any additional wells on our acreage depends on a number of factors that are largely outside of our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the capital costs required for drilling activities by our third-party operators, which could be significantly
more than anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our third-party operators to access capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prevailing commodity prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of suitable drilling equipment, production and transportation infrastructure and qualified
operating personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of storage for hydrocarbons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operators' expertise, operating efficiency and financial resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approval of other participants in drilling wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operators' expected return on investment in wells drilled on our acreage as compared to opportunities
in other areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the selection of technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the selection of counterparties for the marketing and sale of production; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rate of production of the reserves.

Our proved undeveloped reserves may not be developed or produced as a result of any number of these factors. Recovery of proved undeveloped reserves requires significant capital expenditures and successful drilling operations, and the decision to pursue development of a proved undeveloped drilling location will be made by our third-party operators and not by us. Our third-party operators may elect not to undertake development activities or may undertake to develop these activities in a delayed or an unanticipated fashion, which may result in significant fluctuations in the revenues generated by our mineral and royalty interests. Third-party operators will make decisions in connection with their operations, which may not be in our best interests and our third-party operators may also reduce capital expenditures devoted to exploration, development and production on our properties in the future, which could negatively impact the revenues we receive. We have limited ability to exercise influence over the operational decisions of our third-party operators, including the setting of capital expenditure budgets and drilling locations and schedules.

***Drilling for and producing natural gas, NGLs and oil are high-risk activities with many uncertainties that may materially adversely affect our business, financial condition and results of operations.***

Drilling for natural gas and oil invariably involves unprofitable efforts, not only from dry wells, but also from wells that are productive but do not produce sufficient reserves to return a profit after deducting drilling, completion, operating and other costs. In addition, wells that are profitable may not achieve a targeted rate of return. We rely on third-party operators for substantially all of the exploration, development, and production activities on our acreage. Nevertheless, prior to drilling a well, the exploration and development activities used do not allow operators to know conclusively whether natural gas, NGLs and oil are present in commercial quantities.

Cost factors can adversely affect the economics of any project, and the eventual cost of drilling, completing and operating a well is controlled by well operators and existing market conditions. Further, drilling operations may be curtailed, delayed or canceled as a result of numerous factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected drilling conditions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• title problems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pressure or irregularities in formations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equipment failures or accidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fires, explosions, blowouts and surface cratering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of availability to market production via pipelines or other transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse weather conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental, health or safety hazards or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of water disposal facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental and other governmental regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cost and availability of drilling rigs, equipment, materials and services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expected sales price to be received for natural gas, NGLs and oil produced from the wells.

***Acreage must be drilled before lease expiration, generally within three to five years, in order to hold the acreage by production. Our third-party operators' failure to drill sufficient wells to hold acreage may result in loss of the lease and prospective drilling opportunities.***

Leases on natural gas and oil properties typically have a term of three to five years, after which they expire unless, prior to expiration, production is established within the spacing units covering the undeveloped acres. Any reduction in our third-party operators' drilling programs, either through a reduction in capital expenditures or the unavailability of drilling rigs, could result in the loss of acreage through lease expirations which may terminate our overriding royalty interests derived from such leases. Since our royalties are derived from mineral interests, if production or drilling ceases on the leased property, the lease is typically terminated, subject to certain exceptions, and all mineral rights revert back to us, and we will have to seek new lessees to explore and develop our acreage. There can be no assurance that we will be able to re-lease such properties following termination on favorable terms, or at all. Any such losses of our third-party operators or lessees could materially and adversely affect the growth of our business, financial condition and results of operations.

***We may experience delays in the receipt of royalty payments and be unable to replace our third-party operators that do not make required royalty payments, and we may not be able to terminate our leases with defaulting lessees if any of such operators on those leases declare bankruptcy.***

We may experience delays in receiving royalty payments from our third-party operators, including as a result of delayed division orders received from our third-party operators. Additionally, most of our operators are also dependent on the availability of external debt and equity financing sources to maintain their drilling programs. If those financing sources are not available to the operators on favorable terms or at all, or if an operator were to otherwise experience financial difficulty, the operator might not be able to make its royalty payments or continue its operations, which could have a material adverse impact on our business. A failure on the part of our third-party operators to make royalty payments typically gives us the right to terminate the lease, repossess the property and enforce payment obligations under the lease. If we repossessed any of our properties, we would seek a replacement operator. However, we might not be able to find a replacement operator and, if we did, we might not be able to enter into a new lease on favorable terms within a reasonable period of time. In addition, the outgoing operator could be subject to a proceeding under Title 11 of the United States Code (the "Bankruptcy Code"), in which case our right to enforce or terminate the lease for any defaults, including non-payment, may be substantially delayed or otherwise impaired. In general, in a proceeding under the Bankruptcy Code, the bankrupt operator would have a substantial period of time to decide whether to ultimately reject or assume the lease, which could prevent the execution of a new lease or the assignment of the existing lease to another operator. If the operator rejected the lease, our ability to collect amounts owed would be substantially delayed, and our ultimate recovery may be only a fraction of the amount owed or nothing. In addition, if we are able to enter into a new lease with a new operator, the replacement operator may not achieve the same levels of production or sell natural gas or oil at the same price as the operator we replaced.

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***We may incur losses as a result of title defects or other issues in the properties we own which could have a material adverse effect on our business, financial condition and results of operations.***

We depend in part on acquisitions to grow our reserves, production and cash generated from operations. In connection with these acquisitions, record title to mineral and royalty interests are conveyed to us or our subsidiaries by asset assignment, and we or our subsidiaries become the record owner of these interests. Upon such a change in ownership of mineral and royalty interests, and at regular intervals pursuant to routine audit procedures at each of our third-party operator's discretion, such third-party operator of the underlying property has the right to investigate and verify the title and ownership of mineral and royalty interests with respect to the properties it operates. Consistent with industry practice, we do not have current abstracts or title opinions on all of our mineral acreage and, therefore, cannot be certain that we have unencumbered title to all of these properties. The third-party operators of our properties could suspend our right to receive royalty payments due to title or other issues and we are not required to, and under certain circumstances we may elect not to, incur the expense of retaining lawyers to examine the title to our mineral and royalty interests. If any title or ownership issues are not resolved to the third-party operator's reasonable satisfaction in accordance with customary industry standards, the third-party operator may suspend payment of the related royalty. Our failure to cure any title defects that may exist may adversely impact our ability in the future to increase production and reserves. There is no assurance that we will not suffer a monetary loss from title defects or title failure. At any time that a third-party operator puts our assets in pay suspense, we would not receive the applicable mineral or royalty payment owed to us from sales of the underlying natural gas, NGLs and oil related to such mineral interest. Additionally, undeveloped acreage has greater risk of title defects than developed acreage. Leases in the Appalachian Basin, and particularly leases involving gas and oil properties, are particularly vulnerable to title deficiencies due to the nature of the history of land ownership in the area, resulting in extensive and complex chains of title. The existence of a material title deficiency can render an interest worthless and can materially adversely affect our business, financial condition and results of operations. If there are any title defects or defects in assignment of leasehold rights in properties in which we hold an interest, we may suffer a financial loss and it could have a material adverse effect on our business, financial condition and results of operations.

***A limited number of operators currently generate a significant portion of our revenue and accounts receivable.***

A large portion of our current mineral and royalty interests and lease holdings are serviced by a limited number of third-party operators and, as a result, we generate a significant portion of our revenue and accounts receivable from a limited number of third-party operators. In the year ended December 31, 2025, we received revenue from 365 third-party operators, with approximately 54% of our consolidated revenue coming from the top three third-party operators. For the three months ended March 31, 2026, we received revenue from 269 third-party operators, with approximately 56% of our consolidated revenue coming from the top three third-party operators. Our revenue is generally derived from our diverse holdings of mineral and royalty interests and lease holdings and these mineral and royalty interests generate revenue from the sale of natural gas and crude oil, which is paid monthly to us by various third-party operators once any extracted natural gas and crude oil is delivered by such operators to purchasers.

While our revenue and accounts receivable relating to our mineral rights and lease holdings are derived from a significant number of different units that are subject to different leases and pooling orders from various state oil and gas commissions, the incapacity or loss of one of the operators that generate a significant portion of our revenue and accounts receivable could negatively impact our revenue and accounts receivable and could result in a reduction or delay in revenue generated from the related mineral rights and lease holdings while a replacement operator is selected and designated. Further, we do not always determine or control the rights, payments, discounts or other terms related to leases or the extraction and sale of assets from our mineral rights and lease holdings.

***Various factors could adversely impact our third-party operators' ability to control costs, including their operating expenses and capital costs.***

Our third-party operators are dependent on various supplies and equipment, as well as qualified personnel, to carry out their extraction operations. An increase in natural gas and oil prices may cause the costs of such

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materials and services to rise. Furthermore, any shortage, unavailability, or increase in the cost of such supplies, personnel, equipment, and parts could have a material adverse effect on their ability to carry out operations. We cannot predict any future trends in the rate of inflation or interest rates and a significant increase in inflation or interest rates, to the extent we or our third-party operators are unable to recover higher costs through higher commodity prices and revenues or otherwise mitigate the impact of such costs on our or their business, could have a material adverse effect on our business, financial condition and results of operations.

***The substantial majority of our business is concentrated in the Appalachian and Haynesville Basins, making us vulnerable to risks associated with concentration of our assets in limited geographic areas.***

The substantial majority of our business is concentrated in the Appalachian and Haynesville Basins. As a result, we may be disproportionately exposed to various factors, including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of regional supply and demand factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays or interruptions of production from wells in such areas caused by governmental regulation, including
changes to field wide rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• gathering, processing or transportation capacity constraints;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability of equipment, facilities, personnel or services market limitations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse weather conditions and natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• plant closures for scheduled maintenance, resulting in reduced demand for natural gas; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interruption of the processing or transportation of natural gas, NGLs and/or oil.

This concentration in limited geographic areas also increases our exposure to changes in local laws and regulations, certain lease stipulations designed to protect wildlife, and unexpected events that may occur in the region, such as natural disasters, seismic events, industrial accidents or labor difficulties. Any one of these factors has the potential to cause producing wells to be shut-in, delay operations, decrease cash flows, increase operating and capital costs, and prevent development of leases before expirations. Any of the risks described above could have a material adverse effect on our business, financial condition and results of operations.

In addition, the effect of fluctuations on supply and demand may become more pronounced within specific geographic areas, which may cause these conditions to occur with greater frequency to our properties or magnify the effects of these conditions. Due to the concentrated nature of our properties, a number of our properties could experience any of the same conditions at the same time, resulting in a relatively greater impact on our results of operations than they might have on other companies that have a more diversified portfolio of properties. In addition, we have limited to no control over the marketability of our hydrocarbon sales and rely on third-party operators to market our hydrocarbons which limits our ability to optimize the pricing we receive, especially in instances of regional bottlenecks. As a result of our focus on the Appalachian and Haynesville Basins, we may be less competitive than other companies in bidding to acquire assets that include properties both within and outside of those areas.

***We may be subject to risks related to our wells where we are a non-operating working interest owner which could have a material adverse effect on our business, financial condition and results of operations.***

Like our mineral and royalty interests, we are dependent upon third-party operators to develop the properties in which we own non-operating working interests. In addition, financial risks are inherent in any operation where we have a non-operating working interest and the cost of drilling, equipping, completing and operating wells is shared by more than one party. We could be responsible for joint activity obligations of a working interest owner, such as nonpayment of expended costs, including costs of regulatory compliance. We may also be liable for damage to the environment caused by our third-party operators. Additionally, if another non-operator fails to pay

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its share of costs because of its insolvency or otherwise, the third-party operator could require us to pay the proportionate share of the defaulting party's share of costs. We are also responsible for our proportionate share of the costs associated with plugging, abandoning and reclaiming wells, pipelines and other facilities that we own (or own in part) for production of natural gas and oil reserves. Abandonment and reclamation of these facilities and the costs associated therewith is often referred to as "asset retirement." We accrue a liability for asset retirement costs associated with these wells, but have not established any cash reserve account for these potential costs in respect of any of our properties. It may be difficult for us to predict such asset retirement costs. If asset retirement is required before economic depletion of our properties or if our estimates of the costs of asset retirement exceed the value of the reserves remaining at any particular time to cover such asset retirement costs, we may have to draw on funds from other sources to satisfy such costs, which may be substantial. The use of other funds to satisfy such asset retirement costs could impair our ability to dedicate our capital to other areas of our business.

***Our future success depends on replacing reserves through acquisitions and the exploration and development activities of our operators.***

Producing natural gas and oil wells, and associated NGLs, are characterized by declining production rates that vary depending upon reservoir characteristics and other factors. Our natural gas, NGLs and oil reserves and our third-party operators' production thereof and our cash flows are highly dependent on the successful development and exploitation of our current reserves and our ability to successfully acquire additional reserves that are economically recoverable. We have little to no control over the exploration and development of our properties and the production decline rates of our properties may be significantly higher than currently estimated if the wells on our properties do not produce as expected. We may also not be able to find or acquire additional reserves to replace the current and future production of our properties at economically acceptable terms and we may not have sufficient resources to acquire such reserves.

There is intense competition for acquisition opportunities in our industry which may increase the cost of, or cause us to refrain from, completing acquisitions. The successful acquisition of producing properties requires an assessment of several factors, including recoverable reserves, future oil and natural gas prices and their applicable differentials, operating costs and potential environmental and other liabilities. The accuracy of these assessments is inherently uncertain and we may not be able to identify attractive acquisition opportunities. If we are not able to adequately replace or grow our natural gas, NGLs and oil reserves, our business, financial condition and results of operations would be adversely affected.

***Constraints in financing mineral and royalty asset acquisitions, and the risks associated with entering new geographic markets, may adversely affect our business, financial condition, and results of operations.***

Our ability to complete acquisitions may be dependent upon, among other things, our ability to obtain debt and equity financing and, in some cases, regulatory approvals. Furthermore, we cannot assure you that we will be able to access the capital markets after this offering or obtain other external capital on terms favorable to us or at all. Additionally, our ability to secure financing or access the capital markets could be adversely affected if financial institutions and institutional lenders elect not to provide funding for fossil fuel energy companies in connection with the adoption of sustainable lending initiatives or are required to adopt policies that have the effect of reducing the funding available to the fossil fuel sector. If we are unable to access capital, we may be unable to complete acquisitions, take advantage of business opportunities or respond to competitive pressures, any of which could have a material adverse effect on business, financial condition and results of operations.

In addition, if we determine to enter into new geographic markets, such entry into new geographic markets may result in the dilution of our resources dedicated to our current geographic focus and we may be subject to additional and unfamiliar legal and regulatory requirements. Compliance with added regulatory requirements may impose substantial additional obligations on us and our management, cause us to expend additional time and resources in compliance activities and increase our exposure to penalties or fines for non-compliance with such

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additional legal requirements. In addition, possible future acquisitions may be larger and for purchase prices significantly higher than those paid for earlier acquisitions.

No assurance can be given that we will be able to identify suitable mineral and royalty interest acquisition opportunities, negotiate acceptable terms, obtain financing for acquisitions on acceptable terms or successfully acquire identified targets.

***We have experienced significant business and portfolio growth in a short time, which may make it difficult for you to evaluate our business and prospects. Our previous growth rates and performance may not be sustainable or indicative of our future growth and financial results, and there can be no assurance that we will be able to achieve the same level of financial performance in the future. If we are unable to manage our business and growth effectively, our business could be materially and adversely affected.***

Our business has grown considerably since our founding in 2022. The significant growth in the size and diversity of our mineral and royalty interests and revenue we have experienced since our founding makes evaluation of our business and prospects difficult. There can be no assurance that our growth will continue at a similar pace, or that we will be able to manage our growth effectively. Furthermore, the growth of our business places significant demands on our key personnel, including managing increased numbers of interests, revenue streams, operator relationships, and title administration responsibilities. If we do not effectively manage the increased obligations brought by the growth of our business, we may not be able to execute on our business plan, respond to competitive pressures or take advantage of market opportunities, which could have a material adverse effect on our business, financial condition and results of operations.

Our historical results, including our historical cash-on-cash returns, may not be sustainable, and we cannot assure you that we will achieve similar cash-on-cash returns or continue to pay cash or stock dividends. The historical returns to our investors should not be considered as indicative of the future results of our operations or any returns expected on an investment in our Class A common stock. In addition, we expect our overall general and administrative expenses to continue to increase in the foreseeable future, as we may be required to hire additional personnel and incur additional expenses as a newly public company. These efforts and additional expenses may be more costly than we currently expect, and there is no assurance that we will be able to maintain sufficient operating revenue to offset our operating expenses. Any failure to increase revenue or to manage our costs would adversely impact our business and could prevent us from maintaining positive operating cash flow at all, or on a consistent basis, which would cause our business, financial condition, and results of operations to suffer.

In addition, we may encounter risks and difficulties experienced by companies whose performance is dependent upon newly acquired mineral and royalty interests, such as failing to integrate, or realizing the expected benefits of, such assets. As a result of the foregoing, we may be less successful in achieving consistent results and sustaining the growth of our business, as compared with companies that have longer histories of operations and more stable portfolios of mineral and royalty assets. In addition, we may be less equipped to identify and address risks and hazards in the conduct of our business than those companies that have longer operating histories.

***Any acquisition of additional mineral and royalty interests that we complete will be subject to substantial risks.***

Any acquisition of mineral and royalty interests involves substantial risks, all of which could have a material adverse effect on our business, financial condition and results of operations. Even if we identify attractive acquisition opportunities, we may not be able to complete such acquisitions or do so on commercially acceptable terms. We also typically bear certain transactional expenses (including professional fees, legal fees and other due diligence-related items) and the costs of investments that are not consummated (*i.e.* broken deal costs). Any acquisitions of additional mineral and royalty interests that we complete will be subject to substantial risks and we may acquire interests in properties that do not produce as projected. Such risks include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the validity of our assumptions about estimated reserves, future production, prices, revenues, operating expenses
and costs;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in our liquidity by using a significant portion of our cash generated from operations or borrowing
capacity to finance acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant increase in our interest expense or financial leverage if we incur debt to finance acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to effectively manage the integration of acquisitions could adversely impact our ability to achieve
the anticipated benefits of our acquisitions and reduce our focus on subsequent acquisitions and current operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any
indemnity we receive is inadequate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mistaken assumptions about the overall cost of equity or debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain satisfactory title to the assets we acquire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an inability to hire, train or retain qualified personnel to manage and operate our growing business and assets;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the occurrence of other significant changes, such as impairment of natural gas and oil properties, goodwill or
other intangible assets, asset devaluation or restructuring charges.

In addition, the due diligence required with respect to a potential natural gas and oil royalty investment may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such an investment opportunity and its potential risks. In connection with these assessments, we perform a review of the subject properties that we believe to be generally consistent with industry practices. The accuracy of these assessments is inherently uncertain and, as a result, we may assume unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate. We may base our decisions on mistaken assumptions about estimated reserves, future production, prices, revenues, the operating expenses and costs our third-party operators would incur to develop the minerals. Our review will not reveal all existing or potential problems including title defects or environmental issues, which, if material, can render an interest worthless, nor will it permit us to become sufficiently familiar with the properties to assess fully their deficiencies and capabilities. Inspections may not always be performed on every well, and environmental problems, such as groundwater contamination, are not necessarily observable even when an inspection is undertaken. Environmental or other regulatory issues may arise with respect to acquired entities or operations years after the acquisitions. Even when problems are identified, the seller may be unwilling or unable to provide effective contractual protection against all or part of such problems. Significant acquisitions and other strategic transactions may involve other risks that may cause our business to be adversely impacted, including diversion of our management's attention to evaluating and negotiating such transactions. As a result of the foregoing, any acquisition of mineral and royalty interests involves both foreseen and unforeseen risks, all of which could have a material adverse effect on our business, financial condition and results of operations.

***We expect to distribute a substantial majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions.***

We expect to distribute a substantial majority of the cash we generate from operations each quarter. As a result, we will have limited cash generated from operations to reinvest in our business or to fund acquisitions, and we will rely primarily upon external financing sources, including commercial bank borrowings and the issuance of debt and equity securities, to fund our acquisitions and growth capital expenditures. If we are unable to finance growth externally, our distribution policy will significantly impair our ability to grow.

If we issue additional shares of Class A common stock in connection with any acquisitions or growth capital expenditures, the payment of distributions on those additional shares of Class A common stock may increase the risk that we will be unable to maintain or increase our per unit distribution level. The incurrence of additional

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commercial borrowings or other debt to finance our growth would result in increased interest expense and required principal repayments, which, in turn, may reduce the cash that we have available to distribute to our shareholders. See "Dividend Policy" for more information.

In addition, pursuant to the Contribution Agreement entered into in connection with the Internalization, the Continuing Equity Owners may receive additional OpCo Interests (and a corresponding number of shares of Class B common stock) as earnout consideration if we achieve certain Adjusted EBITDA targets during each of the three Earnout Years ending June 30, 2027, June 30, 2028 and June 30, 2029. Although the earnout consideration (with the exception of the dividend equivalent rights) is payable solely in OpCo Interests and Class B common stock (and not in cash), the issuance of such additional OpCo Interests would increase the number of units entitled to participate in distributions from WhiteHawk OpCo. As a result, the per-unit distributions from WhiteHawk OpCo, and correspondingly the per-share Cash Available for Distribution and dividends payable to holders of our Class A common stock, could be reduced. The maximum Earnout Amount is equal to 25% of the Internalization Price. See "Certain Relationships and Related Party Transactions—Internalization—Earnout" for additional detail regarding the earnout provisions.

While we expect to distribute a substantial majority of the cash we generate from operations each quarter, there can be no assurance that we will be able to pay dividends at the levels we currently anticipate, or at all. Our ability to pay dividends is subject to significant restrictions and limitations, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Covenants under our Revolving Credit Facility*. Under the Revolving Credit Facility, we may not declare or
make any restricted payment (including dividends, distributions in respect of, or redemptions of, our equity interests) except as specifically permitted. Permitted restricted payments include, among others, cash dividends and distributions to
holders of our equity interests so long as, both before and immediately after giving pro forma effect to any such restricted payment, (i) no default, event of default or borrowing base deficiency exists or would result therefrom,
(ii) Unused Availability (as defined in the Revolving Credit Facility) is at least 10% of the Loan Limit (as defined in the Revolving Credit Facility) and (iii) the Consolidated Net Leverage Ratio (as defined in the Revolving Credit
Facility), recomputed on a Pro Forma Basis (as defined in the Revolving Credit Facility), is less than or equal to 3.00 to 1.00; provided that, prior to the discharge of the obligations under the Note Purchase Agreement, such restricted payments are
also permitted under the Note Purchase Agreement. See "Description of Material Indebtedness." The Revolving Credit Facility also permits Permitted Tax Distributions (as defined in the Revolving Credit Facility), distributions to our
parent to fund Public Company Compliance costs and ordinary-course corporate overhead in an aggregate amount not to exceed $3,000,000 per fiscal year, distributions and repurchases pursuant to management or employee equity plans (capped at
$1,000,000 per fiscal year), stock-settled dividends, cash payments in lieu of fractional shares and certain other limited exceptions. Notwithstanding the foregoing, prior to the discharge of the Senior Notes, any restricted payment that would be
prohibited under the Senior Notes, as in effect on the Effective Date, will also be prohibited under the Revolving Credit Facility. In addition, the Revolving Credit Facility requires us to maintain, as of the last day of each fiscal quarter
(commencing with the first full fiscal quarter ending after the effective date thereof), (i) a Consolidated Net Leverage Ratio for the rolling period then ending of not greater than 3.50 to 1.00 and (ii) a Current Ratio (as defined in the
Revolving Credit Facility) of not less than 1.0 to 1.0, and to satisfy minimum hedging requirements that vary based on the Consolidated Net Leverage Ratio, each of which may limit our flexibility to make distributions or otherwise reduce cash that
would otherwise be available for dividends. The Revolving Credit Facility also contains a "most favored term" provision pursuant to which any representation, warranty, covenant (including financial covenants), event of default or other
term (excluding applicable margin for determining interest rates) in the Note Purchase Agreement that is more restrictive than the corresponding term of the Revolving Credit Facility will be automatically incorporated into the Revolving Credit
Facility (other than with respect to any most favored terms in the Note Purchase Agreement in existence on the Effective Date), with the result that the Revolving

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Credit Facility will at all times contain restrictions on restricted payments, negative covenants and other matters that are at least as restrictive as those in the Note Purchase Agreement governing our Senior Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Covenants under our Senior Notes*. Following the completion of this offering and the effectiveness of the
A&R Note Purchase Agreement governing our Senior Notes we may not declare or make any restricted payment (including dividends, distributions in respect of, or redemptions of, our equity interests) except as specifically permitted. Permitted
restricted payments include cash restricted payments to the direct holders of our equity interests so long as, both before and immediately after giving effect to any such restricted payment, (A) no default or event of default under the Note
Purchase Agreement, or borrowing base deficiency under the Revolving Credit Facility, exists or results from such restricted payment, (B) WhiteHawk OpCo is in pro forma compliance with its financial covenants, (C) unused availability is at
least 10% of the loan limit then in effect under the Revolving Credit Facility, and (D) the Consolidated Total Net Leverage Ratio on a pro forma basis for the most recently ended rolling period is less than 3.00 to 1.00 (with amounts limited to
65% of Distributable Free Cash Flow if the ratio is between 2.50 to 1.00 and 3.00 to 1.00, and 100% of Distributable Free Cash Flow if less than 2.50 to 1.00). Additionally, WhiteHawk OpCo may make cash restricted payments to the direct holders of
its equity interests so long as, both before and immediately after giving effect to any such restricted payment, (X) no default or event of default under the Note Purchase Agreement, or borrowing base deficiency under the Revolving Credit
Facility, exists or results from such restricted payment, (Y) WhiteHawk OpCo is in pro forma compliance with its financial covenants, and (Z) the Consolidated Total Net Leverage Ratio on a pro forma basis is less than 2.00 to 1.00. The
Note Purchase Agreement also permits permitted tax distributions, distributions to our parent to fund public company compliance costs and ordinary-course corporate overhead in an aggregate amount not to exceed $3,000,000 per fiscal year,
distributions and repurchases pursuant to management or employee equity plans (capped at $1,000,000 per fiscal year), stock-settled dividends, cash payments in lieu of fractional shares and certain other limited exceptions. Notwithstanding the
foregoing, prior to the discharge of the Senior Notes, any restricted payment that would be prohibited under the Senior Notes, as in effect on the Effective Date, will also be prohibited under the Revolving Credit Facility. In addition, the Note
Purchase Agreement requires WhiteHawk OpCo to maintain, as of the last day of each fiscal quarter (commencing with the fiscal quarter ending June 30, 2026), a Consolidated Total Net Leverage Ratio for the rolling period then ending of not
greater than 3.50 to 1.00, an Asset Coverage Ratio of not less than 1.00 to 1.00, and a Liquidity Percentage of at least 10%, each of which may limit our flexibility to make distributions or otherwise reduce cash that would otherwise be available
for dividends. The Note Purchase Agreement also contains a "most favored term" provision pursuant to which any representation, warranty, covenant (including financial covenants), event of default or other term (excluding applicable
margin for determining interest rates) in the Revolving Credit Facility that is more restrictive than the corresponding term of the Note Purchase Agreement will be automatically incorporated into the Note Purchase Agreement, with the result that the
Note Purchase Agreement will at all times contain restrictions on restricted payments, negative covenants and other matters that are at least as restrictive as those in the Revolving Credit Facility (other than with respect to any most favored terms
in the Revolving Credit Facility in existence on the Closing Date (as defined in the Note Purchase Agreement)). See "Description of Material Indebtedness." See also "— Risks Related to Our Indebtedness—The
Revolving Credit Facility and the Note Purchase Agreement restrict our ability to pay cash dividends and make other distributions to our stockholders."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Liquidity Incentive Fee*. In connection with this offering, approximately $13.6 million (estimated based on
an assumed public offering price of $26.00 per share, which is the midpoint of the range set forth on the cover) will become payable as a Liquidity Incentive Fee to the Management Contributor under the Management Agreement. The Liquidity Incentive
Fee is expected to be paid by the end of the second quarter of 2026. If we use cash on hand or incur additional debt under the Revolving Credit Facility in order to fund payment of the Liquidity Incentive Fee, the amount of cash available to pay
dividends

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could be reduced. See "Certain Relationships and Related Party Transactions—Investment Management Agreement—Liquidity Incentive Fee."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Delaware law limitations*. Under the Delaware General Corporation Law, we may only pay dividends out of
surplus (the excess of net assets over capital) or, if there is no surplus, out of net profits for the current and/or immediately preceding fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Business and liquidity needs*. Our board of directors may determine to reduce or eliminate dividends to
fund acquisitions, repay debt, satisfy working capital needs, or address other business requirements.

Additionally, our ability to pay dividends may be restricted by the terms of any future credit agreement or any future debt or preferred equity securities of us. See "Risk Factors—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited…" and "Description of Material Indebtedness" for additional information regarding restrictions on our ability to pay dividends.

***The terms of our Revolving Credit Facility may be modified in connection with its syndication, and the final terms may differ from those described herein.***

Our Revolving Credit Facility provides for an initial aggregate maximum credit amount of $500 million, an initial aggregate elected commitment amount of $150 million and an initial borrowing base of $150 million. In connection with the syndication of the Revolving Credit Facility, certain terms and conditions, including the applicable interest rate margins, commitment fees, financial covenants, events of default and other provisions, may be modified pursuant to the exercise of "flex" provisions contained in the arranger's engagement letter or in connection with the addition of new lenders to the facility. As a result, the final terms of the Revolving Credit Facility following syndication may differ, potentially in material respects, from the terms described elsewhere in this prospectus.

In addition, the Revolving Credit Facility contains a "most favored terms" provision pursuant to which more restrictive terms in the Note Purchase Agreement governing our Senior Notes will be automatically incorporated into the Revolving Credit Facility (other than with respect to any "most favored terms in the Note Purchase Agreement in existence on the Effective Date). These modifications, together with the automatic incorporation of more restrictive terms, could increase our borrowing costs, impose additional or more restrictive covenants on our operations, limit our ability to pay dividends and make other distributions to our stockholders, or otherwise adversely affect our business, financial condition and results of operations.

***If we fail to retain our key personnel or attract additional qualified personnel, we may not be able to achieve our business strategy which could have a material adverse effect on our business, financial condition and results of operations.***

Our future success and ability to implement our business strategy depends, in part, on our ability to attract, train, compensate, motivate and retain key personnel and service providers, and on the continued contributions of members of our management team and key employees or service providers, each of whom would be difficult to replace. We are a relatively new company and rely heavily on our executives and management team for their knowledge of the natural gas and crude oil industry and experience identifying, evaluating and completing acquisitions. The departure of executives or other members of our management or key personnel or key service providers could disrupt our business, as competition for highly skilled individuals with technical expertise is extremely intense within and outside of our markets, and we face challenges identifying, hiring, training and retaining qualified personnel and service providers in many areas of our business. Integrating new key personnel into our team and identifying and coordinating with key service providers could prove disruptive to our operations, require substantial resources and management attention and ultimately prove unsuccessful. The ability to remain competitive by offering competitive compensation packages and programs for growth and development of personnel, with a view to retaining existing talent and attracting new talent, and attracting key service providers, has become increasingly important to our business and its operations in the current climate. We cannot be certain that our labor costs will not increase as a result of a shortage in the supply of skilled,

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unskilled and technical personnel or any related governmental regulations, or due to the need to recruit and retain key personnel and service providers. Labor shortages and/or an inability to retain our executives, other senior management, and other key personnel, service providers, and talent or to attract and train additional qualified personnel and service providers could limit or delay our ability to implement our business strategy, all of which could have a material adverse effect on our business, financial condition and results of operations.

***Our management team and board of directors may also perform similar services for other businesses and thus are not solely focused on our business.***

Our officers and directors are not required to, and may not, commit their full time to our affairs, which may result in challenges allocating their time between our operations and the other businesses at which they may serve in similar or other roles. Certain of our officers are engaged in other business endeavors for which he or she may be obligated to contribute significant time and attention. Additionally, certain of our directors may also serve as officers or board members for other entities. For example, prior to this offering, our executive officers served in similar capacities with the manager. If our officers' and directors' other business affairs require them to devote substantial amounts of time to such affairs in excess of their current commitment levels, it could limit their ability to devote time to our affairs which may have a negative impact on our business. The other business activities of our officers and directors may create potential conflicts of interest, including situations where they may be presented with investment or business opportunities that could benefit both the Company and another entity with which they are affiliated. In such cases, our officers or directors may be required to determine how to allocate such opportunities, and there can be no assurance that any such determination will be made in our favor. Additionally, our officers and directors may have fiduciary duties to other entities that could conflict with their duties to us. For a complete discussion of our officers' and directors' other business affairs, please see the section of this prospectus entitled "Management."

***Our estimated proved reserves are based on many assumptions that may prove to be inaccurate. Any inaccuracies in these reserve estimates or underlying assumptions may materially affect the quantities and present value of our reserves, business, financial condition and results of operations.***

It is not possible to measure underground accumulations of natural gas, NGLs and oil with precision. Natural gas, NGL and oil reserve engineering requires subjective estimates of underground accumulations of natural gas, NGLs and oil using assumptions concerning future prices of these commodities, future production levels and operating and development costs. In estimating our reserves, we and our independent petroleum engineer must make various assumptions with respect to many matters that may prove to be incorrect, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future natural gas, NGL and oil prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected complications from offset well development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• production rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reservoir pressures, decline rates, drainage areas and reservoir limits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interpretation of subsurface conditions including geological and geophysical data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential for water encroachment or mechanical failures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• levels and timing of capital expenditures, lease operating expenses, production taxes and income taxes, and
availability of funds for such expenditures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effects of government regulation.

As a result, estimated quantities of proved reserves, projections of future production rates and the timing of development expenditures may turn out to be incorrect. If any of these assumptions prove to be incorrect, our estimates of reserves, the classifications of reserves based on risk of recovery and our estimates of the future net cash flows from our reserves could change significantly.

Our standardized measure of natural gas and oil reserves is calculated using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month individual product prices for each

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month within the 12-month period prior to fiscal year end. These prices and the operating costs in effect as of the date of estimation are held flat over the life of the properties. Production and income tax expenses are deducted from this calculation of future estimated development, with the result discounted at 10% per annum to reflect the timing of future net revenue in accordance with the rules and regulations of the SEC. Since forward-looking prices and costs are not used to estimate discounted future net cash flows from our estimated reserves, the standardized measure of our estimated reserves is not necessarily the same as the current market value of our estimated proved natural gas, NGL and oil reserves. The timing of the development and production on our properties will affect the timing of actual future net cash flows from proved reserves, and thus their actual present value. Over time, we may make material changes to reserve estimates to take into account changes in our assumptions and the results of actual development and production. In addition, the 10% discount factor used when calculating discounted future net cash flows, in compliance with the FASB statement on natural gas and oil producing activities disclosures, may not be the most appropriate discount factor based on interest rates in effect from time to time and risks associated with the Company, or the natural gas and oil industry in general.

The reserve estimates made for fields that do not have a lengthy production history are less reliable than estimates for fields with lengthy records. A lack of production history may contribute to inaccuracy in our estimates of proved reserves, future production rates and the timing of development expenditures. Further, our lack of knowledge of all individual well information known to the well operators such as incomplete well stimulation efforts, restricted production rates for various reasons and up-to-date well production data, etc. may cause differences in our reserve estimates.

In addition, the reserve data included in our reserve reports assume that substantial capital expenditures are required to develop the reserves. We cannot be certain that the estimated costs of the development of these reserves are accurate, that development will occur as scheduled or that the results of the development will be as estimated. Delays in the development of our reserves, increases in costs to drill and develop our reserves, or decreases in commodity prices will reduce the future net revenues of our estimated proved undeveloped reserves and may result in some projects becoming uneconomical. Because PUD reserves, under SEC reporting rules, may only be recorded if the wells they relate to are scheduled to be drilled within five years of the date of recording, the removal of PUD reserves that are not developed within this five-year period may be required.

***Our identified drilling locations are susceptible to uncertainties that could materially alter the occurrence or timing of their drilling. Further, our estimates of these locations are based on assumptions derived from the publicly available disclosure of our third-party operators and industry-wide results of operations, which may not be accurate or ultimately come to fruition. As a result, there is no guarantee that our estimates will be consistent with potential drilling locations that our third-party operators have identified or that the actual drilling activities of our third-party operators will be materially consistent with those presently identified.***

Our management team has identified and scheduled drilling locations in our operating areas over a multi-year period. The potential drilling locations we have identified are based on geologic and other data available to us and our interpretation of such data through our specialized software. Our third-party operators may have reached different conclusions about the potential drilling locations on our properties, and our third-party operators control the ultimate decision as to where and when a well is drilled. As result, such estimates may not be accurate and the ultimate number of wells drilled on our properties may be lower than expected. Whether these locations are ultimately drilled and developed depends on a number of factors, including oil and natural gas prices, assessment of risks, costs, drilling results, reservoir heterogeneities, the availability of equipment and capital, approval by regulators, lease terms, seasonal conditions and the actions of other operators. Because of these uncertainties, we do not know if the drilling locations we have identified will be drilled within our expected timeframe, or at all, or if our third-party operators will be able to economically produce hydrocarbons from these or any other potential drilling locations. The actual drilling activities on our acreage may be materially different from our current expectations, which could adversely affect our business, financial condition and results of operations.

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***We rely on our third-party operators, other third parties and government databases for information regarding our assets and, to the extent that information is incorrect, incomplete or lost, our financial and operational information and projections may be incorrect.***

As an owner of mineral and royalty interests, we rely on our third-party operators to notify us of information regarding production on our properties in a timely and complete manner, as well as the accuracy of information obtained from third parties and government databases. We use this information to evaluate our operations and cash flows, as well as to predict our expected production and possible future locations. To the extent we do not timely receive this information or the information is incomplete or incorrect, our results may be incorrect and our ability to project potential growth may be materially adversely affected. Furthermore, to the extent that we have to update any publicly disclosed results or projections made in reliance on this incorrect or incomplete information, investors could lose confidence in our reported financial information, which would likely have a negative effect on the trading price of our Class A common stock. If any of such third-party or government databases or systems were to fail for any reason, including as a result of a cyber-attack, possible consequences include loss of communication links and inability to automatically process commercial transactions or engage in similar automated or computerized business activities. Any of the foregoing consequences could materially adversely affect our business, financial condition and results of operations.

***We may be subject to information technology system failures, network disruptions, cyber-attacks or other breaches in data security.***

The natural gas and oil industry has generally become increasingly dependent upon digital technologies to conduct day-to-day operations. As such reliance on technology has increased, so have the risks posed to both us and our third-party operators. Our third-party operators are likely dependent on digital technologies to conduct certain exploration, development, production and processing activities, including interpreting seismic data, managing drilling rigs, production activities and gathering systems, conducting reservoir modeling and estimating reserves. The U.S. government has issued public warnings that indicate that energy assets might be specific targets of cyber security threats. If our third-party operators become the target of cyber-attacks with security breaches of information, their business operations may be substantially disrupted, which could have an adverse effect on our business, financial condition and results of operations. Cyber incidents could also cause operational interruption, compromise our confidential information and damage our reputation.

We and our third-party operators also face increased risk with the growing sophistication of generative AI capabilities, which may improve or expand the existing capabilities of cybercriminals described above in a manner we cannot predict at this time. Further, as cyber-attacks continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any vulnerability to cyber-attacks.

***We may be involved in legal proceedings that could result in substantial liabilities.***

We may from time to time be involved in various legal and other proceedings, including, without limitation, title, royalty or contractual disputes, regulatory compliance matters and personal injury or property damage matters in the ordinary course of our business. Such legal proceedings are inherently uncertain and their results cannot be predicted. Regardless of the outcome, such proceedings could have an adverse impact on us because of legal costs, diversion of management, and other personnel and other factors. In addition, it is possible that a resolution of one or more such proceedings could result in liability, penalties or sanctions, as well as judgments, consent decrees or orders requiring a change in our business practices, which could materially and adversely affect our business, operating results and financial condition. Accruals for such liability, penalties or sanctions may be insufficient. Judgments and estimates to determine accruals or range of losses related to legal and other proceedings could change from one period to the next, and such changes could be material.

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***A terrorist attack or armed conflict could harm our business.***

Terrorist activities, anti-terrorist activities and other armed conflicts involving the United States or other countries (including the war in Ukraine, ongoing conflict in Iran and the Israel-Hamas conflict) may adversely affect the United States and global economies and could prevent us from meeting our financial and other obligations. If any of these events occur, the resulting political instability and societal disruption could reduce overall demand for natural gas, NGLs and oil, potentially putting downward pressure on demand for our third-party operators' services and causing a reduction in our revenues. Natural gas, NGL and oil-related facilities, including those of our third-party operators, could be direct targets of terrorist attacks, and, if infrastructure integral to our third-party operators or the purchasers of their production is destroyed or damaged, they may experience a significant disruption in their operations which, in turn, could materially adversely affect our business, financial condition and results of operations. Costs for insurance and other security may increase as a result of these threats, and some insurance coverage may become more difficult to obtain, if available at all.

***Declining general economic, business or industry conditions may have a material adverse effect on our results of operations, cash flows and financial position.***

Concerns over global economic conditions, energy costs, supply chain disruptions, increased demand, labor shortages, the imposition of new tariffs, geopolitical issues, high levels of inflation, the availability and cost of credit and the U.S. financial market and other factors have contributed to increased global economic uncertainty. The United States experienced a significant increase in inflation beginning in the second half of 2021, and, although inflation has moderated throughout 2024 and 2025, higher interest rates have generally persisted. To the extent elevated inflation and interest rates remain or increase, our third-party operators may experience further cost increases for their labor and operations, including oil field services and equipment. Our third-party operators may also experience supply chain constraints, due to international trade policies or otherwise, and inflationary pressure on their cost structures, which could impact the revenues we receive from them. Our third-party operators also may face shortages of equipment, raw materials, supplies, commodities, labor and services, which may prevent them from executing their development plans on or around our land. These supply chain constraints, trade policies and inflationary pressures may continue to adversely impact our third-party operators' operating costs and, if they are unable to manage their supply chain, it may impact their ability to procure materials and equipment in a timely and cost-effective manner, if at all, which could materially and adversely affect our business, financial condition and results of operations.

***We recently restated our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 to correct material accounting errors and have identified material weaknesses in our internal control over financial reporting. As a result of the material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. A failure to maintain effective internal control over financial reporting or disclosure controls and procedures could impact our ability to accurately and timely report our financial results and other material disclosures or otherwise cause us to fail to meet our reporting obligations, which could have a material adverse effect on our operations and investor confidence in our business.***

On April 22, 2026, we concluded that our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 could no longer be relied upon as a result of material accounting errors identified by management subsequent to the issuance of our audited consolidated financial statements for the fiscal year ended December 31, 2025. Accordingly, the audited consolidated financial statements for the fiscal year ended December 31, 2025 included elsewhere in this prospectus were restated by the Company in order to reflect the correction of the identified errors related to (i) the recording of management fees and (ii) the misclassification of pre-closing date and post-effective date monies received related to acquisitions. For additional information, see "Note 3, Restatement of Financial Statements" to our audited consolidated financial statements for the fiscal year ended December 31, 2025 included elsewhere in this prospectus. As a result of the Restatement, we are subject to additional risks and uncertainties, including unanticipated legal and accounting costs, litigation, governmental proceedings or investigations and loss of investor confidence or reputational harm to our business.

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Although management did not, and was not required to, conduct a formal assessment of internal control over financial reporting as of December 31, 2025, as a result of the Misstatement and the Restatement, the Company identified certain material weaknesses in its internal control over financial reporting. As a result of the material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. Management will be implementing changes to strengthen our internal controls and remediate the material weaknesses. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting" for additional information related to the material weaknesses in internal control over financial reporting and our related remediation activities.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a company's consolidated interim or annual financial statements will not be prevented or detected on a timely basis. As such, if we do not remediate these material weaknesses in a timely manner, or if additional material weaknesses in our internal control over financial reporting are discovered, they may adversely affect our ability to record, process, summarize and report financial information timely and accurately and, as a result, our consolidated interim or annual financial statements may contain material misstatements or omissions. Additionally, because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Risks Related to Our Organizational Structure** 

***We are a holding company. Our sole material asset after completion of this offering will be our equity interests in WhiteHawk OpCo and OP GP, and we are accordingly dependent upon distributions from WhiteHawk OpCo and our operating subsidiaries to pay taxes and cover our corporate and other overhead expenses.***

We are a holding company and will have no material assets other than our equity interests in WhiteHawk OpCo and OpCo GP. We have no independent means of generating revenue or cash flow, and our ability to pay our taxes and operating expenses or declare and pay dividends in the future, if any, will be dependent upon the financial results and cash flows of WhiteHawk OpCo and distributions we receive from WhiteHawk OpCo and our operating subsidiaries. WhiteHawk OpCo will continue to be treated as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of WhiteHawk OpCo will be allocated to holders of OpCo Interests, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of WhiteHawk OpCo. Under the terms of the OpCo Agreement, WhiteHawk OpCo will be obligated, subject to various limitations and restrictions, including with respect to our debt agreements, to make tax distributions to holders of OpCo Interests, including us. To the extent WhiteHawk OpCo has available cash, we intend to cause WhiteHawk OpCo (a) to generally make pro rata distributions to its unitholders, including us, in an amount at least sufficient to allow unitholders to pay taxes imposed on their allocable share of taxable income of WhiteHawk OpCo to the extent unitholders, including us, do not otherwise receive non-tax distributions from WhiteHawk OpCo in amounts at least sufficient to allow unitholders, including us, to pay such taxes and (b) to reimburse us for our corporate and other overhead expenses through non-pro rata payments that are not treated as distributions under the OpCo Agreement. We are limited, however, in our ability to cause WhiteHawk OpCo and our operating subsidiaries to make these and other distributions to us due to the restrictions under the agreements governing our indebtedness. To the extent that we need funds and WhiteHawk OpCo or our operating subsidiaries are restricted from making such distributions under applicable law or regulation or under the terms of their financing arrangements, or are otherwise unable to provide such funds, it could materially adversely affect our liquidity and financial condition.

As mentioned above, under the OpCo Agreement, we intend to cause WhiteHawk OpCo, from time to time, to make distributions in cash to its unitholders (including us) in amounts at least sufficient to cover the taxes

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imposed on their allocable share of taxable income of WhiteHawk OpCo to the extent unitholders, including us, do not otherwise receive non-tax distributions from WhiteHawk OpCo in amounts at least sufficient to allow unitholders, including us, to pay such taxes. As a result of (i) potential differences in the amount of net taxable income allocable to us and to the Continuing Equity Owners, (ii) the lower tax rate under current law applicable to corporations as compared to individuals, and (iii) that tax distributions are required to be paid by WhiteHawk OpCo to its common unit holders pro rata in accordance with each common unitholder's economic interests in WhiteHawk OpCo, these tax distributions may be in amounts that exceed our tax liabilities. Our board of directors will determine the appropriate uses for any excess cash so accumulated, which may include, among other uses, the payment of distributions to our stockholders and the payment of other expenses. However, we will have no obligation to distribute such cash (or other available cash) to our stockholders. In addition, no adjustments to the exchange ratio for common units and corresponding shares of Class A common stock will be made as a result of any cash distribution by us or any retention of cash by us. To the extent we do not distribute such excess cash as distributions on our Class A common stock we may take other actions with respect to such excess cash, for example, holding such excess cash, contributing such cash to WhiteHawk OpCo in exchange for additional common units (or contributing such cash to WhiteHawk OpCo and making corresponding adjustments to the Continuing Equity Owners common units), lending it (or a portion thereof) to WhiteHawk OpCo, or repurchasing outstanding shares of our Class A common stock, some of which may result in shares of our Class A common stock increasing in value relative to the value of common units. The holders of common units may benefit from any value attributable to such cash balances if they acquire shares of Class A common stock in exchange for their common units, notwithstanding that such holders may have participated previously as holders of common units in distributions that resulted in such excess cash balances to us.

***Changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our results of operations and financial condition.***

We are subject to taxation by U.S. federal, state, and local tax authorities. Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allocation of expenses to and among different jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes to our assessment about our ability to realize, or in the valuation of, our deferred tax assets that are
based on estimates of our future results, the prudence and feasibility of possible tax planning strategies, and the economic and political environments in which we do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expected timing and amount of the release of any tax valuation allowances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax effects of stock-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs related to intercompany restructurings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in tax laws, regulations, or interpretations thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the outcome of current and future tax audits, examinations, or administrative appeals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than
anticipated future earnings in jurisdictions where we have higher statutory tax rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations or adverse findings regarding our ability to do business in some jurisdictions.

Any changes in U.S. taxation may increase our effective tax rate and harm our business, financial condition, and results of operations. In particular, new income or other tax laws or regulations could be enacted at any time, which could adversely affect our business operations and financial performance. Further, existing tax laws and regulations could be interpreted, modified, or applied adversely to us.

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***If we were deemed to be an investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), including as a result of our ownership of WhiteHawk OpCo, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.***

Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company generally will be deemed to be an "investment company" for purposes of the 1940 Act if (i) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities, or (ii) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding, or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an "investment company," as such term is defined in either of those sections of the 1940 Act.

We and WhiteHawk OpCo intend to conduct our operations so that we will not be deemed an investment company. As the sole managing member of WhiteHawk OpCo, we will control and operate WhiteHawk OpCo. On that basis, we believe that our interest in WhiteHawk OpCo is not an "investment security" as that term is used in the 1940 Act. However, if we were to cease participation in the management of WhiteHawk OpCo, or if WhiteHawk OpCo itself becomes an investment company, our interest in WhiteHawk OpCo could be deemed an "investment security" for purposes of the 1940 Act.

We and WhiteHawk OpCo intend to conduct our operations so that we will not be deemed an investment company. If it were established that we were an unregistered investment company, there would be a risk that we would be subject to monetary penalties and injunctive relief in an action brought by the U.S. Securities and Exchange Commission (the "SEC"), that we would be unable to enforce contracts with third parties and that third parties could seek to obtain rescission of transactions undertaken during the period it was established that we were an unregistered investment company. If we were required to register as an investment company, restrictions imposed by the 1940 Act, including limitations on our capital structure and our ability to transact with affiliates, could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.

**Risks Related to Our Industry** 

***Our industry is highly competitive, and competitive pressures could negatively affect our business.***

Competition in the natural gas, NGL and oil industry is intense, which may adversely affect our and our third-party operators' ability to succeed. Many of these companies explore for and produce natural gas, NGLs and crude oil, carry on midstream and refining operations, and market petroleum and other products on a regional, national or worldwide basis. Competition for acquisitions of mineral and royalty interests may increase the cost of, or cause us to refrain from, completing acquisitions. In addition, some of our competitors have significant financial, technical and marketing resources and may also have lower overhead cost structures, and therefore may be able to operate at lower costs than us. Our third-party operators' larger competitors may also be able to absorb the burden of present and future federal, state, local and other laws and regulations more easily than our third-party operators can, which would adversely affect our third-party operators' competitive position. Our third-party operators may have fewer financial and human resources than many companies in our third-party operators' industry and may be at a disadvantage in bidding for exploratory prospects and producing oil and natural gas properties. Furthermore, the natural gas and oil industry has experienced recent consolidation amongst some operators, which has resulted in certain instances of combined companies with larger resources. Such combined companies may compete against our third-party operators or, in the case of consolidation amongst our third-party operators, may choose to focus their operations on areas outside of our properties.

Furthermore, a substantial portion of our revenues is directly or indirectly dependent upon our ability to acquire additional properties which is dependent upon our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. As a result of the factors described above, the competitive environment we operate in could have a material adverse effect on our business, financial condition and results of operations.

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***Failure of exported liquefied natural gas to be a competitive source of energy for the United States or international markets could adversely affect our third-party operators and could have a material adverse effect on our business, financial condition and results of operations.***

Operations of LNG projects are dependent upon the ability of our third-party operators to deliver LNG supplies from the United States, which is primarily dependent upon LNG being a competitive source of energy internationally. The success of our business plan is dependent, in part, on the extent to which LNG can, for significant periods and in significant volumes, be supplied from North America and delivered to international markets at a lower cost than the cost of alternative energy sources. Through the use of improved exploration technologies, additional sources of natural gas may be discovered outside the United States, which could increase the available supply of natural gas outside the United States and could result in natural gas in those markets being available at a lower cost than LNG exported to those markets. Additionally, insufficient receiving capacity, LNG tanker capacity or political instability in foreign countries that import natural gas may also impede the willingness or ability of LNG purchasers and merchants in such countries to export LNG from the United States. In the United States, due mainly to a historically abundant supply of natural gas and discoveries of substantial quantities of unconventional, or shale, natural gas, imported LNG has not developed into a significant energy source making LNG a competitive source of energy within the United States. However, in addition to natural gas, LNG also competes with other sources of energy, including coal, oil, nuclear, hydroelectric, wind and solar energy. Some of these sources of energy may be available at a lower cost than LNG in certain markets including in the United States.

As a result of these and other factors, LNG may not be a competitive source of energy in the United States or internationally. The failure of LNG to be a competitive supply alternative to local natural gas, oil and other alternative energy sources in markets accessible to our third-party operators could adversely affect the ability of our third-party operators to deliver LNG from the United States or to the United States on a commercial basis. Any significant impediment to the ability to deliver LNG to or from the United States generally could have a material adverse effect on our third-party operators, or the purchasers of their production, and on our business, financial condition and results of operations.

***Our growth strategy is partly dependent upon the continued expansion of electricity demand driven by AI data center development. Expectations regarding increased demand for natural gas related to data centers and AI may not materialize, and our business prospects could be harmed if demand for natural gas does not develop as expected or takes longer to develop than we anticipate.***

Our growth and success are partly dependent on continued expansion of electricity demand driven by the rapid increase in AI data center development, which has contributed to record power consumption and is expected to continue to drive increased demand for electricity. However, there is no assurance that these forecasts of load growth will be accurate or that the anticipated load growth will occur as projected. Factors such as evolving technology, improvements in energy efficiency, changes in economic conditions, shifts in government policy, regulation or consumer sentiment related to AI usage and development, or project delays or cancellations by data center developers could reduce or slow demand for electricity relative to current expectations. Further, there is no assurance that natural gas will be used to meet such demand. If the anticipated load growth and related increase in demand for natural gas fails to materialize in areas in which we maintain mineral and royalty interests, it could have a material adverse effect on our business, financial condition and results of operations.

***The unavailability, high cost or shortages of rigs, equipment, raw materials, supplies or personnel may restrict or result in increased costs for our third-party operators related to developing and operating our properties.***

The natural gas, NGL and crude oil industry is cyclical, which can result in shortages of drilling rigs, equipment, raw materials (particularly water and sand and other proppants), supplies and personnel. When shortages occur, the costs and delivery times of rigs, equipment and supplies increase and demand for, and wage rates of, qualified drilling rig crews also rise. We cannot predict whether these conditions will exist in the future and, if so, what their timing and duration will be. In accordance with customary industry practice, our third-party

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operators rely on independent third-party service providers to provide many of the services and equipment necessary to drill new wells. If our third-party operators are unable to secure a sufficient number of drilling rigs at reasonable costs, our financial condition and results of operations could suffer. In addition, they may not have long-term contracts securing the use of their rigs. Shortages of drilling rigs, equipment, raw materials, supplies, personnel, trucking services, tubulars, hydraulic fracturing and completion services and production equipment could delay or restrict our third-party operators' exploration and development operations, which in turn could have a material adverse effect on our business, financial condition and results of operations.

***The marketability of natural gas, NGLs and crude oil is dependent upon transportation, pipelines and refining facilities, which neither we nor many of our third-party operators control. Any limitation in the availability of those facilities or our third-party operators' inability to obtain access to such facilities on commercially reasonable terms or otherwise could interfere with our third-party operators' ability to store, process, transmit and market our third-party operators' production as well as their plans to develop and sell our reserves, and could harm our business.***

The marketability of our third-party operators' production depends in part on the availability, proximity and capacity of pipelines, tanker trucks and other transportation methods, and processing and refining facilities developed and owned by third parties. Our third-party operators rely, and expect to rely in the future, on these third-party facilities in order to store, process, transmit and sell their production. Neither we nor the majority of our third-party operators control these third-party transportation facilities and our third-party operators' access to them may be limited or denied. The inability or unwillingness of third parties to provide sufficient facilities and services to our third-party operators on commercially reasonable terms or otherwise could have a material and adverse effect on our third-party operators' plans to develop and sell our reserves. Additionally, insufficient production from the wells on our acreage or a significant disruption in the availability of third-party transportation facilities or other production facilities could adversely impact our third-party operators' ability to deliver, to market or produce natural gas, NGLs and crude oil and thereby cause a significant interruption in our third-party operators' operations. If these facilities are unavailable to our third-party operators on commercially reasonable terms or otherwise, our third-party operators could be forced to shut in some production or delay or discontinue drilling plans and commercial production on our properties following a discovery of hydrocarbons. If these facilities are unable, for any sustained period, to implement acceptable delivery or transportation arrangements or encounter production-related difficulties, they may also be required to shut in or curtail production. In addition, the amount of natural gas, NGLs and oil that can be produced and sold is subject to curtailment in certain other circumstances outside of our or our third-party operators' control, such as pipeline interruptions due to scheduled and unscheduled maintenance, excessive pressure, physical damage or lack of available capacity on these systems, downstream processing facilities' failure to accept unprocessed natural gas, tanker truck availability and extreme weather conditions. Also, production from our wells may be insufficient to support the construction of pipeline facilities, and the shipment of our third-party operators' natural gas, NGLs and crude oil on third-party pipelines may be curtailed or delayed if it does not meet the quality specifications of the pipeline owners. The curtailments arising from these and similar circumstances may last for an extended period of time. In many cases, we and our third-party operators are provided only with limited, if any, notice as to when these circumstances will arise and their duration. Any significant curtailment in gathering system or transportation, processing or refining-facility capacity, or an inability to obtain favorable terms for delivery of the natural gas, NGLs and crude oil produced from our acreage, could reduce our third-party operators' ability to market the production from our properties and have a material adverse effect on our financial condition, results of operations and cash flows. Our third-party operators' access to transportation options and the prices our third-party operators receive can also be affected by U.S. federal and state regulation—including regulation of natural gas, NGL and crude oil production, transportation and pipeline safety—as well by general economic conditions and changes in supply and demand. The interstate transportation and sale for resale of natural gas are subject to federal regulation, including regulation of the terms, conditions and rates for interstate transportation, storage and various other matters, primarily by the Federal Energy Regulatory Commission ("FERC"). FERC's regulations for interstate natural gas transmission in some circumstances may also affect the intrastate transportation of natural gas. Federal and state regulations also govern the price and terms for access to natural gas pipeline transportation. In addition, the third parties on whom our third-party operators rely for

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transportation services are subject to complex federal, state, tribal and local laws that could adversely affect the cost, manner or feasibility of conducting our business.

Finally, a decrease in access to midstream and operational infrastructure and bottlenecks in processing and transportation could result in a decline in the price of natural gas, NGLs and crude oil, which could have a material adverse effect on our business, financial condition and results of operations.

**Risks Related to Legal, Regulatory and Environmental Matters** 

***Our third-party operators are subject to significant governmental regulations, and governmental authorities can delay or deny permits and approvals or change legal requirements governing our business, which could restrict their operations, increase costs of conducting our business, and delay our implementation of, or cause us to change, our business strategy.***

The current and future operations of our business and that of the third-party operators on our land are and will be governed by complex and stringent federal, state, local, and other laws and regulations, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws and regulations governing mineral acquisition, development, production, transportation, marketing and sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws and regulations related to exports, taxes and fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• labor standards and regulations related to occupational health and safety; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental, health or safety standards and regulations related to waste disposal, pollution clean-up, toxic substances, land use, and protection of the environment and natural resources.

Federal, state and local agencies may assert overlapping authority to regulate in these areas. Under these laws and regulations, we (either directly or indirectly through our third-party operators) could be liable for personal injuries, property and natural resource damages and other damages. Failure to comply with these laws and regulations may result in the suspension or termination of our business and subject us to administrative, civil and criminal penalties. In addition, certain of these laws and regulations may apply retroactively and may impose strict or joint and several liability on us for events or conditions over which we and our predecessors had no control, without regard to fault, legality of the original activities, or ownership or control by third parties.

Companies engaged in exploration activities often experience increased costs and delays in production and other schedules as a result of the need to comply with applicable laws, regulations and permits. Costs of compliance may increase, and operational delays or restrictions may occur, as existing laws and regulations are revised or reinterpreted, or as new laws and regulations become applicable to our business and our third-party operators. Government authorities and other organizations continue to study health, safety and environmental aspects of mineral operations, including those related to air, soil and water quality, ground movement or seismicity, and natural resources. Government authorities have also adopted or proposed new or more stringent requirements for permitting well construction, and public disclosure or environmental review of, or restrictions on, mineral operations. Such requirements or associated litigation could result in potentially significant added costs to comply, delay or curtail the exploration, development, disposal or production activities of our third-party operators, which could have a material adverse effect on our business, financial condition and results of operations.

To operate in compliance with these laws and regulations, our third-party operators must obtain and maintain permits, approvals and certificates from federal, state and local government authorities for a variety of activities. These permits are generally subject to protest, appeal or litigation, which could in certain cases delay or halt projects, production of wells and other operations. Failure to comply with laws and regulations, including obtaining and maintaining permits, approvals and certificates, may result in enforcement actions, including the forfeiture of claims, or orders issued by regulatory or judicial authorities requiring operations to cease or be curtailed, the assessment of administrative, civil, and criminal fines and penalties and liability for noncompliance, costs of corrective action, cleanup or restoration, including capital expenditures, installation of

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additional equipment, or remedial actions, compensation for personal injury, property damage or other losses, and the imposition of injunctive or declaratory relief restricting or limiting their operations.

Our business may also be adversely affected by seasonal or permanent restrictions on drilling activities designed to protect various wildlife. The Endangered Species Act ("ESA") and analogous state laws restrict activities that may affect endangered or threatened species or their habitats. Similar protections are offered to migratory birds under the Migratory Bird Treaty Act. Certain of our properties may overlap with the habitat for species listed under the ESA or analogous state laws, and restrictions designed to protect threatened or endangered species or their habitat may limit the abilities of our third-party operators to operate in certain areas and can intensify competition for drilling rigs, oilfield equipment, services, supplies and qualified personnel, which may lead to periodic shortages when drilling is allowed. Permanent restrictions could prohibit drilling or emplacement of pipelines in certain areas or require the implementation of expensive mitigation measures. These restrictions could have a material adverse effect on our business, financial condition and results of operations to the extent they impact our properties, our third-party operators or our mineral and royalty interests.

***The development and enactment of climate change legislation and regulation regarding emissions of greenhouse gases ("GHGs") could adversely affect the mineral industry and reduce demand for the natural gas and oil that our third-party operators produce.***

The energy industry is affected from time to time in varying degrees by political developments and a wide range of federal, tribal, state and local statutes, rules, orders and regulations that may, in turn, affect the operations and costs of the companies engaged in the energy industry. While Congress has from time to time considered legislation to reduce emissions of GHGs, comprehensive legislation aimed at reducing GHG emissions has not yet been adopted at the federal level. Notwithstanding the U.S. Environmental Protection Agency's ("EPA") recent final rule repealing the "Endangerment Finding" that underlies the majority of its GHG-related regulations, GHG emissions have been regulated by the EPA under previous administrations pursuant to the Clean Air Act of 1970 (as amended, the "CAA"), as well as by state environmental authorities. For example, in December 2023, the EPA finalized stringent emissions control requirements for certain new and existing upstream and midstream natural gas and oil facilities, known as Subparts OOOOb and OOOOc, and failure to comply with these new rules may result in substantial fines and penalties, as well as injunctive relief. However, in March 2025, the EPA announced plans to reconsider Subparts OOOOb and OOOOc and, in November 2025, the EPA finalized an interim final rule extending certain compliance deadlines for certain provisions provided in the rules. Litigation challenging the interim final rule remains pending. In addition, the EPA has adopted rules requiring the monitoring and reporting of GHG emissions from specified onshore and offshore oil and gas production sources in the United States on an annual basis, which may include operations on our properties. In September 2025, the EPA proposed to delay the reporting of GHG emissions for the oil and gas sector until 2034. These proposals are still under consideration and are subject to a number of uncertainties and likely could face legal challenges that would further delay the implementation of any rules, and we cannot predict the ultimate outcome. Litigation challenging the rule rescinding the "Endangerment Finding" is ongoing, and as a result, there is significant uncertainty with respect to regulation of GHG emissions. To the extent new laws or regulations are adopted or issued to address GHG emissions, they could increase compliance costs for our third-party operators or restrict the ability to permit GHG emissions from new or modified sources, which in turn could result in a material adverse impact on our business. In addition, substantial limitations on GHG emissions could adversely affect demand for natural gas, NGLs and oil, which may also adversely affect our business and financial results. Further, the Infrastructure Investment and Jobs Act and the Inflation Reduction Act of 2022 (the "IRA") include billions of dollars in incentives for the development of renewable energy, clean hydrogen, clean fuels, electric vehicles, investments in advanced biofuels and supporting infrastructure, and carbon capture and sequestration. Additionally, the IRA includes a Waste Emissions Charge for methane emissions from specific types of facilities that emit 25,000 metric tons of carbon dioxide equivalent or more per year, and, although the IRA generally provides for a conditional exemption under certain circumstances, the charge applies to emissions that exceed an established emissions threshold for each type of covered facility. In November 2024, the EPA finalized the Waste Emissions Charge rule. However, in February 2025, Congress repealed the Waste Emissions Charge rule

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using the Congressional Review Act. In addition, the One Big Beautiful Bill Act, enacted in July 2025, delayed implementation of the charge until 2034. While the EPA cannot reissue its rule implementing the Waste Emissions Charge (either in substantially the same form or in a new rule), the underlying requirement in the IRA remains unchanged. We cannot predict if the Trump administration and/or Congress may take action to repeal or revise this requirement in the IRA. However, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas and oil projects and increase our third-party operators' costs of development, with possible significant costs, and adversely affect our business.

Additional GHG regulation could also result from the agreement crafted during the United Nations climate change conference in Paris, France, in December 2015 (the "Paris Agreement"). Under the Paris Agreement, the United States committed to reducing its GHG emissions by 26-28% by the year 2025 as compared with 2005 levels. Moreover, in November 2021, at the U.N. Framework Convention on Climate Change Conference of the Parties (the "Conference of the Parties"), the United States and the European Union advanced a Global Methane Pledge to reduce global methane emissions at least 30% from 2020 levels by 2030, which over 100 countries have signed. At the 27th Conference of the Parties, the United States agreed, in conjunction with the European Union and a number of other partner countries, to develop standards for monitoring and reporting methane emissions to help create a market for low methane intensity natural gas. A decision from the 28<sup>th</sup> Conference of the Parties serving as a meeting of the Parties to the Paris Agreement calls on countries to contribute to a list of global efforts, taking into account the Paris Agreement and their different national circumstances, pathways and approaches. This list includes a tripling of renewable energy capacity and doubling the global average rate of energy efficiency improvements by 2030; phasing out inefficient fossil fuel subsidies that do not address energy poverty or just transitions, as soon as possible; and transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in the 2020s, so as to achieve net zero by 2050 in keeping with the science. However, in January 2025, President Trump announced the United States' withdrawal from the Paris Agreement, and in January 2026, President Trump announced the United States' withdrawal from the United Nations Framework Convention on Climate Change. In addition, the Supreme Court's decision in *Loper Bright Enterprises v. Raimondo* to overrule *Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,* thus ending the concept of general deference to regulatory agency interpretations of laws, introduces new complexity for federal agencies and administration of climate change policy and regulatory programs. The full impact of these actions remains uncertain at this time but many of these initiatives to address climate change at the international, state and local levels are expected to continue. Consequently, legislation and regulatory programs to address climate change or reduce emissions of GHGs could have a material adverse effect on our business, financial condition and results of operations. In the absence of comprehensive federal climate legislation, a number of state and regional efforts have emerged that are aimed at tracking or reducing GHG emissions by means of cap-and-trade programs, and we cannot predict what or whether states may take further action to regulate GHG emissions following the EPA's rescission of the "Endangerment Finding.". These programs typically require major sources of GHG emissions to acquire and surrender emission allowances in return for emitting those GHGs.

Although it is not possible at this time to predict how legislation or new regulations that may be adopted to address GHG emissions would impact us and our third-party operators, any future laws and regulations imposing reporting obligations on, or limiting emissions of GHGs from, such operators' equipment and operations could require them to incur costs to reduce emissions of GHGs associated with their operations, which could adversely impact our business. In addition, substantial limitations on GHG emissions could adversely affect demand for the natural gas and oil produced from our properties. Restrictions on emissions of methane or carbon dioxide, such as restrictions on venting and flaring of natural gas, that may be imposed in various states, as well as state and local climate change initiatives, such as increased energy efficiency standards or mandates for renewable energy sources, could adversely affect the oil and gas industry. It is not possible at this time to accurately estimate how potential future laws or regulations addressing GHG emissions would impact oil and gas assets. Increasingly, natural gas and oil companies are exposed to litigation risks resulting from climate change. A number of parties have brought suits against natural gas and oil companies in state or federal court, including suits for alleged contributions to, or failure to disclose the impacts of, climate change. While we are not currently party to any such litigation, we or our third-party operators could be named in future actions making similar claims of liability. Moreover, to the extent that societal pressures or

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political or other factors are involved, it is possible that such liability could be imposed without regard to the company's causation of or contribution to the asserted damage. Involvement in any such litigation could have a material adverse impact on our business, financial condition and results of operations.

Finally, climate change may have significant physical effects, such as increased frequency and severity of extreme weather events (including storms, freezes, floods, drought, hurricanes and other climatic events) or changes in meteorological and hydrological patterns, that could adversely impact our third-party operators. Such effects may result from damage to our third-party operators' facilities, including through restrictions on the use of water due to drought and indirect impacts from supply chain disruption and market volatility. These effects may adversely affect our business, financial condition and results of operations.

***Increased attention to sustainability-related matters and conservation measures may impact our business or the business of our third-party operators.***

Increased attention to climate change, and sometimes conflicting societal expectations on companies to address climate change and consumer demand for alternative forms of energy, may result in increased costs, reduced demand for natural gas, NGLs and oil, reduced profits, increasing administrative, legislative and judicial scrutiny, reputational damage and negative impacts on us or our third-party operators, which may ultimately have adverse impacts on our business, such as our access to capital markets as well as the price of our Class A common stock. Increased attention to climate change and environmental conservation, for example, may result in demand shifts for natural gas and oil products and governmental investigations, private litigation or activist campaigns against us or our third-party operators.

While we may elect to pursue certain sustainable energy-related strategies in the future, any such goals are aspirational and may not have the intended impact on our business. We may also receive pressure from investors, lenders or other groups to adopt more aggressive climate or other sustainability-related goals, and we cannot guarantee that we will be able to pursue or implement such goals because of potential costs or technical or operational obstacles. Moreover, failure or a perception (whether or not valid) of failure to pursue or implement such strategies or achieve such goals or commitments, including any GHG emission reduction or carbon intensity goals or commitments, could result in private litigation and damage our reputation, cause investors or consumers to lose confidence in us, and negatively impact our third-party operators. Additionally, to the extent sustainability-related matters negatively impact our reputation, we may not be able to compete as effectively to recruit or retain employees, which may adversely affect our business.

Some organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to sustainability concerns. Such ratings are used by some investors to inform their investment and voting decisions. While such ratings do not impact all investors' decisions, unfavorable ratings and any recent activism directed at shifting funding away from companies with energy-related assets could lead to increased negative investor sentiment toward us, our third-party operators and our industry and to the diversion of investment to other industries, which could have a negative impact on our access to and costs of capital. Additionally, certain public statements with respect to sustainability matters, such as emissions reduction claims, are becoming increasingly subject to heightened scrutiny from public and governmental authorities, as well as other parties, related to the risk of potential "greenwashing"—i.e., misleading information or false claims overstating potential benefits. Any alleged claims of greenwashing against us or others in our industry may lead to further negative sentiment and diversion of investments.

***Our third-party operators' exploration and development activities are subject to hazardous operating risks, which could expose our third-party operators to significant liability, delay, suspension or termination of their operations.***

Our third-party operators are subject to all of the hazards and operating risks associated with drilling for and production of natural gas, NGLs and crude oil, including the risk of fire, explosions, blowouts, surface cratering,

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uncontrollable flows of natural gas, NGLs and crude oil and formation water, pipe or pipeline failures, abnormally pressured formations, casing collapses and environmental hazards such as crude oil and NGL spills, natural gas leaks and ruptures or discharges of toxic gases. In addition, their operations will be subject to risks associated with hydraulic fracturing, including any mishandling, surface spillage or potential underground migration of fracturing fluids, including chemical additives. The occurrence of any of these events could result in substantial losses to our third-party operators due to injury or loss of life, severe damage to or destruction of property, natural resources and equipment, pollution or other environmental damage, clean-up responsibilities, regulatory investigations and penalties, suspension of operations and repairs required to resume operations, which in turn could have a material adverse effect on our business, financial condition and results of operations.

The exploration and possible future development phases of the business of the third-party operators we work with are and will be subject to federal, state and local environmental, health and safety regulations. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set out limitations on the generation, transportation, storage and disposal of solid and hazardous waste, impose restrictions on activities to protect certain species and regulate worker health and safety. Future environmental legislation may require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments and a heightened degree of responsibility for companies and their officers, directors and employees. Future changes in environmental regulations, if any, may adversely affect our third-party operators, and, as a result, our business. If our third-party operators fail to comply with any applicable environmental laws, regulations or permit requirements, they could face regulatory or judicial sanctions. Penalties imposed by either the courts or administrative bodies could delay or stop their operations to develop our minerals or require considerable capital expenditures. Furthermore, certain groups opposed to exploration and mining may attempt to interfere with their operations through the legal or regulatory process or by engaging in disruptive protest activities. The occurrence of any of these risks to our third-party operators could in turn have a material adverse effect on our business, financial condition and results of operations.

Environmental hazards unknown to us, which have been caused by previous or existing owners or operators of our properties, may exist on our properties. Our properties could be located on or near the site of a federal cleanup project, and that environmental cleanup or other environmental restoration procedures could remain pending or mandated by law, which may result in unexpected liabilities, with total costs that are difficult to predict.

The Comprehensive Environmental, Response, Compensation and Liability Act ("CERCLA") and comparable state statutes impose strict, joint and several liability on current and former owners and operators of sites and on persons who disposed of or arranged for the disposal of hazardous substances found at such sites. It is not uncommon for the government to file claims requiring cleanup actions, demands for reimbursement for government-incurred cleanup costs, or natural resource damages, or for neighboring landowners and other third parties to file claims for personal injury and property damage allegedly caused by hazardous substances released into the environment. The Federal Resource Conservation and Recovery Act ("RCRA") and comparable state statutes govern the disposal of solid waste and hazardous waste and authorize the imposition of substantial fines and penalties for noncompliance, as well as requirements for corrective actions and financial assurance. CERCLA, RCRA and comparable state statutes can impose liability for clean-up of sites and disposal of substances found on exploration and processing sites long after activities on such sites have been completed.

The CAA restricts the emission of air pollutants from many sources, including drilling and production activities. The drilling and production operations conducted by third parties to develop our minerals may produce air emissions, including fugitive dust and other air pollutants from stationary equipment, storage facilities and the use of mobile sources such as trucks and heavy construction equipment, which are subject to review, monitoring and/or control requirements under the CAA and state air quality laws. In undeveloped properties, our third-party operators may be required to obtain permits before work can begin, and, in properties with existing facilities, our third-party operators may need to incur capital costs in order to remain in compliance. In addition, permitting rules may impose limitations on operators' production levels or result in additional capital expenditures in order to comply with the rules.

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The National Environmental Policy Act requires federal agencies to integrate environmental considerations into their decision-making processes by evaluating the environmental impacts of their proposed actions and assessing alternatives to those actions. If a proposed federal action could significantly affect the environment, the agency must prepare a detailed statement known as an Environmental Impact Statement ("EIS"). The EPA, other federal agencies and any interested third parties will review and comment on the scoping of the EIS and the adequacy of and findings set forth in the draft and final EIS. This process can cause delays in the issuance of required permits, litigation over the adequacy of the EIS or result in changes to a project to mitigate its potential environmental impacts, which can in turn adversely impact the economic feasibility of a proposed project.

The Clean Water Act (the "CWA") and comparable state statutes impose restrictions and controls on the discharge of pollutants into waters of the United States. The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or an analogous state agency. Such a permit requires the regulated facility to monitor and sample storm water run-off from its operations. The CWA and regulations implemented thereunder also prohibit the discharge of dredged and fill material in certain wetlands and other regulated waters unless authorized by an appropriately issued permit. The CWA and comparable state statutes provide for civil, criminal and administrative penalties for the unauthorized discharge of pollutants and impose liability on parties responsible for those discharges for the costs of cleaning up any environmental damage caused by the discharge and for natural resource damages resulting from the discharge.

The Safe Drinking Water Act (the "SDWA") and the Underground Injection Control (the "UIC") program promulgated thereunder regulate the drilling and operation of subsurface injection wells. The EPA directly administers the UIC program in some states; in other states, including those in which we own property, the responsibility for the program has been delegated to the state. The UIC program requires that a permit be obtained before drilling a disposal or injection well. Violation of these regulations and/or contamination of groundwater may result in fines, penalties and remediation costs, among other sanctions and liabilities under the SDWA and state laws. In addition, third-party claims may be filed by neighboring landowners and other parties claiming damages for alternative water supplies, property damages, and bodily injury.

There can be no assurance that the defense of such claims by us or our third-party operators will be successful and a successful claim against us or any of the third parties we contract with could have an adverse effect on our business, financial condition and results of operations.

***Future legislative or regulatory changes may result in increased costs and decreased revenues, cash flows and liquidity, all of which could have a material adverse effect on our business, financial condition and results of operations.***

Companies that operate wells in which we own mineral and royalty interests are subject to extensive federal, state and local regulation. We, as a minerals and royalties interest owner, are therefore indirectly subject to these same regulations. In particular, changes in law or regulation related to hydraulic fracturing or GHGs could significantly increase capital, compliance and operating costs, as well as halt or delay the further development of gas and oil reserves on our properties.

*Federal Income Taxation* 

We are subject to U.S. federal income tax, as well as income or capital-based taxes in various states, and our operating cash flows are sensitive to the amount of income taxes we must pay. Income taxes are assessed on our net income as determined for federal income tax purposes, considering allowable deductions and credits. Changes in the types of earnings that are subject to income tax, the types of items that are considered allowable deductions or the rates assessed on our taxable earnings would all impact our income taxes and resulting operating cash flows.

Further revisions to U.S. tax law, such as any increase in corporate income tax rates, the repeal of the percentage depletion allowance, or the repeal of expensing for intangible drilling costs, could have a material adverse effect on our business. Moreover, the U.S. Department of Treasury has broad authority to issue regulations and

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interpretative guidance that may significantly impact how we apply U.S. tax law, with a corresponding impact on the results of our operations for the periods affected.

*Hydraulic Fracturing and Water Disposal* 

The vast majority of natural gas and oil wells drilled in recent years have been, and future wells are expected to be, hydraulically fractured as a part of the process of completing the wells and putting them on production, including the wells drilled in which we own an interest. Hydraulic fracturing is a process that involves pumping water, sand and additives at high pressure into rock formations to stimulate natural gas and oil production. In developing plays where hydraulic fracturing, which requires large volumes of water, is necessary for successful development, the demand for water may exceed the supply. Over the past several years, parts of the country have experienced extreme drought conditions. As a result of this severe drought, some local water districts have begun restricting the use of water subject to their jurisdiction for hydraulic fracturing to protect local water supply. Such conditions may be exacerbated by climate change. If our third-party operators are unable to obtain water to use in their operations from local sources, or if our third-party operators are unable to effectively utilize flowback water, they may be unable to economically drill for or produce natural gas, NGLs and crude oil from our properties, which could have a material adverse effect on our business, financial condition and results of operations.

In addition to water, hydraulic fracturing fluid contains chemical additives designed to optimize production. Well operators are required in certain states to disclose the components of these additives. Additional states and the federal government may follow with similar requirements or may restrict the use of certain additives. This could result in more costly or less effective development of wells.

The fluid produced from the fractured formation must be either treated for reuse or disposed of by injecting the fluid into disposal wells. Injection well disposal processes have been, and continue to be, studied to determine the extent of correlation between injection well disposal and the occurrence of earthquakes. Certain studies have concluded there is a correlation, and this has resulted in the cessation of or the reduction of injection rates in certain water disposal wells, especially in northern Oklahoma.

Efforts to regulate hydraulic fracturing and fluid disposal continue at the local, state and federal level. For example, the EPA has asserted regulatory authority pursuant to the SDWA UIC program over hydraulic fracturing activities involving the use of diesel and issued guidance covering such activities. New regulations are being considered, including limiting water withdrawals and usage, limiting water disposition, restricting which additives may be used, implementing statewide hydraulic fracturing moratoriums and temporary or permanent bans in certain environmentally sensitive areas. Public sentiment against hydraulic fracturing and fluid disposal and shale production could result in more stringent permitting and compliance requirements. Consequences of any of these regulation efforts could increase capital, compliance and operating costs significantly, as well as delay or halt the further development of gas and oil reserves on our properties.

Any of the above factors could have a material adverse effect on our business, financial condition and results of operations.

*Inflation Reduction Act of 2022* 

The IRA appropriates significant federal funding for renewable energy initiatives. These incentives could accelerate the transition of the U.S. economy towards lower- or zero-carbon emissions alternatives, which could decrease demand for oil and gas. Moreover, the IRA imposes a federal fee on GHG emissions through a Waste Emissions Charge. The IRA amends the federal Clean Air Act to impose a fee on the emission of methane from sources required to report their GHG emissions to the EPA, including those sources in the onshore petroleum and natural gas production and gathering and boosting source categories. However, the One Big Beautiful Bill Act, enacted in July 2025, delays implementation of the charge until 2034. While the EPA cannot reissue its rule

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implementing the Waste Emissions Charge (either in substantially the same form or in a new rule), the underlying requirement in the IRA remains unchanged. Although we cannot predict if the Trump administration and/or Congress may take action to repeal or revise this requirement of the IRA, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas projects and increase our third-party operators' costs of development, which costs could be significant, and in turn have a material adverse effect on our business, financial condition and results of operations.

On January 20, 2025, President Trump issued the "Unleashing American Energy" executive order (EO 14154), which directs federal agencies to suspend the disbursement of funds under the IRA, reassess existing energy policies, and streamline permitting processes for oil and gas development. If fully implemented, EO 14154 is expected to reduce compliance costs, expand development opportunities, and provide more investment certainty. However, while the executive order signals a shift in energy policy, certain provisions of the IRA were enacted through legislation that may require congressional action or judicial review before being fully repealed or modified, and agency actions taken pursuant to EO 14154 have been subject to litigation. We will continue to monitor regulatory developments, potential legal challenges, and legislative actions that may affect the implementation of EO 14154. While the administration's energy policies appear broadly supportive of the oil and gas industry, ongoing legal and political dynamics may impact the extent to which specific provisions are ultimately enforced or rescinded.

*Seismic Activity* 

In response to concerns related to earthquakes in northern and central Oklahoma and Texas near underground disposal wells used for the injection of flowback and produced water (known as "induced seismicity"), regulators in some states, including Oklahoma and Texas, have imposed, or are considering imposing, certain limits on or requirements related to the permitting or operation of produced water disposal wells in areas with increased instances of induced seismic events. States may, from time to time, develop and implement plans directing certain wells in proximity to where seismic incidents have occurred to restrict or suspend well operations. These legislative and regulatory initiatives may result in additional levels of regulation that could lead to operational delays, litigation concerning, and greater opposition to, natural gas and oil activities using injection wells for waste disposal, and increased operating and compliance costs or otherwise adversely affect operations. Increased restrictions may also have a material adverse effect on our third-party operators and operations on our properties, which could have an indirect adverse effect on our business, financial condition and result of operations.

***The adoption of derivatives legislation by the U.S. Congress could have an adverse effect on us and our ability to hedge risks associated with our business.***

The Dodd-Frank Act required, in part, that the U.S. Commodity Futures Trading Commission ("CFTC") and the SEC promulgate rules and regulations to establish federal oversight for the over-the-counter ("OTC") derivatives markets and entities that participate in those markets. Although the CFTC and the SEC have issued final regulations in certain areas, final rules in other areas and the scope of relevant definitions and/or exemptions still remain to be finalized.

Effective March 15, 2021, the CFTC implemented its final rule concerning speculative position limits, adopting new and amended federal spot-month limits for 2025 physical commodity derivatives. Under this rule, certain types of hedging transactions are exempt from these limits on the size of positions that may be held, provided that such hedging transactions satisfy the CFTC's requirements for certain enumerated "bona fide hedging" transactions or positions.

The CFTC has also adopted final rules regarding aggregation of positions, under which a party that controls the trading of, or owns 10% or more of the equity interests in, another party will have to aggregate the positions of the controlled or owned party with its own positions for purposes of determining compliance with position limits unless an exemption applies. With the implementation of the final aggregation rules and upon the adoption and

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effectiveness of final CFTC position limits rules, our ability to execute our hedging strategies described above could be limited. It is uncertain at this time whether, when and in what form the CFTC's proposed new position limits rules may become final and effective.

The CFTC issued a final rule on margin requirements for uncleared swap transactions on January 6, 2016. This final rule was amended on February 24, 2021 to permit the application of a minimum transfer amount of up to $50,000 for each separately managed account of a legal entity that is a counterparty to a swap dealer or a major swap participant in an uncleared swap transaction and to permit the application of separate minimum transfer amounts for initial margin and variation margin.

In addition, the CFTC has issued a final rule authorizing an exemption from the otherwise applicable mandatory obligation to clear certain types of swap transactions through a derivatives clearing organization and to trade such swaps on a regulated exchange, which exemption applies to swap transactions entered into by commercial end-users in order to hedge commercial risks affecting their business. The mandatory clearing requirement currently applies only to certain interest rate swaps and credit default swaps, but the CFTC could act to impose mandatory clearing requirements for other types of swap transactions. The Dodd-Frank Act also imposes recordkeeping and reporting obligations on counterparties to swap transactions and other regulatory compliance obligations.

All of the above regulations could increase the costs to us of entering into financial derivative transactions to hedge or mitigate our exposure to commodity price volatility and other commercial risks affecting our business. The Volcker Rule provisions of Dodd-Frank may also require our current bank counterparties that engage in financial derivative transactions to spin off some of their derivatives activities to separate entities, which separate entities may not be as creditworthy as the current bank counterparties. Under such rules, other bank counterparties may cease their current business as hedge providers. These changes could reduce the liquidity of the financial derivatives markets thereby reducing the ability of entities like us, as commercial end-users, to have access to financial derivatives to hedge or mitigate our exposure to commodity price volatility.

As a result, Dodd-Frank and any new regulations issued thereunder could significantly increase the cost of derivative contracts (including through requirements to post cash collateral), which could adversely affect our capital available for other purposes, materially alter the terms of future swaps relative to the terms of our existing bilaterally negotiated financial derivative contracts and reduce the availability of derivatives to protect against commercial risks we encounter.

If we reduce our use of derivative contracts as a result of the new requirements, our results of operations may become more volatile and cash flows less predictable, which could adversely affect our ability to plan for and fund capital expenditures. Finally, the legislation was intended, in part, to reduce the volatility of natural gas, NGL and oil prices, which some legislators attributed to speculative trading in derivatives and commodity instruments related to natural gas, NGLs and oil. Our revenues could therefore be adversely affected if a consequence of the legislation and regulations is to lower commodity prices. Any of these consequences could have a material adverse effect on our business, financial condition and results of operations.

***Restrictions on the ability of our third-party operators to obtain water may have a material adverse effect on our business, financial condition and results of operations.***

Water is an essential component of natural gas, NGL and crude oil production during both the drilling and hydraulic fracturing processes. Over the past several years, parts of the country have experienced extreme drought conditions. As a result of this severe drought, some local water districts have begun restricting the use of water subject to their jurisdiction for hydraulic fracturing to protect local water supply. Such conditions may be exacerbated by climate change. If our third-party operators are unable to obtain water to use in their operations from local sources or at commercially reasonable rates, or if our third-party operators are unable to effectively

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utilize flowback water, they may be unable to economically drill for or produce natural gas, NGLs and crude oil from our properties, which could have a material adverse effect on our business, financial condition and results of operations.

**Risks Related to Our Indebtedness** 

***Our use of borrowings to finance our business exposes us to risks.***

We use indebtedness as a means to finance our business strategies, which exposes us to the typical risks associated with using leverage. Upon the closing of this offering, our material indebtedness consists of (i) our Note Purchase Agreement, which will be assigned to WhiteHawk OpCo, paid down to $75.0 million of principal (using a portion of the net proceeds from this offering), and become a second lien obligation, and (ii) our Revolving Credit Facility, providing for an initial aggregate maximum credit amount of $500 million, an initial aggregate elected commitment amount of $150 million and an initial borrowing base of $150 million. See "Description of Material Indebtedness" for further information regarding our outstanding indebtedness. We may continue to strategically utilize long-term indebtedness in connection with the acquisition of additional assets. There can be no assurance that we will have sufficient cash on hand with which to repay any outstanding borrowings. There can also be no assurance that leveraged financing will continue to be available to us on favorable terms or at all. Our stockholders may bear the burden of any increase in our expenses as a result of our use of leverage, including interest expenses. To the extent that we use leverage to finance our assets, our financing costs will reduce cash available for dividends to our stockholders.

***Our failure to comply with the covenants contained in the Note Purchase Agreement and the Revolving Credit Facility, including as a result of events beyond our control, could result in an event of default that could cause repayment of our Senior Notes and borrowings under the Revolving Credit Facility to be accelerated.***

The Note Purchase Agreement (as defined herein) governing our Senior Notes and the Revolving Credit Facility impose, and the agreements governing our future indebtedness may impose, material restrictions on us that limit our operating flexibility, which could harm our long-term interests. These restrictions, subject in certain cases to ordinary course of business and other exceptions, may limit our ability to engage in some transactions, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incurring or guaranteeing additional indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• paying dividends, redeeming capital stock or making other restricted payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making payments in respect of certain second lien/senior notes or junior debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making investments, including acquisitions, loans and advances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entering into burdensome agreements with negative pledge clauses or restrictions on subsidiary distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selling, transferring or otherwise disposing of assets, properties or licenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating liens on assets and capital stock to secure any indebtedness

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• undergoing a change in control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• merging, consolidating, liquidating, or dissolving;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entering into new lines of business or materially altering our business and the business conducted by certain of
our subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entering into transactions with affiliates.

In addition to imposing restrictions on our business and operations, following the completion of this offering and the effectiveness of the A&R Note Purchase Agreement, the Note Purchase Agreement includes covenants relating to financial ratios and tests, and the Revolving Credit Facility will require us to maintain, as of the last

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day of each fiscal quarter (commencing with the first full fiscal quarter ending after the closing of this offering), a consolidated net leverage ratio of no greater than 3.50 to 1.00 and a current ratio of no less than 1.00 to 1.00. The Note Purchase Agreement also requires us to maintain, as of the last day of each fiscal quarter (commencing with the fiscal quarter ending June 30, 2026), a Consolidated Total Net Leverage Ratio of not greater than 3.50 to 1.00, an Asset Coverage Ratio of not less than 1.00 to 1.00, and a Liquidity Percentage of at least 10%. Any future debt instruments may also include such covenants. The Note Purchase Agreement also requires us to make certain mandatory prepayments of the Senior Notes, including from Distributable Free Cash Flow if the Consolidated Total Net Leverage Ratio on a pro forma basis is greater than or equal to 3.00 to 1.00, and prepayments from certain asset sales, casualty events and debt incurrences, subject to certain exceptions. See "Description of Material Indebtedness."

Any failure to comply with the restrictions of our indebtedness, and any subsequent financing agreements, including as a result of events beyond our control, may result in an event of default under these agreements, which in turn may result in defaults or acceleration of obligations under these agreements and other agreements, giving our lenders and other debt holders the right to terminate any commitments they may have made to provide us with further funds and to require us to repay all amounts then outstanding. Our assets and cash flows may not be sufficient to fully repay borrowings under our outstanding debt instruments. In addition, we may not be able to refinance or restructure the payments on the applicable debt. Even if we were able to secure additional financing, it may not be available on favorable terms.

***Our Revolving Credit Facility and our hedging agreements are secured by substantially all of our assets and is subject to an intercreditor agreement, and our Note Purchase Agreement will be a second lien obligation, which could limit our financial and operating flexibility and expose holders of our Senior Notes to increased risk in the event of an enforcement action.***

The Revolving Credit Facility and our obligations under our hedging agreements will be secured by liens on substantially all of WhiteHawk OpCo's properties and assets, the properties and assets of its subsidiaries, and pledges of the equity interests in all of WhiteHawk OpCo's present and future subsidiaries (subject to certain exceptions), and will be guaranteed by substantially all of WhiteHawk OpCo's existing and future direct and indirect subsidiaries, with certain customary or agreed upon exceptions. Upon the closing of this offering, the Note Purchase Agreement is expected to be amended to become a second lien obligation on substantially the same collateral, subject to an intercreditor agreement governing the relative rights and priorities of the first lien secured parties under the Revolving Credit Facility and the second lien secured parties under the Note Purchase Agreement. If we are unable to repay our secured obligations when due, the first lien lenders could foreclose on or otherwise exercise remedies with respect to the collateral prior to the second lien secured parties, and the value of the collateral may not be sufficient to repay all amounts owing under the Revolving Credit Facility and the Note Purchase Agreement. The intercreditor agreement may also restrict the ability of the holders of our Senior Notes to exercise remedies, challenge the first lien liens, or otherwise protect their interests during periods of default or insolvency.

***The borrowing base under our Revolving Credit Facility is subject to periodic redetermination and other automatic reductions, which could require us to repay outstanding borrowings on short notice.***

The borrowing base under the Revolving Credit Facility is subject to semi-annual redeterminations on April 15 and October 15 of each year, commencing October 15, 2026, based on a review of our proved oil and gas reserves, commodity prices and other factors deemed relevant by the administrative agent. In addition, each of WhiteHawk OpCo and the administrative agent (at the direction of the required lenders) may elect to initiate one interim redetermination between scheduled redeterminations, and we may elect an additional interim redetermination in connection with acquisitions of oil and gas properties representing at least 5% of the then-effective borrowing base. The borrowing base will also be automatically reduced (i) by the borrowing base value of any oil and gas properties disposed of or swap agreements terminated if the aggregate value of such dispositions and terminations since the most recent redetermination exceeds 5% of the then-effective borrowing

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base and (ii) upon the issuance of any permitted senior notes, by 25% of the aggregate stated principal amount of such notes. A decrease in commodity prices, downward revisions to our reserve estimates, asset dispositions, swap terminations, senior note issuances or changes in the lenders' lending policies could result in a reduction of our borrowing base. If our outstanding borrowings exceed the redetermined borrowing base, we could be required to repay such excess, which we may be unable to do on a timely basis or at all, and any such mandatory repayment could materially and adversely affect our liquidity, financial condition and results of operations.

***The Revolving Credit Facility will require us to maintain specified commodity hedges, which may limit our ability to benefit from favorable commodity prices and expose us to counterparty and other hedging risks.***

The Revolving Credit Facility will require us, on the last day of each fiscal quarter, to maintain swap agreements hedging a minimum percentage of our reasonably projected production of crude oil and natural gas from proved developed producing reserves, with required percentages and tenors that vary based on our Consolidated Net Leverage Ratio. If our Consolidated Net Leverage Ratio is at least 1.50 to 1.00, we must hedge at least 50% of reasonably projected production for each of the 24 months following such date; if the ratio is at least 1.00 to 1.00 but less than 1.50 to 1.00, we must hedge at least 50% for 12 months and at least 25% for months 13 through 24; and if the ratio is less than 1.00 to 1.00, we must hedge at least 50% for 12 months; provided that if our natural gas production exceeds 90% of our aggregate production, determined on a barrel of oil equivalent basis, we will not be required to hedge our volumes of crude oil. These required hedging levels may prevent us from realizing the full benefit of increases in commodity prices, may require us to enter into or maintain hedges at unfavorable times or prices, and expose us to counterparty credit risk and mark-to-market volatility. A failure to maintain required hedges would result in an event of default under the Revolving Credit Facility.

***The Revolving Credit Facility and the Note Purchase Agreement restrict our ability to pay cash dividends and make other distributions to our stockholders.***

The Revolving Credit Facility will permit us to make cash restricted payments to holders of our equity interests only if, both before and immediately after giving effect to any such restricted payment, (i) no default, event of default or borrowing base deficiency exists, (ii) unused availability is at least 10% of the loan limit, (iii) our Consolidated Net Leverage Ratio is less than or equal to 3.00 to 1.00 on a pro forma basis and (iv) such dividends and distributions are permitted by the Note Purchase Agreement as in effect on the Effective Date. Following the completion of this offering and the effectiveness of the A&R Note Purchase Agreement, we may not make cash restricted payments unless, among other conditions, no default or event of default under the Note Purchase Agreement, or borrowing base deficiency under the Revolving Credit Facility exists, and either (a) unused availability is at least 10% of the loan limit and the Consolidated Total Net Leverage Ratio on a pro forma basis is less than 3.00 to 1.00 or (b) the Consolidated Total Net Leverage Ratio on a pro forma basis is less than 2.00 to 1.00. See "Description of Material Indebtedness." As a result, our ability to pay cash dividends on, or repurchase, our common stock will depend on our continued compliance with these conditions as well as the other covenants in our debt agreements. If we are unable to satisfy these conditions, we may be unable to pay cash dividends at the levels anticipated at the time of this offering, or at all, which could adversely affect the market price of our common stock. See also "—Risks Related to Our Business—We expect to distribute a substantial majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions."

***Despite current indebtedness levels, we may incur substantial additional indebtedness in the future. This could further increase the risks associated with our indebtedness.***

We may incur substantial additional indebtedness in the future, which would increase our debt service obligations and could further reduce cash available to invest in additional assets. The terms of our Notes do not fully prohibit us or our subsidiaries from incurring additional indebtedness, subject to limitations. As of March 31, 2026 and December 31, 2025, we had $231.4 million and $237.7 million of borrowings outstanding under our Senior Notes, respectively. Upon the closing of this offering, we will have borrowing capacity under

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the Revolving Credit Facility of up to an initial aggregate elected commitment amount of $150 million (with an initial aggregate maximum credit amount of $500 million), subject to borrowing base redeterminations and satisfaction of customary borrowing conditions. The Revolving Credit Facility will also allow us to request that the aggregate elected commitments be increased up to the aggregate maximum credit amount, subject to certain conditions. If new debt is added to our debt levels, or any debt is incurred by our subsidiaries, the related risks that we and our subsidiaries currently face could increase.

***Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.***

Our Notes and borrowings under the Revolving Credit Facility bear interest at variable rates and expose us to interest rate risk. See "Description of Material Indebtedness" for further information regarding our Notes and the Revolving Credit Facility. Borrowings under the Revolving Credit Facility will bear interest, at our option, at a rate equal to either (i) an alternate base rate (the greatest of the Prime Rate, the Federal Funds Rate plus 1/2 of 1.00%, or one-month Term SOFR plus 1.00%) plus an applicable margin ranging from 1.50% to 2.50%, or (ii) Term SOFR plus an applicable margin ranging from 2.50% to 3.50%, in each case based on utilization of the borrowing base, and the unused portion of the Revolving Credit Facility will be subject to a commitment fee ranging from 0.375% to 0.50%. Term SOFR will be subject to a floor of 2.50% prior to the discharge of the Senior Notes and 0.00% thereafter. If interest rates increase, our interest payments would increase even though the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, would correspondingly decrease. Although we may enter into agreements limiting our exposure to higher interest rates, these agreements may not be effective.

**Risks Related to this Offering and Ownership of Our Class A Common Stock** 

***As an emerging growth company within the meaning of the Securities Act, we may utilize certain modified disclosure requirements, and we cannot be certain if these reduced requirements will make shares of our Class A common stock less attractive to investors.***

We are an emerging growth company, and, for as long as we continue to be an emerging growth company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies," including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• presenting only two years of audited financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exemption from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure about our executive compensation arrangements in our periodic reports, proxy statements and
registration statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemptions from the requirements of holding non-binding advisory votes on
executive compensation or golden parachute arrangements.

We have in this prospectus utilized, and we may in future filings with the SEC continue to utilize, the modified disclosure requirements available to emerging growth companies. As a result, our stockholders may not have access to certain information they may deem important.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can utilize the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to not "opt out" of this exemption from complying with new or revised accounting standards, and, therefore, we are permitted to adopt new or revised accounting standards at the time private companies adopt the new or revised accounting standards

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and are permitted to do so until such time that we either (i) irrevocably elect to "opt out" of such extended transition period or (ii) no longer qualify as an emerging growth company. As a result, we will not be subject to the same new or revised accounting standards at the same time as other public companies that are not emerging growth companies or those that have opted out of using such extended transition period, which may make comparison of our financial statements with such other public companies more difficult.

Following this offering, we will remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the completion of our initial public offering unless, prior to that time, we have more than $1.235 billion in annual gross revenue, have a market value for our Class A common stock held by non-affiliates of more than $700 million as of the last day of our second fiscal quarter of the fiscal year and a determination is made that we are deemed to be a "large accelerated filer," as defined in Rule 12b-2 promulgated under the Exchange Act, or issue more than $1.0 billion of non-convertible debt over a three-year period, whether or not issued in a registered offering.

***Delaware law and anti-takeover provisions in our governing documents, as well as our existing and future debt agreements, could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current directors and may deprive our investors of the opportunity to receive a premium for their shares.***

Our amended and restated certificate of incorporation, amended and restated bylaws and Delaware law contain provisions that will have the effect of rendering more difficult, delaying or preventing a third party from, acquiring control of us without the approval of our board of directors. Among other things, these provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have terms that have the same effect as DGCL Section 203;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide for a classified board of directors with staggered three-year terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorize the issuance of "blank check" preferred stock, the terms of which are established by our
board of directors without any need for action by stockholders, that could be used to implement a stockholder rights plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• do not permit stockholders to call special meetings of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• do not permit stockholders to act by written consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish advance notice procedures, which apply for stockholders to nominate candidates for election to our
board of directors or for proposing matters that can be acted on by stockholders at stockholder meetings.

Further, documents governing our indebtedness impose limitations on our ability to enter into change of control transactions and we anticipate that any documents governing our future indebtedness will also impose such limitations. The occurrence of a change of control transaction could constitute an event of default thereunder and permit acceleration of the indebtedness, thereby impeding our ability to enter into certain transactions.

The foregoing factors could discourage, delay or prevent a transaction involving a change in control of the Company, which could limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock and could also affect the price that some investors are willing to pay for Class A common stock. See "Description of Capital Stock."

***We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by distributions and other payments from OpCo and our operating subsidiaries our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant.***

After the consummation of this offering, we intend to pay our stockholders regular dividends. However, the payment of dividends and other distributions is at the discretion of our board of directors and our board of

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directors may, in its discretion, increase, decrease or eliminate the payment of dividends. Our ability to pay dividends depends on many factors, including, but not limited to, financial conditions, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness (including those governing our Senior Notes and the Revolving Credit Facility), any preferred stock, general business conditions and any other factors that our board of directors may deem relevant in making such a determination. Additionally, because we have no independent means of generating revenue or cash flow and we anticipate that the only source of our earnings will be cash distributions from our operating subsidiaries, our ability to pay dividends is dependent on the ability of our operating subsidiaries to make distributions to OpCo and the ability of OpCo to make distributions to us in an amount sufficient to cover such obligations. In particular, our ability to pay dividends is limited by covenants governing our Senior Notes and Revolving Credit Facility and may be further restricted by the terms of any future debt or preferred securities. See "Description of Material Indebtedness." Furthermore, our ability to declare and pay dividends to our stockholders is likewise subject to Delaware law (which may limit the amount of funds available for dividends). While we do not currently believe that these restrictions will impair our ability to continue to pay regular cash dividends, there can be no assurance that we will not need or determine to reduce or eliminate the payment of dividends on our Class A common stock in the future. See "Dividend Policy." See also "—Risks Related to Our Business—We expect to distribute a substantial majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions".

***We may issue preferred stock whose terms could adversely affect the voting power or value of our Class A common stock.***

Our amended and restated certificate of incorporation will authorize our board of directors to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations, preferences, limitations and relative rights, including preferences over our Class A common stock respecting dividends and distributions, as our board of directors may determine. In addition, following this offering, we expect to have shares of Series B preferred stock outstanding. See "Description of Capital Stock." The terms of one or more classes or series of our preferred stock could adversely impact the voting power or value of our Class A common stock. For example, we might grant holders of a class or series of our preferred stock the right to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of our preferred stock could affect the residual value of our Class A common stock.

***No market currently exists for our Class A common stock and we cannot assure you that an active market will develop for such stock.***

Prior to this offering, there has been no public market for our Class A common stock. The initial public offering price for our Class A common stock has been determined through negotiations among us and the representatives of the underwriters and may not be indicative of the market price of our Class A common stock after this offering or to any other established criteria of the value of our business. If you purchase shares of our Class A common stock, you may not be able to resell those shares at or above the initial public offering price. We cannot predict the extent to which investor interest in us will lead to the development of an active trading market on the NYSE or otherwise or how liquid that market might become. An active public market for our Class A common stock may not develop or be sustained after this offering. If an active public market does not develop or is not sustained, it may be difficult for you to sell your shares of Class A common stock at a price that is attractive to you or at all.

***We cannot assure you that our stock price will not decline or not be subject to significant volatility after this offering.***

The market price of shares of Class A common stock could be subject to significant fluctuations after this offering. The price of our stock may change in response to fluctuations in our results of operations in future periods and also may change in response to other factors, including factors specific to companies in our industry,

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many of which are beyond our control. As a result, our share price may experience significant volatility and may not necessarily reflect the value of our expected performance and may cause our stockholders to incur losses.

Among the factors that could affect our stock price are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws or regulations applicable to our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculation about our business or industry in the press or the investment community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price and volume fluctuations in the overall stock market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• volatility in the market price and trading volume of companies in our industry or companies that investors
consider comparable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• share price and volume fluctuations attributable to inconsistent trading levels of our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of Class A common stock by us or our significant stockholders, officers and directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the expiration or waiver of the lock-up provision contained in the lock-up agreements and our amended and restated certificate of incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development and sustainability of an active trading market for shares of our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the public's response to press releases or other public announcements by us or others, including our
filings with the SEC, announcements relating to litigation or changes to our key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effectiveness of our internal controls over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations in our quarterly or annual results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our earnings estimates (if provided) or differences between our actual results of operations and those
expected by investors and analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the contents of published research reports about us or our industry or the failure of securities analysts to
cover our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions by institutional stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our capital structure, such as future issuances of debt or equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our entry into new markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax developments in the United States or other markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic actions by us or our competitors, such as acquisitions, significant contracts, dispositions, strategic
relationships, joint ventures, capital commitments or restructurings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles.

Further, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations can be unrelated or disproportionate to the operating performance of those companies. In addition, the stock prices of many energy companies have experienced wide fluctuations that have often been unrelated to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, may cause the market price of shares of our Class A common stock to decline.

We cannot assure you that you will be able to resell any of your shares of Class A common stock at or above the initial public offering price. The initial public offering price will be determined by negotiations between us and the representatives of the underwriters and may not be indicative of prices that will prevail in the trading market,

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if a trading market develops, after this offering. If the market price of shares of Class A common stock after this offering does not exceed the initial public offering price, you may not realize any return on your investment and may lose some or all of your investment.

***Our amended and restated certificate of incorporation will designate the Court of Chancery of the State of Delaware and the federal district courts of the United States as the sole and exclusive forums for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.***

These choice of forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, employees or other stockholders, which may discourage such lawsuits. While the Delaware courts have determined that such choice of forum provisions are facially valid, a stockholder may nevertheless seek to bring an action in a venue other than those designated in the exclusive forum provisions. In such instance, we would expect to assert the validity and enforceability of our exclusive forum provisions, which may require significant additional costs associated with resolving such action in other jurisdictions, and there can be no assurance that the provisions will be enforced by a court in those other jurisdictions. If a court were to find that the exclusive forum provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur further significant additional costs associated with resolving the dispute in other jurisdictions, which could have a material adverse effect on our business, financial condition and results of operations.

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***Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.***

Our amended and restated certificate of incorporation and amended and restated bylaws will provide that we will indemnify our directors and officers, in each case, to the fullest extent permitted by Delaware law. Pursuant to our certificate of incorporation, our directors will not be liable to us or any stockholders for monetary damages for any breach of fiduciary duty, except (i) for acts that breach his or her duty of loyalty to us or our stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, (iii) pursuant to Section 174 of the DGCL, which provides for liability of directors for unlawful payments of dividends of unlawful stock purchase, or (iv) for any transaction from which the director derived an improper personal benefit. Our amended and restated bylaws will also require us, if so requested, to advance expenses that such director or officer incurred in defending or investigating a threatened or pending action, suit or proceeding, provided that such person will return any such advance if it is ultimately determined that such person is not entitled to indemnification by us. Any claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

***As a public reporting company, we will be subject to rules and regulations established from time to time by the SEC regarding our disclosure controls and procedures and internal control over financial reporting. If we fail to establish and maintain effective disclosure controls and procedures and internal control over financial reporting, we may not be able to accurately report our financial results, or report them in a timely manner.***

As a public reporting company, we will be subject to the rules and regulations established from time to time by the SEC and the national securities exchange on which our securities are listed. These rules and regulations require, among other things, that we establish and periodically evaluate procedures with respect to our internal control over financial reporting. Reporting obligations as a public company are likely to place a considerable strain on our financial and management systems, processes and controls, as well as on our personnel.

In addition, upon becoming a public company, we will be required to comply with the Sarbanes-Oxley Act, which requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting and, pursuant to Section 404 of the Sarbanes-Oxley Act, furnish a report by management on the effectiveness of our internal control over financial reporting in our second annual report. However, as discussed above, for as long as we are an emerging growth company under the JOBS Act, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404. We could be an emerging growth company for up to five years. An independent assessment of our internal control over financial reporting could detect problems that our management's assessment might not. The process of reviewing and improving our internal controls is both costly and challenging and may also require substantial attention from our management team, which could negatively impact other matters that are important to our business.

Although management did not, and was not required to, conduct a formal assessment of internal control over financial reporting as of December 31, 2025, as a result of the Misstatement and the Restatement, the Company identified certain material weaknesses in its internal control over financial reporting. As a result of the material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. Management will be implementing changes to strengthen our internal controls and remediate the material weaknesses. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting" for additional information related to the material weaknesses in internal control over financial reporting and our related remediation activities.

If our senior management is unable to conclude that we have effective disclosure controls and procedures and internal control over financial reporting, or to certify the effectiveness of such controls, and our independent registered public accounting firm cannot render an unqualified opinion on management's assessment and the

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effectiveness of our internal control over financial reporting at such time as it is required to do so and material weaknesses in our internal control over financial reporting are identified, we could be subject to regulatory scrutiny, a loss of public and investor confidence and litigation from investors and stockholders, which could have a material adverse effect on our business and our stock price. In addition, if we do not maintain adequate financial and management personnel, processes and controls, we may not be able to manage our business effectively or accurately report our financial performance on a timely basis, which could cause a decline in the price of shares of Class A common stock and have a material adverse effect on our business, financial condition and results of operations. Failure to comply with the Sarbanes-Oxley Act could potentially subject us to sanctions or investigations by the SEC, the exchange upon which our securities are listed or other regulatory authorities, which would require additional financial and management resources.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.***

The trading market for our Class A common stock will be influenced by the research and reports that industry or securities analysts publish about us or our business. We do not currently have and may never obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of us, the trading price for our Class A common stock would be negatively impacted. If we obtain securities or industry analyst coverage and if one or more of these analysts cease coverage of our company or fails to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline. Moreover, if our results of operations do not meet the expectations of the investor community, or one or more of the analysts who cover our company downgrade our stock, our stock price could decline. As a result, you may not be able to sell shares of our Class A common stock at prices equal to or greater than the initial public offering price.

***Becoming a public company will significantly increase our compliance costs and require the expansion and enhancement of a variety of financial and management control systems and infrastructure and the hiring of additional qualified personnel.***

Prior to this offering, we have not been subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act or the other rules and regulations of the SEC, or any securities exchange relating to public companies. We are working with our legal, independent accounting and financial advisors to identify those areas in which changes should be made to our financial and management control systems to manage our growth and our obligations as a public company. These areas include financial planning and analysis, tax, corporate governance, accounting policies and procedures, internal controls, internal audit, disclosure controls and procedures and financial reporting and accounting systems. We have made, and will continue to make, significant changes in these and other areas and have begun incurring expenses in preparation for becoming a public company. The expenses that will be required in order to adequately prepare for being, and those required to operate as, a public company could be material. Compliance with the various reporting and other requirements applicable to public companies will also require considerable time and attention of management and we could be required to hire additional qualified personnel into our existing finance, legal, human resources and operations departments to meet such compliance needs.

***The requirements of being a public company may strain our resources, divert management's attention and affect our ability to attract and retain qualified board members and officers, which may divert from our business operations.***

As a public company, we are subject to the reporting requirements of the Exchange Act, the listing requirements of the national securities exchange on which our securities are listed and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, strain our resources, make some activities more difficult, time-consuming or costly and increase demand on our systems, resources, management and employees. As a public company, we will be required to enhance our

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investor relations, legal, financial and tax reporting, internal audit, legal, governance, investor relations and corporate communications functions. The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and results of operations and maintain effective disclosure controls and procedures and internal control over financial reporting. To maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight may be required. As a result, management's attention may be diverted from other business concerns, which could have a material adverse effect on our business, financial condition and results of operations.

We also expect that being a public company will make it more expensive for us to obtain director and officer liability insurance, and we may be required to choose between reduced coverage and substantially higher costs in order to obtain coverage. These factors could make it more difficult for us to attract and retain qualified executive officers and members of our board of directors, particularly to serve on our audit committee and compensation committee.

***Future sales and issuances of our Class A common stock or rights to purchase our Class A common stock (or other equity securities or securities convertible into our Class A common stock), or the perception that future sales by us or our other existing stockholders in the public market following this offering could cause dilution of the percentage of ownership of our stockholders, could cause the market price for our Class A common stock to decline.***

After this offering, the sale of shares of our Class A common stock in the public market, or the perception that such sales could occur, could harm the prevailing market price of shares of our Class A common stock. These sales, or the possibility that these sales may occur, also might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.

Upon consummation of this offering, we will have a total of shares of our Class A common stock outstanding (or shares if the underwriters exercise in full their option to purchase additional shares). Of the outstanding shares, the shares sold in this offering (or shares if the underwriters exercise in full their option to purchase additional shares) will be freely tradable without restriction or further registration under the Securities Act, other than any shares held by our affiliates. Any shares of our Class A common stock held by our affiliates will be eligible for resale pursuant to Rule 144 under the Securities Act, subject to the volume, manner of sale, holding period and other limitations of Rule 144.

We and our directors and executive officers will enter into lock-up agreements pursuant to which we and they will be subject to certain restrictions with respect to the offer, sale or disposition or hedge of any of our securities for a period of 180 days following the date of this prospectus. Additionally, our amended and restated certificate of incorporation will provide that, subject to certain exceptions, all of the shares of Class A common stock held by the Legacy Common Stock Investors may not be sold, pledged, transferred or otherwise disposed of for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering. Upon the expiration of the lock-up restrictions, shares held by our directors, executive officers and the Legacy Common Stock Investors will be eligible for resale in the public market subject, in the case of shares held by our affiliates, to the volume, manner of sale, holding period and other limitations of Rule 144. The representatives of the underwriters may, in their sole discretion and at any time without notice, release all or any portion of the shares or securities subject to any such lock-up restrictions. See "Underwriting" and "Shares Eligible for Future Sale" for a description of these lock-up restrictions.

In addition, in connection with this offering, we intend to enter into the Registration Rights Agreement with certain of our Subsequent Continuing Equity Owners. The Registration Rights Agreement will provide such holders with certain registration rights in respect of shares of our Class A common stock held by them, subject to certain conditions. Registration of any of these outstanding shares of Class A common stock would result in such

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shares becoming freely tradable without compliance with Rule 144 upon effectiveness of the registration statement. Such Subsequent Continuing Equity Owners party to the Registration Rights Agreement will, subject to the terms of the agreement, determine the timing and amount of sales of their Class A common stock, and such sales could be executed at a time or times that otherwise may not align with our interests and the interests of our other stockholders. See "Certain Relationships and Related Party Transactions" and "Shares Eligible for Future Sale" for a description of these registration rights.

In connection with this offering, we intend to file a registration statement with the SEC on Form S-8 providing for the registration of shares of our Class A common stock issued or reserved for issuance under new and existing equity incentive plans. Subject to the satisfaction of vesting conditions and the expiration of lock-up restrictions, shares issued pursuant to or registered under the registration statement on Form S-8 will be available for resale immediately in the public market without restriction.

We cannot predict the size of future issuances of our Class A common stock or the effect, if any, that future issuances and sales of shares of our Class A common stock will have on the market price of our Class A common stock. In the future, we may issue securities in connection with investments, acquisitions or capital raising activities. In particular, the number of shares of our Class A common stock issued in connection with an investment or acquisition, or to raise additional equity capital, could constitute a material portion of our then-outstanding shares of our Class A common stock. Any such issuance of additional securities in the future, or the perception that such issuances could occur, may result in additional dilution to you, or may adversely impact the price of our Class A common stock.

***If you purchase shares of our Class A common stock sold in this offering, you will incur immediate and substantial dilution.***

If you purchase Class A common stock in this offering, you will pay more for your shares than the amounts paid by existing stockholders for their shares. As a result, you will incur immediate dilution of $11.53 per share, representing the difference between the assumed initial public offering price of $26.00 per share (the midpoint of the estimated initial public offering price range set forth on the cover of this prospectus) and our pro forma net tangible book value (deficit) per share after giving effect to this offering. See "Dilution."

***Increases in interest rates may cause the market price of our Class A common stock to decline.***

An increase in interest rates may cause a corresponding decline in demand for equity investments in general, and in particular, for yield-based equity investments such as our Class A common stock. Any such increase in interest rates or reduction in demand for our Class A common stock resulting from other investment opportunities may cause the trading price of our Class A common stock to decline.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

The information in this prospectus includes "forward-looking statements." All statements, other than statements of historical fact, included in this prospectus regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this prospectus, the words "may," "could," "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions and the negative of such words and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Such statements may be influenced by factors that could cause actual outcomes and results to differ materially from those projected. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading "Risk Factors" included in this prospectus.

The following important factors, in addition to those discussed elsewhere in this prospectus, could affect the future results of the energy industry in general, and our company in particular, and could cause actual results to differ materially from those expressed in such forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our revenues are primarily derived from mineral and royalty payments that are based on the price of natural gas,
NGL and oil which is subject to volatility due to factors beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lower natural gas, NGL and oil prices or negative adjustments of natural gas, NGL and oil prices may result in
significant impairment charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our derivative activities may limit the cash flows received from natural gas and oil sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development of our properties relies exclusively on our third-party operators and these operators may fail to
develop our existing inventory of mineral and royalty acreage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• drilling for and producing natural gas, NGLs and oil are high-risk activities with many uncertainties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our third-party operators may fail to drill sufficient wells to hold acreage before lease expiration which may
result in loss of lease and prospective drilling opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may experience delays in the receipt of royalty payments and may not be able to terminate leases with
defaulting lessees if our third-party operators declare bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may incur losses as a result of title defects or other issues in the properties we own;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited number of third-party operators currently generate a significant portion of our revenue and accounts
receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the substantial majority of our business is concentrated in the Appalachian and Haynesville Basins, making us
vulnerable to risks associated with such geographic concentration of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to risks related to our wells where we are a non-operating working interest owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future success depends on replacing reserves through acquisitions and there may be constraints in our ability
to finance acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have experienced significant business and portfolio growth in a short time, and our significant growth rates
and financial results may not be sustainable or indicative of future financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any acquisition of additional mineral and royalty interests that we complete will be subject to substantial
risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to retain our key personnel or attract additional qualified personnel could negatively affect our
business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our estimated proved reserves are based on many assumptions that may prove to be inaccurate;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our identified drilling locations are susceptible to uncertainties that could materially alter the occurrence or
timing of their drilling and there is no guarantee that our estimates will be materially consistent with actual drilling activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we rely on our third-party operators, other third parties and government databases for information regarding our
assets and such information may be incorrect, incomplete or lost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be subject to information technology system failures, network disruptions, cyber-attacks or other breaches
in data security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declining general economic, business or industry conditions, which could have a material adverse effect on our
business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our industry is highly competitive, and competitive pressures could negatively affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exported liquefied natural gas could fail to be a competitive source of energy for the United States or
international markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our growth strategy is partly dependent upon the continued expansion of electricity demand driven by AI data
center development and expectations regarding increased demand may not materialize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the unavailability, high cost or shortages of equipment, raw materials, supplies or personnel for our third-party
operators related to developing and operating our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the marketability of natural gas, NGLs and crude oil is dependent on the availability of equipment and
transportation facilities that is outside of our and our third-party operators' control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our third-party operators are subject to significant governmental regulations, and governmental authorities can
delay or deny permits and approvals or change legal requirements governing our business, which could restrict their operations, increase costs of conducting our business, and delay our implementation of, or cause us to change, our business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development and enactment of climate change legislation as well as increased attention to sustainability may
impact our business or the business of our third-party operators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future legislative or regulatory changes may have a material adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our use of borrowings to finance our business exposes us to risks and any future indebtedness we may incur could
further increase the risks associated with our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delaware law and anti-takeover provisions in our governing documents, to be adopted upon the consummation of this
offering, may have the effect of delaying or preventing a change of control or changes in our management and may deprive our investors of the opportunity to receive a premium for their shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to pay regular dividends to our stockholders may be limited by our financial condition, results of
operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirements of being a public company may strain our resources, divert management's attention and
affect our ability to attract and retain qualified board members and officers.

Should one or more of the risks or uncertainties described in this prospectus occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking

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statements we make in this report are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved or occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Reserve engineering is a process of estimating underground accumulations of natural gas and oil that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas and oil that are ultimately recovered.

All forward-looking statements, expressed or implied, included in this prospectus are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this prospectus.

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**OUR ORGANIZATIONAL STRUCTURE** 

In connection with the consummation of the offering, we will consummate the Transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will amend and restate our certificate of incorporation (our "amended and restated certificate of
incorporation") to, among other things, (i) change our name to "WhiteHawk Minerals Corp."; (ii) provide for the Common Stock Reclassification; (iii) provide for an adjustment to the number of authorized shares such
that our authorized capital stock shall consist of 250,000,000 shares of Class A common stock, par value $0.0001 per share, 100,000,000 shares of Class B common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock,
par value $0.0001 per share; (iv) authorize our board of directors to establish and issue one or more series of preferred stock from time to time and to fix the rights, preferences, privileges and restrictions thereof; (v) provide for the
creation of Class B common stock in connection with our anticipated Up-C structure, with shares of Class B common stock to be issued to the Management Contributor, with each share of Class B common stock entitled to one vote per share
and no economic rights; and (vi) establish that Legacy Common Stock Investors are prohibited from selling their Class A common stock or related securities for 365 days following the consummation of this offering, or such shorter period as
determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• WhiteHawk OpCo will enter into an amended and restated limited partnership agreement (the "OpCo
Agreement") to, among other things, (i) appoint OP GP as the sole general partner of WhiteHawk OpCo with the authority to manage and control the business and affairs of WhiteHawk OpCo, (ii) authorize the issuance of OpCo Interests to us
in exchange for the interests we own in WhiteHawk OpCo prior to this offering as well as the proceeds from this offering, (iii) provide the Subsequent Continuing Equity Owners with the right to require WhiteHawk OpCo to redeem their OpCo
Interests for, at our election (determined solely by our independent directors who are disinterested), cash or newly-issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments), (iv) provide that, in
connection with any redemption or exchange of OpCo Interests, if applicable, a corresponding number of shares of Class B common stock held by the redeeming or exchanging Continuing Equity Owner will automatically be transferred to us for no
consideration and canceled, and (v) authorize the issuance to us of such number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of our Series B preferred stock outstanding upon the consummation of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will enter into the Registration Rights Agreement with certain Subsequent Continuing Equity Owners, as further
described in "Certain Relationships and Related Party Transactions;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in connection with and in order to effectuate the Internalization, the Contribution Agreement will be entered
into by the parties thereto, pursuant to which, among other things, OpCo will acquire all of the outstanding equity interests in ManagementCo from the Management Contributor in exchange for OpCo Interests and shares of Class B common stock.
Prior to the closing of this offering, ManagementCo, as our external manager, provided certain management, acquisition, disposition and oversight functions with respect to us and WhiteHawk OpCo. As a result of the Internalization, ManagementCo will
become a wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will issue 6,925,000 shares of our Class A common stock to the purchasers in this offering (or
7,963,750 shares if the underwriters exercise in full their option to purchase additional shares of Class A common stock) in exchange for net proceeds of approximately $167.4 million (or approximately $192.6 million if the
underwriters exercise in full their option to purchase additional shares of Class A common stock) based upon an assumed initial public offering price of $26.00 per share (which is the midpoint of the estimated price range set forth on the cover
page of this prospectus), less the underwriting discount.

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Immediately following the consummation of the Transactions (including this offering):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will be a holding company and our principal asset will consist of OpCo Interests we acquire or are otherwise
issued directly from WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as the sole member of OP GP, the sole general partner of WhiteHawk OpCo, we will control the business and affairs
of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own, directly or indirectly, 22,221,579 OpCo Interests, representing approximately 85.6% of the common
economic interest in WhiteHawk OpCo (or 23,260,329 OpCo Interests, representing approximately 86.1% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of Class A
common stock) (based on outstanding OpCo Interests and excluding Series B preferred units);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own a number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of
Series B Preferred Stock outstanding after the consummation of the Transactions, representing 100% of the preferred units of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will no longer have any shares of Series D preferred stock outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Management Contributor will own (i) 3,750,000 OpCo Interests, representing approximately 14.4% of the
common economic interest in WhiteHawk OpCo (or 3,750,000 OpCo Interests, representing approximately 13.9% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of
Class A common stock) (based on outstanding OpCo Interests and excluding Series B preferred units) and (ii) 3,750,000 shares of our Class B common stock, representing approximately 14.4% of the combined voting power of all of our
common stock (or 3,750,000 shares of our Class B common stock, representing approximately 13.9% if the underwriters exercise in full their option to purchase additional shares of Class A common stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the purchasers in this offering will own (i) 6,925,000 shares of our Class A common stock (or
7,963,750 shares of our Class A common stock if the underwriters exercise in full their option to purchase additional shares of Class A common stock), representing approximately 26.7% of the combined voting power of all of our common
stock and 31.2% of the economic interest in us (or approximately 29.5% of the combined voting power and 34.2% of the economic interest if the underwriters exercise in full their option to purchase additional shares of Class A common stock), and
(ii) through our ownership of OpCo Interests, indirectly will hold approximately 22.8% of the common economic interest in WhiteHawk OpCo (or approximately 25.4% of the common economic interest in WhiteHawk OpCo if the underwriters exercise in full
their option to purchase additional shares of Class A common stock) (based on outstanding OpCo Interests and excluding Series B preferred units).

Following the first anniversary of the closing of the Internalization, the Management Contributor expects to distribute the OpCo Interests and shares of Class B common stock received by the Management Contributor in connection with the Internalization to the Subsequent Continuing Equity Owners, at which time the Subsequent Continuing Equity Owners will execute a joinder to the OpCo Agreement. Following the consummation of such distribution and execution of such joinder, the Subsequent Continuing Equity Owners may exchange at each of their respective options, in whole or in part from time to time, their OpCo Interests (together with a corresponding number of shares of Class B common stock), for, at our election (determined solely by our independent directors (within the meaning of the NYSE rules) who are disinterested), cash or newly-issued shares of our Class A common stock as described in "Certain Relationships and Related Party Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions." Unless otherwise indicated, this prospectus does not give effect to the distribution of OpCo Interests or shares of Class B common stock by the Management Contributor to the Subsequent Continuing Equity Owners.

The foregoing description of the Transactions does not give effect to OpCo Interests or shares of our Class B common stock that may be issued as a part of the Earnout Amount (as defined herein), as more fully described in the section titled "Certain Relationships and Related Party Transactions—Internalization—Earnout."

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Following the Transactions, including this offering, we will control the management of WhiteHawk OpCo through our ownership of OP GP. As a result, we will consolidate WhiteHawk OpCo in our consolidated financial statements.

Unless otherwise indicated, this prospectus assumes the shares of Class A common stock are offered at $26.00 per share (the midpoint of the estimated price range set forth on the cover page of this prospectus). For more information regarding the impact of the initial offering price on the share information included throughout this prospectus, see "The Offering."

Our corporate structure following this offering, as described below, is an Up-C structure. The Up-C structure will allow the Continuing Equity Owners to retain their equity ownership in WhiteHawk OpCo following the Transactions and to continue to realize tax benefits associated with owning interests in an entity that is treated as a partnership, or "flow-through" entity, for U.S. federal income tax purposes. Investors in this offering will, by contrast, hold their equity ownership in us, a Delaware corporation that is a domestic corporation for U.S. federal income tax purposes, in the form of shares of Class A common stock. One of the tax benefits to the Continuing Equity Owners associated with this structure is that future taxable income of WhiteHawk OpCo that is allocated to the Continuing Equity Owners will be taxed on a flow-through basis and, therefore, will not be subject to corporate taxes at the entity level. Moreover, the Up-C structure permits the Continuing Equity Owners to defer the recognition of taxable gain on their OpCo Interests until they elect to exercise their redemption right (rather than recognizing such gain at the time of this offering). Additionally, because the Subsequent Continuing Equity Owners may at their election have their OpCo Interests redeemed by WhiteHawk OpCo (or at our option, directly exchanged by us) for newly issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments, including for stock splits, stock dividends, and reclassifications) or, at our option, for cash, the Up-C structure also provides the Subsequent Continuing Equity Owners with potential liquidity that holders of non-publicly traded limited liability companies are not typically afforded. Upon any such redemption or exchange of OpCo Interests for shares of Class A common stock, the Company may benefit from certain tax attributes, including potential increases in tax basis that may reduce the amount of tax that would otherwise be payable by us. In connection with any such redemption or exchange of OpCo Interests, a corresponding number of shares of Class B common stock held by the relevant Continuing Equity Owner will automatically be transferred to us for no consideration and be canceled.

For more information regarding the Transactions and our structure, see "Our Organizational Structure."

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**Organizational Structure** 

The diagram below depicts our organizational structure after giving effect to the Transactions, including this offering and proposed use of proceeds, assuming no exercise by the underwriters of their option to purchase additional shares of Class A common stock and does not give effect to the issuance of any OpCo Interests or shares of Class B common stock in respect of the Earnout Amount.

![LOGO](g86452g06u13.jpg)

(1) Legacy Common Stock Investors will be prohibited from selling their Class A common stock or related securities
for up to 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering.

(2) We intend to use a portion of the proceeds from this offering to redeem any shares of Series D preferred
stock outstanding. See "Use of Proceeds." To the extent the proceeds of offering are insufficient to redeem the total aggregate principal amount of Series D preferred stock outstanding, the Company intends to use cash on hand to
fully redeem the total aggregate principal amount of Series D preferred stock outstanding. As a result, following this offering, the only outstanding preferred stock outstanding will be the Series B preferred stock.

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**USE OF PROCEEDS** 

We estimate that the net proceeds to us from our sale of 6,925,000 shares of Class A common stock in this offering will be approximately $160.9 million, after deducting underwriting discounts and commissions and estimated expenses payable by us in connection with this offering. The underwriters also have an option to purchase up to an additional 1,038,750 shares of Class A common stock from us. We estimate that the net proceeds to us, if the underwriters exercise their right to purchase the maximum of 1,038,750 additional shares of Class A common stock from us, will be approximately $186.1 million, after deducting underwriting discounts and commissions and estimated expenses payable by us in connection with this offering. This assumes a public offering price of $26.00 per share of Class A common stock, which is the midpoint of the price range set forth on the cover of this prospectus.

We intend to use the net proceeds from this offering, as well as cash on hand, as follows: (i) approximately $162.7 million to prepay, in whole or in part, the outstanding principal of our Senior Notes (including a make-whole amount of approximately $14.6 million and a prepayment premium of approximately $3.0 million to the existing holders, in each case as required under the terms of our existing Note Purchase Agreement), (ii) approximately $37.0 million for the redemption of all of the outstanding shares of our Series D preferred stock, and (iii) the remainder for other general corporate purposes.

We are a holding company and our only assets after consummation of this offering will be our ownership of OpCo Interests and membership units in OP GP. Accordingly, we intend to use the gross proceeds from this offering to purchase newly issued OpCo Interests from WhiteHawk OpCo at a price per unit equal to the initial public offering price per share of Class A common stock, less estimated underwriting discounts and commissions. In the event the underwriters exercise their option to purchase additional shares of Class A common stock, we intend to use any such additional proceeds in the same manner.

As of March 31, 2026, we had $231.4 million of principal outstanding under our Senior Notes. Prior to giving effect to the Amended and Restated Note Purchase Agreement, our Senior Notes bear interest (a) for any Senior Note (other than an ABR Note), the Adjusted Term SOFR Rate plus 6.50%, or (b) for an ABR Note, ABR plus 5.50%, which, for the three months ended March 31, 2026, resulted in a weighted average interest rate of 10.30% per annum. Prior to giving effect to the Amended and Restated Note Purchase Agreement, the Senior Notes mature on June 23, 2030. After giving effect to the Amended and Restated Note Purchase Agreement, our Senior Notes bear interest (a) for any Senior Note (other than an ABR Note), the Adjusted Term SOFR Rate plus 4.75%, or (b) for an ABR Note, ABR plus 3.75%. After giving effect to the Amended and Restated Note Purchase Agreement, the Senior Notes mature on May 20, 2031.

Assuming no exercise of the underwriters' option to purchase additional shares, a $1.00 increase (decrease) in the assumed initial public offering price of $26.00 per share (the midpoint of the price range set forth on the cover of this prospectus) would increase (decrease) the net proceeds to us from this offering by $6.9 million, assuming the number of shares offered by us, as set forth on the cover of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated expenses payable by us.

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**DIVIDEND POLICY** 

We initially intend to make a significant portion of our Cash Available for Distribution available for dividends. Holders of our Class B common stock are not entitled to participate in any dividends declared by our Board. We aim to balance the return of capital to investors with the selective allocation of capital toward acquisitions that we believe will be accretive to stockholder value while preserving a strong balance sheet through varying commodity price environments. In order to effect this approach, we intend to return capital to our stockholders through quarterly dividends, after retaining cash for debt service, our working capital needs and acquisition activities.

While we expect to pay regular dividends in accordance with this financial philosophy, we have not adopted a formal written dividend policy to pay a fixed amount of cash regularly or to pay any particular amount based on the achievement of, or derivable from, any specific financial metrics, including Cash Available for Distribution. The actual amount of any dividends we pay may fluctuate depending on our cash flow needs, which may be impacted by potential acquisition opportunities and the availability of financing alternatives, the need to service any indebtedness or other liquidity needs and general industry and business conditions, including the impact of commodity prices and the pace of the development of our properties by our third-party operators. Our payment of dividends will be at the sole discretion of our board of directors, which may change our dividend philosophy at any time. Our board of directors will take into account:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and business conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial condition and operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our cash flows from operations and current and anticipated cash needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal, tax, regulatory and contractual restrictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such other factors as our board of directors may deem relevant.

Additionally, our ability to pay dividends is restricted by covenants governing our Senior Notes and the Revolving Credit Facility. For a description of the covenants governing our Senior Notes and those contained in the Revolving Credit Facility that restrict our ability to pay dividends, see "Description of Material Indebtedness." Additionally, our ability to pay dividends may be restricted by the terms of any future credit agreement or any future debt or preferred equity securities of us. Therefore, there can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the amount of any such dividends. See "Risk Factors—Risks Related to Our Business—We expect to distribute a substantial majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions" and "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant."

In addition, our ability to maintain or increase per-share dividends may be affected by the earnout provisions of the Contribution Agreement entered into in connection with the Internalization. If we achieve certain Adjusted EBITDA targets during the three Earnout Years ending June 30, 2027, June 30, 2028 and June 30, 2029, additional OpCo Interests (and a corresponding number of shares of Class B common stock) will be issued to the Continuing Equity Owners, increasing the number of units entitled to participate in distributions from WhiteHawk OpCo and potentially reducing per-share Cash Available for Distribution and dividends. See "Certain Relationships and Related Party Transactions—Internalization—Earnout" for a more detailed description of the earnout provisions.

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**CAPITALIZATION** 

The following table sets forth our cash and cash equivalents and our capitalization as of March 31, 2026:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as adjusted to give effect to (i) the Transactions, (ii) the sale of 6,925,000 shares of our
Class A common stock in this offering, at an assumed public offering price of $26.00 per share, which is the midpoint of the price range set forth on the cover of this prospectus, after deducting the underwriting discount and estimated offering
expenses payable by us, (iii) the application of the net proceeds received by us from this offering as described under "Use of Proceeds" (iv) our entry into the Revolving Credit Facility and the Amended and Restated Note
Purchase Agreement (each as described under "Description of Material Indebtedness"), and (v) the use, if any, of cash on hand to fully redeem the outstanding aggregate principal of the Series D Preferred Stock.

The following table should be read in conjunction with "Use of Proceeds," "Unaudited Pro Forma Condensed Consolidated Combined Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Description of Material Indebtedness," "Description of Capital Stock" and the audited consolidated financial statements and notes thereto included elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **As of March 31, 2026** | **As of March 31, 2026** |
|  | **Actual** | **As<br>Adjusted<sup>(1)</sup>** |
|  | **(in thousands, except par<br>and share amounts)** | **(in thousands, except par<br>and share amounts)** |
|  Cash and cash equivalents | $64562 | $5353 |
|  Total Debt<sup>(2)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Notes | $231425 | $75000<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revolving Credit Facility |  |  |
|  Mezzanine equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred stock, $0.0001 par value; shares authorized; issued and outstanding | 37643 | 30643<sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series D Preferred stock, $0.0001 par value; shares authorized; issued and outstanding<sup>(5)</sup> | 37030 |  |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, par value $0.0001 per share; no shares authorized, issued and outstanding, actual; shares authorized, shares issued and outstanding, WhiteHawk Income Corporation pro forma |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, par value $0.0001 per share; no shares authorized, issued and outstanding, actual; shares authorized, shares issued and outstanding, WhiteHawk Income Corporation pro forma |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value; 7,000,000 shares authorized; 6,660,465 shares issued and outstanding<sup>(6)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class T common stock, $0.0001 par value; 100,000 shares authorized; 67,051 shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class I common stock, $0.0001 par value; 9,100,000 shares authorized; 8,161,117 shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital | 225186 | 375061<sup>(7)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interest |  | 94221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (16209) | (29914) |
|  Total stockholders' equity | 208977 | 439368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capitalization | $515075 | $545011 |

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(1) Each $1.00 increase or decrease in the public offering price per share would increase or decrease, as
applicable, our net proceeds, after deducting the underwriting discount and estimated offering expenses payable by us, by $6.4 million (assuming no exercise of the underwriters' option to purchase additional shares). Similarly, an
increase or decrease of one million shares of Class A common stock sold in this offering by us would increase or decrease, as applicable, our net proceeds, after deducting the underwriting discount and estimated offering expenses payable by us, by
$24.2 million, based on an assumed initial public offering price of $26.00 per share, which is the midpoint of the price range set forth on the cover of this prospectus.

(2) For a description of our debt, see "Description of Material Indebtedness."

(3) Does not reflect the voluntary pre-payment made by the Company in April 2026 of $6.3 million.

(4) Does not reflect the Series B Preferred stock raised by the Company for period between April 1, 2026 and May 8,
2026. The Company received $8.0 million in proceeds, net of expenses and commissions, during that period.

(5) The Company intends to use a portion of the proceeds from this offering to redeem any shares of Series D
Preferred Stock outstanding. See "Use of Proceeds." To the extent the proceeds of this offering are insufficient to redeem the total aggregate principal amount of Series D Preferred Stock outstanding, the Company intends to use cash on
hand to fully redeem the total aggregate principal amount of Series D Preferred Stock outstanding.

(6) Represents pre-Transaction Class A common stock issued and outstanding prior to this offering.

(7) Does not reflect the common stock raised by the Company for period between April 1, 2026 and May 8, 2026. The
Company received $9.7 million, net of expenses and commissions, during that period.

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**DILUTION** 

If you invest in our Class A common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per share of our Class A common stock and the pro forma net tangible book value per share of our Class A common stock upon the consummation of this offering. Dilution results from the fact that the per share offering price of our Class A common stock is in excess of the pro forma net tangible book value per share attributable to the Class A common stock held by the existing equity holders.

The Management Contributor will own OpCo Interests after the Transactions. Because the Management Contributor does not have any right to receive distributions or dividends from us with respect to any Class B common stock or OpCo Interests held by them, we have presented dilution in pro forma net tangible book value per share both before and after this offering assuming that all of the holders of OpCo Interests (other than us) had their OpCo Interests redeemed or exchanged for newly-issued shares of Class A common stock on a one-for-one basis (rather than for cash) and the transfer to us and cancellation for no consideration of all of their shares of Class B common stock (which are not entitled to receive distributions or dividends, whether cash or stock from us). In order to more meaningfully present the dilutive impact on the investors in this offering. We refer to the assumed redemption or exchange of all OpCo Interests for shares of Class A common stock as described in the previous sentence as the "Assumed Redemption."

Our actual net tangible book value as of March 31, 2026 was approximately $283.7 million, or $19.05 per share of Class A common stock on a fully diluted basis. Actual net tangible book value represents the amount of total tangible assets less total liabilities, and actual net tangible book value per share represents actual net tangible book value divided by the number of shares of Class A common stock outstanding as of March 31, 2026.

Our pro forma net tangible book value as of March 31, 2026 was approximately $283.7 million, or $15.22 per share of Class A common stock on a fully diluted basis. Pro forma net tangible book value represents the amount of total tangible assets less total liabilities, and pro forma net tangible book value per share represents pro forma net tangible book value divided by the number of shares of Class A common stock outstanding after giving effect to the Transactions, but excluding this offering and the application of proceeds therefrom.

After giving effect to (i) the Transactions, (ii) the sale of 6,925,000 shares of Class A common stock in this offering at the assumed initial public offering price of $26.00 per share (the midpoint of the price range set forth on the cover of this prospectus) and (iii) the application of the net proceeds from this offering as described in "Use of Proceeds," our pro forma as adjusted net tangible book value as of March 31, 2026 would have been $370.0 million, or $14.47 per share of Class A common stock. This amount represents an immediate decrease in pro forma as adjusted net tangible book value of $(0.74) per share of Class A common stock to our existing equity holders and an immediate dilution in pro forma as adjusted net tangible book value of $11.53 per share of Class A common stock to new investors in this offering.

The following table illustrates this dilution on a per share of Class A common stock basis given the assumptions above:

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| | | |
|:---|:---|:---|
|  Assumed initial public offering price per share |  | $26.0 |
|  Pro forma net tangible book value per share as of March 31, 2026 before this offering | $15.22 |  |
|  Decrease in pro forma net tangible book value per share attributable to new investors | $(0.74) |  |
|  Pro forma as adjusted net tangible book value per share after this offering |  | $14.47 |
|  Dilution in net tangible book value per share to new investors in this offering |  | $11.53 |

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A $1.00 increase (decrease) in the assumed initial public offering price of $26.00 per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus, would increase (decrease) the pro forma net tangible book value per share after this offering by $0.27 and dilution per share to new Class A common stock investors in this offering by $0.64 assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the underwriting discount.

If the underwriters exercise in full their option to purchase additional shares of Class A common stock, the pro forma net tangible book value after the offering per share, the pro forma net tangible book value per share to existing stockholders and the dilution in pro forma net tangible book value to new investors would be unchanged, in each case assuming an initial public offering price of $26 per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus.

The following table summarizes, as of March 31, 2026, after giving effect to the Transactions (including this offering and proposed use of proceeds) and the Assumed Redemption, the number of shares of Class A common stock purchased from us, the total consideration paid, or to be paid, to us and the average price per share paid, or to be paid, by the Management Contributor, legacy common stock investors and by the new investors. The calculation below is based on an assumed initial public offering price of $26.00 per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus, before deducting the underwriting discount.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration<br>(in thousands)** | **Total Consideration<br>(in thousands)** | **Average<br>Price**<br>**Per<br>Share** |
|  | **Number** | **Percent** | **Amount** | **Percent** | **Average<br>Price**<br>**Per<br>Share** |
|  Management Contributor | 3750000 | 15% | $97500 | 16% | $26.00 |
|  Legacy Common Stock Investors | 14888633 | 58% | 351142 | 56% | 23.58 |
|  Investors in this offering | 6925000 | 27% | 180050 | 29% | $26.00 |
|  Total | 25563633 | 100.0% | $628692 | 100.0% |  |

---

Each $1.00 increase (decrease) in the assumed initial public offering price of $26.00 per share would increase (decrease) the total consideration paid by new investors and the total consideration paid by all stockholders by $6.9 million, assuming the number of shares offered by us remains the same and after deducting the underwriting discount.

Except as otherwise indicated, the discussion and the tables above assume no exercise of the underwriters' option to purchase additional shares of Class A common stock. The number of shares of our Class A common stock outstanding after this offering as shown in the tables above is based on the number of shares outstanding as of March 31, 2026, after giving effect to the Transactions and the Assumed Redemption, and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1,038,750 shares of Class A common stock issuable upon exercise of the underwriters' option to
purchase additional shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 84,704 shares of Class A common stock issuable upon the vesting and settlement of restricted stock
units outstanding as of May 26, 2026; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2,597,158 additional shares of Class A common stock (representing 10% of the aggregate number of shares
of Class A common stock and Class B common stock that we expect to be outstanding following this offering) reserved for future issuance under our A&R 2026 Plan that will become effective on the date our registration statement of which
this prospectus forms a part becomes effective (which number includes 28,836 shares of Class A common stock subject to restricted stock unit awards which will be granted to our non-employee directors pursuant to the A&R 2026 Equity
Incentive Plan in connection with the consummation of this offering based on an assumed initial public offering price of $26.00 per share (the midpoint of the price range set forth on the cover of this prospectus)), as well as any shares that
become issuable pursuant to provisions in the A&R 2026 Plan that automatically increase the share

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reserve under the A&R 2026 Plan as set forth in "Executive and Director Compensation—Anticipated Changes to our Compensation Program Following This Offering —A&R 2026 Equity Incentive Plan."

To the extent any of these restricted stock units settle, there will be further dilution to new investors.

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**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED COMBINED FINANCIAL STATEMENTS** 

The following unaudited pro forma condensed consolidated combined financial statements (the "pro forma financial statements") present the historical consolidated financial statements of the Company, and the historical financial statements of PHX, adjusted to give effect to the PHX Acquisition. Additionally, the pro forma financial statements include adjustments associated with the Three Rivers Royalty Acquisition completed by WhiteHawk prior to the PHX Acquisition. On March 31, 2025, the Company purchased mineral and royalty interests in the Marcellus Shale from the TRR Seller. On June 23, 2025, WH Acquisition Corp. and Merger Sub closed on the PHX Merger Agreement and WH Acquisition Corp. fully acquired all of PHX, with PHX continuing as the surviving entity and a wholly owned indirect subsidiary of the Company.

The unaudited pro forma condensed consolidated combined balance sheet gives effect to the Transactions as if they had occurred on March 31, 2026. The PHX Acquisition and Three Rivers Royalty Acquisition are reflected in the historical consolidated balance sheet of WhiteHawk as of March 31, 2026, and, as such, no pro forma adjustments are made for such transactions in the unaudited pro forma condensed consolidated combined balance sheet. The unaudited pro forma condensed consolidated combined statement of operations for the year ended December 31, 2025 gives effect to the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions as if each had occurred on January 1, 2025 (the "assumed date"). The pro forma financial statements contain certain reclassification adjustments to (i) conform the historical PHX financial statement presentation to the Company's financial statement presentation and (ii) conform certain of the Company's historical amounts to PHX's financial statement presentation. The unaudited pro forma condensed consolidated combined statement of operations for the three months ended March 31, 2026 gives effect to the Transactions as if they had occurred on January 1, 2026.

The unaudited pro forma financial statements have been prepared in accordance with Article 11 of Regulation S-X as amended by the final rule, Release No. 33-10786, "Amendments to Financial Disclosures about Acquired and Disposed Businesses," using assumptions set forth in the notes to the unaudited pro forma financial statements. The pro forma financial statements have been adjusted to include transaction accounting adjustments in accordance with GAAP, linking the effects of the PHX Acquisition and the Three Rivers Royalty Acquisition and the adjustments to the PHX historical financial statements and the TRR Seller consolidated carve-out financial statement presentation to the historical consolidated financial statements of the Company. The Company has finalized purchase accounting for the PHX and TRR Seller acquisitions and conformed their accounting policies to those of the Company, and the accompanying unaudited pro forma condensed combined financial information reflects the final purchase price allocations recorded in the Company's audited consolidated financial statements for the year ended December 31, 2025, with only transaction accounting adjustments presented. The pro forma financial statements and related notes are presented for illustrative purposes only and should not be relied upon as an indication of the financial condition or the operating results that the Company would have achieved if the PHX Acquisition and the Three Rivers Royalty Acquisition had taken place on the assumed date.

The pro forma financial statements do not reflect future events that may have occurred after the consummation of the PHX Acquisition and the Three Rivers Royalty Acquisition, including, but not limited to, the anticipated realization of ongoing savings from potential operating efficiencies, asset dispositions, cost savings or economies of scale that may be achieved with respect to the combined operations. As a result, future results may vary significantly from the results reflected in the pro forma financial statements and should not be relied on as an indication of the Company's post-combination future results.

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**Unaudited Pro Forma Condensed Consolidated Combined Balance Sheet** 

**As of March 31, 2026** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | | | |
|  | **WhiteHawk**<br>**Income**<br>**Corporation** |<br>**Transaction**<br>**Adjustments** | **Pro Forma**<br>**Combined** | **Pro Forma**<br>**Combined** |
|  | **(in thousands, except par value and share<br>amounts)** | **(in thousands, except par value and share<br>amounts)** | **(in thousands, except par value and share<br>amounts)** | **(in thousands, except par value and share<br>amounts)** |
|  **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $64562 | $(59209) | **D** | $5353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 14395 |  |  | 14395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term derivative receivable | 4279 |  |  | 4279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1430 | (615) | **I** | 815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 84666 | (59824) |  | 24842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas and oil mineral interests, net | 457480 |  |  | 457480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other property and equipment, net | 245 |  |  | 245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 2471 |  |  | 2471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | —  | 100000 | **B** | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $544862 | $40176 |  | $585038 |
|  **Liabilities, mezzanine equity and shareholders' equity:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $977 | $— |  | $977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 1760 | 2913 | **I** | 4673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued dividends | 5430 |  |  | 5430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability, current portion | 177 |  |  | 177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, current portion | 6275 | (6275) | **C** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 14619 | (3362) |  | 11257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, net of unamortized debt issuance costs and current portion | 221733 | (146733) | **C** | 75000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 21257 | 3910 | **I** | 25167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 323 |  |  | 323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability, net of current portion | 76 |  |  | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term derivative liability | 3204 |  |  | 3204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 261212 | (146185) |  | 115027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mezzanine equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred stock, $0.0001 par value; 400,000 shares authorized; 49,038 shares issued and outstanding on a historical basis and 42,038 shares issued and outstanding on a pro forma basis, historical redemption value $49,038 and pro forma redemption value $42,038 | 37643 | (7000) | **F** | 30643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series D Preferred stock, $0.0001 par value; 400,000 shares authorized; 37,780 shares issued and outstanding on a historical basis and no shares issued and outstanding on a pro forma basis, historical redemption value $37,780 and pro forma redemption value $0 | 37030 | (37030) | **E** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value; 7,000,000 shares authorized; 6,660,465 shares issued and outstanding on a historical basis and 250,000,000 shares authorized; 21,900,451 shares issued and outstanding on a pro forma basis |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class T common stock, $0.0001 par value; 100,000 shares authorized; 67,051 and shares issued and outstanding on a historical basis and no shares issued and outstanding on a pro forma basis |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class I common stock, $0.0001 par value; 9,100,000 shares authorized; 8,161,117 and shares issued and outstanding on a historical basis and no shares issued and outstanding on a pro forma basis |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 3,750,000 shares issued and outstanding on a pro forma basis |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital | 225186 | 149875 | **A** | 375061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | 94221 | **B** | 94221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings (accumulated deficit) | (16209) | (13705) |  | (29914) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 208977 | 230391 |  | 439368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, mezzanine equity and shareholders' equity | $544862 | $40176 |  | $585038 |

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**Unaudited Pro Forma Condensed Consolidated Combined Statement of Operations** 

**For the Three Months Ended March 31, 2026** 

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| | | | |
|:---|:---|:---|:---|
|  | **Historical** | | |
|  | **WhiteHawk<br>Income<br>Corporation** |<br>**Transaction<br>Adjustments** |<br>**Pro Forma<br>Combined** |
|  **Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $25616 | $— | $25616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | (5309) |  | (5309) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 517 |  | 517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 20824 |  | 20824 |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3109 |  | 3109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 2981 |  | 2981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 9665 |  | 9665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock based compensation | 483 |  | 483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 16238 |  | 16238 |
|  **Operating income (loss)** | 4586 |  | 4586 |
|  **Other expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt |  | 21017 **F** | 21017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 5997 |  | 5997 |
|  **Income (loss) before income taxes** | (1411) | (21017) | (22428) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (348) | (4033) **I** | (4381) |
|  **Net income (loss)** | (1063) | (16984) | (18047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (income) loss attributable to non-controlling interests |  | 3279 **G** | 3279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings allocated to participating securities | (1186) |  | (1186) |
|  **Net income (loss) attributable to common shareholders** | $(2249) | $(13705) | $(15954) |
|  **Earnings (loss) per common share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares—basic and diluted | $(0.15) |  | $(0.74) **H** |
|  **Weighted average number of shares outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares—basic and diluted | 14739 |  | 21664 |

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##### [**Table of Contents**](#toc)
**Unaudited Pro Forma Condensed Consolidated Combined Statement of Operations** 

**For the Year Ended December 31, 2025** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | | | **Historical** | | | | |
|  | **WhiteHawk<br>Income<br>Corporation** |<br>**Three Rivers<br>Royalty<br>Adjustments** |<br>**As Adjusted for<br>TRR<br>Acquisition** | **PHX Minerals** |<br>**PHX<br>Adjustments** |<br>**As Adjusted<br>for TRR<br>Acquisition<br>and PHX<br>Acquisition** |<br>**Transaction<br>Adjustments** |<br>**Pro Forma<br>Combined** |
|  | **(As Restated)** | | | | | | | |
|  **Revenues:** |  | **A** |  | **B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $50075 | $5616 | $55691 | $19569 | $(3421) | $71839 | $— | $71839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | 16648 |  | 16648 | (596) |  | 16052 |  | 16052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 872 |  | 872 | 471 |  | 1343 |  | 1343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 67595 | 5616 | 73211 | 19444 | (3421) | 89234 |  | 89234 |
|  **Operating expenses:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease operating expenses |  |  |  | 560 **C** | (560) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation, gathering and marketing |  |  |  | 2138 **C** | (2138) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes |  |  |  | 723 **C** | (723) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 16585 |  | 16585 | 10854 |  | 27439 |  | 27439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9966 |  | 9966 **E** |  |  | 9966 |  | 9966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 |  | 24237 | 4907 **D** | 7307 | 36451 |  | 36451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 50788 |  | 50788 | 19182 | 3886 | 73856 |  | 73856 |
|  **Operating income (loss)** | 16807 | 5616 | 22423 | 262 | (7307) | 15378 |  | 15378 |
|  **Other expense:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 |  | 3839 |  |  | 3839 | 21040 **F** | 24879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on sale of assets | 123 |  | 123 | (6429) |  | (6306) |  | (6306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 |  | 19070 | 659 |  | 19729 |  | 19729 |
|  **Income (loss) before income taxes** | (6225) | 5616 | (609) | 6032 | (7307) | (1884) | (21040) | (22924) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (2640) |  | (2640) | 1297 |  | (1343) | (2806) **I** | (4149) |
|  **Net income (loss)** | (3585) | 5616 | 2031 | 4735 | (7307) | (541) | (18234) | (18775) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (income) loss attributable to non-controlling interests |  |  |  |  |  |  | 3396 **G** | 3396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings allocated to participating securities | (7341) |  | (7341) |  |  | (7341) |  | (7341) |
|  **Net income (loss) attributable to common shareholders** | $(10926) | $5616 | $(5310) | $4735 | $(7307) | $(7882) | $(14838) | $(22720) |
|  **Earnings (loss) per common share:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares—basic and diluted | $(1.30) |  |  |  |  |  |  | $(1.64) **H** |
|  **Weighted average number of shares outstanding:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares—basic and diluted | 8378 |  |  |  |  |  |  | 13836 |

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##### [**Table of Contents**](#toc)
**Notes to unaudited pro forma condensed consolidated combined financial statements** 

**1. Basis of Presentation, the Offering and Reorganization** 

The pro forma financial statements have been derived from the historical financial statements of WhiteHawk (in the case of financial information as of and for the three months ended March 31, 2026 and as of and for the year ended December 31, 2025 as restated in the Restatement). The unaudited pro forma condensed consolidated combined balance sheet gives effect to the Transactions as if they had occurred on March 31, 2026. The PHX Acquisition and Three Rivers Royalty Acquisition are reflected in the historical consolidated balance sheet of WhiteHawk as of March 31, 2026, and, as such no pro forma adjustments are made for such transactions in the unaudited pro forma condensed combined balance sheet. The unaudited pro forma condensed consolidated combined statement of operations for the year ended December 31, 2025 gives effect to the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions as if each had occurred on January 1, 2025. The unaudited pro forma condensed consolidated combined statement of operations for the three months ended March 31, 2026 gives effect to the Transactions as if each had occurred on January 1, 2026.

The pro forma financial statements reflect pro forma adjustments that are based on available information and certain assumptions that management believes are reasonable. However, actual results may differ from those reflected in these statements. In management's opinion, all adjustments known to date that are necessary to present fairly the pro forma information have been made. The pro forma financial statements do not purport to represent what WhiteHawk's post-combination financial position or results of operations would have been if the transactions had actually occurred on the dates indicated above, nor are they indicative of the Company's post-combination future financial position or results of operations.

These pro forma financial statements should be read in conjunction with the historical financial statements, and related notes thereto, of WhiteHawk, PHX and TRR for the periods presented, which are included or incorporated by reference in this Registration Statement.

*Corporate Reorganization & Offering* 

In connection with the consummation of the offering, we will consummate the Transactions. We will amend and restate our certificate of incorporation to, among other things, change our name to "WhiteHawk Minerals Corp."; effect the Common Stock Reclassification; adjust our authorized capital stock to 250,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock and 10,000,000 shares of preferred stock, each par value $0.0001 per share; authorize our board of directors to establish and fix the terms of one or more series of preferred stock; and create Class B common stock in connection with our anticipated Up-C structure, to be issued to holders of OpCo Interests, with each share entitled to one vote and no economic rights.

WhiteHawk OpCo will enter into the OpCo Agreement to, among other things, appoint OP GP as sole general partner with authority to manage WhiteHawk OpCo's business and affairs; authorize the issuance of OpCo Interests to us in exchange for the offering proceeds; provide the Subsequent Continuing Equity Owners with the right to redeem their OpCo Interests for, at our election (determined solely by our disinterested independent directors), cash or newly-issued shares of Class A common stock on a one-for-one basis (subject to customary adjustments), with a corresponding number of shares of Class B common stock automatically transferred to us and canceled; and provide for tax distributions and allocations of income, gain, loss, deduction and credit among holders of OpCo Interests. We will enter into the Registration Rights Agreement with certain of our Subsequent Continuing Equity Owners, as further described in "Certain Relationships and Related Party Transactions."

To effectuate the Internalization, the Contribution Agreement will be entered into by the parties thereto, pursuant to which WhiteHawk OpCo will acquire all outstanding equity interests in ManagementCo from the Management Contributor in exchange for OpCo Interests and shares of Class B common stock; as a result, ManagementCo will become a wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed.

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We will issue shares of our Class A common stock to the purchasers in this offering (or shares if the underwriters exercise in full their option to purchase additional shares) at an assumed initial public offering price of $26.00 per share (the midpoint of the estimated price range set forth on the cover page of this prospectus), less the underwriting discount, for net proceeds of approximately $160.9 million (or approximately $186.1 million if the underwriters exercise in full their option to purchase additional shares). Immediately following the consummation of the Transactions (including this offering), we will be a holding company whose principal asset will consist of OpCo Interests acquired directly from WhiteHawk OpCo. As the sole member of OP GP, we will control the business and affairs of WhiteHawk OpCo. We will own, directly or indirectly, OpCo Interests representing approximately 85.6% of the common economic interest in WhiteHawk OpCo (or OpCo Interests representing approximately 86.1% if the underwriters exercise in full their option to purchase additional shares) (based on outstanding OpCo Interests and excluding Series B preferred units). The Management Contributor will own OpCo Interests representing approximately 14.4% of the common economic interest in WhiteHawk OpCo (or approximately 13.9% if the underwriters exercise in full their option to purchase additional shares) (based on outstanding OpCo Interests and excluding Series B preferred units), and shares of our Class B common stock representing approximately 14.4% of the combined voting power of all of our common stock (or shares representing approximately 13.9% if the underwriters exercise in full their option to purchase additional shares).

**2. Unaudited Pro Forma Condensed Consolidated Combined Balance Sheet** 

*Transaction Adjustments* 

The unaudited pro forma condensed consolidated combined balance sheet as of March 31, 2026 reflects the historical consolidated balance sheet of WhiteHawk, which already includes the effects of the PHX Acquisition and Three Rivers Royalty Acquisition. Accordingly, no pro forma adjustments are presented for these transactions in the balance sheet. Transaction accounting adjustments related to the Transactions are described further below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Reflects adjustments to account for the Common Stock Reclassification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Reflects the adjustment to account for the Internalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Reflects the adjustment to account for pay down of debt with proceeds from this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Reflects the adjustment to cash for expenses over the amount of proceeds raised in this offering as further
detailed below (in thousands):

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| | |
|:---|:---|
|  Cash and cash equivalents at March 31, 2026 | $64562 |
|  Expenses of this offering | (6500) |
|  Prepayment fees on Senior Notes | (17600) |
|  Extinguishment of Series D Preferred Stock | (28109) |
|  Partial redemption of Series B Preferred Stock | (7000) |
|  Pro forma cash and cash equivalents at March 31, 2026 | $5353 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Reflects the extinguishment of Series D Preferred Stock with proceeds from this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Reflects partial redemption of Series B Preferred Stock.

**3. Unaudited Pro Forma Condensed Consolidated Combined Statements of Operations** 

*Three Rivers Royalty Acquisition Adjustments* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Reflects natural gas and oil operations of properties acquired in the Three Rivers Royalty Transaction prior to
the effective date of the transaction.

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*PHX Adjustments* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Reflects combination of the historical statement of operations of PHX for the period January 1, 2025
through March 31, 2025 and the PHX Minerals Stub Period results of operations for the stub period between April 1, 2025 through June 23, 2025 (date of acquisition). A reconciliation of the adjustments is below (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **PHX<br>Minerals<br>Historical** | **PHX<br>Minerals<br>Stub<br>Period** | **Adjusted<br>PHX<br>Minerals** |
|  **Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales | $10433 | $9135 | $19569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | (3163) | 2568 | (596) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 328 | 143 | 471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 7598 | 11846 | 19444 |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease operating expenses | 274 | 286 | 560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation, gathering and marketing | 1104 | 1034 | 2138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes | 423 | 301 | 723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 2430 | 2477 | 4907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 452 | 207 | 659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3754 | 7100 | 10854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses (gain) on asset sales and other | (6520) | 90 | (6429) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 1917 | 11495 | 13412 |
|  **Income (loss) before provision for income taxes** | 5681 | 351 | 6032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | 1297 |  | 1297 |
|  **Net income** | $4384 | $351 | $4735 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Reflects a pro forma adjustment to reclassify lease operating expenses, transportation, gathering and
marketing, and production and ad valorem taxes to conform to WhiteHawk's presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Reflects the pro forma impact to depletion expense associated with the change in fair value adjustment to oil
and gas properties as a result of the PHX Acquisition. Pro forma depletion expense was calculated on a consolidated basis as though all such properties were owned for the entire period. This number was then offset by the historical depletion expense
related to PHX Minerals. The adjustment under Transaction Adjustments was calculated using the units-of-production method under the successful efforts method of
accounting (in thousands):

---

| | |
|:---|:---|
|  For the year ended December 31, 2025 |  |
|  Depletion expense related to the fair value of oil and gas properties of PHX | $12214.0 |
|  Less PHX historical depletion expense | 4907.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction Adjustments to depletion expense | $7307.0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Reflects the management fees expense of WhiteHawk that were paid as compensation for services rendered in the
management of the Company. The management fee expenses represent the charge for managing the Company and did not include general and administrative expenses related to operating the business. While a pro forma adjustment has not been made to
eliminate the management fees, the Company will no longer incur any management fees after completion of the Transaction.

*Transaction adjustments* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Reflects costs written off as a part of the partial extinguishment and prepayment of the Senior Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Reflects allocation of net loss to non-controlling interest as a part of the Internalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Reflects basic and diluted loss per common share as shown below for the applicable period, computed using the
two-class method (in thousands, except per share data):

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| | |
|:---|:---|
|  *For the year ended December 31, 2025* |  |
|  Numerator: |  |
|  Pro forma net loss attributable to WhiteHawk Income Corporation | $(15379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Earnings allocated to participating securities | $(7341) |
|  Net loss attributable to common stockholders - basic and diluted  | $(22720) |
|  Denominator: |  |
|  Weighted average shares outstanding - basic and diluted | 13836 |
|  Net loss per common share - basic and diluted | $(1.64) |

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| | |
|:---|:---|
|  *For the three months ended March 31, 2026* |  |
|  Numerator: |  |
|  Pro forma net loss attributable to WhiteHawk Income Corporation | $(14768) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Earnings allocated to participating securities | (1186) |
|  Net loss attributable to common stockholders - basic and diluted | $(15954) |
|  Denominator: |  |
|  Weighted average shares outstanding - basic and diluted | 21664 |
|  Net loss per common share - basic and diluted | $(0.74) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Represents the income tax impact of the pro forma adjustments from the Three Rivers Royalty Acquisition, the
PHX Acquisition and the Transactions based on a blended federal and state statutory tax rate of 24.2% for the year ended December 31, 2025.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following discussion and analysis should be read in conjunction with the "Summary—Summary Historical and Pro Forma Financial Data" and the accompanying financial statements and related notes included elsewhere in this prospectus. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, market prices for natural gas, NGLs and oil, production volumes, estimates of proved reserves, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this prospectus, particularly in "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements," all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.* 

*Unless otherwise indicated, the historical financial information in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" does not give effect to the transactions described in "Corporate Reorganization, the PHX Acquisition or the Three Rivers Royalty Acquisition."* 

**Overview** 

We are focused on being the premier natural gas mineral and royalty business in the United States. We are committed to delivering cash flow and total returns to our investors through the disciplined acquisition, active management and ownership of high-quality mineral and royalty interests. Our assets are concentrated in the Marcellus and Haynesville Shales, which are located in the Appalachian and Haynesville Basins, among the most productive and lowest-cost natural gas basins in the United States. Upon completion of the offering, we will own the largest, high-quality publicly traded natural gas mineral portfolio in the United States.<sup>47</sup> As a mineral and royalty business, we do not pay any drilling-related capital expenditures and only minimal operating expenses on our properties. This results in a high-margin business and allows us to distribute a meaningful portion of our cash flow to investors, while providing them with potential for significant capital appreciation over time.

**Market Conditions and Operational Trends** 

Historically, natural gas, NGLs and oil prices have been volatile and may continue to be volatile in the future. During the past five years, the Henry Hub spot market price for natural gas has ranged from a low of $1.21 per MMBtu in November 2024 to a high of $23.86 per MMBtu in February 2021. The posted price for WTI has ranged from a low of negative $36.98 per barrel in April 2020 to a high of $123.64 per barrel in March 2022. As of December 31, 2025, the posted price for WTI was $57.26 per barrel and the Henry Hub spot market price of natural gas was $4.00 per MMBtu. As of March 31, 2026, the posted price for WTI was $91.38 per barrel and the Henry Hub spot market price of natural gas was $3.04 per MMBtu. Lower prices not only decrease our revenues, but also potentially impact the amount of natural gas, NGLs and oil that our operators can produce economically. This, in turn, can impact the capital budgets for our operators and their development pace of our properties. We expect commodity price volatility will continue in the future.

**How We Evaluate Our Operations** 

We use a variety of operational and financial measures to assess our operations. Among the measures considered by management are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• volumes of natural gas, NGLs and oil produced;

<sup>47</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• current activity trends including (rigs, producing wells, WIPs, permits and other locations); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commodity prices and hedging.

***Volumes of Natural Gas, NGLs and Oil Produced***

In order to track and assess the performance of our assets, we monitor and analyze our production volumes from the various resource plays that comprise our portfolio of properties. We also regularly compare projected volumes to actual reported volumes and investigate unexpected variances.

***Current Activity Trends (Rigs, Producing Wells, WIPs, Permits and Other Locations)***

In order to track and assess the performance of our assets, we monitor and analyze the number of rigs currently drilling and in close proximity to our properties. We also constantly monitor the number of producing wells, WIPs, permits and other locations that are applicable to our mineral and royalty interests. This analysis provides us with line of sight to near-, medium- and long-term potential production from the various resource plays that comprise our asset base. Our engineering and land teams employ a rigorous, data-driven technical process to track each well through its full lifecycle—from other locations, to permit, to drilling, to production—ensuring that every well is properly classified, accurately paid and fully captured in our forecasting.

***Commodity Prices and Hedging***

Commodity prices have historically been volatile and may continue to be volatile in the future. Lower prices not only decrease our revenues, but also potentially the amount of natural gas, NGLs and oil that our operators can produce economically. The prices we receive for natural gas, NGLs and oil are determined by factors affecting global and regional supply and demand dynamics, such as economic and geopolitical conditions, production levels, availability of transportation, weather cycles and other factors. In addition, realized prices are influenced by product quality and proximity to consuming and refining markets. Any differences between realized prices and NYMEX prices are referred to as differentials.

*Natural Gas*. The NYMEX price quoted at Henry Hub is a widely used benchmark for the pricing of natural gas in the United States. The actual volumetric prices realized from the sale of natural gas differ from the quoted NYMEX price as a result of quality and location differentials.

Quality differentials result from the heating value of natural gas measured in Btus and the presence of impurities, such as hydrogen sulfide, carbon dioxide and nitrogen. Natural gas containing ethane and heavier hydrocarbons has a higher Btu value and will realize a higher volumetric price than natural gas that is predominantly methane, which has a lower Btu value. Natural gas with a higher concentration of impurities will realize a lower volumetric price due to the presence of the impurities in the natural gas when sold or the cost of treating the natural gas to meet pipeline quality specifications.

Natural gas, which currently has a limited global transportation system, is subject to price variances based on local supply and demand conditions and the cost to transport natural gas to end-user markets.

*NGLs*. NGLs pricing is generally tied to the price of oil, but varies based on differences in liquid components and location.

*Oil*. The majority of our oil production is sold at prevailing market prices, which fluctuate in response to many factors that are outside of our control. NYMEX light sweet crude oil, commonly referred to as WTI, is the prevailing domestic oil-pricing index. The majority of our oil production is priced at the prevailing market price with the final realized price affected by both quality and location differentials.

The chemical composition of crude oil plays an important role in its refining and subsequent sale as petroleum products. As a result, variations in chemical composition relative to the benchmark crude oil, usually WTI, will

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result in price adjustments, which are often referred to as quality differentials. The characteristics that most significantly affect quality differentials include the density of the oil, as characterized by its API gravity, and the presence and concentration of impurities, such as sulfur.

Location differentials generally result from transportation costs based on the produced oil's proximity to consuming and refining markets and major trading points.

*Hedging* 

Our ongoing operations expose us to changes in the market price for natural gas assets. To mitigate the inherent commodity price risk associated with its operations, we use natural gas commodity derivative instruments for a substantial portion of our expected natural gas volumes. The vast majority of our hedge contracts are fixed price swaps, though from time to time, such instruments may also include costless collars and other contractual arrangements. In addition, we hedge basis exposure through basis swaps and similar instruments to manage the differential between the indices and locations at which we price our physical sales and those underlying our financial hedges. We enter into natural gas derivative contracts that contain netting arrangements with each counterparty, and we do not enter into derivative instruments for speculative purposes. For further discussion, see "Note 4—Commodity Derivative Financial Instruments" to our consolidated financial statements included elsewhere in this prospectus.

As of March 31, 2026, our open derivative contracts primarily consisted of fixed-price swap natural gas and oil contracts as well as natural gas costless collar contracts. A fixed-price swap contract between the Company and a counterparty specifies a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. A costless collar contract between the Company and the counterparty specifies a floor and a ceiling commodity price over a specified period for a contracted volume. We have not designated any of our contracts as fair value or cash flow derivatives; accordingly, the changes in fair value of the contracts are included in the consolidated statements of operations in the period of the change. All derivative gains and losses from our derivative contracts have been recognized in revenue in our accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in our consolidated balance sheets as of March 31, 2026 and December 31, 2025.

Our natural gas fixed price swap transactions and costless collar transactions are settled based upon the first of the month pricing, which settles three business days prior to the first day of the calendar month of the contract period. Payment for natural gas fixed price swap contracts occurs in the month of the contract period.

We also have oil fixed price swap transactions which are settled based upon the average daily prices of the calendar month of the contract period. Payment for oil fixed price swap contracts occurs in the succeeding month.

Our derivative contracts expose us to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of our commodity derivative assets. While we do not require contract counterparties to post collateral, we do evaluate the credit standing on each counterparty as deemed appropriate. The evaluation includes reviewing a counterparty's credit rating and latest financial information. As of December 31, 2025, we had one counterparty, which is rated Baa2 or better by Moody's. For additional information, see "Note 5—Commodity Derivative Financial Instruments*"* to our consolidated financial statements included elsewhere in this prospectus.

**Sources of Our Revenue** 

A significant portion of our revenues are derived from the mineral royalty payments we receive from our operators based on the sale of natural gas, NGLs and oil produced from our mineral interests. Royalty revenues

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may vary significantly from period to period as a result of changes in volumes of production sold by our operators, production mix and commodity prices. A portion of our revenue also comes from other royalty and lease bonus payments. Other royalty revenue is comprised of flat rate, shut-in and gas storage payments. Lease bonus revenue includes cash payments received at the beginning of a new lease and extension payments on current leases.

The following table presents the breakdown of our revenues for the following periods:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  | **2026** | **2025** | **2025** | **2024** |
|  **Royalty revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas sales | 83% | 90% | 82% | 81% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas liquids sales | 6% | 9% | 8% | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | 10% | 1% | 9% | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus | 1% | 0% | 1% | 7% |
|  Total  | 100% | 100% | 100% | 100% |

---

**Principal Components of Our Cost Structure** 

The following is a description of the principal components of our cost structure. Importantly, as an owner of mineral interests, we are not obligated to fund drilling and completion capital expenditures to bring a well on line, lease operating expenses to produce our natural gas, NGLs and oil or the plugging and abandonment costs at the end of a well's economic life. All of the aforementioned costs are borne entirely by the E&P operator that has leased our mineral interests.

***Depletion***

Depletion is the systematic expensing of the capitalized costs incurred to acquire oil and natural gas mineral and royalty properties. We use the successful efforts cost method of accounting, and, as such, all costs associated with successful acquisitions are capitalized and reasonably aggregated and depleted based on a common geological structural feature. Costs associated with unsuccessful acquisitions are expensed. Depletion is the expense recorded based on the cost basis of our properties and the volume of hydrocarbons extracted during each respective period, calculated on a units-of-production basis. Estimates of proved reserves are a major component of our calculation of depletion. We adjust our depletion rates in the fourth quarter of each year based upon the year-end reserve report prepared by Cawley, Gillespie & Associates, Inc., our independent petroleum engineers, unless circumstances indicate that there has been a significant change in reserves or costs.

***General and Administrative***

General and administrative ("G&A") expenses are costs incurred for overhead, including payroll and benefits for our personnel costs of maintaining our office locations, costs of managing our properties, audit and other fees for professional services and legal compliance. As a result of becoming a public company, we anticipate incurring incremental G&A expenses as a result of operating as a publicly traded company. These incremental public company G&A expenses include expenses associated with SEC reporting requirements, including annual and quarterly reports, Sarbanes-Oxley Act compliance expenses, expenses associated with listing our Class A common stock on the NYSE, increased independent auditor fees, increased independent reserve engineer fees, increased legal fees, investor relations expenses, registrar and transfer agent fees, director and officer insurance expenses and director and officer compensation. These incremental G&A expenses are not reflected in our historical financial statements included elsewhere in this prospectus.

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***Interest Expense***

We have financed a portion of our working capital requirements and acquisitions with borrowings under our Senior Notes. As a result, we incur interest expense that is affected by both fluctuations in interest rates and our financing decisions. We reflect interest paid to the lenders under our Senior Notes and amortization of debt issuance costs in interest expense in our consolidated statements of operations.

***Income Tax Expense***

As a corporation, we are subject to U.S. federal income taxes. We are also subject to the Texas margin tax and certain other state income taxes.

**Factors Affecting the Comparability of Our Financial Results** 

Our future results of operations may not be comparable to the historical results of operations of our predecessor for the periods presented, primarily for the reasons described below.

***Corporate Reorganization***

In connection with the consummation of the offering, we will consummate the Transactions. We will amend and restate our certificate of incorporation to, among other things, change our name to "WhiteHawk Minerals Corp."; effect the Common Stock Reclassification; adjust our authorized capital stock to 250,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock and 10,000,000 shares of preferred stock, each par value $0.0001 per share; authorize our board of directors to establish and fix the terms of one or more series of preferred stock; and create Class B common stock in connection with our anticipated Up-C structure, to be issued to holders of OpCo Interests, with each share entitled to one vote and no economic rights.

WhiteHawk OpCo will enter into the OpCo Agreement to, among other things, appoint OP GP as sole general partner with authority to manage WhiteHawk OpCo's business and affairs; authorize the issuance of OpCo Interests to us in exchange for the offering proceeds; provide the Subsequent Continuing Equity Owners with the right to redeem their OpCo Interests for, at our election (determined solely by our disinterested independent directors), cash or newly-issued shares of Class A common stock on a one-for-one basis (subject to customary adjustments), with a corresponding number of shares of Class B common stock automatically transferred to us and canceled; and provide for tax distributions and allocations of income, gain, loss, deduction and credit among holders of OpCo Interests. We will enter into the Registration Rights Agreement with certain of our Subsequent Continuing Equity Owners, as further described in "Certain Relationships and Related Party Transactions."

To effectuate the Internalization, the Contribution Agreement will be entered into by the parties thereto, pursuant to which WhiteHawk OpCo will acquire all outstanding equity interests in ManagementCo from the Management Contributor in exchange for OpCo Interests and shares of Class B common stock; as a result, ManagementCo will become a wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed. We will issue shares of our Class A common stock to the purchasers in this offering (or shares if the underwriters exercise in full their option to purchase additional shares) at an assumed initial public offering price of $26.00 per share (the midpoint of the estimated price range set forth on the cover page of this prospectus), less the underwriting discount, for net proceeds of approximately $167.4 million (or approximately $192.6 million if the underwriters exercise in full their option to purchase additional shares).

Immediately following the consummation of the Transactions (including this offering), we will be a holding company whose principal asset will consist of OpCo Interests acquired directly from WhiteHawk OpCo. As the sole member of OP GP, we will control the business and affairs of WhiteHawk OpCo.

As a result of the Internalization, we expect a meaningful reduction in our operating expenses due to the elimination of management fees and other costs paid to ManagementCo.

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***Acquisitions***

Our financial statements for the year ended December 31, 2025 and 2024 do not include the results of operations for the Three Rivers Royalty Acquisition or the PHX Acquisition prior to the respective dates of acquisition and our financial statements for the year ended December 31, 2024 do not include the assets acquired in the Three Rivers Royalty Acquisition and the PHX Acquisition. As a result, our financial results do not give an accurate indication of what the actual results would have been if such acquisitions had been completed at the beginning of the periods presented or of what our future results are likely to be. For additional discussion of the Three Rivers Royalty Acquisition and the PHX Acquisition, please refer to "Unaudited Pro Forma Condensed Consolidated Combined Financial Information." Prior to the Three Rivers Royalty Acquisition in which we acquired the remaining 50% undivided interest in the natural gas mineral assets of the TRR Seller, we previously acquired an aggregate 50% undivided interest in the natural gas mineral assets of the TRR Seller which are reflected in our financial statements for the years ended December 31, 2025 and 2024. See "Business—Our Acquisition History."

Acquisitions are an important part of our growth strategy, and we plan to pursue potential accretive acquisitions of additional natural gas-weighted mineral and royalty interests. We believe we will be well positioned to acquire such assets and, should such opportunities arise, identifying and executing acquisitions will be a key part of our strategy. However, if we are unable to make acquisitions on economically accretive terms, our future growth may be limited, and any acquisitions we may make may reduce, rather than increase, our cash flows and ability to pay dividends to stockholders in the short term.

***Public Company Expenses***

Following the closing of this offering, we anticipate incurring incremental G&A expenses as a result of operating as a publicly traded company, such as expenses associated with SEC reporting requirements, including annual and quarterly reports, Sarbanes-Oxley Act compliance expenses, expenses associated with listing our Class A common stock on the NYSE, increased independent auditor fees, increased independent reserve engineer fees, increased legal fees, investor relations expenses, registrar and transfer agent fees, director and officer insurance expenses and director and officer compensation expenses. These incremental G&A expenses are not reflected in our historical financial statements. Additionally, we may hire additional employees, including accounting, engineering, land and legal personnel, in order to comply with requirements of being a publicly traded company.

***Management Fees***

The Company incurred and paid fees under the amended and restated investment management agreement, dated as of October 3, 2025 (the "Investment Management Agreement"), with WhiteHawk Management , an affiliate of WhiteHawk Energy, LLC, of which Daniel Herz is a managing member. Fees incurred under the Investment Management Agreement were $3.0 million and $1.4 million for the three months ended March 31, 2026 and 2025, respectively. We expect a meaningful reduction in our operating expenses due to the elimination of management fees and other costs paid to ManagementCo.

**Restatement of Prior Period Financial Statements** 

As discussed under the heading "Restatement," we recently restated our previously issued consolidated financial statements and related notes for the year ended December 31, 2025, which restated financial statements are included elsewhere in this prospectus. Refer to Note 3 in the notes to the audited consolidated financial statements in this prospectus for additional information. The impact of the restatement is reflected in the "Results of Operations" section within this "Management's Discussion and Analysis of Financial Condition and Results of Operations."

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**Results of Operations** 

***Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025***

*Consolidated Results* 

The following tables summarize our consolidated revenue and expenses and production data for the three months ended March 31, 2026 and 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | | |
|  | **2026** | **2025** | **Variance** | **Variance** |
|  | **(dollars in thousands, except for realized prices)** | **(dollars in thousands, except for realized prices)** | **(dollars in thousands, except for realized prices)** | **(dollars in thousands, except for realized prices)** |
|  **Production:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas (Mcf) | 5113078 | 2184405 | 2928673 | 134% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGLs (Bbls) | 70562 | 26457 | 44105 | 167% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil (Bbls) | 41311 | 1273 | 40038 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents (Mcfe) | 5784316 | 2350783 | 3433533 | 146% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents per day (Mcfe / d) | 64270 | 26120 | 38150 | 146% |
|  **Realized prices:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas (per Mcf) | $4.73 | $3.57 | $1.16 | 32% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGLs (per Bbl) | $23.07 | $27.81 | $(4.74) | -17% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil (per Bbl) | $69.76 | $59.27 | $10.49 | 18% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents (per Mcfe) | $4.96 | $3.66 | $1.30 | 35% |
|  **Average Realized Price After Effects of Derivative Settlements:** |  |  |  |  |
|  Natural gas (per Mcf) | $3.60 | $3.36 | $0.24 | 7% |
|  **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $25616 | $8039 | $17577 | 219% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | (5309) | (8874) | 3565 | -40% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 517 | 2 | 515 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 20824 | (833) | 21657 | \* |
|  **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3109 | 891 | 2218 | 249% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 2981 | 1423 | 1558 | 109% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 9665 | 3199 | 6466 | 202% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock based compensation | 483 |  | 483 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 16238 | 5513 | 10725 | 195% |
|  **Operating income (loss)** | 4586 | (6346) | 10932 | -172% |
|  **Other expense:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 5997 | 1747 | 4250 | 243% |
|  Total other expense | 5997 | 1747 | 4250 | 243% |
|  Income (loss) before income taxes | (1411) | (8093) | 6682 | -83% |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (348) |  | (348) | \* |
|  **Net income (loss)** | (1063) | (8093) | $7030 | -87% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings allocated to participating securities | (1186) | (1086) | $(100) | 9% |
|  **Net income (loss) attributable to common shareholders** | $(2249) | $(9179) | $6930 | -75% |

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***Revenue***

Our consolidated revenues for the three months ended March 31, 2026, increased $21.7 million, as compared to the three months ended March 31, 2025. The increase in revenues was primarily due to an increase in natural gas, NGL and oil royalty revenue and a decrease in losses from our commodity derivatives and an increase in lease bonus revenue. The increase in royalty revenues was primarily due to an increase in our production volumes of 146% from the acquisitions of additional mineral and royalty interests.

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Natural gas revenues for the three months ended March 31, 2026, increased $16.4 million, or 210%, compared to the three months ended March 31, 2025. Natural gas production volumes increased 134% to 56,812 Mcf/day, resulting in a $13.9 million increase in natural gas sales primarily due to acquisitions of additional mineral and royalty interests. Realized natural gas prices increased 32% to $4.73 per Mcf, resulting in an increase in revenue of $3.4 million. The increase in revenue was partially offset by an increase in gathering, transportation and marketing expenses of $1.7 million.

NGLs revenues for the three months ended March 31, 2026, increased $0.9 million, or 121%, compared to the three months ended March 31, 2025. NGLs production volumes increased 167% to 784 Bbls/day, resulting in an approximately $1.0 million increase in NGLs sales. Realized NGLs prices decreased 17% to $23.07 per Bbl, resulting in a decrease in revenue of approximately $0.2 million. The increase in NGLs revenue was partially offset by an increase in gathering, transportation and marketing expenses of $0.1 million.

Oil revenues for the three months ended March 31, 2026, increased $2.8 million, compared to the three months ended March 31, 2025. Oil production volumes increased to 459 Bbls/day, resulting in a $2.8 million increase in oil sales. Realized oil prices increased 18% to $69.76 per Bbl, resulting in an increase in revenue of approximately $0.4 million. The increase in oil revenue was partially offset by an increase in gathering, transportation and marketing expenses of $0.3 million.

Commodity derivative losses totaled $5.3 million for the three months ended March 31, 2026, as compared to losses of $8.9 million for the three months ended March 31, 2025. The decrease in commodity derivative losses of $3.6 million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was due to changes in commodity prices.

Lease bonus revenue increased $0.5 million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. When we lease our acreage to an E&P operator, we generally receive a lease bonus payment at the time a lease is executed. These bonus payments are subject to significant variability from period to period based on the particular tracts of land that become available for releasing.

***Operating expenses***

General and administrative expenses for the three months ended March 31, 2026, increased $2.2 million, or 249%, as compared to the three months ended March 31, 2025. The increase was primarily attributable to a $0.7 million increase in legal and professional expenses related to one-time transaction expenses, a $0.8 million increase in employee and director expenses related to the growth of the Company, $0.1 million increase in franchise taxes, a $0.2 million increase in software expense and a $0.1 million increase in travel-related expenses.

Management fees for the three months ended March 31, 2026, increased $1.6 million, or 109%, compared to the three months ended March 31, 2025. Management fees paid to WHIC Manager are calculated as a percentage of assets under management and a percentage of all distributions paid to the Company shareholders and each continue to increase as the Company continues to issue equity and make additional acquisitions.

Depletion, depreciation and accretion for the three months ended March 31, 2026, increased $6.5 million, or 202%, compared to the three months ended March 31, 2025. The increase was due to a 146% increase in year-over-year production volumes and a higher depletion rate, which increased to $1.66 per Mcfe for the three months ended March 31, 2026 from $1.36 per Mcfe for the three months ended March 31, 2025.

***Other Income and Expenses***

Interest expense relates to interest incurred on borrowings under our various credit facilities. The increase for the three months ended March 31, 2026, of $4.3 million, or 243%, compared to the three months ended March 31, 2025 was primarily due to a higher average amount outstanding under our Senior Notes.

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***Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024***

*Consolidated Results* 

The following tables summarize our consolidated revenue and expenses and production data for the years ended December 31, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Variance** | **Variance** |
|  | **2025** | **2024** | **Variance** | **Variance** |
|  | **(As Restated)** | | | |
|  | (**dollars in thousands, except for realized prices**) | (**dollars in thousands, except for realized prices**) | (**dollars in thousands, except for realized prices**) | (**dollars in thousands, except for realized prices**) |
|  **Production:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas (Mcf) | 16586178 | 7370198 | 9215980 | 125% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGLs (Bbls) | 210677 | 74350 | 136327 | 183% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil (Bbls) | 87970 | 3750 | 84220 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents (Mcfe)<sup>(1)</sup> | 18378060 | 7838798 | 10539262 | 134% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents per day (Mcfe / d)<sup>(1)</sup> | 50351 | 21417 | 28934 | 135% |
|  **Realized prices:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas (per Mcf) | $2.94 | $1.85 | $1.09 | 59% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGLs (per Bbl) | $21.94 | $25.50 | $(3.56) | -14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil (per Bbl) | $60.93 | $54.67 | $6.26 | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents (per Mcfe) | $3.20 | $2.01 | $1.19 | 59% |
|  **Average Realized Price After Effects of Derivative Settlements:** |  |  |  |  |
|  Natural gas (per Mcf) | $3.45 | $3.04 | $0.41 | 13% |
|  **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $50075 | $12702 | $37373 | 294% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | 16648 | (4418) | 21066 | 477% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 872 | 1166 | (294) | -25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 67595 | 9450 | 58145 | 615% |
|  **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 16585 | 2792 | 13793 | 494% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9966 | 4681 | 5285 | 113% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 | 13410 | 124% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 50788 | 18300 | 32488 | 178% |
|  **Operating income (loss)** | 16807 | (8850) | 25627 | -290% |
|  **Other expense:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 | 3480 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of assets | 123 |  | 123 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 | 3939 | 15131 | 384% |
|  Total other expense | 23032 | 4298 | 18734 | 436% |
|  Income (loss) before income taxes | (6225) | (13148) | 6923 | -53% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (2640) | (1587) | (1053) | 66% |
|  **Net income (loss)** | $(3585) | $(11561) | $7976 | -69% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings allocated to participating securities | (7341) | (5266) | (2075) | 39% |
|  **Net income (loss) attributable to common shareholders** | $(10926) | $(16827) | $5901 | -35% |

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<sup>(1)</sup> Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs. 

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***Revenue***

Our consolidated revenues for the year ended December 31, 2025, increased $58.1 million or 615%, as compared to the year ended December 31, 2024. The increase in revenues was primarily due to an increase in natural gas, NGL and oil royalty revenue and an increase in revenue from our commodity derivatives, partially offset by a decrease in lease bonus revenue. The increase in royalty revenues was primarily due to an increase in our production volumes of 134% from the acquisitions of additional mineral and royalty interests.

Natural gas revenues for the year ended December 31, 2025, increased $35.1 million or 258%, compared to the year ended December 31, 2024. Natural gas production volumes increased 125% to 45,442 Mcf/day resulting in a $27.1 million increase in natural gas sales primarily due to acquisitions of additional mineral and royalty interests. Realized natural gas prices increased 59% to $2.94 per Mcf resulting in an increase in revenue of $10.0 million. The increase in revenue was partially offset by an increase in gathering, transportation and marketing expenses of $4.5 million.

NGLs revenues for the year ended December 31, 2025, increased $2.7 million, or 144%, compared to the year ended December 31, 2024. NGLs production volumes increased 183% to 577 BBls/day resulting in an approximately $3.0 million increase in NGLs sales. Realized NGLs prices decreased 14% to $21.94 per Bbl resulting in a decrease in revenue of approximately $0.5 million. The increase in NGL revenue was partially offset by an increase in gathering, transportation and marketing expenses of $0.3 million.

Oil revenues for the year ended December 31, 2025, increased $5.2 million, compared to the year ended December 31, 2024. Oil production volumes increased to 241 Bbl/day resulting in a $5.1 million increase in oil sales. Realized oil prices increased 11% to $60.93 per Bbl resulting in an increase in revenue of approximately $0.5 million. The increase in oil revenue was partially offset by an increase in gathering, transportation and marketing expenses of $0.7 million.

Commodity derivatives gains totaled $16.6 million for the year ended December 31, 2025, as compared to losses of $4.4 million for the year ended December 31, 2024. The increase of $21.1 million for the year ended December 31, 2025 as compared to the year ended December 31, 2024 is due to changes in commodity prices.

Lease bonus revenue decreased, $0.3 million, or 25%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. When we lease our acreage to an E&P operator, we generally receive a lease bonus payment at the time a lease is executed. These bonus payments are subject to significant variability from period to period based on the particular tracts of land that become available for releasing.

***Operating expenses***

General and administrative expenses for the year ended December 31, 2025, increased $13.8 million, or 494%, as compared to the year ended December 31, 2024. The increase was primarily attributable to an $8.2 million increase in legal and professional expenses related to acquisitions, a $4.5 million increase in employee and director expenses related to the growth of the Company including certain non-recurring acquisition related payments during 2025, $0.2 million increase in franchise taxes, a $0.3 million increase in travel related expenses, a $0.2 million increase in software expense and a $0.1 million increase in rent related expenses.

Management fees for the year ended December 31, 2025, increased $5.3 million, or 113%, compared to the year ended December 31, 2024. Management fees paid to WHIC Manager are calculated as a percentage of assets under management and a percentage of all distributions paid to the Company shareholders and each continue to increase as the Company continues to issue equity and make additional acquisitions.

Depletion, depreciation and accretion for the year ended December 31, 2025, increased $13.4 million, or 124%, compared to the year ended December 31, 2024. The increase was due to a 134% increase in year-over-year production volumes partially offset by a lower depletion rate, which decreased to $1.31 per Mcfe for the year ended December 31, 2025 from $1.38 per Mcfe for the year ended December 31, 2024.

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***Other Income and Expenses***

Interest expense relates to interest incurred on borrowings under our various credit facilities. The increase for the year ended December 31, 2025, of $15.1 million, or 384%, compared to the year ended December 31, 2024 was primarily due to a higher average amount outstanding under our Senior Notes.

For the year ended December 31, 2025, losses on extinguishment of debt totaled $3.8 million. For the year ended December 31, 2024, losses on the extinguishment of debt totaled $0.4 million. During the year ended December 31, 2025, $3.8 million of previously capitalized deferred financing costs were written off when the Company amended and restated the Senior Notes. During the year ended December 31, 2024, $0.4 million of previously capitalized deferred financing costs were written off when the Company extinguished the Term Loan in September 2024 with proceeds received from the Senior Notes.

**Liquidity and Capital Resources** 

Historically, our primary sources of liquidity have been from capital raised from third-party investors, cash flows from operations and proceeds from the issuance of our Senior Notes. Following the completion of this offering, we expect our primary sources of liquidity to be the proceeds retained from this offering, cash flows from operations, and proceeds from any future issuances of debt or equity securities. Future sources of liquidity may also include other credit facilities we may enter into in the future and/or additional issuances of debt or equity securities. Historically, our primary uses of cash have been for the acquisition of mineral and royalty interests, the reduction of outstanding debt balances and the payment of dividends, and we expect our primary uses of cash going forward to be for the acquisition of mineral and royalty interests, the reduction of outstanding debt balances and the payment of dividends. Our ability to generate cash is subject to several factors, some of which are beyond our control, including commodity prices and general economic, financial, legislative, regulatory and other factors. In addition, there can be no assurance that we will pay any dividends to holders of our Class A common stock or preferred stock, or as to the amount of any such dividends. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant."

We believe internally generated cash flows from operations and access to capital markets will provide us with sufficient liquidity and financial flexibility to meet our cash requirements, including normal operating needs, debt service obligations, our return of capital program, and capital expenditures, for at least the next 12 months and allow us to continue to execute our strategy of acquiring attractive mineral and royalty interests that will position us to grow our cash flows and return capital to our stockholders. As an owner of mineral and royalty interests, we incur the initial cost to acquire our interests but thereafter do not incur any drilling or completion capital expenditures, which are entirely borne by the E&P operators and the other working interest owners. As a result, our only capital expenditures are related to our acquisition of additional mineral and royalty interests, and we have no subsequent capital expenditure requirements related to acquired properties. The amount and allocation of future acquisition-related capital expenditures will depend upon a number of factors, including the number and size of acquisition opportunities, our cash flows from operating, investing and financing activities and our ability to integrate acquisitions. We periodically assess changes in current and projected cash flows, acquisition and divestiture activities, and other factors to determine the effects on our liquidity. Our ability to generate cash flow is subject to a number of factors, many of which are beyond our control, including commodity prices, weather and general economic, financial and competitive, legislative, regulatory and other factors. We believe our cash flows from operations will be sufficient to fund our operating expenses, debt service obligations, and dividend payments for the next 12 months without accessing the capital markets. However, if we require additional capital for acquisitions or other reasons, we may raise such capital through additional borrowings, asset sales, offerings of equity and debt securities or other means. If we are unable to obtain funds needed or on acceptable terms, we may not be able to complete acquisitions that are favorable to us. There can be no assurance that capital markets financing will be available on favorable terms, or at all.

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As of March 31, 2026 and December 31, 2025, our cash and cash equivalents was $64.6 million and $29.0 million, respectively.

**Cash Flows for the Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025 (in thousands):**

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| | | |
|:---|:---|:---|
|  | **For the three months<br>ended March 31,** | **For the three months<br>ended March 31,** |
|  | **2026** | **2025** |
|  Net cash flows provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $2841 | $(230) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | (6522) | (114756) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | 39254 | 124734 |

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***Operating Activities***

Our operating cash flows are impacted by the variability in our revenues and operating expenses, as well as the timing of the related cash receipts and disbursements. Royalty payments may vary significantly from period to period as a result of changes in commodity prices, production mix and volumes of production sold by our E&P operators, as well as the timeliness and accuracy of payments from our E&P operators. These factors are beyond our control and are difficult to predict. Cash flows provided by operating activities for the three months ended March 31, 2026 were $2.8 million as compared to cash flows used in operating activities of $0.2 million for the three months ended March 31, 2025. The increase was primarily a result of the increase in our production of 146% due to acquisitions and an increase of 35% in our realized prices.

**Investing Activities** 

Cash flows used in investing activities totaled $6.5 million for the three months ended March 31, 2026, as compared to $114.8 million for the three months ended March 31, 2025, a decrease of $108.3 million due to the variance in our acquisitions of oil and gas properties, net of purchase price adjustments.

**Financing activities** 

Cash flows provided by financing activities for the three months ended March 31, 2026 totaled $39.3 million as compared to cash flows provided by financing activities of $124.7 million for the three months ended March 31, 2025. During the three months ended March 31, 2026, cash flows provided by financing activities was primarily related to $53.4 million of proceeds raised from the issuance of common and preferred stock. This was partially offset by dividends of $7.6 million paid to common and preferred stockholders during the three months ended March 31, 2026, and $6.3 million repayments of the Senior Notes.

During the three months ended March 31, 2025, cash flows provided by financing activities was primarily related to $84.4 million of additional proceeds from our Senior Notes, net of repayments, and $64.5 million of proceeds raised from the issuance of common and preferred stock. This was partially offset by preferred stock redemptions of $19.0 million and dividends of $3.2 million paid to common and preferred stockholders during the three months ended March 31, 2025.

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**Cash Flows for the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 (in thousands):** 

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| | | |
|:---|:---|:---|
|  | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  | **(As Restated)** | |
|  Net cash flows provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $13577 | $9447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | (309958) | (30392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | 320040 | 22061 |

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***Operating Activities***

Our operating cash flows are impacted by the variability in our revenues and operating expenses, as well as the timing of the related cash receipts and disbursements. Royalty payments may vary significantly from period to period as a result of changes in commodity prices, production mix and volumes of production sold by our E&P operators, as well as the timeliness and accuracy of payments from our E&P operators. These factors are beyond our control and are difficult to predict. Cash flows provided by operating activities for the year ended December 31, 2025 were $13.6 million as compared to $9.4 million for the year ended December 31, 2024. The increase was primarily a result of the increase in our production of 134% due to acquisitions and an increase of 59% in our realized prices.

***Investing Activities***

Cash flows used in investing activities totaled $310.0 million for the year ended December 31, 2025 as compared to $30.4 million for the year ended December 31, 2024, an increase of $279.6 million due to the variance in our acquisitions of oil and gas properties, net of purchase price adjustments.

***Financing activities***

Cash flows provided by financing activities for the year ended December 31, 2025 totaled $320.0 million as compared to cash flows provided by financing activities of $22.1 million for the year ended December 31, 2024.

During the year ended December 31, 2025, cash flows provided by financing activities was primarily related to $172.7 million of proceeds from our Senior Notes, net of repayments and $248.1 million of proceeds raised from the issuance of common and preferred stock. This was partially offset by dividends of $19.5 million paid to common and preferred stockholders during the year ended December 31, 2025, $75.4 million of common and preferred stock redemptions and $5.8 million of deferred financing costs.

During the year ended December 31, 2024, cash flows provided by financing activities was primarily related $45.0 million of additional proceeds from our Senior Notes, net of repayments, and $18.1 million of proceeds raised from the issuance of common and preferred stock. This was partially offset by common and preferred stock redemptions of $25.5 million and dividends of $13.2 million paid to common and preferred stockholders during the year ended December 31, 2024.

**Quantitative and Qualitative Disclosure About Market Risk** 

We are exposed to market risk, including the effects of adverse changes in commodity prices and interest rates and operator credit risk as described below. The primary objective of the following information is to provide quantitative and qualitative information about our potential exposure to market risks. The term "market risk" refers to the risk of loss arising from adverse changes in natural gas and oil prices and interest rates and operator credit risk. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures.

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***Commodity Price Risk***

Our major market risk exposure is in the pricing applicable to the crude oil, natural gas and NGLs production of our E&P operators, which affects the royalty payments we receive from our E&P operators. Realized pricing is primarily driven by the prevailing worldwide price for crude oil and spot market prices applicable to our natural gas production. Pricing for crude oil, natural gas and NGL production has been volatile historically and we expect this volatility to continue in the future. The prices that our E&P operators receive for production depend on many factors outside of our or their control.

A $0.10 per Mcf change in our realized natural gas price would have resulted in a $0.5 million change in our natural gas revenues for the three months ended March 31, 2026. A $1.00 per Bbl change in NGLs and oil prices would have resulted in a $0.1 million change in our NGLs and oil revenues for the three months ended March 31, 2026. Royalties on natural gas sales, NGL sales and oil contributed 84%, 6% and 10%, respectively, of our total royalty revenues for the three months ended March 31, 2026.

A $0.10 per Mcf change in our realized natural gas price would have resulted in a $1.7 million change in our natural gas revenues for the year ended December 31, 2025. A $1.00 per Bbl change in NGLs and oil prices would have resulted in a $0.3 million change in our NGLs and oil revenues for the year ended December 31, 2025. Royalties on natural gas sales, NGL sales and oil contributed 83%, 8% and 9%, respectively, of our total royalty revenues for the year ended December 31, 2025.

We may enter into derivative instruments from time to time, such as collars, swaps and basis swaps, to partially mitigate the impact of commodity price volatility. These hedging instruments allow us to reduce, but not eliminate, the potential effects of the variability in cash flow from operations due to fluctuations in oil, natural gas and NGL prices and provide increased certainty of cash flows related to certain of our acquisitions. However, these instruments provide only partial price protection against declines in oil, natural gas and NGL prices and may partially limit our potential gains from future increases in prices. Refer to "Note 4—Commodity Derivative Financial Instruments" for further information.

***Operator Credit Risk***

Our principal exposures to credit risk are through receivables generated by the production activities of our operators. The inability or failure of our significant operators to meet their obligations to us or their insolvency or liquidation may adversely affect our financial results. However, we believe the credit risk associated with our operators is acceptable.

***Interest Rate Risk***

Our primary exposure to interest rate risk results from outstanding borrowings under the Senior Notes which bears interest at a floating rate. The weighted average annual interest rate incurred on our borrowings under the Senior Notes during the three months ended March 31, 2026 was 10.3%. We estimate that an increase of 1.0% in the average interest rate during the three months ended March 31, 2026 would have resulted in an approximately $0.6 million increase in interest expense. The weighted average annual interest rate incurred on our borrowings under the Senior Notes during the year ended December 31, 2025 was 10.8%. We estimate that an increase of 1.0% in the average interest rate during the year ended December 31, 2025 would have resulted in an approximately $1.8 million increase in interest expense.

**Critical Accounting Policies and Related Estimates** 

The discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. Our critical accounting policies are described below to provide a better understanding of how we develop our assumptions and judgments about

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future events and related estimates and how they can impact our financial statements. A critical accounting estimate is one that requires our most difficult, subjective or complex estimates and assessments and is fundamental to our results of operations.

We base our estimates on historical experience and on various other assumptions we believe to be reasonable according to the facts and circumstances at the time the estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. There can be no assurance that actual results will not differ from those estimates and assumptions. This discussion and analysis should be read in conjunction with our consolidated financial statements and related notes.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Changes in estimates are accounted for prospectively.

Our estimates and classification of natural gas and oil reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering, and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions. These factors and assumptions include historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil and estimates of the future net cash flows may vary substantially.

Any significant variance in the assumptions could materially affect the estimated quantity of reserves, which could affect the carrying value of our natural gas and oil properties and/or the rate of depletion related to natural gas and oil properties.

***Gas and Oil Properties***

We use the successful efforts method of accounting for natural gas and oil producing properties, as further defined under Accounting Standards Codification 932, *Extractive Activities—Oil and Natural Gas*. Under this method, costs to acquire mineral interests in natural gas and oil properties are capitalized. The costs of non-producing mineral interests and associated acquisition costs are capitalized as unproved properties pending the results of leasing efforts and drilling activities of E&P operators on our interests. As unproved properties are determined to have proved reserves, the related costs are transferred to proved gas and oil properties. Capitalized costs for proved natural gas and oil mineral interests are depleted on a unit-of-production basis over total proved reserves. For depletion of proved gas and oil properties, interests are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic conditions.

***Impairment of Gas and Oil Properties***

We evaluate our proved properties for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When assessing proved properties for impairment, we compare the expected undiscounted future cash flows of the proved properties to the carrying amount of the proved properties to determine recoverability. If the carrying amount of proved properties exceeds the expected undiscounted future net cash flows, the carrying amount is written down to the properties' estimated fair value,

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which is measured as the present value of the expected future net cash flows of such properties. The factors used to determine fair value include estimates of proved reserves, future commodity prices, timing of future production, and a risk-adjusted discount rate. The proved property impairment test is primarily impacted by future commodity prices, changes in estimated reserve quantities, estimates of future production, overall proved property balances, and depletion expense. If pricing conditions decline or are depressed, or if there is a negative impact on one or more of the other components of the calculation, we may incur proved property impairments in future periods.

Unproved gas and oil properties are assessed periodically for impairment of value, and a loss is recognized at the time of impairment by charging capitalized costs to expense. Impairment is assessed based on when facts and circumstances indicate that the carrying value may not be recoverable, at which point an impairment loss is recognized to the extent the carrying value exceeds the estimated recoverable value. Factors used in the assessment include, but are not limited to, commodity price outlooks, current and future operator activity, and analysis of recent mineral transactions in the surrounding area.

***Crude Oil, Natural Gas and NGLs Reserve Quantities and Standardized Measure of Gas and Oil***

Our estimates of natural gas, crude oil and NGLs reserves and associated future net cash flows are prepared or audited by our independent reservoir engineers. The SEC has defined proved reserves as the estimated quantities of gas and oil which 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 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.

There are numerous uncertainties inherent in estimating quantities of proved crude oil, natural gas and NGLs reserves. Crude oil, natural gas and NGLs reserve engineering is a process of estimating underground accumulations of crude oil, natural gas and NGLs that cannot be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing and production subsequent to the date of the estimate may justify positive or negative revisions of reserve estimates.

***Revenue Recognition***

We record revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas, oil, and natural gas liquids sales from third-party operators may not be received for 30 to 120 days after the date production is delivered. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to expected sales volumes and prices for those properties are estimated and recorded based upon our royalty interest. Where available, historical actual data is used to calculate volume estimates for wells operated by third parties. If historical actual data is not available for these wells, engineering estimates are used to calculate expected volumes. As such, estimated volumes utilized in period end royalty income accruals are subject to revision as additional actual data becomes available and such revisions may have a material impact on our results of operations and our royalty income receivables. Pricing estimates are based upon actual prices realized in an area by adjusting the market price for the average basis differential from market on a basin-by-basin basis. We record the differences between our estimates and the actual amounts received for royalties from third parties in the month that payment is received from the operator. We have existing internal controls for our royalty income estimation process

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and related accruals, but actual third-party royalty income in future periods could differ materially from estimated amounts. Identified differences between our accrued revenue estimates and actual revenue received historically have not been significant.

Natural gas, NGLs and oil revenues from our mineral and royalty interests are recognized when control transfers at the wellhead.

We also earn revenue related to lease bonuses by leasing our mineral interests to E&P operators. We recognize lease bonus revenue when the lease agreement has been executed and payment is determined to be collectible.

**Internal Controls and Procedures** 

We are not currently required to comply with the SEC's rules implementing Section 404 of Sarbanes-Oxley, and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. Upon becoming a public company, we will be required to comply with the SEC's rules implementing Section 302 of Sarbanes-Oxley, which will require our management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of our internal control over financial reporting. We will not be required to have our independent registered public accounting firm attest to the effectiveness of our internal control over financial reporting under Section 404 until our first annual report subsequent to our ceasing to be an "emerging growth company" within the meaning of Section 2(a)(19) of the Securities Act. Notwithstanding that we are not currently required to make such a formal assessment, in the course of preparing our financial statements and building out our internal controls infrastructure, we have in the past identified, and may in the future identify, deficiencies in our internal control over financial reporting, including material weaknesses.

To comply with the requirements of being a public company, we will need to implement additional financial and management controls, reporting systems and procedures and hire additional accounting, finance and legal staff.

***Material Weaknesses in Internal Control over Financial Reporting***

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected in a timely basis.

In connection with the preparation of our unaudited consolidated financial statements for the three months ended March 31, 2026 and 2025, we identified material weaknesses in our internal control over financial reporting. The identified material weaknesses include (i) controls over the quarterly close and account reconciliations process related to the reconciliation of related party balances were not designed at a sufficient level of precision to prevent or detect material misstatements in a timely manner and (ii) controls over business combinations did not contain a control specific to the recording of post combination adjustments related to the business combination effective date.

Remediation steps are being taken to improve our internal control over financial reporting to address the underlying causes of the material weaknesses described above, including designing and implementing increased controls along with increasing oversight and review of controls. Specifically, we plan to institute new and enhanced controls to improve and formalize the level of precision applied to the review of our financial statements, including the development and documentation of detailed review procedures. As part of these planned control enhancements, we intend to establish documented protocols specifying the steps that our review process will entail, including the purpose of each schedule, the complexity of the underlying account(s), the specific items under review (e.g., footing errors, unexpected account balance fluctuations), the degree of judgment involved, and the source of reports and other data points used in the analysis. We also plan to introduce new documentation controls designed to ensure that sufficient supporting evidence exists to substantiate the

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amounts and balances included in our financial statements and to confirm that management review procedures were performed. We intend to continue evaluating and instituting additional controls and safeguards as necessary to fully remediate the identified material weaknesses.

While we believe that these efforts will improve our internal control over financial reporting, the implementation of these measures is ongoing and will require validation and testing of the design and operating effectiveness of internal controls over a sustained period of financial reporting cycles. If the steps we take do not remediate the material weaknesses in a timely manner, there could continue to be a reasonable possibility that these control deficiencies or others could result in a material misstatement of our annual or interim financial statements that would not be prevented or detected on a timely basis. If we are unable to successfully remediate our existing or any future material weaknesses, the accuracy of our financial reporting may be adversely affected, which could cause investors to lose confidence in our financial reporting and our share price may decline as a result.

Notwithstanding the identified material weaknesses, management believes that the financial statements and related financial information included in this prospectus fairly present, in all material respects, our balance sheets, statements of operations, statements of stockholders' equity (deficit) and statements of cash flows as of and for the periods presented. We will continue to assess the effectiveness of our internal control over financial reporting and take steps to remediate the known material weaknesses expeditiously.

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**BUSINESS** 

**Our Company** 

WhiteHawk is focused on being the premier natural gas mineral and royalty business in the United States. We are committed to delivering cash flow and total returns to our investors through the disciplined acquisition, active management and ownership of high-quality mineral and royalty interests. Our assets are concentrated in the Marcellus and Haynesville Shales, which are located in the Appalachian and Haynesville Basins, which are among the most productive and lowest-cost U.S. natural gas basins.<sup>48</sup> Upon completion of the offering, we will own the largest, high-quality publicly traded natural gas mineral portfolio in the United States.<sup>49</sup> As a mineral and royalty business, we do not pay any drilling-related capital expenditures and only minimal operating expenses on our properties. This results in a high-margin business and allows us to distribute a meaningful portion of our cash flow to investors, while providing them with potential for significant capital appreciation over time.

As of March 31, 2026, our portfolio spans approximately 3.4 million gross DSU acres, including 1.6 million gross DSU acres across the Appalachian and Haynesville Basins and represents an economic interest in approximately 13%<sup>50</sup> of all natural gas produced in the United States as of December 31, 2025. Further, we have more than 10,900 producing wells and more than 8,000 remaining identified undeveloped locations as of December 31, 2025. The Appalachian and Haynesville Basins form the core of U.S. natural gas production and are among the most prolific energy-producing regions globally. If measured against sovereign nations, the Appalachian Basin would rank as the world's second-largest natural gas producer, with daily production of approximately 33 Bcf/d, and the Haynesville Basin would rank eighth with daily production of approximately 13 Bcf/d.<sup>51</sup> In 2025, the Appalachian and Haynesville Basins together accounted for more than 50%<sup>52</sup> of total U.S. dry gas production, providing the foundation of domestic natural gas supply and export growth. Our mineral interests are concentrated in the core of these premier natural gas regions and offer long-term participation in two of the largest, most active and lowest-cost natural gas weighted basins in the United States.<sup>53</sup>

WhiteHawk's mineral interests are developed by many of the largest, most active and well-capitalized natural gas operators in the United States, including EQT (NYSE: EQT), Range Resources (NYSE: RRC), CNX Resources (NYSE: CNX), Antero Resources (NYSE: AR), Expand Energy (NASDAQ: EXE), Comstock Resources (NYSE: CRK) and Aethon Energy. In 2025, approximately 18%<sup>54</sup> of all wells drilled in the Appalachian and Haynesville Basins were located on acreage in which we hold royalty interests. Our significant footprint across both basins provides alignment and scale with these premier operators. In 2025, EQT was the largest natural gas producer in the Appalachian Basin, and Expand Energy was the largest producer in the Haynesville Basin.<sup>55</sup> In the same year, approximately 49% of EQT's Appalachian production and 57% of Expand Energy's Haynesville production were sourced from acreage in which we hold royalty interests.<sup>56</sup> Because our mineral interests are concentrated within these operators' active and planned development areas, we can benefit directly from their scale, financial strength and efficiency. Our exposure to leading operators enables us to gain from their continuous development across commodity cycles and provides a resilient base for predictable cash flow growth.

Leveraging our scale and position alongside leading operators, we believe we are well positioned to capitalize on two powerful natural gas demand catalysts: AI driven electricity demand growth and expanding U.S. LNG exports. Natural gas remains the most reliable, scalable and cost-effective source of baseload power and

<sup>48</sup> EIA Short-Term Energy Outlook; Enverus Data.

<sup>49</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

<sup>50</sup> Enverus Data.

<sup>51</sup> World Energy Report.

<sup>52</sup> EIA Short-Term Energy Outlook.

<sup>53</sup> Enverus Data.

<sup>54</sup> Enverus Data.

<sup>55</sup> Enverus Data.

<sup>56</sup> Enverus Data.

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accounted for approximately 41%<sup>57</sup> of total U.S. electricity generation in 2025. The rapid buildout of AI and cloud-computing infrastructure is projected to create additional demand for natural gas-fired power generation, with a management-estimated 7.8 Bcf/d of total natural gas demand associated with new power plants expected to be constructed by 2031,<sup>58</sup> largely within WhiteHawk's Appalachian Basin footprint. In addition to an increase in domestic demand, global demand for U.S. natural gas is expected to further accelerate through LNG export growth. The United States will nearly double its LNG export capacity from approximately 17 Bcf/d<sup>59</sup> in 2025 to nearly 34 Bcf/d by 2031<sup>60</sup> as European and Asian buyers seek to diversify supply and reduce exposure to higher regional benchmark prices. The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position our mineral interests to benefit directly from this expansion in export capacity and feed-gas demand. Together, accelerating power demand from AI and the continued buildout of LNG export capacity, inclusive of announced projects, are expected to drive a structural step-change in U.S. natural gas demand—driving roughly a 38%<sup>61</sup> increase in combined demand by 2031 compared to 2025 levels. WhiteHawk believes it offers public investors direct equity exposure to the powerful tailwinds of AI-driven power demand and expanding U.S. LNG exports without drilling-related capital expenditures.

WhiteHawk is led by one of the most experienced and acquisitive management teams in the minerals and royalties sector. Collectively, our leadership has more than 125 years of industry experience and has completed over $31 billion of energy transactions across the upstream, midstream, and minerals and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy (NYSE: ATLS), Atlas Pipeline Partners (NYSE: APL) and Falcon Minerals Corporation (NASDAQ: FLMN), each of which were successful public companies that generated substantial shareholder value through disciplined growth, accretive acquisitions and strategic monetizations.

Since its inception, WhiteHawk has completed eight large acquisitions, making it the most active acquirer of natural gas mineral and royalty properties in the United States.<sup>62</sup> More importantly, these acquisitions have been highly accretive to shareholders and have resulted in approximately 38%<sup>63</sup> cash-on-cash return to our initial investors through 49 months of consecutive cash dividend payments, plus an additional 41% increase in shareholder value through three share dividends through March 31, 2026. We continue to execute a focused consolidation strategy in a fragmented market, targeting accretive acquisitions to expand scale, enhance returns and extend development visibility. Our ability to consistently source, evaluate and close accretive transactions ahead of broader market consolidation underscores WhiteHawk's leadership as a focused, data-driven consolidator with a proven track record of value creation.

**Our History** 

We were founded in 2022 with a clear mission to build the premier natural gas minerals and royalty platform. Our thesis was that natural gas minerals and royalties represent one of the most efficient and resilient ways to participate in the energy value chain, combining high-margin cash yield with exposure to long-term macro tailwinds in U.S. natural gas demand.

We began executing on a strategy to consolidate high-quality, core-basin mineral and royalty assets from institutional and private equity owners. We identified an estimated $3 – $5 billion of natural gas minerals and royalties in the Appalachian and Haynesville Basins that were held by private equity funds nearing the end of their investment cycles and fund lives with few buyers of scale in the market. This imbalance created an attractive entry

<sup>57</sup> EIA Electric Monthly.

<sup>58</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>59</sup> EIA Natural Gas Exports. Includes current operating and under construction projects only.

<sup>60</sup> EIA Electric Monthly.

<sup>61</sup> EIA Natural Gas Monthly.

<sup>62</sup> Enverus Data.

<sup>63</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

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point to acquire premium assets at compelling valuations. WhiteHawk was created to capitalize on this opportunity, bringing technical expertise, public market experience and fresh capital to a fragmented sector.

In addition to our strategic acquisitions of larger, consolidated natural gas mineral packages, we launched a dedicated "ground game" in 2025 that has become an important component of our growth strategy. This approach builds on a meaningful track record, including at Falcon Minerals Corporation, where our team successfully executed more than 30 acquisitions through a similar strategy. Leveraging significant in-house land and engineering expertise alongside an established network of regional brokers, we seek to efficiently source and underwrite smaller-scale opportunities that we believe are highly accretive. Since December 2025, we have completed 14 such transactions totaling approximately $39.7 million. We expect the ground game to remain a component of our acquisition strategy, with the goal of adding scale consistent with our existing portfolio quality.

This opportunity may be enhanced by the fragmentation across our existing asset base. With an average net revenue interest of approximately 0.51% across our DSUs as of March 31, 2026 and an average royalty rate of approximately 17% as of December 31, 2025, we believe there is more than 33 times our current ownership potentially available for acquisition within our existing footprint.

As of March 31, 2026, WhiteHawk has accumulated natural gas mineral and royalty assets across approximately 3.4 million gross DSU acres focused primarily on the Appalachian and Haynesville Basins. Since our inception in 2022, WhiteHawk has made eight acquisitions and through March 31, 2026 has paid more than 49 consecutive monthly cash dividends, representing approximately 38%<sup>64</sup> cash-on-cash return to our initial investors, plus an additional 41% increase in shareholder value through three share dividends.

The figure below summarizes our acquisition history with respect to acquired NRAs on an 8/8<sup>th</sup> basis.

![LOGO](g86452g11a11.jpg)

Members of our management team were some of the early pioneers in the Marcellus Shale and, prior to the formation of WhiteHawk, collectively drilled some of the first horizontal wells in the Marcellus Shale. With over 20 years of Appalachian Basin-specific experience, our land and engineering teams specialize in identifying and acquiring high-quality land assets that underpin valuable, long-term mineral and royalty interests. This technical capability, combined with our extensive history of operating in Appalachia, proprietary deal sourcing, and data-

<sup>64</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

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driven analysis, allows WhiteHawk to efficiently negotiate and close transactions while maintaining disciplined capital allocation. In addition to utilizing technical analysis, we strive to acquire mineral and royalty interests in properties with top-tier E&P operators. We seek E&P operators that are well-capitalized, have a strong operational track record, and we believe will continue to increase production through the application of the latest drilling and completion techniques across our mineral and royalty interests, and have demonstrated resilience through commodity cycles.

The U.S. natural gas minerals and royalties market remains highly fragmented with many private owners and few scaled aggregators. This structural fragmentation presents a significant opportunity for continued consolidation. WhiteHawk is one of the few active, large mineral buyers focused exclusively on natural gas. Upon completion of this offering, WhiteHawk will be the only public natural gas mineral and royalty company with meaningful, scaled exposure to the Appalachian and Haynesville Basins, allowing WhiteHawk to capitalize on this fragmented market.<sup>65</sup> We intend to leverage our position to pursue disciplined, accretive acquisitions that enhance portfolio quality, expand our footprint in premier basins, and drive sustainable growth in cash flow and shareholder returns over time.

**Natural Gas Industry and Future Development** 

Natural gas is the largest source of U.S. electricity generation and a cornerstone of global energy supply, accounting for approximately 41%<sup>66</sup> of total domestic power output in 2025. U.S. natural gas demand has the potential to increase from 107 Bcf/d in 2025 to approximately 148 Bcf/d by 2031, supported by structural growth across LNG exports, power generation expansion, rising electricity demand from data centers and AI, and advanced manufacturing.<sup>67</sup>

U.S. LNG export capacity could expand to around 45 Bcf/d by 2031, supported by approximately 34 Bcf/d currently operating or under construction and an additional 11 Bcf/d of capacity announced but not currently under construction<sup>68</sup>. If all export capacity is active by 2031, this would represent a 28% increase in natural gas demand over 2025 levels from LNG exports alone. The continued growth in LNG exports is expected to position the United States as the world's leading supplier of natural gas to Europe and Asia as international buyers seek secure, competitively priced and transparent alternatives to oil-indexed or regional benchmarks.

<sup>65</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

<sup>66</sup> EIA Electric Monthly.

<sup>67</sup> Management estimate based on EIA Short-Term Energy Outlook.

<sup>68</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities.

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The figure below illustrates estimated liquefaction capacity for existing, under construction and announced projects as of December 2025:

![LOGO](g86452g52b60.jpg)

*Note: Liquefaction Capacity reflects Peak Nameplate Capacity. Commercial Operation includes commissioned projects. Source: EIA Liquefaction Report.* 

Additionally, as of December 2025, WhiteHawk has identified 21 publicly announced new or planned natural gas power plants in close proximity to WhiteHawk's Appalachia mineral position, which are estimated to generate natural gas demand of approximately 7.8 Bcf/d by 2031.<sup>69</sup>

In addition to the growing LNG export demand, the accelerated buildout of AI and cloud-computing infrastructure is creating a new and durable source of electricity demand, much of which is expected to be met by natural gas-fired power generation due to its reliability, scalability and relatively favorable carbon intensity. WhiteHawk's mineral position in the Appalachian Basin lies in close proximity to major data center growth corridors across Virginia, Ohio and Pennsylvania, where WhiteHawk has identified, as of December 2025, publicly announced 28 new data centers representing what management estimates will generate 3.3 Bcf/d of incremental natural gas demand, of which approximately 1.7 Bcf/d is under construction or has achieved FID and approximately 1.6 Bcf/d is in pre-FID and announced stages.<sup>70</sup>

Together, these structural demand drivers are expected to sustain drilling and development activity on WhiteHawk's mineral acreage for years to come. With concentrated exposure to some of the most productive natural gas basins in the United States, we believe our mineral and royalty portfolio is well positioned to deliver stable production growth, increase royalty income and durable cash flow, and grow dividends and net asset value per share over the long term.

<sup>69</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand .

<sup>70</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand .

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**Our Focus on Key Gas Basins** 

WhiteHawk's assets are concentrated in the Appalachian Basin, Haynesville Basin and Mid-Continent ("Mid-Con") region, which collectively represent the core of U.S. natural gas production. Each region combines substantial resource depth, high-quality operators, and access to major infrastructure and end-markets.

***Appalachian Basin (Pennsylvania / West Virginia / Ohio)***

The Appalachian Basin, located primarily in Pennsylvania, West Virginia and Ohio, constitutes the largest and most prolific natural gas basin in the United States and a critical source of future global natural gas supply, as of December 2025.<sup>71</sup> The basin's scale, consistent reservoir quality and access to infrastructure have made it a cornerstone of U.S. natural gas production and a key driver of the nation's transition toward cleaner, lower-carbon energy. The Appalachian Basin's importance to future natural gas growth is underpinned by its vast remaining resource potential and direct connectivity to both domestic and international demand. The basin benefits from an extensive network of gathering, processing and long-haul pipeline infrastructure that links production to major population centers and growing data center markets in the Northeast, Midwest and Northern Virginia, as well as to LNG export markets along the Gulf Coast. Continued expansion of southbound takeaway capacity and LNG facilities is expected to reinforce the region's role as a primary growth engine for U.S. natural gas supply over the next decade.

In the Appalachian Basin, the Marcellus Shale has transformed the United States from a net importer to a net exporter of natural gas over the past 20 years. During 2025, it accounted for roughly one-third of total U.S. dry gas production, producing at some of the lowest breakeven costs in the United States.<sup>72</sup> Exceptional pressure regimes, thick, laterally continuous pay zones and modern completion techniques allow operators to achieve recoveries and sustained productivity that rank among the highest in the industry.<sup>73</sup> The Utica Shale provides additional stacked-pay potential that enhances the economic life and development diversity of the basin and already accounted for 8% of total U.S. natural gas production in 2025.<sup>74</sup>

As of March 31, 2026, WhiteHawk's interests cover approximately 975,000 gross DSU acres across Southwest Pennsylvania and Northern West Virginia, operated by leading Appalachian Basin producers, including EQT, Range Resources, CNX Resources and Antero Resources. These operators possess deep drilling inventories, strong balance sheets and a proven track record of disciplined development. Throughout 2024 and 2025, approximately 47% of wells turned in line by these operators in the Appalachian Basin were drilled on our acreage.<sup>75</sup>

The Appalachian Basin forms the foundation of WhiteHawk's asset base and provides investors with exposure to a region positioned to remain a highly productive source of low-cost, scalable natural gas for the U.S. and global markets for decades to come.

***Haynesville Basin (East Texas / North Louisiana)***

The Haynesville Basin, located in East Texas and North Louisiana, is one of the largest and most productive natural gas plays in the United States and a cornerstone of future U.S. supply growth. The basin's combination of exceptional reservoir quality, proximity to demand centers and direct access to the Gulf Coast has positioned it as a critical source of feed gas for the rapidly expanding LNG export market.

Strategically located within 150 miles of the Gulf Coast, the Haynesville Basin provides a direct and cost-advantaged connection between prolific supply and fast-growing global demand. It is estimated that nearly all

<sup>71</sup> EIA Short-Term Energy Outlook.

<sup>72</sup> EIA Short-Term Energy Outlook.

<sup>73</sup> Enverus Data.

<sup>74</sup> EIA Short-Term Energy Outlook.

<sup>75</sup> Enverus Data.

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existing and planned U.S. LNG export terminals—including Sabine Pass, Cameron, Golden Pass, Port Arthur and Plaquemines—source a substantial portion of their feed gas from the Haynesville Basin. This geographic alignment ensures that the basin will remain a key driver of U.S. natural gas export growth for decades as global markets seek cheaper, reliable sources of natural gas and lower-carbon alternatives to coal and oil.

Since its renewed development in 2017, the Haynesville Basin has delivered steady volume growth supported by high-deliverability wells and low full-cycle development costs.<sup>76</sup> The basin is characterized by over pressured, laterally extensive shale formations that yield high initial production rates and long-lived reserves.<sup>77</sup> Continued advances in lateral lengths, completion designs and multi-well pad efficiencies have enhanced recoveries and reduced breakeven costs, making the Haynesville Basin one of the most economically viable sources of natural gas in the world. In addition to the Haynesville Shale, our acreage also benefits from additional resources from the Cotton Valley and Mid-Bossier formations, which together produced approximately 3.2%<sup>78</sup> of U.S. natural gas production in 2025.

As of March 31, 2026, WhiteHawk's Haynesville interests cover approximately 600,000 gross DSU acres across East Texas and North Louisiana, operated by leading producers such as Expand Energy, Comstock Resources and Aethon Energy. These operators are among the most active and technically proficient in the basin, each maintaining multi-year drilling inventories and robust infrastructure connectivity.

The Haynesville Basin represents another cornerstone of WhiteHawk's portfolio, providing exposure to one of the highest-margin, infrastructure-advantaged gas plays in the United States. Its proximity to LNG export facilities, industrial corridors and petrochemical complexes along the Gulf Coast positions the basin—and WhiteHawk's assets within it—at the center of the next phase of global natural gas demand growth.

***Mid-Con Region (Anadarko Basin, Oklahoma)***

The Mid-Con region, anchored by the Anadarko Basin in Oklahoma and extending into portions of Texas, Arkansas and Kansas, is one of the most historically productive and geologically diverse hydrocarbon basins in the United States. The region has been a major contributor to U.S. natural gas and liquids supply for nearly a century and remains a critical source of stable production, infrastructure access and development optionality.

With its combination of legacy production, existing infrastructure and ongoing technical innovation, the Anadarko Basin continues to play an important role in maintaining domestic supply reliability and supporting industrial and power-generation demand across the central United States. The basin's multi-zone potential and moderate development costs have led to renewed operator activity, as natural gas demand expands through LNG exports and increasing AI-driven electricity demand.<sup>79</sup>

The Anadarko Basin is characterized by multiple geological formations—including the SCOOP (South Central Oklahoma Oil Province), STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher counties), Woodford Shale and Cherokee Shale, which together provide exposure to both dry gas and liquids-rich zones. These intervals offer extensive development potential through established drilling and completion techniques, allowing operators to target high-return projects across varying commodity price environments. The basin's mature gathering, processing and takeaway infrastructure ensures efficient market access to the Gulf Coast, Midwest and Mid-Con gas hubs.

As of March 31, 2026, WhiteHawk's Mid-Con position spans approximately 1.7 million gross DSU acres across the SCOOP, STACK and Arkoma plays, operated by established and well-capitalized producers such as Continental Resources, Devon Energy and Ovintiv. These operators maintain deep, de-risked inventories and continue to optimize recovery through longer laterals, tighter spacing and improved completion designs.

<sup>76</sup> EIA Short-Term Energy Outlook.

<sup>77</sup> Upstream Outlook Report.

<sup>78</sup> Enverus Data.

<sup>79</sup> Enverus Data.

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**Our Mineral and Royalty Interests** 

***Nature of Our Mineral and Royalty Interests***

WhiteHawk's portfolio consists primarily of producing and undeveloped mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region that provide the right to receive a share of production revenue from the sale of natural gas, NGLs and oil produced by third-party operators. These interests include fee mineral ownership, non-participating royalty interests and overriding royalty interests.

We own two types of interests: mineral and royalty interests and non-operating working interests. Of the mineral and royalty interests, we own three types: mineral interests, NPRIs and ORRIs. For the three months ended March 31, 2026, our mineral and royalty interests accounted for approximately 98% of our royalty revenues and our non-operating working interests accounted for approximately 2% of our royalty revenues. For the year ended December 31, 2025, our mineral and royalty interests accounted for approximately 99% of our royalty revenues and our non-operating working interests accounted for approximately 1% of our royalty revenues. Each of these interests have different rights and obligations as further described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mineral Interests:* Mineral interests are perpetual real property interests rights of the owner to exploit,
mine and/or produce the minerals lying below the surface of the property. When we lease our mineral interests to third-party operators, we retain a royalty interest—the ongoing right to a portion of the revenue from any oil or gas later
produced—and receive a one-time payment known as a lease bonus. Typically, the resulting royalty interest is a cost-free percentage of production revenues for minerals extracted from the acreage. Holders
of royalty interests are generally not responsible for capital expenditures or lease operating expenses but may be responsible for certain post-production expenses and typically have limited environmental liability. While mineral interests are
usually perpetual, gas and oil leases have a set term. Therefore, if drilling stops or no production occurs during that term, the lease ends, and the mineral owner is free to lease the rights again to another party and receive another lease bonus.
Royalty interests expire upon the expiration of the gas and oil lease, but the mineral interests would be retained. Mineral interests represented approximately 92% of our mineral and royalty interests as of March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Participating Royalty Interest.* A **  NPRI has the same
characteristics as a standard royalty interest except that the term "non-participating" indicates that the interest owner has the right to participate in the execution of gas and oil leases but
does not share in the bonus or rentals from a gas and oil lease. NPRIs represented approximately 3% of our mineral and royalty interests as of March 31, 2026.

working interest. Like royalty interests, ORRIs do not confer an obligation to make capital expenditures or pay for lease operating expenses and have limited environmental liability; however, ORRIs may be calculated net of post-production expenses,
depending on how the ORRI is structured. ORRIs that are carved out of working interests are linked to the same underlying gas and oil lease that created the working interest and, therefore, ORRIs are typically subject to expiration upon the
expiration or termination of the underlying gas and oil lease. ORRIs represented approximately 5% of our mineral and royalty interests as of March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Operating Working Interest.* In addition to our mineral
and royalty interests, we own certain non-operating working interests acquired in connection with the PHX Acquisition. Non-operating working interest holders have the right to extract minerals from acreage leased pursuant to a gas and oil lease from
a mineral interest holder. Holders of working interests are responsible for their pro rata share of capital expenditures and lease operating expenses, but holders of working interests only receive revenues after distributions have first been made to
holders of royalty interests and ORRIs. Working interests expire upon the termination or expiration of the underlying gas and oil lease. As of March 31, 2026, our non-operating working interest portfolio consisted of 437 gross (18.1 net)
wells located exclusively in the Mid-Con region and accounted for approximately 2% of our royalty revenues. These non-operating working interests represented approximately 7% of our total proved

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reserves as of December 31, 2025, 4% of our total production for the three months ended March 31, 2026 and 3% of our total production for the year ended December 31, 2025. <br>

As of March 31, 2026, our interest covered approximately 3.4 million gross DSU acres and, as of December 31, 2025, more than 10,900 producing wells. As of December 31, 2025 we held an economic interest in 13% of total U.S. natural gas production and in 2025 we had an interest in 18% of new wells drilled in the Appalachian and Haynesville Basins.<sup>80</sup> As of December 31, 2025, the estimated proved natural gas, NGL and crude oil reserves attributable to our interest are 86% natural gas, 10% NGLs and 4% crude oil, with $293,690 thousand of PV-10. Of these proved reserves, 98% were classified as PD reserves and 2% were classified as undeveloped reserves. For the year ended December 31, 2025, the average net daily production associated with our portfolio was 50,351 Mcfe/d, consisting of 45,442 Mcf/d of natural gas, 577 Bbls/d of NGLs and 241 Bbls/d of oil and on a pro forma basis, average net daily production of 67,255 Mcfe/d, consisting of 59,621 Mcf/d of natural gas, 790 Bbls/d of NGLs and 483 Bbls/d of oil. For the three months ended March 31, 2026, the average net daily production associated with our portfolio was 64,270 Mcfe/d, consisting of 56,812 Mcf/d of natural gas, 784 Bbls/d of NGLs and 459 Bbls/d of oil.

We earn most of our revenues through a steady stream of royalties and lease bonuses, all tied to the success of gas and oil production on our acreage. We differ from traditional upstream gas and oil companies as we, and any other royalty interest owner, do not pay for nor operate wells. All of the costs and risks involved in finding, drilling and maintaining wells are borne by the working interest owners. Royalty interest owners generally are only responsible for certain taxes tied to production, such as severance and property taxes, and fees related to transportation or marketing of gas and oil.

Because we do not pay for drilling or bear the risks of dry holes or operational setbacks, we typically enjoy much higher operating margins compared to our third-party operators. Our business model is more capital-light, focusing on management and acquisition of various mineral and royalty interests, rather than the direct, costly development capital necessary for the extraction of resources. This gives us a recurring income stream with less variability in free cash flow than the traditional exploration and production business.

As an active consolidator of mineral and royalty interests, WhiteHawk works closely with third-party operators throughout the lifecycle of each asset—from negotiating and optimizing lease terms at inception, to confirming timely in-pay status as wells are drilled and completed and continuously validating that we receive the correct revenue interest over the life of the well. This engagement has supported improved royalty terms, more favorable pricing provisions, and reduced post-production deductions, enhancing realized revenues and long-term returns.

WhiteHawk's mineral and royalty ownership model allows the Company to generate stable, capital-efficient cash flow from producing assets while maintaining organic growth potential through the continued development of its undeveloped mineral position without the need to pay for associated drilling capital expenditures. Over time, we have reinvested proceeds from lease bonuses and free cash flow from our assets to expand our footprint in the most economically attractive natural gas basins in the United States while maintaining a conservative balance sheet and disciplined capital strategy.

<sup>80</sup> Enverus Data.

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**Key Operators** 

We strive to acquire mineral and royalty interests in properties with top-tier E&P operators that are well capitalized, have a strong operational track record and that we believe will continue to increase production through the application of the latest drilling and completion techniques. Our royalty interests are developed and operated by many of the highest-quality natural gas producers in the United States. The graphs below highlight the portion of production from top operators captured on our position across each region in 2025:<sup>81</sup>

![LOGO](g86452g26a01.jpg) ![LOGO](g86452g26b02.jpg) ![LOGO](g86452g26c03.jpg)

Collectively, in 2025, these 14 operators listed above controlled more than 79% of WhiteHawk's leased acreage and represented the leading producers in the Appalachian Basin, Haynesville Basin and Mid-Con region. Their scale, balance-sheet strength and technological capabilities enhance recovery efficiency, reduce breakeven costs and provide reliable long-term development of our mineral interests—directly supporting our ability to pay sustainable dividends to our investors, although there can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the amount of any such dividends. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant."

**Strengths** 

We believe that the following competitive strengths will allow us to successfully capitalize on our market opportunities, execute our business strategies, and achieve our primary business objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Premier, large-scale natural gas mineral and royalty company in America's most productive gas basins.*** We have assembled one of the largest pure-play natural gas mineral and royalty portfolios in the United States, spanning approximately 3.4 million gross DSU acres as of March 31, 2026 and providing exposure to more than 10,900
producing wells as of December 31, 2025. Our acreage is concentrated in the Appalachian and Haynesville Basins, two of the most productive and lowest-cost sources of natural gas in the United States, which together accounted for more than 50%
of total U.S. dry gas production<sup>82</sup> in 2025, 81% of our royalty revenue in 2025 and 80% of our royalty revenue for the three months ended March 31, 2026. These basins feature thick, laterally
continuous shale intervals, high-pressure reservoirs, and well-developed gathering and long-haul pipeline infrastructure that enable some of the lowest breakeven development economics in the United States. The fact that 11% and 33%<sup>83</sup> of Appalachian and Haynesville Basin wells, respectively, were drilled on our acreage in 2025, is indicative that our assets are located in the core development areas of these premier gas plays. We
believe our proximity to the core development areas of these basins will provide long-term visibility into drilling activity and sustained royalty cash flow through consistent operator investments and stacked play potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-margin, capital-light business model.*** WhiteHawk's business model is designed to
generate substantial cash flow as our mineral and royalty interests have no drilling capital expenditure requirements

<sup>81</sup> Enverus Data. Percentages exceed 100% due to rounding. 

<sup>82</sup> EIA Short-Term Energy Outlook.

<sup>83</sup> Enverus Data.

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and minimal operating costs. Our mineral and royalty interests allow us to capture the economic benefits of natural gas development without bearing the capital risk or inflationary cost pressures typical of traditional E&P companies because we do not incur drilling, completion, lease operating expenses, or plugging and abandonment obligations at the end of a well's productive life. This capital-light model enables us to convert a significant portion of our revenue directly into free cash flow. Our recurring costs are limited primarily to production taxes, gathering, processing, and transportation expenses, and modest general and administrative overhead. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-quality assets supported by top-tier operators with visible development activity*.** Our mineral interests are operated by leading, well-capitalized E&P companies in some of the most productive and economically attractive natural gas basins in the United States. In 2025, the Appalachian Basin
accounted for approximately 38% of the total U.S. natural gas production,<sup>84</sup> with WhiteHawk's acreage operated by premier producers including EQT, Antero Resources, Range Resources and CNX
Resources. Combined, these operators accounted for approximately 96% of our royalty revenue in the Appalachian Basin in 2025, and approximately 97% of our royalty revenue in the Appalachian Basin for the three months ended March 31, 2026. The
Haynesville Basin contributed approximately 14% of total U.S. natural gas production in 2025,<sup>85</sup> with WhiteHawk's acreage operated by premier producers including Expand Energy, Comstock
Resources and Aethon Energy. Combined, these operators accounted for approximately 58% of our royalty revenue in the Haynesville Basin for 2025 and approximately 52% of our royalty revenue in the Haynesville Basin for the three months ended
March 31, 2026. As of March 31, 2026, our portfolio includes nearly 430 WIPs and permitted locations, and more than 8,000 remaining identified undeveloped locations. We believe this embedded inventory provides a visible, multi-year growth
runway that requires no additional capital investment from us. Our exposure to operators with strong balance sheets, basin-leading drilling productivity, and disciplined capital programs is designed to enhance the stability of our production base
and support long-term royalty cash flow generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Capturing value from AI-driven electricity demand growth.*** We are positioned to benefit from the accelerating rise in electricity demand driven by AI and data center expansion, much of which is expected to be met by natural gas. Natural gas is the primary fuel for U.S. power generation accounting for
approximately 41%<sup>86</sup> of total electricity output in 2025. In line with this trend, our Appalachian Basin acreage is located near 21 publicly announced new or planned natural gas fired power
plants representing what management estimates to be approximately 7.8 Bcf/d of total natural gas demand associated with new power plants expected by 2031.<sup>87</sup> The ongoing expansion of AI-driven and digital-infrastructure power needs is expected to support long-term natural gas consumption and price stability, encouraging sustained operator investment and development activity on our mineral
acreage and providing predictable recurring cash flows that can be distributed to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Positioned to capitalize on LNG export growth.*** The EIA estimates U.S. LNG export capacity will
nearly double from approximately 17 Bcf/d in 2025 to nearly 34 Bcf/d by 2031<sup>88</sup>, as European and Asian buyers seek secure, competitively priced supply and diversify away from oil-indexed benchmarks or regional international benchmarks such as JKM (Asia) and TTF (Europe), where the average pricing is 3-4x Henry Hub pricing in the United States for
the year 2025.<sup>89</sup> In addition, as of December 2025, approximately 28 Bcf/d of incremental LNG capacity is in various stages of regulatory review and development, representing further upside to
long-term U.S. export potential.<sup>90</sup> The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position

<sup>84</sup> EIA Short-Term Energy Outlook.

<sup>85</sup> EIA Short-Term Energy Outlook.

<sup>86</sup> EIA Electric Monthly.

<sup>87</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>88</sup> EIA Natural Gas Exports. Excludes announced projects.

<sup>89</sup> FactSet LNG Pricing.

<sup>90</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities

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our assets to benefit directly from this expansion. Sustained growth in U.S. LNG exports is expected to drive long-term feed-gas demand from the basins where our mineral interests are concentrated, for years to come.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Proven management team with a track record of public company value creation and accretive growth.*** Our management team is among the most experienced and acquisitive in the minerals sector, with more than 125 years of combined industry experience and over $31 billion of completed energy transactions across the upstream, midstream, and
mineral and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy, Atlas Pipeline Partners and Falcon Minerals, each a successful public company that created substantial shareholder value through
disciplined growth, accretive acquisitions, and strategic monetization. Since our founding, WhiteHawk has been the most active acquirer of natural gas minerals and royalties, completing eight large transactions across the most prolific gas-oriented basins in the United States.<sup>91</sup> Our ability to consistently source, evaluate, and close accretive transactions underscores WhiteHawk's
leadership as a focused, data-driven consolidator with proven expertise in capital allocation, M&A execution and public-market stewardship.

**Strategies** 

Our primary business objective is to deliver shareholder value through dividends and total return from our mineral interests in premier natural gas-weighted properties. We intend to accomplish this objective by executing the following key strategies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Provide sustained income to investors through strong Cash Available for Distribution generation and cash dividends.*** We expect initially to pay dividends from our Cash Available for Distribution with the remaining cash flow to be used for additional acquisitions that meet our investment criteria or to maintain our conservative capital structure.
As mineral and royalty owners, we benefit from the continued organic development of our acreage and are able to convert a high percentage of our revenues to Cash Available for Distribution. We believe that our mineral and royalty interests are
positioned for growth as E&P operators continue to concentrate on the Appalachian Basin, Haynesville Basin and Mid-Con region to meet growing global demand for natural gas. Since our inception in 2022, we
have paid 49 consecutive monthly common equity dividends, totaling approximately $37 million and representing a cash-on-cash return of approximately 38%<sup>92</sup> to our initial investors through March 31, 2026. We believe our efficient, conservatively levered structure, with low capital intensity and disciplined financial management, provides a
sustainable foundation for attractive dividend yields, balance sheet flexibility, and long-term value creation for shareholders. There can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the amount of
any such dividends. See "Risk Factors—Risks Related to Our Business—We expect to distribute a substantial majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions" and
"Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and
may be limited…" for additional discussion of factors that could impact our ability to pay dividends, including covenants under our Senior Notes and Revolving Credit Facility. Please also read "Dividend Policy,"
"Description of Material Indebtedness," "Certain Relationships and Related Party Transactions—Internalization" and "Certain Relationships and Related Party Transactions—Investment Management
Agreement—Liquidity Incentive Fee" for other factors that might affect our ability or the amount of cash available to pay dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Strategically source and acquire de-risked, cash-flowing natural gas mineral and royalty interests of scale from long-term partnerships.*** Our strategy focuses on acquiring high-quality mineral and royalty interests that generate immediate cash flow and offer long-term development visibility. We target
assets operated by leading, well-capitalized producers in the core of the Appalachian Basin,

<sup>91</sup> Enverus Data.

<sup>92</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

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Haynesville Basin, and Mid-Con region, where continued drilling activity provides durable revenue growth without direct capital risk exposure. WhiteHawk differentiates itself through a disciplined, partnership-oriented sourcing approach with private-equity sponsors and other institutional owners seeking liquidity from later-life funds. This positions WhiteHawk as one of the few large-scale consolidators of natural gas-weighted minerals, particularly in the Appalachian Basin, which remains underrepresented in public minerals markets. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Pursue disciplined, accretive acquisitions in premier natural gas plays.*** We intend to grow our
portfolio through the disciplined acquisition of high-quality natural gas mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region. By leveraging our management team's
extensive industry relationships, and proprietary geologic and title data, we target assets that can provide accretive growth in shareholder value while strengthening our production and reserve base. Since inception, we have been among the most
active consolidators in the natural gas minerals sector, completing eight transactions that have materially increased our scale and enhanced cash flow. These acquisitions have been highly accretive to shareholders and have resulted in approximately
38%<sup>93</sup> cash-on-cash return to our initial investors. We believe current market conditions remain highly favorable for
consolidation, as fragmented ownership across numerous private sellers continues to create opportunities for accretive acquisitions that meet our investment criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Optimize portfolio to maximize Cash Available for Distribution and maintain diversified exposure.*** We actively manage our portfolio to prioritize acreage with a strong cash-flow base, visible near-term development, and substantial future inventory. A core component of this strategy is maintaining a broad, diversified mineral footprint
across multiple core natural gas basins, encompassing an average NRI of 0.69% in more than 10,900 producing wells as of December 31, 2025, with additional wells consistently in various stages of development across a footprint exceeding
3.4 million gross DSU acres as of March 31, 2026. This scale and diversity provide exposure to the most prolific, lowest-cost natural gas plays in the United States while reducing reliance on any single operator or well. The result is a
balanced portfolio designed to generate resilient cash flow and mitigate volatility through commodity cycles. Through disciplined asset management, targeted reinvestment, and continued optimization, we seek to enhance portfolio productivity,
strengthen cash flow stability and grow our dividend over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Maintain conservative and flexible capital structure to support our business and facilitate long-term operations.*** We are committed to maintaining a conservative capital structure that will afford us the financial flexibility to execute our business strategies on an ongoing basis. We expect to maintain a prudent level of debt to support our
acquisition and growth strategy while preserving balance sheet flexibility. We believe that the combination of cash flow from operations, proceeds from this offering, and selective use of other debt and equity financings will provide us with
sufficient liquidity to pursue accretive acquisitions, enhance our cash flow profile, and return capital to our shareholders. We intend to manage our leverage conservatively and finance future acquisitions through cash flow from operations or
opportunistically utilizing equity or debt to support disciplined growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Commitment to responsible natural gas development and governance excellence.*** Natural gas, the
primary driver of our royalty income, is a critical, lower-emission component of the modern energy mix and remains central to meeting global demand for reliable and affordable power. As a cleaner-burning fuel, it provides consistent and scalable
energy that complements renewable energy and supports grid stability. The operators developing our mineral acreage, including EQT, Range Resources, Antero Resources and CNX Resources, have each adopted measurable standards focused on reducing
emissions and promoting responsible development. With all of our assets located in the most economic natural gas basins in the United States, we are positioned to benefit from the growing recognition of natural gas as a reliable, cleaner source of
energy. We also intend to reinforce the

<sup>93</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 35%. 

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durability of our business through rigorous corporate governance, transparency, and alignment with our shareholders. Our governance framework emphasizes independence, accountability, and disciplined capital allocation. We believe our governance framework reduces our risk profile and sustains investor confidence through commodity cycles. We believe our adherence to governance best practices and partnerships with responsible operators differentiate WhiteHawk as a transparent, sustainable, and income-oriented energy investment capable of delivering attractive returns over the long term. <br>

**Our Acquisition History** 

We completed our first acquisition in 2022 when we acquired an aggregate 25% undivided interest in the natural gas-weighted mineral and royalty assets of the TRR Seller located in the Appalachian Basin of southwestern Pennsylvania. The assets are primarily located in Washington and Greene counties in Pennsylvania, which WhiteHawk believes represent some of the highest quality natural gas reserves in the United States. This initial position was anchored by best-in-class natural gas operators EQT, Range Resources and CNX Resources. This initial position established our footprint in the Marcellus Shale.

In 2023, we expanded into the Haynesville Shale, acquiring minerals in two separate transactions from Mesa Minerals Partners II, LLC and affiliated entities across northwestern Louisiana and East Texas operated by best-in-class producers including Expand Energy, Aethon Energy and Comstock Resources. This transaction marked a pivotal step in building a diversified, multi-basin platform, pairing Appalachia's predictable base with Haynesville's price-responsive growth and direct exposure to Gulf Coast LNG demand. The Mesa acquisitions were completed through two separately negotiated transactions, closing in the first and third quarters of 2023. Later that year, we doubled our Marcellus position through an acquisition of an additional 25% interest in our existing footprint of natural gas mineral and royalty assets from the TRR Seller.

In 2024, we deepened our Appalachian presence with a 20% undivided interest in other natural gas mineral and royalty assets of an affiliate of the TRR Seller, adding acreage in Pennsylvania and West Virginia, and increasing WhiteHawk's Appalachian footprint to approximately 975,000 gross DSU acres. This acquisition also added more significant exposure to Antero Resources, along with increased exposure to EQT, Range Resources and CNX Resources. The assets are primarily located in Washington and Greene counties in Pennsylvania, and Wetzel and Marshall counties in West Virginia.

In the first quarter of 2025, we acquired additional Marcellus Shale mineral and royalty interests in the acquisition of the remaining 50% interest in natural gas mineral and royalty assets of the TRR Seller. In June 2025, we acquired PHX. The PHX Acquisition increased our mineral and royalty ownership position by acquiring additional mineral and royalty interests in the Haynesville Shale, as well as the SCOOP/STACK, Bakken, Arkoma and others. The PHX Acquisition also increased our exposure to some of its top third-party operators, including Expand Energy, Comstock Resources and Aethon Energy in the Haynesville Shale, while adding other top operators, including Continental Resources and Devon Energy in the SCOOP/STACK region in Oklahoma. As a result of the PHX Acquisition, WhiteHawk added approximately 1.8 million gross DSU acres of premier natural gas mineral and royalty assets, significantly expanding its footprint in the core of the Haynesville Shale in East Texas/North Louisiana and diversifying its portfolio into the SCOOP/STACK region.

***Haynesville Assets***

On March 2, 2026, the Company and its affiliate entered into a definitive purchase and sale agreement to acquire the Haynesville Assets. The Haynesville Assets cover approximately 150,000 gross DSU acres and will further increase the Company's exposure to high-quality development across the Haynesville and Mid-Bossier formations. The assets are concentrated in core areas of the basin and are operated by established, well-capitalized operators. The Haynesville Assets acquisition closed on April 3, 2026. We funded the purchase price of the Haynesville Assets acquisition primarily through the issuance of approximately $37.8 million of shares of Series D preferred stock. See "Description of Capital Stock—Preferred Stock—Series D Preferred Stock."

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**Natural Gas, NGL and Oil Data** 

***Proved Reserves***

*Evaluation of Proved Reserves*. Our proved reserve estimates as of December 31, 2025 and 2024 are based on reserve reports prepared by CG&A and Schaper Energy, respectively, our independent petroleum engineers. The reports of CG&A and Schaper Energy contain further discussion of the reserves estimates and their preparation procedures.

With respect to our 2025 reserve report, the technical person primarily responsible for supervising the preparation of the reserves estimates set forth in the CG&A report is Mr. W. Todd Brooker, P.E., President of Cawley, Gillespie & Associates, Inc. Prior to joining CG&A in 1992, Mr. Brooker worked in Gulf of Mexico drilling and production engineering at Chevron U.S.A. His experience includes extensive projects in conventional and unconventional reservoirs across all major U.S. basins, including oil and gas shales, coalbed methane, waterfloods and complex, faulted structures. His current responsibilities include reserve and economic evaluations, fair market valuations, expert reporting and testimony, field studies, pipeline resource assessments, development planning and acquisition/divestiture analysis. Mr. Brooker graduated with honors from The University of Texas at Austin with a Bachelor of Science in Petroleum Engineering. He is a licensed Professional Engineer in the State of Texas, a member of the Society of Petroleum Engineers (SPE) and serves on the board of the Society of Petroleum Evaluation Engineers (SPEE).

CG&A meets or exceeds the requirements relating to professional qualifications, independence, objectivity and confidentiality set forth in the standards pertaining to estimating and auditing oil and gas reserves information. CG&A does not own an interest in any of our properties and is not employed by us on a contingent basis.

With respect to our 2024 reserve report, the technical person primarily responsible for preparing the reserve estimates set forth in the reserve reports incorporated herein is Mr. Andrew Schaper, P.E., President of Schaper Energy. Prior to joining Schaper Energy, Mr. Schaper acted as the Head of Americas A&D Origination at Bank of America Merrill Lynch in Houston, Texas. Prior to his time at Bank of America Merrill Lynch, Mr. Schaper held positions with Citigroup, Quantum Resources Management LLC and Newfield Exploration Company. He spent the first several years of his career acting as a reservoir engineer in both development and exploratory capacities focused on domestic basins. His experience includes significant projects in both conventional and unconventional resources in every major U.S. producing basin, including gas and oil shale plays, conventional fields, and secondary recovery operations. His current responsibilities include reserve and economic evaluations, fair market valuations, field studies, acquisition/divestiture analysis and expert witness support for the foregoing topics.

Mr. Schaper graduated Summa Cum Laude from Texas A&M University with a Bachelor of Science degree in Electrical Engineering specializing in Power Systems, and holds a Master of Engineering degree in Petroleum Engineering from Texas A&M University, a Master in Business Administration degree from The University of Texas at Austin and a Doctor of Engineering degree in Engineering from Texas A&M University with a focus in Nuclear, Energy & Environmental Engineering. Mr. Schaper is a licensed Professional Engineer in the State of Texas and is a Certified Petroleum Engineer (SPEC<sup>®</sup>) with the Society of Petroleum Engineers ("SPE") and a member of the Society of Petroleum Evaluation Engineers ("SPEE").

Mr. Schaper meets or exceeds the requirements with regard to qualifications, independence, objectivity and confidentiality set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. Schaper Energy does not own an interest in any of our properties, nor is it employed by us on a contingent basis.

The summary of our 2024 report with respect to our proved reserve estimates as of December 2024 is included as an exhibit to the registration statement of which this prospectus forms a part.

We maintain a staff of petroleum engineers who work closely with our management team and our independent petroleum engineers to ensure the integrity, accuracy and timeliness of the data used to calculate our proved

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reserves relating to our properties. Our management team meets with our independent reserve engineers periodically during the period covered by the proved reserve report to discuss the assumptions and methods used in the proved reserve estimation process. We provide historical information to our independent petroleum engineers for our properties, such as ownership interest, natural gas and oil production, commodity prices and our estimates of our operators' operating and development costs. John Picton, our Vice President of Engineering, is primarily responsible for overseeing the review of our reserve estimates. Mr. Picton has substantial reservoir and operations experience with more than 15 years of experience. Prior to joining our Company full-time in April 2025 and as a consultant since April 2023, Mr. Picton previously held roles at Quantum Energy Partners, Teton Range LLC, Jefferies Financial Group, Inc., LINN Energy, LLC, Occidental Petroleum Corp. and Citation Oil & Gas Corp.

The preparation of our proved reserve estimates were reviewed in accordance with our internal control procedures. These procedures, which are intended to ensure reliability of reserve estimations, include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and verification of historical production data, which data is based on actual production as reported by
our operators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review by Mr. Picton of all of our reported proved reserves, including the review of all significant reserve
changes and all new PUDs additions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review of reserve estimates by Mr. Picton or under his direct supervision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• direct reporting responsibilities by Mr. Picton to our Chief Operating Officer.

*Estimation of Proved Reserves*. In accordance with rules and regulations of the SEC applicable to companies involved in oil and natural gas producing activities, proved reserves are those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations. The term "reasonable certainty" means deterministically, the quantities of oil and/or natural gas are much more likely to be achieved than not, and probabilistically, there should be at least a 90% probability of recovering volumes equal to or exceeding the estimate. All of our proved reserves as of December 31, 2025 and 2024 were estimated using a deterministic method. The estimation of reserves involves two distinct determinations. The first determination results in the estimation of the quantities of recoverable oil and natural gas and the second determination results in the estimation of the uncertainty associated with those estimated quantities in accordance with the definitions established under SEC rules. The process of estimating the quantities of recoverable reserves relies on the use of certain generally accepted analytical procedures. These analytical procedures fall into four broad categories or methods: (i) production performance-based methods; (ii) material balance-based methods; (iii) volumetric-based methods; and (iv) analogy. These methods may be used singularly or in combination by the reserve evaluator in the process of estimating the quantities of reserves. Reserves for proved developed producing wells were estimated using production performance methods for the vast majority of properties. Certain new producing properties with very little production history were forecast using a combination of production performance and analogy to similar production, both of which are considered to provide a reasonably high degree of accuracy. Non-producing reserve estimates, for developed and undeveloped properties, were forecast using analogy methods. This method provides a reasonably high degree of accuracy for predicting proved developed non-producing and PUDs for our properties, due to the abundance of analog data.

To estimate economically recoverable proved reserves and related future net cash flows, we considered many factors and assumptions, including the use of reservoir parameters derived from geological and engineering data that cannot be measured directly, economic criteria based on current costs and the SEC pricing requirements and forecasts of future production rates.

Under SEC rules, reasonable certainty can be established using techniques that have been proven effective by actual production from projects in the same reservoir or an analogous reservoir or by other evidence using reliable technology

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that establishes reasonable certainty. Reliable technology is a grouping of one or more technologies (including computational methods) that have been field-tested and have been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation. To establish reasonable certainty with respect to our estimated proved reserves, the technologies and economic data used in the estimation of our proved reserves have been demonstrated to yield results with consistency and repeatability, and include production and well test data, downhole completion information, geologic data, electrical logs, radioactivity logs, core data, and historical well cost and operating expense data.

*Summary of Reserves*.*** The following tables present our estimated net proved reserves as of December 31, 2025 and 2024, based on our proved reserve estimates as of such dates, which have been prepared by CG&A and

Schaper Energy, respectively, our independent petroleum engineering firms, in accordance with the rules and regulations of the SEC. All of our proved reserves are located in the United States. The increase in our estimated net proved reserves over this period was primarily the result of an increase in commodity prices.

The table below summarizes our present value and reserves as of December 31, 2025:

---

| | |
|:---|:---|
|  | **WhiteHawk<sup>(1)</sup>** |
|  | (dollars in thousands) |
|  **Estimated proved developed producing reserves:** |  |
|  Natural gas (MMcf) | 154137 |
|  NGLs (MBbls) | 2914 |
|  Oil (MBbls) | 1154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **178544** |
|  **Estimated proved developed non-producing reserves:** |  |
|  Natural gas (MMcf) | 19094 |
|  NGLs (MBbls) | 459 |
|  Oil (MBbls) | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **23066** |
|  **Estimated proved undeveloped reserves:** |  |
|  Natural gas (MMcf) | 4149 |
|  NGLs (MBbls) | 84 |
|  Oil (MBbls) | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **4864** |
|  **Estimated proved reserves:** |  |
|  Natural gas (MMcf) | 177380 |
|  NGLs (MBbls) | 3457 |
|  Oil (MBbls) | 1392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **206473** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Standardized Measure($)** | $**266326** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **PV-10 ($)<sup>(3)</sup>** | $**293690** |

---

(1) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $3.387 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $65.34 per barrel as of December 31, 2025 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $3.03 per Mcf of gas, $22.03 per
barrel of NGLs and $62.99 per barrel of oil as of December 31, 2025.

(2) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

(3) PV-10 is a non-GAAP financial
measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of
discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before

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deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves. See "—Reconciliation of Standardized Measure to PV-10."

The table below summarizes our, PHX and the TRR Seller's present value and reserves as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **WhiteHawk<sup>(1)</sup>** | **PHX<sup>(2)</sup>** | **TRR<br>Seller<sup>(3)</sup>** |
|  | (dollars in thousands) | (dollars in thousands) | (dollars in thousands) |
|  **Estimated proved developed producing reserves:** |  |  |  |
|  Natural gas (MMcf) | 64783 | 41648 | 47103 |
|  NGLs (MBbls) | 690 | 1320 | 653 |
|  Oil (MBbls) | 23 | 943 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **69061** | **55227** | **51105** |
|  **Estimated proved developed non-producing reserves:** |  |  |  |
|  Natural gas (MMcf) | 469 | 901 | 2424 |
|  NGLs (MBbls) | 11 | 2 | 61 |
|  Oil (MBbls) | 0 | 5 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **535** | **944** | **2814** |
|  **Estimated proved undeveloped reserves:** |  |  |  |
|  Natural gas (MMcf) | 16469 | 6758 | 0 |
|  NGLs (MBbls) | 176 | 26 | 0 |
|  Oil (MBbls) | 16 | 99 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **17619** | **7506** | **0** |
|  **Estimated proved reserves:** |  |  |  |
|  Natural gas (MMcf) | 81721 | 49307 | 49527 |
|  NGLs (MBbls) | 877 | 1348 | 714 |
|  Oil (MBbls) | 39 | 1047 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **87213** | **63677** | **53919** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Standardized Measure($)<sup>(5)</sup>** | $**61933** | $**76255** | $**45088** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **PV-10($)<sup>(5)</sup>** | $**72153** | $**79642** | $**45088** |

---

(1) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.788 per Mcf of gas, $26.32 per
barrel of NGLs and $65.26 per barrel of oil as of December 31, 2024. Estimates of our reserves were based upon the reserve report prepared by our independent petroleum engineer, Schaper Energy Consulting, LLC.

(2) PHX's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry
Hub spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West
Texas Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $2.051 per Mcf of gas, $20.968 per
barrel of NGLs and $73.477 per barrel of oil as of December 31, 2024. Estimates of PHX's reserves were based upon the reserve report prepared by PHX's independent petroleum engineer, Cawley, Gillespie & Associates, Inc.

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(3) The TRR Seller's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.44 per Mcf of gas,
$23.67 per barrel of NGLs and $71.51 per barrel of oil as of December 31, 2024. Estimates of TRR Seller's reserves were based upon the reserve report prepared by TRR Seller's independent petroleum engineer, Ryder Scott Company,
LP.

(4) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

(5) PV-10 is a non-GAAP financial
measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of
discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before
deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows
attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may
utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of
discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves. See
"—Reconciliation of Standardized Measure to PV-10."

The following table provides information regarding our gross and net drilling locations by basin and reserve category as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **PDP** | **WIPs** | **Permits** | **Other<br>Locations** | **Total** |
|  **Basin / Region** |  |  |  |  |  |
|  Appalachia | 2322 | 150 | 79 | 2563 | 5114 |
|  Haynesville | 2203 | 64 | 30 | 1487 | 3784 |
|  Mid-Continent | 5492 | 65 | 21 | 3866 | 9444 |
|  Other | 930 | 15 | 6 | 437 | 1388 |
|  **Total Gross Location Count** | **10947** | **294** | **136** | **8352** | **19729** |
|  **Total Net Location Count** | **75.2** | **1.2** | **0.3** | **26.46** | **103.22** |

---

*Summary of Undeveloped Locations*. The following table presents our estimated undeveloped inventory as of December 31, 2025, which have been audited by our independent petroleum engineering firm, CG&A. CG&A's review considered only technical criteria in reviewing undeveloped locations and did not attempt to determine commerciality of any location or intent by operators to develop such locations identified by the Company. Further, no reserves (except for those presented as part of CG&A's reserve report dated March 13, 2026, with respect to the Company's proved reserves as of December 31, 2025) have been quantified beyond identifying numbers of viable undeveloped locations based on their technical review.

We identify drilling locations based on our assessment of current geologic, engineering and land data. This includes DSU formation, current well spacing and typical lateral length information derived from state agencies and operations of the E&P companies drilling our mineral interests. Our extensive inventory includes locations in the Appalachian Basin, Haynesville Basin, Mid-Continent Region and other basins and regions.

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The following table provides information regarding our gross and net locations by region or basin based on technical parameters as of December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Net Undeveloped<br>Location Count<sup>(4)</sup>** | **Average Lateral<br>Length** |
| **Region / Basin** | **Included in Proved<br>Reserves<sup>(2)</sup>** | **Other**<br>**Locations<sup>(3)</sup>** | **Total** | **Total** | **(feet)** |
|  Appalachian Basin | 229 | 2563 | 2792 | 8.7 | 13246 |
|  Haynesville Basin | 94 | 1487 | 1581 | 3.1 | 9267 |
|  Mid-Continent Basin<sup>(5)</sup> | 86 | 3866 | 3952 | 14.1 | 9314 |
|  Other<sup>(6)</sup> | 21 | 437 | 458 | 2.1 | 9864 |

---

(1) Numbers of gross well locations may vary based on actual lateral lengths drilled by operators.

(2) Includes Proved Undeveloped locations included as part of CG&A's reserve report dated March 13,
2026 with respect to the Company's proved reserves as of December 31, 2025. Includes WIPs and permits as defined by management.

(3) Includes locations not included as part of CG&A's reserve report dated March 13, 2026 with respect to
the Company's proved reserves as of December 31, 2025; however, such locations have been audited and approved by CG&A. Includes other undeveloped locations, as defined by management.

(4) Reflects management's estimated net revenue interest multiplied by Total Gross Undeveloped Locations as
audited by CG&A.

(5) Includes locations in the SCOOP, STACK, Cherokee, Arkoma and Fayetteville.

(6) Includes locations in the Bakken.

*Reconciliation of Standardized Measure to PV-10*. PV-10 is a non-GAAP financial measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves.

The following table presents a reconciliation of PV-10 to the most directly comparable GAAP financial measure for the period indicated (in thousands):

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  | **2024** | **2025** |
|  Standardized measure | $61933 | $266326 |
|  Present value of future income tax discounted 10% | 10220 | 27364 |
|  PV-10 of proved reserves | 72153 | 293690 |

---

**PUDs** 

As of December 31, 2025, we estimated our PUD reserves to be 4,149 MMcf of natural gas, 84 MBbls of NGLs and 35 MBbls of oil, for a total of 4,864 MMcfe. As of December 31, 2024, we estimated our PUD reserves to be 16,469 MMcf of natural gas, 176 MBbls of NGLs and 16 MBbls of oil, for a total of 17,619 MMcfe. PUDs will be converted from undeveloped to developed as the applicable wells begin production.

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The following table summarize our changes in PUDs during the year ended December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Natural**<br>**Gas**<br>**(Mmcf)** | **Crude**<br>**Oil**<br>**(Mbbl)** | **NGL**<br>**(Mbbl)** | **Proved<br>Undeveloped<br>Reserves<br>(MMcfe)<sup>(1)</sup>** |
|  | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  **Balance, December 31, 2024** | 16469 | 16 | 176 | 17619 |
|  Acquisitions of reserves |  |  |  |  |
|  Extensions and discoveries | 2255 | 20 | 69 | 2785 |
|  Divestiture of minerals in place |  |  |  |  |
|  Revisions of previous estimates | (5256) | 9 | (68) | (5602) |
|  Transfers to estimated proved developed | (9319) | (10) | (93) | (9939) |
|  **Balance, December 31, 2025** | 4149 | 35 | 84 | 4864 |

---

(1) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

Changes in PUDs that occurred during 2025 were primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• well additions, extensions and discoveries of approximately 2.8 Bcfe. 2.8 Bcfe was added as proved undeveloped
over 232 gross locations due to increased operator activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative revisions of approximately 7.5 Bcfe. 5.3 Bcfe decrease over 228 gross locations being reclassified to
non-proved due to changes in operator development. 2.2 Bcfe decrease over 23 locations being reclassified to non-proved due to changes in operator unit configuration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• positive revisions of approximately 1.1 Bcfe. 1.1 Bcfe increase over 531 gross locations due to wells that were
identified as having a WhiteHawk ownership.

As a mineral and royalty interests owner, we do not incur any capital expenditures or lease operating expenses in connection with the development of our PUDs, which costs are borne entirely by the operator. As a result, during the twelve months ended December 31, 2025, we did not have any expenditures to convert PUDs to proved developed reserves.

We identify drilling locations based on our assessment of current geologic, engineering and land data. This includes DSU formation and current well spacing information derived from state agencies and the operations of the E&P companies drilling our mineral interests. We generally do not have evidence of approval of our operators' development plans, however we do rely on publicly available information from our third-party operators. As a mineral and royalty company, our PUDs are limited exclusively to locations for which we have public confirmation that the third-party operator has initiated the drilling process for a specific well location. For our purposes, this includes WIPs, where third-party operators have publicly reported a spud date or otherwise confirmed that drilling has commenced, as well as wells that have been drilled but are not yet producing, including those undergoing completion activities. We also include locations covered by approved, publicly available drilling permits where the operator has received regulatory authorization but has not yet commenced drilling. Accordingly, all of our PUDs consist solely of WIPs or permitted locations supported by public operator disclosures, and we do not include speculative or unpermitted future development locations in our PUD inventory. As of December 31, 2025 and 2024, approximately 2% and 20%, respectively, of our total proved reserves were classified as PUDs.

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**Natural Gas, NGL and Production Prices and Costs** 

***Production and Price History***

The following table sets forth information regarding net production of natural gas, NGLs and oil, and certain price and cost information for each of the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months<br>Ended<br>March 31, 2026** | **Three Months<br>Ended<br>March 31, 2025** | **Year Ended<br>December 31, 2025** | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2024** |
|  | **WhiteHawk** | **WhiteHawk** | **WhiteHawk** | **WhiteHawk** | **TRR Seller** | **PHX** |
|  **Production:** |  |  |  |  |  |  |
|  Natural gas (Mcf) | 5113078 | 2184405 | 16586178 | 7370198 | 5826061 | 7969948 |
|  NGLs (Bbls) | 70562 | 26457 | 210677 | 74350 | 67883 | 133609 |
|  Oil (Bbls) | 41311 | 1273 | 87970 | 3750 | 2513 | 178357 |
|  Equivalents (Mcfe) | <br> 5784316 | <br> 2350783 | <br> 18378060 | <br> 7838798 | <br> 6248432 | 9841746 |
|  Equivalents per day (Mcfe) | 64270 | 26120 | 50351 | 21417 | 18209 | 26964 |
|  **Realized Prices** |  |  |  |  |  |  |
|  Natural gas (Mcf) | $4.73 | $3.57 | $2.94 | $1.85 | $1.78 | $2.19 |
|  NGLs (Bbls) | $23.07 | $27.81 | $21.94 | $25.50 | $25.08 | $21.95 |
|  Oil (Bbls) | $69.76 | $59.27 | $60.93 | $54.67 | $63.82 | $74.59 |
|  Equivalents (Mcfe)<sup>(1)</sup> | $4.96 | $3.66 | $3.19 | $2.01 | $1.96 | $3.42 |
|  **Average Realized Price After Effects of Derivative Settlements:** |  |  |  |  |  |  |
|  Natural gas (per Mcf) | $3.60 | $3.36 | $3.45 | $3.04 | $3.26 | $2.75 |
|  **Average costs (per Mcfe):** |  |  |  |  |  |  |
|  Transportation, gathering, and marketing | $— | $— |  |  | $0.39 | $0.46 |
|  Depletion, depreciation and accretion | $1.67 | $1.36 | $1.32 | $1.38 | $0.54 | $0.98 |
|  Interest expense, net | $1.04 | $0.74 | $1.04 | $0.50 | $0.31 | $0.26 |
|  General and administrative | $0.54 | $0.38 | $0.90 | $0.36 | $0.16 | $1.19 |
|  **Total** | $3.25 | $2.48 | $3.26 | $2.24 | $1.40 | $3.19 |

---

(1) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

**Productive Wells** 

Productive wells consist of producing horizontal and vertical wells, wells capable of production and exploratory, development or extension wells that are not dry wells. As of December 31, 2025, we owned mineral and royalty interests in 10,947 gross productive wells and 75.2 net productive wells.

The majority of our mineral and royalty interests are leased to our operators with 94% of our 90,729 leased net mineral acres being held by production as of December 31, 2025. In addition, we had 4,585 net mineral acres that were not leased as of December 31, 2025.

***Drilling Results***

For the year ended December 31, 2025, 411 gross and 1.4 net wells turned to production. As of December 31, 2025, we owned interests in a total of 10,947 gross productive wells (75.2 net wells), which represents our

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cumulative producing well count across all of our mineral and royalty interests as of such date, rather than wells turned to production during the year, and our third-party operators turned to production 411 gross and 1.4 net wells on acreage in which we own mineral and royalty interests. As a holder of mineral and royalty interests, we generally are not provided information as to whether any wells drilled on the properties underlying our acreage are classified as exploratory or as developmental wells. We are not aware of any dry holes drilled on the acreage underlying our mineral interests during the relevant periods.

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| | | |
|:---|:---|:---|
|  | **For the Year<br>Ended<br>December 31,** | **For the Year<br>Ended<br>December 31,** |
|  | **2025** | **2024** |
|  **Productive Gross** | 411 | 257 |
|  **Dry** | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** | 411 | 257 |
|  **Productive Net** | 1.4 | 0.59 |

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***Acreage***

The following table sets forth historical information about our developed and undeveloped net mineral acres as of March 31, 2026.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Net<br>Mineral<br>Acres** | **Avg. Net<br>Revenue<br>Interest<sup>(2)</sup>** | **NRA<br>(1/8<sup>th</sup><br>Basis)<sup>(1)</sup>** | **Total<br>NRAs<br>(100%<br>Basis)** |
|  Developed | 53005 | 0.69% | 77008 | 9626 |
|  Undeveloped | 42522 | 0.32% | 61778 | 7722 |
|  Total | **95526** | **0.51%** | **138785** | **17348** |

---

(1) Standardized to a 1/8th royalty: The hypothetical number of acres in which an owner owns a standardized 12.5%
royalty interest, calculated by multiplying the actual net mineral acres by the average royalty rate and dividing by 12.5%. For example, an owner who has a 25% royalty interest in 100 acres would own 200 NRAs on a 1/8th basis.

**Regulation of Environmental and Occupational Safety and Health Matters** 

Natural gas, NGL and oil exploration, development and production operations are subject to stringent laws and regulations governing the discharge of materials into the environment or otherwise relating to protection of the environment, natural resources, and occupational health and safety. These laws and regulations have the potential to impact production by our third-party operators on our properties, including requirements to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain permits to conduct regulated activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit or prohibit drilling activities on certain lands lying within wilderness, wetlands, habitats of listed or
protected species and other protected areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrict the types, quantities and concentration of materials that can be released into the environment in the
performance of drilling and production activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• initiate investigatory and remedial measures to mitigate pollution from former or current operations, such as
restoration of drilling pits and plugging of abandoned wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• apply specific health and safety criteria addressing worker protection; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impose substantial liabilities for pollution resulting from operations.

Failure to comply with environmental laws and regulations may result in the assessment of administrative, civil and criminal sanctions, including monetary penalties, the imposition of strict, joint and several liability,

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investigatory and remedial obligations and the issuance of injunctions limiting or prohibiting some or all of the operations on our properties. Moreover, these laws, rules and regulations may restrict the rate of natural gas, NGL and oil production below the rate that would otherwise be possible. The regulatory burden on the natural gas and oil industry increases the cost of doing business in the industry and consequently affects profitability. The trend in environmental regulation has been to place more restrictions and limitations on activities that may affect the environment or natural resources and thus, any changes in environmental laws and regulations or re-interpretation of enforcement policies that result in more stringent and costly construction, drilling, water management, completion, emission or discharge limits or waste handling, disposal or remediation obligations could increase the cost to our third-party operators of developing our properties. Moreover, accidental releases or spills may occur in the course of operations on our properties, potentially causing our third-party operators to incur significant costs and liabilities as a result of such releases or spills, including any third-party claims for damage to property, natural resources or persons.

Increased costs or operating restrictions on our properties as a result of compliance with environmental laws could result in reduced exploratory and production activities by our third-party operators on our properties and, as a result, our revenues and results of operations. The following is a summary of certain existing environmental, health and safety laws and regulations, each as amended from time to time, to which operations on our properties by our third-party operators are subject.

***Regulation of Transportation***

The sale and transportation of our natural gas, NGLs and crude oil is generally undertaken by our third-party operators (or by third parties at the direction of such operators) of our properties. Sales of crude oil, condensate and NGL are not currently regulated and are made at negotiated prices; however, Congress has enacted price controls in the past and could reenact price controls in the future. Sales of crude oil are affected by the availability, terms and cost of transportation. The transportation of oil in common carrier pipelines is also subject to rate regulation. The Federal Energy Regulatory Commission ("FERC") regulates interstate oil pipeline transportation rates under the Interstate Commerce Act. Intrastate oil pipeline transportation rates are subject to regulation by state regulatory commissions. The basis for intrastate oil pipeline regulation, and the degree of regulatory oversight and scrutiny given to intrastate oil pipeline rates, varies from state to state. Interstate and intrastate common carrier oil pipelines must provide service on a non-discriminatory basis. Under this open access standard, common carriers must offer service to all shippers requesting service on the same terms and under the same rates. When oil pipelines operate at full capacity, access is governed by pro-rationing provisions set forth in the pipelines' published tariffs.

FERC has endeavored to make natural gas transportation more accessible to natural gas buyers and sellers on an open and non-discriminatory basis. FERC has stated that open access policies are necessary to improve the competitive structure of the interstate natural gas pipeline industry and to create a regulatory framework that will put natural gas sellers into more direct contractual relations with natural gas buyers by, among other things, unbundling the sale of natural gas from the sale of transportation and storage services. Although FERC's orders do not directly regulate natural gas producers, they are intended to foster increased competition within all phases of the natural gas industry.

***Hazardous Substances and Waste Handling***

The Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), also known as the "Superfund" law, and comparable state laws impose strict, joint and several liability without regard to fault or the legality of the original conduct on certain classes of persons who are considered to be responsible for the release of a "hazardous substance" into the environment. Under CERCLA, these "responsible persons" may include the current or former owner or operator of the site where the release occurred, and entities that transport, dispose of or arrange for the transport or disposal of hazardous substances released at the site. These responsible persons may be subject to joint and several strict liability for the costs of cleaning up the hazardous substances that have

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been released into the environment, for damages to natural resources and for the costs of certain health studies. CERCLA also authorizes the EPA and, in some instances, third parties to act in response to threats to the public health or the environment and to seek to recover from the responsible classes of persons the costs they incur. It is not uncommon for neighboring landowners and other third-parties to file claims for personal injury and property damage allegedly caused by the hazardous substances released into the environment.

The Resource Conservation and Recovery Act ("RCRA") and comparable state laws regulate the management, generation, treatment, storage and disposal of hazardous and non-hazardous waste. With federal approval, individual states administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements. Drilling fluids, produced waters and most of the other wastes associated with the exploration, development and production of natural gas, NGLs and oil, if properly handled, are currently exempt from regulation as hazardous waste under RCRA and, instead, are regulated under RCRA's less stringent non-hazardous waste provisions, state laws or other federal laws. However, it is possible that certain natural gas, NGLs and oil drilling and production wastes now classified as non-hazardous could be classified as hazardous wastes in the future. Any such change could result in an increase in the costs to manage and dispose of such wastes, which could increase the costs of our third-party operators' operations.

Certain of our properties have been used for natural gas and oil exploration and production for many years. Although former third-party operators may have utilized operating and disposal practices that were standard in the industry at the time, petroleum hydrocarbons and wastes may have been disposed of or released on or under our properties, or on or under other offsite locations where these petroleum hydrocarbons and wastes have been taken for recycling or disposal. Our properties and the petroleum hydrocarbons and wastes disposed or released thereon may be subject to CERCLA, RCRA and analogous state laws. Under such laws, the owner or operator could be required to remove or remediate previously disposed wastes, to clean up contaminated property and to perform remedial operations such as restoration of pits and plugging of abandoned wells to prevent future contamination or to pay some or all of the costs of any such action.

***Water Discharges and NORM***

The Federal Water Pollution Control Act (the "Clean Water Act" or the "CWA") and analogous state laws impose restrictions and strict controls with respect to the discharge of dredged or fill material and the discharge of pollutants, including spills and leaks of oil, into waters of the United States ("WOTUS") and state waters, including certain wetlands. The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or an analogous state agency. The discharge of dredged or fill material typically requires a permit issued by the U.S. Army Corps of Engineers ("Corps").

Federal and state regulatory agencies can impose administrative, civil and criminal penalties for non-compliance with discharge permits or other requirements of the Clean Water Act and analogous state laws and regulations. Spill prevention, control and countermeasure ("SPCC") plan requirements imposed under the Clean Water Act require appropriate containment berms and similar structures to help prevent the contamination of navigable waters in the event of a hydrocarbon tank spill, rupture or leak and require certain facility operators to develop, implement, and maintain SPCC plans. The Clean Water Act and analogous state laws also require individual permits or coverage under general permits for discharges of storm water runoff from certain types of facilities and requires those facilities to develop and implement stormwater pollution prevention plans. The Oil Pollution Act of 1990, as amended (the "OPA"), amends the Clean Water Act and establishes strict liability and natural resource damages liability for unauthorized discharges of oil into waters of the United States. OPA requires owners or operators of certain onshore facilities to prepare facility response plans for responding to a worst-case discharge of oil into waters of the United States. Uncertainty with respect to water discharges and changes in water regulations, including under the Clean Water Act and the OPA, have the potential to delay or materially modify the issuance of permits which may be required for certain of our third-party operators' activities.

The scope of federal jurisdictional reach over WOTUS under the CWA has been subject to significant uncertainty and litigation. In September 2023, the EPA and the Corps issued a final rule conforming the

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regulatory definition of WOTUS to the U.S. Supreme Court's 2023 decision in *Sackett v. EPA*, which narrowed the scope of federally jurisdictional waters to "relatively permanent, standing, or continuously flowing bodies of water" and wetlands with a "continuous surface connection" to such waters. However, the rule is currently subject to litigation. As a result, the September 2023 rule is currently in effect in only 24 states, and the EPA and the Corps are using the pre-2015 definition of WOTUS in the other 26 states. In November 2025, the EPA and the Corps issued a proposed rule to further update and narrow the definition of WOTUS. In addition, the U.S. Supreme Court's 2020 decision in *County of Maui v. Hawaii Wildlife Fund* held that, in certain cases, certain discharges from a point source to groundwater could fall within the scope of the CWA and require a permit.

Also, in January 2026, the EPA released a proposed rule to revise its CWA Section 401 Certification Rule following a May 2025 memorandum raising concerns with the existing rule implementing Section 401 promulgated in November 2023. Under CWA Section 401, a federal agency may not issue a license or permit to conduct an activity that may result in a discharge into a WOTUS unless a state or authorized Tribe issues or waives Section 401 water quality certification. The January 2026 proposed rule seeks to limit the scope of Section 401 reviews and clarify the regulations to ensure such reviews are completed within the one-year statutory deadline. Eleven states sued the EPA challenging the 2023 CWA Section 401 Certification Rule, alleging that the rule exceeds the EPA's statutory authority under the CWA, including in *State of Louisiana, et al., v. EPA, et al.*, which has been held in abeyance pending the administration's review of the rule and litigation. The final rule revising the CWA Section 401 Certification Rule is expected in Spring 2026. However, opponents of the January 2026 proposal are pushing back on these efforts, including EPA efforts to narrow the scope of state authority.

In addition, wastes containing naturally occurring radioactive material ("NORM") may be generated in connection with our third-party operators' natural gas and oil production. Certain processes used to produce natural gas and oil may enhance the radioactivity of NORM, which may be present in oilfield wastes. Comprehensive federal regulation does not currently exist for NORM. However, the EPA has studied the impacts of technologically enhanced NORM. NORM is subject primarily to individual state radiation control regulations. In addition, NORM handling and management activities are governed by regulations promulgated by OSHA. These state and OSHA regulations impose certain requirements concerning worker protection, the treatment, storage and disposal of NORM waste and the management of waste piles, containers and tanks containing NORM, as well as restrictions on the uses of land with NORM contamination. Concerns have arisen over traditional NORM disposal practices (including discharge through publicly owned treatment works into surface waters), which may increase the costs associated with management of NORM. To the extent that federal or state regulation increases the compliance costs for NORM disposal, our third-party operators may incur additional costs that may make some properties unprofitable to operate.

***Air Emissions***

The CAA and comparable state laws restrict the emission of air pollutants from many sources through air emissions permitting programs and impose various monitoring and reporting requirements. CAA regulations include, among others, New Source Performance Standards for the oil and natural gas source category to address emissions of sulfur dioxide, methane and volatile organic compounds and a separate set of emissions standards to address hazardous air pollutants frequently associated with oil and natural gas production and processing activities. These laws and regulations may require our third-party operators to obtain pre-approval for the construction or modification of certain projects or facilities expected to produce or significantly increase air emissions, obtain and strictly comply with stringent air permit requirements or incur development expenses to install and utilize specific equipment or technologies to control emissions. For example, in December 2023, the EPA finalized new rules intended to reduce methane emissions from gas and oil sources. The rules strengthened the existing emissions reduction requirements in regulations known as Subpart OOOOa, expanded reduction requirements for new, modified and reconstructed natural gas and oil sources in Subpart OOOOb, and imposed methane emissions limitations on existing natural gas and oil sources nationwide for the first time in Subpart OOOOc. In Subpart OOOOc, the rules established "Emissions Guidelines," which required states to develop plans to reduce methane emissions from existing sources that must be at least as effective as presumptive

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standards set by the EPA. The rules also created a new third-party monitoring program to flag large emissions events, referred to as "super emitters." Under Subparts OOOOb and OOOOc, the rules established more stringent requirements for new, modified and reconstructed natural gas and oil sources constructed after December 6, 2022, meaning that sources constructed prior to that date will be considered existing sources with later compliance dates. The rules gave states, along with federal tribes that wish to regulate existing sources, until March 2026 to develop and submit their plans for reducing methane emissions from existing sources. The final emissions guidelines under Subpart OOOOc provided until 2029 for existing sources to comply. However, in March 2025, the EPA announced plans to reconsider Subparts OOOOb and OOOOc and, in November 2025, the EPA finalized an interim final rule extending certain compliance deadlines for certain provisions provided in the 2023 rules. Litigation challenging the final interim final rule remains pending.

Additionally, in May 2024, the EPA finalized amendments to the Greenhouse Gas Reporting Program for petroleum and natural gas facilities in accordance with the Inflation Reduction Act. Among other things, the rule expands the emissions events that are subject to reporting requirements to include "other large release events." The emissions reported under the Greenhouse Gas Reporting Program were intended to be the basis for any Waste Emissions Charges assessed under the Methane Emissions Reduction Program of the Inflation Reduction Act. However, in February 2026, the EPA finalized a rule rescinding the GHG "Endangerment Finding" that underlies these regulations on the basis that the finding, among other reasons, exceeds the EPA's statutory authority. Litigation challenging the final rule is pending, and as a result there is significant uncertainty with respect to regulation of GHG emissions. Further, in September 2025, the EPA proposed to delay the reporting of GHG emissions under the Greenhouse Gas Reporting Program for the oil and gas sector until 2034. This proposal is still under consideration and is subject to a number of uncertainties and will likely face legal challenges that would further delay the implementation of any rules, and we cannot predict the ultimate outcome.

In November 2024, the EPA finalized a regulation to implement the Inflation Reduction Act's Waste Emissions Charge. The rule required the EPA to impose and collect a Waste Emissions Charge annually from oil and gas facilities that exceed statutory methane emissions thresholds. However, in February 2025, Congress repealed the Waste Emissions Charge rule using the Congressional Review Act. In addition, the One Big Beautiful Bill Act, enacted in July 2025, delayed implementation of the charge until 2034. While the EPA cannot reissue its rule implementing the Waste Emissions Charge (either in substantially the same form or in a new rule), the underlying requirement in the Inflation Reduction Act remains unchanged. We cannot predict if the Trump Administration and/or Congress may take action to repeal or revise this requirement of the Inflation Reduction Act; however, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas projects and increase our third-party operators' costs of development, which costs could be significant. In addition, various states have adopted or are considering adopting new rules to reduce emissions from oil and gas operations in the state, including requirements for more extensive emissions monitoring and reporting. Any such requirements could increase the costs for our third-party operators of development and production on our properties, potentially impairing the economic development of our properties. Obtaining permits has the potential to delay the development of natural gas and oil projects. Federal and state regulatory agencies may impose administrative, civil and criminal penalties for non-compliance with air permits or other requirements of the CAA and associated state laws and regulations.

***Climate Change***

The threat of climate change continues to attract considerable attention in the United States and around the world, and numerous proposals have been made and could continue to be made at the international, national, regional and state levels of government, and among trade organizations and industry groups to monitor and limit existing emissions of GHGs as well as to restrict or eliminate such future emissions. While Congress has from time to time considered legislation to reduce emissions of GHGs, comprehensive legislation aimed at reducing GHG emissions has not yet been adopted at the federal level, and in February 2026, the EPA issued a final rule rescinding the "Endangerment Finding" that provides the underlying basis for the majority of its GHG regulations. A number of state and regional efforts have emerged that are aimed at tracking or reducing GHG

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emissions by means of cap-and-trade programs, which typically require major sources of GHG emissions to acquire and surrender emission allowances in return for emitting those GHGs, or by means of emissions reporting or climate risk disclosure requirements. Litigation risks are also increasing, as a number of parties have sought to bring suit against oil and natural gas companies in state or federal court, alleging, among other things, that such companies created public nuisances by producing fuels that contributed to climate change or that companies have been aware of the adverse effects of climate change for some time but defrauded their investors or customers by failing to adequately disclose those impacts. For further discussion regarding these international, federal, and state regulatory and policy initiatives as well as climate change transition and physical risks affecting our and our third-party operators' businesses see "Risk Factors—Risks Related to Legal, Regulatory and Environmental Matters—The development and enactment of climate change legislation and regulation regarding emissions of GHGs could adversely affect the mineral industry and reduce demand for the natural gas and oil that our third-party operators produce."

***Hydraulic Fracturing Activities***

A substantial portion of the production on our properties by our third-party operators involve the use of hydraulic fracturing techniques. Hydraulic fracturing is an important and common practice that is used to stimulate production of natural gas, NGLs and oil from dense subsurface rock formations. The hydraulic fracturing process involves the injection of water, sand and chemical additives under pressure into targeted geological formations to fracture the surrounding rock and stimulate production. Most hydraulic fracturing is currently exempt from the definition of "underground injection" under the SDWA; however, legislation to repeal this exemption and require federal permitting and regulatory control of hydraulic fracturing activities, and to require disclosure of the chemical constituents of the fluids used in the fracturing process, has been proposed in Congress from time to time. This legislation has not been enacted.

Hydraulic fracturing typically is regulated by state natural gas and oil commissions or similar agencies, but the EPA has asserted federal regulatory authority pursuant to the SDWA over certain hydraulic fracturing activities involving the use of diesel fuel in fracturing fluids and issued permitting guidance that applies to such activities. While our third-party operators engaged in hydraulic fracturing do not currently use diesel fuels in their hydraulic fracturing fluids, they may become subject to federal permitting under the SDWA if their fracturing formula changes and may incur significant costs to comply with disposal requirements for hydraulic fracturing fluids and produced water. However, several federal agencies have asserted regulatory authority over certain aspects of the process. For example, the EPA has published an effluent limit guideline final rule prohibiting the discharge of wastewater from onshore unconventional oil and gas extraction facilities to publicly owned wastewater treatment plants. For more information, see "Risk Factors—Risks Related to Legal, Regulatory and Environmental Matters—Future legislative or regulatory changes may result in increased costs and decreased revenues, cash flows and liquidity, all of which could have a material adverse effect on our business, financial condition and results of operations—Hydraulic Fracturing and Water Disposal."

***Endangered Species Act***

The Endangered Species Act of 1973, as amended (the "ESA") and analogous state laws restrict activities that may affect endangered and threatened species or their habitats. Similar protections are offered to migratory birds under the Migratory Bird Treaty Act of 1918, as amended (the "MBTA") and to eagles under the Bald and Golden Eagle Protection Act. The ESA, MBTA, and similar laws provide for significant penalties for willful or even unintentional violations. The designation of previously unidentified endangered or threatened species could cause our third-party operators to incur additional costs or become subject to operating delays, restrictions or bans in the affected areas. To the extent species are listed under the ESA or similar state laws, or are protected under the MBTA, or previously unprotected species are designated as threatened or endangered in areas where our properties are located, operations on those properties could incur increased costs arising from species protection measures and face delays or limitations with respect to production activities thereon.

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***National Environmental Policy Act***

The National Environmental Policy Act ("NEPA") is a procedural statute that requires federal agencies to evaluate the environmental impacts of major federal actions that may significantly affect the quality of the environment, which generally includes the granting of a permit or similar authorization by a federal agency. Some states have analogous laws that provide for similar environmental reviews. As part of such reviews, agencies are generally required to consider a broad array of environmental impacts, such as impacts of the proposed action on air quality, water quality, wildlife, cultural resources, geology, socioeconomics, and aesthetics, as well as practicable alternatives to the project. Procedures for implementing NEPA vary at the agency level. In May 2025, the U.S. Department of Interior issued a new "alternative arrangements" policy for NEPA reviews of proposed fossil fuel projects, significantly expediting environmental review. Also in May 2025, the U.S. Supreme Court held in *Seven County Infrastructure Coalition v. Eagle County, Colorado* that courts must grant agencies "substantial judicial deference" with respect to the scope and content of their NEPA reviews when considering NEPA challenges, and that an agency may decline to evaluate environmental effects from separate projects upstream or downstream from the project at issue. Further, in September 2025, the White House Council on Environmental Quality issued new guidance to federal agencies implementing NEPA, encouraging agencies to limit their NEPA reviews, rely more heavily on sponsor-prepared documents, and streamline the NEPA process. Certain of our third-party operators' operations may be subject to environmental reviews under NEPA or analogous state laws, which can cause significant delays in approval of permits. As a result of NEPA reviews, agencies may decide to deny permits or other support for a project or to condition permits or approvals on modifications or mitigation measures. Further, authorizations under NEPA are often subject to protest, appeal, or litigation, which may lead to further delays.

***Occupational Health and Safety***

Nearly all employers, including us and the third-party operators that conduct activities on our properties, are subject to the federal Occupational Safety and Health Act ("OSH Act") and comparable state statutes, which are intended to protect the health and safety of workers. As a minerals and royalties interest owner, we generally do not conduct field operations or employ on-site personnel; accordingly, our direct OSH Act obligations primarily relate to our corporate and administrative office locations. By contrast, our third-party operators are responsible for day-to-day field activities on our properties and are subject to more comprehensive and stringent requirements under the OSH Act and other federal and state laws applicable to natural gas and oil operations. For example, the Occupational Safety and Health Administration's hazard communication standard, the EPA's Risk Management Program, community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act (also known as the Emergency Planning and Community Right-to-Know Act of 1986), and comparable state statutes require that information be organized and maintained concerning hazardous materials used or produced in operations and that this information be provided to employees, state and local government authorities and citizens. Other OSH Act standards regulate worker safety aspects of operations and workplaces. Failures to comply with OSH Act requirements, including those applicable to our third-party operators, can lead to the imposition of citations and penalties and could have a material adverse effect on our third-party operators' business, and, in turn, our financial condition and results of operations.

**Title to Properties** 

We are not required to, and under certain circumstances we may elect not to, incur the expense of retaining lawyers to examine the title to our mineral and royalty interests. Our title review is meant to confirm the quantum of mineral and royalty interest owned by a prospective seller, the property's lease status and royalty amount as well as encumbrances or other related burdens.

In addition to our initial title work, operators often will conduct a thorough title examination prior to leasing and/or drilling a well. Should a third-party operator's title work uncover any further title defects, either we or such third-party operator will perform curative work with respect to such defects. A third-party operator generally will not commence drilling operations on a property until any material title defects on such property have been cured.

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We believe that the title to our assets is satisfactory in all material respects. Although title to these properties is in some cases subject to encumbrances, such as customary interests generally retained in connection with the acquisition of gas and oil interests, non-participating royalty interests and other burdens, easements, restrictions or minor encumbrances customary in the natural gas and oil industry, we believe that none of these encumbrances will materially detract from the value of these properties or from our interest in these properties. See "Risk Factors—Risks Related to Our Business—We may incur losses as a result of title defects or other issues in the properties we own which could have a material adverse effect on our business, financial condition and results of operations."

**Competition** 

The natural gas and oil business is highly competitive in the exploration for and acquisition of reserves, the acquisition of minerals and natural gas and oil leases and personnel required to find and produce reserves. Many factors beyond our control affect our competitive position. Some of these factors include: the quantity and price of foreign oil imports; domestic supply and deliverability of natural gas, NGL and oil; changes in prices received for natural gas, NGL and oil production; business and consumer demand for refined natural gas, NGL and oil products; and the effects of federal, state and local regulation of the exploration for, production of and sales of natural gas, NGL and oil.

Some of our competitors not only own and acquire mineral and royalty interests but also explore for and produce natural gas and oil and, in some cases, carry on midstream and refining operations and market petroleum and other products on a regional, national or worldwide basis. By engaging in such other activities, our competitors may be able to develop or obtain information that is superior to the information that is available to us. In addition, certain of our competitors may possess financial or other resources substantially larger than we possess. Our ability to acquire additional minerals and properties and to discover reserves in the future will be dependent upon our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment.

In addition, natural gas and oil products compete with other forms of energy available to customers, primarily based on price. These alternate forms of energy include wind and solar, electricity, coal, and fuel oils. Changes in the availability or price of natural gas and oil or other forms of energy, as well as business conditions, conservation, legislation, regulations, and the ability to convert to alternate fuels and other forms of energy may affect the demand for natural gas and oil. See "Risk Factors—Risks Related to Our Industry—Our industry is highly competitive, and competitive pressures could negatively affect our business."

**Seasonality of Business** 

Weather conditions affect the demand for, and prices of, natural gas and can also delay drilling activities, disrupting our overall business plans. Additionally, some of the areas in which our properties are located are adversely affected by seasonal weather conditions, primarily in the winter and spring. During periods of heavy snow, ice or rain, our operators may be unable to move their equipment between locations, thereby reducing their ability to operate our wells, reducing the amount of natural gas and oil produced from the wells on our properties during such times. Furthermore, demand for natural gas is typically higher during the winter, resulting in higher natural gas prices for our natural gas production during our first and fourth quarters. Certain natural gas users utilize natural gas storage facilities and purchase some of their anticipated winter requirements during the summer, which can lessen seasonal demand fluctuations. Seasonal weather conditions can limit drilling and producing activities and other natural gas and oil operations in a portion of our operating areas. Due to these seasonal fluctuations, our results of operations for individual quarterly periods may not be indicative of the results that we may realize on an annual basis.

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**Human Capital** 

***Overview and Structure***

We consider our people to be our most important asset, and seek to structure our hiring practices, compensation and benefits programs, and employee practices and policies to attract, retain, develop and support high-quality personnel. We invest in our employees by providing career growth opportunities and maintaining a focus on corporate ethics.

***Headcount***

Our workforce consists of full-time employees and consultants. As of March 31, 2026, we had 13 full-time employees and six individuals engaged as consultants. None of our employees are represented by labor unions or covered by any collective bargaining agreements.

***Compensation***

As part of our efforts to hire and retain highly qualified employees and service providers, we have structured compensation and benefits programs that, we believe, are competitive and sufficiently reward our high performers. In addition to the incentive programs in place for our named executive officers, we have structured a cash bonus program for non-officer employees that is dependent on an employee's individual performance and our performance as a company.

***Healthcare and Other Benefits***

We provide a suite of benefits to our employees, including a 401(k) plan with employer matching contributions and medical and dental insurance.

**Legal Proceedings** 

We are party to lawsuits arising in the ordinary course of our business. We cannot predict the outcome of any such lawsuits with certainty, but management believes it is remote that pending or threatened legal matters will have a material adverse impact on our financial condition.

Due to the nature of our business, we are, from time to time, involved in other routine litigation or subject to disputes or claims related to our business activities, including the non-payment of royalties. In the opinion of our management, none of these other pending litigations, disputes or claims against us, if decided adversely, will have a material adverse effect on our business, financial condition and results of operations.

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**MANAGEMENT** 

**Directors and Executive Officers** 

The following table sets forth the names, ages and titles, as of May 26, 2026, of the individuals who will serve as our executive officers and members of our board of directors upon consummation of this offering.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position (upon consummation of this offering)** |
|  Daniel Herz | 49 | Chief Executive Officer, President and Chairman |
|  Jeffrey Slotterback | 44 | Chief Financial Officer, Treasurer, Secretary and Director |
|  Michael Downs | 48 | Chief Operating Officer<sup>1</sup> |
|  Matthew Heinlein | 32 | Vice President, Head of Corporate Development & Strategy<sup>1</sup> |
|  Stephen Pilatzke | 47 | Chief Accounting Officer |
|  Jeffery Smith | 51 | Director |
|  Alan Bigman | 59 | Director |
|  Andrew Ceitlin | 52 | Director |
|  Peggy Gold | 70 | Director |
|  Robert W. "Trey" Karlovich III. | 49 | Director<sup>2</sup> |

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<sup>1</sup> As of the date of this registration statement, Mr. Downs and Mr. Heinlein serve on our board of directors. Effective immediately prior to effectiveness of this registration statement, Mr. Downs and Mr. Heinlein will resign from our board of directors.

<sup>2</sup> As of the date of this table, Mr. Karlovich is a director nominee. He is expected to become a member of our board of directors effective immediately prior to the effectiveness of this registration statement.

***Daniel Herz***

Daniel Herz has served as Chairman of our board of directors and as our Chief Executive Officer since our inception and has also served as Chief Executive Officer of WhiteHawk Management since June 2021. In addition to his current roles, Mr. Herz will also serve as our President effective immediately prior to the effectiveness of this registration statement. Mr. Herz has previously served as founder, president and chief executive officer of Falcon Minerals Corporation, a formerly publicly traded company, from August 2018 to June 2021 and served as a director from May 2020 to June 2021. Mr. Herz also served in various positions at the Atlas companies, a publicly traded enterprise, including as president of Atlas Energy Group, LLC from 2015 to 2018, and as chief executive officer of Atlas Resource Partners, L.P. and its successor, Titan Energy, LLC from 2015 to 2018. Additionally, Mr. Herz served as vice president and senior vice president of corporate development and strategy from 2004 to 2011 of Atlas Energy, Inc., prior to its $4.3 billion sale to Chevron Corporation, the general partner of Atlas Pipeline Partners, L.P. from 2004 to 2015, until its sale to Targa Resources for $7.7 billion, and the general partner of Atlas Energy, L.P. from 2011 to 2015. From April 2015 to April 2021, Mr. Herz served as a director of Titan Energy and its predecessor. In July 2016, Atlas Resource Partners and certain of its affiliates filed for Chapter 11 prepackaged bankruptcy protection and successfully emerged from bankruptcy in September 2016 with the new name of Titan Energy. Mr. Herz has also served as a director, including as chair of the compensation committee and member of the audit committee, of Presidio Production Company (NYSE: FTW) since March 2026. We believe Mr. Herz's leadership experience and industry knowledge make him well qualified to serve as a director.

***Jeffrey Slotterback***

Jeffrey Slotterback has served on our board of directors and as our Chief Financial Officer, Treasurer and Secretary since our inception and has also served as an executive officer of WhiteHawk Management, LLC, our external manager since March 31, 2022. He has also served as founder and partner of PhiCap Advisors, LLC, a financial and capital advisory firm specializing in clean energy and energy transition capital raises, since its founding in September 2019. From 2016 to 2018, Mr. Slotterback served as a director and chief financial officer of Titan Energy. From August 2015 to December 2021, Mr. Slotterback served as the principal executive officer

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and chief financial officer for certain Atlas companies, a publicly traded enterprise, including for Atlas Energy Group and Atlas Resource Partners L.P. In July 2016, Atlas Resource Partners, L.P. and certain of its affiliates filed for Chapter 11 prepackaged bankruptcy protection and successfully emerged from bankruptcy in September 2016 with the new name of Titan Energy. Prior to joining Atlas, Mr. Slotterback was also a senior auditor with Deloitte & Touche, LLP from 2004 to 2007. We believe Mr. Slotterback's financial expertise and experience in the energy sector make him well qualified to serve as a director.

***Michael Downs***

Michael Downs has served on our board of directors since August 2023 and as our Chief Operating Officer since November 2022. Immediately prior to the effectiveness of this registration statement, Mr. Downs will resign from our board of directors. He has also served as a partner of PhiCap Advisors, LLC since its founding in September 2019 and as interim chief financial officer of Zefiro Methane Corp., a publicly traded company, from June 2025 to present. Mr. Downs has previously served as chief operating officer for Falcon Minerals Corporation, a formerly publicly traded company, from October 2018 to June 2022. Prior to joining Falcon, Mr. Downs served as vice president of operations from July 2011 to October 2018 at certain Atlas companies, a publicly traded enterprise, including Atlas Energy Group and Atlas Resource Partners. In July 2016, Atlas Resource Partners and certain of its affiliates filed for Chapter 11 prepackaged bankruptcy protection and successfully emerged from bankruptcy in September 2016 with the new name of Titan Energy.

***Matthew Heinlein***

Matthew Heinlein has served on our board of directors since August 2023 and as our Vice President & Head of Corporate Development & Strategy since our inception. Immediately prior to the effectiveness of this registration statement, Mr. Heinlein will resign from our board of directors. From July 2019 to July 2021, Mr. Heinlein worked at The Blackstone Group where he was involved with several of Blackstone's investments across the energy industry. Mr. Heinlein also worked at Falcon Minerals Corporation, a formerly publicly traded company, from 2018 to 2019, where he focused on corporate development, financial analyses and acquisition underwriting. He also worked in investment banking at Jefferies from 2016 to 2018, where he focused on mergers and acquisitions and financial advisement to gas and oil companies.

***Stephen Pilatzke***

Mr. Pilatzke has served as our Chief Accounting Officer since 2023. He oversees all accounting and financial reporting for WhiteHawk Energy. Previously, Mr. Pilatzke worked as the Chief Accounting Officer of Volta, Inc. (NYSE: VLTA) from July 2022 through March 2023 until its sale to Shell USA, Inc. Mr. Pilatzke served as Chief Accounting Officer of Falcon Minerals Corporation (NASDAQ: FLMN) from October 2018 to June 2022 until its sale to Sitio Royalties Corp. Prior to that, Mr. Pilatzke served as Chief Accounting Officer for Lightfoot Capital Partners GP, LLC from January 2010 to December 2019 and for Arc Logistics Partners GP, LLC (NYSE: ARCX) from October 2013 to December 2017 until its sale to Zenith Energy U.S., LP. He also served as Chief Financial Officer and Controller of Paramount BioSciences LLC from December 2005 to January 2010. Mr. Pilatzke also worked as an auditor at EisnerAmper LLP, an accounting and advisory firm, from November 2001 to December 2005. Mr. Pilatzke is a Certified Public Accountant and holds a B.S. in accounting from Binghamton University.

***Jeffery Smith***

Jeffery Smith has served on our board of directors and as our President since our inception and has also served as president of WhiteHawk Management since March 2022. Immediately prior to the effectiveness of this registration statement, Mr. Smith will resign from his position as our President. Mr. Smith is co-owner of Badger Creek Holdings, a holding company that owns several companies, including Preferred Capital Securities, LLC, where he has served as its Chief Executive Officer since 2018 after joining the firm in 2016. Mr. Smith

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previously held several leadership positions at Atlas Energy, L.P. from 2013 to 2016 and at Wells Real Estate from 2002 to 2009. We believe Mr. Smith's experience in managing businesses and capital markets for over 20 years makes him well qualified to serve as a director.

***Alan Bigman***

Alan Bigman has served on our board of directors since November 2025. Mr. Bigman has held board positions at numerous public and private companies, including Evolve Transition Infrastructure, a publicly traded oil and gas master limited partnership, from June 2014 to March 2021, Aquadrill LLC, an offshore drilling company later acquired by Seadrill Limited, from May 2021 to April 2023, Arclin USA LLC, a large specialty chemicals and materials company, from May 2017 to September 2021, and JKX Oil and Gas, a foreign publicly traded oil and gas producer, from 2016 to 2017. He also co-founded VistaTex LLC, an independent oil and gas company, in 2010, where he served on the board of directors until its sale to a strategic acquirer in 2014. Mr. Bigman began his career in investment and corporate finance roles at Access Industries and later served as chief financial officer of Basell from 2006 to 2007 and LyondellBasell Industries from 2007 to 2009, one of the largest chemical companies in the world. We believe Mr. Bigman's experience in finance and corporate governance makes him well qualified to serve as a director.

***Andrew Ceitlin***

Andrew Ceitlin has served on our board of directors since December 2024. Since October 2022, he has served as senior vice president and general counsel of the Construction Management division of AECOM, a publicly traded company, where he manages the legal departments of Tishman Construction Corporation, Hunt Construction Group, Inc., and Leeding Builders Group and their various subsidiaries. From June 2017 to October 2022, Mr. Ceitlin held various positions at AECOM including vice president, assistant general counsel and senior corporate counsel. We believe Mr. Ceitlin's legal and compliance experience makes him well qualified to serve as a director.

***Peggy Gold***

Peggy Gold has served on our board of directors since April 2023. Ms. Gold previously served as vice president and head of investor services for Resource REIT, Inc. from January 2020 until May 2022. From April 2004 to May 2022, Ms. Gold served as executive vice president for Resource Real Estate, Resource REIT's sponsor, where she focused on capital raising, which included the key accounts, marketing and investor services departments. Ms. Gold's team was dedicated to supporting the broker-dealer relationships, due diligence process, conferences and seminars. Ms. Gold was also responsible for revenue generation for multiple business lines by building company brand awareness and playing an integral role in product development. We believe Ms. Gold's experience in investor services and capital raising makes her well qualified to serve as a director.

***Robert W. "Trey" Karlovich III***

Mr. Karlovich will begin serving as a member of our board of directors effective immediately prior to the effectiveness of this registration statement. Since October 2021, Mr. Karlovich has served as President of Muirfield Resources, LLC, an energy management and investment firm, and President of Claremont Corporation and Heirloom Oil and Gas Holdings, LLC, energy-related businesses. He is also a member of Muirfield Hall PLLC, an accounting advisory firm. Mr. Karlovich currently serves as a Senior Advisor for Sixth Street Partners, LLC, a global investment firm, and as a member of the Board of Directors and Audit Committee Chairman of Crane Harbor Acquisition Corp. II. From February 2016 to September 2021, Mr. Karlovich served as Executive Vice President and Chief Financial Officer of NGL Energy Partners LP (NYSE: NGL), a publicly-traded midstream company, where he oversaw finance, accounting, investor relations, internal audit, tax, and risk management functions. Mr. Karlovich holds a B.S. in Accounting from Oklahoma State University and is a certified public accountant. We believe Mr. Karlovich is qualified to serve on our Board of Directors due to his

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extensive experience in the energy industry, his financial expertise as a former chief financial officer of publicly - traded companies, and his background in accounting and corporate governance.

**Board of Directors** 

Our business and affairs are managed under the direction of our board of directors. Our directors will hold office until the earlier of their death, resignation, retirement, disqualification or removal, or until their successors have been duly elected and qualified.

Our directors will be divided into three classes serving staggered three-year terms. Class I, Class II and Class III directors will serve until our first, second and third annual meetings of stockholders, respectively, following the filing of the amended and restated certificate of incorporation. Mr. Smith and Mr. Karlovich will be assigned to Class I, Mr. Slotterback, Mr. Bigman and Ms. Gold will be assigned to Class II, and Mr. Herz and Mr. Ceitlin will be assigned to Class III. At each annual meeting of stockholders held after the initial classification, directors will be elected to succeed the class of directors whose terms have expired.

Any increase or decrease in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. This classification of our board of directors may have the effect of delaying or preventing changes in control of the Company. See "Description of Capital Stock—Anti-Takeover Provisions."

**Director Independence** 

Our board of directors is expected to affirmatively determine that Mr. Bigman, Mr. Ceitlin, Ms. Gold and Mr. Karlovich are each an "independent director," as defined under the NYSE rules. In making these determinations, our board of directors will consider the current and prior relationships that each director has with the Company and all other facts and circumstances our board of directors deemed relevant in determining his or her independence, including the beneficial ownership of our capital stock by each director, and the transactions involving them described in the section titled "Certain Relationships and Related Party Transactions."

**Board Committees** 

Our board of directors will have an audit committee, a compensation committee and a nominating and corporate governance committee. Each committee will have a charter that has been approved by our board of directors and that will be available on our website. Each committee will have the composition and responsibilities described below. Committee members will serve on such committees until their resignations or until otherwise determined by our board of directors.

**Audit Committee** 

The primary purposes of our audit committee under the committee's charter will be to assist our board of directors with oversight of audits of our financial statements, the integrity of our financial statements, our process relating to risk management and the conduct and systems of internal control over financial reporting and disclosure controls and procedures, the qualifications, engagement, compensation, independence and performance of our independent auditor, and the performance of our internal audit function.

Upon the consummation of this offering, the members of our audit committee will be Mr. Bigman, Mr. Karlovich and Ms. Gold. Mr. Bigman will serve as the chair of the audit committee. Mr. Bigman and Mr. Karlovich each qualify as an "audit committee financial expert" as such term has been defined by the SEC in Item 407(d) of Regulation S-K. Our board of directors has affirmatively determined that Mr. Bigman, Mr. Karlovich and Ms. Gold meet the definition of an "independent director" for the purposes of serving on the audit committee under Rule 10A-3 under the Exchange Act and the applicable rules. We intend to comply with these independence

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requirements for all members of the audit committee within the time periods specified under such rules. The audit committee will be governed by a charter that complies with the rules of the NYSE.

**Compensation Committee** 

The primary purposes of our compensation committee under the committee's charter will be to assist our board of directors in overseeing our management compensation policies and practices, including determining and approving from time to time the compensation of our independent directors; reviewing, approving and administering compensation and equity compensation policies and programs; and preparing the report of the compensation committee that the rules of the SEC require to be included in our annual meeting proxy statement. See "Executive and Director Compensation" for more information.

Upon the consummation of this offering, the members of our compensation committee will be Ms. Gold, Mr. Ceitlin and Mr. Bigman. Ms. Gold will serve as the chair of the committee. Our board of directors has affirmatively determined that each of Ms. Gold, Mr. Ceitlin and Mr. Bigman are independent under the applicable NYSE rules, including rules specific to membership on the compensation committee.

**Nominating and Corporate Governance Committee** 

The primary purposes of our nominating and corporate governance committee under the committee's charter will be to assist our board of directors with oversight of, among other things, identifying and screening individuals qualified to serve as directors and director succession planning; developing, recommending to the board of directors and reviewing the Company's corporate governance guidelines; coordinating and overseeing the periodic self-evaluation of the board of directors and its committees; and reviewing on a regular basis the overall corporate governance of the Company and recommending improvements to the board of directors where appropriate.

The members of our nominating and corporate governance committee will be Mr. Ceitlin, Mr. Karlovich and Mr. Bigman. Mr. Ceitlin will serve as the chairperson of the committee. Our board of directors has affirmatively determined that each of Mr. Ceitlin, Mr. Karlovich and Mr. Bigman are independent under the applicable NYSE rules.

**Risk Oversight** 

Risk assessment and oversight are an integral part of our governance and management processes. Our board of directors encourages management to promote a culture that incorporates risk management into our corporate strategy and day-to-day business operations. Our board of directors as a whole oversees our risk management function directly, and the standing committees of our board of directors address risks inherent in their respective areas of oversight.

**Compensation Committee Interlocks and Insider Participation** 

None of the expected members of our compensation committee is or has been an officer or employee of the Company. None of our executive officers currently serves, or has served during the last year, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving as the expected member(s) of our board of directors or compensation committee. See the section titled "Certain Relationships and Related Party Transactions" for information about related party transactions involving members of our compensation committee or their affiliates.

**Indemnification of Directors and Executive Officers** 

Our amended and restated certificate of incorporation will provide that we will indemnify our executive officers and directors to the fullest extent permitted by the DGCL. We intend to enter into indemnification agreements

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with each of our executive officers and directors prior to the completion of this offering. The indemnification agreements will provide the executive officers and directors with contractual rights to indemnification and expense advancement, to the fullest extent permitted under the DGCL. The agreements supplement and further the indemnification provisions set forth in our certificate of incorporation, bylaws and applicable law. We will be the indemnitor of first resort and will advance expenses to indemnified persons within thirty days of receiving a written request, subject to an undertaking to repay if it is ultimately determined that such person is not entitled to indemnification.

**Code of Business Conduct and Ethics** 

Prior to the completion of this offering, we will adopt a code of conduct and ethics that applies to all of our directors, employees and officers. A copy of the code will be available on our website located at www.whitehawkenergy.com. Any amendments or waivers to our code for our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, will be disclosed on our website promptly following the date of such amendment or waiver, as and if required by applicable law.

**Corporate Governance Guidelines** 

We will adopt corporate governance guidelines in accordance with the corporate governance rules of NYSE. These guidelines will cover a number of areas including director responsibilities and duties, director elections and re-elections, composition of the board of directors, including director qualifications and board committees, executive sessions, director access to management and, as necessary and appropriate, independent advisors, director orientation and continuing education, board materials, management succession and evaluations of the board of directors and the board's committees. A copy of our corporate governance guidelines will be posted on our website.

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**EXECUTIVE AND DIRECTOR COMPENSATION** 

As an emerging growth company as defined under the Securities Act, we are providing this executive compensation disclosure in accordance with the scaled requirements of Item 402 of Regulation S-K, which permit reduced compensation information compared to that required of other registrants. Our reporting obligations extend only to each individual who served in the role of our principal executive officer during the last completed fiscal year, our next two most highly compensated executive officers who were serving as executive officers as of December 31, 2025, and up to two additional individuals, each of whom would have been one of our two most highly compensated executive officers but for the fact that the individual was not serving as an executive officer as of December 31, 2025 (together, our "named executive officers" or "NEOs"). For the year ended December 31, 2025, our NEOs were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Daniel Herz, Chief Executive Officer and Director

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Jeffrey Slotterback, Chief Financial Officer, Treasurer, Secretary and Director

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Matthew Heinlein, Vice President & Head of Corporate Development & Strategy and Director

The Company is currently externally managed by WhiteHawk Management LLC, which we refer to in this section as our "Manager" for purposes of this discussion. The Manager is a separate legal entity from us, operating pursuant to its own management agreements. Our Manager is controlled indirectly by WhiteHawk Energy LLC, which is owned and controlled by Mr. Herz (87.5%), Mr. Heinlein (2.5%) and PhiCap Advisors LLC ("PhiCap Advisors") (PhiCap Advisors owns approximately 10% of WhiteHawk Energy LLC but receives approximately 20% of the economics of WhiteHawk Energy, LLC), a financial and capital advisory firm specializing in clean energy and energy transition capital raises, where Mr. Slotterback is a partner. All of our NEOs also serve as executive officers of the Manager.

During the year ended December 31, 2025, the Company's day-to-day operations were externally managed by the Manager pursuant to the Investment Management Agreement and the Administrative Services Agreement. As described further below under "Certain Relationships and Related Party Transactions," we pay the Manager a Base Management Fee and Dividend Incentive Fee, as well as certain management and administrative fees pursuant to the Administrative Services Agreement.

Generally, the purpose of the fees paid by us to the Manager pursuant to the Investment Management Agreement and the Administrative Services Agreement is not to provide compensation to our NEOs, but rather to compensate the Manager for the services and expertise it provides to us. Pursuant to the Administrative Services Agreement, the Company reimburses the Manager for the actual costs and expenses paid for administrative services, which also includes certain compensation paid by the Manager to certain of our executive officers. Specifically, with respect to Mr. Herz, compensation amounts relating to employer 401(k) contributions and certain health benefits are reimbursed by the Company to the Manager as well as salary attributed to Mr. Herz for purposes of his 401(k) plan participation. With respect to Mr. Slotterback, the Company does not reimburse the Manager for any amounts paid by the Manager that are related to compensation or benefits. With respect to Mr. Heinlein, the Company reimburses the Manager for Mr. Heinlein's annual salary, annual bonus, and 401(k) employer contributions and certain health benefits. All amounts reimbursed by the Company are reflected in the *Summary Compensation Table* below.

In addition, Messrs. Herz, Slotterback and Heinlein each have an interest in the fees we pay to the Manager as indirect equity holders in the Manager. Messrs. Herz and Heinlein also receive profit distributions through their interests in WhiteHawk Energy LLC. Mr. Slotterback also receives profit distributions as a partner of PhiCap Advisors.

We do not provide any direct compensation or benefits to our NEOs. Any compensation paid to our NEOs for the fiscal year ended December 31, 2025, was paid by and solely in the discretion of the Manager. Any amounts

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reimbursed by the Company to the Manager for the fiscal year ended December 31, 2025, with respect to compensation and benefits paid to our NEOs are reflected in the table below.

***Summary Compensation Table***

The following table provides summary information concerning the compensation amounts reimbursed by the Company to the Manager with respect to our named executive officers for 2025. As noted above, none of our executive officers are our employees and we did not directly pay any cash compensation to the executive officers for service in 2025. Our named executive officers also did not receive any equity awards or other forms of compensation directly from us in 2025.

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| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus ($)** | **All Other<br>Compensation ($)<sup>(1)</sup>** | **Total ($)<sup>(2)</sup>** |
|  Daniel Herz<br> *Chief Executive Officer and Director* | 2025 | 23500 |  | $51938 | $75438 |
|  Jeffrey Slotterback<br> *Chief Financial Officer, Treasurer, Secretary and Director* | 2025 |  |  |  | $— |
|  Matthew Heinlein<br> *Vice President & Head of Corporate Development & Strategy and Director* | 2025 | 300000 | 760000 | $56250 | 1116250 |

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(1) Amounts reflect (i) for Mr. Herz, Company reimbursement of $14,000 for employer matching contributions
to his 401(k) account and Company reimbursement of $37,938 in respect of certain health benefits and (ii) for Mr. Heinlein, Company reimbursement of $11,500 for employer matching contributions to his 401(k) account and Company
reimbursement of $44,750 in respect of certain health benefits.

(2) The Company reimburses only limited benefits for Mr. Herz as well as attributes a nominal salary to him for
purposes of 401(k) plan participation, reimburses no compensation for Mr. Slotterback, and reimburses Mr. Heinlein's full salary, bonus, and benefits.

**Additional Narrative Disclosure Regarding Executive Compensation Matters** 

***Incentive Plan***

In order to attract, retain and motivate qualified persons as employees, directors and consultants, we adopted the 2026 Equity Incentive Plan (the "Existing 2026 Plan"), which became effective on January 23, 2026. Through the Existing 2026 Plan, we can facilitate the grant of equity incentives to eligible service providers of our company and affiliates to obtain and retain services of these individuals, which is essential to our long-term success.

We have not previously granted equity awards to our NEOs.

In connection with this offering, we adopted the A&R 2026 Plan, an amendment and restatement of the Existing 2026 Plan that will govern equity-based compensation for directors, officers, employees, consultants and advisors of the Company and its subsidiaries upon the consummation of this offering. The material terms of the A&R 2026 Plan are summarized below, which is qualified in its entirety by the text of the A&R 2026 Plan.

***Employment Agreements***

In connection with the Internalization and the consummation of this offering, we intend to enter into employment agreements with Messrs. Herz and Slotterback. The material terms of such employment agreements are set forth below.

***Employment Agreement of Mr. Herz***

The employment agreement of Mr. Herz will provide for the terms of his employment as Chief Executive Officer (the "Herz Employment Agreement"). The Herz Employment Agreement will be effective as of the

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consummation of this offering (the "Effective Date"), and have an initial term ending on the fifth anniversary of the Effective Date (the "Initial Term"), which will automatically renew for successive one-year periods unless either party provides at least 60 days' prior written notice of non-renewal. The Herz Employment Agreement provides for (i) an annual base salary of $500,000, (ii) a target annual bonus equal to 100% of his annual base salary (the "Target Annual Bonus") consisting of a combination of cash and/or equity awards as determined by the Board or the Company's Compensation Committee and (iii) eligibility to participate in the employee benefits programs offered by us to our employees generally.

Pursuant to the Herz Employment Agreement, in the event Mr. Herz's employment is terminated (i) by us without "cause," (ii) by Mr. Herz for "good reason" (each as defined in the Herz Employment Agreement) or (iii) as a result of our non-extension of the Herz Employment Agreement, where the notice of such non-extension provided by us pursuant to the Herz Employment Agreement does not include notice that we are waiving enforcement of the noncompetition provision of the Herz Employment Agreement (together with (i) and (ii), a "Qualifying Termination"), he would be entitled to, subject to his execution of a release of claims (1) any accrued benefits, (2) a pro-rata portion of his Target Annual Bonus, (3) an amount equal to the product of (A) the Severance Multiple (as defined below) and (B) the sum of (I) his annual base salary and (II) the average annual bonus earned with respect to each of the last three consecutive completed calendar years immediately preceding the date of termination, (4) his annual bonus earned with respect to the prior year (to the extent unpaid), (5) up to 18 months of COBRA premium reimbursements and (6) with respect to any unvested equity award granted under the A&R 2026 Plan or any successor equity incentive plan thereto (A) that is subject solely to a time-based vesting condition, a prorated portion of such award that would have become vested as of the next vesting date immediately following the date of termination of employment will become vested upon such date of termination and (B) that is subject to subsequent performance-based vesting conditions will remain outstanding and continue to be eligible to vest in accordance with the performance metrics set forth in the applicable award agreement, subject to proration based on the executive's employment during the applicable performance period. "Severance Multiple" is defined as three in the event the termination of employment occurs during the Initial Term and two if the termination of employment occurs after the expiration of the Initial Term. In the event Mr. Herz is terminated by reason of death or "disability" (as such term is defined in the Herz Employment Agreement), Mr. Herz would be entitled to (1) any accrued benefits, (2) a pro-rata portion of his Target Annual Bonus, (3) up to 18 months of COBRA premium reimbursements, (4) his annual bonus earned with respect to the prior year (to the extent unpaid), and (5) subject to execution and non-revocation of a general release, any unvested equity award granted under the A&R 2026 Plan or any successor equity incentive plan thereto (A) that is subject solely to a time-based vesting condition will accelerate and vest in full on termination of employment and (B) that is subject to subsequent performance-based vesting conditions will remain outstanding and continue to be eligible to vest in accordance with the performance metrics set forth in the applicable award agreement.

Additionally, in the event Mr. Herz experiences a Qualifying Termination on or within the twenty-four months following a Change in Control (as defined in the A&R 2026 Plan), provided that he has executed and delivered a general release and any period for rescission of such general release has expired without his having rescinded such general release, in addition to the severance benefits described above, any unvested equity award (i) that is subject solely to a time-based vesting condition will accelerate and vest in full and (ii) that is subject to subsequent performance-based vesting conditions will vest and be settled at the greater of target and actual performance, each as of the termination of employment.

The Herz Employment Agreement also contains certain restrictive covenants, which require Mr. Herz to preserve and protect certain confidential information and, for a two-year period following his termination of employment if termination occurs during the initial term of employment under the Herz Employment Agreement (or the one-year period following his termination of employment if such termination occurs on or after the expiration of the initial term), to refrain from competing with the company group, soliciting its customers and employees and interfering with its vendors, joint venturers and licensors. Additionally, the Herz Employment Agreement includes a non-disparagement covenant. Under the Herz Employment Agreement, Mr. Herz will be permitted to pursue certain additional corporate opportunities so long as they do not result in a violation of his restrictive covenant obligations or his fiduciary duties.

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The Herz Employment Agreement further provides that if any payments or benefits Mr. Herz would be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code, such payments will be reduced to the extent necessary so that no portion is subject to the excise tax, but only if the after-tax amount of the reduced payments would be greater than or equal to the after-tax amount of the unreduced payments (after accounting for the excise tax).

***Employment Agreement of Mr. Slotterback***

The employment agreement of Mr. Slotterback will provide for the terms of his employment as Chief Financial Officer, Treasurer, and Secretary (the "Slotterback Employment Agreement"). The Slotterback Employment Agreement will be effective as of the consummation of this offering (the "Effective Date"), and have an initial term ending on the third anniversary of the Effective Date (the "Initial Term"), that will automatically renew for successive one-year periods unless either party provides at least 60 days' prior written notice of non-renewal. The Slotterback Employment Agreement is expected to provide for (i) an annual base salary of $400,000, (ii) a target annual bonus equal to 100% of his annual base salary (the "Target Annual Bonus") consisting of a combination of cash and/or equity awards as determined by the Board or the Company's Compensation Committee and (iii) eligibility to participate in the employee benefits programs offered by us to our employees generally.

Pursuant to the Slotterback Employment Agreement, in the event Mr. Slotterback's employment is terminated (i) by us without "cause," (ii) by Mr. Slotterback for "good reason" (each as defined in Slotterback Employment Agreement) or (iii) as a result of our non-extension of the Slotterback Employment Agreement, where the notice of such non-extension provided by us pursuant to the Slotterback Employment Agreement does not include notice that we are waiving enforcement of the noncompetition provision of the Slotterback Employment Agreement (together with (i) and (ii), a "Qualifying Termination"), he would be entitled to, subject to his execution of a release of claims (1) any accrued benefits, (2) a pro-rata portion of his Target Annual Bonus, (3) an amount equal to the product of (A) two (2) and (B) the sum of (I) his annual base salary and (II) the average annual bonus earned with respect to each of the last three consecutive completed calendar years immediately preceding the date of termination, (4) his annual bonus earned with respect to the prior year (to the extent unpaid), (5) up to 18 months of COBRA premium reimbursements and (6) with respect to any unvested equity award granted under the A&R 2026 Plan or any successor equity incentive plan thereto (A) that is subject solely to a time-based vesting condition, a prorated portion of such award that would have become vested as of the next vesting date immediately following the date of termination of employment will become vested upon such date of termination and (B) that is subject to subsequent performance-based vesting conditions will remain outstanding and continue to be eligible to vest in accordance with the performance metrics set forth in the applicable award agreement, subject to proration based on the executive's employment during the applicable performance period. In the event Mr. Slotterback is terminated by reason of death or "disability" (as such term is defined in the Slotterback Employment Agreement), Mr. Slotterback would be entitled to (1) any accrued benefits, (2) a pro-rata portion of his Target Annual Bonus, (3) up to 18 months of COBRA premium reimbursements, (4) his annual bonus earned with respect to the prior year (to the extent unpaid) and (5) subject to execution and non-revocation of a general release, any unvested equity award granted under the A&R 2026 Plan or any successor equity incentive plan thereto (A) that is subject solely to a time-based vesting condition will accelerate and vest in full on termination of employment and (B) that is subject to subsequent performance-based vesting conditions will remain outstanding and continue to be eligible to vest in accordance with the performance metrics set forth in the applicable award agreement.

Additionally, in the event Mr. Slotterback experiences a Qualifying Termination on or within the twenty-four months following a Change in Control, provided that he has executed and delivered a general release and any period for rescission of such general release has expired without his having rescinded such general release, in addition to the severance benefits described above, any unvested equity award (i) that is subject solely to a time-based vesting condition will accelerate and vest in full and (ii) that is subject to subsequent performance-based vesting conditions will vest and be settled at the greater of target and actual performance, each as of the termination of employment.

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The Slotterback Employment Agreement also contains certain restrictive covenants, which require Mr. Slotterback to preserve and protect certain confidential information and, for a two-year period following his termination of employment if termination occurs during the initial term of employment under the Slotterback Employment Agreement (or the one-year period following his termination of employment if such termination occurs on or after the expiration of the initial term), to refrain from competing with the company group, soliciting its customers and employees and interfering with its vendors, joint venturers and licensors. Additionally, the Slotterback Employment Agreement includes a non-disparagement covenant, and requires the execution of a release and continued compliance with the restrictive covenants to receive the severance benefits described above. Under the Slotterback Employment Agreement, Mr. Slotterback will be permitted to pursue certain additional corporate opportunities so long as they do not result in a violation of his restrictive covenant obligations or his fiduciary duties.

The Slotterback Employment Agreement further provides that if any payments or benefits Mr. Slotterback would be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code, such payments will be reduced to the extent necessary so that no portion is subject to the excise tax, but only if the after-tax amount of the reduced payments would be greater than or equal to the after-tax amount of the unreduced payments (after accounting for the excise tax).

***Outstanding Equity Awards at Fiscal Year-End***

As of December 31, 2025, none of our NEOs held outstanding equity awards granted by us.

***Retirement Plan***

Our named executive officers other than Mr. Slotterback currently participate in a defined contribution 401(k) plan maintained for employees of the Company (the "401(k) Plan"). The Internal Revenue Code allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to the 401(k) plan**.** We believe that providing a vehicle for tax-deferred retirement savings through a 401(k) plan adds to the overall desirability of our compensation package and further incentivizes our employees, including our named executive officers.

***Health and Welfare Plans; Perquisites***

Our named executive officers are currently eligible to participate in a standard suite of health and welfare plans offered to the Company's employees, including medical, dental and vision plans.

We did not provide any perquisites or special personal benefits to our named executive officers in fiscal year 2025, but our Compensation Committee may from time to time approve them in the future when our Compensation Committee determines that such perquisites are necessary or advisable to fairly compensate or incentivize our employees.

***Potential Payments upon Termination or Change-in-Control***

As of December 31, 2025, none of our NEOs were subject to any arrangements that provide for payments or vesting upon a termination of employment or change in control. However, in connection with this offering, Messrs. Herz and Slotterback will become subject to employment agreements and/or our NEOs may be granted equity awards pursuant to the A&R 2026 Plan that will provide for potential payments upon certain terminations of employment or upon a change in control. In addition, as described below under "Certain Relationships and Related Party Transactions—Investment Management Agreement," the Management Contributor earns a Liquidity Incentive Fee upon a liquidity event for our assets, and a portion of this Liquidity Incentive Fee may be paid to our NEOs by the Manager.

***Policies and Practices Related to the Timing of Grants of Certain Equity-Based Awards***

The Company does not currently grant awards of stock options, stock appreciation rights or similar option-like instruments and, therefore, does not have a policy or practice relating to the timing of such awards in relation to the disclosure of material non-public information by the Company.

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***Director Compensation***

The following table sets forth information concerning the compensation of the Company's non-employee directors for 2025. Any director who is an employee receives no additional compensation for services as a director or as a member of a committee of the Company's board of directors. Non-employee directors were originally eligible to receive an annual retainer of $80,000, with $40,000 paid in cash on a quarterly basis and $40,000 paid in common stock on an annual basis. However, in the third quarter of 2025 we revised our non-employee director compensation program to provide an annual retainer of $100,000, with $50,000 paid in cash on a quarterly basis and $50,000 paid in common stock on an annual basis (which commenced following the adoption of the Existing 2026 Plan). No director equity awards were outstanding at December 31, 2025.

In addition, non-employee directors who serve on the Manager Internalization Committee receive up to $10,000 on a monthly basis not to exceed an annual total of $60,000 (in the aggregate for all directors). We also reimburse our non-employee directors for their travel and other reasonable expenses incurred in attending meetings of our board of directors and committees of the board of directors.

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| **Name** | **Fees Earned or<br>Paid in Cash ($)<sup>(1)</sup>** | **Total ($)** |
|  Alan Bigman<sup>(2)</sup> | $26250 | $26250 |
|  Peggy Gold | $72808 | $72808 |
|  Andrew Ceitlin  | $68331 | $68331 |

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(1) Represents fees paid to our directors for 2025.

(2) Mr. Bigman commenced service on our board of directors in November 2025.

In January 2026, we granted awards of restricted stock units to non-employee directors which will vest upon the earlier of (i) the non-employee director's removal as an independent director by the Company after the one year anniversary of the applicable vesting commencement date of the award or (ii) a "liquidity event" (as defined in the Existing 2026 Plan), including, but not limited to, the listing of the Company's common stock on a national securities exchange or a quotation through a national quotation system. In addition, such awards will fully accelerate and vest in the event of a director's termination of service due to such director's death or disability.

In connection with this offering, we approved a compensation program for our non-employee directors that consists of annual cash retainer fees and equity awards. The program will provide non-employee directors with an annual equity award, prorated for the initial year of service (if applicable), in years following the completion of this offering, which will vest on the earlier to occur of the first anniversary of the grant date and the date immediately preceding the date of the next annual meeting following the grant date, subject to continued service on our board of directors. Each will be denominated as a restricted stock unit award with an aggregate value of $150,000. Each non-employee director will also receive an annual cash retainer for his or her services in an amount equal to $75,000. In addition, certain positions on the board of directors or committees of the board of directors will receive additional retainers, including the chairperson of the audit committee who is expected to receive an additional retainer of $20,000, the chairperson of the compensation committee who will receive an additional retainer of $15,000 and the chairperson of the nominating and corporate governance committee who will receive an additional retainer of $15,000. Compensation under the program will be subject to annual limits on non-employee director compensation set forth in the A&R 2026 Plan.

In connection with this offering, we intend to grant restricted stock unit awards to directors serving on the Board on the date of this offering, which grants will become effective in connection with the completion of this offering and are expected to have a value of $250,000. These restricted stock unit awards will vest in full on the first anniversary of the closing of this offering, subject to the director's continued service through such date.

All outstanding director equity awards granted pursuant to our compensation program for non-employee directors will accelerate and vest in full immediately prior to a "Change in Control" (as defined in the A&R 2026 Plan).

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***Equity Plans***

***Existing 2026 Plan.*** We currently maintain the Existing 2026 Plan, which provides for certain designated employees, officers, directors, consultants and advisors to be eligible for equity ownership opportunities that are intended to align the interest of such persons with those of our stockholders. We believe that such awards attract, retain and motivate persons who are expected to make important contributions to us. The Existing 2026 Plan is generally administered by our Board and provides for the grant of options, cash-based incentive awards, restricted stock, restricted stock units and other stock-based awards, including stock appreciation rights. As of May 26, 2026 there were 200,000 shares of our common stock available for issuance under the Existing 2026 Plan and 84,704 shares subject to outstanding restricted stock units which have been granted under the Existing 2026 Plan. On and after the closing of this offering, the Existing 2026 Plan will be superseded in its entirety by the A&R 2026 Plan.

The restricted stock units granted to certain employees under the Existing 2026 Plan in January 2026 are generally subject to graded, time-based vesting over either three or four years; provided that such award will remain outstanding and eligible to vest for 90 days if the employee is terminated by the Company other than for cause and a change of control (as defined in the Existing 2026 Plan) occurs within such 90 day period, and will accelerate and vest in full in the event of the holder's termination of service due to death or disability, or in the event the holder's service is terminated by the Company other than for cause within 90 days of a change of control.

This summary is not a complete description of all provisions of the Existing 2026 Plan and is qualified in its entirety by reference to the Existing 2026 Plan, which is filed as an exhibit to the registration statement of which this prospectus is part.

***A&R 2026 Plan.*** In connection with this offering, we adopted the A&R 2026 Plan, under which we may grant cash and equity-based incentive awards to eligible service providers in order to attract, motivate and retain the talent for which we compete. The material terms of the A&R 2026 Plan are summarized below. This summary is not a complete description of all provisions of the A&R 2026 Plan and is qualified in its entirety by reference to the A&R 2026 Plan, which will be filed as an exhibit to the registration statement of which this prospectus is a part.

***Eligibility***. Participation in the A&R 2026 Plan will be limited to any (i) individuals employed by the Company (or any successor) or its subsidiaries (collectively, the "Company Group"); provided, that no such employee covered by a collective bargaining agreement will be eligible to participate in the A&R 2026 Plan unless and to the extent that such eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; (ii) directors and officers of the Company Group; and (iii) consultants or advisors to the Company Group who may be offered securities registrable pursuant to a registration statement on Form S-8 under the Securities Act, who, in the case of each of clauses (i) through (iii) above has entered into an award agreement or who has received written notification from the Committee or its designee that they have been selected to participate in the A&R 2026 Plan.

***Administration***. The A&R 2026 Plan will be administered by the Compensation Committee of the Board or any properly delegated subcommittee thereof or, if no such committee exists, the Board itself (the "Committee"). The Committee will have broad authority to designate participants, determine the type and terms of awards, interpret the plan, and make all other determinations necessary for administration of the plan.

***Share Reserve***. The maximum number of shares of Class A common stock that will be available for awards under the A&R 2026 Plan is equal to the sum of (a) a number of shares of Class A common stock equal to 10% of the number of shares of the classes of common stock outstanding on an as-converted basis as of immediately following the offering; and (b) an annual increase on the first day of each calendar year beginning on the January 1<sup>st</sup> of the first calendar year following the calendar year in which the offering occurs and ending on and including

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the ninth anniversary of such January 1st, equal to the lesser of (i) 5% of the aggregate number of shares of Class A common stock and Class B common stock outstanding on an as-converted basis on the last day of the immediately preceding calendar year and (ii) such smaller number of shares of Class A common stock as is determined by the Board (the "Overall Share Limit"). No more than a number of shares equal to the initial share reserve pursuant to the foregoing clause (a) may be issued pursuant to the exercise of "incentive stock options" granted under the A&R 2026 Plan.

Shares of common stock subject to awards that are forfeited, repurchased, surrendered, expire or otherwise terminate without issuance in full, or are settled in cash, in each case, in a manner that results in the Company acquiring shares of common stock covered by the award at a price not greater than the price paid by the participant for such shares of common stock or otherwise does not result in the issuance of all or a portion of the shares of common stock subject to such award (including on payment in shares of common stock on exercise of a stock appreciation right), such shares of common stock will, to the extent of such forfeiture, repurchase, surrender, expiration, termination, cash settlement or non-issuance, be added back to the shares available for grant under the A&R 2026 Plan. Awards granted under the A&R 2026 Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by an entity in connection with a corporate acquisition or combination with the Company will not reduce the shares authorized for grant under the A&R 2026 Plan.

In the event that (i) any option or other award granted under the A&R 2026 Plan is exercised through the tendering of shares of Class A common stock or by the withholding of shares of Class A common stock by the Company, or (ii) withholding tax liabilities arising from such option or other award are satisfied by the tendering of shares of Class A common stock or by the withholding of shares by the Company, then in each such case the shares of Class A common stock so tendered or withheld will be added to the shares of Class A common stock available for grant under the A&R 2026 Plan. The payment of dividend equivalents in cash in conjunction with any outstanding awards will not count against the Overall Share Limit. The following shares of Class A common stock will not be added to the shares of Class A common stock authorized for grant and will not be available for future grants of awards: (i) shares of Class A common stock subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right on exercise thereof; and (ii) shares of Class A common stock purchased on the open market by the Company with the cash proceeds from the exercise of options.

***Types of Awards***. The A&R 2026 Plan will authorize the grant of incentive stock options ("ISOs"), nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), and other equity-based awards and cash-based incentive awards. Each award must be evidenced by a written award agreement.

***Stock Options and SARs.*** The A&R 2026 Plan will allow for the grant of stock options, which may be ISOs within the meaning of Section 422 of the Internal Revenue Code (the "Code") or non-qualified stock options. Stock options must have an exercise price of no less than 100% of the fair market value of a share of Class A common stock on the date of grant (110% in the case of an ISO granted to an employee who, at the time the ISO is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company Group). The option exercise price is payable in cash, check, cash equivalent and/or shares of common stock valued at the fair market value at the time the option is exercised (provided, that such shares of Class A common stock are not subject to any pledge or other security interest and have been held by the participant for at least six (6) months) or by such other method as the Committee may permit, in its sole discretion. Options typically expire ten years after grant (five years after grant in the case of an ISO granted to a participant who, at the time the ISO is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company Group) or earlier as may be provided in an award agreement.

The A&R 2026 Plan will also allow for the grant of SARs, which represent the right to receive any appreciation in a share of Class A common stock over a particular time period. These awards may be granted alone or in tandem with options under the A&R 2026 Plan. The strike price of a SAR may not be less than 100% of the fair

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market value of the underlying share on the date of grant (except with respect to certain substitute SARs granted in connection with a corporate transaction); provided that a SAR granted in tandem with (or in substitution for) an option previously granted shall have a strike price equal to the exercise price of the corresponding option. The term of a SAR may not be longer than ten years.

***Restricted Stock*.** The A&R 2026 Plan will allow for the grant of shares of restricted stock. An award of restricted stock is a grant of shares of Class A common stock which are subject to vesting conditions and transfer restrictions.

***RSUs*.** The A&R 2026 Plan will allow for the grant of RSUs. RSUs represent a right to receive, upon satisfaction of applicable vesting conditions, either a specified number of shares of Class A common stock or a cash payment equal to the fair market value (as of the date on which the applicable restricted period lapses) of a specified number of shares of Class A common stock, at the discretion of the Committee.

***Other Equity-Based Awards*.** The A&R 2026 Plan will allow for the grant of other equity-based awards, including awards that may be settled in shares of Class A common stock, in other property based on the value of a share of common stock, or as dividends on Class A common stock or dividend equivalents in respect of dividends paid on common stock. Any dividend or dividend equivalent otherwise payable in respect of any award under the A&R 2026 Plan that remains subject to vesting conditions at the time of payment of such dividend or dividend equivalent may be retained by the Company and remain subject to the same vesting conditions and risks of forfeiture as the underlying award to which the dividend or dividend equivalent relates.

***Cash-Based Incentive Awards.*** The A&R 2026 Plan will allow for the grant of cash-based incentive awards, which are awards denominated in cash.

***Vesting***. Awards granted under the A&R 2026 Plan will vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, attainment of performance criteria. The Committee may at any time provide that any award will become immediately vested and fully or partially exercisable, free of some or all restrictions or conditions, or otherwise fully or partially realizable.

***Non-Employee Director Compensation Limits***. The maximum value of awards granted during a single fiscal year to any non-employee director, for services rendered as a non-employee director, taken together with any cash fees paid to such non-employee director during the fiscal year, may not exceed $750,000 in total value in respect of any fiscal year of the non-employee director's service on the Board. The Committee may make exceptions to such annual non-employee director compensation limit in extraordinary circumstances, as the Committee may determine in its discretion, provided that the non-employee director receiving such additional compensation may not participate in the decision to award such compensation or in other contemporaneous compensation decisions involving non-employee directors.

***Change in Control and Adjustment Event***. The A&R 2026 Plan will include provisions addressing the treatment of awards in connection with a Change in Control or other Adjustment Event (each as defined in the A&R 2026 Plan). The Committee is authorized to take various actions with respect to outstanding awards whenever the Committee determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the A&R 2026 Plan or with respect to any award under the A&R 2026 Plan, to facilitate transactions or events or to give effect to changes in applicable laws or accounting principles. Such actions may include substituting or assuming awards, accelerating vesting, canceling awards and making cash payments in settlement, adjusting the number and type of shares subject to awards as well as the exercise price or any applicable performance measures, replacing awards with other rights or property, and providing that awards will terminate following an applicable event.

***No Repricing***. Except as otherwise permitted under the A&R 2026 Plan in the context of an Adjustment Event, the Committee may not, without stockholder approval (i) reduce the exercise price of any option or the strike price of any SAR; (ii) cancel any outstanding option or SAR and replace it with a new option or SAR (with a

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lower exercise price or strike price, as the case may be) or other award or cash payment that is greater than the intrinsic value (if any) of the cancelled option or SAR; and (iii) take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted.

***Transferability***. Awards granted under the A&R 2026 Plan are generally not transferable other than by will or the laws of descent and distribution. The Committee may, in its discretion, permit transfers to certain family members, trusts, partnerships or limited liability companies for the benefit of the participant and immediate family members, and charitable organizations.

***Clawback***. All awards granted under the A&R 2026 Plan are subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with any clawback, forfeiture or similar policy adopted by the Board or the Committee and applicable law.

***Amendment and Termination***. The Board or Committee may amend, alter, suspend, discontinue or terminate the A&R 2026 Plan at any time, provided that stockholder approval is required for amendments where necessary to comply with applicable regulatory requirements or changes in accounting standards. No amendment that would materially and adversely affect the rights of any participant will be effective without the affected participant's consent. The A&R 2026 Plan will remain in effect until terminated by the Committee; provided, that an Incentive Stock Option may not be granted under A&R 2026 Plan after ten years from the date the stockholders adopted the A&R 2026 Plan.

***Grant of Awards to Certain Eligible Persons***. The Company may provide through the establishment of a formal written policy (which will be deemed a part of the A&R 2026 Plan) or otherwise for the method by which shares of common stock or other securities of the Company may be issued and by which such shares of common stock or other securities and/or payment therefor may be exchanged or contributed among the Company, its subsidiaries, or any of its affiliates, or may be returned to the Company upon any forfeiture of shares of common stock or other securities by the eligible person.

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**PRINCIPAL STOCKHOLDERS** 

The following table shows information as of May 26, 2026 regarding the beneficial ownership of our Class A common stock as adjusted to give effect to this offering by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known by us to beneficially own more than 5% of our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors and named executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group.

Beneficial ownership of shares is determined under rules of the SEC and generally includes any shares over which a person exercises sole or shared voting or investment power. Except as noted by footnote, and subject to community property laws where applicable, we believe based on the information provided to us that the persons and entities named in the table below have sole voting and investment power with respect to all shares of our Class A common stock shown as beneficially owned by them.

Percentage of beneficial ownership is based on (a) 15,296,579 shares of Class A common stock outstanding as of May 26, 2026 and 22,221,579 shares of Class A common stock outstanding after giving effect to this offering, assuming no exercise of the underwriters' option to purchase additional shares, or 23,260,329 shares of Class A common stock, assuming the underwriters exercise their option to purchase additional shares in full, and gives effect to the Transactions and (b) 3,750,000 shares of Class B common stock outstanding as of May 26, 2026, after giving effect to the Transactions. The table below does not reflect any shares of Class A common stock that executive officers and directors may purchase in this offering through the directed share program described under "Underwriting—Directed Share Program." Unvested time-based shares of restricted Class A common stock subject to forfeiture are deemed to be beneficially owned by the holders thereof. Shares of Class A common stock subject to options currently exercisable or exercisable within 60 days of the date of this prospectus are deemed to be outstanding and beneficially owned by the person holding the options for the purposes of computing the percentage of beneficial ownership of that person and any group of which that person is a member, but are not deemed outstanding for the purpose of computing the percentage of beneficial ownership for any other person. Unless otherwise indicated, the address of all listed stockholders is 2000 Market Street, Suite 910, Philadelphia, PA 19103.

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A Common Stock**<br>**Beneficially Owned** | **Class A Common Stock**<br>**Beneficially Owned** | **Class A Common Stock**<br>**Beneficially Owned** | **Class A Common Stock**<br>**Beneficially Owned** | **Class A Common Stock**<br>**Beneficially Owned** | **Class A Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Combined Voting**<br>**Power<sup>(2)</sup>** | **Combined Voting**<br>**Power<sup>(2)</sup>** |
|  | **Before**<br>**this offering<sup>(1)</sup>** | **Before**<br>**this offering<sup>(1)</sup>** | **After this<br>offering (no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering (no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering (with<br>full exercise**<br>**or over-<br>allotment<br>option)** | **After this<br>offering (with<br>full exercise**<br>**or over-<br>allotment<br>option)** | **Before**<br>**this offering** | **Before**<br>**this offering** | **After this<br>offering (no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering (no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering (with<br>full exercise**<br>**or over-<br>allotment<br>option)** | **After this<br>offering (with<br>full exercise**<br>**or over-<br>allotment<br>option)** | **After this<br>offering<br>(No<br>exercise<br>of over-<br>allotment<br>option)** | **After this<br>offering<br>(with full<br>exercise<br>of over-<br>allotment<br>option)** |
| **Name of beneficial owner** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **%** | **%** |
|  **5% Stockholders** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Omega Capital Partners, LP<sup>(3)</sup> | 3261216 | 21.3% | 3261216 | 14.7% | 3261216 | 14.0% |  |  |  |  |  |  | 12.6% | 12.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wayne Cooperman<sup>(4)</sup> | 867280 | 5.7% | 867280 | 3.9% | 867280 | 3.7% |  |  |  |  |  |  | 3.3% | 3.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WhiteHawk Minerals LLC<sup>(5)</sup> | 358893 | 2.3% | 358893 | 1.6% | 358893 | 1.5% | 3750000<sup>(6)</sup> | 100% | 3750000<sup>(6)</sup> | 100% | 3750000<sup>(6)</sup> | 100% | 15.8% | 15.2% |
|  **Named Executive Officers and Directors** |  |  |  |  |  |  |  | **—** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Daniel Herz<sup>(5)</sup> | 544622<sup>(7)</sup> | 3.6% | 544622<sup>(7)</sup> | 2.5% | 544622<sup>(7)</sup> | 2.3% | 3750000 | 100% | 3750000 | 100% | 3750000 | 100% | 16.5% | 15.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffrey Slotterback<sup>(8)</sup> | 14369 | \* | 14369 | \* | 14369 | \* |  |  |  |  |  |  | \* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stephen Pilatzke | 5503 | \* | 5503 | \* | 5503 | \* |  |  |  |  |  |  | \* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Michael Downs<sup>(8)</sup> | 14369 | \* | 14369 | \* | 14369 | \* |  |  |  |  |  |  | \* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matthew Heinlein | 5584 | \* | 5584 | \* | 5584 | \* |  |  |  |  |  |  | \* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffery Smith<sup>(9)</sup> | 33212 | \* | 33212 | \* | 33212 | \* |  |  |  |  |  |  | \* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Peggy Gold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Andrew Ceitlin |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alan Bigman |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trey Karlovich |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **All directors, director designees and executive officers as a group (10 persons)** | 603290 | 3.9% | 603290 | 2.7% | 603290 | 2.6% | 3750000 | 100% | 3750000 | 100% | 3750000 | 100% | 16.8% | 16.1% |

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\* Represents beneficial ownership of less than 1% of our outstanding Class A common stock. 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Gives effect to (i) the Internalization and (ii) the Common Stock Reclassification (without the
effects of rounding).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents the percentage of voting power of our Class A common stock and Class B common stock, voting as a
single class. Each share of Class A common stock entitles the registered holder thereof to one vote per share, and each share of Class B common stock entitles the registered holder thereof to one vote per share, in each case, on all
matters presented to stockholders for a vote generally, including the election of directors. The Class A common stock and Class B common stock will vote as a single class on all matters except as required by law or our amended and restated
certificate of incorporation. Our Class B common stock does not have any of the economic rights (including rights to dividends and distributions upon dissolution or liquidation) associated with our Class A common stock. See "Description
of Capital Stock."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents beneficial ownership of shares of Class A common stock held by Omega Capital Partners, LP
("Omega"). By virtue of his position as managing member of the general partner of Omega, Leon Cooperman may be deemed to have sole voting and dispositive power over the shares held by Omega. The business address of Omega is 7118 Melrose
Castle Lane, Boca Raton, Florida 33496.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The business address of Wayne Cooperman is 636 Morris Turnpike, Suite 3B, Short Hills, NJ 07078.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Mr. Herz serves as the sole Managing Member of WhiteHawk Energy LLC, which in turn serves as the sole Managing
Member of WhiteHawk Minerals LLC. In such capacity, Mr. Herz exercises sole voting and investment power over the shares of Class A and Class B common stock held by WhiteHawk Minerals LLC and may therefore be deemed to beneficially own such shares.
Mr. Herz disclaims beneficial ownership of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Represents shares of Class B common stock issued to WhiteHawk Minerals LLC in connection with the
Internalization, but does not reflect any shares of Class B common stock issuable pursuant to the Earnout Amount. Following the first anniversary of the closing of the Internalization, WhiteHawk Minerals LLC expects to distribute the
3,750,000 shares of Class B common stock received by it in connection with the Internalization to the Subsequent Continuing Equity Owners. Such distribution will be made in accordance with the distribution provisions of the governing
documents of the Management Contributor and WhiteHawk Energy LLC, a member of the Management Contributor. Upon such distribution, based on each Subsequent Continuing Equity Owner's direct or indirect economic interest in WhiteHawk Minerals
LLC, the Subsequent Continuing Equity Owners expect to receive the following shares of Class B common stock: Omega — 262,500 shares; Wayne Cooperman — 262,500 shares; Daniel Herz — 1,798,126 shares; Jeffery Smith (indirectly,
through BCA-WHE, LLC) — 656,249 shares; PhiCap Advisors, LLC — 513,750 shares; and Matthew Heinlein — 256,875 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Represents 185,729 shares of Class A common stock held before the offering and 358,893 shares of restricted
Class A common stock held by WhiteHawk Minerals LLC. See also footnote (5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Represents shares held by PhiCap Advisors, LLC. Each of Jeffrey Slotterback and Michael Downs may be deemed to
share beneficial ownership of the shares attributable to PhiCap Advisors, LLC by virtue of their shared voting and investment power over the securities held by PhiCap Advisors, LLC. Each of Mr. Slotterback and Mr. Downs disclaims beneficial
ownership of the shares held by PhiCap. The address of PhiCap is 1430 Walnut Street, Suite 200, Philadelphia, PA 19102.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Represents shares held by BCA-WHE LLC ("BCA-WHE"). BCA-WHE is a Delaware limited liability company.
Jeffery A. Smith serves as the Chief Executive Officer of BCA-WHE. In such capacity, Mr. Smith has been delegated voting and dispositive power over the shares held by BCA-WHE. Mr. Smith disclaims beneficial ownership of the shares held by BCA-WHE.
The address of BCA-WHE is 3284 Northside Parkway NW, Suite 150 Atlanta, GA 30327.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

The following are summaries of certain provisions of our related party agreements and are qualified in their entirety by reference to all of the provisions of such agreements. Because these descriptions are only summaries of the applicable agreements, they do not necessarily contain all of the information that you may find useful. Therefore, we urge you to review the agreements in their entirety. Copies of the forms of the agreements have been filed as exhibits to the registration statement of which this prospectus is a part, and are available electronically on the website of the SEC at www.sec.gov.

We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that we would pay or receive, as applicable, in arm's-length transactions.

**OpCo Agreement** 

***Agreement in Effect Before Consummation of the Transactions***

We and OP GP are currently parties to the OpCo Agreement, which governs the business operations of WhiteHawk OpCo and defines the relative rights and privileges associated with the existing units of WhiteHawk OpCo. Under the existing OpCo Agreement, the OP GP has full, exclusive discretion to manage and control the business and affairs of WhiteHawk OpCo, and the day-to-day business operations of WhiteHawk OpCo are overseen and implemented by the OP GP and its Board of Managers.

***Agreement in Effect Upon Consummation of the Transactions***

In connection with the consummation of the Transactions, WhiteHawk OpCo will amend and restate the OpCo Agreement.

*Appointment of General Partner*. Under the OpCo Agreement, OP GP will serve as the sole general partner of WhiteHawk OpCo. As the sole member of OP GP, we will control OP GP and, through OP GP, control all of the day-to-day business affairs and decision-making of WhiteHawk OpCo without the approval of any limited partner. As such, we, through our officers and directors, will be responsible for all operational and administrative decisions of WhiteHawk OpCo and daily management of WhiteHawk OpCo's business. Pursuant to the terms of the OpCo Agreement, OP GP cannot be removed as the sole general partner of WhiteHawk OpCo, and OP GP may not transfer or assign its general partner interest or withdraw from WhiteHawk OpCo, except in connection with a General Partner Change of Control (as defined in the OpCo Agreement) or a reconstitution, conversion or transfer of such interest to one of our wholly-owned subsidiaries. Any vacancy in the position of general partner of WhiteHawk OpCo will be filled by us.

*Compensation, Fees and Expenses*. OP GP will not be entitled to compensation for its services as the general partner of WhiteHawk OpCo. We will be entitled to reimbursement by WhiteHawk OpCo for reasonable fees and expenses incurred on behalf of WhiteHawk OpCo, including all expenses associated with the Transactions, any subsequent offering of our Class A common stock, being a public company, and maintaining our corporate existence.

*Capitalization*. The OpCo Agreement authorizes three classes of units: common units, Series B preferred units and Series D preferred units. Common units share pro rata in profits, losses and distributions and (other than those held by us) are subject to the Redemption Right. The Series B and Series D preferred units are issued solely to us, accrue cumulative distributions, carry liquidation preferences, are non-voting and non-convertible (except for an automatic conversion into common units in connection with certain IPO- or Qualifying Offering-funded redemptions). OP GP may cause WhiteHawk OpCo to issue additional units or other equity securities substantially equivalent to a corresponding class or series of our stock.

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*Distributions*. Except to the extent such distributions would render WhiteHawk OpCo insolvent or are otherwise prohibited by law or any of our debt agreements, the OpCo Agreement will require "tax distributions" to be made by WhiteHawk OpCo to its unitholders, pro rata in accordance with economic interests, in an amount at least sufficient to allow its unitholders, including us, to pay taxes imposed on their allocable share of taxable income of WhiteHawk OpCo to the extent its unitholders, including us, do not otherwise receive non-tax distributions from WhiteHawk OpCo in amounts at least sufficient to allow such unitholders, including us, to pay such taxes. The assumed tax rate for purposes of determining tax distributions will be the highest combined U.S. federal, state, and local tax rate that may potentially apply to any one of WhiteHawk OpCo's unitholders, regardless of the actual, final tax liability of any such partner. The OpCo Agreement will also allow for cash distributions of "Available Cash" (as defined in the OpCo Agreement) to be made by WhiteHawk OpCo (subject to the sole discretion of OP GP) to its unitholders on a pro rata basis. We expect WhiteHawk OpCo may make such distributions periodically and as necessary to enable us to cover our operating expenses and other obligations, including any tax liability, except to the extent such distributions would render WhiteHawk OpCo insolvent or are otherwise prohibited by law or any of our future debt agreements.

*Transfer Restrictions*. The OpCo Agreement generally does not permit transfers of OpCo Interests by limited unitholders, except for transfers to permitted transferees, transfers pursuant to the Redemption Right (as described below) and transfers approved in writing by OP GP, and other limited exceptions. The OpCo Agreement may impose additional restrictions on transfers that are necessary or advisable so that WhiteHawk OpCo is not treated as a "publicly traded unitholdership" taxable as a corporation for U.S. federal income tax purposes. In the event of a permitted transfer under the OpCo Agreement, such limited partner will be required to simultaneously transfer to such transferee a number of shares of Class B common stock equal to the number of OpCo Interests that were transferred to such transferee. Notwithstanding the foregoing, Continuing Equity Owners will be prohibited from transferring or redeeming their OpCo Interests and corresponding Class B common stock or related securities for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering (the "OpCo Lockup").

*Redemption Right*. Subject to certain limitations, including the expiration of the OpCo Lockup, each Continuing Equity Owner will have the right (the "Redemption Right") to cause WhiteHawk OpCo to redeem all or a portion of their OpCo Interests for, at our election (determined solely by our independent directors who are disinterested), newly-issued shares of our Class A common stock on a one-for-one basis or a cash payment equal to (i) a volume weighted average market price of one share of Class A common stock for each OpCo Interest so redeemed or (ii) in the case that the cash is from a related sale of stock by us, the net proceeds per share from such sale, in each case in accordance with the terms of the OpCo Agreement. The Redemption Right may be exercised by a Continuing Equity Owner only three times per calendar quarter and is subject to a minimum redemption number specified in the OpCo Agreement. In connection with any such redemption, a corresponding number of shares of Class B common stock held by the redeeming Continuing Equity Owner will automatically be transferred to us for no consideration and canceled. We may, at our option, effect a direct exchange of cash or Class A common stock for such OpCo Interests in lieu of such a redemption by WhiteHawk OpCo. Whether by redemption or exchange, we are obligated to ensure that at all times the number of OpCo Interests we own equals the number of shares of Class A common stock issued and outstanding (subject to certain exceptions for treasury shares and equity compensation).

Each Continuing Equity Owner's Redemption Right will be subject to certain customary limitations, including the expiration of any contractual lock-up period relating to the shares of our Class A common stock that may be applicable to such Continuing Equity Owner and the absence of any liens or encumbrances on such OpCo Interests redeemed. We may elect to settle a redemption in cash only to the extent we have consummated a substantially contemporaneous private or public offering of shares of Class A common stock sufficient to fund such cash payment, and if such offering is not consummated by the redemption date, the redemption will instead be settled in shares of our Class A common stock. Additionally, in the case we elect a cash settlement, such Continuing Equity Owner may rescind its redemption request within a specified period of time. Moreover, in the

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case of a settlement in Class A common stock, such redemption may be conditioned on the closing of an underwritten distribution of the shares of Class A common stock to be issued in connection with such proposed redemption. In the case of a settlement in Class A common stock, such Continuing Equity Owner may also revoke or delay its redemption request if the following conditions exist: (1) any registration statement pursuant to which the resale of the Class A common stock to be registered for such Continuing Equity Owner at or immediately following the consummation of the redemption shall have ceased to be effective; (2) we failed to cause any related prospectus to be supplemented by any required prospectus supplement necessary to effect such redemption; (3) we exercised our right to defer, delay or suspend the filing or effectiveness of a registration statement and such deferral, delay or suspension shall affect the ability of such Continuing Equity Owner to have its Class A common stock registered at or immediately following the consummation of the redemption; (4) such Continuing Equity Owner is in possession of any material non-public information concerning us, the receipt of which results in such Continuing Equity Owner being prohibited or restricted from selling Class A common stock at or immediately following the redemption without disclosure of such information (and we do not permit disclosure); (5) any stop order relating to the registration statement pursuant to which the Class A common stock was to be registered by such Continuing Equity Owner at or immediately following the redemption shall have been issued by the SEC; (6) there shall have occurred a material disruption in the securities markets generally or in the market or markets in which the Class A common stock is then traded; (7) there shall be in effect an injunction, a restraining order or a decree of any nature of any governmental entity that restrains or prohibits the redemption; (8) we shall have failed to comply in all material respects with our obligations under the Registration Rights Agreement, and such failure shall have affected the ability of such Continuing Equity Owner to consummate the resale of the Class A common stock to be received upon such redemption pursuant to an effective registration statement; (9) the redemption date would occur during a black-out period; or (10) such Continuing Equity Owner so elects by written notice to WhiteHawk OpCo no later than three business days prior to the scheduled redemption date.

The OpCo Agreement will require that in the case of a redemption by a Continuing Equity Owner, we contribute cash or shares of our Class A common stock to WhiteHawk OpCo in exchange for an amount of newly-issued OpCo Interests equal to the number of OpCo Interests redeemed from the Continuing Equity Owner. WhiteHawk OpCo will then distribute the cash or shares of our Class A common stock, as applicable, to such Continuing Equity Owner to complete the redemption. In the event of a redemption election by a Continuing Equity Owner, we may, at our option, effect a direct exchange of cash or our Class A common stock for such OpCo Interests in lieu of such a redemption by WhiteHawk OpCo. Whether by redemption or exchange, we are obligated to ensure that at all times the number of OpCo Interests that we own equals the number of our outstanding shares of Class A common stock (subject to certain exceptions for treasury shares and shares underlying certain convertible or exchangeable securities).

Except for certain exceptions, any transferee of OpCo Interests must execute a joinder to the OpCo Agreement and assume all of the obligations of the transferring limited partner with respect to the transferred OpCo Interests, and such transferee shall be bound by any limitations and obligations under the OpCo Agreement. A limited partner shall remain as a limited partner with all rights and obligations until the transferee is admitted as a substitute limited partner in accordance with the OpCo Agreement.

*Issuance of OpCo Interests*. The OpCo Agreement will authorize the issuance of OpCo Interests to us in exchange for the net proceeds from this offering and any future offerings of our Class A common stock. Each OpCo Interest generally will entitle the holder to a pro rata share of the net profits and net losses and distributions of WhiteHawk OpCo based on the holder's Percentage Interest.

*Maintenance of One-to-One Ratios*. The OpCo Agreement requires WhiteHawk OpCo to take all actions with respect to its OpCo Interests, including issuances, reclassifications, distributions, divisions or recapitalizations, such that (1) we at all times maintain a ratio of one OpCo Interest owned by us, directly or indirectly, for each share of Class A common stock issued and outstanding (subject to certain exceptions for treasury stock and equity compensation), and (2) unless otherwise determined by the general partner, WhiteHawk OpCo at all times

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maintains a one-to-one ratio between the number of shares of Class B common stock issued to and owned by the Continuing Equity Owners and their permitted transferees and the number of OpCo Interests owned by the Continuing Equity Owners and their permitted transferees. WhiteHawk OpCo is prohibited from undertaking any subdivision or combination of the OpCo Interests that is not accompanied by an identical subdivision or combination of our Class A common stock and Class B common stock to maintain such one-to-one ratios.

*Issuance of OpCo Interests Upon Exercise of Equity Awards*. Upon the exercise of options or other equity awards issued by us, or the issuance of other types of equity compensation by us (such as the issuance of restricted or non-restricted stock, payment of bonuses in stock, or settlement of stock appreciation rights in stock), we will have the right to acquire from WhiteHawk OpCo a number of OpCo Interests equal to the number of shares of our Class A common stock being issued in connection with the exercise of such options or issuance of other types of equity compensation.

*Dissolution*. The OpCo Agreement will provide that the voluntary dissolution of WhiteHawk OpCo will require the unanimous consent of OP GP and all of the unitholders. In addition to a voluntary dissolution, WhiteHawk OpCo will be dissolved upon a Change of Control Transaction (as defined in the OpCo Agreement) that is not approved by the Majority Unitholders (as defined in the OpCo Agreement), the entry of a decree of judicial dissolution or other circumstances in accordance with Delaware law. Upon a dissolution event, the proceeds of a liquidation will be applied in the following order: (1) first, to pay all of the debts, liabilities and obligations of WhiteHawk OpCo owed to creditors other than the unitholders, including all expenses incurred in connection with the liquidation and winding up of WhiteHawk OpCo; (2) second, to pay all of the debts, liabilities and obligations of WhiteHawk OpCo owed to the unitholders (other than any payments or distributions owed to such unitholders in their capacity as unitholders pursuant to the OpCo Agreement); (3) third, to us in respect of the Series D Preferred Units, in an amount equal to the aggregate liquidation preference for all then-outstanding Series D Preferred Units; (4) fourth, to us in respect of the Series B Preferred Units, in an amount equal to the aggregate liquidation preference for all then-outstanding Series B Preferred Units; and (5) fifth, to the unitholders in respect of their common units pro rata in accordance with their respective Percentage Interests.

*Confidentiality*. OP GP and each partner agree to maintain the confidentiality of WhiteHawk OpCo's confidential information. This obligation excludes information independently obtained or developed by the unitholders, information that is in the public domain or otherwise disclosed to a partner, in either such case not in violation of a confidentiality obligation under the OpCo Agreement, or approved for release by written authorization of our Chief Executive Officer, Chief Financial Officer, or General Counsel, or any other officer designated by us.

*Indemnification*. The OpCo Agreement will provide for indemnification of OP GP, the limited unitholders, and officers of WhiteHawk OpCo or their respective affiliates, to the fullest extent permitted by Delaware law.

*Amendments*. The OpCo Agreement may generally be amended or modified solely by OP GP. However, certain amendments require additional approvals, including: amendments that modify any partner's limited liability or increase any partner's liabilities or obligations, which require the consent of each affected partner; amendments that materially alter or change the rights, preferences or privileges of any class of OpCo Interests in a manner that is different or prejudicial relative to other holders of the same class, which require the approval of the affected holders; and amendments that materially and adversely alter or change the rights, preferences or privileges of OP GP or us, which require the approval of a majority of our independent directors.

**Contribution Agreement** 

In connection with this offering, we and certain of our subsidiaries expect to enter into the Contribution Agreement with the Management Contributor providing for the contribution of ManagementCo to WhiteHawk OpCo in exchange for OpCo Interests, and in connection therewith, the Management Contributor will subscribe for a corresponding amount of shares of our Class B common stock. The description of the terms of the Internalization and the Contribution Agreement described herein are subject to the execution of definitive documentation among the parties thereto.

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***Internalization***

Under the terms of the Internalization, we will acquire all of the outstanding interests in ManagementCo from the Management Contributor, and WhiteHawk Energy Services LLC ("WhiteHawk Services"), the company that currently employs the personnel that manages our business on behalf of ManagementCo, will become a wholly-owned subsidiary of ManagementCo. After the closing of the Internalization and the consummation of this offering, we will be internally managed and operated by our executive officers and other employees. We will pay compensation and related employee expenses directly to our employees. In addition, in connection with the Internalization and the consummation of this offering, (i) Mr. Herz and Mr. Slotterback, who will be Subsequent Continuing Equity Owners, will enter into employment agreements, as further described in the section titled "Executive and Director Compensation," and (ii) our obligations under the Investment Management Agreement and Administrative Services Agreement, including the payment of the various management fees under the Investment Management Agreement, will be delegated in full to WhiteHawk OpCo. In addition, immediately before the contribution of the interests in ManagementCo and the delegation of the Investment Management Agreement and Administrative Services Agreement to WhiteHawk OpCo, ManagementCo will assign to Management Contributor the right to receive (x) the Liquidity Incentive Fee payable to ManagementCo under the Investment Management Agreement upon the consummation of this offering, which will be paid in accordance with its terms and (y) once fully vested in accordance with the terms of the Letter Agreement, the shares of restricted stock previously issued to ManagementCo under the Investment Management Agreement, which will remain outstanding in accordance with their terms. See "Certain Relationships and Related Party Transactions—Investment Management Agreement."

***Terms of the Contribution Agreement***

***Purchase Price***. Pursuant to the Contribution Agreement, we will acquire ManagementCo from the Management Contributor for a total purchase price of $125.0 million, subject to an adjustment up or down, in each case by a maximum of $15.0 million, depending on the initial public offering price (as adjusted, the "Internalization Price"). Based on the assumed initial public offering price of $26.00 per share of Class A common stock, which is the midpoint of the range set forth on the cover, and pursuant to the adjustment provisions of the Contribution Agreement, the Internalization Price would be $130.0 million. See "Prospectus Summary—Recent Developments—Internalization." The Internalization Price will be payable solely in the form of OpCo Interests and shares of Class B common stock. The number of OpCo Interests to be received by the Management Contributor will be determined by dividing the Internalization Price by the initial public offering price in this offering, and the Management Contributor will receive one share of Class B common stock for each OpCo Interest received. Following the first anniversary of the closing of the Internalization, we expect that the Management Contributor will distribute the OpCo Interests and Class B common stock received pursuant to the Contribution Agreement to the Subsequent Continuing Equity Owners. The number of OpCo Interests to be received by the Management Contributor pursuant to the Contribution Agreement will be determined by dividing the Internalization Price by the initial public offering price in this offering. As a result of the foregoing, we will not know the final Internalization Price until we determine the initial offering price per share of this offering. In addition, the Management Contributor will subscribe for and receive one share of Class B common stock for each OpCo Interest received. The Class B common stock has the same voting rights as our Class A common stock, but no economic value. The holders of the Class B common stock will not receive distributions from us. Upon any redemption or exchange of the OpCo Interests issued in connection with the Internalization for shares of our Class A common stock, the Company may benefit from certain tax attributes, including potential increases in tax basis that may reduce the amount of tax that would otherwise be payable by us. In connection with any such redemption or exchange of OpCo Interests, a corresponding number of shares of Class B common stock held by the relevant Continuing Equity Owners will automatically be transferred to us for no consideration and be canceled. See "Our Organizational Structure."

***Earnout***. Pursuant to the Contribution Agreement, the Continuing Equity Owners have agreed that 25% of the Internalization Price (the "Earnout Amount") is conditioned on us achieving certain Adjusted EBITDA targets

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(each an "EBITDA Target") in each of the three 12-month periods from July 1, 2026 to June 30, 2029 (each such 12-month period, an "Earnout Year") as follows:

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| | | |
|:---|:---|:---|
| <u>Earnout Year ending:</u> | <u>EBITDA Target:</u> | <u>Earnout Amount received:</u> |
| June 30, 2027 | $106.6 million | One-third |
| June 30, 2028 | $129.0 million | Up to two-thirds (less any Earnout Amount received in the prior Earnout Year) |
| June 30, 2029 | $126.0 million | Up to the entire Earnout Amount (less any Earnout Amount received in the prior two Earnout Years) |

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In addition, if we fail to achieve the EBITDA Target in any Earnout Year, the Continuing Equity Owners may become entitled to receive a proportionate share of the Earnout Amount if we achieve or surpass the following lower Adjusted EBITDA thresholds (each a "Minimum EBITDA"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $80.2 million for the Earnout Year ending June 30, 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $97.0 million for the Earnout Year ending June 30, 2028; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $94.8 million for the Earnout Year ending June 30, 2029.

In this case, the proportion of the Earnout Amount that the Continuing Equity Owners will be entitled to receive will be based on a percentage based on our actual Adjusted EBITDA for the relevant Earnout Year relative to the difference between the EBITDA Target and the Minimum EBITDA for such Earnout Year. With the exception of the DERs which will be paid in cash, the Earnout Amount, if and when earned, will be payable solely in the form of additional OpCo Interests and a corresponding number of shares of Class B common stock.

In addition, if we undergo a change of control (as defined in the Contribution Agreement), the Continuing Equity Owners will become entitled to receive the full Earnout Amount (to the extent not previously received), regardless of whether the change of control occurs during an Earnout Year or whether any EBITDA Target has been achieved.

If we fail to achieve the Minimum EBITDA for each of the three Earnout Years, the Continuing Equity Owners will not be entitled to receive any of the Earnout Amount.

***Dividend Equivalent Rights***. From and after the closing of the Internalization, the Continuing Equity Owners will be entitled to receive, in respect of the Earnout Amount, dividend and distribution equivalent payments in an amount equal to the dividends and distributions that would have been paid on the OpCo Interests issuable in respect of the Earnout Amount had such OpCo Interests been outstanding from the closing of the Internalization. Any such dividend and distribution equivalent payments not already paid that are attributable to any portion of the Earnout Amount that is ultimately not earned will be forfeited.

***Representations, Warranties and Covenants***. The Contribution Agreement will contain customary representations, warranties and covenants by the parties and also provide for indemnification, to be paid, if applicable, in the form of OpCo Interests, subject to certain limits, for inaccuracies or breaches of representations and warranties and breaches or failure to perform covenants. Under the terms of the Contribution Agreement, the consummation of the Internalization is subject to certain closing conditions, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the prior or contemporaneous effectiveness of the amended and restated OpCo Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• execution of employment agreements with certain Continuing Equity Owners, as further described in the section
titled "Executive and Director Compensation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the absence of any legal, regulatory or judicial action prohibiting the consummation of the Internalization or
the other Transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to the Class B common stock portion of the Internalization consideration, consummation of this
offering.

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The representations and warranties set forth in the Contribution Agreement will be made solely for the benefit of the parties to the Contribution Agreement. In addition, those representations and warranties (i) will be made only for the purpose of the Contribution Agreement, (ii) will be qualified by the disclosures made to the other party in connection with the Contribution Agreement, (iii) will be subject to certain materiality qualifications contained in the Contribution Agreement that may differ from what may be viewed as material by investors and (iv) will be included in the Contribution Agreement for the purpose of allocating risk between the contracting parties rather than establishing matters as facts and should not be relied upon by persons who are not parties to the Contribution Agreement as statements of factual information.

The Management Contributor will be prohibited under the terms of the Contribution Agreement from distributing, encumbering, transferring or otherwise disposing of any portion of the OpCo Interests and Class B common stock received pursuant to the Contribution Agreement until the later of (i) the date that is 12 months after the Contribution Date (with respect to OpCo Interests) or the Closing of the offering (with respect to the Class B common stock) (the "Release Date") and (ii) the date on which any claim that we make prior to the Release Date for indemnification under the terms of the Contribution Agreement is finally resolved. Notwithstanding the foregoing transfer restriction, to the extent that there are any unresolved indemnification claims that we have made prior to the Release Date, the Management Contributor will be permitted to distribute a portion of the OpCo Interests and Class B common stock received pursuant to the Contribution Agreement with a value in excess of 110% of our good faith estimate of the loss giving rise to indemnification claim. We expect that on or shortly after the Release Date, the Management Contributor will distribute to the Subsequent Continuing Equity Owners as much of the OpCo Interests and Class B common stock received pursuant to the Contribution Agreement as is permitted pursuant to the Contribution Agreement.

***Registration Rights.***

In connection with the Internalization, the Company and certain of the Subsequent Continuing Equity Owners will enter into the Registration Rights Agreement, which will include customary demand and piggyback registration rights, as further described in "Certain Relationships and Related Party Transactions."

***Lock-Up***. The Continuing Equity Owners will be subject to lock-up restrictions on the OpCo Interests and shares of Class B common stock received in connection with the Internalization. The lock-up applicable to Daniel Herz, Jeff Slotterback and Stephen Pilatzke will be set forth in their respective employment agreements, and the lock-up applicable to all other Continuing Equity Owners will be on the same terms as the lock-up applicable to other parties in connection with this offering, as further described in the section titled "—OpCo Agreement" and "Underwriting."

***Special Committee***

As part of the process of considering an internalization transaction, our board of directors approved the formation of a special committee comprised of Peggy Gold, Alan Bigman and Andrew Ceitlin, each of whom is an independent director within the meaning of the NYSE listing standards (the "Special Committee"). The Special Committee was represented by its own independent legal and financial advisors. None of the members of the Special Committee are or have been affiliated with ManagementCo. The Special Committee negotiated the terms of the Contribution Agreement in an arm's length transaction. The Special Committee unanimously recommended that the full board of directors of the Company approve the terms of the Contribution Agreement and underlying Internalization. On the basis of the Special Committee's recommendation, the full board of directors of the Company also unanimously approved the terms of the Contribution Agreement and underlying Internalization.

The foregoing description of the Contribution Agreement and the Registration Rights Agreement, and the transactions contemplated thereby, are summaries and are subject to, and qualified in their entirety by, the full text of the Contribution Agreement and the Registration Rights Agreement, copies of which are filed as exhibits to this registration statement and are incorporated by reference herein.

**Investment Management Agreement** 

We entered into the Investment Management Agreement, amended and restated as of October 3, 2025, with WhiteHawk Management. Certain of our directors and officers also serve as officers of WhiteHawk Management

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including Mr. Herz as chief executive officer, Mr. Smith as president and Mr. Slotterback as chief financial officer. WhiteHawk Management is indirectly controlled by WhiteHawk Energy, which is owned and controlled by Mr. Herz, Mr. Heinlein and PhiCap Advisors, where Mr. Slotterback is a partner. See "Executive and Director Compensation" for more information.

Pursuant to the Investment Management Agreement, WhiteHawk Management agreed to avail itself to the Company of its experience, source of information, advice, assistance and certain facilities to aid the Company in generating cash flow from its operations with the potential for capital appreciation. WhiteHawk Management's responsibilities pursuant to the Investment Management Agreement include, but are not limited to: (i) providing necessary investment advisory and management services, (ii) investigating, selecting and, on behalf of the Company, engaging and conducting business with such persons as WhiteHawk Management deems necessary to the proper performance of its obligations thereunder, (iii) locating, analyzing and performing due diligence on and selecting potential assets, (iv) structuring and negotiating terms and conditions of transactions pursuant to which asset acquisitions and dispositions will be made, (v) making asset acquisitions and dispositions on behalf of the Company in compliance with the business strategy and policies of the Company, (vi) arranging for financing and refinancing and making other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with asset acquisitions, (vii) determining the composition of the Company's assets, the nature and timing of the changes therein and the manner of implementing such changes, (viii) assisting the Company with asset valuations, (ix) servicing and monitoring the Company's assets and (x) arranging for the payment of Company expenses.

For the three months ended March 31, 2026 and 2025, we paid WhiteHawk Management $3.0 million and $1.4 million, respectively, and for the years ended December 31, 2025, 2024 and 2023, we paid WhiteHawk Management $10.0 million, $4.7 million and $2.3 million, respectively, related to WhiteHawk Management's Base Management Fee and Dividend Incentive Fee.

Under the Investment Management Agreement, WhiteHawk Management earns a monthly asset management fee (the "Base Management Fee"), a dividend incentive fee (the "Dividend Incentive Fee") and an incentive fee upon a liquidity event for our assets (the "Liquidity Incentive Fee").

*Liquidity Incentive Fee* 

The Liquidity Incentive Fee is equal to 12.5% of the excess proceeds from the liquidity event, calculated after the initial and continuing investors holding shares of WhiteHawk's Class A common stock or preferred stock, or any combination thereof, receive 100% of their initial invested capital plus a 7.5% annualized non-compounded return. The listing of our Class A common stock on the NYSE in connection with the consummation of this offering will constitute a liquidity event under the Investment Management Agreement, entitling WhiteHawk Management to the Liquidity Incentive Fee. The amount of the Liquidity Incentive Fee will be determined based on the initial public offering price per share of our Class A common stock, and is expected to be paid prior to the end of the second quarter of 2026.

In connection with the Internalization, WhiteHawk Management assigned to the Management Contributor all of its right, title and interest to receive the Liquidity Incentive Fee. As a result, the Liquidity Incentive Fee will be payable directly to the Management Contributor rather than to WhiteHawk Management.

Based on the assumed initial public offering price of $26.00 per share, which is the midpoint of the price range set forth on the cover of this prospectus, and the sale of 6,925,000 shares of our Class A common stock in this offering, the estimated Liquidity Incentive Fee payable to the Management Contributor would be approximately $13.6 million.

Because the actual Liquidity Incentive Fee will be determined based on the initial public offering price per share of our Class A common stock, the actual fee may be higher or lower than such estimate. A $1.00 increase or

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decrease in the assumed initial public offering price of $26.00 per share would increase or decrease, as applicable, the estimated Liquidity Incentive Fee by approximately $1.9 million, assuming the number of shares offered by us, as set forth on the cover of this prospectus, remains the same.

**Administrative Services Agreement** 

We entered into an administrative services agreement, dated as of March 1, 2022 (the "Administrative Services Agreement"), with WhiteHawk Management. Pursuant to the Administrative Services Agreement, WhiteHawk Management performs and oversees on our behalf the performance of various administrative services that we require. Such administrative services include, but are not limited to, the provision of office facilities and equipment; the provision of clerical, bookkeeping, general ledger accounting, and recordkeeping services; investor services, assistance with tax preparation; regulatory filings; procurement of operational services including agreements with custodians, escrow agents, depositories, transfer agents, accountants, auditors, engineers, environmental experts, tax consultants, advisers, escrow agents, attorneys, marketing contractors, public relations firms, investor communication agents, printers, insurers, banks, independent valuation agents, and any other services, except investment advisory services, as WhiteHawk Management from time to time determines to be necessary or useful to perform its obligations under the Administrative Services Agreement. The Administrative Services Agreement provides for the reimbursement of WhiteHawk Management's costs and expenses paid for such administrative services. For the three months ended March 31, 2026 and 2025, we paid WhiteHawk Management $1.4 million and $0.4 million, respectively, and for the years ended December 31, 2025, 2024 and 2023, we paid WhiteHawk Management $6.8 million, $2.1 million and $1.9 million, respectively, for reimbursement for the administrative costs and expenses paid pursuant to the Administrative Services Agreement.

**Other Related Party Transactions** 

Jeffery Smith, our President and director, is the chief executive officer and co-owner of Preferred Capital Securities, LLC ("PCS"). We entered into a dealer manager agreement, dated as of March 18, 2022 (the "Common Stock DMA"), with PCS. Pursuant to the Common Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with our continuing offer (the "Private Offering") to accredited investors of our Class A common stock, $0.0001 par value (the "Class A Shares"), Class I common stock, $0.0001 par value (the "Class I Shares"), and Class T common stock, $0.0001 par value (the "Class T Shares"), pursuant to a confidential private placement memorandum (the "Memorandum"). Under the agreement, PCS has agreed to find, on a best efforts basis, purchasers for our Class A Shares, Class I Shares and Class T Shares for cash through broker-dealers or registered investment advisors, all of which are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"), or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Common Stock DMA, PCS is entitled to a dealer manager fee of 2.5% of the price of Class A Shares and Class T Shares sold in the Private Offering. In addition, we agreed to pay PCS a selling commission equal to 6.0% of the price of Class A Shares, and 4.0% of Class T Shares sold in the Private Offering. Additionally, a trail commission equal to 0.7% annually will be paid on Class T Shares subject to the restrictions and provisions as described in the Memorandum. For the three months ended March 31, 2026 and 2025, we paid PCS $0.2 million and $0.2 million, respectively, and for the years ended December 31, 2025, 2024 and 2023, we paid PCS $5.2 million, $0.7 million and $0.9 million, respectively, in compensation for its services under the Dealer Manager Agreement.

We also entered into a dealer manager agreement, dated as of February 2, 2024 (the "Preferred Stock DMA" and, together with the Common Stock DMA, the "DMAs"), with PCS. Pursuant to the Preferred Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with the continuing Private Offering to accredited investors of shares of our Series B preferred common stock, $0.0001 par value (our "Series B Preferred Shares") pursuant to the Memorandum. Under the Preferred Stock DMA, PCS has agreed to find, on a best efforts basis, purchasers for our Series B Preferred Shares for cash through broker-dealers or registered investment advisors, all of which are members of FINRA or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

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Under the Preferred Stock DMA, PCS is entitled to a dealer manager fee of up to 3.0% of the price per Series B Preferred Share sold in the Private Offering. In addition, we agreed to pay PCS a selling commission of up to 7.0% of the price per Series B Preferred Share sold in the Private Offering. For the three months ended March 31, 2026 and 2025, we paid PCS $0.9 million and $0.3 million, respectively, and for the years ended December 31, 2025 and 2024, we paid PCS $1.6 million and $0.8 million, respectively, in compensation for its services under the Preferred Stock DMA.

Pursuant to each DMA, no selling commissions or dealer manager fees will be paid in connection with the common stock or preferred stock, as applicable, sold to WhiteHawk Management, its management and their family members, employees and their family members and WhiteHawk Management's other affiliates. As president of WhiteHawk Management, Mr. Smith is not entitled to any selling commissions or dealer management fees under each DMA.

PhiCap Advisors LLC ("PhiCap") provides leadership and capital solutions support to the Company through a consulting agreement. In addition, PhiCap owns approximately 10% of WhiteHawk Energy LLC (and receives approximately 20% of the economics of WhiteHawk Energy, LLC), which in turns owns 75% of WhiteHawk Minerals LLC. For the three months ended March 31, 2026, the Company paid PhiCap $0.1 million and $0.1 million in consulting fees and reimbursements, respectively. For the three months ended March 31, 2025, the Company paid PhiCap $0.1 million and $0.1 million in consulting fees and reimbursements, respectively. For the year ended December 31, 2025, the Company paid PhiCap $1.3 million and $0.3 million in consulting fees and reimbursements, respectively. During the year ended December 31, 2024, the Company paid $0.5 million and $0.1 million in consulting fees and reimbursements, respectively.

**Employment Agreements** 

Prior to the consummation of this offering, we intend to enter into employment agreements with certain of our named executive officers. See "Executive and Director Compensation—Additional Narrative Disclosure Regarding Executive Compensation Matters—Employment Agreements" for a description of the employment agreements.

**Registration Rights Agreement** 

In connection with this offering, we intend to enter into the Registration Rights Agreement with certain of the Subsequent Continuing Equity Owners. Pursuant to the Registration Rights Agreement, we will be required, as soon as practicable after, and in any event within 180 days after, the closing of this offering, to file with the SEC a registration statement registering the resale of all shares of our Class A common stock issuable to such Subsequent Continuing Equity Owners upon redemption or exchange of their OpCo Interests pursuant to the OpCo Agreement, and to use commercially reasonable efforts to cause such registration statement to be declared effective no later than the earlier of (i) 270 days after the closing of this offering and (ii) the tenth business day after the SEC notifies us that such registration statement will not be reviewed or will not be subject to further review. Such Subsequent Continuing Equity Owners will also have the right, subject to certain conditions (including the expiration of any applicable contractual lock-up), to demand that we effect underwritten offerings of their registrable shares with anticipated aggregate gross proceeds of at least $30.0 million (subject to a limit of two underwritten offerings in any twelve-month period) and to request resale registrations on Form S-3 (subject to the same minimum gross proceeds threshold) when we are eligible to use Form S-3. The Registration Rights Agreement will also provide for customary "piggyback" registration rights for all such Subsequent Continuing Equity Owners, customary cutback provisions on overallotted offerings, customary suspension and blackout rights for the Company (subject to a 120-day aggregate cap in any 365-day period), customary mutual indemnification and contribution provisions and a covenant that we will pay the Subsequent Continuing Equity Owners' registration expenses (including reasonable fees of one counsel for the Demanding Holders, but excluding underwriting discounts and brokerage fees, which the selling Holders will bear). The registration rights will be freely transferable to permitted transferees of the registrable shares.

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**Director and Officer Indemnification and Insurance** 

Prior to the consummation of this offering, we intend to enter into separate indemnification agreements with each of our directors and executive officers. The indemnification agreements will provide the executive officers and directors with contractual rights to indemnification, expense advancement and reimbursement, to the fullest extent permitted under the DGCL, subject to certain exceptions contained in those agreements. We have also purchased directors' and officers' liability insurance. See "Description of Capital Stock—Limitations on Liability and Indemnification of Officers and Directors."

**Our Policy Regarding Related Party Transactions** 

In connection with this offering, our board of directors will adopt a written related party transaction policy setting forth the policies and procedures for the review and approval or ratification by the audit committee of related party transactions. This policy will cover, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or series of transactions or arrangements in which we participate (whether or not we are a party) and a related party has or will have a direct or indirect material interest in such transaction. A related party includes (i) our directors, director nominees or executive officers, (ii) any 5% record or beneficial owner of our Class A common stock or (iii) any immediate family member of the foregoing. In reviewing and approving any related party transaction, the audit committee is tasked to consider all of the relevant facts and circumstances, and consideration of various factors enumerated in the policy.

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**DESCRIPTION OF MATERIAL INDEBTEDNESS** 

*The following is a summary of the material provisions relating to our material indebtedness. The following summary does not purport to be complete and is subject to, and qualified in its entirety by reference to the provisions of the corresponding agreement or instrument, including the definitions of certain terms therein that are not otherwise defined in this prospectus. You should refer to the relevant agreement or instrument for additional information, copies of which are filed as exhibits to the registration statement of which this prospectus is a part.* 

**Senior Notes** 

As used herein, "Note Purchase Agreement" refers, as applicable, to the Note Purchase Agreement as in effect prior to the consummation of the Transactions, or to the Note Purchase Agreement to be effective after the consummation of the Transactions, and as such agreement may thereafter be amended and/or restated.

***Note Purchase Agreement in Effect Upon Consummation of the Transactions***

On May 20, 2026, WhiteHawk OpCo entered into an Amended and Restated Note Purchase Agreement with U.S. Bank Trust Company, National Association, as agent, and the holders party thereto. In connection with the effectiveness thereof which will be contemporaneous with the effectiveness of this offering, the principal outstanding under the existing note purchase agreement will be paid down to evidence $75.0 million of senior notes (the "Senior Notes") (using a portion of the net proceeds from this offering) and the existing note purchase agreement will be assigned to WhiteHawk OpCo and will become a second lien obligation to the Revolving Credit Facility as further described below.

The Senior Notes will mature on May 20, 2031, or such earlier date on which all Senior Notes become due and payable in full, whether by acceleration or otherwise.

The obligations under the Note Purchase Agreement will be guaranteed by substantially all of WhiteHawk OpCo's existing and future direct and indirect subsidiaries, with certain customary or agreed upon exceptions. The Note Purchase Agreement will be secured by collateral including (i) substantially all of WhiteHawk OpCo's properties and assets, and the properties and assets of WhiteHawk OpCo's subsidiaries and (ii) pledges of the equity interests in all of WhiteHawk OpCo's present and future subsidiaries (subject to certain exceptions as provided for under the note documents).

The obligations under the Note Purchase Agreement will be subject to an intercreditor agreement between the agent for the holders of the Senior Notes and the administrative agent for the Revolving Credit Facility, which governs the relative rights and priorities of the first lien secured parties under the Revolving Credit Facility and the second lien secured parties under the Note Purchase Agreement with respect to the collateral.

The restrictions, covenants and funding obligations under the Note Purchase Agreement will be effective upon the closing of this offering.

*Interest Rates and Fees* 

Borrowings under the Note Purchase Agreement bear interest at a rate per annum equal to (a) for any Senior Note (other than an ABR Note), the Adjusted Term SOFR Rate plus 4.75%, or (b) for an ABR Note, ABR plus 3.75%. The Adjusted Term SOFR Rate is subject to a floor of 2.50%, and ABR is subject to a floor of 1.50%. Interest payments are due on the last day of each fiscal quarter and on the maturity date of the Senior Notes. All interest is computed on the basis of a 360-day year for the actual number of days elapsed. Upon the occurrence and during the continuance of certain events of default, the interest rate on overdue amounts increases by 2.0% per annum above the rate otherwise applicable.

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*Voluntary Prepayments* 

We may voluntarily prepay the Senior Notes on any business day in whole or in part, subject to (a) if being paid in whole, payment of all obligations, and (b) if being paid in part, a minimum principal amount of $1,000,000 and integral multiples of $500,000 in excess thereof. If permitted by the Revolving Credit Facility, we may also make voluntary prepayments in amounts up to $6,275,000 per fiscal quarter without penalty, premium or make-whole amount. All other voluntary prepayments will be subject to the applicable make-whole amount or prepayment fee described below.

*Mandatory Prepayments* 

The Note Purchase Agreement also requires WhiteHawk OpCo to prepay the Senior Notes (i) if the Consolidated Total Net Leverage Ratio on a pro forma basis is greater than or equal to 3.00 to 1.00 for the most recently ended rolling period, in an aggregate principal amount equal to Distributable Free Cash Flow (as defined in the Note Purchase Agreement), (ii) with 100% of the net cash proceeds from certain casualty events in excess of specified thresholds, subject to certain reinvestment rights, (iii) with 100% of the cash proceeds from the incurrence of debt not otherwise permitted under the Note Purchase Agreement, and (iv) with 100% of the net cash proceeds from certain non-ordinary course asset sales in excess of specified thresholds, subject to certain reinvestment rights, in each case subject to notice requirements and certain exceptions and net of any amounts prepaid or required to be prepaid under the Revolving Credit Facility. Such prepayments shall be made only to the extent permitted by the Revolving Credit Facility, and to the extent not permitted thereby, shall be made to prepay the Revolving Credit Facility. Each holder has the right to decline its pro rata share of any mandatory prepayment under clauses (ii) through (iv) above. Furthermore, upon the occurrence of a sale of all or substantially all the properties of the note parties or a Change in Control (each as defined in the Note Purchase Agreement), WhiteHawk OpCo is required to offer to repurchase all outstanding Senior Notes at the applicable redemption price.

*Make-Whole Amount and Prepayment Fee* 

Upon any prepayment of the Senior Notes (other than certain exempt prepayments, including certain mandatory prepayments, and certain voluntary prepayments as described above), whether as a result of an acceleration following an event of default, at WhiteHawk OpCo's option, or otherwise, WhiteHawk OpCo is required to pay an additional amount equal to (i) if such prepayment or acceleration occurs on or prior to June 23, 2027, the Make-Whole Amount (as defined in the Note Purchase Agreement) or (ii) if such prepayment or acceleration occurs after June 23, 2027 and on or prior to June 23, 2028, a prepayment fee of 2.0% of the principal amount prepaid, or (iii) if such prepayment or acceleration occurs after June 23, 2028, no prepayment fee is payable.

*Affirmative and Negative Covenants* 

The Note Purchase Agreement provides for customary representations, warranties and covenants, including, among other things, covenants relating to financial reporting, notices of material events, maintenance of the existence of the business, payment of obligations, hedging requirements, maintenance of collateral coverage, limitations on our ability to make investments and acquisitions, indebtedness (including that the borrowing base under the Revolving Credit Facility shall not exceed $200,000,000 if the Consolidated Total Net Leverage Ratio exceeds 2.50 to 1.00), liens, restricted payments, dividends and distributions, asset sales, mergers and consolidations, affiliate transactions, amendments to organizational documents and certain material agreements, and certain other fundamental transactions.

With respect to restricted payments, the Note Purchase Agreement permits WhiteHawk OpCo to make cash restricted payments to the direct holders of its equity interests so long as, both before and immediately after giving effect to any such restricted payment, (A) no default or event of default under the Note Purchase Agreement, or borrowing base deficiency under the Revolving Credit Facility, exists or results from such restricted payment, (B) WhiteHawk OpCo is in pro forma compliance with its financial covenants, (C) unused

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availability is at least 10% of the loan limit then in effect under the Revolving Credit Facility, and (D) the Consolidated Total Net Leverage Ratio on a pro forma basis for the most recently ended rolling period is (x) less than 2.50 to 1.00, in an aggregate amount not to exceed the Distributable Free Cash Flow (as defined in the Note Purchase Agreement), or (y) less than 3.00 to 1.00 but greater than or equal to 2.50 to 1.00, in an aggregate amount not to exceed 65% of the Distributable Free Cash Flow. If the Consolidated Total Net Leverage Ratio is greater than or equal to 3.00 to 1.00, no such restricted payments are permitted. Additionally, WhiteHawk OpCo may make cash restricted payments to the direct holders of its equity interests so long as, both before and immediately after giving effect to any such restricted payment, (X) no default or event of default under the Note Purchase Agreement, or borrowing base deficiency under the Revolving Credit Facility, exists or results from such restricted payment, (Y) WhiteHawk OpCo is in pro forma compliance with its financial covenants, and (Z) the Consolidated Total Net Leverage Ratio on a pro forma basis is less than 2.00 to 1.00. The Note Purchase Agreement also permits permitted tax distributions and certain other limited restricted payments.

With respect to hedging, the Note Purchase Agreement requires the note parties, (i) prior to or at closing, to enter into and thereafter maintain swap agreements with approved counterparties in respect of commodities for fair market value, entered into not for speculative purposes and in the form of fixed price swaps, the notional volumes of which are at least, for each month during the 36-month period immediately following the closing date, 75% of the reasonably anticipated projected production from the note parties' oil and gas properties constituting proved developed producing reserves of crude oil and natural gas, and (ii) prior to the end of each fiscal quarter, to enter into and thereafter maintain such swap agreements the notional volumes of which are at least, for each month during the 36-month period immediately following the end of the applicable fiscal quarter, 50% of the reasonably anticipated projected production from the note parties' oil and gas properties constituting proved developed producing reserves of crude oil and natural gas.

*Financial Covenants* 

The Note Purchase Agreement requires WhiteHawk OpCo to maintain, as of the last day of each fiscal quarter (commencing with the fiscal quarter ending June 30, 2026), a Consolidated Total Net Leverage Ratio (as defined in the Note Purchase Agreement) for the rolling period then ending of not greater than 3.50 to 1.00, an Asset Coverage Ratio (as defined in the Note Purchase Agreement) of not less than 1.00 to 1.00, and a Liquidity Percentage (as defined in the Note Purchase Agreement) of at least 10%.

*Events of Default* 

The Note Purchase Agreement contains events of default customary for facilities of this nature, including, among others: payment defaults, breaches of representations and warranties, failure to observe or perform covenants (subject to certain grace periods), certain cross-defaults to material indebtedness (including under the Revolving Credit Facility), bankruptcy or insolvency events, material judgments in excess of $10.0 million, defects in the perfection or priority of collateral or the enforceability of note documents, changes of control, certain ERISA events, and the failure of the intercreditor agreement to remain in full force and effect. Upon the occurrence and during the continuation of an event of default, the holders are able to declare any outstanding principal balance of the Senior Notes, together with accrued and unpaid interest, any applicable make-whole amount or prepayment fee, and all other amounts owed under the Note Purchase Agreement, to be immediately due and payable and exercise other remedies.

The Note Purchase Agreement contains a "most favored terms" provision pursuant to which, if at any time any documentation governing the Revolving Credit Facility includes any representation, warranty, covenant (including financial covenants), event of default or other term excluding applicable margin for determining interest rates that is more restrictive as to the Company, OP GP, WhiteHawk OpCo or any restricted subsidiary than the corresponding terms of the Note Purchase Agreement and the other note documents thereunder (other than with respect to any most favored terms in the Revolving Credit Facility in existence on the Closing Date (as defined in the Note Purchase Agreement)) (each, a "More Restrictive Term"), the terms of the Note Purchase Agreement will, without any further action on the part of WhiteHawk OpCo, the agent or any holder, be deemed

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to be automatically amended to incorporate each such More Restrictive Term, mutatis mutandis, effective as of the date when such More Restrictive Term became effective under the Revolving Credit Facility. As a result, the Note Purchase Agreement will at all times contain restrictions that are at least as restrictive as those set forth in the Revolving Credit Facility, and investors should be aware that the imposition of additional or more restrictive terms in the Revolving Credit Facility will automatically result in corresponding additional or more restrictive terms under the Note Purchase Agreement.

***Note Purchase Agreement in Effect Before Consummation of the Transactions***

On September 17, 2024 we entered into the Note Purchase Agreement, initially evidencing the issuance and purchase of Senior Secured First Lien Notes due 2030 by the certain holders party thereto in an aggregate principal amount of $65.0 million. On March 31, 2025, we entered into that certain First Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including the issuance and purchase of incremental Senior Notes in an aggregate principal amount of $86.0 million. On June 23, 2025, we entered into that certain Second Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including the issuance and purchase of incremental Senior Notes in an aggregate principal amount of $100.0 million. On January 27, 2026, we entered into that certain Third Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including permitting a like-kind exchange program with respect to certain acquired mineral interests and adding new subsidiaries as guarantors under the Note Purchase Agreement. On March 26, 2026, we entered into that certain Fourth Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including increasing the annual general and administrative cost that may be paid. On March 30, 2026, we entered into that certain Fifth Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including permitting the issuance of a new series of preferred stock and updating certain ratio tests for permitted distributions. As of March 31, 2026, we had $231.4 million of principal outstanding under our Senior Notes. Our Senior Notes bear interest at the adjusted term SOFR rate plus 6.50%, which, for the three months ended March 31, 2026, resulted in an interest rate of 10.30% per annum.

Under the Note Purchase Agreement, we may not make restricted payments (such as dividends or stock redemptions) except as specifically permitted. Permitted restricted payments include dividends and distributions that satisfy the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No Default or Event of Default (as defined in the Note Purchase Agreement) has occurred and is continuing or
would result from such payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we are in compliance with the affirmative and negative covenants
set forth in the Note Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we maintain liquidity (calculated on a Distribution PF Basis) of
greater than Minimum Liquidity Amount (as defined in the Note Purchase Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we maintain a Consolidated Total Net Leverage Ratio less than
(a) from March 31, 2025 through March 31, 2026, 3.75 to 1.00 for Primary Distributions (as defined in the Note Purchase Agreement) and 3.00 to 1.00 for additional common share dividends, (b) from April 1, 2026 through
September 30, 2027, 3.25 to 1.00 for Primary Distributions and 3.00 to 1.00 for additional common share dividends, and (c) from October 1, 2027 and thereafter, 2.75 to 1.00 for Primary Distributions and 2.00 to 1.00 for additional common
share dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we maintain an Asset Coverage Ratio greater than (a) from
March 31, 2025 through March 31, 2026, 1.05 to 1.00 for Primary Distributions and 1.20 to 1.00 for additional common share dividends, (b) from April 1, 2026 through September 30, 2027, 1.10 to 1.00 for Primary Distributions and
1.20 to 1.00 for additional common share dividends, and (c) from October 1, 2027 and thereafter, 1.15 to 1.00 for Primary Distributions and 1.35 to 1.00 for additional common share dividends;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the distribution period beginning October 1, 2027 and thereafter, the aggregate principal amount of Notes
outstanding as of such date of distribution is equal to or less than the Target Debt Balance (as defined in the Note Purchase Agreement) as of such date of distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Such payment, together with all other restricted payments during the applicable distribution period, does not
exceed the Distributable Free Cash Flow (as defined in the Note Purchase Agreement) for such period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Such payment is made prior to the applicable CF Sweep Date (as defined in the Note Purchase Agreement) for the
relevant distribution period.

See "—Financial Covenants" for a description of the financial ratios and tests applicable to our Senior Notes.

The proceeds from the various issuances of Senior Notes were used to help fund certain acquisitions, repay existing debt, redeem preferred shares, and for general corporate purposes, including covering related transaction costs.

*Interest Rates and Fees* 

Borrowings under the Note Purchase Agreement bear interest at a rate per annum equal to (a) before June 20, 2025, (i) for any Senior Note other than an ABR Note (as defined in the Note Purchase Agreement), an adjusted term SOFR rate plus 6.25%, or (ii) for an ABR Note, ABR (as defined in the Note Purchase Agreement) plus 5.25%, and (b) on and after June 20, 2025, (i) for any Senior Note other than an ABR Note, an adjusted term SOFR rate plus 6.50%, or (ii) for an ABR Note, ABR plus 5.50%. Interest payments are due on the last day of each fiscal quarter and on the maturity date of our Senior Notes.

*Voluntary Prepayments* 

We may voluntarily prepay, in whole or in part, our Senior Notes on any business day, subject to certain minimum amounts, notice requirements, and the payment of any applicable make-whole amount or prepayment fee as specified in the Note Purchase Agreement.

In connection with the closing of this offering, we intend to use a portion of the net proceeds received to prepay a portion of the outstanding principal of our Senior Notes as described above.

*Mandatory Prepayments* 

The Note Purchase Agreement requires us to prepay our Senior Notes (i) on a quarterly basis, an amount equal to the lesser of: (A) the difference between the aggregate outstanding principal amount of our Senior Notes and the Target Debt Balance (as defined in the Note Purchase Agreement) as of the date thereof, and (B) any liquidity (calculated on a Distribution PF Basis (as defined in the Note Purchase Agreement)) in excess of the Minimum Liquidity Amount (as defined in the Note Purchase Agreement), (ii) with 100% of the net cash proceeds from certain asset sales and casualty events, subject to reinvestment rights and thresholds, and (iii) with 100% of the proceeds from certain debt issuances and specified equity contributions for any Cure Amount (as defined in the Note Purchase Agreement), in each case subject to notice requirements and certain exceptions. Furthermore, upon the occurrence of a sale of all or substantially all the properties of the Note Parties or a Change in Control (each as defined in the Note Purchase Agreement), we are required to offer to repurchase all outstanding Senior Notes at the applicable redemption price.

*Affirmative and Negative Covenants* 

The Note Purchase Agreement contains a number of customary affirmative and negative covenants. Specifically, we are required to (subject to qualifiers and exceptions) (i) provide annual and quarterly financial statements, compliance certificates, reserve reports, and other requested information to the agent and holders, (ii) maintain our legal existence, rights, and licenses necessary for business operations, (iii) pay all taxes when due (except

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those contested in good faith), (iv) maintain adequate insurance, (v) comply with all applicable laws (including environmental, sanctions, and anti-corruption regulations), (vi) promptly notify the agent of material events such as defaults or litigation, (vii) maintain proper books and records, (viii) allow inspections of our properties, (ix) ensure collateral coverage, (x) enter into and maintain certain hedging agreements, (xi) use note proceeds only for specified purposes, and (xii) adhere to certain administrative, legal, and operational standards, such as ensuring that new material subsidiaries become guarantors.

Conversely, we may not (i) incur additional debt except as specifically permitted, (ii) create, incur, assume or permit to exist liens except for those securing obligations under the Note Purchase Agreement and other permitted liens, (iii) make restricted payments (such as dividends or redemptions) except as specifically permitted and subject to certain financial tests, (iv) make any investments outside of permitted categories, (v) materially change the nature of the business or operate outside the United States, (vi) engage in mergers, consolidations, or asset sales except as specifically permitted, (vii) engage in certain prohibited transactions with affiliates, (viii) amend our organizational documents in a way materially adverse to the holders, (ix) amend certain material agreements in a way materially adverse to the holders, (x) change our fiscal year-end, (xi) exceed specified leverage ratios or fall below asset coverage ratios, and (xii) comply with other customary restrictive covenants, including limitations on subsidiary formation, hedging activities, negative pledge agreements, and general and administrative costs. We are also required to maintain a passive holding company structure, limiting activities to those directly related to holding equity interests in subsidiaries and fulfilling our obligations under the Note Purchase Agreement.

*Final Maturity and Amortization* 

Our Senior Notes mature on the earlier of (i) June 23, 2030 and (ii) the date on which all Senior Notes become due and payable in full, whether by acceleration or otherwise. Our Senior Notes are not subject to mandatory amortization, however, they are subject to a quarterly excess cash sweep as set forth therein.

*Guarantors* 

All obligations under the Note Purchase Agreement are guaranteed by WhiteHawk Income Marcellus LLC, WhiteHawk Income Haynesville LLC, WhiteHawk Income OP GP LLC, WhiteHawk Income Operating Partnership L.P., WhiteHawk VF LLC, PHX Minerals LLC, WhiteHawk Acquisition LLC, and our future material subsidiaries.

*Security* 

All obligations under the Note Purchase Agreement are secured, subject to permitted liens and other customary exceptions set forth in the Note Purchase Agreement and related security documents, by a first priority perfected security interest in substantially all of the personal property of us and the guarantors.

*Financial Covenants* 

We are required to maintain a Consolidated Total Net Leverage Ratio (as defined in the Note Purchase Agreement) not greater than (a) 3.50 to 1.00 for the fiscal quarters ending December 31, 2024 and March 31, 2025, (b) 4.00 to 1.00 for the fiscal quarters ending June 30, 2025 through December 31, 2025, (c) 3.50 to 1.00 for the fiscal quarter ending March 31, 2026, June 30, 2026, September 30, 2026, and December 31, 2026, and (d) 3.25 to 1.00 for the fiscal quarter ending March 31, 2027 and each fiscal quarter thereafter, and an Asset Coverage Ratio (as defined in the Note Purchase Agreement) not less than (a) 1.00 to 1.00 beginning with the fiscal quarter ending December 31, 2024 and (b) 1.10 to 1.00 beginning with the fiscal quarter ending March 31, 2027 and each fiscal quarter thereafter.

*Events of Default* 

The holders under the Note Purchase Agreement are permitted to accelerate our Senior Notes, terminate commitments, or exercise other remedies upon the occurrence of certain customary events of default, subject to

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specified grace periods and exceptions. These events of default include, among others, payment defaults, cross-defaults to material indebtedness, breaches of covenants, material inaccuracies in representations and warranties, bankruptcy or insolvency events, material judgments, defects in the perfection or priority of collateral, events that could reasonably be expected to have a material adverse effect, and changes of control.

**Revolving Credit Facility** 

WhiteHawk OpCo entered into a reserve-based revolving credit facility on May 10, 2026, which was subsequently amended and restated on May 25, 2026, to become effective as of the date of this offering, among WhiteHawk OpCo, as borrower, us, as the parent, OP GP, as the general partner, Capital One, National Association, as administrative agent and a lender, and the other lenders party thereto (as so amended and restated, the "Revolving Credit Facility"), with the restrictions, covenants and funding obligations under such Revolving Credit Facility to be effective upon the closing of this offering (the "Effective Date"). Throughout the description of the Revolving Credit Facility, verbs used in the future tense are referring to Revolving Credit Facility as it will be in effect on the Effective Date. The Revolving Credit Facility will provide for an initial aggregate maximum credit amount of $500 million, an initial aggregate elected commitment amount of $150 million and an initial borrowing base of $150 million, with a sublimit for the issuance of letters of credit of up to $10 million. The Revolving Credit Facility will mature on May 25, 2030.

The Revolving Credit Facility will be available (i) to provide working capital and for acquisitions of oil and gas properties permitted under the Revolving Credit Facility, (ii) for general corporate purposes and (iii) to pay fees and expenses related to the loan documents and the offering.

The borrowing base under the Revolving Credit Facility is subject to semi-annual redeterminations on April 15 and October 15 of each year, commencing October 15, 2026. Each redetermination is based on a review of our proved oil and gas reserves, commodity prices and other factors deemed relevant by the administrative agent. In addition, each of WhiteHawk OpCo and the administrative agent (at the direction of the required lenders) may elect to initiate one interim redetermination of the borrowing base between scheduled redeterminations, and WhiteHawk OpCo may elect an additional interim redetermination in connection with acquisitions of oil and gas properties representing at least 5% of the then-effective borrowing base. There can be no assurance that the borrowing base will remain at its initial level, and any reduction in the borrowing base could require us to repay indebtedness in excess of the revised borrowing base.

In addition to scheduled and interim redeterminations, the borrowing base will be automatically reduced (i) by the borrowing base value of any oil and gas properties disposed of or swap agreements terminated if the aggregate value of such dispositions and terminations since the most recent redetermination date exceeds 5% of the then-effective borrowing base and (ii) upon the issuance of any permitted senior notes, by an amount equal to 25% of the aggregate stated principal amount of such notes.

The Revolving Credit Facility will allow us to request that the aggregate elected commitments be increased to up to the aggregate maximum credit amount, subject to certain conditions, by obtaining additional commitments from the existing lenders or by causing a person acceptable to the administrative agent to become a lender, subject to the borrowing base in effect at such time and the terms and conditions set forth in the Revolving Credit Facility.

The incurrence of borrowings and letter of credit issuances under the Revolving Credit Facility will be subject to the satisfaction of certain customary conditions, including the absence of any default or event of default, the accuracy of representations and warranties and the requirement that the Consolidated Cash Balance (as defined in the Revolving Credit Facility) does not exceed the greater of $25,000,000 and 10% of the borrowing base then in effect after giving pro forma effect to such borrowing and the use of proceeds thereof. Further, the effectiveness of the Revolving Credit Facility is conditioned on, among other things, consummation of this offering with minimum gross proceeds of $150 million contributed to WhiteHawk OpCo. The commitments under the Revolving Credit Facility will terminate if the conditions to effectiveness are not satisfied by August 8, 2026.

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Borrowings under the Revolving Credit Facility will bear, at our option, interest at (i) a rate per annum equal to the margin plus the greatest of (1) the Prime Rate in effect on such day, (2) the Federal Funds Rate in effect on such day plus 1/2 of 1.00% or (3) Term SOFR for a one month interest period on such day plus 1.00% (provided that in no event shall the Alternate Base Rate be less than 1.00%) or (ii) the margin plus Term SOFR. Term SOFR will be subject to a floor of 2.50% prior to the discharge of the Senior Notes and 0.00% thereafter. The margin will be based on the utilization of the borrowing base and will range from 1.50% to 2.50% for ABR loans and 2.50% to 3.50% for Term SOFR loans. The unused portion of the Revolving Credit Facility is subject to a commitment fee ranging from 0.375% to 0.50%. We will also pay certain ongoing customary fees and expenses under the Revolving Credit Facility. The interest rate amount under the Revolving Credit Facility must at no point exceed the highest lawful rate.

In connection with the syndication of the Revolving Credit Facility, certain terms and conditions, including the applicable interest rate margins, commitment fees, financial covenants, events of default and other provisions, may be modified pursuant to the exercise of "flex" provisions contained in the arranger's engagement letter or in connection with the addition of new lenders to the Revolving Credit Facility.

The Revolving Credit Facility will be secured by collateral including (i) substantially all of WhiteHawk OpCo's properties and assets, and the properties and assets of WhiteHawk OpCo's subsidiaries and (ii) pledges of the equity interests in all of WhiteHawk OpCo's present and future subsidiaries (subject to certain exceptions as provided for under the loan documents). The obligations under the Revolving Credit Facility are guaranteed by substantially all of WhiteHawk OpCo's existing and future direct and indirect subsidiaries, with certain customary or agreed upon exceptions.

The obligations under the Revolving Credit Facility will be subject to an intercreditor agreement between the administrative agent for the Revolving Credit Facility and the agent for the holders of the notes issued under the Note Purchase Agreement, which governs the relative rights and priorities of the first lien secured parties and the second lien secured parties with respect to the collateral. The intercreditor agreement will also apply to our existing hedge counterparties.

The Revolving Credit Facility will provide for customary representations, warranties and covenants, including, among other things, covenants relating to financial reporting, notices of material events, maintenance of the existence of the business, payment of obligations, hedging requirements, limitations on our ability to make investments and acquisitions, indebtedness, liens, dividends and distributions, and certain fundamental transactions.

The Revolving Credit Facility will also require us to maintain a Consolidated Net Leverage Ratio (as defined in the Revolving Credit Facility) for the rolling period then ending, as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date), of no greater than 3.50 to 1.00 and a current ratio as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date) of no less than 1.0 to 1.0.

The Revolving Credit Facility will restrict our ability to make restricted payments (including dividends and distributions); however, it will permit us to make cash restricted payments to holders of our equity interests so long as, both before and immediately after giving effect to any such restricted payment, (A) no default, event of default or borrowing base deficiency exists, (B) unused availability is at least 10% of the loan limit and (C) the Consolidated Net Leverage Ratio is less than or equal to 3.00 to 1.00 on a pro forma basis; provided that such dividends and distributions are permitted by the Note Purchase Agreement as in effect on the Effective Date. See "Description of Material Indebtedness." The Revolving Credit Facility will also permit distributions for tax purposes and other purposes, subject to certain exceptions. Notwithstanding the foregoing, prior to the discharge of the Senior Notes, any restricted payment that would be prohibited under the Senior Notes, as in effect on the Effective Date, will also be prohibited under the Revolving Credit Facility.

With respect to hedging, the Revolving Credit Facility will require us, on the last day of each fiscal quarter, to maintain swap agreements hedging a minimum percentage of our reasonably projected production of crude oil

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and natural gas from proved developed producing reserves. The required hedging percentage and tenor varies based on the Consolidated Net Leverage Ratio: if the ratio is at least 1.50 to 1.00, we must hedge at least 50% of reasonably projected production for each of the 24 months following such date; if the ratio is at least 1.00 to 1.00 but less than 1.50 to 1.00, we must hedge at least 50% for 12 months and at least 25% for months 13 through 24; and if the ratio is less than 1.00 to 1.00, we must hedge at least 50% for 12 months ; provided that if our natural gas production exceeds 90% of our aggregate production, determined on a barrel of oil equivalent basis, we will not be required to hedge our volumes of crude oil.

The Revolving Credit Facility will contain events of default customary for facilities of this nature, including, but not limited, to: (i) events of default resulting from our failure or the failure of any credit party to comply with covenants and financial ratios; (ii) the occurrence of a change of control; (iii) the institution of insolvency or similar proceedings against us or any credit party; and (iv) the occurrence of a default under any other material indebtedness we or any guarantor may have. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Revolving Credit Facility, the lenders will be able to declare any outstanding principal balance of our credit facility, together with accrued and unpaid interest, to be immediately due and payable and exercise other remedies.

The Revolving Credit Facility contains a "most favored terms" provision pursuant to which, if at any time any documentation governing the Note Purchase Agreement includes any representation, warranty, covenant any outstanding principal balance of our credit facility, together with accrued and unpaid interest, to be immediately due and payable and exercise other remedies.

The Revolving Credit Facility contains a "most favored terms" provision pursuant to which, if at any time any documentation governing the Note Purchase Agreement includes any representation, warranty, covenant (including financial covenants), event of default or other term excluding applicable margin for determining interest rates that is more restrictive as to the Company, OP GP, WhiteHawk OpCo or any restricted subsidiary than the corresponding terms of the Revolving Credit Facility and the other loan documents thereunder (other than with respect to any most favored terms in the Note Purchase Agreement in existence on the Effective Date) (each, a "More Restrictive Term"), the terms of the Revolving Credit Facility will, without any further action on the part of WhiteHawk OpCo, the administrative agent or any lender, be deemed to be automatically amended to incorporate each such More Restrictive Term, mutatis mutandis, effective as of the date when such More Restrictive Term became effective under the Note Purchase Agreement. As a result, the Revolving Credit Facility will at all times contain restrictions that are at least as restrictive as those set forth in the Note Purchase Agreement, and investors should be aware that the imposition of additional or more restrictive terms in the Note Purchase Agreement will automatically result in corresponding additional or more restrictive terms under the Revolving Credit Facility. Additionally, the Revolving Credit Facility will require that the Senior Notes be paid down to $75 million on the effective date and that they have a maturity date no earlier than 180 days after the maturity date in the Revolving Credit Facility. In connection with this partial prepayment of Senior Notes, we expect to pay a make-whole amount of approximately $14.6 million and a prepayment premium of approximately $3.0 million to the existing holders, in each case as required under the terms of our existing Note Purchase Agreement.

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**DESCRIPTION OF CAPITAL STOCK** 

*The following summary describes the material terms of our capital stock as set forth in the amended and restated certificate of incorporation and amended and restated bylaws as they will be in effect upon the consummation of this offering, the certificates of designations of our Series B preferred stock and our Series D preferred stock remaining outstanding following this offering and certain applicable provisions of Delaware law. Because this is only a summary, it does not contain all the information that may be important to you. We urge you to read our amended and restated certificate of incorporation and our amended and restated bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part.* 

**General** 

Prior to the consummation of this offering, we will file an amended and restated certificate of incorporation and we will adopt our amended and restated bylaws. Our amended and restated certificate of incorporation will authorize capital stock consisting of three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of Class A common stock, par value $0.0001 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of Class B common stock, par value $0.0001 per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of preferred stock, par value $0.0001 per share.

We are selling 6,925,000 shares of Class A common stock in this offering (7,963,750 shares if the underwriters exercise in full their option to purchase additional shares of our Class A common stock). All shares of our Class A common stock outstanding upon consummation of this offering will be fully paid and non-assessable. We are issuing 3,750,000 shares of Class B common stock to the Management Contributor in connection with the Transactions (including this offering and the proposed use of proceeds) for nominal consideration.

The following summary describes the material provisions of our capital stock and certain provisions of our amended and restated certificate of incorporation and our amended and restated bylaws, each of which will become effective prior to the completion of this offering, and of the General Corporation Law of the State of Delaware (the "DGCL"), and is qualified by reference to the amended and restated certificate of incorporation, the amended and restated bylaws and the DGCL. We urge you to read our amended and restated certificate of incorporation and our amended and restated bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part.

Certain provisions of our amended and restated certificate of incorporation and our amended and restated bylaws summarized below may be deemed to have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares of common stock.

**Common Stock** 

**Class A Common Stock** 

Holders of shares of our Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders and on which the holders of the Class A common stock are entitled to vote.

Holders of shares of our Class A common stock are entitled to receive dividends when and if declared by our board of directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock.

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Upon our dissolution or liquidation, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of our Class A common stock will be entitled to receive pro rata our remaining assets available for distribution.

Holders of shares of our Class A common stock do not have preemptive, subscription, redemption, or conversion rights. There will be no redemption or sinking fund provisions applicable to the Class A common stock.

Holders of shares of our Class A common stock will vote together with holders of our Class B common stock, as a single class on all matters presented to our stockholders for their vote or approval, except for certain amendments to the amended and restated certificate of incorporation or as otherwise required by applicable law or our amended and restated certificate of incorporation. Any amendment to our amended and restated certificate of incorporation that gives holders of the Class B common stock (i) any rights to receive dividends (subject to certain exceptions) or any other kind of distribution, (ii) any right to convert into or be exchanged for shares of Class A common stock, or (iii) any other economic rights (except for payments in cash in lieu of receipt of fractional stock) shall, in addition to the vote of the holders of shares of any class or series of our capital stock required by law, also require the affirmative vote of the holders of a majority of the voting power of the outstanding shares of Class A common stock voting separately as a class.

**Class B Common Stock** 

Each share of our Class B common stock entitles its holders to one vote per share on all matters presented to our stockholders and on which the holders of the Class B common stock are entitled to vote.

Shares of Class B common stock will be issued in the future only to the extent necessary to maintain a one-to-one ratio between the number of OpCo Interests held by the Continuing Equity Owners and the number of shares of Class B common stock issued to the Continuing Equity Owners. Shares of Class B common stock are transferable only together with an equal number of OpCo Interests. Only permitted transferees of OpCo Interests held by the Continuing Equity Owners will be permitted transferees of Class B common stock. See "Certain Relationships and Related Party Transactions—OpCo Agreement." Shares of Class B common stock automatically transferred to us upon the redemption or exchange of their OpCo Interests pursuant to the terms of the OpCo Agreement and will be canceled and may not be reissued.

Holders of shares of our Class B common stock will vote together with holders of our Class A common stock, as a single class on all matters presented to our stockholders for their vote or approval, except for certain amendments to our amended and restated certificate of incorporation described below or as otherwise required by applicable law or our amended and restated certificate of incorporation.

Except in certain limited circumstances, holders of our Class B common stock do not have any right to receive dividends or to receive a distribution upon dissolution or liquidation. Additionally, holders of shares of our Class B common stock do not have preemptive, subscription or redemption rights. There will be no redemption or sinking fund provisions applicable to the Class B common stock. Upon the redemption or exchange of an OpCo Interest (together with a share of Class B common stock) for Class A common stock, the shares of Class B common stock will be automatically transferred to us for no consideration and will be canceled and no longer outstanding. Such shares of Class B common stock may not be reissued. Any amendment of our amended and restated certificate of incorporation that gives holders of our Class B common stock (1) any rights to receive dividends or any other kind of distribution, (2) any right to convert into or be exchanged for shares of Class A common stock, or (3) any other economic rights (except for payments in cash in lieu of receipt of fractional stock) will require, in addition to any stockholder approval required by applicable law, the affirmative vote of holders of a majority of the voting power of the outstanding shares of our Class A common stock voting separately as a class.

Upon the consummation of the Transactions (including this offering and the proposed use of proceeds), the Management Contributor will own, in the aggregate, 3,750,000 shares of our Class B common stock.

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**Preferred Stock** 

Our amended and restated certificate of incorporation that we will file in connection with the consummation of this offering will (i) authorize our board of directors to issue "blank check" preferred stock and (ii) include designations detailing the terms of our existing Series B preferred stock and Series D preferred stock.

Immediately prior to the consummation of this offering, we had 56,665 shares of Series B preferred stock outstanding and 37,780 shares of Series D preferred stock outstanding. In connection with this offering, we expect to redeem a portion of our outstanding Series B preferred stock and all of our outstanding Series D preferred stock. See "Use of Proceeds."

*Series B Preferred Stock.* Certain key terms of the Series B preferred stock are described below. We refer you to the Series B certificate of designations for a complete description of such terms.

*Voting Rights.* Series B preferred stock has no voting rights.

*Dividends.* The Series B preferred stockholders are entitled to a monthly preferred cumulative dividend at an annualized rate of ten percent (10%) until it is redeemed. Payment of such dividends on the Company's Series B preferred stock is subject to a dividend declaration by our board of directors. Unpaid dividends accrue monthly on a cumulative basis from the most recent date through which dividends have been paid or, if no dividends have been paid, from the date of issuance for each share of Series B preferred stock.

*Liquidation and Dissolution.* Series B preferred stock will be entitled to be paid out of the funds and assets available for distribution, an amount per share equal to the Stated Value (as defined herein), plus an amount per share that is issuable as the result of accrued or unpaid dividends. After payment to the holders of preferred stock, the remaining funds and assets available for distribution to stockholders shall be distributed among the holders of shares of common stock, *pro rata* based on the number of shares of common stock held by each such stockholder. The liquidation preference for our Series B preferred stock is as follows: (i) prior or senior to all classes or series of our common stock and any other class or series of common equity securities, if the holders of Series B preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of shares of such class or series; (ii) on parity with our other classes or series of our preferred equity securities issued in the future if, pursuant to the specific terms of such class or series of equity securities, of which the holders of such preferred stock and the holders of Series B preferred stock are entitled to the receipt of dividends and of amounts distributable upon liquidation, dissolution or winding up in proportion to their respective amounts of accrued and unpaid dividends per share or liquidation preferences, without preference or priority one over the other; and (iii) junior to all our existing and future indebtedness and any other classes or series of preferred stock if, pursuant to the specific terms of such class or series of preferred stock, the holders of such preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of Series B preferred stock.

*Maturity.* Shares of the Series B preferred stock have no stated maturity. Shares of the Series B preferred stock will remain outstanding indefinitely unless they are redeemed or repurchased by the Company. The Company is not required to set apart for payment funds to redeem the Series B preferred stock.

*Redemption:* Holders of Series B preferred stock may redeem such shares at any time subject to a monthly limit of 2% of the number of outstanding Series B preferred shares as of the end of the immediately prior month and a quarterly limit of 5% of the number of outstanding Series B preferred shares as of the end of the prior calendar quarter, subject to redemption fees if redeemed earlier than three years following the issuance date of 10% discount to Stated Value if redeemed in the first year following the date of issuance, 8% discount to Stated Value if redeemed in the second year following the date of issuance and 6% discount to Stated Value if redeemed in the third year following the date of issuance. Following the first anniversary of the date on which a share of Series B preferred stock was issued, the Company may also redeem the Series B preferred stock upon written notice to some or all of the holders for $1,000 per share (the "Stated

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Value") plus accrued but unpaid cumulative dividends. Additionally, the redemption of Series B preferred stock will be triggered by: (i) the sale, transfer or other disposition, in a single transaction or series of related transactions of all or substantially all of the Company's assets; (ii) a merger or consolidation transaction into another entity where immediately following the consummation of such transaction, the Company's common stockholders will receive the interests of another entity; or (iii) the closing of the transfer (whether by merger, consolidation or otherwise) of the Company's capital stock if, after such closing, the beneficial owner (as defined under the Exchange Act) would acquire more than 50% of the Company's outstanding voting securities (or those of a successor entity).

*Series D Preferred Stock*. Certain key terms of the Series D preferred stock are described below. We refer you to the Series D certificate of designations for a complete description of such terms.

*Voting and Consent Rights*. Series D preferred stock has no voting rights. However, at any time when any shares of Series D preferred stock are outstanding, the Company shall not do any of the following without the consent of the then-holders of Series D preferred stock: (i) other than pursuant to the Note Purchase Agreement, guarantee, directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the Company or any subsidiary arising in the ordinary course of business; (ii) incur any indebtedness, other than trade credit incurred in the ordinary course of business or pursuant to the Note Purchase Agreement; and (iii) other than the Series D preferred stock, create or issue or obligate itself to issue shares of, or reclassify, any capital stock unless the same ranks junior to the Series D preferred stock with respect to its special rights, powers and preferences.

*Dividends*. The Series D preferred stockholders are entitled to a monthly preferred cumulative dividend at an annualized rate of fourteen percent (14%) until December 31, 2027, after which the Series D preferred stockholders are entitled to a monthly preferred cumulative dividend at an annualized rate of eighteen percent (18%), in each case, until the Series D preferred stock is redeemed. Payment of such dividends on the Company's Series D preferred stock is subject to a dividend declaration by our board of directors. Unpaid dividends accrue monthly on a cumulative basis from the most recent date through which dividends have been paid or, if no dividends have been paid, from the date of issuance for each share of Series D preferred stock.

*Liquidation and Dissolution*. Series D preferred stock will be entitled to be paid out of the funds and assets available for distribution, an amount per share sufficient to provide for a total return of 8% per share of Series D preferred stock, after giving effect to the payment of all dividends thereon (the "Minimum Return"). After payment to the holders of Series D preferred stock of the Minimum Return, the Series B preferred stock will be entitled to be paid out of the remaining funds and assets available for distribution, an amount per share equal to the Stated Value, plus an amount per share that is issuable as the result of the accrued or unpaid dividends. After payment to the holders of preferred stock, the remaining funds and assets available for distribution to stockholders shall be distributed among the holders of shares of common stock, pro rata based on the number of shares of common stock held by each such stockholder. The liquidation preference for our Series D preferred stock is as follows: (i) prior or senior to all classes or series of our common stock, Series B preferred stock and any other class or series of common equity securities, if the holders of Series D preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of shares of such class or series; and (ii) junior to all our existing and future indebtedness and any other classes or series of preferred stock if, pursuant to the specific terms of such class or series of preferred stock, the holders of such preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of Series D preferred stock.

*Maturity*. Shares of the Series D preferred stock have no stated maturity. Shares of the Series D preferred stock will remain outstanding indefinitely unless they are redeemed or repurchased by the Company. The Company is not required to set apart for payment funds to redeem the Series D preferred stock. However, if the Company does not redeem all of the shares of Series D preferred stock prior to December 31, 2028, the Company shall not be allowed to declare, pay or set aside any distributions or dividends with respect to any

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class or series of capital stock of the Company until all of the shares of Series D preferred stock have been redeemed and the holders thereof have received the Minimum Return.

*Redemption*: The Company shall have the right, but not the obligation, to redeem the shares of Series D preferred stock at any time and from time to time for $1,000 per share, plus all accrued but unpaid cumulative dividends thereon, if any (such aggregate amount, the "Redemption Price"). Upon the exercise of the Company's optional redemption right with respect to any share of Series D preferred stock that is the last share of Series D preferred stock held by a Holder of Series D preferred stock, in addition to the Redemption Price, if applicable, the Company shall pay an additional dividend, if required, such that, together with the payment of the Redemption Price and all dividends paid with respect to such holder in the aggregate, such holder shall have received the Minimum Return (such additional dividend, the "Minimum Return Payment"). Additionally, the redemption of Series D preferred stock will be triggered by: (i) a Deemed Liquidation Event (as defined in our amended and restated certificate of incorporation); (ii) the cessation, or deemed cessation, of business by the Company; (iii) the commencement of any legal proceeding by any judgment creditor against the Company to attach or levy upon any material property of the Company which is not dismissed within forty-five (45) days; (iv) any bankruptcy, insolvency, receivership, liquidation, or dissolution under applicable law or statute; or (v) a general assignment by the Company for the benefit of its creditors.

*Authorized but unissued preferred stock.* Our board of directors will be authorized to provide for the issuance of additional preferred stock in one or more series and to fix the preferences, powers and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof, including the dividend rate, conversion rights, voting rights, redemption rights and liquidation preference and to fix the number of shares to be included in any such series without any further vote or action by our stockholders. Any preferred stock so issued may rank senior to our common stock with respect to the payment of dividends or amounts upon liquidation, dissolution or winding up, or both. In addition, any such shares of preferred stock may have class or series voting rights. Unless required by law or by any stock exchange on which our common stock may be listed, the authorized shares of preferred stock will be available for issuance without further action by our stockholders. Delaware law does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of the NYSE which would apply as long as our common stock is listed on the NYSE, require stockholder approval of certain issuances equal to or exceeding 20% of the combined voting power of our common stock. These additional shares of preferred stock may be used for a variety of corporate purposes, including future public offerings to raise additional capital, acquisitions and employee benefit plans. The issuance of preferred stock may enable our board of directors to issue shares to persons friendly to current management, which could render more difficult or discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or otherwise, and could thereby protect the continuity of our management and possibly deprive stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices.

In connection with the completion of this offering, we intend to use a portion of the net proceeds to redeem, in whole or in part, shares of one or more series of our outstanding preferred stock.

**Indemnification and Limitations on Directors' Liability** 

Our amended and restated certificate of incorporation and amended and restated bylaws provide indemnification for our directors and officers to the fullest extent permitted by the DGCL. Prior to the closing of this offering, we intend to enter into indemnification agreements with each of our directors and officers that may, in some cases, be broader than the specific indemnification provisions contained under Delaware law. In addition, as permitted by Delaware law, our amended and restated certificate of incorporation will include provisions that eliminate the personal liability of our directors and officers for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. The effect of this provision is to restrict our rights and the rights of our stockholders in derivative suits to

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recover monetary damages against a director or officer for breach of fiduciary duties as a director or officer. Our amended and restated certificate of incorporation also provides that the Corporation shall have the power to provide rights to indemnification and advancement of expenses to its current and former officers, directors, employees and agents and to any person who is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

In connection with this offering, we expect to enter into a directors' and officers' insurance policy. The policy is expected to insure our directors and officers against unindemnified losses arising from certain wrongful acts in their capacities as directors and officers and reimburse us for those losses for which we have lawfully indemnified the directors and officers. The policy is expected to contain various exclusions that are normal and customary for policies of this type.

**Anti-Takeover Provisions** 

Our amended and restated certificate of incorporation and amended and restated bylaws will contain provisions that may delay, defer or discourage transactions involving an actual or potential change in control of us or change in our management. We expect that these provisions, which are summarized below, will discourage coercive takeover practices or inadequate takeover bids. These provisions will be designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors, which we believe may result in an improvement of the terms of any such acquisition in favor of our stockholders. However, they will also give our board of directors the power to discourage transactions that some stockholders may favor, including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders might otherwise deem to be in their best interests. Accordingly, these provisions could adversely affect the price of our Class A common stock.

*Classified Board of Directors.* Our amended and restated certificate of incorporation will provide that our board of directors will be divided into three classes, and with the directors serving three-year terms. Approximately one third of our directors will be elected each year. See "Management—Board of Directors." The classification of directors will have the effect of making it more difficult for stockholders to change the composition of our board of directors and may prevent a third party who acquires control of a majority of our outstanding voting stock from obtaining control of our board of directors.

*Removal of Directors.* The number of directors constituting our board of directors is determined from time to time by our board of directors. Our amended and restated certificate of incorporation will also provide that, subject to any rights of any preferred stock then outstanding, any director may be removed from office at any time but only for cause by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of the shares entitled to vote for the election of directors. In addition, our amended and restated certificate of incorporation will provide that, so long as our board of directors remains classified, any vacancy on the board of directors, including a vacancy that results from an increase in the number of directors, may be filled only by a majority of the directors then in office, even if less than a quorum, or by a sole remaining director. This provision will prevent stockholders from removing incumbent directors without cause and filling the resulting vacancies with their own nominees.

*Stockholder Action by Written Consent.* Our amended and restated certificate of incorporation will provide that, subject to the rights of any holders of preferred stock to act by written consent instead of a meeting, stockholder

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action may be taken only at an annual meeting or special meeting of stockholders and may not be taken by written consent instead of a meeting. Failure to satisfy any of the requirements for a stockholder meeting could delay, prevent or invalidate stockholder action.

*Special Meetings of Stockholders.* Our amended and restated certificate of incorporation and amended and restated bylaws will provide that special meetings of the stockholders may be called only by or at the direction the board of directors, the chairperson of the board of directors, the chief executive officer or president. Our amended and restated bylaws will prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers or changes in control or management of our company.

*Advance Notice of Nominations and Other Business.* Our amended and restated bylaws will establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of our board of directors or a committee of our board of directors. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with the advance notice requirements. Our amended and restated bylaws will allow the presiding officer at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings, which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of directors or otherwise attempting to obtain control of our company.

*Section 203 of the DGCL.* Our amended and restated certificate of incorporation will provide that the Company expressly elects not to be governed by Section 203 of the DGCL. However, our certificate of incorporation will contain provisions that are similar to Section 203 of the DGCL. Specifically, these provisions will prohibit us from engaging in any business combination with any interested stockholder (a stockholder who owns more than 15% of our Class A common stock) for a period of three years after the interested stockholder became such unless: (i) prior to such time the board of directors approved either the business combination or the transaction which resulted in such stockholder becoming an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the outstanding voting stock, excluding shares held by directors who are also officers and certain employee stock plans, or (iii) at or subsequent to such time the business combination is approved by the board of directors and by the affirmative vote of at least 66 2/3% of the outstanding voting stock not owned by the interested stockholder.

*Amendment of Bylaws and Certificate of Incorporation.* Any amendment to our amended and restated certificate of incorporation must first be approved by stockholders. Our amended and restated certificate of incorporation will provide that the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of capital stock entitled to vote is required to amend or repeal certain provisions of our certificate of incorporation. Our amended and restated bylaws may be amended by the board of directors. Our stockholders may also adopt, amend or repeal the bylaws, but only by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all the then-outstanding shares of voting stock.

**Exclusive Forum** 

Our amended and restated certificate of incorporation will provide that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for any (i) derivative action or proceeding brought on our behalf, (ii) action asserting a claim of breach of a fiduciary duty or other wrongdoing by any current or former director, officer, employee, agent or stockholder to us or our stockholders, (iii) action asserting a claim arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation or our amended and restated bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (iv) action asserting a claim governed by the internal affairs doctrine of the law of the State of Delaware. Our

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**Listing** 

We have applied to have our Class A common stock listed on NYSE under the symbol "WHK."

**Transfer Agent and Registrar** 

The transfer agent and registrar for our Class A common stock is Computershare Inc.

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Immediately prior to this offering, there was no public market for our Class A common stock. Future sales of substantial amounts of Class A common stock in the public market (including shares of Class A common stock issuable upon redemption or exchange of OpCo Interests of our Subsequent Continuing Equity Owners), or the perception that such sales may occur, could adversely affect the market price of our Class A common stock. Although we have applied to have our Class A common stock listed on the Exchange, we cannot assure you that there will be an active public market for our Class A common stock.

Upon the closing of this offering, we will have an aggregate of 22,221,579 shares of Class A common stock outstanding, assuming the issuance of 6,925,000 shares of Class A common stock offered by us in this offering. Of these shares, all shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act, except for any shares purchased by our affiliates, as that term is defined in Rule 144 under the Securities Act, whose sales would be subject to the Rule 144 resale restrictions described below, other than the holding period requirement.

None of the shares of Class A common stock sold in this offering will be restricted securities, as that term is defined in Rule 144 under the Securities Act. Restricted securities are eligible for public sale only if they are registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including Rules 144 or 701 under the Securities Act, which are summarized below.

In addition, each OpCo Interest held by our Subsequent Continuing Equity Owners will be redeemable, at the election of each Subsequent Continuing Equity Owner, for, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), newly-issued shares of our Class A common stock on a one-for-one basis or a cash payment equal to a volume weighted average market price of one share of Class A common stock for each OpCo Interest so redeemed, in each case, in accordance with the terms of the OpCo Agreement; provided that, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), we may effect a direct exchange by WhiteHawk Income Corporation of such Class A common stock or such cash, as applicable, for such OpCo Interests. The Subsequent Continuing Equity Owners may, subject to certain exceptions, exercise such redemption right for as long as their OpCo Interests remain outstanding. See "Certain Relationships and Related Party Transactions—OpCo Agreement." Upon consummation of the Transactions, the Management Contributor will hold 3,750,000 OpCo Interests (along with an equal number of shares of Class B common stock), which will be restricted from transfer, exchange or distribution until the first anniversary of the closing of the Internalization. Following the first anniversary of the closing of the Internalization, we expect that the Management Contributor will distribute the OpCo Interests and Class B common stock received pursuant to the Contribution Agreement to the Subsequent Continuing Equity Owners. Once distributed to the Subsequent Continuing Equity Owners, the OpCo Interests will be exchangeable for shares of our Class A common stock. The shares of Class A common stock we issue upon such exchanges would be "restricted securities" as defined in Rule 144 unless we register such issuances. However, we will enter into the Registration Rights Agreement with certain of the Continuing Equity Owners that will require us, subject to customary conditions, to register under the Securities Act these shares of Class A common stock. See "Certain Relationships and Related Party Transactions—Registration Rights Agreement."

**Lock-up Arrangements and Registration Rights** 

We and our directors and executive officers will enter into lock-up agreements pursuant to which we and they will be subject to certain restrictions with respect to the offer, sale or disposition or hedge of our securities for a period of 180 days following the date of this prospectus. Additionally, our amended and restated certificate of incorporation will provide that, subject to certain exceptions, all of the shares of Class A common stock held by the Legacy Common Stock Investors may not be sold, pledged, transferred or otherwise disposed of for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering.

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In addition, following the distribution by the Management Contributor of its OpCo Interests (and shares of Class B common stock) to the Subsequent Continuing Equity Owners, certain of the Subsequent Continuing Equity Owners will have the right under the Registration Rights Agreement, subject to certain conditions, to require us to register the sale of their shares of our Class A common stock under federal securities laws. Registration of these shares under the Securities Act will result in these shares becoming freely tradable immediately upon the effectiveness of such registration, subject to the restrictions of Rule 144. See "Certain Relationships and Related Party Transactions—Registration Rights Agreement."

Following the lock-up periods described above, all of the shares of our Class A common stock that are restricted securities or are held by our affiliates as of the date of this prospectus will be eligible for sale in the public market in compliance with Rule 144 under the Securities Act.

**Rule 144** 

The shares of our Class A common stock sold in this offering will generally be freely transferable without restriction or further registration under the Securities Act, except that any shares of our Class A common stock held by an "affiliate" of ours may not be resold publicly except in compliance with the registration requirements of the Securities Act or under an exemption under Rule 144 or otherwise. Rule 144 permits our Class A common stock that has been acquired by a person who is an affiliate of ours, or has been an affiliate of ours within the past three months, to be sold into the market in an amount that does not exceed, during any three-month period, the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• one percent of the total number of shares of our Class A common stock outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly reported trading volume of our Class A common stock for the four calendar weeks prior to the
sale.

Such sales are also subject to specific manner of sale provisions, a six-month holding period requirement, notice requirements and the availability of current public information about us.

Rule 144 also provides that a person who is not deemed to have been an affiliate of ours at any time during the three months preceding a sale, and who has for at least six months beneficially owned shares of our Class A common stock that are restricted securities, will be entitled to freely sell such shares of our Class A common stock subject only to the availability of current public information regarding us. A person who is not deemed to have been an affiliate of ours at any time during the three months preceding a sale, and who has beneficially owned for at least one year shares of our Class A common stock that are restricted securities, will be entitled to freely sell such shares of our Class A common stock under Rule 144 without regard to the current public information requirements of Rule 144.

**Rule 701** 

Rule 701 generally allows a stockholder who purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of our company during the immediately preceding 90 days to sell these shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required to wait until 90 days after the date of this prospectus before selling those shares pursuant to Rule 701, subject to the expiration of the lock-up restrictions described above.

**Additional Registration Statements** 

We intend to file one or more registration statements on Form S-8 under the Securities Act to register shares of our Class A common stock subject to issuance under our equity incentive plans. Such registration statement is

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expected to be filed soon after the date of this prospectus and will automatically become effective upon filing with the SEC. Accordingly, shares of our Class A common stock registered under such registration statements will be available for sale in the open market, unless such shares are subject to the Rule 144 limitations, vesting restrictions with us or the lock-up restrictions described above.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS TO NON-U.S. HOLDERS OF CLASS A COMMON STOCK** 

The following discussion is a summary of the material U.S. federal income tax consequences to Non-U.S. Holders (as defined below) of the ownership and disposition of our Class A common stock issued pursuant to this offering but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local, or non-U.S. tax laws are not discussed. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the IRS, in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a Non-U.S. Holder. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the ownership and disposition of our Class A common stock.

This discussion is limited to Non-U.S. Holders that hold our Class A common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a Non-U.S. Holder's particular circumstances, including the impact of the Medicare contribution tax on net investment income and the alternative minimum tax. In addition, it does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. expatriates and former citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding our Class A common stock as part of a straddle or other risk reduction strategy or as part
of a conversion transaction or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, insurance companies, and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brokers, dealers, or certain electing traders in securities that are subject to a mark-to-market method of tax accounting for their securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations," "passive foreign investment companies," and
corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and
investors therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations or governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons deemed to sell our Class A common stock under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons required for U.S. federal income tax purposes to conform the timing of income accruals with respect to
our Class A common stock to their financial statements under Section 451(b) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who hold or receive our Class A common stock pursuant to the exercise of any employee stock option
or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all
of the interests of which are held by qualified foreign pension funds.

If an entity treated as a partnership for U.S. federal income tax purposes holds our Class A common stock, the tax treatment of an owner of such an entity will depend on the status of the owner, the activities of such entity and certain determinations made at the owner level. Accordingly, entities treated as partnerships for U.S. federal income tax purposes holding our Class A common stock and the owners of such entities should consult their tax advisors regarding the U.S. federal income tax consequences to them.

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**THIS DISCUSSION IS NOT TAX ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR CLASS A COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.** 

**Definition of a Non-U.S. Holder** 

For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our Class A common stock that is an individual, corporation, estate or trust that is not a "U.S. person." A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or
organized under the laws of the United States, any state thereof, or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more
"United States persons" (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

**Distributions** 

As described in the section entitled "Dividend policy," we do not anticipate declaring or paying any dividends on our Class A common stock in the foreseeable future. However, if we do make distributions of cash or property on our Class A common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute returns of capital and first be applied against and reduce a Non-U.S. Holder's adjusted tax basis in its Class A common stock, but not below zero. Any excess will be treated as capital gain and will be treated as described below under "—Sale or other taxable disposition."

Subject to the discussion below on effectively connected income, dividends paid to a Non-U.S. Holder will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S. Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States. Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the rates and in the manner generally applicable to United States persons (as defined by the Code) unless an applicable income tax treaty provides otherwise. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such

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effectively connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

**Sale or other taxable disposition** 

A Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our Class A common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with the Non-U.S. Holder's
conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is
attributable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Non-U.S. Holder is a nonresident alien individual present in the
United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class A common stock constitutes a U.S. real property interest ("USRPI") by reason of our
status as a U.S. real property holding corporation ("USRPHC") for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the rates and in the manner generally applicable to United States persons (as defined by the Code) unless an applicable income tax treaty provides otherwise. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

A Non-U.S. Holder described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on gain realized upon the sale or other taxable disposition of our Class A common stock, which may be offset by certain U.S.-source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we believe that we currently are, and expect to remain for the foreseeable future, a USRPHC for U.S. federal income tax purposes. However, as long as our Class A common stock continues to be regularly traded on an established securities market, only a non-U.S. holder that actually or constructively owns, or owned at any time during the shorter of the five-year period ending on the date of the disposition and the Non-U.S. Holder's holding period for the Class A common stock, more than 5% of our Class A common stock will be subject to tax with respect to gain realized on the disposition of our Class A common stock as a result of our status as a USRPHC. We anticipate that our Class A common stock will be regularly traded on an established securities market following this offering. However, no assurance can be given in this regard, and no assurance can be given that our Class A common stock will remain regularly traded in the future. If our Class A common stock were not considered to be regularly traded on an established securities market during the calendar year in which the relevant disposition by a Non-U.S. Holder occurred, such holder (regardless of the percentage of our Class A common stock owned) would be subject to U.S. federal income tax on the taxable disposition of our Class A common stock (as described in the preceding paragraph), and a 15% withholding tax would apply to the gross proceeds from such disposition.

Non-U.S. Holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

**Information reporting and backup withholding** 

Payments of dividends on our Class A common stock will not be subject to backup withholding, provided the applicable payor does not have actual knowledge or reason to know the Non-U.S. Holder is a United States person and the Non-U.S. Holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or otherwise establishes an exemption.

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However, information returns are required to be filed with the IRS in connection with any distributions on our Class A common stock paid to the Non-U.S. Holder, regardless of whether any tax was actually withheld. In addition, proceeds of the sale or other taxable disposition of our Class A common stock within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting if the applicable payor receives the certification described above and does not have actual knowledge or reason to know that such Non-U.S. Holder is a United States person or the Non-U.S. Holder otherwise establishes an exemption. Proceeds of a disposition of our Class A common stock conducted through a non-U.S. office of a non-U.S. broker that does not have certain enumerated relationships with the United States generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRS may also be made available under the provisions of an applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

**Additional withholding tax on payments made to foreign accounts** 

Withholding may be imposed under Sections 1471 to 1474 of the Code (such Sections commonly referred to as the Foreign Account Tax Compliance Act ("FATCA") on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding may be imposed on dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from the sale or other disposition of, our Class A common stock paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States owned foreign entities" (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our Class A common stock. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of stock, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.

If withholding under FATCA is imposed, a beneficial owner that is not a foreign financial institution generally may obtain a refund of any amounts withheld by filing a U.S. federal income tax return (which may entail significant administrative burden). Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our Class A common stock.

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**UNDERWRITING** 

Raymond James & Associates, Inc. and Stifel, Nicolaus & Company, Incorporated are acting as representatives of the underwriters of this offering. Under the terms of an underwriting agreement, which will be filed as an exhibit to the registration statement of which this prospectus forms a part, each of the underwriters named below has severally agreed to purchase from us the respective number of shares of Class A common stock shown opposite its name below:

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| | |
|:---|:---|
| **Underwriter** | **Number of<br>Shares** |
|  Raymond James & Associates, Inc. |  |
|  Stifel, Nicolaus & Company, Incorporated |  |
|  J.P. Morgan Securities LLC |  |
|  Capital One Securities, Inc. |  |
|  Stephens Inc. |  |
|  Tuohy Brothers Investment Research, Inc. |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |

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The underwriting agreement provides that the obligation of the underwriters to purchase and accept delivery of the shares of Class A common stock offered by this prospectus are subject to approval by their counsel of certain legal matters and to certain other customary conditions set forth in the underwriting agreement.

The underwriters are obligated to purchase and accept delivery of all of the shares of Class A common stock offered by this prospectus, if any of the shares of Class A common stock are purchased, other than those covered by the underwriters' option to purchase additional shares described below.

The underwriters initially propose to offer the shares of Class A common stock directly to the public at the public offering price listed on the cover page of this prospectus and to various dealers at that price less a concession not in excess of $ per share of Class A common stock. After the public offering of the shares of Class A common stock, the underwriters may change the public offering price and other selling terms. The shares of Class A common stock are offered by the underwriters as stated in this prospectus, subject to receipt and acceptance by them. The underwriters reserve the right to reject an order for the purchase of the shares of Class A common stock in whole or in part.

**Option to Purchase Additional Shares** 

We have granted the underwriters an option exercisable for 30 days after the date of this prospectus to purchase, from time to time, in whole or in part, up to an aggregate of shares of our Class A common stock from us at the offering price less underwriting discounts and commissions, solely for the purpose of covering overallotments. To the extent that this option is exercised, each underwriter will be obligated, subject to certain conditions, to purchase its pro rata portion of these additional shares based on the underwriter's percentage underwriting commitment in this offering as indicated in the above table.

**Discounts and Expenses** 

The following table summarizes the underwriting discounts and commissions we will pay to the underwriters. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase

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additional shares. The underwriting fee is the difference between the initial price to the public and the amount the underwriters pay to us for the shares.

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| | | |
|:---|:---|:---|
|  | **Paid by the<br>Company** | **Paid by the<br>Company** |
|  | **No Exercise** | **Full Exercise** |
|  Per Share | $| $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $| $|

---

If all the shares are not sold at the initial public offering price following the initial public offering, the representatives may change the offering price and other selling terms.

The expenses of the offering that are payable by us are estimated to be approximately $(excluding underwriting discounts and commissions). We have agreed to reimburse the underwriters for certain of their expenses in an amount up to $.

**Indemnification** 

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters may be required to make for these liabilities.

**Lock-Up Restrictions** 

We and our directors and executive officers will enter into lock-up agreements pursuant to which we and they will be subject to certain restrictions with respect to the offer, sale or disposition or hedge of any of our securities for a period of 180 days following the date of this prospectus. Additionally, our amended and restated certificate of incorporation will provide that, subject to certain exceptions, all of the shares of Class A common stock held by the Legacy Common Stock Investors may not be sold, pledged, transferred or otherwise disposed of for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering. Following the expiration of such lock-up restrictions, such stockholders, subject to compliance with the Securities Act or exceptions therefrom, will be able to freely trade their Class A common stock. These restrictions also preclude any hedging collar or other transaction designed or reasonably expected to result in a disposition of shares of Class A common stock or securities convertible into or exercisable or exchangeable for shares of Class A common stock. The representatives may, in their sole discretion and at any time without notice, release all or any portion of the securities subject to these restrictions.

**Offering Price Determination** 

Prior to this offering, there has been no public market for our Class A common stock. The initial public offering price was negotiated between the representatives and us. In determining the initial public offering price of our Class A common stock, the representatives considered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the history and prospects for the industry in which we compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our management and our business potential and earning prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the prevailing securities markets at the time of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recent market prices of, and the demand for, publicly traded shares of generally comparable companies.

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**Stabilization, Short Positions and Penalty Bids** 

Until the distribution of the securities offered by this prospectus is completed, rules of the SEC may limit the ability of the underwriters to bid for and to purchase shares of our Class A common stock. As an exception to these rules, the underwriters may engage in transactions effected in accordance with Regulation M under the Exchange Act ("Regulation M") that are intended to stabilize, maintain or otherwise affect the price of the shares of our Class A common stock. The underwriters may engage in stabilizing transactions, short sales, syndicate covering transactions and penalty bids in accordance with Regulation M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not
exceed a specified maximum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A short position involves a sale by the underwriters of shares in excess of the number of shares the underwriters
are obligated to purchase in the offering, which creates the syndicate short position. This short position may be either a covered short position or a naked short position. In a covered short position, the number of shares involved in the sales made
by the underwriters in excess of the number of shares they are obligated to purchase is not greater than the number of shares that they may purchase by exercising their option to purchase additional shares. In a naked short position, the number of
shares involved is greater than the number of shares in their option to purchase additional shares. The underwriters may close out any short position by either exercising their option to purchase additional shares and/or purchasing shares in the
open market. In determining the source of shares to close out the short position, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase
shares through their option to purchase additional shares. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of the shares in the open market after pricing that
could adversely affect investors who purchase in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Syndicate covering transactions involve purchases of the Class A common stock in the open market after the
distribution has been completed in order to cover syndicate short positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Penalty bids permit the representatives to reclaim a selling concession from a syndicate member when the Class A
common stock originally sold by the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our Class A common stock or preventing or retarding a decline in the market price of the Class A common stock. As a result, the price of the Class A common stock may be higher than the price that might otherwise exist in the open market. These transactions may be effected on the NYSE or otherwise and, if commenced, may be discontinued at any time.

Neither we nor any of the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of the Class A common stock. In addition, neither we nor any of the underwriters make any representation that the representatives will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued without notice.

**Electronic Distribution** 

A prospectus in electronic format may be made available on the Internet sites or through other online services maintained by one or more of the underwriters and/or selling group members participating in this offering, or by their affiliates. In those cases, prospective investors may view offering terms online and, depending upon the particular underwriter or selling group member, prospective investors may be allowed to place orders online. The underwriters may agree with us to allocate a specific number of shares for sale to online brokerage account holders. Any such allocation for online distributions will be made by the representatives on the same basis as other allocations.

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Other than the prospectus in electronic format, the information on any underwriter's or selling group member's web site and any information contained in any other web site maintained by an underwriter or selling group member is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or any underwriter or selling group member in its capacity as underwriter or selling group member and should not be relied upon by investors.

**Listing** 

We have applied to list our shares of Class A common stock on the NYSE under the symbol "WHK."

**Stamp Taxes** 

If you purchase shares of Class A common stock offered in this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the offering price listed on the cover page of this prospectus.

**Other Relationships** 

The underwriters and certain of their affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. The underwriters and certain of their affiliates have, from time to time, performed, and may in the future perform, various commercial and investment banking and financial advisory services for the issuer and its affiliates, for which they received or may in the future receive customary fees and expenses.

In the ordinary course of their various business activities, the underwriters and certain of their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and/or instruments of the issuer or its affiliates. If the underwriters or their affiliates have a lending relationship with us, certain of those underwriters or their affiliates may hedge their credit exposure to us consistent with their customary risk management policies. Typically, the underwriters and their affiliates would hedge such exposure by entering into transactions that consist of either the purchase of credit default swaps or the creation of short positions in our securities or the securities of our affiliates, including potentially the shares of Class A common stock offered hereby. Any such credit default swaps or short positions could adversely affect future trading prices of the shares of Class A common stock offered hereby. The underwriters and certain of their affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**Directed Share Program** 

At our request, the underwriters have reserved up to 5% of the Class A common stock being offered by this prospectus for sale at the initial public offering price to our directors, officers, employees and other individuals associated with us and members of their families. The sales will be made by Raymond James & Associates, Inc., an underwriter of this offering, through a directed share program. We do not know if these persons will choose to purchase all or any portion of these reserved shares, but any purchases they do make will reduce the number of shares available to the general public. Any reserved shares not so purchased will be offered by the underwriters to the general public on the same terms as the other shares of Class A common stock. Participants in the directed share program shall be subject to a lock-up provision that will have similar restrictions and an identical extension provision to the lock-up restrictions described above. Any shares sold in the directed share program to our directors or executive officers shall be subject to the lock-up restrictions described above. We have agreed to

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indemnify the underwriters against certain liabilities and expenses, including liabilities under the Securities Act, in connection with the sales of the shares reserved for the directed share program.

**Selling Restrictions** 

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**European Economic Area and United Kingdom** 

In relation to each Member State of the European Economic Area and the United Kingdom (each, a "Relevant Member State"), no Class A common stock has been offered or will be offered pursuant to the offering to a public in that Relevant Member State prior to the publication of a prospectus in relation to the Class A common stock that has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordance with the Prospectus Regulation (as defined below), except that offers of shares may be made to the public in that Relevant Member State at any time under the following exemptions under the Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to legal entities that are qualified investors as defined under the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• by the underwriters to fewer than 150 natural or legal persons (other than qualified investors as defined in the
Prospectus Regulation), subject to obtaining prior consent of each of the representatives of the underwriters for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of Class A common stock shall result in a requirement for us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For the purposes of this provision, the expression "offer to the public" in relation to any shares in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

**United Kingdom** 

This prospectus has only been communicated or caused to have been communicated and will only be communicated or caused to be communicated as an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act of 2000 (the "FSMA")) as received in connection with the issue or sale of the Class A common stock in circumstances in which Section 21(1) of the FSMA does not apply to us. All applicable provisions of the FSMA will be complied with in respect to anything done in relation to the Class A common stock in, from or otherwise involving the United Kingdom.

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**Canada** 

The securities may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts ("NI 33-105"), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

**Notice to Prospective Investors in Switzerland** 

This prospectus does not constitute an issue prospectus pursuant to Article 652a or Article 1156 of the Swiss Code of Obligations and the securities will not be listed on the SIX Swiss Exchange. Therefore, this prospectus may not comply with the disclosure standards of the listing rules (including any additional listing rules or prospectus schemes) of the SIX Swiss Exchange. Accordingly, the securities may not be offered to the public in or from Switzerland, but only to a selected and limited circle of investors who do not subscribe to the securities with a view to distribution. Any such investors will be individually approached by the underwriters from time to time.

**Dubai International Financial Centre** 

This prospectus relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority ("DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for this prospectus. The securities to which this offering memorandum relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the securities offered should conduct their own due diligence on the securities. If you do not understand the contents of this prospectus, you should consult an authorized financial advisor.

**Hong Kong** 

The shares may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) ("Companies (Winding Up and Miscellaneous Provisions) Ordinance") or which do not constitute an invitation to the public within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) ("Securities and Futures Ordinance"), or (ii) to "professional investors" as defined in the Securities and Futures Ordinance and any rules made thereunder, or (iii) in other circumstances that do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance, and no advertisement,

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invitation or document relating to the shares may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares that are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" in Hong Kong as defined in the Securities and Futures Ordinance and any rules made thereunder.

**Singapore** 

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares may not be circulated or distributed, nor may the shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA")) under Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person that is a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for six months after that corporation has acquired the shares under Section 275 of the SFA except: (i) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (ii) where such transfer arises from an offer in that corporation's securities pursuant to Section 275(1A) of the SFA, (iii) where no consideration is or will be given for the transfer, (iv) where the transfer is by operation of law, (v) as specified in Section 276(7) of the SFA, or (vi) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore ("Regulation 32").

Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person that is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for six months after that trust has acquired the shares under Section 275 of the SFA except: (i) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (ii) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (iii) where no consideration is or will be given for the transfer, (iv) where the transfer is by operation of law, (v) as specified in Section 276(7) of the SFA, or (vi) as specified in Regulation 32.

**Japan** 

The securities have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended) (the "FIEA"). The securities may not be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.

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**LEGAL MATTERS** 

Latham & Watkins LLP has passed upon the validity of the Class A common stock offered hereby on behalf of us. Certain legal matters related to this offering will be passed upon for the underwriters by Vinson & Elkins L.L.P., Houston, Texas.

**EXPERTS** 

The consolidated financial statements of WhiteHawk Income Corporation as of December 31, 2025 and for the year then ended included in this prospectus have been audited by Baker Tilly US, LLP, an independent registered public accounting firm, as stated in their report, which is included herein. Such consolidated financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

The consolidated financial statements of WhiteHawk Income Corporation as of December 31, 2024 and for the year then ended included in this prospectus have been audited by Whitley Penn LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The financial statements of PHX Minerals Inc. at December 31, 2024 and 2023, and for each of the two years in the period ended December 31, 2024, appearing in this Prospectus and Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The carve-out financial statements of Three Rivers Royalty, LLC at December 31, 2024 and 2023, and for each of the two years ended December 31, 2024, appearing in this Prospectus and Registration Statement have been audited by Plante & Moran, PLLC, an independent auditor, as stated in their report, which report includes an emphasis of matter paragraph related to the carve-out basis of accounting. We have included the financials statements of Three Rivers Royalty, LLC in this prospectus and elsewhere in the registration statement in reliance on the report of Plante & Moran, PLLC, given on their authority as experts in accounting and auditing.

Estimates of our reserves and related future net cash flows related to our properties as of December 31, 2024 included herein and elsewhere in the registration statement were based upon the reserve report prepared by our independent petroleum engineer, Schaper Energy Consulting, LLC. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Estimates of PHX Minerals, Inc.'s reserves and related future net cash flows related to its properties as of December 31, 2024 included herein and elsewhere in the registration statement were based upon the reserve report prepared by PHX Minerals, Inc.'s independent petroleum engineer, Cawley, Gillespie and Associates, Inc. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Estimates of Three River Royalty, LLC's reserves and related future net cash flows related to its properties as of December 31, 2024 included herein and elsewhere in the registration statement were based upon the reserve report prepared by Three River Royalty, LLC's independent petroleum engineer, Ryder Scott Company, L.P. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Estimates of our reserves and related future net cash flows related to our properties as of December 31, 2025 included herein and elsewhere in the registration statement were based upon the reserve report prepared by our independent petroleum engineer, Cawley, Gillespie and Associates, Inc. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Information related to undeveloped locations as of December 31, 2025, included in this prospectus has been audited by Cawley, Gillespie and Associates, Inc. We have included this information in reliance on the authority of such firm as an expert in such matter.

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**CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

On June 30, 2025, we notified Whitley Penn LLP ("WP"), which had served as our prior independent registered public accounting firm, of our intention to obtain proposals from other accounting firms to perform the audit of our consolidated financial statements as of and for the year ending December 31, 2025 (our "2025 Audit"). On July 1, 2025, we engaged Baker Tilly US, LLP ("BT") as our independent registered public accounting firm for our 2025 Audit, effective immediately. The decision to dismiss WP and engage BT was approved by our management but has not yet been approved by our board of directors. On May 19, 2026, our board of directors ratified the dismissal of WP and the appointment of BT as our independent registered public accounting firm.

The reports of WP on our consolidated financial statements as of December 31, 2024, and for the years then ended, did not contain adverse opinions or disclaimers of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

During the year ended December 31, 2024 and the subsequent interim period through June 30, 2025, there were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions
thereto) with WP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of WP, would have caused WP to make reference to the
subject matter of the disagreements in its report on our financial statements as of December 31, 2024 and 2023, and for the years then ended, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K and the related
instructions thereto).

We provided WP with a copy of the disclosure set forth in this section and requested that WP furnish us with a letter addressed to the SEC stating whether WP agrees with the statements made herein, each as required by applicable SEC rules. A copy of the letter, dated May 11, 2026, furnished by WP in response to that request, is filed as Exhibit 16.1 to the registration statement of which this prospectus is a part.

During the year ended December 31, 2024 and the subsequent interim period through June 30, 2025, when we engaged BT, we did not consult with BT with respect to (i) the application of accounting principles to a specified transaction, either completed or proposed, the type of audit opinion that might be rendered on our financial statements, and neither a written report nor oral advice was provided to us that BT concluded was an important factor considered by us in reaching a decision as to any accounting, auditing, or financial reporting issue, or (ii) any matter that was the subject of a "disagreement" or a "reportable event" (each as defined above).

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**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of our Class A common stock offered by this prospectus. For purposes of this section, the term registration statement means the original registration statement and any and all amendments including the schedules and exhibits to the original registration statement or any amendment. This prospectus, filed as part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules thereto as permitted by the rules and regulations of the SEC. For further information about us and our Class A common stock, you should refer to the registration statement, including its exhibits and schedules. This prospectus summarizes provisions that we consider material of certain contracts and other documents to which we refer you. Because the summaries may not contain all of the information that you may find important, you should review the full text of those documents.

This registration statement, including its exhibits and schedules, will be filed with the SEC. The SEC maintains a website at (http://www.sec.gov) from which interested persons can electronically access the registration statement, including the exhibits and schedules to the registration statement. We intend to furnish our stockholders with annual reports containing financial statements audited by our independent auditors.

Upon the closing of this offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Exchange Act. These reports, proxy statements, and other information will be available on the website of the SEC referred to above. We also maintain a website at www.whitehawkenergy.com, through which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on, or that can be accessed through, our website or any subsection thereof is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

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**INDEX TO FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
|  | **Page** |
|  **WhiteHawk Income Corporation** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audited Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 23)](#fin86452_1) | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 726)](#fin86452_1a) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2025 (restated) and 2024](#fin86452_2) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the years ended December 31, 2025 (restated) and 2024](#fin86452_3) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Mezzanine Equity and Shareholders' Equity as of December 31, 2025 (restated) and 2024](#fin86452_4) | F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the years ended December 31, 2025 (restated) and 2024](#fin86452_5) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Consolidated Financial Statements](#fin86452_6) | F-9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaudited Interim Condensed Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Balance Sheets as of March 31, 2026 and 2025 (unaudited)](#fin86452_1011) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025 (unaudited)](#fin86452_1012) | F-42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Mezzanine Equity and Shareholders' Equity for the three months ended March 31, 2026 and 2025 (unaudited)](#fin86452_1013) | F-43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (unaudited)](#fin86452_1014) | F-44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Condensed Consolidated Financial Statements (unaudited)](#fin86452_1015) | F-45 |
|  **PHX Minerals, Inc.** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audited Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 42)](#fin86452_7) | F-68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheets as of December 31, 2024 and 2023](#fin86452_8) | F-70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statements of Income for the years ended December 31, 2024 and 2023](#fin86452_9) | F-71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statements of Stockholders' Equity as of December 31, 2024 and 2023](#fin86452_10) | F-72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statements of Cash Flows for the years ended December 31, 2024 and 2023](#fin86452_11) | F-73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_12) | F-74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaudited Interim Condensed Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Balance Sheets as of March 31, 2025 and 2024](#fin86452_12a) | F-100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statements of Income for the three months ended March 31, 2025 and 2024](#fin86452_12b) | F-101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statements of Stockholders' Equity as of March 31, 2025 and 2024](#fin86452_12c) | F-102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statements of Cash Flows for the three months ended March 31, 2025 and 2024](#fin86452_12d) | F-103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_12e) | F-104 |
|  **Three Rivers Royalty, LLC** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audited Carve-Out Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 166)](#fin86452_13) | F-117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheet as of December 31, 2024 and 2023](#fin86452_14) | F-119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Operations for the years ended December 31, 2024 and 2023](#fin86452_15) | F-120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Changes in Member's Equity for the years ended December 31, 2024 and 2023](#fin86452_16) | F-121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Cash Flows for the years ended December 31, 2024 and 2023](#fin86452_17) | F-122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_18) | F-123 |

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**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED FINANCIAL STATEMENTS** 

**YEARS ENDED DECEMBER 31, 2025 AND 2024** 

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**WHITEHAWK INCOME CORPORATION** 

**TABLE OF CONTENTS** 

**WHITEHAWK INCOME CORPORATION** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (Baker Tilly US, LLP, Dallas, Texas PCAOB ID:23)](#fin86452_1) | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (Whitley Penn LLP, Houston, Texas, PCAOB ID:726)](#fin86452_1a) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets (as restated)](#fin86452_2) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations (as restated)](#fin86452_3) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Mezzanine Equity and Shareholders' Equity (as restated)](#fin86452_4) | F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows (as restated)](#fin86452_5) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Consolidated Financial Statements](#fin86452_6) | F-9 |

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**Report of Independent Registered Public Accounting Firm** 

To the Shareholders and the Board of Directors of

WhiteHawk Income Corporation

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheet of WhiteHawk Income Corporation (and subsidiaries) (the "Company") as of December 31, 2025, the related consolidated statements of operations, mezzanine equity and shareholders' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

**Restatement of Previously Issued Financial Statements** 

As discussed in Note 3, the Company has restated its 2025 consolidated financial statements for the correction of errors.

**Basis for Opinion** 

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Baker Tilly US, LLP

Dallas, Texas

March 31, 2026, except for Note 3, as to which the date is May 6, 2026

We have served as the Company's auditor since 2025

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Shareholders of

WhiteHawk Income Corporation and its subsidiaries:

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of WhiteHawk Income Corporation and subsidiaries (the "Company") as of December 31, 2024, and the related consolidated statement of operations, statement of mezzanine equity and shareholders' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis for our opinion.

**Critical Audit Matters** 

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

We have served as the Company's auditor since 2022.

/s/ Whitley Penn LLP

Houston, Texas 

March 31, 2025

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**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED BALANCE SHEETS** 

**(In thousands, except par value and share amounts)** 

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  | **(As restated)** | |
|  **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $28989 | $5330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 10176 | 4036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term derivative asset | 5349 | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1410 | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 45924 | 9704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas and oil mineral interests, net - successful efforts method | 460586 | 155084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other property and equipment, net | 275 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 353 | 1132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $507138 | $165920 |
|  **Liabilities, mezzanine equity and shareholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $1177 | $1274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 1158 | 1232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued dividends | 7516 | 2399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, current portion | 6275 | 6500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 176 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 16302 | 11405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, net of unamortized debt issuance costs | 227985 | 56284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 21329 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 121 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term derivative liability | 4669 | 6439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 316 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 270722 | 74128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (See Note 14) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mezzanine equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A Preferred stock, $0.0001 par value; 400,000 shares authorized; 0 and 19,000 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively, redemption value $0 and $19,000, respectively |  | 13308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred stock, $0.0001 par value; 400,000 shares authorized; 35,524 and 9,823 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively, redemption value $35,524 and $9,823, respectively | 27662 | 7917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value; 7,000,000 shares authorized; 6,518,383 and 2,635,050 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class T common stock, $0.0001 par value; 100,000 shares authorized; 66,830 and 38,094 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class I common stock, $0.0001 par value; 9,100,000 shares authorized; 8,050,883 and 1,917,690 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital | 223900 | 82128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (15146) | (11561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 208754 | 70567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, mezzanine equity and shareholders' equity | $507138 | $165920 |

---

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

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED STATEMENTS OF OPERATIONS** 

**(In thousands, except per share data)** 

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $50075 | $12702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | 16648 | (4418) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 872 | 1166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 67595 | 9450 |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 16585 | 2792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9966 | 4681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 50788 | 18300 |
|  **Operating income (loss)** | 16807 | (8850) |
|  **Other expense:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of assets | 123 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 | 3939 |
|  **Income (loss) before income taxes** | (6225) | (13148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (2640) | (1587) |
|  **Net income (loss)** | (3585) | (11561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings allocated to participating securities | (7341) | (5266) |
|  **Net income (loss) attributable to common stockholders** | $(10926) | $(16827) |
|  **Earnings(loss) per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | $(1.30) | $(3.88) |
|  **Weighted average number of shares outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | 8378 | 4340 |

---

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

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY** 

**(In thousands)** 

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** |
|  | **Series A<br>Preferred Stock** | **Series A<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series C<br>Preferred Stock** | **Series C<br>Preferred Stock** | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class T<br>Common Stock** | **Class T<br>Common Stock** | **Class I<br>Common Stock** | **Class I<br>Common Stock** | **Additional<br>Paid In<br>Capital** | **Retained<br>Earnings<br>(Accumulated<br>Deficit) (As<br>restated)** | **Total<br>Shareholders'<br>Equity (As<br>restated)** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid In<br>Capital** | **Retained<br>Earnings<br>(Accumulated<br>Deficit) (As<br>restated)** | **Total<br>Shareholders'<br>Equity (As<br>restated)** |
|  **Balance at December 31, 2023** | 44 | $43217 |  | $— |  | $— | 2279 | $— | 38 | $— | 1836 | $— | $81193 | $— | $81193 |
|  Issuance of common stock |  |  |  |  |  |  | 375 |  |  |  | 82 |  | 11041 |  | 11041 |
|  Common stock redemption |  |  |  |  |  |  | (19) |  |  |  |  |  | (436) |  | (436) |
|  Issuance of Series B Preferred Stock |  |  | 10 | 9654 |  |  |  |  |  |  |  |  |  |  |  |
|  Redemption of Series A Preferred Stock | (25) | (25100) |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Equity issuance costs |  |  |  | (1182) |  |  |  |  |  |  |  |  | (1428) |  | (1428) |
|  Common stock dividends |  |  |  |  |  |  |  |  |  |  |  |  | (8242) |  | (8242) |
|  Preferred stock dividends |  | (4809) |  | (555) |  |  |  |  |  |  |  |  |  |  |  |
|  Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  | (11561) | (11561) |
|  **Balance at December 31, 2024** | 19 | $13308 | 10 | $7917 |  | $— | 2635 | $— | 38 | $— | 1918 | $— | $82128 | $(11561) | $70567 |
|  Issuance of common stock |  |  |  |  |  |  | 3894 |  | 29 |  | 6133 |  | 178162 |  | 178162 |
|  Common stock redemption |  |  |  |  |  |  | (11) |  |  |  |  |  | (267) |  | (267) |
|  Issuance of Preferred Stock |  |  | 25 | 24920 | 56 | 56000 |  |  |  |  |  |  |  |  |  |
|  Redemption of Preferred Stock | (19) | (12514) |  | (138) | (56) | (51520) |  |  |  |  |  |  | (10966) |  | (10966) |
|  Equity issuance costs |  |  |  | (2566) |  |  |  |  |  |  |  |  | (6968) |  | (6968) |
|  Common stock dividends |  |  |  |  |  |  |  |  |  |  |  |  | (18368) |  | (18368) |
|  Preferred stock dividends |  | (794) |  | (2471) |  | (4480) |  |  |  |  |  |  |  |  |  |
|  Stock based compensation |  |  |  |  |  |  |  |  |  |  |  |  | 179 |  | 179 |
|  Net loss (as restated) |  |  |  |  |  |  |  |  |  |  |  |  |  | (3585) | (3585) |
|  **Balance at December 31, 2025 (As restated)** |  | $— | 35 | $27662 |  | $— | 6518 | $— | 67 | $— | 8051 | $— | $223900 | $(15146) | $208754 |

---

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

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(In thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  | **(As restated)** | |
|  Cash flow from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(3585) | $(11561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gain) loss on commodity derivative instruments | (8122) | 13134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 179 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 744 | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on the sale of assets | 123 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (3508) | (1587) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities (net of assets and liabilities acquired) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (562) | (1534) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 149 | (126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 1319 | (1097) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (836) | 327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other liabilities | (400) | 389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 13577 | 9447 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of oil and gas properties, net of post-close adjustments | (115342) | (30392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of PHX, net of cash | (194616) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (309958) | (30392) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Senior Notes | 186000 | 65000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of Senior Notes | (13300) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of Term Loan |  | (20000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred financing costs | (5807) | (2333) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of common stock, net | 169737 | 9613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of Series B preferred stock, net | 22354 | 8472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of Series C preferred stock, net | 56000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock redemptions | (267) | (436) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A Preferred Stock redemptions | (19000) | (25100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred Stock redemptions | (138) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series C Preferred Stock redemptions | (56000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series A Preferred Stock | (794) | (4809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series B Preferred Stock | (1797) | (305) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series C Preferred Stock | (4480) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to common stock | (12468) | (8041) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 320040 | 22061 |
|  Net increase (decrease) in cash and cash equivalents | 23659 | 1116 |
|  Cash and cash equivalents, beginning of period | 5330 | 4214 |
|  Cash and cash equivalents, end of period | $28989 | $5330 |
|  **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $19117 | $3780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $745 | $877 |
|  **Non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to common stock holders through common stock issuances pursuant to dividend reimbursement plan | $1457 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock dividend | $57100 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in dividends declared but not yet paid | $5148 | $451 |

---

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

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 1—Organization and Presentation** 

***Organization and Description of Business***

WhiteHawk was formed in February 2022 to acquire, own and manage mineral interests with the objective of generating cash flow from operations that can be distributed to shareholders as dividends and reinvested to expand our base of cash flow generating assets. WhiteHawk is governed by a board of directors (the "Board"). The Company's primary investment objective is to provide shareholders with current income with the potential for capital appreciation. The Company's primary business objective is to provide a return to investors by owning and acquiring mineral interests in natural gas resources across the U.S. and distributing a meaningful portion of our cash flow to investors as dividends.

In March 2025, the Company doubled its ownership interests in the natural gas mineral assets of Three Rivers Royalty, LLC (the "Seller") located in southwestern Pennsylvania by purchasing the remaining 50% undivided interest in the natural gas mineral assets of the Seller for $118.0 million ("Three Rivers Acquisition").

During 2024, the Company announced the acquisition of additional Marcellus Shale natural gas and royalty assets covering 435,000 gross unit acres across southwestern Pennsylvania and northern West Virginia ("Marcellus Acquisition") for $30.0 million.

*PHX Acquisition*

On June 23, 2025, following the completion of the previously announced tender offer, the Company completed the acquisition of PHX Minerals Inc. ("PHX") through a merger pursuant to the Agreement and Plan of Merger ("Merger Agreement"), dated May 8, 2025, by and among WhiteHawk Merger Sub, Inc., Whitehawk Acquisition, Inc. (" Merger Parent") and PHX ("PHX Merger"). Upon completion of the merger, PHX became a wholly owned subsidiary of Merger Parent, a wholly owned subsidiary of the Company. The Company acquired PHX in an all-cash transaction that valued PHX at $4.35 per share, or a total value of approximately $194.8 million, including PHX's net debt. Refer to "Note 4—PHX Merger" for further information.

**Note 2—Summary of Significant Accounting Policies** 

***Basis of Presentation***

The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles ("GAAP") in the U.S. and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions are eliminated in consolidation.

***Principles of Consolidations***

These consolidated financial statements reflect the financial condition, results of operations, cash flows and changes in shareholders' equity of the Company and its consolidated subsidiaries, WhiteHawk Income Marcellus, LLC, WhiteHawk Income Haynesville, LLC, WhiteHawk Acquisition, Inc. and PHX Minerals Inc. for the periods presented. All intercompany balances and transactions are eliminated in consolidation.

***Cash and Cash Equivalents***

Cash and cash equivalents represent unrestricted cash on hand and include all highly liquid investments purchased with a maturity of three months or less and money market funds. The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. The Company has not experienced any significant losses from such investments.

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##### [**Table of Contents**](#toc)
***Use of Estimates***

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities; disclosure of contingent assets and liabilities at the date of the financial statements; the reported amounts of revenues and expenses during the reporting periods; and the quantities and values of proved oil, natural gas and natural gas liquids ("NGL") reserves used in calculating depletion and assessing impairment of natural gas mineral properties. Actual results could differ significantly from these estimates. Significant estimates made by management include the quantities of proved oil, natural gas and NGLs reserves, related present value estimates of future net cash flows therefrom, the carrying value of natural gas mineral properties, and estimates of current and deferred income taxes. Other areas requiring estimation include valuation of commodity derivatives and our revenue accrual. While management believes these estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates and it is reasonably possible these estimates could be revised in the near term, and these revisions could be material.

***Accounts Receivable***

Accounts receivable represents amounts due to the Company, and are uncollateralized, consisting primarily of royalty revenue receivable. Royalty revenue receivable consists of royalties due from operators for oil, natural gas and NGL volumes sold to purchasers. Those purchasers remit payment for production to the operator of the properties and the operator, in turn, remits payment to the Company. Receivables from third parties for which we did not receive actual production information, either due to timing delays or due to the unavailability of data at the time when revenues are recognized, are estimated. The Company routinely reviews outstanding balances, assesses the financial strength of its operators and records a reserve for amounts not expected to be fully recovered, using a current expected credit loss model. The Company write off receivables when there is information that indicates the debtor is facing significant financial difficulty and there is no possibility of recovery. If any recoveries are made from any accounts previously written off, it will be recognized in income in the year of recovery, in accordance with the Company's accounting policy election. The Company did not record any credit losses for the years ended December 31, 2025, and 2024.

***Commodity Derivative Financial Instruments***

The Company's ongoing operations expose it to changes in the market price for natural gas minerals. To mitigate the price risk associated with its operations, the Company uses commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company does not enter into derivative instruments for speculative purposes.

Derivative instruments are recognized at fair value. If a right of offset exists under master netting arrangements and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the consolidated balance sheets. The Company does not specifically designate derivative instruments as fair value or cash flow derivatives, even though they reduce its exposure to changes in natural gas mineral prices; therefore, gains and losses arising from changes in the fair value of the derivative instruments are recognized in revenue on a net basis in the accompanying consolidated statements of operations within gain (loss) on commodity derivative instruments.

***Mineral Interests in Natural Gas Properties***

The Company follows the successful efforts method of accounting for natural gas mineral operations. Under this method, costs to acquire minerals and interests in natural gas mineral properties are capitalized when incurred. Acquisitions of interests of natural gas mineral properties are considered asset acquisitions and are recorded at cost.

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Acquisition costs of proven mineral interests are amortized using the units of production method over the life of the property, which is estimated using proven reserves. Acquisition costs of mineral interests on unproved properties, where there are no proven reserves, are not amortized. When the associated exploration stage interests are converted to proven reserves, the cost basis is amortized using the units of production methodology over the life of the property, using proven reserves. For purposes of amortization, interests in natural gas mineral properties are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic condition.

We review and evaluate our mineral interests in natural gas mineral properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Proved natural gas properties are reviewed for impairment when events and circumstances indicate a potential decline in the fair value of such properties below the carrying value, such as a downward revision of the reserve estimates or lower commodity prices. When such events or changes in circumstances occur, we estimate the undiscounted future cash flows expected in connection with the properties and compare such future cash flows to the carrying amounts of the properties to determine if the carrying amounts are recoverable. If the carrying value of the properties is determined to not be recoverable based on the undiscounted cash flows, an impairment charge is recognized by comparing the carrying value to the estimated fair value of the properties. The factors used to determine fair value include, but are not limited to, estimates of proved, probable and possible reserves, future commodity prices, the timing of future production and a discount rate commensurate with the risk reflective of the lives remaining for the respective natural gas properties. There was no such impairment of proved natural gas mineral properties for the years ended December 31, 2025, or 2024.

Unproved properties are also assessed for impairment periodically on a depletable unit basis when facts and circumstances indicate that the carrying value may not be recoverable, at which point an impairment loss is recognized to the extent the carrying value exceeds the estimated recoverable value. The carrying value of unproved properties, including unleased mineral rights, is determined based on management's assessment of fair value using factors similar to those previously noted for proved properties, as well as geographic and geologic data. There was no impairment of unproved properties for the years ended December 31, 2025, and 2024.

Upon the sale of a complete depletable unit, the book value thereof, less proceeds or salvage value, is charged to income. Upon the sale or retirement of an individual well, or an aggregation of interests which make up less than a complete depletable unit, the proceeds are credited to accumulated depletion, unless doing so would significantly alter the depletion rate of the depletable unit, in which case a gain or loss would be recorded.

***Fair Value of Financial Instruments***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value measurements are derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This three-tier hierarchy classifies fair value amounts recognized or disclosed in the consolidated financial statements based on the observability of inputs used to estimate such fair values. The classification within the hierarchy of an asset or liability is determined based on the lowest level input that is significant to the fair value measurement. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, the Company categorizes its assets and liabilities recorded at fair value using this hierarchy.

The amounts reported in the balance sheet for cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair value because of the short-term maturities of these instruments. The Company's commodity derivative instruments are classified within Level 2. The fair values of the Company's commodity derivative instruments are based upon inputs that are either readily available in the public market, such as natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets.

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Assets and liabilities accounted for at fair value on a non-recurring basis in accordance with Level 3 of the fair value hierarchy include the estimated impairment of oil and natural gas properties, if any, asset retirement obligations and the fair value of royalty interests acquired during each of the years ended December 31, 2025 and 2024.

***Debt Issuance Costs***

The Company accounts for the costs incurred in connection with borrowings under financing facilities as deferred and amortized over the life of the related financing on a straight-line basis which approximates the effective interest method. As of December 31, 2025 and 2024, the Company has deferred and capitalized costs associated with the Company's credit agreements of $3.4 million and $2.3 million, respectively. These deferred issuance costs will be amortized on a straight-line basis over the duration of the credit agreements. Debt issuance costs include origination, legal and other fees to obtain or issue debt. Debt issuance costs which are related to a debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability.

For the years ended December 31, 2025 and 2024, the Company amortized $0.7 million and $0.3 million, respectively, of deferred debt issuance costs in the accompanying consolidated statements of operations (see Note 8 – Debt).

***Leases***

The Company determines if an arrangement is a lease at inception by considering whether (1) explicitly or implicitly identified assets have been deployed in the agreement and (2) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. Operating leases are included in Other assets, and Operating lease liabilities in the consolidated balance sheets. As of December 31, 2025, and December 31, 2024, none of the Company's leases were classified as financing leases.

Right-of-use ("ROU") assets represent the Company's right to use an underlying asset for the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs, prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable, or its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.

The lease terms may include periods covered by options to extend the lease when it is reasonably certain that the Company will exercise that option and periods covered by options to terminate the lease when it is not reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company made an accounting policy election to not recognize leases with terms of less than twelve months on the consolidated balance sheets and recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. In the event that the Company's assumptions and expectations change, it may have to revise its ROU assets and operating lease liabilities.

***Revenue from Contracts with Customers***

The Company has the right to receive revenues from natural gas, oil and NGL sales obtained by the operator of the wells in which the Company owns a mineral or royalty interest. Revenue is recognized at the point control of the product is transferred to the purchaser. Virtually all of the pricing provisions in the Company's contracts are tied to a market index.

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The Company earns lease bonus income by leasing its mineral interests to exploration, development and production companies. The Company recognizes lease bonus income when a lease agreement has been executed and payment is determined to be collectible.

*Royalty Income from Oil, Natural Gas and Natural Gas Liquids Sales* 

The Company's oil, natural gas and NGL sales contracts are generally structured whereby the producer of the properties in which the Company owns a mineral or royalty interest sells the Partnership's proportionate share of oil, natural gas and NGL production to the purchaser and the Company collects its percentage royalty based on the revenue generated by the sale of the oil, natural gas and NGL. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the wellhead or at the gas processing facility based on the Company's percentage ownership share of the revenue, net of any deductions for gathering and transportation.

*Transaction Price Allocated to Remaining Performance Obligations* 

The Company's right to royalty income does not originate until production occurs and, therefore, is not considered to exist beyond each day's production. Therefore, there are no remaining performance obligations under any of the Company's royalty income contracts.

*Contract Balances* 

Under the Company's royalty income contracts, it generally has the right to receive its interest in the gross proceeds collected by the operator from third-party purchasers of the Company's production once production has occurred, at which point payment is unconditional. Accordingly, the Company's royalty income contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606.

*Prior-Period Performance Obligations* 

The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain oil, natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered. As a result, the Company is required to estimate the amount of royalty income to be received based upon the Company's royalty interest. The Company records the differences between its estimates and the actual amounts received for royalties in the month that payment is received from the operator. Any identified differences between its revenue estimates and actual revenue received historically have not been significant. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to expected sales volumes and prices for those properties are estimated and recorded.

The disaggregated revenues from sales of natural gas, oil and NGLs for the years ended December 31, 2025 and 2024 were as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  Natural gas sales | $48720 | $13656 |
|  Oil sales | 5359 | 205 |
|  NGL sales | 4622 | 1896 |
|  Less deductions for gathering, transportation and other | (8626) | (3055) |
|  Total royalty revenues | $50075 | $12702 |

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Revenues from lease bonus payments are recorded upon receipt. The lease bonus is separate from the lease itself and is recognized as revenue to the Company upon receipt of payment. The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies and includes proceeds from assignments of leasehold interests where the Company retains an interest. A lease agreement represents the Company's contract with a lessee and generally transfers the rights to develop oil or natural gas, grants the Company a right to a specified royalty interest, and requires that drilling and completion operations commence within a specified time period. Upon signing a lease agreement, no further performance obligation exists for the Company, and therefore, no contract assets or contract liabilities are generated.

***Concentration of Revenue***

Collectability of the Company's royalty revenues is dependent upon the financial condition of the Company's operators, the entities they sell their products to, as well as general economic conditions of the industry. During the years ended December 31, 2025 and 2024, the following operators represented 10% or more of total revenues:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  EQT Production Company | 33% | 50% |
|  Range Resources | 11% | 19% |
|  CNX Gas Company | 10% | 13% |
|  Total | 54% | 82% |

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Although the Company is exposed to a concentration of credit risk, the Company does not believe the loss of any single operator or entity would materially impact the Company's operating results as natural gas, crude oil and NGLs are fungible products with well-established markets and numerous purchasers. If multiple entities were to cease making purchases at or around the same time, we believe there would be challenges initially, but there would be ample markets to handle disruption.

***Income Taxes***

The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at December 31, 2025. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures,* which requires disaggregated information related to the effective tax rate reconciliation as well

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as information on income taxes paid. This ASU is effective for annual periods beginning after December 15, 2025, and requires prospective application with the option to apply the standard retrospectively. We are currently evaluating the impact of the ASU on our disclosures.

In November 2024, the FASB issued ASU 2024-03, *Income Statement (Subtopic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures,* which requires disclosure of additional information about specific expense categories underlying certain income statement expense line items. This ASU is effective for annual periods beginning after December 15, 2026, and requires either prospective or retrospective application. We are currently evaluating the impact of the ASU on our disclosures.

**Note 3—Restatement of Financial Statements** 

Subsequent to the issuance of the WhiteHawk Income Corporation's (the "Company" or "WhiteHawk") consolidated financial statements as of December 31, 2025 and 2024 and for the years ended December 31, 2025 and 2024 originally dated March 31, 2026 ("Original Report"), the Company identified errors in the financial statements. The first error is related to the reconciliation of the intercompany and related party balances that occurred during the consolidation process (the "Management Fee Misstatement") which resulted in the erroneous recording of a portion of the Base Management Fee (defined below) in accounts receivable instead of management fees. The second error is related to pre-closing and post-effective date monies received related to the Three Rivers Acquisition (defined below) was erroneously recorded as revenue instead of a reduction in the purchase price (the "Three Rivers Acquisition Misstatement" and together the "Misstatements"). The Misstatements impacted the previously issued audited consolidated financial statements as of December 31, 2025 and for the year then ended (the "Restatement Period"). In accordance with ASC 250 – *Accounting Changes and Error Corrections*, and SEC Staff Accounting Bulletin ("SAB") No. 99 – *Materiality*, management concluded the error was material to Company's consolidated financial statements and required restatement of the consolidated financial statements for the Restatement Period (the "Restatement").

***Restatement Background***

While performing closing procedures for the first quarter of 2026, the Company identified the Misstatements. The correction of the Misstatements impacts the previously reported amounts of accounts receivable, other current assets, natural gas and oil mineral interests, royalty revenue, depletion, management fees, provision for income taxes, net loss, net loss per common share, and all related financial statement subtotals and totals.

***Impact of Restatement***

The following tables present the impact of the Restatement to the specific line items presented in the previously reported audited consolidated financial statements. The amounts labeled "As Previously Reported" were derived from the Original Report. The amounts labeled "Adjustments" represents the impact of correcting the Misstatements identified by the Company. The effects of the Restatement have been corrected in all impacted tables and footnotes throughout the Consolidated Financial Statements herein.

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**WhiteHawk Income Corporation** 

**Restated Consolidated Balance Sheet** 

(amounts in thousands, except for par value and share amounts)

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **As Previously Reported** | **Adjustments** | **As Restated** |
|  **Assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 12848 | (2672) | 10176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1148 | 262 | 1410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 48334 | (2410) | 45924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas and oil mineral interests, net - successful efforts method | 461511 | (925) | 460586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $510473 | $(3335) | $507138 |
|  **Liabilities, mezzanine equity and shareholders' equity:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 22109 | (780) | 21329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 271502 | (780) | 270722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (12591) | (2555) | (15146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 211309 | (2555) | 208754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, mezzanine equity and shareholders' equity | $510473 | $(3335) | $507138 |

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**WhiteHawk Income Corporation** 

**Restated Consolidated Statements of Operations** 

(amounts in thousands, except per share amounts)

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| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **As Previously Reported** | **Adjustments** | **As Restated** |
|  **Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $55691 | $(5616) | $50075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 73211 | (5616) | 67595 |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9274 | 692 | 9966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 26948 | (2711) | 24237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 52807 | (2019) | 50788 |
|  **Operating income (loss)** | 20404 | (3597) | 16807 |
|  **Income (loss) before income taxes** | (2628) | (3597) | (6225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (1598) | (1042) | (2640) |
|  **Net income (loss)** | $(1030) | $(2555) | $(3585) |
|  **Earnings(loss) per common share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | $(1.00) | $(0.30) | $(1.30) |
|  **Weighted average number of shares outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | 8378 |  | 8378 |

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**WhiteHawk Income Corporation** 

**Restated Consolidated Statement of Cash Flows** 

(amounts in thousands)

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **As Previously Reported** | **Adjustments** | **As Restated** |
|  Cash flow from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(1030) | $(2555) | $(3585) |
| &nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 26948 | (2711) | 24237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (2728) | (780) | (3508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities (net of assets and liabilities acquired) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (3235) | 2673 | (562) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 411 | (262) | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 17212 | (3635) | 13577 |
|  Cash flows from investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of oil and gas properties, net of post-close adjustments | (118977) | 3635 | (115342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (313593) | 3635 | (309958) |
|  Cash flows from financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 320040 |  | 320040 |
|  Net increase (decrease) in cash and cash equivalents | 23659 |  | 23659 |
|  Cash and cash equivalents, beginning of period | 5330 |  | 5330 |
|  Cash and cash equivalents, end of period | $28989 | $— | $28989 |

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**Note 4—PHX Merger** 

In June 2025, the Company completed the acquisition of certain natural gas and oil mineral interests in the Haynesville, SCOOP/STACK and other basins from PHX pursuant to the Merger Agreement. At closing, Merger Parent completed the acquisition of PHX in an all-cash transaction of approximately $194.8 million plus assumed liabilities whereby PHX became a wholly owned subsidiary of Merger Parent, a wholly owned subsidiary of WhiteHawk.

Under the terms of the Merger Agreement, at closing PHX stockholders received $4.35 in cash, net to the holder thereof, without interest thereon and subject to any applicable tax withholding, for each share of PHX common stock owned.

The PHX Merger was accounted for as a business combination using the acquisition method, and therefore, the acquired interests were recorded based on the fair value of the total assets acquired and liabilities assumed on the acquisition date. The Company completed the determination of the fair value attributable to the identifiable assets acquired and liabilities assumed based on the fair value at the acquisition date. The purchase price allocation was finalized during the year ended December 31, 2025.

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The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed on June 23, 2025, including any measurement period adjustments (in thousands):

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| | |
|:---|:---|
|  | **December 31,<br>2025** |
|  Assets acquired: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 5577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas mineral interests, net | 214307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other property and equipment, net | 475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | $222420 |
|  Liabilities acquired: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term derivative liability | 598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 24837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term derivative liability | 558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | $27657 |
|  Net assets acquired | $194763 |

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Transaction costs associated with the PHX Merger incurred for the year ended December 31, 2025 was $7.4 million. These costs, which are comprised primarily of advisory, legal and other professional and consulting fees, are included in general and administrative expense on our consolidated statement of operations.

The results of PHX's operations have been included in our consolidated financial statements since the June 23, 2025 acquisition date. The amount of revenue and direct operating expense resulting from the acquisition included in our consolidated statement of operations from June 23, 2025 through December 31, 2025 was approximately $14.7 million and $1.2 million, respectively.

***Pro Forma Financial Information (unaudited)***

The unaudited pro forma information for the years ended December 31, 2025 and 2024, gives effect to the PHX Merger as if it had occurred on January 1, 2024 (in thousands, except per share amounts):

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| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31, 2025** | **December 31, 2024** |
|  Total revenues | $84153 | $44021 |
|  Pro forma net income (loss) | $2753 | $(9239) |
|  Net income (loss) per share: |  |  |
|  Basic and diluted | $(0.27) | $(3.34) |

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The unaudited pro forma financial information is for informational purposes only and is not intended to represent or to be indicative of the combined results of operations that the Company would have reported had the PHX Merger been completed as of January 1, 2024 and should not be taken as indicative of the Company's future combined results of income. The actual results may differ significantly from that reflected in the unaudited pro forma financial information for a number of reasons, including, but not limited to, differences in assumptions used to prepare the unaudited pro forma financial information and actual results.

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**Note 5—Commodity Derivative Financial Instruments** 

The Company's ongoing operations expose it to changes in the market price for natural gas assets. To mitigate the inherent commodity price risk associated with its operations, the Company periodically uses natural gas commodity derivative instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company enters into natural gas derivative contracts that contain netting arrangements with each counterparty. The Company does not enter into derivative instruments for speculative purposes.

As of December 31, 2025, the Company's open derivative contracts consisted of fixed-price swap natural gas contracts and oil contracts as well as natural gas costless collar contracts. A fixed-price swap contract between the Company and a counterparty specifies a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. A costless collar contract between the Company and the counterparty specifies a floor and a ceiling commodity price over a specified period for a contracted volume. The Company has not designated any of its contracts as fair value or cash flow derivatives. Accordingly, the changes in fair value of the contracts are included in the consolidated statements of operations in the period of the change. All derivative gains and losses from the Company's derivative contracts have been recognized in revenue in the Company's accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in the Company's accompanying consolidated balance sheets as of December 31, 2025 and 2024.

The Company's oil transactions are settled based upon the average daily prices for the calendar month of the contract period and its natural gas contracts are settled based upon the last day settlement of the first nearby month futures contract of the contract period. Settlement for oil derivative contracts occurs in the succeeding month and natural gas derivative contracts are settled in the production month.

The Company's derivative contracts expose it to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of the Company's commodity derivative assets. While the Company does not require contract counterparties to post collateral, the Company does evaluate the credit standing on each counterparty as deemed appropriate. The evaluation includes reviewing a counterparty's credit rating and latest financial information.

The Company utilizes the market approach in determining the fair value of its derivative positions by using either Henry Hub, Texas Eastern Transmission Company Market Zone 2 ("TETCO M2") or West Texas Intermediate ("WTI") published market prices, independent broker pricing data or broker/dealer valuations. Over-the-counter derivatives with Henry Hub, TETCO M2 or WTI based prices are considered Level 2 due to the impact of counterparty credit risk. The Company's derivatives are classified within Level 2.

The table below summarizes the fair values and classifications of the Company's derivative instruments as of December 31, 2025, and 2024 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| <br>**Classification** | <br>**Balance Sheet Location** | **Gross Fair<br>Value** | **Effect of<br>Netting** | **Net Carrying<br>Value** |
|  **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current asset | Other current assets | $9557 | $(4208) | $5349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term asset | Other assets | 5990 | (5990) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets |  | $15547 | $(10198) | $5349 |
|  **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current liability | Other current liabilities | $4208 | $(4208) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term liability | Other non-current liabilities | 10659 | (5990) | 4669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | $14867 | $(10198) | $4669 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**Classification** | <br>**Balance Sheet Location** | **Gross Fair<br>Value** | **Effect of<br>Netting** | **Net Carrying<br>Value** |
|  **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current asset | Other current assets | $2080 | $(1927) | $153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term asset | Other assets | 1882 | (1882) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets |  | $3962 | $(3809) | $153 |
|  **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liability | Other current liabilities | $1927 | $(1927) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term liability | Other non-current liabilities | 8321 | (1882) | 6439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | $10248 | $(3809) | $6439 |

---

Changes in the fair values of the Company's derivative instruments are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the years ended December 31, 2025, and 2024 (in thousands):

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| | | |
|:---|:---|:---|
|  | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  Unrealized gain (loss) of open non-hedge derivative instruments | $8121 | $(13134) |
|  Realized gain (loss) on settlement of non-hedge derivative instruments | 8527 | 8716 |
|  Gain (loss) on commodity derivative instruments | $16648 | $(4418) |

---

The Company had the following open derivative contracts for as of December 31, 2025:

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| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(MMBtu)** | **Weighted Average<br>Price<br>(Per MMBtu)** |
|  **Natural Gas Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 4428000 | $4.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 4920000 | $4.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 4896000 | $4.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 5379000 | $4.07 |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 5092000 | $3.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 4938000 | $3.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 4990000 | $3.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 5025000 | $3.85 |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 4374000 | $3.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 3157000 | $3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 3164000 | $3.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 3149000 | $3.66 |
| 2029 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 2273000 | $3.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 533000 | $3.38 |

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| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(MMBtu)** |  |
|  **Natural Gas TETCO M2 Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 1959000 | $(0.45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 1958000 | $(0.81) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 1962000 | $(1.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 1979000 | $(1.04) |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 2035000 | $(0.48) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 1857000 | $(0.75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 1872000 | $(0.99) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 1886000 | $(1.04) |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 1551000 | $(0.46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 667000 | $(0.70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 667000 | $(0.98) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 675000 | $(0.94) |
| 2029 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 547000 | $(0.43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 291000 | $(0.61) |

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| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(Bbls)** | **Weighted Average<br>Price<br>(Per MMBtu)** |
|  **WTI Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 21000 | $64.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 20000 | $62.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 19000 | $60.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 17000 | $59.50 |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 16000 | $59.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 16000 | $59.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 15000 | $59.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 14000 | $59.50 |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 14000 | $59.50 |

---

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| | | | |
|:---|:---|:---|:---|
| **Period and Type of Contract** | **Volume (MMBtu)** | **Weighted Average<br>Floor Price (Per MMBtu)** | **Weighted Average<br>Ceiling Price (Per MMBtu)** |
|  **Natural Gas Collar Contracts:** |  |  |  |
| 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 720000 | $3.50 | $4.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 225000 | $3.00 | $3.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 300000 | $3.00 | $3.60 |

---

**Note 6—Fair Value Measurements** 

The Company's ongoing operations expose it to changes in the market price for natural gas minerals. To mitigate the price risk associated with its operations, the Company uses commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company does not enter into derivative instruments for speculative purposes.

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Derivative instruments are recognized at fair value. If a right of offset exists under master netting arrangements and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the consolidated balance sheets. The Company does not specifically designate derivative instruments as fair value or cash flow derivatives, even though they reduce its exposure to changes in natural gas mineral prices; therefore, gains and losses arising from changes in the fair value of the derivative instruments are recognized on a net basis in the accompanying consolidated statements of operations within gain (loss) on commodity derivative instruments.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value measurements are derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This three-tier hierarchy classifies fair value amounts recognized or disclosed in the consolidated financial statements based on the observability of inputs used to estimate such fair values. The classification within the hierarchy of an asset or liability is determined based on the lowest level input that is significant to the fair value measurement. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, the Company categorizes its assets and liabilities recorded at fair value using this hierarchy.

The amounts reported in the balance sheet for cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair value because of the short-term maturities of these instruments. The Company's commodity derivative instruments are classified within Level 2. The fair values of the Company's commodity derivative instruments are based upon inputs that are either readily available in the public market, such as natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets. The Company's asset retirement obligations are based upon significant unobservable, entity-specific data, such as the Company's own forecasts of future cash outflows for asset retirement and therefore are classified within Level 3.

Certain nonfinancial assets and liabilities, such as assets and liabilities acquired in a business combination, are measured at fair value on a nonrecurring basis on the acquisition date and are subject to fair value adjustments under certain circumstances. Inputs used to determine such fair values are primarily based upon internally developed engineering and geology models, publicly available drilling disclosures, a risk-adjusted discount rate, and publicly available data regarding mineral transactions consummated by other buyers and sellers (Level 3).

Mineral assets not acquired through a business combination are measured at fair value on a nonrecurring basis on the acquisition date. The original purchase price of mineral assets is allocated between proved and unproved properties based on the estimated relative fair values. Inputs used to determine such fair values are primarily based upon internally developed engineering and geology models, publicly available drilling disclosures, a risk-adjusted discount rate, and publicly available data regarding mineral transactions consummated by other buyers and sellers (Level 3).

The following table presents information about the Company's assets that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value as of December 31, 2025 and 2024 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Derivative assets (liabilities) – current | $– $| 5349 | $– $| 5349 |
|  Derivative assets (liabilities) – long-term | – | (4669) | – | (4669) |
|  Total | $– $| 680 | $– $| 680 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Derivative assets (liabilities) – current | $– $| 153 | $– $| 153 |
|  Derivative assets (liabilities) – long-term | – | (6439) | – | (6439) |
|  Total | $– $| (6286) | $– $| (6286) |

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**Note 7—Natural Gas Mineral Interests** 

The Company owns mineral rights across multiple on-shore basins in the United States. The following is a summary of natural gas and oil properties as of December 31, 2025, and 2024 (in thousands):

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| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,<br>2025** | **December 31,<br>2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $327342 | $110001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 176240 | 63932 |
|  Natural gas and oil mineral interests, gross | $503582 | $173933 |
|  Accumulated depletion | (42996) | (18849) |
|  Natural gas and oil mineral interests, net | $460586 | $155084 |

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**Note 8 – Debt** 

The Company's outstanding debt instruments as of December 31, 2025, and 2024, are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Senior notes | $237700 | $65000 |
|  Less: current portion | 6275 | 6500 |
|  Less unamortized debt issuance costs | 3440 | 2216 |
|  Total long-term debt, net of unamortized debt issuance costs and current portion | $227985 | $56284 |

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*Term Loan* 

On August 3, 2023, the Company entered into a term loan agreement that provides for a senior secured term acquisition facility with a maximum amount of $100 million (the "Term Loan"). The Term Loan bore interest on the total outstanding balance at 12% per annum payable quarterly in arrears and is secured by all of the existing and future assets of the Company. The Term Loan was set to mature on December 31, 2025, at which time the full outstanding amount would be payable.

During September 2024, the Company fully repaid the outstanding loan balance. Upon redemption of the Term Loan, the Company recognized a loss on extinguishment of debt of $0.4 million associated with unamortized discount and debt issuance costs.

*Senior Notes* 

On September 17, 2024, the Company issued and sold $65.0 million in senior secured first lien notes ("Senior Notes"). The Senior Notes bears interest on the total outstanding balance at Adjusted Term SOFR plus 6% per annum payable quarterly in arrears and is secured by all of the existing and future assets of the Company.

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The Senior Notes mature on September 17, 2029, at which time the remaining outstanding amount shall be payable. On March 31, 2025, the Company amended the Senior Notes to increase the amount outstanding to $151 million and extended the maturity date to March 31, 2030 ("First Amendment"). On June 23, 2025, the Company amended the Senior Notes to increase the amount outstanding to $251.0 million and extended the maturity date to June 23, 2030 ("Second Amendment"). For the year ended December 31, 2025, the Company recognized a loss on extinguishment of debt of $3.8 million associated with unamortized discount and debt issuance costs related to the original Senior Notes and First Amendment. For the year ended December 31, 2025, the weighted average interest rate related to our borrowings under the Senior Notes was 10.8%. The Senior Notes contain mandatory prepayments of $1.6 million paid in quarterly installments beginning in January 2025. The repayment amount was increased to $6.3 million as a part of the Second Amendment. The mandatory prepayments are subject to a Minimum Liquidity Amount restriction which requires quarterly analysis to determine if prepayment is required. The Senior Notes contain certain covenants pertaining to reporting and financial requirements, as well as negative and affirmative covenants. Proceeds from the Senior Notes were used to extinguish the Term Loan, reduce amounts due to the holders of our Series A Preferred Stock and fund the Marcellus Acquisition. Proceeds from the First Amendment were used to extinguish our Series A Preferred Stock and partially fund the Three Rivers Acquisition. Proceeds from the Second Amendment were used to partially fund the PHX Merger.

Obligations under the Senior Notes are guaranteed by the Company and each of its existing and future, direct and indirect domestic subsidiaries (the "Credit Parties") and are secured by all the present and future assets of the Credit Parties, subject to customary carve-outs.

The Senior Notes contains various affirmative, negative, and financial maintenance covenants. The Senior Notes also contains a minimum hedging covenant. These covenants, among other things, include restrictions on the Company's ability to incur additional indebtedness, acquire and sell assets, create liens, enter into certain lease agreements, make investments, make distributions, and require the maintenance of the financial ratios described below through the Fiscal Quarter ending December 31, 2025. The Company was in compliance with the terms and covenants of the Senior Notes at December 31, 2025.

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| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 4.0 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.00 to 1.00 |

---

Commencing with the Fiscal Quarter ending March 31, 2026, the financial ratios are updated to the following:

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| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 3.5 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.00 to 1.00 |

---

Commencing with the Fiscal Quarter ending March 31, 2027, the financial ratios are updated to the following:

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| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 3.25 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.10 to 1.00 |

---

For the years ended December 31, 2025 and 2024, the Company recognized $0.7 million and $0.1 million, respectively, of interest expense attributable to the amortization of debt issuance costs and debt discounts related to the Senior Notes.

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**Note 9—Preferred Stock** 

As of December 31, 2025 and 2024, there were 0 shares and 19,000 shares, respectively, of Series A preferred stock issued and outstanding. As of December 31, 2025 and 2024, there were 35,524 shares and 9,823 shares, respectively, of Series B Preferred Stock issued and outstanding. As of December 31, 2025 and 2024, there were 0 and 0 shares, respectively, of Series C preferred stock issued and outstanding. The Company is authorized to issue 400,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences described below.

*Series A Preferred Stock* 

In November 2023, the Company sold 44,100 shares of Series A Preferred Stock (the "Series A Preferred Stock") at a price of $1,000.00 per share, resulting in gross proceeds of $44.1 million. The Series A Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series A Preferred Stock shall have no voting rights on any matters which the Company's stockholders are entitled to vote except for consent for the Company to incur any new indebtedness or for the Company to create or issue any capital stock that ranks senior to the Series A Preferred Stock. Dividends on each share of Series A Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 14% per year through November 13, 2024, and a rate of 18% per year subsequently. The Company has the right, but not the obligation, to redeem the Series A Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price"). At the time of redemption, if the Redemption Price does not exceed a return of not less than 8% per Series A Preferred Share ("Minimum Return Payment"), the Company shall be required to pay an additional dividend to satisfy Minimum Return Payment. In the event that the Company has not redeemed all of the Series A Preferred Shares by November 13, 2025, the Company shall not declare, pay or set aside any dividends on shares of common stock. The Company incurred $0.1 million in expenses related to sale of Series A Preferred Stock which were deducted from the carrying value of the Series A Preferred Stock in the Consolidated Statements of Shareholders' Equity. The proceeds from the sale of the Series A Preferred Stock were used to purchase an additional 25% of the Marcellus Assets from the Seller. Since the Series A Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series A Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated balance sheet. The Series A Preferred Stock meets the criteria of a participating security for purposes of calculating earnings per share (See Note 11—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series A Preferred Stock (in thousands, except annual dividend rate):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  March 31, 2025 | 18% | $249 |
|  February 28, 2025 | 18% | $255 |
|  January 31, 2025 | 18% | $290 |
|  December 31, 2024 | 18% | $290 |
|  November 30, 2024 | 18% | $269 |
|  October 31, 2024 | 14% | $237 |
|  September 30, 2024 | 14% | $316 |
|  August 31, 2024 | 14% | $403 |
|  July 31, 2024 | 14% | $434 |

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  June 30, 2024 | 14% | $431 |
|  May 31, 2024 | 14% | $458 |
|  April 30, 2024 | 14% | $460 |
|  March 31, 2024 | 14% | $500 |
|  February 29, 2024 | 14% | $489 |
|  January 31, 2024 | 14% | $523 |

---

In March 2025, the Company's Series A Preferred Stock was extinguished with proceeds raised from the Company's Series C Preferred Stock (as defined below).

*Series B Preferred Stock* 

In February 2024, the Company authorized $50.0 million of its Series B 10% Redeemable Preferred Share class ("Series B Preferred Stock"). Through December 31, 2025, the Company has closed on approximately $22.3 million of net proceeds from the issuance of the Series B Preferred Stock. The Series B Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series B Preferred Stock shall have no voting rights. Dividends on each share of Series B Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 10% per year. The Company has the right, but not the obligation, to redeem the Series B Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price"). Through December 31, 2025, Company incurred $2.6 million in expenses related to sale of Series B Preferred Stock which were deducted from the carrying value of the Series B Preferred Stock in the Consolidated Statements of Shareholders' Equity. The net proceeds from issuance of the Series B Preferred Stock will be utilized to redeem the Company's Series A Preferred Stock. Since the Series B Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series B Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated balance sheet. The Series B Preferred Stock meets the criteria of a participating security for purposes of calculating earnings per share (See Note 11—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series B Preferred Stock (in thousands, except annual dividend rate):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  December 31, 2025 | 10% | $282 |
|  November 30, 2025 | 10% | $256 |
|  October 31, 2025 | 10% | $231 |
|  September 30, 2025 | 10% | $201 |
|  August 31, 2025 | 10% | $179 |
|  July 31, 2025 | 10% | $159 |
|  June 30, 2025 | 10% | $150 |
|  May 31, 2025 | 10% | $138 |
|  April 30, 2025 | 10% | $125 |
|  March 31, 2025 | 10% | $111 |

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  February 28, 2025 | 10% | $95 |
|  January 31, 2025 | 10% | $85 |
|  December 31, 2024 | 10% | $69 |
|  November 30, 2024 | 10% | $64 |
|  October 31, 2024 | 10% | $58 |
|  September 30, 2024 | 10% | $49 |
|  August 31, 2024 | 10% | $40 |
|  July 31, 2024 | 10% | $31 |
|  June 30, 2024 | 10% | $24 |
|  May 31, 2024 | 10% | $19 |
|  April 30, 2024 | 10% | $13 |
|  March 31, 2024 | 10% | $2 |

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*Series C Preferred Stock* 

In March 2025, the Company sold 56,000 shares of Series C Preferred Stock (the "Series C Preferred Stock") at a price of $1,000.00 per share, resulting in gross proceeds of $56 million. The Series C Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series C Preferred Stock shall have no voting rights on any matters which the Company's stockholders are entitled to vote except for consent for the Company to incur any new indebtedness or for the Company to create or issue any capital stock that ranks senior to the Series C Preferred Stock. Dividends on each share of Series C Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 14% per year through December 31, 2026, and a rate of 18% per year subsequently. The Company has the right, but not the obligation, to redeem the Series C Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price – Series C"). At the time of redemption, if the Redemption Price – Series C does not exceed a return of not less than 8% per Series C Preferred Share ("Minimum Return Payment – Series C"), the Company shall be required to pay an additional dividend to satisfy Minimum Return Payment – Series C. In the event that the Company has not redeemed all of the Series C Preferred Shares by December 31, 2027, the Company shall not declare, pay or set aside any dividends on shares of common stock. The proceeds from the sale of the Series C Preferred Stock were used to purchase an additional 50% of the Marcellus Assets from the Seller. Since the Series C Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series C Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated statement of changes in mezzanine equity and shareholders' equity. The Series C Preferred Stock meets the criteria of participating security for purposes of calculating earnings per share (See Note 11—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series C Preferred Stock (in thousands):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  December 31, 2025 | 14% | $526 |
|  November 30, 2025 | 14% | $193 |
|  October 31, 2025 | 14% | $200 |

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  September 30, 2025 | 14% | $322 |
|  August 31, 2025 | 14% | $533 |
|  July 31, 2025 | 14% | $666 |
|  June 30, 2025 | 14% | $644 |
|  May 31, 2025 | 14% | $666 |
|  April 30, 2025 | 14% | $644 |
|  March 31, 2025 | 14% | $86 |

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In December 2025, the Company's Series C Preferred Stock was extinguished with proceeds raised from the Company's common stock.

**Note 10—Shareholders' Equity and Dividends** 

*Class A, T, and I Common Stock* – As of December 31, 2025, there were 6,518,383 shares of Class A Common Stock issued and outstanding, 66,830 shares of Class T Common Stock issued and outstanding, and 8,050,883 shares of Class I Common Stock issued and outstanding. Holders of the Company's Class A, T and I Common Stock are entitled to one vote for each share. The Company is authorized to issue 7,000,000 shares, 100,000 shares and 9,100,000 shares of Class A, T and I Common Stock, respectively, each with a par value of $0.0001 per share. The rights and privileges of the Class A,T and I Common Stock are the same, the primary difference between each class of common stock is selling commissions and placement agent fees.

***Cash Dividends***

The table below summarizes the monthly dividends related to the Company's common stock through December 31, 2025 (in thousands, except per share data):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month Ended** | **Total<br>Monthly<br>Dividend<br>Per Common<br>Share** | **Total<br>Cash<br>Dividend** | **Payment Date** | **Stockholders<br>Record Date** |
|  December 31, 2025 | $0.1562 | $2286 | February 16, 2026 | January 1, 2026 |
|  November 30, 2025 | $0.1562 | $2034 | January 15, 2026 | December 1, 2025 |
|  October 31, 2025 | $0.1562 | $2019 | December 15, 2025 | November 3, 2025 |
|  September 30, 2025 | $0.1562 | $2004 | November 14, 2025 | October 2, 2025 |
|  August 31, 2025 | $0.1562 | $1670 | October 15, 2025 | September 2, 2025 |
|  July 31, 2025 | $0.1562 | $1557 | September 15, 2025 | August 1, 2025 |
|  June 30, 2025 | $0.1562 | $1447 | August 15, 2025 | July 1, 2025 |
|  May 31, 2025 | $0.1562 | $804 | July 15, 2025 | June 1, 2025 |
|  April 30, 2025 | $0.1562 | $766 | June 15, 2025 | May 1, 2025 |
|  March 31, 2025 | $0.1562 | $750 | May 15, 2025 | April 1, 2025 |
|  February 28, 2025 | $0.1562 | $731 | April 15, 2025 | March 1, 2025 |
|  January 31, 2025 | $0.1562 | $721 | March 15, 2025 | February 1, 2025 |
|  December 31, 2024 | $0.1562 | $717 | February 14, 2025 | January 1, 2025 |
|  November 30, 2024 | $0.1562 | $706 | January 15, 2025 | December 2, 2024 |
|  October 31, 2024 | $0.1562 | $699 | December 16, 2024 | November 1, 2024 |
|  September 30, 2024 | $0.1562 | $695 | November 15, 2024 | October 1, 2024 |
|  August 31, 2024 | $0.1562 | $691 | October 15, 2024 | September 2, 2024 |
|  July 31, 2024 | $0.1562 | $685 | September 16, 2024 | August 1, 2024 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month Ended** | **Total<br>Monthly<br>Dividend<br>Per Common<br>Share** | **Total<br>Cash<br>Dividend** | **Payment Date** | **Stockholders<br>Record Date** |
|  June 30, 2024 | $0.1562 | $675 | August 15, 2024 | July 1, 2024 |
|  May 31, 2024 | $0.1562 | $670 | July 15, 2024 | June 3, 2024 |
|  April 30, 2024 | $0.1562 | $666 | June 14, 2024 | May 1, 2024 |
|  March 31, 2024 | $0.1562 | $660 | May 15, 2024 | April 1, 2024 |
|  February 29, 2024 | $0.1562 | $657 | April 15, 2024 | March 4, 2024 |
|  January 31, 2024 | $0.1562 | $653 | March 15, 2024 | February 2, 2024 |

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On October 1, 2025, all record holders of WhiteHawk common stock as of September 30, 2025, received a stock dividend equivalent to one additional share for each ten shares currently held, calculated to the number of whole shares. On January 1, 2026, all record holders of WhiteHawk common stock as of December 31, 2025, received a stock dividend equivalent to one additional share for each ten shares currently held, calculated to the number of whole shares.

In connection with the 2025 stock dividends discussed above, the WHIC Manager (defined below) received 358,893 restricted shares related to its dividend incentive fee with a total value of $8.2 million. Fair value was determined using the offering price of the Series I Common Stock. The restricted shares issued to the WHIC Manager shall vest and cease to be restricted on the earlier of (i) the occurrence of a Company Liquidity Event and (ii) January 1, 2031. The dividend incentive fee will be accounted for as stock compensation expense on the Company's consolidated statement of operating income and cash flows over the vesting period. All share amounts shown in the Company's financial statements are presented pro forma for the stock dividend.

**Note 11—Earnings Per Share** 

Earnings per share is computed using the two-class method. The two-class method determines earnings per share of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Participating securities represent preferred stock in which the holders have non-forfeitable rights to receive dividends. Net Income (loss) attributable to common shareholders is determined by subtracting earnings and dividends attributable to the various classes of preferred stock, as well as earnings and dividends attributed to restricted share units, from net income.

The following table sets forth the calculation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  **Numerator:** |  |  |
|  Net income (loss) - basic and diluted | $(3585) | $(11561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Earnings allocated to participating securities | (7341) | (5266) |
|  Net income (loss) attributable to common stockholders - basic and diluted | $(10926) | $(16827) |
|  **Denominator:** |  |  |
|  Weighted average shares outstanding - basic and diluted | 8378 | 4340 |
|  Net income (loss) per common share - basic and diluted | $(1.30) | $(3.88) |

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The Company had the following shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per share in future periods:

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  Series A Preferred Stock |  | 19000 |
|  Series B Preferred Stock | 35524 | 9823 |
|  Restricted stock | 358893 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 394417 | 28823 |

---

**Note 12—Income Taxes** 

The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and other carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized.

For the years ended December 31, 2025 and 2024, the Company recorded an income tax benefit of $2.6 million and $1.6 million, respectively.

As of December 31, 2025 and 2024, the Company had $21.3 million and $0.0 million, respectively, of net deferred tax liabilities net of valuation allowances. The Company acquired $24.8 million of net deferred tax liabilities as a part of the PHX Merger. These net deferred tax liabilities relate to natural gas assets and other temporary items where the tax basis differs from the GAAP carrying amounts.

As of December 31, 2025, the Company had $11.9 million in federal net operating loss carryforwards and $6.3 million in state net operating loss carryforwards for income tax purposes. The Company acquired all of the federal and state net operating loss carryforwards as part of the acquisition of PHX Minerals Inc. in 2025. As of the date of the financial statements, no limitations were identified that would limit the Company's ability to utilize the net operating losses in future years. In the event that the Company experiences another ownership change within the meaning of Section 382 of the Internal Revenue Code, our ability to utilize net operating losses and other tax attributes may be limited.

As of December 31, 2025, the Company determined it is more likely than not that it will realize our deferred tax assets, with the exception of a small valuation allowance on state net operating loss carryforwards that are expected to expire before utilization.

At December 31, 2025 and 2024, the Company had prepaid income taxes of $0.4 million and $0.1 million, respectively. The prepaid income taxes are included in other current assets on the consolidated balance sheets.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of December 31, 2025 and 2024. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

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The components of the provision for income taxes for the years ended December 31, 2025 and 2024 is as follows:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands)** | **(in thousands)** |
|  Current income tax provision: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $470 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 398 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current income tax provision | 868 |  |
|  Deferred income tax provision: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (3042) | (1069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | (466) | (518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred income tax provision (benefit) | (3508) | (1587) |
|  Total provision (benefit) for income taxes | $(2640) | $(1587) |

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands, except effective tax rate)** | **(in thousands, except effective tax rate)** |
|  Income (loss) before income taxes | $(6225) | $(13148) |
|  Income taxes at U.S. statutory rate | (1307) | (2761) |
|  State taxes, net of federal benefit | 72 | (525) |
|  Federal and state valuation allowance | (1842) | 1853 |
|  Federal and state true-ups | 160 |  |
|  Non-deductible acquisition costs | 445 |  |
|  Percentage depletion | (144) |  |
|  Other | (24) | (154) |
|  Income tax provision expense (benefit) | (2640) | (1587) |
|  Effective tax rate | 42.4% | 12.1% |

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands)** | **(in thousands)** |
|  Deferred tax assets: |  |  |
|  Unrealized (gain) loss on unrealized commodity derivatives | $— | $1539 |
|  Cost depletion |  | 312 |
|  Statutory depletion carryover | 606 |  |
|  Federal net operating loss carryforward | 2513 |  |
|  State net operating loss carryforward | 251 |  |
|  Interest expense limitation/carryover | 3357 |  |
|  Other | 197 | 2 |
|  Total deferred tax assets | 6924 | 1853 |

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands)** | **(in thousands)** |
|  Deferred tax liabilities: |  |  |
|  Financial basis of natural gas and oil mineral interests in excess of tax basis | $27922 | $— |
|  Unrealized (gain) loss on commodity derivatives | 169 |  |
|  Other | 152 |  |
|  Total deferred tax liabilities | 28243 |  |
|  Valuation allowance | (10) | (1853) |
|  Net deferred tax assets (liabilities) | $(21329) | $— |

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**Note 13—Related Party Transactions** 

*WhiteHawk Management* 

The Company is managed by WhiteHawk Minerals, LLC, a Delaware limited liability company (the "WHM"), along with its wholly-owned subsidiary, WhiteHawk Management, LLC (collectively, "WHIC Manager")

With the oversight of the Board, the WHIC Manager is responsible for the investment management function on behalf of WhiteHawk pursuant to the management agreement ("WHIC Management Agreement"). The WHIC Manager is responsible for managing the day-to-day operations of WhiteHawk, including investigating, analyzing, structuring, and negotiating potential investments, monitoring the performance of the assets, and making determinations.

The WHIC Management Agreement may be terminated at any time, without the payment of any penalty by either the Company or the WHIC Manager for "Cause" (as defined in the WHIC Management Agreement) upon thirty (30) days' prior written notice of the incident giving rise to the Cause and an opportunity to cure the Cause referenced in such notice prior to termination. The WHIC Management Agreement may be terminated at any time, without Cause and without the payment of any penalty: (i) by WhiteHawk upon sixty (60) days' prior written notice to the WHIC Manager; or (ii) by the WHIC Manager upon not less than one hundred and twenty (120) days' prior written notice to WhiteHawk.

Under the WHIC Management Agreement, WHIC Manager will earn a monthly asset management fee (the "Base Management Fee"), a dividend incentive fee (the "Dividend Incentive Fee"), and an incentive fee upon a Liquidity Event for the Company's assets (the "Liquidity Incentive Fee").

The Base Management Fee is calculated at an annual rate of one and one-half percent (1.5%) of WhiteHawk's total assets, which will initially be based on the total cost of all WhiteHawk's assets. The Base Management Fee is payable monthly in arrears and is calculated based on the arithmetic average value of our total assets as of the last day of (1) a calendar month and (2) the immediately preceding calendar month.

The Dividend Incentive Fee entitles the WHIC Manager to earn a fee of 12.5% of all distributions, including all dividends and dividend incentive fees, earned and/or paid out during a calendar month. If in any calendar month the WHIC Manager elects to defer receipt of its Dividend Incentive Fee to a future month (the "Manager Fee Deferral"), then the WHIC Manager will still earn its fee in any calendar month where dividends are paid to the shareholders. Any remaining cash flow of the Company after all base dividends, bonus dividends, and Dividend Incentive Fees have been paid in any given calendar month shall first be used to reimburse the WHIC Manager for any prior period cash flow needs that it has funded or Dividend Incentive Fees that it has earned but not yet been paid, and then shall be retained by WhiteHawk, to be used at the Company's discretion for additional investment purposes.

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The Liquidity Incentive Fee entitles the WHIC Manager to receive a portion of the proceeds from a WhiteHawk liquidity event after shareholders have received 100% of their initial invested capital plus a 7.5% annualized non-compounded return (the "Hurdle"). The WHIC Manager will receive 12.5% of all amounts above the Hurdle.

During the years ended December 31, 2025, and 2024, the Company paid $10.0 million and $4.7 million, respectively, to the WHIC Manager related to its Base Management Fee and Dividend Incentive Fee, respectively. This is recorded in the management fee expense on the consolidated statements of operations. In addition, the WHIC Manager received restricted stock with a fair value of $8.2 million during the year ended December 31, 2025. The restricted stock issued to the WHIC Manager shall vest and cease to be restricted on the earlier of (i) the occurrence of a Company Liquidity Event and (ii) January 1, 2031.

*Preferred Capital Securities* 

Jeff Smith, our President and director, is the chief executive officer and co-owner of Preferred Capital Securities, LLC ("PCS"). We entered into a dealer manager agreement, dated as of March 18, 2022 (the "Common Stock DMA"), with PCS. Pursuant to the Common Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with our continuing offer (the "Private Offering") to accredited investors of our Class A Common Stock, Class I Common Stock, and Class T Common Stock, pursuant to a confidential private placement memorandum (the "Memorandum"). Under the agreement, PCS has agreed to find, on a best efforts basis, purchasers for our Class A, Class I and Class T Common Stock for cash through broker-dealers or registered investment advisors, all of which are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"), or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Common Stock DMA, PCS is entitled to a dealer manager fee of 2.5% of the price of Class A and Class T Common Stock sold in the Private Offering. In addition, we agreed to pay PCS a selling commission equal to 6.0% of the price of Class A Common Stock, and 4.0% of Class T Common Stock sold in the Private Offering. Additionally, a trail commission equal to 0.7% annually will be paid on Class T Common Stock subject to the restrictions and provisions as described in the Memorandum. For the years ended December 31, 2025 and 2024 we paid PCS $5.2 million and $0.7 million, respectively, in compensation for its services under the Dealer Manager Agreement.

We also entered into a dealer manager agreement, dated as of February 2, 2024 (the "Preferred Stock DMA" and, together with the Common Stock DMA, the "DMAs"), with PCS. Pursuant to the Preferred Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with the continuing Private Offering to accredited investors of shares of our Series B preferred common stock, $0.0001 par value (our "Series B Preferred Shares") pursuant to the Memorandum. Under the Preferred Stock DMA, PCS has agreed to find, on a best efforts basis, purchasers for our Series B Preferred Shares for cash through broker-dealers or registered investment advisors, all of which are members of FINRA or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Preferred Stock DMA, PCS is entitled to a dealer manager fee of up to 3.0% of the price per Series B Preferred Share sold in the Private Offering. In addition, we agreed to pay PCS a selling commission of up to 7.0% of the price per Series B Preferred Share sold in the Private Offering. For the years ended December 31, 2025 and 2024, we paid PCS $1.6 million and $0.8 million, respectively, in compensation for its services under the Preferred Stock DMA.

Pursuant to each DMA, no selling commissions or dealer manager fees will be paid in connection with the common stock or preferred stock, as applicable, sold to WhiteHawk Management, its management and their family members, employees and their family members and WhiteHawk Management's other affiliates. As president of WhiteHawk Management, Mr. Smith is not entitled to any selling commissions or dealer management fees under each DMA.

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*PhiCap Advisors LLC* 

PhiCap Advisors LLC ("PhiCap") provides leadership and capital solutions support to the Company through a consulting agreement. In addition, PhiCap owns approximately 20% of WhiteHawk Energy LLC ("WhiteHawk Energy"), which in turns owns 75% of WhiteHawk Minerals. For the year ended December 31, 2025, the Company paid PhiCap $1.3 million and $0.3 million, respectively, in consulting fees and reimbursements. During the year ended December 31, 2024, the Company paid $0.5 million and $0.1 million, respectively in consulting fees and reimbursements. Approximately $0.1 million of the consulting fees paid to PhiCap are recorded in Additional Paid In Capital due to PhiCap's fund raising support and the remainder is recorded in general and administrative expense on the consolidated statement of operations.

*WhiteHawk Related Party Equity Transactions* 

Members and employees of the WHIC Manager contributed $2.6 million of the $44.1 million of the proceeds raised through the sale of the Series A Preferred Stock. Members of the WHIC Manager received dividends of less than $0.1 million and $0.3 million, respectively, during the years ended December 31, 2025, and 2024 from the Series A Preferred Stock.

Members and employees of the WHIC Manager contributed $2.6 million of the $56.0 million of the proceeds raised through the sale of the Series C Preferred Stock. Members of the WHIC Manager received dividends of $0.8 million and $0.0 million during the years ended December 31, 2025, and 2024 from the Series C Preferred Stock.

**Note 14—Commitments and Contingencies** 

From time to time, the Company may be involved in various legal proceedings, lawsuits, and other claims in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Management does not believe that the resolution of these matters will have a material adverse impact on our financial condition, cash flows or results of operations.

**Note 15—Segment** 

WhiteHawk's chief operating decision maker ("CODM") is the Chief Executive Officer ("CEO"). The CEO manages the business as a whole and assesses financial performance as a single enterprise and not on an area-by-area basis. Therefore, the Company identified one reportable segment: natural gas & oil minerals. The natural gas and oil minerals segment acquires, owns and manages high-quality mineral and royalty interests across premium basins in the United States and leases its mineral interests to E&P operators. These leases permit E&P operators to explore for and produce oil, natural gas and natural gas liquids from WhiteHawk's properties and entitle the Company to receive a percentage of the proceeds from the sales of these commodities. The accounting policies of the oil & natural gas minerals segment are the same as those described in the summary of significant accounting policies. The CODM uses net income from operations generated from segment assets in deciding whether to reinvest profits into the oil & natural gas minerals segment or into other parts of the entity, pay dividends to holders of our common and preferred stock, or make payments on our outstanding debt. The CODM assesses performance of the oil & natural gas minerals segment and decides how to allocate resources based on net income and net income from operations that is reported on the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets. The CODM evaluates significant expenses and assets based off the consolidated financial statements and does not further disaggregate expenses or assets in deciding how to allocate resources and assess performance. Since the Company operates as a single reporting segment, all required segment reporting disclosures can be found in the consolidated financial statements.

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**Note 16—Subsequent Events** 

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the consolidated financial statements were issued.

*Dividends Declared* 

On August 13, 2025, the Company approved the following cash dividends:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of December 1, 2025, payable on January 15, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of January 2, 2026, payable on February 13, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of February 2, 2026, payable on March 13, 2026;

On February 10, 2026, the Company approved the following cash dividends:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of March 2, 2026, payable on April 15, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of April 1, 2026, payable on May 15, 2026;

*Haynesville acquisition* 

In March 2026, the Company entered into a definitive purchase and sale agreement to acquire natural gas mineral and royalty interests primarily located in the Haynesville Shale in Louisiana and East Texas ("Haynesville Assets") for approximately $33.0 million. The transaction is expected to close in April 2026.

In March 2026, the Company authorized 37,780 shares of its Series D Preferred Stock (the "Series D Preferred Stock") at a price of $1,000.00 per share. Through the date the financial statements are available to be issued, the Company has closed on $36.3 million of gross proceeds from the issuance of the Series D Preferred Stock. The Company plans to use the proceeds raised with the Series D Preferred Stock to purchase the Haynesville Assets.

**Note 17—Supplemental Information on Natural gas mineral Operations (Unaudited)** 

The Company's natural gas mineral reserves are attributable solely to properties within the United States.

***Capitalized natural gas mineral costs***

Aggregate capitalized costs related to natural gas mineral production activities with applicable accumulated depreciation, depletion and amortization are as follows:

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| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Proved royalty interest | $327342 | $110001 |
|  Unproved royalty interests | 176240 | 63932 |
|  Accumulated amortization | (42996) | (18849) |
|  Net royalty interests in oil and natural gas properties | $460586 | $155084 |

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***Costs incurred in natural gas mineral activities***

Costs incurred in natural gas mineral property acquisitions, exploration and development activities are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Acquisition costs: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $205108 | $17402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 124542 | 12990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $329650 | $30392 |

---

***Results of operations from natural gas mineral producing activities***

The following table sets forth the revenues and expenses related to the production and sale of natural gas mineral. It does not include any interest costs or general and administrative costs and, therefore, is not necessarily indicative of the contribution to the net operating results of the Company's natural gas operations.

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Royalty income | $50075 | $12702 |
|  Depletion | (24237) | (10827) |
|  Income tax (expense) benefit | 2640 | 1587 |
|  Results of operations from natural gas | $28478 | $3462 |

---

***Natural gas mineral Reserves***

Proved natural gas reserve estimates as of December 31, 2025 were prepared by Cawley, Gillespie & Associates, Inc., independent petroleum engineers. Proved natural gas reserve estimates as of December 31, 2024, were prepared by Schaper Energy Consultants, independent petroleum engineers. Proved reserves were estimated in accordance with guidelines established by the SEC, which require that reserve estimates be prepared under existing economic and operating conditions based upon the 12-month unweighted average of the first-day-of-the-month prices.

There are numerous uncertainties inherent in estimating quantities of proved natural gas mineral reserves. Natural gas mineral reserve engineering is a subjective process of estimating underground accumulations of natural gas mineral that cannot be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing and production subsequent to the date of the estimate may justify revision of such estimate. Accordingly, reserve estimates are often different from the quantities of natural gas mineral that are ultimately recovered.

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##### [**Table of Contents**](#toc)
The changes in estimated proved reserves are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Oil<br>(MBbls)** | **Natural Gas<br>(MMcf)** | **Natural Gas<br>Liquids<br>(MBbls)** | **Total<br>(MMcfe)** |
|  **Proved Developed and Undeveloped Reserves:** |  |  |  |  |
|  **As of December 31, 2023** | 18 | 62421 | 582 | 66013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of reserves in place | 12 | 12023 | 416 | 14588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions and discoveries | 11 | 5655 | 43 | 5975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 3 | 8991 | (89) | 8475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (5) | (7371) | (75) | (7838) |
|  **As of December 31, 2024** | 39 | 81719 | 877 | 87213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of reserves in place | 1210 | 101193 | 2338 | 122484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions and discoveries | 196 | 15454 | 286 | 18345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 34 | (4400) | 167 | (3191) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (88) | (16586) | (210) | (18378) |
|  **As of December 31, 2025** | 1391 | 177380 | 3458 | 206473 |
|  **Proved Developed Reserves** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2024 | 23 | 65252 | 701 | 69594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2025 | 1356 | 173231 | 3373 | 201609 |
|  **Proved Undeveloped Reserves:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2024 | 16 | 16469 | 176 | 17619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2025 | 35 | 4149 | 84 | 4864 |

---

Revisions of previous estimates represent changes, either increases or decreases, to prior reserve estimates resulting from new information, which is typically obtained through development drilling and production performance, or from changes in economic factors, including commodity prices, operating expenses, and development costs.

For the year ended December 31, 2025, the Company recognized negative revisions of previous estimates of 3,191 Mmcfe, primarily attributable to changes in development timing. Total extensions of 18,345 Mmcfe during the year were primarily attributable to the drilling of 221 wells and the permitting of 95 wells. Purchases of reserves in place of 122,484 Mmcfe were primarily attributable to the PHX Merger and an additional acquisition in the Marcellus Shale.

During the year ended December 31, 2024, the Company's positive revisions of previous estimates of 8,475 Mmcfe resulted primarily from a change in development timing. The company's total extensions of 5,975 Mmcfe resulted primarily from the drilling of 183 wells. The purchase of reserves in place of 14,588 Mmcfe was due to an acquisition in the Marcellus Shale.

***Standardized Measure of Discounted Cash Flows***

The standardized measure of discounted future net cash flows are based on the unweighted average, first-day-of-the-month price. The projections should not be viewed as realistic estimates of future cash flows, nor should the "standardized measure" be interpreted as representing current value to the Company. Material revisions to estimates of proved reserves may occur in the future; development and production of the reserves may not occur in the periods assumed; actual prices realized are expected to vary significantly from those used; and actual costs may vary.

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##### [**Table of Contents**](#toc)
The following table sets forth the standardized measure of discounted future net cash flows attributable to the Company's proved natural gas mineral reserves as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Future cash inflows | $700567 | $171733 |
|  Future production costs | (109293) | (22608) |
|  Future development costs (capital costs) | (1271) |  |
|  Future income tax expense | (56289) | (24246) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future net cash flows | 533714 | 124879 |
|  10% discount to reflect timing of cash flows | (267388) | (62946) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Standardized measure of discounted cash flows | $266326 | $61933 |

---

In the table below the average first-day-of–the-month price for oil, natural gas and natural gas liquids is presented, all utilized in the computation of future cash inflows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | Unweighted Arithmetic Average<br>First-Day-of-the-Month Prices | Unweighted Arithmetic Average<br>First-Day-of-the-Month Prices |
|  Oil (per Bbl) | $65.34 | $75.48 |
|  Natural gas (per Mcf) | $3.39 | $2.13 |
|  Natural gas liquids (per Bbl) | $25.48 | $29.44 |

---

Principal changes in the standardized measure of discounted future net cash flows attributable to the Company's proved reserves are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Standardized measure of discounted future net cash flows at the beginning of the period | $61933 | $50663 |
|  Net changes in prices and production costs | 44893 | (2491) |
|  Purchase of minerals in place | 195062 | 12081 |
|  Extension and discoveries | 34223 | 4951 |
|  Revisions of previous quantity estimates | (2640) | 7017 |
|  Natural gas and oil produced during the period | (50075) | (12702) |
|  Accretion of discount | 7215 | 5684 |
|  Net changes in income taxes | (17143) | (3301) |
|  Net changes in timing of production and other | (7142) | 31 |
|  Standardized measure of discounted future net cash flows at the end of the period | $266326 | $61933 |

---

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)** 

**THREE MONTHS ENDED MARCH 31, 2026 AND 2025** 

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  **WHITEHAWK INCOME CORPORATION** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Balance Sheets (unaudited)](#fin86452_1011) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Operations (unaudited)](#fin86452_1012) | F-42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Mezzanine Equity and Shareholders' Equity (unaudited)](#fin86452_1013) | F-43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Cash Flows (unaudited)](#fin86452_1014) | F-44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Condensed Consolidated Financial Statements (unaudited)](#fin86452_1015) | F-45 |

---

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONDENSED CONSOLIDATED BALANCE SHEETS** 

**(In thousands, except par value and share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
|  | **(Unaudited)** | |
|  **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $64562 | $28989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 14395 | 10176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term derivative asset | 4279 | 5349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1430 | 1410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 84666 | 45924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas and oil mineral interests, net - successful efforts method | 457480 | 460586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other property and equipment, net | 245 | 275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 2471 | 353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $544862 | $507138 |
|  **Liabilities, mezzanine equity and shareholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $977 | $1177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 1760 | 1158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued dividends | 5430 | 7516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, current portion | 6275 | 6275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 177 | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 14619 | 16302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, net of unamortized debt issuance costs | 221733 | 227985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 21257 | 21329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 76 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term derivative liability | 3204 | 4669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 323 | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 261212 | 270722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (See Note 13) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mezzanine equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred stock, $0.0001 par value; 400,000 shares authorized; 49,038 and 35,524 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively, redemption value $49,038 and $35,524, respectively | 37643 | 27662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series D Preferred stock, $0.0001 par value; 400,000 shares authorized; 37,780 and 0 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively, redemption value $37,780 and $0, respectively | 37030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value; 7,000,000 shares authorized; 6,660,465 and 6,518,383 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class T common stock, $0.0001 par value; 100,000 shares authorized; 67,051 and 66,830 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class I common stock, $0.0001 par value; 9,100,000 shares authorized; 8,161,117 and 8,050,883 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital | 225186 | 223900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (16209) | (15146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 208977 | 208754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, mezzanine equity and shareholders' equity | $544862 | $507138 |

---

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

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** 

**(In thousands, except per share data)** 

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
|  **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $25616 | $8039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | (5309) | (8874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus and other revenue | 517 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 20824 | (833) |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3109 | 891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 2981 | 1423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 9665 | 3199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock based compensation | 483 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 16238 | 5513 |
|  **Operating income (loss)** | 4586 | (6346) |
|  **Other expense:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 5997 | 1747 |
|  **Income (loss) before income taxes** | (1411) | (8093) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (348) |  |
|  **Net income (loss)** | (1063) | (8093) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings allocated to participating securities | (1186) | (1086) |
|  **Net income (loss) attributable to common stockholders** | $(2249) | $(9179) |
|  **Earnings(loss) per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | $(0.15) | $(1.97) |
|  **Weighted average number of shares outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | 14739 | 4652 |

---

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

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY** 

**(In thousands)** 

**(Unaudited)** 

---

| | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** |
|  | **Series A<br>Preferred Stock** | **Series A<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series C<br>Preferred Stock** | **Series C<br>Preferred Stock** | **Series D<br>Preferred Stock** | **Series D<br>Preferred Stock** | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class T<br>Common Stock** | **Class T<br>Common Stock** | **Class I<br>Common Stock** | **Class I<br>Common Stock** | **Additional<br>Paid In<br>Capital** | **Retained<br>Earnings<br>(Accumulated<br>Deficit)** | **Total<br>Shareholders'<br>Equity** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid In<br>Capital** | **Retained<br>Earnings<br>(Accumulated<br>Deficit)** | **Total<br>Shareholders'<br>Equity** |
|  **Balance at December 31, 2024** | 19 | $13308 | 10 | $7917 |  | $— |  | $— | 2635 | $— | 38 | $— | 1918 | $— | $82128 | $(11561) | $70567 |
|  Issuance of common stock |  |  |  |  |  |  |  |  | 113 |  | 6 |  | 89 |  | 4979 |  | 4979 |
|  Issuance of Series B Preferred Stock |  |  | 4 | 4287 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Issuance of Series C Preferred Stock |  |  |  |  | 56 | 56000 |  |  |  |  |  |  |  |  |  |  |  |
|  Redemption of Series A Preferred Stock | (19) | (12514) |  |  |  |  |  |  |  |  |  |  |  |  | (6486) |  | (6486) |
|  Equity issuance costs |  |  |  | (460) |  |  |  |  |  |  |  |  |  |  | (270) |  | (270) |
|  Common stock dividends |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2247) |  | (2247) |
|  Preferred stock dividends |  | (794) |  | (370) |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (8093) | (8093) |
|  **Balance at March 31, 2025** |  | $— | 14 | $11374 | 56 | $56000 |  | $— | 2748 | $— | 44 | $— | 2007 | $— | $78104 | $(19654) | $58450 |
|  **Balance at December 31, 2025** |  | $— | 35 | $27662 |  | $— |  | $— | 6518 | $— | 67 | $— | 8051 | $— | $223900 | $(15146) | $208754 |
|  Issuance of common stock |  |  |  |  |  |  |  |  | 147 |  |  |  | 110 |  | 6133 |  | 6133 |
|  Common stock redemption |  |  |  |  |  |  |  |  | (5) |  |  |  |  |  | (109) |  | (109) |
|  Issuance of Preferred Stock |  |  | 14 | 13105 |  |  | 37 | 37780 |  |  |  |  |  |  |  |  |  |
|  Stock receivable |  |  |  | (1106) |  |  |  | (750) |  |  |  |  |  |  |  |  |  |
|  Equity issuance costs |  |  |  | (1223) |  |  |  |  |  |  |  |  |  |  | (534) |  | (534) |
|  Common stock dividends |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4661) |  | (4662) |
|  Preferred stock dividends |  |  |  | (795) |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Stock based compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 483 |  | 483 |
|  Dividend equivalent rights paid |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (26) |  | (26) |
|  Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1063) | (1063) |
|  **Balance at March 31, 2026** |  | $— | 49 | $37643 |  | $— | 37 | $37030 | 6660 |  | 67 |  | 8161 |  | 225186 | (16209) | 208977 |

---

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

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(In thousands)** 

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
|  Cash flow from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(1063) | $(8093) |
| &nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gain) loss on commodity derivative instruments | (395) | 8413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 9665 | 3199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 483 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 197 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (72) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities (net of assets and liabilities acquired) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (4219) | (5588) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | (20) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (2118) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (200) | 2331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other liabilities | 583 | (681) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 2841 | (230) |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of oil and gas properties, net of post-close adjustments | (6522) | (114756) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (6522) | (114756) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Senior Notes |  | 86000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of Senior Notes | (6275) | (1625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred financing costs | (174) | (1988) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of common stock, net | 5599 | 4709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of Series B preferred stock, net | 10776 | 3826 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of Series C preferred stock, net |  | 56000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of Series D preferred stock, net | 37030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock redemptions | (109) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A Preferred Stock redemptions |  | (19000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series A Preferred Stock |  | (794) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series B Preferred Stock | (924) | (250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to common stock | (6643) | (2144) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend equivalent rights paid | (26) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 39254 | 124734 |
|  Net increase (decrease) in cash and cash equivalents | 35573 | 9748 |
|  Cash and cash equivalents, beginning of period | 28989 | 5330 |
|  Cash and cash equivalents, end of period | $64562 | $15078 |
|  **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $5964 | $1651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $42 | $— |
|  **Non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to common stock holders through common stock issuances pursuant to distribution reimbursement plan | $1133 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock issued but not yet paid | $1856 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in dividends declared but not yet paid | $(2111) | $222 |

---

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

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**WHITEHAWK INCOME CORPORATION** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

**Note 1—Organization and Presentation** 

***Organization and Description of Business***

WhiteHawk Income Corporation (the "Company" or "WhiteHawk") was formed in February 2022 to acquire, own and manage mineral interests with the objective of generating cash flow from operations that can be distributed to shareholders as dividends and reinvested to expand our base of cash flow generating assets. WhiteHawk is governed by a board of directors (the "Board"). The Company's primary investment objective is to provide shareholders with current income with the potential for capital appreciation. The Company's primary business objective is to provide a return to investors by owning and acquiring mineral interests in natural gas resources across the U.S. and distributing a meaningful portion of our cash flow to investors as dividends.

In March 2025, the Company doubled its ownership interests in the natural gas mineral assets of Three Rivers Royalty, LLC (the "Seller") located in southwestern Pennsylvania by purchasing the remaining 50% undivided interest in certain natural gas mineral assets of the Seller for $118.0 million ("Three Rivers Acquisition").

On June 23, 2025, following the completion of the previously announced tender offer, the Company completed the acquisition of PHX Minerals Inc. ("PHX") through a merger pursuant to the Agreement and Plan of Merger ("Merger Agreement"), dated May 8, 2025, by and among WhiteHawk Merger Sub, Inc., Whitehawk Acquisition, Inc. (" Merger Parent") and PHX ("PHX Merger"). Upon completion of the merger, PHX became a wholly owned subsidiary of Merger Parent, a wholly owned subsidiary of the Company. The Company acquired PHX in an all-cash transaction that valued PHX at $4.35 per share, or a total value of approximately $194.8 million, including PHX's net debt.

In March 2026, the Company entered into a definitive purchase and sale agreement to acquire natural gas mineral and royalty interests primarily located in the Haynesville Shale in Louisiana and East Texas ("Haynesville Assets") for approximately $33.0 million. The transaction closed in April 2026.

In addition to our strategic acquisitions of larger, consolidated natural gas mineral packages, we launched a dedicated "ground game" in 2025 that has become an important component of our growth strategy. During the three months ended March 31, 2026, we have completed 11 such transactions totaling approximately $6.5 million. We expect the ground game to remain a component of our acquisition strategy, with the goal of adding scale consistent with our existing portfolio quality.

**Note 2—Summary of Significant Accounting Policies** 

***Basis of Presentation***

The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles ("GAAP") in the U.S. and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In the opinion of management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair statement of these interim statements, have been included. All intercompany balances and transactions are eliminated in consolidation.

The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year or for any other period. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2025, issued on March 31, 2026, except for Note 3, as to which the date is May 6, 2026.

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***Principles of Consolidations***

These consolidated financial statements reflect the financial condition, results of operations, cash flows and changes in shareholders' equity of the Company and its consolidated subsidiaries, WhiteHawk Income Marcellus, LLC, WhiteHawk Income Haynesville, LLC, WhiteHawk Acquisition, LLC, Whitehawk VF, LLC and PHX Minerals LLC for the periods presented. All intercompany balances and transactions are eliminated in consolidation.

***Cash and Cash Equivalents***

Cash and cash equivalents represent unrestricted cash on hand and include all highly liquid investments purchased with a maturity of three months or less and money market funds. The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. The Company has not experienced any significant losses from such investments.

***Use of Estimates***

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities; disclosure of contingent assets and liabilities at the date of the financial statements; the reported amounts of revenues and expenses during the reporting periods; and the quantities and values of proved oil, natural gas and natural gas liquids ("NGL") reserves used in calculating depletion and assessing impairment of natural gas mineral properties. Actual results could differ significantly from these estimates. Significant estimates made by management include the quantities of proved oil, natural gas and NGLs reserves, related present value estimates of future net cash flows therefrom, the carrying value of natural gas mineral properties, and estimates of current and deferred income taxes. Other areas requiring estimation include valuation of commodity derivatives and our revenue accrual. While management believes these estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates and it is reasonably possible these estimates could be revised in the near term, and these revisions could be material.

***Accounts Receivable***

Accounts receivable represents amounts due to the Company, and are uncollateralized, consisting primarily of royalty revenue receivable. Royalty revenue receivable consists of royalties due from operators for oil, natural gas and NGL volumes sold to purchasers. Those purchasers remit payment for production to the operator of the properties and the operator, in turn, remits payment to the Company. Receivables from third parties for which we did not receive actual production information, either due to timing delays or due to the unavailability of data at the time when revenues are recognized, are estimated. The Company routinely reviews outstanding balances, assesses the financial strength of its operators and records a reserve for amounts not expected to be fully recovered, using a current expected credit loss model. The Company writes off receivables when there is information that indicates the debtor is facing significant financial difficulty and there is no possibility of recovery. If any recoveries are made from any accounts previously written off, it will be recognized in income in the year of recovery, in accordance with the Company's accounting policy election. The Company did not record any credit losses for the three months ended March 31, 2026, and 2025.

***Commodity Derivative Financial Instruments***

The Company's ongoing operations expose it to changes in the market price for natural gas minerals. To mitigate the price risk associated with its operations, the Company uses commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company does not enter into derivative instruments for speculative purposes.

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Derivative instruments are recognized at fair value. If a right of offset exists under master netting arrangements and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the consolidated balance sheets. The Company does not specifically designate derivative instruments as fair value or cash flow derivatives, even though they reduce its exposure to changes in natural gas mineral prices; therefore, gains and losses arising from changes in the fair value of the derivative instruments are recognized in revenue on a net basis in the accompanying consolidated statements of operations within gain (loss) on commodity derivative instruments.

***Mineral Interests in Natural Gas Properties***

The Company follows the successful efforts method of accounting for natural gas mineral operations. Under this method, costs to acquire minerals and interests in natural gas mineral properties are capitalized when incurred. Acquisitions of interests of natural gas mineral properties are considered asset acquisitions and are recorded at cost.

Acquisition costs of proven mineral interests are amortized using the units of production method over the life of the property, which is estimated using proven reserves. Acquisition costs of mineral interests on unproved properties, where there are no proven reserves, are not amortized. When the associated exploration stage interests are converted to proven reserves, the cost basis is amortized using the units of production methodology over the life of the property, using proven reserves. For purposes of amortization, interests in natural gas mineral properties are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic condition.

We review and evaluate our mineral interests in natural gas mineral properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Proved natural gas properties are reviewed for impairment when events and circumstances indicate a potential decline in the fair value of such properties below the carrying value, such as a downward revision of the reserve estimates or lower commodity prices. When such events or changes in circumstances occur, we estimate the undiscounted future cash flows expected in connection with the properties and compare such future cash flows to the carrying amounts of the properties to determine if the carrying amounts are recoverable. If the carrying value of the properties is determined to not be recoverable based on the undiscounted cash flows, an impairment charge is recognized by comparing the carrying value to the estimated fair value of the properties. The factors used to determine fair value include, but are not limited to, estimates of proved, probable and possible reserves, future commodity prices, the timing of future production and a discount rate commensurate with the risk reflective of the lives remaining for the respective natural gas properties. There was no such impairment of proved natural gas mineral properties for the three months ended March 31, 2026, or 2025.

Unproved properties are also assessed for impairment periodically on a depletable unit basis when facts and circumstances indicate that the carrying value may not be recoverable, at which point an impairment loss is recognized to the extent the carrying value exceeds the estimated recoverable value. The carrying value of unproved properties, including unleased mineral rights, is determined based on management's assessment of fair value using factors similar to those previously noted for proved properties, as well as geographic and geologic data. There was no impairment of unproved properties for the three months ended March 31, 2026, or 2025.

Upon the sale of a complete depletable unit, the book value thereof, less proceeds or salvage value, is charged to income. Upon the sale or retirement of an individual well, or an aggregation of interests which make up less than a complete depletable unit, the proceeds are credited to accumulated depletion, unless doing so would significantly alter the depletion rate of the depletable unit, in which case a gain or loss would be recorded.

***Fair Value of Financial Instruments***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value measurements are

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derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This three-tier hierarchy classifies fair value amounts recognized or disclosed in the consolidated financial statements based on the observability of inputs used to estimate such fair values. The classification within the hierarchy of an asset or liability is determined based on the lowest level input that is significant to the fair value measurement. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, the Company categorizes its assets and liabilities recorded at fair value using this hierarchy.

The amounts reported in the balance sheet for cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair value because of the short-term maturities of these instruments. The Company's commodity derivative instruments are classified within Level 2. The fair values of the Company's commodity derivative instruments are based upon inputs that are either readily available in the public market, such as natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets.

Assets and liabilities accounted for at fair value on a non-recurring basis in accordance with Level 3 of the fair value hierarchy include the estimated impairment of oil and natural gas properties, if any, asset retirement obligations and any royalty interest acquired through a business combination during each of the three months ended March 31, 2026, or 2025.

***Debt Issuance Costs***

The Company accounts for the costs incurred in connection with borrowings under financing facilities as deferred and amortized over the life of the related financing on a straight-line basis which approximates the effective interest method. As of March 31, 2026 and December 31, 2025, the Company has deferred and capitalized costs associated with the Company's credit agreements of $3.4 million and $3.4 million, respectively. These deferred issuance costs will be amortized on a straight-line basis over the duration of the credit agreements. Debt issuance costs include origination, legal and other fees to obtain or issue debt. Debt issuance costs which are related to a debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability.

For the three months ended March 31, 2026 and 2025, the Company amortized $0.2 million and $0.1 million, respectively, of deferred debt issuance costs in the accompanying consolidated statements of operations (see Note 6 – Debt).

***Leases***

The Company determines if an arrangement is a lease at inception by considering whether (1) explicitly or implicitly identified assets have been deployed in the agreement and (2) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. Operating leases are included in Other assets, and Operating lease liabilities in the consolidated balance sheets. As of March 31, 2026, and December 31, 2025, none of the Company's leases were classified as financing leases.

Right-of-use ("ROU") assets represent the Company's right to use an underlying asset for the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs, prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable, or its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.

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The lease terms may include periods covered by options to extend the lease when it is reasonably certain that the Company will exercise that option and periods covered by options to terminate the lease when it is not reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company made an accounting policy election to not recognize leases with terms of less than twelve months on the consolidated balance sheets and recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. In the event that the Company's assumptions and expectations change, it may have to revise its ROU assets and operating lease liabilities.

***Revenue from Contracts with Customers***

The Company has the right to receive revenues from natural gas, oil and NGL sales obtained by the operator of the wells in which the Company owns a mineral or royalty interest. Revenue is recognized at the point control of the product is transferred to the purchaser. Virtually all of the pricing provisions in the Company's contracts are tied to a market index.

The Company earns lease bonus income by leasing its mineral interests to exploration, development and production companies. The Company recognizes lease bonus income when a lease agreement has been executed and payment is determined to be collectible.

*Royalty Income from Oil, Natural Gas and Natural Gas Liquids Sales* 

The Company's oil, natural gas and NGL sales contracts are generally structured whereby the producer of the properties in which the Company owns a mineral or royalty interest sells the Partnership's proportionate share of oil, natural gas and NGL production to the purchaser and the Company collects its percentage royalty based on the revenue generated by the sale of the oil, natural gas and NGL. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the wellhead or at the gas processing facility based on the Company's percentage ownership share of the revenue, net of any deductions for gathering and transportation.

*Transaction Price Allocated to Remaining Performance Obligations* 

The Company's right to royalty income does not originate until production occurs and, therefore, is not considered to exist beyond each day's production. Therefore, there are no remaining performance obligations under any of the Company's royalty income contracts.

*Contract Balances* 

Under the Company's royalty income contracts, it generally has the right to receive its interest in the gross proceeds collected by the operator from third-party purchasers of the Company's production once production has occurred, at which point payment is unconditional. Accordingly, the Company's royalty income contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606.

*Prior-Period Performance Obligations* 

The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain oil, natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered. As a result, the Company is required to estimate the amount of royalty income to be received based upon the Company's royalty interest. The Company records the differences between its estimates and the actual amounts received for royalties in the month that payment is received from the operator. Any identified differences between its revenue estimates and actual revenue received historically have not been significant. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids

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contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to expected sales volumes and prices for those properties are estimated and recorded.

The disaggregated revenues from sales of natural gas, oil and NGLs for the three months ended March 31, 2026, and 2025 were as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
|  Natural gas sales | $24191 | $8183 |
|  Oil sales | 2882 | 154 |
|  NGL sales | 1628 | 747 |
|  Less deductions for gathering, transportation and other | (3085) | (1045) |
|  Total royalty revenues | $25616 | $8039 |

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Revenues from lease bonus payments are recorded upon receipt. The lease bonus is separate from the lease itself and is recognized as revenue to the Company upon receipt of payment. The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies and includes proceeds from assignments of leasehold interests where the Company retains an interest. A lease agreement represents the Company's contract with a lessee and generally transfers the rights to develop oil or natural gas, grants the Company a right to a specified royalty interest, and requires that drilling and completion operations commence within a specified time period. Upon signing a lease agreement, no further performance obligation exists for the Company, and therefore, no contract assets or contract liabilities are generated.

***Concentration of Revenue***

Collectability of the Company's royalty revenues is dependent upon the financial condition of the Company's operators, the entities they sell their products to, as well as general economic conditions of the industry. During the three months ended March 31, 2026 and 2025, the following operators represented 10% or more of total revenues:

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| | | |
|:---|:---|:---|
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
|  EQT Production Company | 35% | 52% |
|  Range Resources | 10% | 15% |
|  CNX Gas Company | 11% | 15% |
|  Total | 56% | 82% |

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Although the Company is exposed to a concentration of credit risk, the Company does not believe the loss of any single operator or entity would materially impact the Company's operating results as natural gas, crude oil and NGLs are fungible products with well-established markets and numerous purchasers. If multiple entities were to cease making purchases at or around the same time, we believe there would be challenges initially, but there would be ample markets to handle disruption.

***Income Taxes***

The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered

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or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at March 31, 2026 and 2025. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

***Share-Based Compensation***

Share-based compensation awards are measured at fair value on the date of grant and are expensed, net of any actual forfeitures, over the required service period. See "Note 9**—**Share-Based Compensation" for additional information.

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures,* which requires disaggregated information related to the effective tax rate reconciliation as well as information on income taxes paid. This ASU is effective for annual periods beginning after December 15, 2026, and requires prospective application with the option to apply the standard retrospectively. We are currently evaluating the impact of the ASU on our disclosures.

In November 2024, the FASB issued ASU 2024-03, *Income Statement (Subtopic 220-40): Reporting Comprehensive Income—Expense Disaggregation Disclosures,* which requires disclosure of additional information about specific expense categories underlying certain income statement expense line items. This ASU is effective for annual periods beginning after December 15, 2026, and requires either prospective or retrospective application. We are currently evaluating the impact of the ASU on our disclosures.

**Note 3—Commodity Derivative Financial Instruments** 

The Company's ongoing operations expose it to changes in the market price for natural gas assets. To mitigate the inherent commodity price risk associated with its operations, the Company periodically uses natural gas commodity derivative instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company enters into natural gas derivative contracts that contain netting arrangements with each counterparty. The Company does not enter into derivative instruments for speculative purposes.

As of March 31, 2026, the Company's open derivative contracts consisted of fixed-price swap natural gas contracts and oil contracts as well as natural gas costless collar contracts. A fixed-price swap contract between the Company and a counterparty specifies a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. A costless collar contract between the Company and the counterparty specifies a floor and a ceiling commodity price over a specified period for a contracted volume. The Company has not designated any of its contracts as fair value or cash flow derivatives. Accordingly, the changes in fair value of the contracts are included in the consolidated statements of operations in the period of the change. All derivative gains and losses from the Company's derivative contracts have been recognized in revenue in the Company's accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in the Company's accompanying consolidated balance sheets as of March 31, 2026 and December 31, 2025.

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The Company's oil transactions are settled based upon the average daily prices for the calendar month of the contract period and its natural gas contracts are settled based upon the last day settlement of the first nearby month futures contract of the contract period. Settlement for oil derivative contracts occurs in the succeeding month and natural gas derivative contracts are settled in the production month.

The Company's derivative contracts expose it to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of the Company's commodity derivative assets. While the Company does not require contract counterparties to post collateral, the Company does evaluate the credit standing on each counterparty as deemed appropriate. The evaluation includes reviewing a counterparty's credit rating and latest financial information.

The Company utilizes the market approach in determining the fair value of its derivative positions by using either Henry Hub, Texas Eastern Transmission Company Market Zone 2 ("TETCO M2") or West Texas Intermediate ("WTI") published market prices, independent broker pricing data or broker/dealer valuations. Over-the-counter derivatives with Henry Hub, TETCO M2 or WTI based prices are considered Level 2 due to the impact of counterparty credit risk. The Company's derivatives are classified within Level 2.

The table below summarizes the fair values and classifications of the Company's derivative instruments as of March 31, 2026, and December 31, 2025 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
| <br>**Classification** | <br>**Balance Sheet Location** | **Gross Fair<br>Value** | **Effect of<br>Netting** | **Net Carrying<br>Value** |
|  **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current asset | Other current assets | $12004 | $(7725) | $4279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term asset | Other assets | 7810 | (7810) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets |  | $19814 | $(15535) | $4279 |
|  **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current liability | Other current liabilities | $7725 | $(7725) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term liability | Other non-current liabilities | 11014 | (7810) | 3204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | $18739 | $(15535) | $3204 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| <br>**Classification** | <br>**Balance Sheet Location** | **Gross Fair<br>Value** | **Effect of<br>Netting** | **Net Carrying<br>Value** |
|  **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current asset | Other current assets | $9557 | $(4208) | $5349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term asset | Other assets | 5990 | (5990) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets |  | $15547 | $(10198) | $5349 |
|  **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current liability | Other current liabilities | $4208 | $(4208) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term liability | Other non-current liabilities | 10659 | (5990) | 4669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | $14867 | $(10198) | $4669 |

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Changes in the fair values of the Company's derivative instruments are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the three months ended March 31, 2026, and 2025 (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
|  Unrealized gain (loss) of open non-hedge derivative instruments | $395 | $(8413) |
|  Realized gain (loss) on settlement of non-hedge derivative instruments | (5704) | (461) |
|  Gain (loss) on commodity derivative instruments | $(5309) | $(8874) |

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The Company had the following open derivative contracts for as of March 31, 2026:

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| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(MMBtu)** | **Weighted Average<br>Price<br>(Per MMBtu)** |
|  **Natural Gas Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 5128000 | $4.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 5087000 | $4.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 5494000 | $4.06 |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 5197000 | $3.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 5035000 | $3.85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 5088000 | $3.85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 5130000 | $3.85 |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 4483000 | $3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 3243000 | $3.74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 3253000 | $3.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 3241000 | $3.66 |
| 2029 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 2335000 | $3.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 533000 | $3.38 |

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| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(MMBtu)** | **Weighted Average<br>Price<br>(Per MMBtu)** |
|  **Natural Gas TETCO M2 Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 1958000 | $(0.89) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 1962000 | $(0.94) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 1979000 | $(0.96) |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 2035000 | $(0.43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 1857000 | $(0.70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 1872000 | $(0.95) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 1886000 | $(0.97) |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 1551000 | $(0.41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 667000 | $(0.73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 667000 | $(0.97) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 675000 | $(1.00) |
| 2029 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 547000 | $(0.46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 291000 | $(0.77) |

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| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(Bbls)** | **Weighted Average<br>Price<br>(Per MMBtu)** |
|  **WTI Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 35000 | $64.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 44000 | $63.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 41000 | $62.04 |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 40000 | $61.74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 34000 | $61.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 33000 | $61.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 34000 | $61.46 |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 32000 | $61.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 19000 | $62.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 20000 | $62.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 20000 | $62.75 |
| 2029 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 7000 | $62.75 |

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| | | | |
|:---|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(MMBtu)** | **Weighted Average<br>Floor Price (Per MMBtu)** | **Weighted Average<br>Ceiling Price (Per MMBtu)** |
|  **Natural Gas Collar Contracts:** |  |  |  |
| 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 225000 | $3.00 | $3.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 300000 | $3.00 | $3.60 |

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##### [**Table of Contents**](#toc)
**Note 4—Fair Value Measurements** 

The following table presents information about the Company's assets that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value as of March 31, 2026, and December 31, 2025 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Derivative assets (liabilities) – current | $— | $4279 | $— | $4279 |
|  Derivative assets (liabilities) – long-term |  | (3204) |  | (3204) |
|  Total | $— | $1075 | $— | $1075 |
| **December 31, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Derivative assets (liabilities) – current | $— | $5349 | $— | $5349 |
|  Derivative assets (liabilities) – long-term |  | (4669) |  | (4669) |
|  Total | $— | $680 | $— | $680 |

---

**Note 5—Natural Gas Mineral Interests** 

The Company owns mineral rights across multiple on-shore basins in the United States. The following is a summary of natural gas and oil properties as of March 31, 2026, and December 31, 2025 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $333672 | $327342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 176432 | 176240 |
|  Natural gas and oil mineral interests, gross | $510104 | $503582 |
|  Accumulated depletion | (52624) | (42996) |
|  Natural gas and oil mineral interests, net | $457480 | $460586 |

---

**Note 6—Debt** 

The Company's outstanding debt instruments as of March 31, 2026, and December 31, 2025, are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
|  Senior notes | $231425 | $237700 |
|  Less: current portion | 6275 | 6275 |
|  Less unamortized debt issuance costs | 3417 | 3440 |
|  Total long-term debt, net of unamortized debt issuance costs and current portion | $221733 | $227985 |

---

*Senior Notes* 

On September 17, 2024, the Company issued and sold $65.0 million in senior secured first lien notes ("Senior Notes"). The Senior Notes bears interest on the total outstanding balance at Adjusted Term SOFR plus 6% per annum payable quarterly in arrears and is secured by all of the existing and future assets of the Company. The Senior Notes mature on September 17, 2029, at which time the remaining outstanding amount shall be payable. On

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March 31, 2025, the Company amended the Senior Notes to increase the amount outstanding to $151 million and extended the maturity date to March 31, 2030 ("First Amendment"). On June 23, 2025, the Company amended the Senior Notes to increase the amount outstanding to $251.0 million and extended the maturity date to June 23, 2030 ("Second Amendment"). For the three months ended March 31, 2026, the weighted average interest rate related to our borrowings under the Senior Notes was 10.3%. The Senior Notes contain mandatory prepayments of $1.6 million paid in quarterly installments beginning in January 2025. The repayment amount was increased to $6.3 million as a part of the Second Amendment. The mandatory prepayments are subject to a Minimum Liquidity Amount restriction which requires quarterly analysis to determine if prepayment is required. The Senior Notes contain certain covenants pertaining to reporting and financial requirements, as well as negative and affirmative covenants.

Obligations under the Senior Notes are guaranteed by the Company and each of its existing and future, direct and indirect domestic subsidiaries (the "Credit Parties") and are secured by all the present and future assets of the Credit Parties, subject to customary carve-outs.

The Senior Notes contains various affirmative, negative, and financial maintenance covenants. The Senior Notes also contains a minimum hedging covenant. These covenants, among other things, include restrictions on the Company's ability to incur additional indebtedness, acquire and sell assets, create liens, enter into certain lease agreements, make investments, make distributions, and require the maintenance of the financial ratios described below through the Fiscal Quarter ending March 31, 2026. The Company was in compliance with the terms and covenants of the Senior Notes at March 31, 2026.

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| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 3.5 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.00 to 1.00 |

---

Commencing with the Fiscal Quarter ending March 31, 2027, the financial ratios are updated to the following:

---

| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 3.25 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.10 to 1.00 |

---

For the three months ended March 31, 2026 and 2025, the Company recognized $0.2 million and $0.1 million, respectively, of interest expense attributable to the amortization of debt issuance costs and debt discounts related to the Senior Notes.

**Note 7—Preferred Stock** 

As of March 31, 2026 and 2025, there were zero shares of Series A preferred stock issued and outstanding. As of March 31, 2026 and 2025, there were 49,038 shares and 14,229 shares, respectively, of Series B Preferred Stock issued and outstanding. As of March 31, 2026 and 2025, there were 0 and 56,000 shares, respectively, of Series C preferred stock issued and outstanding. As of March 31, 2026 and 2025, there were 37,780 and 0 shares, respectively, of Series D preferred stock issued and outstanding. The Company is authorized to issue 400,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences described below.

*Series A Preferred Stock* 

The Series A Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series A Preferred Stock shall have no voting rights on any matters which the Company's stockholders are entitled to vote except for consent for the Company to incur

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any new indebtedness or for the Company to create or issue any capital stock that ranks senior to the Series A Preferred Stock. Dividends on each share of Series A Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 18% per year. The Company has the right, but not the obligation, to redeem the Series A Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price"). At the time of redemption, if the Redemption Price does not exceed a return of not less than 8% per Series A Preferred Share ("Minimum Return Payment"), the Company shall be required to pay an additional dividend to satisfy Minimum Return Payment. In the event that the Company has not redeemed all of the Series A Preferred Shares by November 13, 2025, the Company shall not declare, pay or set aside any dividends on shares of common stock. Since the Series A Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series A Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated balance sheet. The Series A Preferred Stock meets the criteria of a participating security for purposes of calculating earnings per share (See Note 10—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series A Preferred Stock (in thousands, except annual dividend rate):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock Annual<br>Dividend Rate** | **Total Cash<br>Dividend** |
|  March 31, 2025 | 18% | $249 |
|  February 28, 2025 | 18% | $255 |
|  January 31, 2025 | 18% | $290 |
|  December 31, 2024 | 18% | $290 |
|  November 30, 2024 | 18% | $269 |
|  October 31, 2024 | 14% | $237 |
|  September 30, 2024 | 14% | $316 |
|  August 31, 2024 | 14% | $403 |
|  July 31, 2024 | 14% | $434 |
|  June 30, 2024 | 14% | $431 |
|  May 31, 2024 | 14% | $458 |
|  April 30, 2024 | 14% | $460 |
|  March 31, 2024 | 14% | $500 |
|  February 29, 2024 | 14% | $489 |
|  January 31, 2024 | 14% | $523 |
|  December 31, 2023 | 14% | $524 |
|  November 30, 2023 | 14% | $304 |

---

In March 2025, the Company's Series A Preferred Stock was extinguished with proceeds raised from the Company's Series C Preferred Stock (as defined below).

*Series B Preferred Stock* 

In February 2024, the Company authorized $50.0 million of its Series B 10% Redeemable Preferred Share class ("Series B Preferred Stock"). Through March 31, 2026, the Company has closed on approximately $44.2 million of net proceeds from the issuance of the Series B Preferred Stock. The Series B Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series B Preferred Stock shall have no voting rights. Dividends on each share of Series B Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 10% per year. The Company has the right, but not the obligation, to redeem the Series B Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price"). For the three months ended March 31, 2026 and 2025, the Company incurred $1.2 million and $0.5 million, respectively, in expenses related to sale of Series B Preferred Stock which were deducted from the carrying value of

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the Series B Preferred Stock in the Consolidated Statements of Shareholders' Equity. The net proceeds from issuance of the Series B Preferred Stock were utilized to redeem the Company's Series A Preferred Stock. Since the Series B Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series B Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated balance sheet. The Series B Preferred Stock meets the criteria of a participating security for purposes of calculating earnings per share (See Note 10—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series B Preferred Stock (in thousands, except annual dividend rate):

---

| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock Annual<br>Dividend Rate** | **Total Cash<br>Dividend** |
|  March 31, 2026 | 10% | $381 |
|  February 28, 2026 | 10% | $337 |
|  January 31, 2026 | 10% | $304 |
|  December 31, 2025 | 10% | $282 |
|  November 30, 2025 | 10% | $256 |
|  October 31, 2025 | 10% | $231 |
|  September 30, 2025 | 10% | $201 |
|  August 31, 2025 | 10% | $179 |
|  July 31, 2025 | 10% | $159 |
|  June 30, 2025 | 10% | $150 |
|  May 31, 2025 | 10% | $138 |
|  April 30, 2025 | 10% | $125 |
|  March 31, 2025 | 10% | $111 |
|  February 28, 2025 | 10% | $95 |
|  January 31, 2025 | 10% | $85 |
|  December 31, 2024 | 10% | $69 |
|  November 30, 2024 | 10% | $64 |
|  October 31, 2024 | 10% | $58 |
|  September 30, 2024 | 10% | $49 |
|  August 31, 2024 | 10% | $40 |
|  July 31, 2024 | 10% | $31 |
|  June 30, 2024 | 10% | $24 |
|  May 31, 2024 | 10% | $19 |
|  April 30, 2024 | 10% | $13 |
|  March 31, 2024 | 10% | $2 |

---

*Series C Preferred Stock* 

In March 2025, the Company sold 56,000 shares of Series C Preferred Stock (the "Series C Preferred Stock") at a price of $1,000.00 per share, resulting in gross proceeds of $56 million. The Series C Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series C Preferred Stock shall have no voting rights on any matters which the Company's stockholders are entitled to vote except for consent for the Company to incur any new indebtedness or for the Company to create or issue any capital stock that ranks senior to the Series C Preferred Stock. Dividends on each share of Series C Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 14% per year through December 31, 2026, and a rate of 18% per year subsequently. The Company has the right, but not the obligation, to redeem the Series C Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price

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– Series C"). At the time of redemption, if the Redemption Price – Series C does not exceed a return of not less than 8% per Series C Preferred Share ("Minimum Return Payment – Series C"), the Company shall be required to pay an additional dividend to satisfy Minimum Return Payment – Series C. In the event that the Company has not redeemed all of the Series C Preferred Shares by December 31, 2027, the Company shall not declare, pay or set aside any dividends on shares of common stock. Since the Series C Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series C Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated statement of changes in mezzanine equity and shareholders' equity. The Series C Preferred Stock meets the criteria of participating security for purposes of calculating earnings per share (See Note 10—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series C Preferred Stock (in thousands):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock Annual<br>Dividend Rate** | **Total Cash<br>Dividend** |
|  December 31, 2025 | 14% | $526 |
|  November 30, 2025 | 14% | $193 |
|  October 31, 2025 | 14% | $200 |
|  September 30, 2025 | 14% | $322 |
|  August 31, 2025 | 14% | $533 |
|  July 31, 2025 | 14% | $666 |
|  June 30, 2025 | 14% | $644 |
|  May 31, 2025 | 14% | $666 |
|  April 30, 2025 | 14% | $644 |
|  March 31, 2025 | 14% | $86 |

---

In December 2025, the Company's Series C Preferred Stock was extinguished with proceeds raised from the Company's common stock.

*Series D Preferred Stock* 

In March 2026, the Company sold 37,780 shares of Series D Preferred Stock (the "Series D Preferred Stock") at a price of $1,000.00 per share, resulting in gross proceeds of approximately $37.8 million. The Series D Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series D Preferred Stock shall have no voting rights on any matters which the Company's stockholders are entitled to vote except for consent for the Company to incur any new indebtedness or for the Company to create or issue any capital stock that ranks senior to the Series D Preferred Stock. Dividends on each share of Series D Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 14% per year through December 31, 2027, and a rate of 18% per year subsequently. The Company has the right, but not the obligation, to redeem the Series D Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price – Series D"). At the time of redemption, if the Redemption Price – Series D does not exceed a return of not less than 8% per Series D Preferred Share ("Minimum Return Payment – Series D"), the Company shall be required to pay an additional dividend to satisfy Minimum Return Payment – Series D. In the event that the Company has not redeemed all of the Series D Preferred Shares by December 31, 2028, the Company shall not declare, pay or set aside any dividends on shares of common stock. The proceeds from the sale of the Series D Preferred Stock were used to purchase additional Haynesville Assets. Since the Series D Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series D Preferred Stock will be presented as mezzanine equity

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outside of the shareholders' equity section of the Company's consolidated statement of changes in mezzanine equity and shareholders' equity. The Series D Preferred Stock meets the criteria of participating security for purposes of calculating earnings per share (See Note 10—Earnings Per Share).

**Note 8—Shareholders' Equity and Dividends** 

*Class A, T, and I Common Stock* – As of March 31, 2026, there were 6,660,465 shares of Class A Common Stock issued and outstanding, 67,051 shares of Class T Common Stock issued and outstanding, and 8,161,117 shares of Class I Common Stock issued and outstanding. Holders of the Company's Class A, T and I Common Stock are entitled to one vote for each share. The Company is authorized to issue 7,000,000 shares, 100,000 shares and 9,100,000 shares of Class A, T and I Common Stock, respectively, each with a par value of $0.0001 per share. The rights and privileges of the Class A,T and I Common Stock are the same, the primary difference between each class of common stock is selling commissions and placement agent fees.

***Cash Dividends***

The table below summarizes the monthly dividends related to the Company's common stock through March 31, 2026 (in thousands, except per share data):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month Ended** | **Total<br>Monthly<br>Dividend<br>Per Common<br>Share** | **Total<br>Cash<br>Dividends** | **Payment<br>Date** | **Stockholders<br>Record Date** |
|  March 31, 2026 | $0.1562 | $2326 | May 15, 2026 | April 1, 2026 |
|  February 28, 2026 | $0.1562 | $2310 | April 15, 2026 | March 1, 2026 |
|  January 31, 2026 | $0.1562 | $2298 | March 15, 2026 | February 1, 2026 |
|  December 31, 2025 | $0.1562 | $2286 | February 16, 2025 | January 1, 2026 |
|  November 30, 2025 | $0.1562 | $2034 | January 15, 2025 | December 1, 2025 |
|  October 31, 2025 | $0.1562 | $2019 | December 15, 2025 | November 3, 2025 |
|  September 30, 2025 | $0.1562 | $2004 | November 14, 2025 | October 2, 2025 |
|  August 31, 2025 | $0.1562 | $1670 | October 15, 2025 | September 2, 2025 |
|  July 31, 2025 | $0.1562 | $1557 | September 15, 2025 | August 1, 2025 |
|  June 30, 2025 | $0.1562 | $1447 | August 15, 2025 | July 1, 2025 |
|  May 31, 2025 | $0.1562 | $804 | July 15, 2025 | June 1, 2025 |
|  April 30, 2025 | $0.1562 | $766 | June 15, 2025 | May 1, 2025 |
|  March 31, 2025 | $0.1562 | $750 | May 15, 2025 | April 1, 2025 |
|  February 28, 2025 | $0.1562 | $731 | April 15, 2025 | March 1, 2025 |
|  January 31, 2025 | $0.1562 | $721 | March 15, 2025 | February 1, 2025 |
|  December 31, 2024 | $0.1562 | $717 | February 14, 2025 | January 1, 2025 |
|  November 30, 2024 | $0.1562 | $706 | January 15, 2025 | December 2, 2024 |
|  October 31, 2024 | $0.1562 | $699 | December 16, 2024 | November 1, 2024 |
|  September 30, 2024 | $0.1562 | $695 | November 15, 2024 | October 1, 2024 |
|  August 31, 2024 | $0.1562 | $691 | October 15, 2024 | September 2, 2024 |
|  July 31, 2024 | $0.1562 | $685 | September 16, 2024 | August 1, 2024 |
|  June 30, 2024 | $0.1562 | $675 | August 15, 2024 | July 1, 2024 |
|  May 31, 2024 | $0.1562 | $670 | July 15, 2024 | June 3, 2024 |
|  April 30, 2024 | $0.1562 | $666 | June 14, 2024 | May 1, 2024 |
|  March 31, 2024 | $0.1562 | $660 | May 15, 2024 | April 1, 2024 |
|  February 29, 2024 | $0.1562 | $657 | April 15, 2024 | March 4, 2024 |
|  January 31, 2024 | $0.1562 | $653 | March 15, 2024 | February 2, 2024 |
|  December 31, 2023 | $0.1562 | $649 | February 15, 2024 | January 2, 2024 |
|  November 30, 2023 | $0.1562 | $642 | January 15, 2024 | December 4, 2023 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month Ended** | **Total<br>Monthly<br>Dividend<br>Per Common<br>Share** | **Total<br>Cash<br>Dividends** | **Payment<br>Date** | **Stockholders<br>Record Date** |
|  October 31, 2023 | $0.1562 | $635 | December 15, 2023 | November 3, 2023 |
|  September 30, 2023 | $0.1562 | $613 | November 15, 2023 | October 3, 2023 |
|  August 31, 2023 | $0.1563 | $603 | October 13, 2023 | September 1, 2023 |
|  July 31, 2023 | $0.1562 | $579 | September 15, 2023 | August 2, 2023 |
|  June 30, 2023 | $0.1562 | $578 | August 15, 2023 | July 3, 2023 |
|  May 31, 2023 | $0.1562 | $550 | July 14, 2023 | June 2, 2023 |
|  April 30, 2023 | $0.1562 | $548 | June 15, 2023 | May 2, 2023 |
|  March 31, 2023 | $0.1562 | $539 | May 15, 2023 | April 2, 2023 |
|  February 28, 2023 | $0.1562 | $532 | April 14, 2023 | March 2, 2023 |
|  January 31, 2023 | $0.1562 | $510 | March 15, 2023 | February 2, 2023 |
|  December 31, 2022 | $0.1562 | $510 | February 15, 2023 | January 3, 2023 |
|  November 30, 2022 | $0.1562 | $429 | January 16, 2023 | November 30, 2022 |
|  October 31, 2022 | $0.1562 | $328 | December 15, 2022 | October 31, 2022 |
|  September 30, 2022 | $0.1562 | $259 | November 15, 2022 | September 30, 2022 |
|  August 31, 2022 | $0.1562 | $226 | October 14, 2022 | August 31, 2022 |
|  July 31, 2022 | $0.1562 | $185 | September 15, 2022 | July 31, 2022 |
|  June 30, 2022 | $0.1562 | $161 | August 15, 2022 | June 30, 2022 |
|  May 31, 2022 | $0.1562 | $154 | July 15, 2022 | May 31, 2022 |
|  April 30, 2022 | $0.1562 | $80 | June 15, 2022 | April 30, 2022 |
|  March 31, 2022 | $0.1562 | $22 | May 16, 2022 | March 31, 2022 |

---

On January 1, 2026, all record holders of WhiteHawk common stock as of December 31, 2025, received a stock dividend equivalent to one additional share for each ten shares currently held, calculated to the number of whole shares.

In connection with the 2025 stock dividends discussed above, the WHIC Manager (defined below) received 358,893 restricted shares related to its dividend incentive fee with a total value of $8.2 million. Fair value was determined using the offering price of the Series I Common Stock. The restricted shares issued to the WHIC Manager shall vest and cease to be restricted on the earlier of (i) the occurrence of a Company Liquidity Event and (ii) January 1, 2031. The dividend incentive fee will be accounted for as stock compensation expense on the Company's consolidated statement of operating income and cash flows over the vesting period. All share amounts shown in the Company's financial statements are presented pro forma for the stock dividend. For the three months ended March 31, 2026, the Company incurred $0.4 million in stock-based compensation related to the restricted stock issued to WHIC Manager.

***Distribution Reinvestment Plan***

In January 2025, the Company's Board adopted a Distribution Reinvestment Plan (the "DRP") pursuant to which our common and preferred stockholders (the "Stockholders") may elect to have their cash dividends reinvested in additional stock. For the three months ended March 31, 2026 and 2025, Stockholders reinvested $1.1 million and less than $0.1 million, respectively, under the Company's DRP.

**Note 9—Share-Based Compensation** 

During January 2026, the WhiteHawk Board adopted the WhiteHawk 2026 Equity Incentive Plan (the "Plan"). An aggregate of 0.2 million shares of common stock are available for issuance under the Plan. The Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. Common shares that are cancelled, forfeited, or withheld to satisfy exercise prices or tax

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withholding obligations will be available for delivery pursuant to other awards. Distribution equivalent rights ("DER") are also available for grant under the Plan, either alone or in tandem with other specific awards, which will entitle the recipient to receive an amount equal to dividends paid on a common stock. The Plan is administered by the WhiteHawk Board of Directors or a committee thereof.

***Restricted Stock Units***

Under the Plan, the WhiteHawk Board is authorized to issue restricted stock units ("RSU") to eligible employees and non-employee directors. The Company estimates the fair value of the RSUs as the closing price of the Company's common stock on the grant date of the award, which is expensed over the applicable vesting period. All compensation cost for the RSUs will be recognized over the longer of the service condition or the performance condition (if any). Each RSU that has been granted has a dividend equivalent right ("DER") included in each agreement. Dividends paid in connection with the DERs are accounted for as a reduction in retained earnings for those awards that are expected to vest. RSUs that are forfeited could cause a reclassification of any previously recognized DER payments from a reduction in retained earnings to additional compensation cost.

The following table summarizes the activity in our unvested RSUs for the three months ended March 31, 2026:

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| | | |
|:---|:---|:---|
|  | **Restricted<br>Stock<br>Units** | **Weighted Average<br>Grant-Date<br>Fair Value** |
|  Unvested at December 31, 2025 |  | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 84704 | $22.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vested |  | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  | $— |
|  Unvested at March 31, 2026 | 84704 | $22.88 |

---

For the three months ended March 31, 2026, the Company incurred $0.1 million of share-based compensation which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized estimated fair value of unvested RSUs was $1.9 million at March 31, 2026. These costs are expected to be recognized as expense over a weighted average period of 3.19 years. In addition, for the three months ended March 31, 2026, the Company paid less than $0.1 million of DERs to d RSU holders.

**Note 10—Earnings Per Share** 

Earnings per share is computed using the two-class method. The two-class method determines earnings per share of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Participating securities represent preferred stock in which the holders have non-forfeitable rights to receive dividends. Net Income (loss) attributable to common shareholders is determined by subtracting earnings and dividends attributable to the various classes of preferred stock, as well as earnings and dividends attributed to restricted share units, from net income.

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The following table sets forth the calculation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
|  **Numerator:** |  |  |
|  Net income (loss) - basic and diluted | $(1063) | $(8093) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Earnings allocated to participating securities | (1186) | (1086) |
|  Net income (loss) attributable to common stockholders - basic and diluted | $(2249) | $(9179) |
|  **Denominator:** |  |  |
|  Weighted average shares outstanding - basic and diluted | 14739 | 4652 |
|  Net income (loss) per common share - basic and diluted | $(0.15) | $(1.97) |

---

The Company had the following shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per share in future periods:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
|  Series B Preferred Stock | 49038 | 14229 |
|  Series C Preferred Stock |  | 56000 |
|  Series D Preferred Stock | 37780 |  |
|  Restricted Stock Units | 84704 |  |
|  Restricted Stock | 358893 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 530415 | 70229 |

---

**Note 11—Income Taxes** 

The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and other carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized.

For the three months ended March 31, 2026, and 2025, the Company recorded an income tax benefit of $0.3 million and $0.0 million, respectively.

As of March 31, 2026, and December 31, 2025, the Company had $21.3 million and $21.3 million, respectively, of net deferred tax liabilities net of valuation allowances. The Company acquired $24.8 million of net deferred tax liabilities as a part of the PHX Merger. These net deferred tax liabilities relate to natural gas assets and other temporary items where the tax basis differs from the GAAP carrying amounts.

As of March 31, 2026, the Company had $11.9 million in federal net operating loss carryforwards and $6.3 million in state net operating loss carryforwards for income tax purposes. The Company acquired all of the federal and state net operating loss carryforwards as part of the acquisition of PHX Minerals Inc. in 2025. As of

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the date of the financial statements, no limitations were identified that would limit the Company's ability to utilize the net operating losses in future years. In the event that the Company experiences another ownership change within the meaning of Section 382 of the Internal Revenue Code, our ability to utilize net operating losses and other tax attributes may be limited.

As of March 31, 2026, the Company determined it is more likely than not that it will realize our deferred tax assets, with the exception of a small valuation allowance on state net operating loss carryforwards that are expected to expire before utilization.

At March 31, 2026, and December 31, 2025, the Company had prepaid income taxes of $0.6 million and $0.4 million, respectively. The prepaid income taxes are included in other current assets on the consolidated balance sheets.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of March 31, 2026 and December 31, 2025. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

**Note 12—Related Party Transactions** 

*WhiteHawk Management* 

The Company is managed by WhiteHawk Minerals, LLC, a Delaware limited liability company (the "WHM"), along with its wholly-owned subsidiary, WhiteHawk Management, LLC (collectively, "WHIC Manager")

With the oversight of the Board, the WHIC Manager is responsible for the investment management function on behalf of WhiteHawk pursuant to the management agreement ("WHIC Management Agreement"). The WHIC Manager is responsible for managing the day-to-day operations of WhiteHawk, including investigating, analyzing, structuring, and negotiating potential investments, monitoring the performance of the assets, and making determinations.

The WHIC Management Agreement may be terminated at any time, without the payment of any penalty by either the Company or the WHIC Manager for "Cause" (as defined in the WHIC Management Agreement) upon thirty (30) days' prior written notice of the incident giving rise to the Cause and an opportunity to cure the Cause referenced in such notice prior to termination. The WHIC Management Agreement may be terminated at any time, without Cause and without the payment of any penalty: (i) by WhiteHawk upon sixty (60) days' prior written notice to the WHIC Manager; or (ii) by the WHIC Manager upon not less than one hundred and twenty (120) days' prior written notice to WhiteHawk.

Under the WHIC Management Agreement, WHIC Manager will earn a monthly asset management fee (the "Base Management Fee"), a dividend incentive fee (the "Dividend Incentive Fee"), and an incentive fee upon a Liquidity Event for the Company's assets (the "Liquidity Incentive Fee").

The Base Management Fee is calculated at an annual rate of one and one-half percent (1.5%) of WhiteHawk's total assets, which will initially be based on the total cost of all WhiteHawk's assets. The Base Management Fee is payable monthly in arrears and is calculated based on the arithmetic average value of our total assets as of the last day of (1) a calendar month and (2) the immediately preceding calendar month.

The Dividend Incentive Fee entitles the WHIC Manager to earn a fee of 12.5% of all distributions, including all dividends and dividend incentive fees, earned and/or paid out during a calendar month. If in any calendar

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month the WHIC Manager elects to defer receipt of its Dividend Incentive Fee to a future month (the "Manager Fee Deferral"), then the WHIC Manager will still earn its fee in any calendar month where dividends are paid to the shareholders. Any remaining cash flow of the Company after all base dividends, bonus dividends, and Dividend Incentive Fees have been paid in any given calendar month shall first be used to reimburse the WHIC Manager for any prior period cash flow needs that it has funded or Dividend Incentive Fees that it has earned but not yet been paid, and then shall be retained by WhiteHawk, to be used at the Company's discretion for additional investment purposes.

The Liquidity Incentive Fee entitles the WHIC Manager to receive a portion of the proceeds from a WhiteHawk liquidity event after shareholders have received 100% of their initial invested capital plus a 7.5% annualized non-compounded return (the "Hurdle"). The WHIC Manager will receive 12.5% of all amounts above the Hurdle.

During the three months ended March 31, 2026, and 2025, the Company paid $3.0 million and $1.4 million, respectively, to the WHIC Manager related to its Base Management Fee and Dividend Incentive Fee, respectively. This is recorded in the management fee expense on the consolidated statements of operations. In addition, the WHIC Manager received restricted stock with a fair value of $8.2 million during the three months ended March 31, 2026. The restricted stock issued to the WHIC Manager shall vest and cease to be restricted on the earlier of (i) the occurrence of a Company Liquidity Event and (ii) January 1, 2031.

We entered into an administrative services agreement, date as of March 1, 2022 (the "Administrative Services Agreement"), with WHIC Manager. Pursuant to the Administrative Services Agreement, WHIC Manager performs and oversees on our behalf the performance of various administrative services that we require. Such administrative services include, but are not limited to, the provision of office facilities and equipment; the provision of clerical, bookkeeping, general ledger accounting, and recordkeeping services; investor services, assistance with tax preparation; regulatory filings; procurement of operational services and any other services. The Administrative Services Agreement provides for the reimbursement of WHIC Manager's costs and expenses paid for such administrative services. For the three months ended March 31, 2026 and 2025, the Company paid WHIC Manager $1.4 million and $0.4 million, respectively, for the reimbursement for the administrative costs and expenses paid pursuant to the Administrative Services Agreement. These amounts are recorded in the general and administrative expense on the consolidated statement of operations.

*Preferred Capital Securities* 

Jeff Smith, our President and director, is the chief executive officer and co-owner of Preferred Capital Securities, LLC ("PCS"). We entered into a dealer manager agreement, dated as of March 18, 2022 (the "Common Stock DMA"), with PCS. Pursuant to the Common Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with our continuing offer (the "Private Offering") to accredited investors of our Class A Common Stock, Class I Common Stock, and Class T Common Stock, pursuant to a confidential private placement memorandum (the "Memorandum"). Under the agreement, PCS has agreed to find, on a best efforts basis, purchasers for our Class A, Class I and Class T Common Stock for cash through broker-dealers or registered investment advisors, all of which are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"), or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Common Stock DMA, PCS is entitled to a dealer manager fee of 2.5% of the price of Class A and Class T Common Stock sold in the Private Offering. In addition, we agreed to pay PCS a selling commission equal to 6.0% of the price of Class A Common Stock, and 4.0% of Class T Common Stock sold in the Private Offering. Additionally, a trail commission equal to 0.7% annually will be paid on Class T Common Stock subject to the restrictions and provisions as described in the Memorandum. For the three months ended March 31, 2026 and 2025 we paid PCS $0.2 million and $0.2 million, respectively, in compensation for its services under the Dealer Manager Agreement and is included in the equity statement as a reduction to common stock proceeds.

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We also entered into a dealer manager agreement, dated as of February 2, 2024 (the "Preferred Stock DMA" and, together with the Common Stock DMA, the "DMAs"), with PCS. Pursuant to the Preferred Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with the continuing Private Offering to accredited investors of shares of our Series B preferred common stock, $0.0001 par value (our "Series B Preferred Shares") pursuant to the Memorandum. Under the Preferred Stock DMA, PCS has agreed to find, on a best efforts basis, purchasers for our Series B Preferred Shares for cash through broker-dealers or registered investment advisors, all of which are members of FINRA or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Preferred Stock DMA, PCS is entitled to a dealer manager fee of up to 3.0% of the price per Series B Preferred Share sold in the Private Offering. In addition, we agreed to pay PCS a selling commission of up to 7.0% of the price per Series B Preferred Share sold in the Private Offering. For the three months ended March 31, 2026 and 2025, we paid PCS $0.9 million and $0.3 million, respectively, in compensation for its services under the Preferred Stock DMA and is included in the equity statement as a reduction to Series B Preferred Stock.

Pursuant to each DMA, no selling commissions or dealer manager fees will be paid in connection with the common stock or preferred stock, as applicable, sold to WhiteHawk Management, its management and their family members, employees and their family members and WhiteHawk Management's other affiliates. As president of WhiteHawk Management, Mr. Smith is not entitled to any selling commissions or dealer management fees under each DMA.

*PhiCap Advisors LLC* 

PhiCap Advisors LLC ("PhiCap") provides leadership and capital solutions support to the Company through a consulting agreement. In addition, PhiCap owns approximately 20% of WhiteHawk Energy LLC ("WhiteHawk Energy"), which in turns owns 75% of WhiteHawk Minerals. For the three months ended March 31, 2026, the Company paid PhiCap $0.1 million and $0.1 million, respectively, in consulting fees and reimbursements. During the three months ended March 31, 2025, the Company paid $0.1 million and less than $0.1 million, respectively in consulting fees and reimbursements. During the three months ended March 31, 2026 and 2025, less than $0.1 million and less than $0.1 million, respectively, of the consulting fees paid to PhiCap were recorded in Additional Paid In Capital due to PhiCap's fund raising support and the remainder was recorded in general and administrative expense on the consolidated statement of operations.

*WhiteHawk Related Party Equity Transactions* 

Members and employees of the WHIC Manager contributed to WHIC $2.6 million of the $44.1 million of the proceeds raised through the sale of the Series A Preferred Stock. Members and employees of the WHIC Manager received dividends of $0.0 million and less than $0.1 million, respectively, during the three months ended March 31, 2026, and 2025 from the Series A Preferred Stock.

Members and employees of the WHIC Manager contributed to WHIC $2.6 million of the $56.0 million of the proceeds raised through the sale of the Series C Preferred Stock. Members and employees of the WHIC Manager received dividends of $0.0 million and less than $0.1 million during the three months ended March 31, 2026, and 2025 from the Series C Preferred Stock.

Members and employees of the WHIC Manager contributed $2.7 million of the $37.8 million proceeds raised through the sale of the Series D Preferred Stock. Members and employees of the WHIC Manager received dividends of $0.0 million during the three months ended March 31, 2026, from the Series D Preferred Stock.

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**Note 13—Commitments and Contingencies** 

From time to time, the Company may be involved in various legal proceedings, lawsuits, and other claims in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Management does not believe that the resolution of these matters will have a material adverse impact on our financial condition, cash flows or results of operations.

**Note 14—Segment** 

WhiteHawk's chief operating decision maker ("CODM") is the Chief Executive Officer ("CEO"). The CEO manages the business as a whole and assesses financial performance as a single enterprise and not on an area-by-area basis. Therefore, the Company identified one reportable segment: natural gas & oil minerals. The natural gas and oil minerals segment acquires, owns and manages high-quality mineral and royalty interests across premium basins in the United States and leases its mineral interests to E&P operators. These leases permit E&P operators to explore for and produce oil, natural gas and natural gas liquids from WhiteHawk's properties and entitle the Company to receive a percentage of the proceeds from the sales of these commodities. The accounting policies of the oil & natural gas minerals segment are the same as those described in the summary of significant accounting policies. The CODM uses net income from operations generated from segment assets in deciding whether to reinvest profits into the oil & natural gas minerals segment or into other parts of the entity, pay dividends to holders of our common and preferred stock, or make payments on our outstanding debt. The CODM assesses performance of the oil & natural gas minerals segment and decides how to allocate resources based on net income and net income from operations that is reported on the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets. The CODM evaluates significant expenses and assets based off the consolidated financial statements and does not further disaggregate expenses or assets in deciding how to allocate resources and assess performance. Since the Company operates as a single reporting segment, all required segment reporting disclosures can be found in the consolidated financial statements.

**Note 15—Subsequent Events** 

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the consolidated financial statements were issued.

*Dividends Declared* 

On February 10, 2026, the Company approved the following cash dividends:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of March 2, 2026, payable on April 15, 2026; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares
outstanding as of April 1, 2026, payable on May 15, 2026.

*Revolving Credit Facility* 

On May 10, 2026 a subsidiary of the Company entered into a reserve-based revolving credit facility with Capital One, National Association, as administrative agent and a lender, and the other lenders party thereto (the "Revolving Credit Facility"), with the restrictions, covenants and funding obligations under such Revolving Credit Facility to be effective upon the closing of an offering (the "Effective Date"). The Revolving Credit Facility will provide for an initial aggregate maximum credit amount of $500 million, an initial aggregate elected commitment of $150 million and an initial borrowing base of $150 million, with a sublimit for the issuance of letters of credit of up to $10 million. The Revolving Credit Facility will mature four years after the Effective Date.

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**Report of Independent Registered Public Accounting Firm** 

To the Stockholders and the Board of Directors of PHX Minerals Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying balance sheets of PHX Minerals Inc. (the Company) as of December 31, 2024 and 2023, the related statements of income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter** 

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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| | |
|:---|:---|
|  | ***Depreciation, Depletion and Amortization of Producing Natural Gas and Oil Working Interest and Overriding Royalty Interest Properties*** |
| *Description of the Matter* | At December 31, 2024, the cost basis of the Company's natural gas and oil properties was $274.9 million, and depreciation, depletion and amortization ("DD&A") expense was $9.6 million for the year then ended. As discussed in Note 1, the Company follows the successful efforts method of accounting for its natural gas and oil producing activities. Depreciation, depletion and amortization of natural gas and oil properties is generally computed using the unit-of-production method primarily on an individual property basis using proved or proved developed reserves, as applicable, as estimated by the Company's Independent Consulting Petroleum Engineer. The |

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|:---|:---|
|  | Company's Independent Consulting Petroleum Engineer, with assistance from the Company, prepares estimates of natural gas, crude oil and NGL reserves using standard geological and engineering methods generally recognized in the petroleum industry based on evaluations of in-place hydrocarbon volumes using financial and non-financial inputs.<br> Subjective judgment is required by the Independent Consulting Petroleum Engineer in evaluating data used to estimate natural gas, oil and NGL reserves. Estimating reserves requires the selection of inputs, including historical production, price assumptions, and future operating costs, among others. Auditing the Company's working interest and overriding royalty interest properties unit-of-production DD&A calculations is subjective because of the use of the work of the Independent Consulting Petroleum Engineer and the determination of the inputs described above used by the engineers in estimating proved natural gas, oil and NGL reserves. |
| *How We Addressed the Matter in Our Audit* | Our audit procedures included, among others, evaluating the professional qualifications and objectivity of the Independent Consulting Petroleum Engineer used to prepare the proved natural gas, oil and NGL reserve estimates. In assessing whether we can use the work of the Independent Consulting Petroleum Engineers, we evaluated the completeness and accuracy of the financial and non-financial data described above used by the engineers in estimating proved natural gas, oil and NGL reserves by agreeing them to source documentation. In addition, we assessed the inputs for reasonableness based on our review of corroborative evidence and consideration of any contrary evidence. We also tested the mathematical accuracy of the DD&A calculations, including comparing the proved natural gas, oil and NGL reserve amounts used in the calculations to the Company's reserve report. |

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/s/ Ernst & Young LLP

We have served as the Company's auditor since 1989.

Oklahoma City, Oklahoma

March 12, 2025

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PHX Minerals Inc.

Balance Sheets

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  **Assets** |  |  |
|  Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $2242102 | $806254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales receivables (net of $0 allowance for uncollectable accounts) | 6128954 | 4900126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refundable income taxes | 328560 | 455931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts, net |  | 3120607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 857317 | 878659 |
|  Total current assets | 9556933 | 10161577 |
|  Properties and equipment at cost, based on successful efforts accounting: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Producing natural gas and oil properties | 223043942 | 209082847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-producing natural gas and oil properties | 51806911 | 58820445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1361064 | 1360614 |
|  | 276211917 | 269263906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less accumulated depreciation, depletion and amortization | (122835668) | (114139423) |
|  Net properties and equipment | 153376249 | 155124483 |
|  Derivative contracts, net |  | 162980 |
|  Operating lease right-of-use assets | 429494 | 572610 |
|  Other, net | 553090 | 486630 |
|  Total assets | $163915766 | $166508280 |
|  **Liabilities and Stockholders' Equity** |  |  |
|  Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $804693 | $562607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts, net | 316336 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of operating lease liability | 247786 | 233390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other | 1866930 | 1215275 |
|  Total current liabilities | 3235745 | 2011272 |
|  Long-term debt | 29500000 | 32750000 |
|  Deferred income taxes | 7286315 | 6757637 |
|  Asset retirement obligations | 1097750 | 1062139 |
|  Derivative contracts, net | 398072 |  |
|  Operating lease liability, net of current portion | 448031 | 695818 |
|  Total liabilities | 41965913 | 43276866 |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Voting common stock, par value $0.01666 per share: 75,000,000 shares authorized and 36,796,496 shares issued and outstanding at December 31, 2024; 54,000,500 shares authorized and 36,121,723 shares issued and outstanding at December 31, 2023 | 613030 | 601788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital in excess of par value | 44029492 | 41676417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred directors' compensation | 1323760 | 1487590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 77073332 | 80022839 |
|  | 123039614 | 123788634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost: 279,594 shares at December 31, 2024; 131,477 shares at December 31, 2023 | (1089761) | (557220) |
|  Total stockholders' equity | 121949853 | 123231414 |
|  Total liabilities and stockholders' equity | $163915766 | $166508280 |

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*See accompanying notes.* 

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PHX Minerals Inc.

Statements of Income

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Revenues: |  |  |
|  Natural gas, oil and NGL sales | $33690652 | $36536285 |
|  Lease bonuses and rental income | 580804 | 1068022 |
|  Gains (losses) on derivative contracts (Note 12) | 299608 | 6859589 |
|  | 34571064 | 44463896 |
|  Costs and expenses: |  |  |
|  Lease operating expenses | 1228813 | 1598944 |
|  Transportation, gathering and marketing | 4513381 | 3674832 |
|  Production and ad valorem taxes | 1703305 | 1881737 |
|  Depreciation, depletion and amortization | 9606444 | 8566185 |
|  Provision for impairment | 52673 | 38533 |
|  Interest expense | 2563268 | 2362393 |
|  General and administrative | 11670328 | 11970182 |
|  Losses (gains) on asset sales and other | 83799 | (4285170) |
|  | 31422011 | 25807636 |
|  Income before provision for income taxes | 3149053 | 18656260 |
|  Provision for income taxes | 827187 | 4735460 |
|  Net income | $2321866 | $13920800 |
|  Basic and diluted earnings (loss) per common share (Note 7) | $0.06 | $0.39 |
|  Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 36329735 | 35980309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 36412270 | 35980309 |
|  Dividends per share of common stock paid in period | $0.1400 | $0.0975 |

---

*See accompanying notes.* 

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PHX Minerals Inc.

Statements of Stockholders' Equity

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Voting<br>Common Stock | Voting<br>Common Stock | Capital in<br>Excess of Par<br>Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Shares | Amount | Capital in<br>Excess of Par<br>Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  Balances at December 31, 2022 | 35938206 | $598731 | $43344916 | $1541070 | $68925774 | (300272) | $(4307365) | $110103126 |
|  Net income (loss) |  |  |  |  | 13920800 |  |  | 13920800 |
|  Purchase of treasury stock |  |  |  |  |  | (120939) | (402704) | (402704) |
|  Restricted stock awards expense |  |  | 2205910 |  |  |  |  | 2205910 |
|  Dividends declared |  |  |  |  | (2823735) |  |  | (2823735) |
|  Distribution of restricted stock to officers and directors | 183517 | 3057 | (3850079) |  |  | 268422 | 3847022 |  |
|  Distribution of deferred directors' compensation |  |  | (24330) | (281497) |  | 21312 | 305827 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 228017 |  |  |  | 228017 |
|  Balances at December 31, 2023 | 36121723 | $601788 | $41676417 | $1487590 | $80022839 | (131477) | $(557220) | $123231414 |
|  Net income (loss) |  |  |  |  | 2321866 |  |  | 2321866 |
|  Purchase of treasury stock |  |  |  |  |  | (212391) | (805063) | (805063) |
|  Restricted stock awards expense |  |  | 2287927 |  |  |  |  | 2287927 |
|  Dividends declared |  |  |  |  | (5271373) |  |  | (5271373) |
|  Distribution of restricted stock to officers and directors | 674773 | 11242 | (11242) |  |  |  |  |  |
|  Distribution of deferred directors' compensation |  |  | 76390 | (348912) |  | 64274 | 272522 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 185082 |  |  |  | 185082 |
|  Balances at December 31, 2024 | 36796496 | $613030 | $44029492 | $1323760 | $77073332 | (279594) | $(1089761) | $121949853 |

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*See accompanying notes.* 

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PHX Minerals Inc.

Statements of Cash Flows

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  **Operating Activities** |  |  |
|  Net income | $2321866 | $13920800 |
|  Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 9606444 | 8566185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of producing properties | 52673 | 38533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for deferred income taxes | 528678 | 4303731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain from leasing fee mineral acreage | (580805) | (1067992) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from leasing fee mineral acreage | 597389 | 1213913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (gain) loss on sales of assets | (518816) | (4728758) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors' deferred compensation expense | 185082 | 228017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (gain) loss on derivative contracts | (299608) | (6859589) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash receipts (payments) on settled derivative contracts | 4297603 | 2743475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stock award expense | 2287927 | 2205910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 98104 | 136412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash provided (used) by changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales receivables | (1228828) | 4883870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable | 127371 | (455931) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | (3064) | (45869) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 252386 | 69228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current assets | (22985) | 206292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable |  | (576427) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 376436 | (610661) |
|  Total adjustments | 15755987 | 10250339 |
|  Net cash provided by operating activities | 18077853 | 24171139 |
|  **Investing Activities** |  |  |
|  Capital expenditures | $(87579) | $(325983) |
|  Acquisition of minerals and overriding royalty interests | (7796983) | (29735516) |
|  Net proceeds from sales of assets | 527167 | 9614194 |
|  Net cash provided by (used in) investing activities | (7357395) | (20447305) |
|  **Financing Activities** |  |  |
|  Borrowings under Credit Facility | 3000000 | 19500000 |
|  Payments of loan principal | (6250000) | (20050000) |
|  Payments on off-market derivative contracts |  | (560162) |
|  Purchases of treasury stock | (805063) | (402704) |
|  Payments of dividends | (5229547) | (3520366) |
|  Net cash provided by (used in) financing activities | (9284610) | (5033232) |
|  Increase (decrease) in cash and cash equivalents | 1435848 | (1309398) |
|  Cash and cash equivalents at beginning of period | 806254 | 2115652 |
|  Cash and cash equivalents at end of period | $2242102 | $806254 |
|  **Supplemental Disclosures of Cash Flow Information** |  |  |
|  Interest paid (net of capitalized interest) | $2611089 | $2405361 |
|  Income taxes paid (net of refunds received) | $318789 | $1464087 |
|  **Supplemental schedule of noncash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends declared and unpaid | $155271 | $113443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross additions to properties and equipment | $7893036 | $30761578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (increase) decrease in accounts receivable for properties and equipment additions | (8474) | (700079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures and acquisitions | $7884562 | $30061499 |

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PHX Minerals Inc.

Notes to Financial Statements

<u>1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u> 

**Nature of Business** 

The Company's principal line of business is maximizing the value of its existing mineral and royalty assets through active management and expanding its asset base through acquisitions of additional mineral and royalty interests. The Company owns mineral and leasehold properties and other natural gas and oil interests, which are all located in the contiguous United States, primarily in Oklahoma, Texas, Louisiana, North Dakota and Arkansas, with properties located in several other states. The Company's natural gas, oil and NGL production is from interests in 6,958 wells located principally in Oklahoma, Louisiana, Texas, Arkansas and North Dakota. The Company does not operate any wells. Approximately 52%, 39% and 9% of natural gas, oil and NGL revenues were derived from the sale of natural gas, oil and NGL, respectively, in the year ended December 31, 2024. Approximately 81%, 11% and 8% of the Company's total sales volumes in the year ended December 31, 2024 were derived from natural gas, oil and NGL, respectively. Substantially all the Company's natural gas, oil and NGL production is sold through the operators of the wells.

Effective April 1, 2022, the Company changed its state of incorporation from Oklahoma to Delaware through a merger with a wholly owned subsidiary, which was conducted for such purpose (the "Reincorporation"). Other than the change in the state of incorporation, the Reincorporation did not result in any change in the business, physical location, management, or any change in the fair value of the assets and liabilities of PHX Minerals Inc. and its subsidiaries and no gain or loss was recognized in our consolidated financial statements (since the merger was between entities under common control both before and after the merger).

**Use of Estimates** 

Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Of these estimates and assumptions, management considers the estimation of natural gas, crude oil and NGL reserves to be the most significant. These estimates affect the unaudited standardized measure disclosures, as well as DD&A and impairment calculations. The Company's Independent Consulting Petroleum Engineer, with assistance from the Company, prepares estimates of natural gas, crude oil and NGL reserves on an annual basis. These estimates are based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geological and geophysical information. For DD&A purposes, and as required by the guidelines and definitions established by the SEC, the reserve estimates were based on average individual product prices during the 12-month period prior to December 31, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices were defined by contractual arrangements, excluding escalations based upon future conditions. For impairment purposes, projected future natural gas, crude oil and NGL prices as estimated by management are used. Natural gas, crude oil and NGL prices are volatile and largely affected by worldwide production and consumption and are outside the control of management. Management uses projected future natural gas, crude oil and NGL pricing assumptions to prepare estimates of natural gas, crude oil and NGL reserves used in formulating management's overall operating decisions.

As a non-operator of working, royalty and mineral interests, the Company receives actual natural gas, oil and NGL sales volumes and prices more than a month after the information is available to the operators of the wells. Because of the delay in information, the most current available production data is gathered from the

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appropriate operators, as well as public and private sources, and natural gas, oil and NGL index prices are used to estimate the accrual of revenue on these wells. If information is not available from an outside source, the Company utilizes past production receipts, production type curves, and estimated sales price information to estimate its accrual of revenue on all other wells each quarter. The natural gas, oil and NGL sales revenue accrual can be impacted by many variables including rapid production decline rates, production curtailments by operators, the shut-in of wells with mechanical problems and rapidly changing market prices for natural gas, oil and NGL. These variables could lead to an over or under accrual of natural gas, oil and NGL at the end of any particular quarter. Based on past history, the Company's estimated accrual has been materially accurate.

**Basis of Presentation** 

Certain reclassifications have been made to prior period financials to conform to the current year presentation. These reclassifications have no impact on previous reported total assets, total liabilities, net income (loss), stockholders' equity, or operating cash flows.

**Cash and Cash Equivalents** 

Cash and cash equivalents consist of all demand deposits and funds invested in short-term investments with original maturities of three months or less.

**Natural Gas, Oil and NGL Sales** 

The Company sells natural gas, oil and NGL to various customers, recognizing revenues as natural gas, oil and NGL is produced and sold.

**Accounts Receivable and Concentration of Credit Risk** 

Substantially all of the Company's accounts receivable are due from purchasers (operators) of natural gas, oil and NGL. Natural gas, oil and NGL sales receivables are generally unsecured. This industry concentration has the potential to impact our overall exposure to credit risk, in that the purchasers of our natural gas, oil and NGL and the operators of the properties in which we have an interest may be similarly affected by changes in economic, industry or other conditions. During the years ended December 31, 2024, and 2023, the Company did not have any bad debt expense. The Company's allowance for uncollectible accounts as of the balance sheet dates was not material.

**Natural Gas and Oil Producing Activities** 

The Company follows the successful efforts method of accounting for natural gas and oil producing activities. For working interest properties, intangible drilling and other costs of successful wells and development dry holes are capitalized and amortized. The costs of exploratory wells are initially capitalized, but charged against income, if and when the well does not reach commercial production levels. Natural gas and oil mineral and leasehold costs are capitalized when incurred.

**Leasing of Mineral Rights** 

The Company generates lease bonuses by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company's contract with a third party and generally conveys the rights to any natural gas, oil or NGL discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in ASC 932, and it recognizes the lease bonus

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as a cost recovery with any excess above its cost basis in the mineral being treated as income. The excess of lease bonus above the mineral basis is shown in the lease bonuses and rentals line item on the Company's Statements of Income.

**Derivatives** 

The Company utilizes derivative contracts to reduce its exposure to fluctuations in the price of natural gas and oil. These derivatives are recorded at fair value on the balance sheet. The Company has elected not to complete the documentation requirements necessary to permit these derivative contracts to be accounted for as cash flow hedges.

**Properties and Equipment** 

*Depreciation, Depletion and Amortization* 

Depreciation, depletion and amortization of the costs of producing natural gas and oil properties are generally computed using the unit-of-production method primarily on an individual property basis using proved or proved developed reserves, as applicable, as estimated by the Company's Independent Consulting Petroleum Engineer. The Company's capitalized costs of drilling and equipping all development wells, and those exploratory wells that have found proved reserves, are amortized on a unit-of-production basis over the remaining life of associated proved developed reserves. Leasehold costs for working interest and overriding royalty interest properties are amortized on a unit-of-production basis over the remaining life of associated total proved reserves. Depreciation of furniture and fixtures is computed using the straight-line method over estimated productive lives of five to eight years.

Non-producing natural gas and oil properties include non-producing minerals, which had a net book value of $41,870,046 and $49,226,889 at December 31, 2024 and December 31, 2023, respectively, consisting of perpetual ownership of mineral interests in several states, with 57% of the acreage in Oklahoma, Texas, Louisiana, North Dakota and Arkansas. As mentioned, these mineral rights are perpetual and have been accumulated over the 98-year life of the Company. There are approximately 170,773 net acres of non-producing minerals in more than 5,603 tracts owned by the Company. An average tract contains approximately 30 acres. Since inception, the Company has continually generated an interest in several thousand natural gas and oil wells using its ownership of the fee mineral acres as an ownership basis. There continues to be drilling and leasing activity on these mineral interests each year. Non-producing minerals are considered a long-term investment by the Company, as they do not expire (unlike natural gas and oil leases) and based on past history and experience, management has concluded that a long-term straight-line amortization over 33 years is appropriate. Due to the fact that the Company's mineral ownership consists of a large number of properties, whose costs are not individually significant, and because virtually all are in the Company's core operating areas, the minerals are being amortized on an aggregate basis (by mineral deed).

When a new well is drilled on the Company's mineral acreage, all of the non-producing mineral costs for the associated mineral tract are transferred to producing minerals and are amortized straight-line over a 20-year period (insignificant fields are amortized over a 10-year period). Management has historically chosen to move non-producing mineral costs in this manner, as it is very difficult for the Company, as a non-operator, to predict well spacing and timing of drilling on the Company's minerals, and future development will deplete these assets over a long period. The straight-line amortization over a 20-year period is appropriate for producing minerals, because current and future development will deplete these assets over a lengthy period that represents the estimated economic life.

**Capitalized Interest** 

During the years ended December 31, 2024 and 2023, no interest was capitalized. Interest of $2,563,268 and $2,362,393, respectively, was charged to expense during those periods.

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**Accrued Liabilities** 

The following table shows the balances for the years ended December 31, 2024 and December 31, 2023, relating to the Company's accrued liabilities:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  Accrued compensation | $853963 | $210379 |
|  Revenues payable | 624837 | 529025 |
|  Accrued ad valorem | 81422 | 39591 |
|  Dividends | 155271 | 113443 |
|  Other | 151437 | 322837 |
|  Total accrued liabilities | $1866930 | $1215275 |

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The increase in accrued compensation in 2024 is due to timing of payment related to the short-term incentive compensation.

**Asset Retirement Obligations** 

The Company owns interests in natural gas and oil properties, which may require expenditures to plug and abandon the wells upon the end of their economic lives. The fair value of legal obligations to retire and remove long-lived assets is recorded in the period in which the obligation is incurred (typically when the asset is installed at the production location). When the liability is initially recorded, this cost is capitalized by increasing the carrying amount of the related properties and equipment. Over time the liability is increased for the change in its present value, and the capitalized cost in properties and equipment is depreciated over the useful life of the remaining asset. The Company does not have any assets restricted for the purpose of settling asset retirement obligations.

**Environmental Costs** 

As the Company is directly involved in the extraction and use of natural resources, it is subject to various federal, state and local provisions regarding environmental and ecological matters. Compliance with these laws may necessitate significant capital outlays. The Company does not believe the existence of current environmental laws, or interpretations thereof, will materially hinder or adversely affect the Company's business operations; however, there can be no assurances of future effects on the Company of new laws or interpretations thereof. Since the Company does not operate any wells where it owns an interest, actual compliance with environmental laws is controlled by the well operators, with the Company being responsible for its proportionate share of the costs involved (on working interest wells only). The Company carries liability and pollution control insurance. However, all risks are not insured due to the availability and cost of insurance.

Environmental liabilities, which historically have not been material, are recognized when it is probable that a loss has been incurred and the amount of that loss is reasonably estimable. Environmental liabilities, when accrued, are based upon estimates of expected future costs. At December 31, 2024 and December 31, 2023, there were no such costs accrued and expenses were immaterial for both years.

**Earnings (Loss) Per Share of Common Stock** 

Earnings (loss) per share is calculated using net income (loss) divided by the weighted average number of common shares outstanding, plus unissued, vested directors' deferred compensation shares during the period.

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**Share-based Compensation** 

The Company recognizes current compensation costs for its Deferred Compensation Plan for Non-Employee Directors (the "Plan"). Compensation cost is recognized for the requisite directors' fees as earned and unissued stock is recorded to each director's account based on the fair market value of the stock at the date earned. The Plan provides that only upon retirement, termination or death of the director or upon a change in control of the Company, the shares accrued under the Plan may be issued to the director.

Restricted stock awards to officers and employees provide for either cliff vesting at the end of three years from the date of the awards or time vesting ratably over a three-year period. These restricted stock awards can be granted based on service time only (time-based), subject to certain share price performance standards (market-based) or subject to company performance standards (performance-based). Restricted stock awards to the non-employee directors provide for annual vesting during the calendar year of the award. The fair value of the awards on the grant date is ratably expensed over the vesting period in accordance with accounting guidance.

**Income Taxes** 

The estimation of amounts of income tax to be recorded by the Company involves interpretation of complex tax laws and regulations, as well as the completion of complex calculations, including the determination of the Company's percentage depletion deduction. Although the Company's management believes its tax accruals are adequate, differences may occur in the future depending on the resolution of pending and new tax regulations. Deferred income taxes are computed using the liability method and are provided on all temporary differences between the financial basis and the tax basis of the Company's assets and liabilities.

The Company's provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from estimated excess federal and Oklahoma percentage depletion, which are permanent tax benefits. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that it exceeds cost depletion which is calculated on a unit-of-production basis.

Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. Federal and Oklahoma excess percentage depletion, when a provision for income taxes is expected for the year, decreases the effective tax rate, while the effect is to increase the effective tax rate when a benefit for income taxes is expected for the year. The benefits of federal and Oklahoma excess percentage depletion and excess tax benefits and deficiencies of stock-based compensation are not directly related to the amount of pre-tax income (loss) recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant. The effective tax rate for the year ended December 31, 2024 was 26% as compared to 25% for the year ended December 31, 2023.

The threshold for recognizing the financial statement effect of a tax position is when it is more likely than not, based on the technical merits, that the position will be sustained by a taxing authority. Recognized tax positions are initially and subsequently measured as the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Subject to statutory exceptions that allow for a possible extension of the assessment period, the Company is no longer subject to U.S. federal, state, and local income tax examinations for fiscal years prior to 2021.

The Company includes interest assessed by the taxing authorities in interest expense and penalties related to income taxes in general and administrative expense on its Statements of Income. For the fiscal years ended December 31, 2024 and 2023, the Company's interest and penalties were not material. The Company does not believe it has any material uncertain tax positions.

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**Recent Accounting Pronouncements** 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires public entities with a single reportable segment to provide all existing segment disclosures required by ASC 280 on an interim and annual basis, including the title and position of the Chief Operating Decision Maker ("CODM"), and primarily requires disclosing of significant segment expenses that are regularly provided to the CODM. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. We have adopted ASU 2023-07 for the fiscal year 2024 annual financial statements and interim condensed financial statements thereafter and have applied this standard retrospectively for all prior periods presented. Refer to Note 15 — Operating Segment of these financial statements.

**Accounting Pronouncements Not Yet Adopted** 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. The guidance increases transparency in the income tax disclosure, primarily related to the rate reconciliation and income taxes paid information. The guidance is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. The Company is currently evaluating the impact this guidance will have on the income tax disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires public entities to disclose additional information about certain expenses included in relevant expense captions on the income statement. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027. Management is evaluating the impact of adoption of ASU 2024-03 on the Company's financial statements and disclosures.

<u>2. LEASES AND COMMITMENTS</u> 

*Assessment of Leases* 

The Company determines if an arrangement is a lease at inception by considering whether (i) explicitly or implicitly identified assets have been deployed in the agreement and (ii) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. As of December 31, 2024, none of the Company's leases were classified as financing leases. Operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company entered into a seven-year lease for office space during the quarter ended March 31, 2020, with a commencement date in August 2020. The associated lease liability and ROU asset at December 31, 2024, were $459,654 and $300,816, respectively. The Company has a lease incentive asset of $132,476, which is included in Other, net on the Company's balance sheets. Additionally, the Company entered into a new five-year lease for office space during the quarter ended March 31, 2022, with a commencement date in July 2022. The associated lease liability and ROU asset at December 31, 2024, were $236,163 and $128,678, respectively. The Company has a lease incentive asset of $95,397, which is included in Other, net on the Company's balance sheets. Lease costs for the years ended December 31, 2024 and 2023 were $287,763 and $304,163, respectively.

ROU assets represent the Company's right to use an underlying asset for the lease term, and operating lease liabilities represent the Company's obligation to make payments arising from the lease. ROU assets are recognized at commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs and prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable, or its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.

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The lease terms may include periods covered by options to extend the lease when it is reasonably certain that the Company will exercise that option and periods covered by options to terminate the lease when it is not reasonably certain that the Company will exercise that option. Lease expense for lease payments will be recognized on a straight-line basis over the lease term. The Company made an accounting policy election to not recognize leases with terms, including applicable options, of less than twelve months on the Company's balance sheets and recognize those lease payments in the Company's Statements of Income on a straight-line basis over the lease term. In the event that the Company's assumptions and expectations change, it may have to revise its ROU assets and operating lease liabilities.

The following table represents the maturities of the operating lease liabilities as of December 31, 2024:

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| | |
|:---|:---|
| 2025 | 270845 |
| 2026 | 277723 |
| 2027 | 186004 |
|  Thereafter |  |
|  Total lease payments | $734572 |
|  Less: Imputed interest | (38755) |
|  Total | $695817 |

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<u>3. REVENUES</u> 

*Natural gas and oil derivative contracts* 

See Note 12 for discussion of the Company's accounting for derivative contracts.

***Revenues from Contracts with Customers***

*Natural gas, oil and NGL sales* 

Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control has transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate.

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***Disaggregation of natural gas, oil and NGL revenues***

The following tables present the disaggregation of the Company's natural gas, oil and NGL revenues for the years ended December 31, 2024 and 2023.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **Royalty Interest** | **Working Interest** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $15958989 | $1494732 | $17453721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 12011909 | 1292015 | 13303924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 1880830 | 1052177 | 2933007 |
|  Natural gas, oil and NGL sales | $29851728 | $3838924 | $33690652 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
|  | **Royalty Interest** | **Working Interest** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $17420360 | $2025900 | $19446260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 12306987 | 1733213 | 14040200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 1866004 | 1183821 | 3049825 |
|  Natural gas, oil and NGL sales | $31593351 | $4942934 | $36536285 |

---

***Performance obligations***

The Company satisfies the performance obligations under its natural gas, oil and NGL sales contracts upon delivery of its production and related transfer of title to purchasers. Upon delivery of production, the Company has a right to receive consideration from its purchasers in amounts that correspond with the value of the production transferred.

***Allocation of transaction price to remaining performance obligations***

*Natural gas, oil and NGL sales* 

As the Company has determined that each unit of product generally represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company has utilized the practical expedient in ASC 606, which permits the Company to allocate variable consideration to one or more but not all performance obligations in the contract if the terms of the variable payment relate specifically to the Company's efforts to satisfy that performance obligation and allocating the variable amount to the performance obligation is consistent with the allocation objective under ASC 606. Additionally, the Company will not disclose variable consideration subject to this practical expedient.

***Prior-period performance obligations and contract balances***

The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company's balance sheets. The difference between the Company's estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the years ended December 31, 2024 and 2023, revenue recognized in these reporting periods related to performance obligations satisfied in prior reporting periods for existing wells was considered a change in estimate.

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As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide. Through cash received on new wells, in the years ended December 31, 2024 and 2023, the Company identified several producing properties on its minerals that had production dates prior to the years ended December 31, 2024 and 2023. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the natural gas, oil and NGL sales on the Company's Statements of Income and on the Company's Balance Sheets in natural gas, oil and NGL sales receivables. In connection with obtaining more relevant information on new wells on Company acreage during the years ended December 31, 2024 and 2023, the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling approximately $0.5 million for the year ended December 31, 2024 related to the production periods before January 1, 2024 and approximately $0.9 million for the year ended December 31, 2023 related to the production periods before January 1, 2023.

<u>4. INCOME TAXES</u> 

The Company's provision for income taxes is detailed as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Current: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $99719 | $190914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 198790 | 240815 |
|  | 298509 | 431729 |
|  Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | 525511 | 3538031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 3167 | 765700 |
|  | 528678 | 4303731 |
|  | $827187 | $4735460 |

---

The difference between the provision for income taxes and the amount which would result from the application of the federal statutory rate to income before provision for income taxes is analyzed below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Provision for income taxes at statutory rate | $661301 | $3917815 |
|  Change in valuation allowance | 3394 | (8067) |
|  Percentage depletion | (375145) | (408729) |
|  State income taxes, net of federal provision | 156818 | 963063 |
|  Restricted stock tax benefit | (59943) | 10664 |
|  Deferred directors' compensation benefit | 28230 | 42018 |
|  Nondeductible compensation | 359545 | 122204 |
|  Law change |  |  |
|  Provision to return adjustments | 40670 | 190914 |
|  Other | 12317 | (94422) |
|  | $827187 | $4735460 |

---

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Deferred tax assets and liabilities, resulting from differences between the financial statement carrying amounts and the tax basis of assets and liabilities, consist of the following at December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial basis in excess of tax basis, principally intangible drilling costs capitalized for financial purposes and expensed for tax purposes | $12099584 | $10825555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts |  | 802712 |
|  Total deferred tax liabilities | 12099584 | 11628267 |
|  Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State net operating loss carry forwards | 221690 | 293701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal net operating loss carry forwards | 1998323 | 2234275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statutory depletion carryover | 239294 | 417090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 220560 | 210447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred directors' compensation | 288962 | 331879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stock expense | 482607 | 653959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts | 172930 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense limitation/carryover | 1101150 | 643067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 96809 | 91874 |
|  Total deferred tax assets | 4822325 | 4876292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State NOL valuation allowance | 9056 | 5662 |
|  Net deferred tax liabilities | $7286315 | $6757637 |

---

The federal net operating loss carry forwards can be carried forward indefinitely. Included in state net operating loss carry forwards at December 31, 2024, the Company had a deferred tax asset of $20,946 related to various state income tax net operating loss ("state NOL") carry-forwards, which begin to expire as of December 31, 2024. The Company has a valuation allowance of $9,056 for the state NOLs, as it is more likely than not that it will not be fully utilized before expiration.

<u>5. DEBT</u> 

On September 1, 2021, the Company entered into a $100,000,000 credit facility (the "Credit Facility") with a group of banks headed by Independent Bank. The Credit Facility has a current borrowing base of $50,000,000 as of December 31, 2024, and a maturity date of September 1, 2028. The Credit Facility is secured by the Company's personal property and at least 75% of the total value of the proved, developed and producing oil and gas properties. The interest rate is based on either (a) SOFR plus an applicable margin ranging from 2.750% to 3.750% per annum based on the Company's Borrowing Base Utilization or (b) the greater of (1) the Prime Rate in effect for such day, or (2) the overnight cost of federal funds as announced by the US Federal Reserve System in effect on such day plus one-half of one percent (0.50%), plus, in each case, an applicable margin ranging from 1.750% to 2.750% per annum based on the Company's Borrowing Base Utilization. The election of Independent Bank prime or SOFR is at the Company's discretion. The interest rate spread from Independent Bank prime or SOFR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from SOFR or the prime rate increases as a larger percent of the borrowing base is advanced. At December 31, 2024, the effective interest rate was 7.88%.

The Company's debt is recorded at the carrying amount on its balance sheets. The carrying amount of the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in Other, net on the Company's balance sheets. Total debt

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issuance cost net of amortization as of December 31, 2024, was $325,218. The debt issuance cost is amortized over the life of the Credit Facility.

Determinations of the borrowing base are made semi-annually (usually June and December) or whenever the banks, in their sole discretion, believe that there has been a material change in the value of the Company's natural gas and oil properties. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain limits on the Company's incurrence of indebtedness, liens, make fundamental changes, and engage in certain transactions with affiliates. The Credit Agreement also restricts the Company's ability to make certain restricted payments if before or after the Restricted Payment (i) the Available Commitment is less than ten percent (10%) of the Borrowing Base or (ii) the Leverage Ratio on a pro forma basis is greater than 2.50 to 1.00. In addition, the Company is required to maintain certain financial ratios, a current ratio (as described in the Credit Agreement) of no less than 1.0 to 1.0 and a funded debt to EBITDAX (as defined in the Credit Agreement) of no more than 3.5 to 1.0 based on the trailing twelve months. At December 31, 2024, the Company was in compliance with the covenants of the Credit Facility, had $29,500,000 outstanding, and had $20,500,000 of borrowing base availability under the Credit Facility. All capitalized terms in this description of the Credit Facility that are not otherwise defined in this Annual Report have the meaning assigned to them in the Credit Agreement.

<u>6. STOCKHOLDERS' EQUITY</u> 

In May 2014, the Board adopted stock repurchase resolutions (the "Repurchase Program") to allow management, at its discretion, to purchase the Company's Common Stock as treasury shares up to an amount equal to the aggregate number of shares of Common Stock awarded pursuant to the 2010 Restricted Stock Plan ("2010 Stock Plan"), as amended, contributed by the Company to its ESOP and credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors.

Effective in May 2018, the Board approved an amendment to the Company's existing stock Repurchase Program. As amended, the Repurchase Program continues to allow the Company to repurchase up to $1.5 million of the Company's Common Stock at management's discretion. The Board added language to clarify that this is intended to be an evergreen program as the repurchase of an additional $1.5 million of the Company's Common Stock is authorized and approved whenever the previous amount is utilized. In addition, the number of shares allowed to be purchased by the Company under the Repurchase Program is no longer capped at an amount equal to the aggregate number of shares of Common Stock (i) awarded pursuant to the 2010 Stock Plan, as amended, (ii) contributed by the Company to its ESOP, and (iii) credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors.

<u>7. EARNINGS PER SHARE ("EPS")</u> 

Basic and diluted earnings per common share is calculated using net income divided by the weighted average number of shares of Common Stock outstanding, including unissued, vested directors' deferred compensation shares of 288,262 and 261,320, respectively, during the years ended December 31, 2024 and 2023. As of December 31, 2024, there were no participating securities.

For the years ended December 31, 2024 and 2023, the Company excluded restricted stock in the diluted EPS calculation that would have been antidilutive. The average shares outstanding of restricted stock excluded from the diluted EPS was 1,088,269 and 753,336, respectively, for the years ended December 31, 2024 and 2023.

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The following table sets forth the computation of earnings (loss) per share.

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Basic EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $2321866 | $13920800 |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares | 36041473 | 35718989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unissued, directors' deferred compensation shares | 288262 | 261320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36329735 | 35980309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic EPS | $0.06 | $0.39 |
|  Diluted EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $2321866 | $13920800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted net income (loss) | 2321866 | 13920800 |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36329735 | 35980309 |
|  Effects of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unvested restricted stock | 82535 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted weighted average shares outstanding | 36412270 | 35980309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted EPS | $0.06 | $0.39 |

---

<u>8. 401K PLAN</u> 

Effective January 1, 2021, the Company established a defined contribution 401K plan. The Company began matching up to 5% of 401K contributions in cash starting January 1, 2021.

Contributions to the plan consisted of:

---

| | |
|:---|:---|
| Year | Amount |
| 2024 | $166954 |
| 2023 | $150843 |

---

<u>9. DEFERRED COMPENSATION PLAN FOR DIRECTORS</u> 

Annually, independent directors may elect to be included in the Company's Deferred Directors' Compensation Plan for Non-Employee Directors (the "Plan"). The Plan provides that each independent director may individually elect to be credited with future unissued shares of Company Common Stock rather than cash for all or a portion of the annual retainers, and may elect to receive shares, when issued, over annual time periods up to ten years. These unissued shares are recorded to each director's deferred compensation account at the closing market price of the shares at each quarter end. Only upon a director's retirement, termination, death or a change-in-control of the Company will the shares recorded for such director under the Plan be issued to the director. The promise to issue such shares in the future is an unsecured obligation of the Company. As of December 31, 2024, there were 292,320 shares recorded under the Plan. The deferred balance outstanding at December 31, 2024, under the Plan was $1,323,760. Expenses totaling $185,082 and $228,017 were charged to the Company's results of operations for the years ended December 31, 2024 and 2023, respectively, and are included in general and administrative expense in the accompanying Statements of Income.

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<u>10. LONG-TERM INCENTIVE PLAN</u> 

In March of 2021, stockholders approved the PHX Minerals Inc. 2021 Long-Term Incentive Plan (the "LTIP"). The LTIP expressly prohibits the payment of dividends or dividend equivalents on any award before the date on which the award vests. Awards under the LTIP will be subject to any clawback or recapture policy that the Company may adopt from time to time or any clawback or recapture provisions set forth in an award agreement.

The fair value of the restricted stock (time-based) was based on the closing price of the shares on their grant date and will be recognized as compensation expense ratably over the vesting period. The fair value of the performance shares (market-based) was estimated on the grant date using a Monte Carlo valuation model that factors in information, including the historical volatility, risk-free interest rate and the probable outcome of the market condition, over the expected life of the performance shares. Vesting of these performance shares is based on the performance of the market price of the Common Stock over the vesting period. Compensation expense for the performance shares is a fixed amount determined at the grant date and is recognized over the vesting period regardless of whether performance shares are awarded at the end of the vesting period. Upon vesting, shares are expected to be issued out of shares held in treasury or the Company's authorized but unissued shares. Compensation expense for the restricted stock awards is recognized in G&A. Forfeitures of awards are recognized when they occur.

On January 31, 2023, the Company granted shares of Common Stock in the form of time-based and market-based restricted stock to the employees and officers of the Company. Officers were awarded 299,900 market-based shares with a fair value on their award date of $1,541,893. Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. Both employees and certain officers were also awarded 97,053 time-based shares with a fair value on the award date of $350,362. The shares issued to employees time-vest ratably over a three-year period ending in December of 2025, and the shares awarded to the officers cliff vest at the end of a three-year period ending in December of 2025. All shares granted on January 31, 2023 have voting rights during the vesting period.

On April 20, 2023, the Company granted 92,544 shares of Common Stock in the form of time-based restricted stock to the non-employee directors of the Company, which had a fair value of $243,390. The shares of restricted stock fully vested in December 2023 and had voting rights during the vesting period.

On December 21, 2023, the Company granted 482,339 shares of Common Stock in the form of time-based and market-based restricted stock to the employees and officers of the Company. Officers were awarded 369,114 market-based shares with a fair value on their award date of $1,678,599. Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. Both employees and certain officers were also awarded 113,225 time-based shares with a fair value on the award date of $381,571. The shares issued to employees time-vest ratably over a three-year period ending in December of 2026, and the shares awarded to the officers cliff vest at the end of a three-year period ending in December of 2026. All shares granted on December 21, 2023 have voting rights during the vesting period.

On December 21, 2023, the Company granted 116,904 shares of Common Stock in the form of time-based restricted stock to the non-employee directors of the Company, which had a fair value of $393,967. The shares of restricted stock fully vested in December 2024 and had voting rights during the vesting period.

On December 16, 2024, the Company granted 465,649 shares of Common Stock in the form of time-based and market-based restricted stock to the employees and officers of the Company. Officers were awarded 347,818 market-based shares with a fair value on their award date of $1,786,802. Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. Both employees and certain officers were also awarded 117,831 time-based shares with a fair value on the award date of $467,790. The shares issued to employees time-vest ratably over a three-year period ending in December of 2027, and the shares awarded to the

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officers cliff vest at the end of a three-year period ending in December of 2027. All shares granted on December 16, 2024 have voting rights during the vesting period.

On December 16, 2024, the Company granted 82,695 shares of Common Stock in the form of time-based restricted stock to the non-employee directors of the Company, which had a fair value of $328,300. The shares of restricted stock fully vest in December 2025 and have voting rights during the vesting period.

The following table summarizes the Company's pre-tax compensation expense for the years ended December 31, 2024 and 2023 related to the Company's market-based, time-based and performance-based restricted stock:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Market-based, restricted stock | $1624134 | $1722814 |
|  Time-based, restricted stock | 663793 | 483096 |
|  Total compensation expense | $2287927 | $2205910 |

---

A summary of the Company's unrecognized compensation cost for its unvested market-based and time-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table:

---

| | | |
|:---|:---|:---|
|  | Unrecognized<br>Compensation<br>Cost | Weighted<br>Average Period<br>(in years) |
|  Market-based, restricted stock | $2605320 | 1.75 |
|  Time-based, restricted stock | 1080882 | 2.02 |
|  Total | $3686202 |  |

---

Upon vesting, shares are expected to be issued out of shares held in treasury or authorized but unissued shares.

A summary of the status of, and changes in, unvested shares of restricted stock awards is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Market-Based<br>Unvested<br>Restricted<br>Awards | Weighted<br>Average<br>Grant-Date<br>Fair Value | Time-Based<br>Unvested<br>Restricted<br>Awards | Weighted<br>Average<br>Grant-Date<br>Fair Value |
|  Unvested shares as of December 31, 2022 | 705835 | $3.55 | 153224 | $5.09 |
|  Granted | 669014 | 4.81 | 419726 | 3.26 |
|  Vested | (303750) | 2.72 | (147495) | 5.17 |
|  Forfeited |  |  | (7919) | 3.41 |
|  Unvested shares as of December 31, 2023 | 1071099 | $4.57 | 417536 | $3.26 |
|  Granted | 458465 | 4.89 | 210651 | 3.92 |
|  Vested | (502608) | 4.18 | (172165) | 3.15 |
|  Forfeited | (21962) | 4.81 | (60658) | 3.36 |
|  Unvested shares as of December 31, 2024 | 1004994 | $4.91 | 395364 | $3.64 |

---

The fair value of the vested shares for the years ended December 31, 2024 and 2023 was $2,558,348 and $1,539,424, respectively.

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<u>11. PROPERTIES AND EQUIPMENT</u> 

*Impairment* 

During the year ended December 31, 2024, the Company recorded impairment of $24,061 related to one field. These assets were written down to their fair market value. The remaining $28,612 of impairment expense was related to leasehold that expired.

During the year ended December 31, 2023, the Company recorded no impairment provisions on producing properties and $38,533 on wells that were assigned back to the operator and the Company wrote off.

A further reduction in natural gas, oil and NGL prices or a decline in reserve volumes may lead to additional impairment in future periods that may be material to the Company.

*Acquisitions* 

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net royalty acres <sup>(1)(2)</sup> | Total Purchase<br> Price <sup>(1)(3)</sup> | % Proved / %<br> Unproved | Area of Interest |
| December 31, 2024 |  |  |  |  |
|  | 363 | $2.5 million | 85% / 15% | Haynesville |
| September 30, 2024 |  |  |  |  |
|  | 325 | $3.0 million | 78% / 22% | Haynesville / SCOOP |
| June 30, 2024 |  |  |  |  |
|  | 96 | $0.9 million | 59% / 41% | Haynesville / SCOOP |
| March 31, 2024 |  |  |  |  |
|  | 146 | $1.4 million | 5% / 95% | SCOOP |
| December 31, 2023 |  |  |  |  |
|  | 325 | $4.3 million | 72% / 28% | Haynesville / SCOOP |
| September 30, 2023 |  |  |  |  |
|  | 974 | $13.4 million | 81% / 19% | Haynesville / SCOOP |
| June 30, 2023 |  |  |  |  |
|  | 151 | $1.8 million | 29% / 71% | Haynesville / SCOOP |
| March 31, 2023 |  |  |  |  |
|  | 912 | $10.8 million | 44% / 56% | Haynesville / SCOOP |

---

(1) Excludes subsequent closing adjustments and insignificant acquisitions.

(2) An estimated net royalty equivalent was used for the unleased minerals included in the net royalty acres.

(3) Table excludes transaction costs of $0.1 million and $0.3 million, respectively, that were
capitalized during the years ended December 31, 2024 and 2023.

All purchases made in fiscal years 2023 and 2024 were of mineral and royalty acreage and were accounted for as asset acquisitions.

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*Divestitures* 

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net mineral acres<sup>(1)</sup>/Wellbores<sup>(2)</sup> | Sale Price <sup>(3)</sup> | Gain/(Loss) <sup>(3)</sup> | Location |
| December 31, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| September 30, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| June 30, 2024 |  |  |  |  |
|  | 1,005 acres | $0.5 million | $0.4 million | TX |
| March 31, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| December 31, 2023 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| September 30, 2023 |  |  |  |  |
|  | 729 acres | $0.3 million | $0.2 million | OK |
| June 30, 2023 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| March 31, 2023 |  |  |  |  |
|  | 755 acres | $0.3 million | $0.3 million | OK / TX |
|  | 267 wellbores | $10.7 million | $4.1 million | OK / TX |

---

(1) Number of net mineral acres sold.

(2) Number of gross wellbores associated with working interests sold.

(3) Excludes subsequent closing adjustments and immaterial divestitures.

*Asset Retirement Obligations* 

The following table shows the activity for the years ended December 31, 2024 and 2023, relating to the Company's asset retirement obligations:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Asset retirement obligations as of beginning of the period | $1062139 | $1916932 |
|  Wells acquired or drilled |  |  |
|  Wells sold or plugged | (8214) | (898231) |
|  Accretion of discount | 43825 | 43438 |
|  Asset retirement obligations as of end of the period | $1097750 | $1062139 |

---

As a non-operator, the Company does not control the plugging of wells in which it has a working interest and is not involved in the negotiation of the terms of the plugging contracts. This estimate relies on information gathered from outside sources as well as relevant information received directly from operators.

<u>12. DERIVATIVES</u> 

The Company has entered into fixed swap contracts and costless collar contracts. These instruments are intended to reduce the Company's exposure to fluctuations in the price of natural gas and oil. Collar contracts set a fixed floor price and a fixed ceiling price and provide payments to the Company if the index price falls below the floor or require payments by the Company if the index price rises above the ceiling. Fixed swap contracts set a fixed price and provide payments to the Company if the index price is below the fixed price or require payments by the Company if the index price is above the fixed price. These contracts cover only a portion of the Company's natural gas and oil production, provide only partial price protection against declines in natural gas and oil prices and may limit the benefit of future increases in prices.

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On September 2, 2021, the Company settled all of its derivative contracts consisting of both swaps and costless collars with BOKF, NA dba Bank of Oklahoma ("BOKF") by paying $8.8 million. On September 3, 2021, the Company entered into new derivative contracts with BP Energy Company ("BP") that had similar terms to the contracts settled with BOKF and received a payment of $8.8 million from BP. The new derivative contracts consisted of all fixed swap contracts and are secured under the Company's Credit Facility with Independent Bank. Management concluded that the financing element of the new derivative contracts with BP was other than insignificant due to the off-market terms of the fixed swap price. Due to the financing element, the Company is required to report all cash flows associated with these derivative contracts as "cash flows from financing activities" in the statement of cash flows. This requirement relates to all cash flows from these derivatives and not just the portion of the cash flows relating to the financing element of the derivative. All of these derivatives with a financing element settled in 2023. The Company's derivative contracts that were in place and unsettled as of December 31, 2024 will settle based on the terms below.

**Derivative contracts in place as of December 31, 2024** 

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| | | | |
|:---|:---|:---|:---|
| Fiscal period | Contract total volume | Index | Contract average price |
|  Natural gas costless collars |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 1,540,000 Mmbtu | NYMEX Henry Hub | $3.27floor/$4.54ceiling |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 1,245,000 Mmbtu | NYMEX Henry Hub | $3.29floor/$4.19ceiling |
|  Natural gas fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 2,200,000 Mmbtu | NYMEX Henry Hub | $3.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 215,000 Mmbtu | NYMEX Henry Hub | $3.44 |
|  Oil Costless Collars |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remaining unsettled from 2024 | 500 Bbls | NYMEX WTI | $67.00floor/$77.00ceiling |
|  Oil fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remaining unsettled from 2024 | 5,100 Bbls | NYMEX WTI | $68.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 57,800 Bbls | NYMEX WTI | $69.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 15,000 Bbls | NYMEX WTI | $68.78 |

---

The Company's fair value of derivative contracts was a net liability of $714,408 as of December 31, 2024, and a net asset of $3,283,587 as of December 31, 2023. Realized and unrealized gains and (losses) are recorded in gains (losses) on derivative contracts on the Company's Statement of Income. Cash receipts in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods.

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| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31,** | **For the Year Ended**<br>**December 31,** |
|  | **2024** | **2023** |
|  Cash received (paid) on settled derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $1877875 | $1516535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps<sup>(1)</sup> | 2616497 | 1344580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars | (52530) | 24330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps<sup>(1)</sup> | (144239) | (328387) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash received (paid) on settled derivative contracts, net | $4297603 | $2557058 |
|  Non-cash gain (loss) on derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $(1940316) | $857675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps | (2138259) | 3119388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars | 14577 | (702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps | 66003 | 326170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash gain (loss) on derivative contracts, net | $(3997995) | $4302531 |
|  Gains (losses) on derivative contracts, net | $299608 | $6859589 |

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(1) For the year ended December 31, 2023, excludes $373,745 of cash paid to settle off-market derivative contracts that are not reflected on the Statements of Income. Total cash paid related to off-market derivatives was $560,162 for the year ended
December 31, 2023 and is reflected in the Financing Activities section of the Statements of Cash Flows. Cash (paid) or received not related to off-market derivatives is reflected in the Operating
Activities section of the Statements of Cash Flows.

The fair value amounts recognized for the Company's derivative contracts executed with the same counterparty under a master netting arrangement may be offset. The Company has the choice to offset or not, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on, or termination of, any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability on the balance sheets. The following table summarizes and reconciles the Company's derivative contracts' fair values at a gross level back to net fair value presentation on the Company's balance sheets at December 31, 2024, and December 31, 2023. The Company has offset all amounts subject to master netting agreements on the Company's balance sheets at December 31, 2024 and December 31, 2023.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2023** | **12/31/2023** | **12/31/2023** | **12/31/2023** |
|  | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts |
|  | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities |
|  Gross amounts recognized | $596514 | $912850 | $398894 | $796966 | $3318046 | $197439 | $344614 | $181634 |
|  Offsetting adjustments | (596514) | (596514) | (398894) | (398894) | (197439) | (197439) | (181634) | (181634) |
|  Net presentation on Balance Sheets | $— | $316336 | $— | $398072 | $3120607 | $— | $162980 | $— |

---

The fair value of derivative assets and derivative liabilities is adjusted for credit risk. The impact of credit risk was immaterial for all periods presented.

<u>13. FAIR VALUE MEASUREMENTS</u> 

Fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels.

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| | |
|:---|:---|
| Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
| Level 2: | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange traded derivatives such as over-the-counter commodity fixed-price swaps and commodity options (i.e. price collars). |

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| | |
|:---|:---|
|  | <br> The Company uses an option pricing valuation model for option derivative contracts that considers various inputs including: future prices, time value, volatility factors, counterparty credit risk and current market and contractual prices for the underlying instruments. The values calculated are then compared to the values given by counterparties for reasonableness. |
| Level 3: | Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and unobservable (or less observable) from objective sources (supported by little or no market activity). |

---

The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** |
|  | Quoted<br>Prices in<br>Active<br>Markets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total Fair<br>Value |
|  Financial Assets (Liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Swaps | $— | $(366215) | $— | $(366215) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Collars | $— | $(348193) | $— | $(348193) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurement at December 31, 2023** | **Fair Value Measurement at December 31, 2023** | **Fair Value Measurement at December 31, 2023** | **Fair Value Measurement at December 31, 2023** |
|  | Quoted<br>Prices in<br>Active<br>Markets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total Fair<br>Value |
|  Financial Assets (Liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Swaps | $— | $1706042 | $— | $1706042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Collars | $— | $1577545 | $— | $1577545 |

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The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** |
|  | Fair Value | Impairment | Fair Value | Impairment |
|  Producing Properties <sup>(a)</sup> | $— | $24061 | $— | $— |

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<sup>(a)</sup> At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment if indicators of impairment existed at such time. If indicators of impairment exist, the Company utilizes estimates of future cash flows of proved properties or fair value (selling price) less cost to sell if the property is held for sale. Significant judgments and assumptions in these assessments include estimates of future natural gas, oil and NGL prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. This table excludes impairments on properties that were written off in the amount of $28,612 and $38,533 for the years ended December 31, 2024 and 2023, respectively. 

At December 31, 2024 and December 31, 2023, the carrying values of cash and cash equivalents, receivables, and payables are considered to be representative of their respective fair values due to the short-term maturities of those instruments. Financial instruments include debt, which the valuation is classified as Level 2 as the carrying amount of the Company's revolving credit facility approximates fair value because the interest rates

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are reflective of market rates. The estimated current market interest rates are based primarily on interest rates currently being offered on borrowings of similar amounts and terms. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the debt agreements.

<u>14. INFORMATION ON NATURAL GAS AND OIL PRODUCING ACTIVITIES</u> 

The natural gas and oil producing activities of the Company are conducted within the contiguous United States (principally in Oklahoma, Texas, Louisiana, Arkansas and North Dakota) and represent substantially all of the business activities of the Company.

The following table shows sales to major purchasers, by percentage, through various operators/purchasers during the years ended December 31, 2024 and 2023.

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Company A | 17% | 14% |
|  Company B | 9% | 13% |
|  Company C | 8% | 3% |

---

The loss of any of these major purchasers of natural gas, oil and NGL production could have a material adverse effect on the ability of the Company to produce and sell its natural gas, oil and NGL production.

<u>15. OPERATING SEGMENT</u> 

An operating segment is defined as a component of a public entity that engages in business activities and for which discrete financial information and operating results are available and regularly reviewed by the CODM in deciding how to allocate resources and assess performance. The Company's Chief Executive Officer has been determined to be its CODM. The CODM manages the Company's business activities in a single operating and reportable segment focused on managing the Company's mineral portfolio and growing its mineral positions in its core focus areas. The financial information and operating results, including net income and total assets, used by the CODM to allocate resources, assess performance, and make key operating decisions are the same as that which is reported by the Company on the Income Statement and Balance Sheet, and the CODM does not use further disaggregated expenses or assets in deciding how to allocate resources and assess performance.

<u>16. SUBSEQUENT EVENTS</u> 

Subsequent to December 31, 2024, the Company closed on the divestiture of 165,326 net mineral acres for approximately $8.0 million and paid down an additional $9.8 million in debt. Additionally, the Company announced a $0.04 per share quarterly dividend, payable on March 28, 2025, to stockholders of record on March 17, 2025.

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PHX Minerals Inc.

Supplementary Information

<u>SUPPLEMENTARY INFORMATION ON NATURAL GAS, OIL AND NGL RESERVES (UNAUDITED)</u>

**Aggregate Capitalized Costs** 

The aggregate amount of capitalized costs of natural gas and oil properties and related accumulated depreciation, depletion and amortization as of December 31, 2024 and December 31, 2023 is as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2024** | **December 31,<br>2023** |
|  Producing properties | $223043942 | $209082847 |
|  Non-producing minerals | 50156199 | 56670341 |
|  Non-producing leasehold | 1650712 | 2150104 |
|  | 274850853 | 267903292 |
|  Accumulated depreciation, depletion and amortization | (122030459) | (113506928) |
|  Net capitalized costs | $152820394 | $154396364 |

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**Costs Incurred** 

For the years ended December 31, 2024 and 2023, the Company incurred the following costs in natural gas and oil producing activities:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Property acquisition costs | $7834849 | $30435595 |
|  Development costs | 94022 | 113967 |
|  | $7928871 | $30549562 |

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**Estimated Quantities of Proved Natural Gas, Oil and NGL Reserves** 

The following unaudited information regarding the Company's natural gas, oil and NGL reserves is presented pursuant to the disclosure requirements promulgated by the SEC and the FASB*.*

Proved natural gas and oil reserves are those quantities of natural gas and oil which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations – prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project within a reasonable time. The area of the reservoir considered as proved includes: (i) the area identified by drilling and limited by fluid contacts, if any, and (ii) adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible natural gas or oil

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on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons as seen in a well penetration unless geoscience, engineering or performance data and reliable technology establishes a lower contact with reasonable certainty. Where direct observation from well penetrations has defined a highest known oil elevation and the potential exists for an associated natural gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering or performance data and reliable technology establish the higher contact with reasonable certainty. Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when: (i) successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and (ii) the project has been approved for development by all necessary parties and entities, including governmental entities.

The independent consulting petroleum engineering firm of Cawley, Gillespie and Associates, Inc. (CG&A) of Fort Worth, Texas, prepared the Company's natural gas, oil and NGL reserves estimates as of December 31, 2024 and December 31, 2023.

The Company's net proved natural gas, oil and NGL reserves, which are located in the contiguous United States, as of December 31, 2024 and December 31, 2023, have been estimated by the Company's Independent Consulting Petroleum Engineering Firm. Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering and evaluation principles and techniques that are in accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled "Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (Revision as of February 19, 2007)." The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data and production history.

All of the reserve estimates are reviewed and approved by the Company's Vice President of Engineering. The Vice President of Engineering, and internal staff work closely with the Independent Consulting Petroleum Engineers to ensure the integrity, accuracy and timeliness of data furnished to them for their reserves estimation process. The Company provides historical information (such as ownership interest, gas and oil production, well test data, commodity prices, operating costs, handling fees and development costs) for all properties to the Independent Consulting Petroleum Engineers. Throughout the year, the Vice President of Engineering and internal staff meet regularly with representatives of the Independent Consulting Petroleum Engineers to review properties and discuss methods and assumptions.

Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering and evaluation principles and techniques that are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC and with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers (SPE) entitled "Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (revised June 2019) Approved by the SPE Board on 25 June 2019" and in Monograph 3 and Monograph 4 published by the Society of Petroleum Evaluation Engineers. The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data, and production history. Based on the current stage of field development, production performance, development plans and analyses of areas offsetting existing wells with test or production data, reserves were classified as proved. The proved undeveloped reserves were estimated for locations that have been permitted, are currently drilling, are drilled but not yet completed, or locations where the operator has indicated to the Company its intention to drill.

For the evaluation of unconventional reservoirs, a performance-based methodology integrating the appropriate geology and petroleum engineering data was utilized. Performance-based methodology primarily

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includes (1) production diagnostics, (2) decline-curve analysis, and (3) model-based analysis (if necessary, based on availability of data). Production diagnostics include data quality control, identification of flow regimes and characteristic well performance behavior. These analyses were performed for all well groupings (or type-curve areas). Characteristic rate-decline profiles from diagnostic interpretation were translated to modified hyperbolic rate profiles, including one or multiple b-exponent values followed by an exponential decline. Based on the availability of data, model-based analysis may be integrated to evaluate long-term decline behavior, the effect of dynamic reservoir and fracture parameters on well performance, and complex situations sourced by the nature of unconventional reservoirs. In the evaluation of undeveloped reserves, type-well analysis was performed using well data from analogous reservoirs for which more complete historical performance data were available.

Accordingly, these estimates should be expected to change, and such changes could be material and occur in the near term as future information becomes available.

Net quantities of proved, developed and undeveloped natural gas, oil and NGL reserves are summarized as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Proved Reserves | Proved Reserves | Proved Reserves | Proved Reserves |
|  | Natural<br>Gas<br>(MMcf) | Oil<br>(MBbls) | NGL<br>(MBbls) | Total<br>MMcfe |
|  December 31, 2022 | 61205 | 1372 | 1709 | 79689 |
|  Revisions of previous estimates | (4997) | 30 | (86) | (5335) |
|  Acquisitions | 7323 | 35 | 20 | 7653 |
|  Divestitures | (7296) | (340) | (145) | (10209) |
|  Extensions, discoveries and other additions | 7211 | 158 | 102 | 8778 |
|  Production | (7457) | (183) | (137) | (9379) |
|  December 31, 2023 | 55989 | 1072 | 1463 | 71197 |
|  Revisions of previous estimates | (4947) | 10 | (46) | (5209) |
|  Acquisitions | 2367 | 13 | 9 | 2499 |
|  Divestitures | (5) | (2) |  | (18) |
|  Extensions, discoveries and other additions | 3873 | 132 | 56 | 5049 |
|  Production | (7970) | (178) | (134) | (9841) |
|  December 31, 2024 | 49307 | 1047 | 1348 | 63677 |

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The prices used to calculate reserves and future cash flows from reserves for natural gas, oil and NGL, respectively, were as follows: December 31, 2024 - $2.05/Mcf, $73.48/Bbl, $20.97/Bbl; December 31, 2023 - $2.67/Mcf, $76.85/Bbl, $21.98/Bbl; December 31, 2022 - $6.52/Mcf, $92.74/Bbl, $39.18/Bbl.

The changes in reserves at December 31, 2023, as compared to December 31, 2022, are attributable to:

Revisions of previous estimates from December 31, 2022 to December 31, 2023 that were primarily the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative pricing revisions of 4.8 Bcfe due to natural gas and oil wells reaching their economic limits earlier
than was projected in 2022 due to lower commodity prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative performance revisions of 0.5 Bcfe principally due to steeper decline and lower than expected volumes in
wells located in an area with gas takeaway constraints located in the Haynesville Shale.

Acquisitions and divestitures were the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The sale of 10.2 Bcfe proved developed, consisting predominately of working interest properties in the Eagle Ford
Shale play in Texas and the Arkoma Stack play and Western Anadarko Basin in Oklahoma.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The acquisition of 7.7 Bcfe, predominately of royalty interest properties in the active drilling programs of the
Haynesville Shale play in east Texas and western Louisiana and the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma, of which 3.4 Bcfe were proved developed and 4.3 Bcfe were proved undeveloped.

Extensions, discoveries and other additions from December 31, 2022 to December 31, 2023 that are principally attributable to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reserve extensions, discoveries and other additions of 8.8 Bcfe (comprised of 1.0 Bcfe proved developed and 7.8
Bcfe proved undeveloped reserves) principally resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The Company's royalty interest ownership in the ongoing development of unconventional natural gas,
utilizing horizontal drilling, in the Haynesville Shale play of East Texas and Western Louisiana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The Company's royalty interest ownership in the ongoing development of unconventional natural gas, oil
and NGL utilizing horizontal drilling in the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma.

And production of 9.4 Bcfe from the Company's natural gas and oil properties.

The changes in reserves at December 31, 2024, as compared to December 31, 2023, are attributable to:

Revisions of previous estimates from December 31, 2023 to December 31, 2024 that were primarily the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative pricing revisions of 4.9 Bcfe primarily due to natural gas and oil wells reaching their economic limits
earlier than was projected in 2023 due to lower commodity prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative performance revisions of 0.3 Bcfe principally due to a pad of working interest wells where production
did not return to prior rates post workover.

Acquisitions and divestitures were the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The acquisition of 2.5 Bcfe, predominately of royalty interest properties in the active drilling programs of the
Haynesville Shale play in east Texas and western Louisiana and the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma, of which 1.2 Bcfe were proved developed and 1.3 Bcfe were proved undeveloped.

Extensions, discoveries and other additions from December 31, 2023 to December 31, 2024 that are principally attributable to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reserve extensions, discoveries and other additions of 5.0 Bcfe (comprised of 2.0 Bcfe proved developed and 3.0
Bcfe proved undeveloped reserves) principally resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The Company's royalty interest ownership in the ongoing development of unconventional natural gas,
utilizing horizontal drilling, in the Haynesville Shale play of East Texas and Western Louisiana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The Company's royalty interest ownership in the ongoing development of unconventional natural gas, oil
and NGL utilizing horizontal drilling in the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma.

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And production of 9.8 Bcfe from the Company's natural gas and oil properties.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Proved Developed Reserves | Proved Developed Reserves | Proved Developed Reserves | Proved Undeveloped Reserves | Proved Undeveloped Reserves | Proved Undeveloped Reserves |
|  | Natural Gas<br>(MMcf) | Oil<br>(MBbls) | NGL<br>(MBbls) | Natural Gas<br>(MMcf) | Oil<br>(MBbls) | NGL<br>(MBbls) |
|  December 31, 2023 | 44480 | 937 | 1363 | 11509 | 134 | 100 |
|  December 31, 2024 | 42549 | 948 | 1322 | 6758 | 99 | 26 |

---

The following details the changes in proved undeveloped reserves for 2024 (MMcfe):

---

| | |
|:---|:---|
|  Beginning proved undeveloped reserves | 12914 |
|  Proved undeveloped reserves transferred to proved developed | (8502) |
|  Revisions | (1152) |
|  Extensions and discoveries | 2985 |
|  Sales |  |
|  Purchases | 1261 |
|  Ending proved undeveloped reserves | 7506 |

---

During fiscal year 2024, total net PUD reserves decreased by 5.4 Bcfe. In fiscal year 2024, a total of 8.5 Bcfe (66% of the beginning balance) was transferred to proved developed. This decrease was partially offset by 3.1 Bcfe (24% of the beginning balance) of positive changes to PUD reserves consisting of acquisitions of 1.3 Bcfe in the Haynesville Shale in Texas and Louisiana and Meramec and Woodford SCOOP play in Oklahoma, additions and extensions of 3.0 Bcfe within the active drilling program areas of (i) the Haynesville Shale in Texas and Louisiana, (ii) the SCOOP Mississippi and Woodford in Oklahoma, (iii) the STACK Meramec and Woodford in Oklahoma, (iv) the Arkoma Woodford in Oklahoma and (v) the Bakken in North Dakota, and negative revisions of 1.2 Bcfe primarily due to permit expirations, as our PUD reserves consist only of wells that are permitted, drilling, or waiting on completion.

The Company anticipates that all current PUD locations will be drilled and converted to PDP within five years of the date they were added. However, PUD locations and associated reserves, which are no longer projected to be drilled within five years from the date they were added to PUD reserves, will be removed as revisions at the time that determination is made. In the event that there are undrilled PUD locations at the end of the five-year period, the Company will remove the reserves associated with those locations from proved reserves as revisions.

**Standardized Measure of Discounted Future Net Cash Flows** 

Accounting Standards prescribe guidelines for computing a standardized measure of future net cash flows and changes therein relating to estimated proved reserves. The Company has followed these guidelines, which are briefly discussed below.

Future cash inflows and future production and development costs are determined by applying the trailing unweighted 12-month arithmetic average of the first-day-of-the-month individual product prices and year-end costs to the estimated quantities of natural gas, oil and NGL to be produced. Actual future prices and costs may be materially higher or lower than the unweighted 12-month arithmetic average of the first-day-of-the-month individual product prices and year-end costs used. For each year, estimates are made of quantities of proved reserves and the future periods during which they are expected to be produced, based on continuation of the economic conditions applied for such year.

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Estimated future income taxes are computed using current statutory income tax rates, including consideration for the current tax basis of the properties and related carry forwards, giving effect to permanent differences and tax credits. The resulting future net cash flows are reduced to present value amounts by applying a 10% annual discount factor. The assumptions used to compute the standardized measure are those prescribed by the FASB and, as such, do not necessarily reflect the Company's expectations of actual revenue to be derived from those reserves nor their present worth. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these estimates affect the valuation process.

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Future cash inflows | $206317618 | $264083714 |
|  Future production costs | (60622892) | (67959181) |
|  Future development and asset retirement costs | (1307480) | (1224333) |
|  Future income tax expense | (7979227) | (18437730) |
|  Future net cash flows | 136408019 | 176462470 |
|  10% annual discount | (60153131) | (76071084) |
|  Standardized measure of discounted future net cash flows | $76254888 | $100391386 |

---

Changes in the standardized measure of discounted future net cash flows are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Beginning of year | $100391386 | $197489635 |
|  Changes resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of natural gas, oil and NGL, net of production costs | (26245153) | (29380772) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in sales prices and production costs | (16835611) | (112688455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in future development and asset retirement costs | (41631) | 171076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions and discoveries | 9694126 | 13586306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of quantity estimates | (8661885) | (16554366) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions (divestitures) of reserves-in-place | 2540234 | (19144486) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount | 11001794 | 24132484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in income taxes | 6239421 | 34208654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in timing and other, net | (1827793) | 8571310 |
|  Net change | (24136498) | (97098249) |
|  End of year | $76254888 | $100391386 |

---

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PHX MINERALS INC.

CONDENSED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | March 31, 2025 | December 31, 2024 |
| **Assets** | (unaudited) |  |
|  Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $2536133 | $2242102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil, and NGL sales receivables (net of $0 allowance for uncollectable accounts) | 6577696 | 6128954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refundable income taxes | 80621 | 328560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 721062 | 857317 |
|  Total current assets | 9915512 | 9556933 |
|  Properties and equipment at cost, based on successful efforts accounting: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Producing natural gas and oil properties | 223655459 | 223043942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-producing natural gas and oil properties | 45544346 | 51806911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1361064 | 1361064 |
|  | 270560869 | 276211917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less accumulated depreciation, depletion and amortization | (120293049) | (122835668) |
|  Net properties and equipment | 150267820 | 153376249 |
|  Operating lease right-of-use assets | 392263 | 429494 |
|  Other, net | 509837 | 553090 |
|  Total assets | $161085432 | $163915766 |
|  **Liabilities and Stockholders' Equity** |  |  |
|  Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $656711 | $804693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts, net | 3178706 | 316336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of operating lease liability | 252436 | 247786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other | 1420856 | 1866930 |
|  Total current liabilities | 5508709 | 3235745 |
|  Long-term debt | 19750000 | 29500000 |
|  Deferred income taxes, net | 8318416 | 7286315 |
|  Asset retirement obligations | 1098536 | 1097750 |
|  Derivative contracts, net | 480401 | 398072 |
|  Operating lease liability, net of current portion | 383070 | 448031 |
|  Total liabilities | 35539132 | 41965913 |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Stock, $0.01666 par value; 75,000,000 shares authorized and 36,796,496 issued at March 31, 2025; 75,000,000 shares authorized and 36,796,496 issued at December 31, 2024 | 613030 | 613030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital in excess of par value | 44749269 | 44029492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred directors' compensation | 1313492 | 1323760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 79940318 | 77073332 |
|  | 126616109 | 123039614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less treasury stock, at cost; 274,478 shares at March 31, 2025, and 279,594 shares at December 31, 2024 | (1069809) | (1089761) |
|  Total stockholders' equity | 125546300 | 121949853 |
|  Total liabilities and stockholders' equity | $161085432 | $163915766 |

---

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

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PHX MINERALS INC.

CONDENSED STATEMENTS OF INCOME

---

| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2025 | 2024 |
| Revenues: | (unaudited) | (unaudited) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales | $10433287 | $7090208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonuses and rental income | 328203 | 151718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on derivative contracts | (3163178) | 627492 |
|  | $7598312 | $7869418 |
|  Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease operating expenses | 273713 | 332409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation, gathering and marketing | 1103966 | 843504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes | 422787 | 392327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 2430207 | 2356326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 452051 | 714886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3754248 | 3347037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses (gains) on asset sales and other | (6519747) | 24212 |
|  Total costs and expenses | 1917225 | 8010701 |
|  Income (loss) before provision for income taxes | 5681087 | (141283) |
|  Provision for income taxes | 1297205 | 42332 |
|  Net income (loss) | $4383882 | $(183615) |
|  Basic earnings (loss) per common share (Note 4) | $0.12 | $(0.01) |
|  Diluted earnings (loss) per common share (Note 4) | $0.12 | $(0.01) |
|  Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 36808766 | 36303392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 38009410 | 36303392 |
|  Dividends per share of common stock paid in period | $0.0400 | $0.0300 |

---

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

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PHX MINERALS INC.

STATEMENTS OF STOCKHOLDERS' EQUITY

Three Months Ended March 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Common Stock | Common Stock | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Shares | Amount | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  Balances at December 31, 2024 | 36796496 | $613030 | $44029492 | $1323760 | $77073332 | (279594) | $(1089761) | $121949853 |
|  Net income (loss) |  |  |  |  | 4383882 |  |  | 4383882 |
|  Restricted stock award expense |  |  | 681723 |  |  |  |  | 681723 |
|  Dividends declared |  |  |  |  | (1516896) |  |  | (1516896) |
|  Distribution of deferred directors' compensation |  |  | 38054 | (58006) |  | 5116 | 19952 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 47738 |  |  |  | 47738 |
|  Balances at March 31, 2025 | 36796496 | $613030 | $44749269 | $1313492 | $79940318 | (274478) | $(1069809) | $125546300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(unaudited) |  |  |  |  |  |  |  |  |

---

Three Months Ended March 31, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Common Stock | Common Stock | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Shares | Amount | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  Balances at December 31, 2023 | 36121723 | $601788 | $41676417 | $1487590 | $80022839 | (131477) | $(557220) | $123231414 |
|  Net income (loss) |  |  |  |  | (183615) |  |  | (183615) |
|  Restricted stock award expense |  |  | 656656 |  |  |  |  | 656656 |
|  Dividends declared |  |  |  |  | (1121314) |  |  | (1121314) |
|  Distribution of deferred directors' compensation |  |  | 70344 | (107199) |  | 8692 | 36855 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 45132 |  |  |  | 45132 |
|  Balances at March 31, 2024 | 36121723 | $601788 | $42403417 | $1425523 | $78717910 | (122785) | $(520365) | $122628273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(unaudited) |  |  |  |  |  |  |  |  |

---

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

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PHX MINERALS INC.

CONDENSED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2025 | 2024 |
| **Operating Activities** | (unaudited) | (unaudited) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $4383882 | $(183615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 2430207 | 2356326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for deferred income taxes | 1032101 | 25332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain from leasing fee mineral acreage | (328203) | (151718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from leasing fee mineral acreage | 332331 | 151718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (gain) loss on sales of assets | (6625686) | (66500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors' deferred compensation expense | 47738 | 45132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (gain) loss on derivative contracts | 3163178 | (627492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash receipts (payments) on settled derivative contracts | (218479) | 1669309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stock award expense | 681723 | 656656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 25333 | 35731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash provided (used) by changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales receivables | (448742) | 1216455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 202745 | 207497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (145867) | 67986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable | 247939 | 378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current assets | 58642 | 56338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | (562402) | (212882) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | (107442) | 5430266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 4276440 | 5246651 |
|  **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (6336) | (7440) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of minerals and overriding royalty interests | (630296) | (1406248) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from sales of assets | 7865103 | 66500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | 7228471 | (1347188) |
|  **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings under Credit Facility |  | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of loan principal | (9750000) | (3000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of dividends | (1460880) | (1079968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | (11210880) | (3079968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in cash and cash equivalents | 294031 | 819495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents at beginning of period | 2242102 | 806254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents at end of period | $2536133 | $1625749 |
|  **Supplemental Disclosures of Cash Flow Information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid (net of capitalized interest) | $503184 | $733799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid (net of refunds received) | $17165 | $16623 |
|  **Supplemental Schedule of Noncash Investing and Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends declared and unpaid | $56016 | $41346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross additions to properties and equipment | $568026 | $1406743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in accounts receivable for properties and equipment additions | 68606 | 6945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures and acquisitions | $636632 | $1413688 |

---

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

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PHX MINERALS INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1: Basis of Presentation and Accounting Principles

*Basis of Presentation* 

The accompanying unaudited condensed financial statements of PHX Minerals Inc. have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC. Management believes that all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows for the periods have been included. All such adjustments are of a normal recurring nature. The results are not necessarily indicative of those to be expected for a full fiscal year.

Certain amounts and disclosures have been condensed or omitted from these financial statements pursuant to the rules and regulations of the SEC. Therefore, these condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Unless indicated otherwise or the context requires, the terms "we," "our," "us," "PHX" or the "Company" refer to PHX Minerals Inc.

Accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the Company's financial statements upon adoption.

NOTE 2: Revenues

***Revenues from contracts with customers***

*Natural gas, oil and NGL sales* 

Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control of the product has been transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate.

***Disaggregation of natural gas, oil and NGL revenues***

The following table presents the disaggregation of the Company's natural gas, oil and NGL revenues for the three months ended March 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 |
|  | Royalty Interest | Working Interest | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $6038625 | $611235 | $6649860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 2711565 | 275141 | 2986706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 538234 | 258487 | 796721 |
|  Natural gas, oil and NGL sales | $9288424 | $1144863 | $10433287 |

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##### [**Table of Contents**](#toc)

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| | | | |
|:---|:---|:---|:---|
|  | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2024 |
|  | Royalty Interest | Working Interest | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $3201897 | $363777 | $3565674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 2518321 | 313875 | 2832196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 456056 | 236282 | 692338 |
|  Natural gas, oil and NGL sales | $6176274 | $913934 | $7090208 |

---

***Prior-period performance obligations and contract balances***

The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company's balance sheets. The difference between the Company's estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the quarters ended March 31, 2025 and 2024, revenue recognized during the reporting period related to performance obligations satisfied in prior reporting periods for existing wells was considered a change in estimate.

As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide. Through cash received on new wells, in the quarters ended March 31, 2025 and 2024, the Company identified several producing properties on its minerals that had production dates prior to the quarters ended March 31, 2025 and 2024. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the natural gas, oil and NGL sales on the Company's Statements of Income and on the Company's Balance Sheets in natural gas, oil and NGL sales receivables.

In connection with obtaining more relevant information on new wells on Company acreage during the quarters ended March 31, 2025 and 2024, the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $204,141 for the quarter ended March 31, 2025, all of which related to the production periods during the fiscal year ended December 31, 2024, and the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $447,284 for the quarter ended March 31, 2024, of which $23,159 related to the production periods before January 1, 2023 and $424,125 related to the fiscal year ended December 31, 2023.

***Lease bonus revenue***

The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company's contract with a third party and generally conveys the rights to any natural gas, oil or NGL discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in ASC 932 (Extractive Activities—Oil and Gas), and upon leasing, it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral interests being treated as a gain. The excess of lease bonus above the mineral interests basis is shown in the lease bonuses and rental income line item on the Company's Statements of Income.

***Natural gas and oil derivative contracts***

See Note 9 for discussion of the Company's accounting for derivative contracts.

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NOTE 3: Income Taxes

The Company's provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from excess federal and Oklahoma percentage depletion, which are permanent tax benefits. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that exceeds cost depletion, which is calculated on a unit-of-production basis. The Company completes an evaluation of the expected realization of the Company's gross deferred tax assets each quarter. Excess tax benefits and deficiencies of stock-based compensation are recognized as provision (benefit) for income taxes in the Company's Statements of Income.

Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. The federal and Oklahoma excess percentage depletion estimates will be updated throughout the year until finalized with detailed well-by-well calculations at fiscal year-end. Depending upon whether a provision for income taxes or a benefit for income taxes is expected for a year, federal and Oklahoma excess percentage depletion will either decrease or increase the effective tax rate, respectively. The benefits of federal and Oklahoma excess percentage depletion and excess tax benefits and deficiencies of stock-based compensation are not directly related to the amount of pre-tax income (loss) recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant.

As of March 31, 2025, the Company completed an evaluation of the expected realization of its gross deferred tax assets. As a result of its evaluation, the Company concluded a valuation allowance was required for certain state deferred tax assets, and for the quarter ended March 31, 2025, there was no change in the Company's valuation allowance of $9,056 from December 31, 2024. The Company's effective tax rate for the three months ended March 31, 2025 was a 23% provision as compared to a (30%) provision for the three months ended March 31, 2024. The change in effective tax rate resulted primarily from the increase in net income in the quarter ended March 31, 2025.

NOTE 4: Basic and Diluted Earnings (Loss) Per Common Share ("EPS")

Basic earnings (loss) per share of Common Stock is calculated using net income (loss) divided by the weighted average number of voting shares of Common Stock outstanding, including unissued, vested directors' deferred compensation shares, during the period. Diluted earnings (loss) per share of Common Stock is calculated using net income (loss) divided by the weighted average number of voting shares of Common Stock outstanding, including unissued, vested directors' deferred compensation shares and any other potentially dilutive shares of Common Stock, during the period. There were no participating securities at March 31, 2025.

For the three months ended March 31, 2025 and 2024, the Company excluded restricted stock in the diluted EPS calculation that would have been antidilutive. The average number of restricted stock excluded from the diluted EPS was 849,439 and 946,350 for the three months ended March 31, 2025 and 2024, respectively.

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The following table presents a reconciliation of the components of basic and diluted EPS.

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| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2025 | 2024 |
|  Basic EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $4383882 | $(183615) |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares | 36521563 | 35998651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unissued, directors' deferred compensation shares | 287203 | 304741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36808766 | 36303392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic EPS | $0.12 | $(0.01) |
|  Diluted EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $4383882 | $(183615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted net income (loss) | 4383882 | (183615) |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36808766 | 36303392 |
|  Effects of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unvested restricted stock | 1200644 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted weighted average shares outstanding | 38009410 | 36303392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted EPS | $0.12 | $(0.01) |

---

NOTE 5: Long-Term Debt

The Company has a $100,000,000 credit facility (the "Credit Facility") with a syndicate of banks led by Independent Bank pursuant to a credit agreement entered into in September 2021 (as amended, the "Credit Agreement"). The Credit Facility had a borrowing base of $50,000,000 and a maturity date of September 1, 2028 as of March 31, 2025. The Credit Facility is secured by the Company's personal property and at least 75% of the total value of the proved, developed and producing oil and gas properties. The interest rate is based on either (a) SOFR plus an applicable margin ranging from 2.750% to 3.750% per annum based on the Company's Borrowing Base Utilization or (b) the greater of (1) the Prime Rate in effect for such day, or (2) the overnight cost of federal funds as announced by the U.S. Federal Reserve System in effect on such day plus one-half of one percent (0.50%), plus, in each case, an applicable margin ranging from 1.750% to 2.750% per annum based on the Company's Borrowing Base Utilization. The election of Independent Bank prime or SOFR is at the Company's discretion. The interest rate spread from Independent Bank prime or SOFR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from SOFR or the prime rate increases as a larger percent of the borrowing base is advanced. At March 31, 2025, the effective interest rate was 7.54%.

The Company's debt is recorded at the carrying amount on its balance sheets. The carrying amount of the debt under the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in "Other, net" on the Company's balance sheets. Total debt issuance cost, net of amortization, as of March 31, 2025 was $303,373. The debt issuance cost is amortized over the life of the Credit Facility.

Determinations of the borrowing base under the Credit Facility are made semi-annually (usually in June and December) or whenever the lending banks, in their sole discretion, believe that there has been a material change

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in the value of the Company's natural gas and oil properties. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain restrictions on the Company's ability to incur debt, grant liens, make fundamental changes and engage in certain transactions with affiliates. The Credit Facility also restricts the Company's ability to make certain restricted payments if before or after the Restricted Payment (i) the Available Commitment is less than ten percent (10%) of the Borrowing Base or (ii) the Leverage Ratio on a pro forma basis is greater than 2.50 to 1.00. In addition, the Company is required to maintain certain financial ratios, a current ratio (as described in the Credit Facility) of no less than 1.0 to 1.0 and a funded debt to EBITDAX of no more than 3.5 to 1.0 based on the trailing twelve months. At March 31, 2025, the Company was in compliance with the covenants of the Credit Facility, had $19,750,000 in outstanding borrowings and had $30,250,000 available for borrowing under the Credit Facility. All capitalized terms in this description of the Credit Facility that are not otherwise defined in this Form 10-Q have the meaning assigned to them in the Credit Agreement.

NOTE 6: Deferred Compensation Plan for Non-Employee Directors

Annually, non-employee directors may elect to be included in the Deferred Compensation Plan for Non-Employee Directors. This plan provides that each outside director may individually elect to be credited with future unissued shares of Company Common Stock (each such share, a "Deferred Stock Unit") rather than cash for all or a portion of their annual retainers and Board and committee meeting fees. Directors receive dividends on Deferred Stock Units in the form of additional Deferred Stock Units. These unissued shares are recorded to each director's deferred compensation account at the closing market price of the shares on the payment dates of the annual retainers and on the dividend payment date, as applicable. Only upon a director's retirement, termination or death or a change-in-control of the Company will the shares representing Deferred Stock Units recorded for such director be issued under this plan. Directors may elect to receive shares, when issued, over annual time periods of up to ten years. The promise to issue such shares in the future is an unsecured obligation of the Company.

NOTE 7: Long Term Incentive Plan

Compensation expense for restricted stock awards is recognized in G&A. Forfeitures of awards are recognized at the time of forfeiture. The following table summarizes the Company's pre-tax compensation expense for the three months ended March 31, 2025 and 2024 related to the Company's market-based and time-based restricted stock:

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
|  | 2025 | 2024 |
|  Market-based, restricted stock | $511350 | $480676 |
|  Time-based, restricted stock | 170373 | 175980 |
|  Total compensation expense | $681723 | $656656 |

---

A summary of the Company's unrecognized compensation cost for its unvested market-based and time-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized is shown in the following table:

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| | | |
|:---|:---|:---|
|  | As of March 31, 2025 | As of March 31, 2025 |
|  | Unrecognized<br>Compensation Cost | Weighted Average<br>Period (in years) |
|  Market-based, restricted stock | $2093970 | 1.87 |
|  Time-based, restricted stock | 910509 | 1.85 |
|  Total | $3004479 |  |

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NOTE 8: Properties and Equipment

*Acquisitions* 

The Company made the following property acquisitions during the three-month periods ended March 31, 2025 and 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net royalty<br>acres <sup>(1)(2)</sup> | Total Purchase<br>Price <sup>(1)</sup> | % Proved / %<br>Unproved | Area of Interest |
|  March 31, 2025 | 50 | $0.6 million | 90% /10% | SCOOP |
|  March 31, 2024 | 146 | $1.4 million | 5% /95% | SCOOP |

---

(1) Excludes subsequent closing adjustments and insignificant acquisitions.

(2) An estimated net royalty equivalent was used for the unleased minerals included in the net royalty acres.

All purchases made in the 2025 and 2024 quarters were for mineral and royalty acreage and were accounted for as asset acquisitions.

*Divestitures* 

The Company made the following property divestitures during the three-month periods ended March 31, 2025 and 2024. Revenue and expenses recognized between the effective date and closing date of divestitures are recorded in the Operating Activities section in the Statements of Cash Flows.

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net mineral acres<sup>(1)</sup>/<br> Wellbores<sup>(2)</sup> | Sale Price <sup>(3)</sup> | Gain/(Loss) <sup>(3)</sup> | Location |
|  March 31, 2025 |  |  |  |  |
|  | 165,326 acres | $7.9 million | $6.7 million | OK, AR, CO, FL, IN, KS, MT,<br>ND, NM, SD, TX |
|  March 31, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |

---

(1) Number of net mineral acres sold.

(2) Number of gross wellbores associated with working interests sold.

(3) Excludes subsequent closing adjustments and insignificant divestitures.

*Natural Gas, Oil and NGL Reserves* 

Management considers the estimation of the Company's natural gas, oil and NGL reserves to be the most significant of its judgments and estimates. Changes in natural gas, oil and NGL reserve estimates affect the Company's calculation of DD&A, provision for retirement of assets and assessment of the need for asset impairments. On an annual basis, the Company's Independent Consulting Petroleum Engineer, with assistance from Company staff, prepares estimates of natural gas, oil and NGL reserves based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geologic and geophysical information. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations utilizing appropriate prices for the current period. The estimated natural gas, oil and NGL reserves were computed using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month natural gas, oil and NGL price for each month within the 12-month period prior to the balance sheet date, held flat over the life of the properties. However, projected future natural gas, oil and NGL pricing assumptions are used by management to prepare estimates of natural gas, oil and NGL reserves and future net cash flows used in asset impairment assessments and in formulating management's overall operating decisions. Natural gas, oil and NGL prices are volatile, affected by worldwide production and consumption, and are outside the control of management.

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*Impairment* 

Company management monitors all long-lived assets, principally natural gas and oil properties, for potential impairment when circumstances indicate that the carrying value of the asset may be greater than its estimated future net cash flows. The evaluations involve significant judgment since the results are based on estimated future events, such as inflation rates; future drilling and completion costs; future sales prices for natural gas, oil and NGL; future production costs; estimates of future natural gas, oil and NGL reserves to be recovered and the timing thereof; the economic and regulatory climates; and other factors. The need to test a property for impairment may result from significant declines in sales prices or unfavorable adjustments to natural gas, oil and NGL reserves. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations to reflect any material changes since the prior report was issued and then utilizes updated projected future price decks current with the period. For the three months ended March 31, 2025 and 2024, management's assessment resulted in no impairment provisions on producing properties.

NOTE 9: Derivatives

The Company has entered into commodity price derivative agreements, including fixed swap contracts and costless collar contracts. These instruments are intended to reduce the Company's exposure to short-term fluctuations in the price of natural gas and oil. Fixed swap contracts set a fixed price and provide payments to the Company if the index price is below the fixed price, or require payments by the Company if the index price is above the fixed price. Collar contracts set a fixed floor price and a fixed ceiling price and provide payments to the Company if the index price falls below the floor or require payments by the Company if the index price rises above the ceiling. These contracts cover only a portion of the Company's natural gas and oil production and provide only partial price protection against declines in natural gas and oil prices. The Company's derivative contracts are currently with BP Energy Company ("BP"). The derivative contracts with BP are secured under the Credit Facility with Independent Bank (see Note 5: Long-Term Debt). The derivative instruments have settled or will settle based on the prices below:

<u>Derivative Contracts in Place as of March 31, 2025</u> 

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| | | | |
|:---|:---|:---|:---|
| Calendar Period | Contract total volume | Index | Contract average price |
|  Natural gas costless collars |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 815,000 Mmbtu | NYMEX Henry Hub | $3.29 floor / $4.36 ceiling |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 1,245,000 Mmbtu | NYMEX Henry Hub | $3.29 floor / $4.19 ceiling |
|  Natural gas fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 1,620,000 Mmbtu | NYMEX Henry Hub | $3.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 215,000 Mmbtu | NYMEX Henry Hub | $3.44 |
|  Oil fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 46,600 Bbls | NYMEX WTI | $69.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 15,000 Bbls | NYMEX WTI | $68.78 |

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<u>Derivative Settlements during the Three Months Ended March 31, 2025</u> 

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| | | | | |
|:---|:---|:---|:---|:---|
| Contract period <sup>(2)</sup> | Monthly<br>Production volume | Index | Contract price | Settlement<br>(paid) received |
|  Natural gas costless collars |  |  |  |  |
|  January - March 2025 | 90,000 Mmbtu | NYMEX Henry Hub | $3.25 floor / $5.25 ceiling | $— |
|  January - April 2025 | 30,000 Mmbtu | NYMEX Henry Hub | $3.00 floor / $5.00 ceiling | $— |
|  January - March 2025 | 30,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $5.15 ceiling | $— |
|  January - March 2025 | 25,000 Mmbtu | NYMEX Henry Hub | $3.00 floor / $3.37 ceiling | $(21125) |
|  January 2025 | 55,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $4.40 ceiling | $— |
|  February 2025 | 25,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $4.40 ceiling | $— |
|  March 2025 | 35,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $4.40 ceiling | $— |
|  April 2025 | 55,000 Mmbtu | NYMEX Henry Hub | $3.00 floor / $3.75 ceiling | $(11000) |
|  Natural gas fixed price swaps |  |  |  |  |
|  January - March 2025 | 60,000 Mmbtu | NYMEX Henry Hub | $4.16 | $91500 |
|  January - March 2025 | 50,000 Mmbtu | NYMEX Henry Hub | $3.51 | $(21250) |
|  April 2025 | 100,000 Mmbtu | NYMEX Henry Hub | $3.28 | $(67000) |
|  April 2025 | 125,000 Mmbtu | NYMEX Henry Hub | $3.00 | $(118125) |
|  April 2025 | 25,000 Mmbtu | NYMEX Henry Hub | $3.23 | $(18000) |
|  Oil costless collars |  |  |  |  |
|  December 2024 | 500 Bbls | NYMEX WTI | $67.00 floor / $77.00 ceiling | $— |
|  Oil fixed price swaps |  |  |  |  |
|  December 2024 | 2,000 Bbls | NYMEX WTI | $69.50 | $(396) |
|  January - February 2025 | 500 Bbls | NYMEX WTI | $69.50 | $(3653) |
|  December 2024 | 500 Bbls | NYMEX WTI | $74.94 | $2621 |
|  January 2025 | 500 Bbls | NYMEX WTI | $74.48 | $(309) |
|  February 2025 | 500 Bbls | NYMEX WTI | $74.10 | $1445 |
|  December 2024 - February 2025 | 1,000 Bbls | NYMEX WTI | $68.80 | $(9605) |
|  December 2024 - February 2025 | 1,600 Bbls | NYMEX WTI | $64.80 | $(34568) |
|  January - February 2025 | 2,000 Bbls | NYMEX WTI | $70.90 | $(9014) |
|  |  |  | Total (paid) received | $(218479) |

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(1) Natural gas derivatives settle at first of the month pricing and oil derivatives settle at a monthly daily
average.

(2) Certain April 2025 contracts were settled on March 31, which did not result in additional gains (losses)
on derivative contracts on the Statements of Income.

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The Company has elected not to complete all of the documentation requirements necessary to permit these derivative contracts to be accounted for as cash flow hedges. The Company's fair value of derivative contracts was a net liability of $3,659,107 as of March 31, 2025, and a net liability of $714,408 as of December 31, 2024. Cash receipts or payments in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods.

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br> March 31, | Three Months Ended<br> March 31, |
|  | 2025 | 2024 |
|  Cash received (paid) on derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $(32125) | $1107575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps | (132875) | 555248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars |  | (1219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps | (53479) | 7705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash received (paid) on derivative contracts, net | $(218479) | $1669309 |
|  Non-cash gain (loss) on derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $(1210667) | $(759269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps | (1798121) | 198016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars |  | (94898) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps | 64089 | (385666) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash gain (loss) on derivative contracts, net | $(2944699) | $(1041817) |
|  Gains (losses) on derivative contracts, net | $(3163178) | $627492 |

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The fair value amounts recognized for the Company's derivative contracts executed with the same counterparty under a master netting arrangement may be offset. The Company has the choice of whether or not to offset, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability in the Company's balance sheets.

The following table summarizes and reconciles the Company's derivative contracts' fair values at a gross level back to net fair value presentation on the Company's balance sheets at March 31, 2025 and December 31, 2024. The Company has offset all amounts subject to master netting agreements in the Company's balance sheets at March 31, 2025 and December 31, 2024.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts |
|  | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities |
|  Gross amounts recognized | $310102 | $3488808 | $94636 | $575037 | $596514 | $912850 | $398894 | $796966 |
|  Offsetting adjustments | (310102) | (310102) | (94636) | (94636) | (596514) | (596514) | (398894) | (398894) |
|  Net presentation on condensed balance sheets | $— | $3178706 | $— | $480401 | $— | $316336 | $— | $398072 |

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(a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments.

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The fair value of derivative assets and derivative liabilities is adjusted for credit risk. The impact of credit risk was immaterial for all periods presented.

NOTE 10: Fair Value Measurements

Fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active; (iii) inputs other than quoted prices that are observable for the asset or liability; or (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the financial asset or liability.

The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis at March 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value Measurement at March 31, 2025 | Fair Value Measurement at March 31, 2025 | Fair Value Measurement at March 31, 2025 | Fair Value Measurement at March 31, 2025 |
|  | Quoted<br>Prices in<br>Active<br>Markets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total Fair<br>Value |
|  Financial Assets (Liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Swaps | $— | $(2100247) | $— | $(2100247) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Collars | $— | $(1558860) | $— | $(1558860) |

---

Level 2 – Market Approach - The fair values of the Company's swaps and collars are based on a third-party pricing model, which utilizes inputs that are either readily available in the public market, such as natural gas curves and volatility curves, or can be corroborated from active markets. These values are based upon future prices, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness.

At March 31, 2025 and December 31, 2024, the carrying values of cash and cash equivalents, receivables, and payables are considered to be representative of their respective fair values due to the short-term maturities of those instruments. Financial instruments include long-term debt, the valuation of which is classified as Level 2 as the carrying amount of the Company's debt under the Credit Facility approximates fair value because the interest rates are reflective of market rates. The estimated current market interest rates are based primarily on interest rates currently being offered on borrowings of similar amounts and terms. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the debt agreements.

NOTE 11: Commitments and Contingencies

*Litigation* 

The Company may be the subject of threatened or pending legal actions and contingencies in the normal course of conducting our business. The Company provides for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Company's future results of operations and liquidity cannot be predicted because any such effect depends on

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future results of operations and the amount or timing of the resolution of such matters. For certain types of claims, the Company maintains insurance coverage for personal injury and property damage, product liability and other liability coverages in amounts and with deductibles that it believes are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against the Company.

NOTE 12: Operating Segment

An operating segment is defined as a component of a public entity that engages in business activities and for which discrete financial information and operating results are available and regularly reviewed by the "Chief Operating Decision Maker" or "CODM", in deciding how to allocate resources and assess performance. The Company's Chief Executive Officer has been determined to be its CODM. The CODM manages the Company's business activities in a single operating and reportable segment focused on managing the Company's mineral portfolio and growing its mineral positions in its core focus areas. The financial information and operating results, including net income and total assets, used by the CODM to allocate resources, assess performance, and make key operating decisions are the same as that which is reported by the Company on the Income Statement and Balance Sheet, and the CODM does not use further disaggregated expenses or assets in deciding how to allocate resources and assess performance.

NOTE 13: Subsequent Event

On May 8, 2025, the Company entered into a definitive agreement to be acquired in an all-cash transaction that values the Company at $4.35 per share.

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Three Rivers Royalty, LLC

**Financial Report** 

**with Supplemental Information** 

**December 31, 2024** 

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##### [**Table of Contents**](#toc)
**Three Rivers Royalty, LLC** 

Contents

---

| | |
|:---|:---|
|  **[Independent Auditor's Report](#fin86452_62)** | F-117-118 |
|  **Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheet](#fin86452_63) | F-119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Operations](#fin86452_64) | F-120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Changes in Member's Equity](#fin86452_65) | F-121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Cash Flows](#fin86452_66) | F-122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_67) | F-123-132 |
|  **[Supplemental Information (Unaudited)](#fin86452_69)** | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Supplemental Oil and Gas Information (Unaudited)](#fin86452_68) | F-134-136 |

---

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**Independent Auditor's Report** 

To the Member

Three Rivers Royalty, LLC

***Opinion***

We have audited the financial statements of Three Rivers Royalty, LLC (the "Company"), which comprise the balance sheet as of December 31, 2024 and 2023 and the related statements of operations, changes in member's equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying 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.

***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 Audits of the Financial Statements* section of our report. We are required to be independent of the Company and to meet our 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.

***Emphasis of Matters***

As described in Note 10 to the financial statements, subsequent to December 31, 2024, the Company completed the sale of substantially all of the Company's oil and gas properties. Our opinion is not modified with respect to this matter.

We draw attention to Note 2, which describes the basis of presentation of the accompanying carve-out financial statements. These carve-out financial statements have been derived from the historical accounting records of San Jacinto Minerals, LLC and its consolidated subsidiary and reflect the assets, liabilities, revenue, and expenses as they would have been recorded had the carve-out entity operated as a separate legal entity. Our opinion is not modified with respect to this matter.

***Responsibilities of Management for the Financial Statements***

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the 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 within one year after the date that the financial statements are issued or available to be issued.

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To the Member

Three Rivers Royalty, LLC

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

Our objectives are to obtain reasonable assurance about whether the 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 audits 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 financial statements.

In performing audits in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exercise professional judgment and maintain professional skepticism throughout the audits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the 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 financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audits 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

/s/ Plante & Moran, PLLC

Denver, Colorado

January 20, 2026

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**Three Rivers Royalty, LLC** 

Balance Sheet

**December 31, 2024 and 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| **Assets** | **Assets** | **Assets** |
|  **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash | $489722 | $298918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty receivable | 2873470 | 2159839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related parties (Note 9) | 119881 | 109999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 187 | 7872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative instruments | 1877511 | 5293373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 5360771 | 7870001 |
|  **Oil and Gas Properties** - Using the successful efforts method of accounting |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved oil and gas properties | 51674858 | 48334046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unproved oil and gas properties | 12048527 | 15367698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less accumulated depreciation, depletion, and amortization | 22404879 | 19015831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total oil and gas properties - Net | 41318506 | 44685913 |
|  **Other Assets** | 79167 | 70000 |
|  **Commodity Derivative Instruments** |  | 2248448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $**46758444** | $**54874362** |
| **Liabilities and Member's Equity** | **Liabilities and Member's Equity** | **Liabilities and Member's Equity** |
|  **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts payable | $152947 | $522400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued and other current liabilities |  | 149711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 152947 | 672111 |
|  **Guarantee Obligation to Member** (Note 5) | 19540000 | 20800000 |
|  **Other Long-term Liabilities** |  | 10607 |
|  **Commodity Derivative Instruments** | 429306 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 20122253 | 21482718 |
|  **Commitments and Contingencies** (Note 7) |  |  |
|  **Member's Equity** | 26636191 | 33391644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and member's equity | $**46758444** | $**54874362** |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Statement of Operations

**Years Ended December 31, 2024 and 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  **Revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas royalty revenue | $10356647 | $16172114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas liquids and oil royalty revenue | 1866153 | 2452325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mineral lease bonuses | 1614695 | 2863516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of oil and gas properties |  | 16998752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue and gain on sale | 13837495 | 38486707 |
|  **Operating Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gathering, processing, and transportation | 2415621 | 2900412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion, and amortization | 3389048 | 5312943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 506751 | 241268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses - Related party (Note 9) | 485168 | 744573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 6796588 | 9199196 |
|  **Operating Income** | 7040907 | 29287511 |
|  **Nonoperating (Expense) Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on commodity derivatives | (158541) | 20859494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 93903 | 4679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (2001697) | (3243013) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total nonoperating (expense) income | (2066335) | 17621160 |
|  **Net Income** | $**4974572** | $**46908671** |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Statement of Changes in Member's Equity

**Years Ended December 31, 2024 and 2023** 

---

| | | | |
|:---|:---|:---|:---|
|  | Net Member<br>Investment | Retained<br>Earnings | Total Member's<br>Equity |
|  **Balance** - January 1, 2023 | $(50985294) | $97637343 | $46652049 |
|  Net income |  | 46908671 | 46908671 |
|  Distributions to member | (60169076) |  | (60169076) |
|  **Balance** - December 31, 2023 | (111154370) | 144546014 | 33391644 |
|  Net income |  | 4974572 | 4974572 |
|  Distributions to member | (11730025) |  | (11730025) |
|  **Balance** - December 31, 2024 | $**(122884395)** | $**149520586** | $**26636191** |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Statement of Cash Flows

**Years Ended December 31, 2024 and 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  **Cash Flows from Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $4974572 | $46908671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion, and amortization | 3389048 | 5312943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 90833 | 56000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss (gain) on commodity derivatives | 6093616 | (16863722) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of oil and gas properties |  | (16998752) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities that (used) provided cash: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty receivable | (713631) | 5784469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to/from related parties | (9882) | 8864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 7686 | 1849576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued and other liabilities | (529772) | 681808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 13302470 | 26739857 |
|  **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of oil and natural gas mineral rights - Unproved properties | (21641) | (1630224) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of oil and natural gas properties - Net |  | 52325588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by investing activities | (21641) | 50695364 |
|  **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on guarantee obligation to member | (1260000) | (17000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt issuance costs | (100000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to member | (11730025) | (60169076) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (13090025) | (77169076) |
|  **Net Increase in Cash** | 190804 | 266145 |
|  **Cash** - Beginning of year | 298918 | 32773 |
|  **Cash** - End of year | $**489722** | $**298918** |
|  **Supplemental Cash Flow Information** - Cash paid for interest | $2096058 | $3222946 |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 1 - Nature of Business** 

Three Rivers Royalty, LLC (the "Company"), a Texas limited liability company, was formed on September 13, 2015 for the purpose of managing and acquiring mineral and royalty assets for lease and royalty revenue. The Company owns oil and natural gas mineral and royalty interests in the Marcellus shale play in Pennsylvania and West Virginia.

The Company is a wholly owned subsidiary of San Jacinto Minerals, LLC (SJM). The Company sold its oil and gas properties to WhiteHawk Income Marcellus LLC (WhiteHawk) in 2025 (see Note 10).

SJM and its affiliated entities, San Jacinto Minerals II, LLC (SJM II); San Jacinto Minerals III, LLC (SJM III); and San Jacinto Minerals IV, LLC (SJM IV) (collectively, the "SJM Entities"), share common ownership and common management. Under a management services agreement between SJM II and the other SJM Entities (the "MSA"), SJM II is the named employer of those individuals providing services to the SJM Entities. Labor and other shared expenses are allocated amongst the SJM Entities based on the hours spent of such personnel (see Note 9). Direct costs of each of the individual SJM Entities are recorded based on the actual amounts incurred and recorded to the specific entity for which it relates.

In addition, the Company is the guarantor under SJM's Credit Agreement (see Note 5).

**Note 2 - Significant Accounting Policies** 

***Basis of Presentation***

The accompanying carve-out financial statements of the Company are presented in accordance with accounting principles generally accepted in the United States of America (GAAP).

These carve-out financial statements of the Company reflect the assets, liabilities, revenue, and expenses directly attributable to the Company, as well as allocations deemed reasonable by management, to present the Company's financial position, results of operations, changes in member's equity, and cash flows of the Company on a stand-alone basis. The allocation methodologies have been described within the notes to the financial statements where appropriate, and management considers the allocations to be reasonable.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from those estimates.

Depreciation, depletion, and amortization (DD&A) and impairment of proved oil and gas properties are determined using estimates of oil and gas reserves. There are numerous uncertainties in estimating the quantity of reserves and in projecting the future rates of production and timing of development expenditures. Oil and gas reserve engineering must be recognized as a subjective process of estimating underground accumulations of oil and gas that cannot be measured in an exact way. The recoverability of unproved oil and gas properties and the allocation of certain expenses not specifically identifiable to the Company's revenue producing activities are also subject to estimation.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

***Cash***

The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. As of and during the years ended December 31, 2024 and 2023, cash balances were primarily held by one financial institution.

***Commodity Derivative Instruments***

SJM and the Company use commodity derivative instruments to provide a measure of stability to their cash flows in an environment of volatile oil and gas prices and to manage their exposure to oil and gas price volatility. All commodity derivative instruments are initially, and subsequently, measured at estimated fair value and recorded as assets or liabilities on the balance sheet.

SJM is the named counterparty to the commodity derivative contracts pertaining to the Company's natural gas production and natural gas volumes. As these commodity derivative instruments relate specifically to the Company's natural gas volumes, the fair values, and the related realized and unrealized gains/losses attributable thereto, have been pushed down to these financial statements for each of the years presented.

SJM and the Company have elected not to designate commodity derivative instruments as cash flow hedges. For commodity derivative instruments that do not qualify as cash flow hedges, changes in the estimated fair value of the contracts are recorded as gains and losses in the statement of operations. When commodity derivative instruments are settled, SJM and the Company recognize realized gains and losses in the statement of operations. Derivative cash flows are reported as cash flows from operating activities in the statement of cash flows (see Note 4).

***Deferred Financing Costs***

Costs associated with SJM's revolving line of credit (the "Credit Agreement") (see Note 5), for which the Company is the named guarantor, have been deferred and amortized to interest expense using the straight-line method over the term of the related financing and are included in other assets on the balance sheet.

***Revenue Recognition***

The Company's revenue is primarily derived from the sale of its produced oil and natural gas from wells in which the Company has nonoperated royalty interests.

The Company's produced oil and natural gas is produced and sold in the Pennsylvania and West Virginia geographic areas. Oil sales for the years ended December 31, 2024 and 2023 were $160,370 and $222,692, respectively. Natural gas sales for the years ended December 31, 2024 and 2023 were $10,356,647 and $16,172,114, respectively. Natural gas liquids sales for the years ended December 31, 2024 and 2023 were $1,705,783 and $2,229,633, respectively. Accounts receivable from royalty revenue were $8,163,666 as of January 1, 2023.

The sales of produced oil and natural gas are made under contracts that the operators of the wells have negotiated with customers, which typically include variable consideration based on monthly pricing tied to

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

local indices and volumes delivered. While revenue is typically recorded at the point in time when control of the produced oil and natural gas transfers to the customer, statements and payment may not be received via the operator of the wells for one to three months after the date the produced oil and natural gas are delivered, and, as a result, the amount of production delivered to the customer and the price that will be received for the sale of the product are estimated utilizing production reports, market indices, and estimated differentials. Estimated revenue due to the Company is recorded within accounts receivable in the accompanying balance sheet until payment is received. Differences between the estimated amounts and the actual amounts received from the sale of the produced oil and natural gas are recorded when known, which is generally when statements and payment are received.

The Company utilizes the practical expedient in ASC 606, which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. As the Company has determined that each unit of product generally represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to the remaining performance obligations is not required.

The Company also derives revenue from mineral lease bonuses. The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. The lease agreements generally transfer the rights to any oil or natural gas discovered, grant the Company a right to a specified royalty interest, and require that drilling and completion operations commence within a specified time period or the lease will expire. The Company recognizes such lease bonus revenue once the lease agreement has been executed, payment is received, and the Company has no further obligation to refund the payment.

Given that the Company does not recognize lease bonus income until a lease agreement has been executed, at which point its performance obligation has been satisfied, and payment is received, the Company does not record revenue for unsatisfied or partially unsatisfied performance obligations as of the end of the reporting period.

***Unit-based Compensation***

The Company follows authoritative guidance that applies to unit-based awards, which requires entities to recognize compensation expense for awards issued to employees and others. Authoritative guidance also requires unit-based awards to employees and others by a related party or other holder of an economic interest in the entity to be accounted for as unit-based transactions if awards are for services provided by such employee and others (see Note 8).

***Concentrations of Credit Risk***

The Company's producing properties are all located in Pennsylvania and West Virginia, and the oil, condensate, natural gas, and natural gas liquids production is sold by various operators based on market index prices. For the years ended December 31, 2024 and 2023, three operators accounted for 99 percent of revenue. As of December 31, 2024 and 2023, three operators accounted for 99 percent of oil and gas revenue receivables. The risk of nonpayment by these purchasers is considered minimal, and the Company does not generally obtain collateral for sales. The Company continually monitors the credit standing of the

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

primary purchasers and assesses the recoverability of the receivables to determine their collectibility. As the receivables are primarily with other entities within the oil and gas industry, such concentration may impact the Company's credit risk, as these entities may be similarly impacted by economic or other changes within the oil and gas industry.

The Company accrues a reserve for the allowance for credit losses based on management's current estimate of expected credit losses that includes historical credit loss experience of financial assets with similar risk characteristics, adjusted for management's current expectation of current conditions and reasonable and supportable forecasts. The risk of nonpayment is considered minimal; therefore, an allowance for doubtful accounts has not been recorded as of December 31, 2024 and 2023.

***Oil and Gas Properties***

The Company uses the successful efforts method of accounting for its oil and gas producing activities. Under this method of accounting, costs associated with the acquisition, drilling, and equipping of successful exploratory wells and costs of successful and unsuccessful development wells are capitalized and depleted, net of estimated salvage value, using the units of production on a field-by-field basis based upon proved oil and gas reserves. The Company's proved oil and gas reserve information was computed by applying the average first day of the month oil and gas price during each of the 12-month periods ended December 31, 2024 and 2023. Depletion expense associated with proved oil and gas properties for the years ended December 31, 2024 and 2023 was approximately $3,390,000 and $5,310,000, respectively. Exploration, geological costs, delay rentals, and drilling costs of unsuccessful exploratory wells are charged to expense as incurred.

Costs associated with unevaluated exploratory wells are excluded from the depletable basis until the determination of proved reserves, at which time those costs are reclassified to proved oil and gas properties and are subject to depletion. If it is determined that the exploratory well costs were not successful in establishing proved reserves, such costs are expensed at the time of such determination.

The Company reviews its oil and gas properties for impairment at least annually and whenever events and circumstances indicate a decline in the recoverability of their carrying value. The Company estimates the expected future cash flows of its proved oil and gas properties and compares such cash flows to the carrying amount of the proved oil and gas properties to determine if the amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust its proved oil and gas properties to estimated fair value. The factors used to estimate fair value include estimates of proved reserves, future commodity prices adjusted for basis differentials, future production estimates, anticipated capital expenditures, and a discount rate commensurate with the risk associated with realizing the projected cash flows. The discount rate is a rate that management believes is representative of current market conditions and includes estimates for a risk premium and other operational risks. There were no proved oil and gas property impairments during the years ended December 31, 2024 and 2023.

Unproved oil and gas properties are assessed at least annually to determine whether they have been impaired by the drilling of dry holes on or near the related acreage or other circumstances that may indicate a decline in value. When unproved property is determined to be impaired, a loss equal to the portion impaired is recognized. If and when leases for unproved properties expire, the costs thereof are removed from the accounts and charged to expense. There were no unproved property impairments during the years ended December 31, 2024 and 2023.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

Upon the drilling of successful wells on unproved properties, the Company reclassifies cost basis from unproved to proved properties, at which time that cost basis is subject to depletion.

From time to time, the Company may sell its oil and gas properties. The partial sale of proved properties within an existing field is accounted for as a recovery of basis, and no gain or loss on divestiture is recognized as long as this treatment does not significantly affect the units-of-production depletion rate. The partial sale of unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to the ultimate recovery of the cost applicable to the interest retained. A gain on divestiture activity is recognized to the extent that the sale price exceeds the carrying amount of the unproved property. A gain or loss is recognized for all other sales of proved and unproved properties. The Company had material sales of proved and unproved oil and gas properties during the years ended December 31, 2025 and 2023 (see Note 6).

***Income Taxes***

The Company is treated as a limited liability company for federal income tax purposes. Consequently, federal income taxes are not payable or provided for by the Company. The members of SJM are taxed individually on their pro rata ownership share of the Company's earnings. The Company's net income or loss is allocated among the members in accordance with the Company's operating agreement.

Beginning on January 1, 2018, new rules apply to Internal Revenue Service (IRS) audits of partnerships. Under these rules, adjustments resulting from an IRS audit may be assessed at the partnership level on behalf of the members. As of December 31, 2024, the Company has no tax years under audit.

**Note 3 - Fair Value Measurements** 

Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provide a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value.

Fair values determined by Level 1 inputs use quoted prices in active markets for identical assets and liabilities that the Company has the ability to access.

Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets and other inputs, such as interest rates and yield curves, that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. These Level 3 fair value measurements are based primarily on management's own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset or liability.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 3 - Fair Value Measurements (Continued)** 

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis at December 31, 2024 and 2023 and the valuation techniques used by the Company to determine those fair values:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 |
|  | Quoted Prices<br>in Active<br>Markets for<br>Identical Assets<br>(Level 1) | Significant Other<br>Observable<br>Inputs<br>(Level 2) | Significant Unobservable<br>Inputs<br>(Level 3) | Balance at<br>December 31,<br>2024 |
|  Commodity derivative instruments asset | $— | $1877511 | $— | $1877511 |
|  Commodity derivative instruments liability | $— | $(429306) | $— | $(429306) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 |
|  | Quoted Prices<br>in Active<br>Markets for<br>Identical Assets<br>(Level 1) | Significant Other<br>Observable<br>Inputs<br>(Level 2) | Significant Unobservable<br>Inputs<br>(Level 3) | Balance at<br>December 31,<br>2023 |
|  Commodity derivative instruments asset | $— | $7541821 | $— | $7541821 |

---

The Company's derivative instruments consist of commodity swaps. The Company estimates the fair values of its commodity swaps under the income valuation technique using a discounted cash flow model. The valuation models require a variety of inputs, including contractual terms, published forward prices, and discount rates, as appropriate. The Company's estimates of the fair value of commodity derivative instruments include consideration of the counterparty's creditworthiness, the Company's creditworthiness, and the time value of money. The consideration of these factors results in an estimated exit price for each derivative asset or liability under a marketplace participant's view. The Company believes that the valuation methods utilized are appropriate and consistent with the fair value standards and with other market participants. All of the significant inputs are observable, either directly or indirectly; therefore, the Company's commodity swap instruments are included within the Level 2 fair value hierarchy.

The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's policy is to recognize transfers in and/or out of the fair value hierarchy as of the beginning of the reporting period in which the event or change in circumstances caused the transfer.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 4 - Derivative Instruments** 

As discussed in Note 2, SJM and the Company periodically enter into various commodity derivative instruments to mitigate a portion of the effect of natural gas price fluctuations. SJM and the Company classify the fair value amounts of derivative assets and liabilities as net current or noncurrent derivative assets or net current or noncurrent derivative liabilities, whichever the case may be, by commodity and counterparty.

At December 31, 2024 and 2023, the fair values attributable to commodity derivative instruments in which SJM was the named party to the derivative agreements have been allocated to the Company because such commodity derivatives relate specifically to the Company's natural gas volumes and are as follows. Subsequent to December 31, 2024, in connection with the sale to WhiteHawk, all outstanding derivatives were extinguished (see Note 10). The fair values as of December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Product and Type of<br>Hedging Contract | Total Mcf<br>(Natural Gas) | Settlement<br>Price | Index | Settlement<br>Period | Estimated Fair<br>Value |
|  Swaps: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 61000 | $2.3 | Platts IFERC Tetco M2 | 2025 | $(14291) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 322000 | 2.64 | Platts IFERC Tetco M2 | 2025 | (9446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1810000 | 3.85 | Platts IFERC Tetco M2 | 2025 | 1825946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 370000 | 3.87 | NYMEX 1st H Hub | 2025 | 118972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 230000 | 3.74 | NYMEX 1st H Hub | 2025 | (49472) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 598000 | -1.00 | Platts IFERC Tetco M2 | 2025 | 5802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 255500 | 2.3 | Platts IFERC Tetco M2 | 2026 | (126293) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 255000 | 4.12 | NYMEX 1st H Hub | 2026 | (29848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 225000 | -1.00 | Platts IFERC Tetco M2 | 2026 | (102474) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 641000 | 2.4 | Platts IFERC Tetco M2 | 2026 | (170691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  |  |  | $1448205 |

---

The fair values as of December 31, 2023 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Product and Type of<br>Hedging Contract | Total Mcf<br>(Natural Gas) | Settlement<br>Price | Index | Settlement<br>Period | Estimated<br>Fair Value |
|  Swaps: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1830000 | $3.76 | Platts IFERC Tetco M2 | 2024 | $3541909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1830000 | 2.76 | Platts IFERC Tetco M2 | 2024 | 1751464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1810000 | 3.85 | Platts IFERC Tetco M2 | 2025 | 2084716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 370000 | 3.87 | NYMEX 1st H Hub | 2025 | 163732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  |  |  | $7541821 |

---

As of December 31, 2024, the Company had $1,950,720 of gross current commodity instrument assets offset by $73,209 of current liabilities, resulting in a net current commodity derivative asset of $1,877,511. The Company had $429,306 of gross noncurrent commodity derivative liabilities, with no assets offsetting the balance.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 4 - Derivative Instruments (Continued)** 

As of December 31, 2023, the Company had $5,293,373 of gross current commodity instrument assets, with no liabilities offsetting the balance. The Company had $2,248,448 of gross noncurrent commodity instrument assets, with no liabilities offsetting the balance.

Due to the volatility of natural gas prices, the estimated fair values of SJM's and the Company's commodity derivative instruments are subject to large fluctuations from period to period.

The counterparty to SJM and the Company's derivative instruments is East West Bank. The Company and SJM are not required to post collateral with East West Bank since the Credit Agreement (see Note 5) is collateralized by the Company's oil and gas assets.

For the years ended December 31, 2024 and 2023, the gains and losses recognized in the statement of operations attributable to derivative instruments are as follows:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  Realized gain on commodity derivative instruments | $5935075 | $3995772 |
|  Unrealized (loss) gain on commodity derivative instruments | (6093616) | 16863722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $(158541) | $20859494 |

---

**Note 5 - Guarantee Obligation to Member** 

In December 2016, SJM entered into a credit agreement with East West Bank with a maximum commitment of $75,000,000. The Credit Agreement, as subsequently amended, requires monthly interest payments that bear interest at rates ranging from SOFR plus 2.75 to SOFR plus 3.75 percent, depending on utilization (8.24 percent at December 31, 2024). The borrowing base is redetermined semiannually, and repayment of borrowings is required in the event the redetermined borrowing base is less than outstanding borrowings or on the maturity date.

The Credit Agreement also has an excess cash threshold, where cash balances held by SJM in excess of $4,000,000 on each available cash measurement date are to be used to pay down outstanding amounts under the Credit Agreement. The Credit Agreement contains financial covenants requiring minimum current, maximum leverage, and interest coverage ratios. As of December 31, 2024, SJM was in compliance with these financial covenants. The Credit Agreement contains restrictive covenants, including the limitation of paying distributions, certain transfers of the equity interests in SJM, and incurring additional indebtedness. Additionally, SJM is required to enter into and maintain commodity derivative transactions covering 50 to 90 percent of the anticipated oil and natural gas production, or anticipated receipt of royalties, from its proved developed producing properties. The Credit Agreement is collateralized by all mineral interests of Three Rivers Royalty, LLC. As of December 31, 2024, the outstanding amount borrowed under the Credit Agreement was $19,540,000.

The named borrower on the Credit Agreement is SJM, and the Company is the named guarantor. As the Company's oil and gas properties are the primary collateral under the Credit Agreement, and the Company's operations provide substantially all of the cash flows required for debt service, all amounts outstanding under the Credit Agreement as of December 31, 2024 and 2023, and all related interest expense for the years then ended, have been pushed down to the Company's accompanying balance sheet as an obligation attributable to the Company's guarantee of amounts outstanding.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 5 - Guarantee Obligation to Member (Continued)** 

As of December 31, 2024, the borrowing base was $25,000,000 and the maturity date of the Credit Agreement was July 2027. In connection with the 2025 sale of properties to WhiteHawk (see Note 10), all outstanding amounts under the Credit Agreement were repaid and the Credit Agreement was terminated.

**Note 6 - Oil and Gas Property Sales** 

In 2023, the Company sold approximately 33 percent of its interests in its oil and gas properties to WhiteHawk Income Marcellus LLC for net proceeds of approximately $52,300,000. The transaction closed on November 13, 2023. As a part of the sale, the Company sold $20,464,381 of unproved property, which was accounted for as a recovery of basis, and no gain was recognized. Additionally, the Company sold $14,862,456 of proved properties, which resulted in a net gain of $16,998,752.

The results of the oil and gas properties sold in 2023 have not been disclosed separately from continued operations within these financial statements because the sale did not represent a strategic shift in operations for the Company.

Subsequent to December 31, 2024, the remaining oil and gas properties of the Company were sold to WhiteHawk (see Note 10). The Company's proved and unproved oil and gas properties have not been presented as assets held for sale, as the criteria pertaining to such within the authoritative guidance were not met as of December 31, 2024.

**Note 7 - Commitments and Contingencies** 

The Company is occasionally named a party to lawsuits in the normal course of business. In the opinion of management, the resolution of these lawsuits will not have a material adverse effect on the Company's financial position or results of operations.

**Note 8 - Member's Equity** 

The Company was formed in 2015, pursuant to a limited liability company agreement, as amended (the "Agreement"). The Agreement provides for the authorization of one class of common interests, in which SJM is the sole member.

Certain employees of SJM and SJM II (see Note 9) that provide management and administrative services to the Company were granted management incentive units of SJM (the "MIUs"). The MIUs entitle the holders to the right to receive distributions from SJM upon the attainment of specific payout thresholds. MIUs vest upon service conditions or performance conditions related to monetization events. All granted MIUs had *de minimis* grant-date fair value, and, as such, no compensation expense was required to be recognized by the Company.

**Note 9 - Related Party Transactions** 

As discussed in Note 1, during 2017, SJM entered into the MSA with SJM II, an entity with common ownership and common management, whereby shared management services and general overhead of the SJM Entities are allocated based on time incurred. SJM III and SJM IV subsequently became parties to the MSA. The MSA is subject to automatic annual renewals.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 9 - Related Party Transactions (Continued)** 

For the years ended December 31, 2024 and 2023, the Company incurred services and shared general overhead from SJM II of approximately $485,000 and $745,000, respectively, all of which has been included in general and administrative expenses on the accompanying statement of operations of the Company. As of December 31, 2024 and 2023, the Company had a receivable due from SJM II totaling approximately $92,000 and $110,000, respectively, which has also been recorded on the Company's accompanying balance sheet.

Additionally, the Company had a receivable due from SJM III totaling approximately $28,000 as of December 31, 2024, which is included within related party receivables on the accompanying balance sheet. There were no amounts due from SJM III as of December 31, 2023.

During 2017, SJM and SJM II entered into an agreement whereby SJM and the Company's prospective mineral acquisitions shall be restricted to (1) certain counties within Pennsylvania or within two miles of existing Company mineral interests and (2) amounts less than $2.0 million. Furthermore, SJM and the Company may offer SJM II the right to participate in mineral interest acquisitions.

**Note 10 - Subsequent Events** 

On March 31, 2025, the Company entered into a definitive purchase and sale agreement (the "PSA") with WhiteHawk. Under the PSA, substantially all of the remaining oil and gas properties of the Company were sold at a base purchase price of $118,000,000.

Subsequent to year end, SJM and the Company terminated all outstanding commodity derivative instrument contracts. The termination resulted in net cash settlement payments of approximately $2,091,000.

Subsequent to year end, SJM and the Company paid off all amounts outstanding on the Credit Agreement, including all unpaid interest, resulting in payments of approximately $21,600,000.

The Company has evaluated all subsequent events up through and including January 20, 2026, which is the date these financial statements were available to be issued.

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Supplemental Information (Unaudited)

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**Three Rivers Royalty, LLC** 

Supplemental Information (Unaudited)

**December 31, 2024 and 2023** 

**Supplemental Oil and Gas Information (Unaudited)** 

***Oil and Natural Gas Reserve Quantities***

The estimates of proved oil and natural gas reserves and discounted future net cash flows for the Company's oil and gas properties as of December 31, 2024 and 2023 were prepared using historical data and other information by qualified petroleum engineers engaged by the Company. Users of this information should be aware that the process of estimating quantities of proved oil and natural gas reserves is complex, requiring significant subjective decisions to be made in the evaluation of geologic, engineering, and economic data for each reservoir. The data for any given reservoir may also change substantially over time as a result of numerous factors, including, but not limited to, additional development activity, production history, and continual reassessment of the viability of production under varying economic conditions. As a result, revisions to existing reserve estimates may occur from time to time.

The estimated proved net recoverable reserves presented below include only those quantities of oil and natural gas that geologic and engineering data demonstrate with reasonable certainty to be recoverable in future periods from known reservoirs under existing economic, operating, and regulatory practices. In accordance with SEC's guidelines, estimates of proved reserves from which present values are derived were based on the unweighted 12-month average price of the first day of the month price for the period and held constant. Proved developed reserves represent only those reserves estimated to be recovered through existing wells. When and if the Company has insight into the development plans for each of the operators in which the Company holds royalty interests, the Company will recognize proved undeveloped reserves. All of the oil and gas reserves set forth herein are in the United States and are proved reserves.

The estimated rounded quantities of proved oil and natural gas reserves and changes in net proved reserves are summarized below for the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Oil (MBbl) | Gas (MMcf) | Liquids (Mbbl) | Total (MMcfe) |
|  Balance - December 31, 2023 | 13 | 43250 | 520 | 46448 |
|  Revisions | (3) | (2840) | 29 | (2684) |
|  Extensions | 11 | 14943 | 233 | 16407 |
|  Production | (3) | (5826) | (68) | (6252) |
|  Balance - December 31, 2024 | 18 | 49527 | 714 | 53919 |
|  Proved developed reserves at December 31, 2023 | 13 | 43250 | 520 | 46448 |
|  Proved developed reserves at December 31, 2024 | 18 | 49527 | 714 | 53919 |

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**Three Rivers Royalty, LLC** 

Supplemental Information (Unaudited)

**December 31, 2024 and 2023** 

**Supplemental Oil and Gas Information (Unaudited) (Continued)** 

The estimated rounded quantities of proved oil and natural gas reserves and changes in net proved reserves are summarized below for the year ended December 31, 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Oil (MBbl) | Gas (MMcf) | Liquids (MBbl) | Total (MMcfe) |
|  Balance - December 31, 2022 | 25 | 61879 | 810 | 66889 |
|  Revisions | (3) | 519 | 14 | 585 |
|  Extensions | 4 | 13388 | 78 | 13880 |
|  Divestitures of reserves | (10) | (24131) | (289) | (25925) |
|  Production | (3) | (8405) | (93) | (8981) |
|  Balance - December 31, 2023 | 13 | 43250 | 520 | 46448 |
|  Proved developed reserves at December 31, 2022 | 25 | 61879 | 810 | 66889 |
|  Proved developed reserves at December 31, 2023 | 13 | 43250 | 520 | 46448 |

---

During the year ended December 31, 2024, the Company's total extensions of 16,407 MMcfe resulted primarily from the drilling of 120 new gross wells (0.532 net wells). The Company's downward revisions of previous estimated quantities of 2,684 were primarily attributable to lower commodity prices and were not significant.

During the year ended December 31, 2023, the Company divested of 25,925 MMcfe from 33 percent of the Company's interest across 1,324 wells. The Company's total extensions of 13,880 MMcfe resulted from the drilling of 271 new gross wells (0.345 net wells). The Company's total downward revisions of previous estimated quantities of 0.585 MMcfe were primarily attributable to lower commodity prices and were not significant.

***Standardized Measure***

A standardized measure of future net cash flows and changes therein relating to estimated proved reserves is computed in accordance with authoritative accounting guidance. The assumptions used to compute the standardized measure are those prescribed by the Financial Accounting Standards Board and the SEC. These assumptions do not necessarily reflect expectations of actual revenue to be derived from those reserves nor their present value amount. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these reserve quantity estimates are the basis for the valuation process.

Future cash inflows and production and development costs are determined by applying prices and costs, including transportation, quantity, and basis differentials, to the year-end estimated future reserve quantities. The following prices, as adjusted for transportation, quality, and basis differentials, were used in the calculation of the standardized measure:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2023** | **2023** |
|  Oil (per Bbl) |  | 71.95 |  | 74.95 |
|  Gas (per Mcf) |  | 1.44 |  | 1.75 |
|  Liquids (per Bbl) |  | 23.93 |  | 25.00 |

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**Three Rivers Royalty, LLC** 

Supplemental Information (Unaudited)

**December 31, 2024 and 2023** 

**Supplemental Oil and Gas Information (Unaudited) (Continued)** 

Future operating costs are determined based on estimates of expenditures to be incurred in developing and producing the proved reserves in place at the end of the period using year-end costs and assuming continuation of existing economic conditions. The standardized measure presented here does not include the effects of federal income taxes, as the Company is taxed as a partnership and not subject to federal income taxes. The resulting future net cash flows are reduced to present value amounts by applying a 10 percent annual discount factor.

The standardized measure of discounted net cash flows related to the Company's proved oil and natural gas reserves as of December 31, 2024 and 2023 is as follows:

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Future cash inflows | $89726000 | $88555000 |
|  Future production costs | (72000) | (44000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future net cash flows | 89654000 | 88511000 |
|  10 percent annual discount for estimated timing of cash flows | (44566000) | (44193000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Standardized measure of discounted future net cash flows | $45088000 | $44318000 |

---

The changes in the standardized measure of the future net cash flows related to proved oil and natural gas reserves for the years ended December 31, 2024 and 2023 are as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Balance - Beginning of the year | $44318000 | $190478885 |
|  Net change in prices and production costs | (5458830) | (99042825) |
|  Sales of oil and gas produced - Net of production costs | (9807179) | (15724027) |
|  Extensions | 15441863 | 13520166 |
|  Divestiture of reserves |  | (66193699) |
|  Revisions of previous quantity estimates | (2579131) | 569946 |
|  Accretion of discount | 4431800 | 19047889 |
|  Changes in timing and other | (1258523) | 1661665 |
|  Standardized measure of future net cash flows - End of year | $45088000 | $44318000 |

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**ANNEX A** 

**GLOSSARY OF NATURAL GAS AND OIL TERMS** 

The following are abbreviations and definitions of certain terms used in this document, which are commonly used in the natural gas and oil industry:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Basin*. A geographic area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Bbl*. One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil,
condensate or NGLs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Bcf/d*. Billion cubic feet per day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *British thermal unit or Btu*. The quantity of heat required to raise the temperature of a one-pound mass of water from 58.5 to 59.5 degrees Fahrenheit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Completion*. Installation of permanent equipment for hydraulic fracturing for production of natural gas,
NGLs or oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Condensate*. A mixture of hydrocarbons that exists in the gaseous phase at original reservoir
temperature and pressure, but that, when produced, is in the liquid phase at surface pressure and temperature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Developed acreage*. The number of acres allocated or assignable to producing wells or wells capable of
production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Development costs*. Costs incurred to obtain access to proved reserves and to provide facilities for
extracting, treating, gathering and storing natural gas, NGLs and oil. For a complete definition of development costs, refer to the SEC's Regulation S-X, Rule 4-10(a)(7).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Development project*. The means by which petroleum resources are brought to the status of economically
producible. As examples, the development of a single reservoir or field, an incremental development in a producing field or the integrated development of a group of several fields and associated facilities with a common ownership may constitute a
development project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Differential*. An adjustment to the price of oil or natural gas from an established spot market price to
reflect differences in the quality and/or location of oil or natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Drilling spacing unit or DSU*. Areas designated in a spacing order or unit designation as a unit and within
which operators drill wellbores to develop our oil and natural gas rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Dry gas*. Natural gas that occurs in the absence of condensate or liquid hydrocarbons, or gas that has had
condensable hydrocarbons removed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Dry hole* or *dry well*. A well found to be incapable of producing
hydrocarbons in sufficient quantities such that proceeds from the sale of such production exceed production expenses and taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *E&P*. Exploration and production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Economically producible*. The term economically producible, as it relates to a resource, means a resource
that generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation. For a complete definition of economically producible, refer to the SEC's Regulation S-X, Rule 4-10(a)(10).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *EIA*. U.S. Energy Information Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Estimated ultimate recovery.* The sum of reserves remaining as of a given date and cumulative
production as of that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Exploratory well.* A well drilled to find a new field or to find a new reservoir in a field previously
found to be productive of natural gas or crude oil in another reservoir.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *FERC*. Federal Energy Regulatory Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *FID*. Final investment decision by a sponsor whereby such sponsor awards to a qualified contractor an
engineering, procurement and construction contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Field*. An area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the
same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations. For a complete definition of field, refer to
the SEC's Regulation S-X, Rule 4-10(a)(15).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Formation*. A layer of rock that has distinct characteristics that differs from nearby rock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Gross DSU acres*. The total acres within a drilling spacing unit, as the case may be, in which a mineral or
royalty interest is owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Gross well.* A well in which a mineral interest is owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Held by production*. Acreage covered by a mineral lease that perpetuates a company's right to operate
a property as long as the property produces a minimum paying quantity of natural gas, NGLs or oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Horizontal drilling*. A drilling technique used in certain formations where a well is drilled vertically to
a certain depth and then drilled at a right angle within a specified interval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Henry Hub*. Widely used benchmark for the pricing of natural gas in the United States and a distribution
hub.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Horizontal well*. An oil or gas well that has sections that have been drilled to a horizontal or roughly
horizontal inclination from vertical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Hydraulic fracturing*. Process involving the high-pressure injection of water, sand and additives into rock
formations to stimulate natural gas and crude oil production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *LNG*. Liquefied natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MBbl*. One thousand barrels of crude oil, condensate or NGLs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcf*. One thousand cubic feet of natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcfe*. One thousand cubic feet of natural gas equivalent, determined by using the ratio of six Mcf of
natural gas to one Bbl of crude oil, condensate of natural gas liquids.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcf/d*. One Mcf per day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcfe/d*. One Mcfe per day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MMBbl*. One million barrels of crude oil, condensate or NGLs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MMBtu*. One million British thermal units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MMcf*. One million cubic feet of natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net mineral acres*. Calculated by multiplying the total gross acres by an owner's mineral or royalty
interest. For example, an owner who owns a 25%, or 1/4<sup>th</sup>, royalty interest in 100 acres has 25 net mineral acres.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net production*. Production on our properties calculated net to our royalty interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net well.* Calculated by multiplying the number of gross wells in which a mineral interest is owned by
the net revenue interest in such wells. An owner with a 1.0% net revenue interest in 100 wells would own one gross well (100 multiplied by 1.0% = 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NGLs*. Natural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum
gas and natural gasoline.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NRAs (1/8 Basis) or net royalty acres (1/8 Basis).* The hypothetical number of acres in which an owner
owns a standardized 12.5%, or 1/8<sup>th</sup>, royalty interest based on the actual number of net mineral acres in which such owner has an interest and the average royalty interest such owner has in such
net mineral acres. For example, an owner who has a 25%, or 1/4<sup>th</sup>, royalty interest in 100 net mineral acres would hypothetically own 200 NRAs on a
1/8<sup>th</sup> basis (100 multiplied by 25% divided by 12.5%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NRAs (Actual 100% Basis) or net royalty acres (Actual or 100% Basis)*. The actual number of
acres in which an owner owns a standardized 100% royalty interest based on the actual number of net mineral acres in which such owner has an interest and the average royalty interest such owner has in such net mineral acres. For example, an owner
who has a 25%, or 1/4<sup>th</sup>, royalty interest in 100 net mineral acres would own 25 NRAs on an actual or a 100% basis (100 multiplied by 25%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NRI*. Net revenue interest. The net royalty, overriding royalty, production payment and net profits
interests in a particular tract or well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NYMEX*. The New York Mercantile Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Operators*. The individual, company or third-party natural gas operators responsible for the development
and/or production of an oil or natural gas well or lease. Some of our operators include EQT Corporation (NYSE: EQT), Range Resources Corporation (NYSE: RRC), CNX Resources Corporation (NYSE: CNX), Antero Resources Corporation (NYSE: AR), Expand
Energy Corporation (NASDAQ: EXE), Comstock Resources, Inc. (NYSE: CRK) and Aethon Energy Management LLC (recently rebranded as "Adamas Energy," wholly owned by Mitsubishi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Overriding royalty interest*. Interest in the natural gas and oil produced under a lease, or the proceeds
from the sale thereof, apportioned out of the working interest, to be received free and clear of all costs of development, operation or maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *PDP*. Proved developed producing reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Play*. A geographic area with hydrocarbon potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Possible reserves*. Reserves that are less certain to be recovered than probable reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Probable reserves*. Reserves that are less certain to be recovered than proved reserves but that, together
with proved reserves, are as likely as not to be recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Production or produced*. Volumes of natural gas, NGL and oil that have been both produced and sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Productive well*. A well that is found to be capable of producing hydrocarbons in sufficient quantities
such that proceeds from the sale of the production exceed production expenses and taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Prospect.* A specific geographic area that, based on supporting geological, geophysical or other data and
also preliminary economic analysis using reasonably anticipated prices and costs, is deemed to have potential for the discovery of commercial hydrocarbons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proved developed reserves*. Reserves that can be expected to be recovered through (i) existing wells
with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well or (ii) through installed extraction equipment and infrastructure operational at the time of
the reserves estimate if the extraction is by means not involving a well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proved reserves*. Those quantities of natural gas, NGLs and crude oil, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations prior to the time at
which contracts providing the right to operate expire, unless evidence indicates renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must
have commenced or the operator must be reasonably certain that it will commence the project within a

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reasonable time. For a complete definition of proved oil and natural gas reserves, refer to the SEC's Regulation S-X, Rule 4-10(a)(22).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proved undeveloped reserves or PUDs*. Proved reserves expected to be recovered from new wells on undrilled
acreage or from existing wells where a relatively major expenditure is required for recompletion. Undrilled locations can be classified as having proved undeveloped reserves only if a development plan has been adopted indicating that such locations
are scheduled to be drilled within five years, unless specific circumstances justify a longer time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Realized price*. The cash market price less all expected quality, transportation and demand adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reasonable certainty*. A high degree of confidence that quantities will be recovered. For a complete
definition of reasonable certainty, refer to the SEC's Regulation S-X, Rule 4-10(a)(24).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Recompletion*. The completion for production of an existing wellbore in another formation from that which
the well has been previously completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reliable technology*. Reliable technology is a grouping of one or more technologies (including
computational methods) that has been field tested and has been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reserves*. Estimated remaining quantities of oil and natural gas and related substances anticipated to be
economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue
interest in the production, installed means of delivering oil and natural gas or related substances to market and all permits and financing required to implement the project. Reserves should not be assigned to adjacent reservoirs isolated by major,
potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources
from undiscovered accumulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reservoir*. A porous and permeable underground formation containing a natural accumulation of producible
oil and/or natural gas that is confined by impermeable rock or water barriers and is individual and separate from other reservoirs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Resources*. Quantities of natural gas, NGLs and oil estimated to exist in naturally occurring
accumulations. A portion of the resources may be estimated to be recoverable and another portion may be considered to be unrecoverable. Resources include both discovered and undiscovered accumulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Royalty*. An interest in an oil and natural gas lease that gives the owner the right to receive a portion
of the production from the leased acreage (or of the proceeds from the sale thereof), but does not require the owner to pay any portion of the production or development costs on the leased acreage. Royalties may be either landowner's
royalties, which are reserved by the owner of the leased acreage at the time the lease is granted, or overriding royalties, which are usually reserved by an owner of the leasehold in connection with a transfer to a subsequent owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Spacing*. The distance between wells producing from the same reservoir. Spacing is often expressed in terms
of acres, e.g., 40-acre spacing, and is often established by regulatory agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Unconventional.* An area believed to be capable of producing natural gas and crude oil occurring in
accumulations that are regionally extensive, but may lack readily apparent traps, seals and discrete hydrocarbon water boundaries that typically define conventional reservoirs. These areas tend to have low permeability and may be closely associated
with source rock, as is the case with gas and oil shale,

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tight gas and oil sands, and coalbed methane, and generally require horizontal drilling, fracture stimulation treatments or other special recovery processes in order to achieve economic production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Undeveloped acreage*. Lease acreage on which wells have not been drilled or completed to a point that would
permit the production of commercial quantities of natural gas, NGLs or oil regardless of whether such acreage contains proved reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Unit*. The joining of all or substantially all interests in a reservoir or field, rather than a single
tract, to provide for development and operation without regard to separate property interests. Also, the area covered by a unitization agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Weighted Average Royalty.* The weighted average of our royalty interests is used to approximate the average
net royalty acres for our mineral interests. Calculated as the sum of the products of net mineral acres and royalty percentage, divided by the total royalty percentage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Wellbore*. The hole drilled by the bit that is equipped for natural gas production on a completed well.
Also called well or borehole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Working interest*. The right granted to the lessee of a property to develop, produce and own natural gas,
NGLs, oil or other minerals. The working interest owners bear the exploration, development and operating costs on either a cash, penalty or carried basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *WIP*. Wells-in-progress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *WTI*. West Texas Intermediate.

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**6,925,000 Shares**![LOGO](g86452g96m82.jpg)

**Class A Common Stock** 

**Preliminary Prospectus** 

***Joint Lead Bookrunners***

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| | | |
|:---|:---|:---|
| **Raymond James** | **Stifel** | **J.P. Morgan** |

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***Bookrunning Managers***

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| | |
|:---|:---|
| **Capital One Securities** | **Stephens Inc.** |

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***Co-Manager***

**Tuohy Brothers** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2026** 

Until , 2026 (25 days after the date of this prospectus), all dealers that buy, sell or trade in shares of these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

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##### [**Table of Contents**](#toc)
**PART II — INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13. Other Expenses of Issuance and Distribution.** 

The following table sets forth all costs and expenses, other than the underwriting discount, paid or payable by us in connection with the sale of the common stock being registered. All amounts shown are estimates except for the SEC registration fee, FINRA filing fee and the listing fee for NYSE.

---

| | |
|:---|:---|
|  | **Amount to<br>be Paid** |
|  SEC Registration Fee | $29694 |
|  FINRA filing fee | 17253 |
|  Stock exchange listing fee | 325000 |
|  Printing | 550000 |
|  Legal fees and expenses | 4000000 |
|  Accounting fees and expenses | 500000 |
|  Transfer agent and registrar fees | 250000 |
|  Miscellaneous expenses | 2500000<sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total: | $8171947 |

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(1) Reflects certain fees and expenses related to the Internalization.

**Item 14. Indemnification of Officers and Directors.** 

Section 102 of the DGCL allows a corporation to provide in its certificate of incorporation that a director or officer of the corporation will not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except where the director or officer breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law, obtained an improper personal benefit or, with respect to an officer only, in any action by or in the right of the corporation. Our amended and restated certificate of incorporation, which will become effective upon the closing of this offering, will provide that no director or officer of WhiteHawk Income Corporation shall be personally liable to it or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, as applicable, to the fullest extent permitted by applicable law as it may be amended.

Section 145 of the DGCL provides that a corporation has the power to indemnify a director, officer, employee, or agent of the corporation, or a person serving at the request of the corporation for another corporation, partnership, joint venture, trust or other enterprise in related capacities (collectively, "Covered Persons"), against expenses (including attorneys' fees) (and, with respect to actions other than actions brought by or in the right of the corporation, judgments, fines and amounts paid in settlement) actually and reasonably incurred by the person in connection with an action, suit or proceeding to which he or she was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of such position, if such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery or other adjudicating court determines that, despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or such other court shall deem proper.

Our amended and restated bylaws will authorize the indemnification of our officers and directors, to the fullest extent permitted by applicable law, or a Covered Person, including an officer or director, who was or is made or

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is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the Company or, while a director or officer of the Company, is or was serving at the request of the Company as a director, officer, employee or agent of another corporation or of a partnership, limited liability company, joint venture, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred by such Covered Person. Notwithstanding the preceding sentence, except as otherwise provided in our amended and restated bylaws, the Company shall be required to indemnify a Covered Person in connection with a proceeding (or part thereof) commenced by such Covered Person only if the commencement of such proceeding (or part thereof) by the Covered Person was authorized in the specific case by the board of directors.

We intend to enter into indemnification agreements with each of our executive officers and directors. These agreements, among other things, will require the Company to indemnify each executive officer and director to the fullest extent permitted by Delaware law, including indemnification of expenses, such as attorneys' fees, judgments, fines and settlement amounts incurred by the director or executive officer in any action or proceeding, including any action or proceeding by or in right of the Company, arising out of the person's services as a director or executive officer.

Our amended and restated certificate of incorporation also provides that the Corporation shall have the power to provide rights to indemnification and advancement of expenses to its current and former officers, directors, employees and agents and to any person who is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

We expect to maintain standard policies of insurance that provide coverage (i) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (ii) to the Company with respect to indemnification payments that it may make to such directors and officers.

In any underwriting agreement we enter into in connection with the sale of common stock being registered hereby, the underwriters will agree to indemnify, under certain conditions, us, our directors, our officers and persons who control us within the meaning of the Securities Act against certain liabilities.

**Item 15. Recent Sales of Unregistered Securities.** 

From January 1, 2023 to May 26, 2026, we made sales or issuances to certain accredited investors of unregistered shares of Class A common stock listed in the table below:

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| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  2/7/2023 | 14625 | $358235.00 | $23499.78 |
|  2/24/2023 | 49628 | $1232721.50 | $97281.54 |
|  3/7/2023 | 8898 | $222450.00 | $18908.25 |
|  3/22/2023 | 40524 | $982305.00 | $54377.33 |
|  4/7/2023 | 7480 | $187000.00 | $15895.00 |
|  4/21/2023 | 20313 | $500003.31 | $35825.08 |
|  4/28/2023 | 11600 | $290000.00 | $24650.00 |
|  5/5/2023 | 6377 | $157191.50 | $11261.79 |
|  5/22/2023 | 10653 | $259945.50 | $16098.64 |
|  6/5/2023 | 10168 | $254200.00 | $21607.00 |
|  6/23/2023 | 28012 | $688492.00 | $47422.30 |
|  6/30/2023 | 11938 | $293983.00 | $20789.58 |
|  7/21/2023 | 13895 | $340932.87 | $22920.10 |
|  8/7/2023 | 16993 | $419975.88 | $31136.17 |

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| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  8/22/2023 | 19730 | $493125.00 | $41790.94 |
|  8/28/2023 | 13823 | $343980.50 | $27739.51 |
|  9/6/2023 | 3463 | $84980.50 | $5724.51 |
|  9/21/2023 | 23070 | $576625.00 | $49013.13 |
|  9/29/2023 | 32947 | $823675.00 | $70012.38 |
|  10/5/2023 | 10040 | $251000.00 | $21335.00 |
|  10/23/2023 | 38260 | $956375.00 | $81167.20 |
|  11/7/2023 | 26289 | $654991.50 | $53574.79 |
|  11/21/2023 | 22228 | $549958.00 | $41348.95 |
|  12/6/2023 | 5800 | $145000.00 | $12325.00 |
|  12/21/2023 | 24766 | $615466.06 | $48841.63 |
|  12/27/2023 | 3120 | $78000.00 | $6630.00 |
|  1/11/2024 | 8005 | $199999.68 | $16874.97 |
|  1/26/2024 | 11400 | $285000.00 | $24225.00 |
|  2/8/2024 | 4128 | $100008.00 | $5500.20 |
|  2/22/2024 | 24727 | $614984.50 | $49274.61 |
|  3/8/2024 | 7950 | $198499.38 | $16622.45 |
|  3/22/2024 | 6188 | $149918.00 | $8247.95 |
|  3/28/2024 | 5306 | $130091.00 | $8652.28 |
|  4/4/2024 | 1000 | $25000.00 | $2125.00 |
|  4/25/2024 | 10752 | $268800.00 | $22848.00 |
|  4/30/2024 | 2110 | $49585.00 | $1239.63 |
|  5/8/2024 | 2400 | $60000.00 | $5100.00 |
|  5/22/2024 | 12520 | $313000.00 | $26605.00 |
|  6/5/2024 | 6824 | $164864.00 | $8621.36 |
|  6/19/2024 | 25270 | $631750.00 | $53698.75 |
|  7/2/2024 | 6320 | $158000.00 | $13430.00 |
|  7/10/2024 | 39943 | $991858.32 | $77974.99 |
|  7/24/2024 | 18600 | $465000.00 | $39525.00 |
|  8/7/2024 | 13089 | $324991.50 | $25524.79 |
|  8/21/2024 | 11029 | $269981.50 | $17549.54 |
|  9/4/2024 | 1600 | $40000.00 | $3400.00 |
|  9/16/2024 | 14740 | $368500.00 | $31322.50 |
|  9/25/2024 | 13722 | $342967.38 | $29069.80 |
|  10/9/2024 | 10372 | $259256.25 | $21993.14 |
|  10/23/2024 | 12382 | $303493.00 | $20103.33 |
|  11/6/2024 | 8384 | $209600.00 | $17816.00 |
|  11/21/2024 | 21370 | $534250.00 | $45411.25 |
|  12/6/2024 | 13423 | $333980.50 | $26889.51 |
|  12/18/2024 | 38988 | $942468.00 | $49811.70 |
|  12/30/2024 | 17315 | $427452.50 | $31236.31 |
|  12/31/2024 | 4000 | $102500.00 | $10625.00 |
|  1/9/2025 | 7600 | $190000.00 | $16150.00 |
|  1/23/2025 | 7368 | $184200.00 | $15657.00 |
|  2/7/2025 | 24258 | $601665.00 | $46643.63 |
|  2/21/2025 | 17253 | $423985.50 | $29139.64 |
|  2/28/2025 | 7255 | $174992.50 | $8874.81 |
|  3/7/2025 | 16790 | $414965.00 | $30774.13 |
|  3/14/2025 | 120 | $2756.62 |  |
|  3/25/2025 | 25899 | $642688.50 | $50129.21 |
|  3/28/2025 | 6000 | $150000.00 | $12750.00 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  4/9/2025 | 16807 | $409004.50 | $24265.11 |
|  4/15/2025 | 257 | $5875.78 |  |
|  4/24/2025 | 32238 | $789993.00 | $52149.83 |
|  4/30/2025 | 40508 | $1006958.00 | $80193.95 |
|  5/8/2025 | 38486 | $962150.00 | $81782.75 |
|  5/15/2025 | 800 | $18296.44 |  |
|  5/22/2025 | 93132 | $2313939.00 | $183185.48 |
|  5/30/2025 | 64876 | $1612327.00 | $128049.18 |
|  6/10/2025 | 120983 | $3003455.00 | $235440.88 |
|  6/12/2025 | 51288 | $1271988.00 | $98519.70 |
|  6/16/2025 | 1975 | $45192.62 |  |
|  6/20/2025 | 225805 | $5575001.50 | $407959.04 |
|  6/27/2025 | 153126 | $3749716.50 | $244998.41 |
|  7/2/2025 | 30877 | $740009.50 | $32900.24 |
|  7/10/2025 | 54840 | $1359831.00 | $105086.78 |
|  7/15/2025 | 2610 | $59725.84 |  |
|  7/16/2025 | 50260 | $1239461.50 | $89338.04 |
|  7/25/2025 | 81885 | $2014543.50 | $140609.59 |
|  7/31/2025 | 93594 | $2323770.00 | $182405.25 |
|  8/5/2025 | 116315 | $2862276.50 | $200430.91 |
|  8/15/2025 | 3421 | $78276.50 |  |
|  8/25/2025 | 109557 | $2727748.50 | $221352.71 |
|  8/28/2025 | 210429 | $5254981.50 | $441274.54 |
|  9/10/2025 | 207563 | $5170998.50 | $422542.96 |
|  9/15/2025 | 4004 | $91607.62 |  |
|  9/19/2025 | 128795 | $3170688.50 | $223273.21 |
|  9/25/2025 | 169169 | $4169814.50 | $298588.36 |
|  9/30/2025 | 705572 | $16474713.00 | $329817.63 |
|  10/10/2025 | 31191 | $760306.50 | $46325.66 |
|  10/15/2025 | 4684 | $107176.43 |  |
|  10/24/2025 | 25298 | $627665.00 | $48853.63 |
|  10/30/2025 | 13875 | $346953.37 | $29525.10 |
|  11/10/2025 | 29963 | $747480.50 | $62037.01 |
|  11/14/2025 | 6490 | $148493.73 |  |
|  11/25/2025 | 44123 | $1092522.50 | $82945.06 |
|  11/30/2025 | (136) | $(3104.43) |  |
|  12/10/2025 | 64314 | $1595079.00 | $123576.98 |
|  12/15/2025 | 6761 | $154687.78 |  |
|  12/18/2025 | 33666 | $839097.00 | $68923.43 |
|  12/30/2025 | 122229 | $3024577.50 | $227810.44 |
|  1/15/2026 | 26337 | $643709.12 | $41225.00 |
|  1/30/2026 | 9338 | $2 33450.00 | $19843.25 |
|  2/12/2026 | 12000 | $3 00000.00 | $25500.00 |
|  2/13/2026 | 8005 | $1 83158.44 |  |
|  2/27/2026 | 35564 | $8 85842.00 | $72234.05 |
|  3/12/2026 | 8678 | $2 10567.50 | $11898.69 |
|  3/13/2026 | 8475 | $1 93897.98 |  |
|  3/31/2026 | 37601 | $933645.50 | $73363.14 |
|  4/15/2026 | 8794 | $201208.49 |  |
|  4/16/2026 | 13560 | $339000.00 | $28815.00 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  4/30/2026 | 65437 | $1626994.00 | $129899.35 |
|  5/7/2026 | 161021 | $3983019.50 | $298601.49 |

---

From January 1, 2023 to May 26, 2026, we made sales or issuances to certain accredited investors of unregistered shares of Class I common stock listed in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  2/7/2023 | 21853 | $499996.64 |  |
|  2/24/2023 | 50261 | $1149971.68 |  |
|  4/21/2023 | 10927 | $250009.76 |  |
|  4/28/2023 | 4370 | $99985.60 |  |
|  5/22/2023 | 656 | $15009.28 |  |
|  6/5/2023 | 12457 | $285016.16 |  |
|  6/30/2023 | 109266 | $2500006.08 |  |
|  8/7/2023 | 1003 | $22948.64 |  |
|  8/28/2023 | 93968 | $2149987.84 |  |
|  9/21/2023 | 10927 | $250009.76 |  |
|  10/23/2023 | 87413 | $2000009.40 |  |
|  12/21/2023 | 12018 | $274971.84 |  |
|  1/26/2024 | 4371 | $100008.48 |  |
|  4/4/2024 | 4371 | $100008.48 |  |
|  4/25/2024 | 16385 | $374888.80 |  |
|  4/30/2024 | 2840 | $64979.20 |  |
|  5/8/2024 | 13111 | $299979.68 |  |
|  6/5/2024 | 1192 | $27283.50 |  |
|  8/7/2024 | 10927 | $250009.76 |  |
|  11/21/2024 | 28408 | $649975.04 |  |
|  1/9/2025 | 10926 | $249986.88 |  |
|  2/7/2025 | 4371 | $100008.48 |  |
|  2/28/2025 | 10926 | $249986.88 |  |
|  3/25/2025 | 4370 | $99985.60 |  |
|  3/28/2025 | 58740 | $1343971.20 |  |
|  4/9/2025 | 15298 | $350018.24 |  |
|  4/15/2025 | 104 | $2389.39 |  |
|  4/24/2025 | 1092 | $24984.96 |  |
|  5/8/2025 | 21855 | $500042.40 |  |
|  5/15/2025 | 323 | $7381.71 |  |
|  5/22/2025 | 9561 | $218755.68 |  |
|  5/30/2025 | 14641 | $334986.08 |  |
|  6/10/2025 | 585822 | $13403607.36 |  |
|  6/12/2025 | 11579 | $264927.52 |  |
|  6/16/2025 | 432 | $9878.63 |  |
|  6/20/2025 | 114923 | $2629444.36 |  |
|  6/23/2025 | 2788466 | $63800102.08 |  |
|  6/27/2025 | 62216 | $1423502.08 |  |
|  7/2/2025 | 15145 | $346517.60 |  |
|  7/10/2025 | 43705 | $999970.40 |  |
|  7/15/2025 | 720 | $16480.98 |  |
|  7/16/2025 | 93966 | $2149942.08 |  |
|  7/25/2025 | 177271 | $4055960.48 |  |
|  7/31/2025 | 52273 | $1196006.24 |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  8/5/2025 | 227959 | $5215701.92 |  |
|  8/15/2025 | 4824 | $110365.01 |  |
|  8/25/2025 | 51355 | $1175002.40 |  |
|  9/10/2025 | 29753 | $680748.64 |  |
|  9/15/2025 | 5959 | $136335.65 |  |
|  9/19/2025 | 33622 | $769271.36 |  |
|  9/25/2025 | 80221 | $1835456.48 |  |
|  9/30/2025 | 772041 | $17664298.08 |  |
|  10/15/2025 | 6886 | $157543.62 |  |
|  10/24/2025 | 10926 | $249986.88 |  |
|  10/30/2025 | 2668 | $61051.38 |  |
|  11/10/2025 | 4370 | $99985.60 |  |
|  11/14/2025 | 7612 | $174167.73 |  |
|  11/30/2025 | 2016 | $46133.24 |  |
|  12/10/2025 | 32780 | $750006.40 |  |
|  12/15/2025 | 6640 | $151929.59 |  |
|  12/18/2025 | 9614 | $219968.32 |  |
|  12/30/2025 | 10919 | $249826.72 |  |
|  1/15/2026 | 18615 | $425903.75 |  |
|  1/30/2026 | 22943 | $524935.84 |  |
|  2/12/2026 | 5462 | $124970.56 |  |
|  2/13/2026 | 8656 | $198040.10 |  |
|  2/27/2026 | 5465 | $125039.20 |  |
|  3/12/2026 | 10926 | $249986.88 |  |
|  3/13/2026 | 8709 | $199254.31 |  |
|  3/31/2026 | 29524 | $675509.12 |  |
|  4/15/2026 | 8689 | $198810.06 |  |
|  4/16/2026 | 16453 | $376444.64 |  |
|  4/30/2026 | 28408 | $649975.04 |  |
|  5/7/2026 | 140575 | $3216356.00 |  |

---

From January 1, 2023 to May 26, 2026, we made sales or issuances to certain accredited investors of unregistered shares of Class T common stock listed in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  2/7/2023 | 1000 | $25000.00 | $1625.00 |
|  3/25/2025 | 6000 | $150000.00 | $9750.00 |
|  5/15/2025 | 32 | $728.83 |  |
|  5/30/2025 | 2000 | $50000.00 | $3250.00 |
|  6/12/2025 | 2000 | $50000.00 | $3250.00 |
|  6/16/2025 | 32 | $728.83 |  |
|  6/27/2025 | 2000 | $50000.00 | $3250.00 |
|  7/10/2025 | 2000 | $50000.00 | $3250.00 |
|  7/15/2025 | 46 | $1046.21 |  |
|  7/25/2025 | 600 | $15000.00 | $975.00 |
|  8/5/2025 | 1200 | $30000.00 | $1950.00 |
|  8/15/2025 | 46 | $1051.18 |  |
|  9/10/2025 | 1000 | $25000.00 | $1625.00 |
|  9/15/2025 | 60 | $1370.73 |  |
|  9/30/2025 | 5505 | $125954.40 |  |
|  10/15/2025 | 68 | $1560.04 |  |
|  10/30/2025 | (55) | $(1256.00) |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  11/14/2025 | 83 | $1897.88 |  |
|  11/30/2025 | (19) | $(442.20) |  |
|  12/15/2025 | 68 | $1555.68 |  |
|  1/15/2026 | 68 | $1566.24 |  |
|  2/13/2026 | 76 | $1734.31 |  |
|  3/13/2026 | 76 | $1745.01 |  |
|  4/15/2026 | 77 | $1756.84 |  |

---

From January 1, 2023 to May 26, 2026, we made sales or issuances to certain accredited investors of unregistered shares of our Series B preferred stock listed in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  3/20/2024 | 255 | $255000.00 | $25500.00 |
|  3/27/2024 | 1186 | $1182600.00 | $115200.00 |
|  4/25/2024 | 699 | $692910.00 | $63627.30 |
|  5/8/2024 | 100 | $100000.00 | $10000.00 |
|  5/22/2024 | 406 | $401520.00 | $35985.60 |
|  6/5/2024 | 135 | $135000.00 | $13500.00 |
|  6/18/2024 | 150 | $150000.00 | $15000.00 |
|  7/2/2024 | 445 | $445000.00 | $44500.00 |
|  7/10/2024 | 434 | $434000.00 | $43400.00 |
|  7/24/2024 | 280 | $280000.00 | $24500.00 |
|  8/7/2024 | 639 | $611420.00 | $35492.60 |
|  8/9/2024 | 20 | $20000.00 | $2000.00 |
|  8/21/2024 | 545 | $524630.00 | $33518.90 |
|  9/4/2024 | 257 | $245310.00 | $13659.30 |
|  9/16/2024 | 356 | $345080.00 | $24352.40 |
|  9/25/2024 | 533 | $525860.00 | $45945.80 |
|  10/9/2024 | 678 | $670090.00 | $59652.70 |
|  10/23/2024 | 185 | $185000.00 | $18500.00 |
|  11/6/2024 | 311 | $299240.00 | $18987.20 |
|  11/21/2024 | 433 | $428100.00 | $38253.00 |
|  12/6/2024 | 55 | $55000.00 | $5500.00 |
|  12/18/2024 | 359 | $340240.00 | $16577.20 |
|  12/30/2024 | 1362 | $1326300.00 | $99429.00 |
|  1/9/2025 | 403 | $394530.00 | $31575.90 |
|  1/23/2025 | 568 | $564640.00 | $53339.20 |
|  2/7/2025 | 581 | $572530.00 | $49375.90 |
|  2/21/2025 | 571 | $554130.00 | $39723.90 |
|  3/7/2025 | 1557 | $1486510.00 | $83095.30 |
|  3/25/2025 | 726 | $714380.00 | $60631.40 |
|  4/9/2025 | 628 | $594540.00 | $28336.20 |
|  4/24/2025 | 1047 | $1011160.00 | $67784.80 |
|  4/30/2025 | 294 | $290920.00 | $26227.60 |
|  5/8/2025 | 338 | $319940.00 | $15198.20 |
|  5/22/2025 | 290 | $285100.00 | $23953.00 |
|  5/29/2025 | 41 | $41000.00 | $4100.00 |
|  5/30/2025 | 339 | $337530.00 | $32385.90 |
|  6/11/2025 | 1068 | $1012840.00 | $49985.20 |
|  6/20/2025 | 243 | $236490.00 | $17594.70 |
|  7/10/2025 | 673 | $647240.00 | $40767.20 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  7/25/2025 | 690 | $677820.00 | $56454.60 |
|  8/8/2025 | 1485 | $1448950.00 | $111368.50 |
|  8/25/2025 | 1415 | $1363550.00 | $88506.50 |
|  9/10/2025 | 1046 | $1016460.00 | $74173.80 |
|  9/25/2025 | 2426 | $2314420.00 | $127672.60 |
|  10/10/2025 | 1182 | $1132510.00 | $67225.30 |
|  10/24/2025 | 1853 | $1791190.00 | $121635.70 |
|  11/10/2025 | 1837 | $1737810.00 | $81534.30 |
|  11/25/2025 | 588 | $566790.00 | $36953.70 |
|  12/10/2025 | 2370 | $2253800.00 | $117314.00 |
|  12/18/2025 | 1026 | $999680.00 | $75490.40 |
|  12/30/2025 | 566 | $552910.00 | $43117.30 |
|  1/15/2026 | 1376 | $1325130.00 | $85143.90 |
|  1/30/2026 | 2309 | $2241540.00 | $161108.40 |
|  2/12/2026 | 1321 | $1244710.00 | $53457.70 |
|  2/27/2026 | 3202 | $3107780.00 | $223153.40 |
|  3/12/2026 | 1981 | $1881460.00 | $98560.00 |
|  3/19/2026 | 1285 | $1285000.00 | $128500.00 |
|  3/31/2026 | 811 | $793780.00 | $63880.00 |
|  4/16/2026 | 567 | $543200.00 | $32900.00 |
|  4/27/2026 | 700 | $700000.00 | $70000.00 |
|  4/30/2026 | 1676 | $1652900.00 | $144500.00 |
|  5/7/2026 | 4684 | $4616540.00 | $400940.00 |

---

On November 12, 2023, we made sales or issuances to certain accredited investors of 44,100.00 unregistered shares of our Series A preferred stock for an aggregate offering price of $44,100,000.00 without any selling commissions. On March 27, 2025, we made sales or issuances to certain accredited investors of 56,000.00 unregistered shares of our Series C preferred stock for an aggregate offering price of $56,000,000.00 without any selling commissions.

On January 23, 2026, the Company granted an aggregate of 84,704 restricted stock units ("RSUs") under the Existing 2026 Plan to certain directors, officers, and employees of the Company, at a weighted average grant-date fair value of $22.88 per share, representing an aggregate fair value of $1.9 million. The LTIP authorizes the issuance of up to 200,000 shares, and following such grants, 115,296 shares remained available for future issuance thereunder.

From March 30, 2026 through March 31, 2026, we made sales or issuances to certain accredited investors of 37,780 unregistered shares of our Series D preferred stock for an aggregate offering price of $37.8 million without any selling commissions.

The transactions described above were made pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506(b) under Regulation D of the Securities Act in that such sales and issuances did not involve a public offering.

On December 29, 2025, our board of directors ratified the sales and issuances of the unregistered securities described above in accordance with Section 204 of the DGCL. In connection with the ratification, we filed certificates of validation with the Delaware Secretary of State to reflect the intended number of authorized shares of common stock and preferred stock in our certificate of incorporation, which have been processed and are effective. We delivered notice of the ratification to our stockholders on January 15, 2026, in accordance with the requirements of Section 204 of the DGCL. Under Section 204 of the DGCL, any claim that any of the ratified defective corporate acts or putative stock is void or voidable due to the failures of authorization (as that term is used in Section 204), or any claim that the Delaware Court of Chancery should declare in its discretion that the ratification thereof not be effective or be effective only on certain conditions, must be brought within 120 days from the date on which notice of the ratification is given. This ratification period expired on May 15, 2026 without any claims.

------

##### [**Table of Contents**](#toc)
**Item 16. Exhibits and Financial Statement Schedules.** 

(a) Exhibits:

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 1.1 | [Form of Underwriting Agreement.](d86452dex11.htm) |
| 3.1‡ | [Amended and Restated Certificate of Incorporation of the Registrant (in effect prior to the offering).](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex31.htm) |
| 3.2‡ | [Amendment to Amended and Restated Certificate of Incorporation of the Registrant (in effect prior to the offering).](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex32.htm) |
| 3.3‡ | [Form of Amended and Restated Certificate of Incorporation of the Registrant (to be in effect after the offering).](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex33.htm) |
| 3.4‡ | [Certificate of Designations of Series B Preferred Stock of the Registrant.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex34.htm) |
| 3.5‡ | [Certificate of Increase of Series B Preferred Stock](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex35.htm) |
| 3.6‡ | [Certificate of Designations of Series D Preferred Stock of the Registrant.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex35.htm) |
| 3.7‡ | [Bylaws of the Registrant (in effect prior to the offering).](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex36.htm) |
| 3.8‡ | [Form of Amended and Restated Bylaws of the Registrant (to be in effect after the offering).](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex37.htm) |
| 4.1 | [Form of Specimen Stock Certificate evidencing the shares of Class A common stock.](d86452dex41.htm) |
| 4.2‡ | [Note Purchase Agreement, dated as of September 18, 2024, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526215605/d86452dex42.htm) |
| 4.3‡ | [First Amendment to Note Purchase Agreement, dated as of March 31, 2025, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526215605/d86452dex43.htm) |
| 4.4‡ | [Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526215605/d86452dex44.htm) |
| 4.5‡ | [Third Amendment to Note Purchase Agreement, dated as of January 27, 2026, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526215605/d86452dex45.htm) |
| 4.6‡ | [Fourth Amendment to Note Purchase Agreement, dated as of March 26, 2026, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526215605/d86452dex46.htm) |
| 4.7‡ | [Fifth Amendment to Note Purchase Agreement, dated as of March 30, 2026, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526215605/d86452dex47.htm) |
| 4.8‡ | [Amended and Restated Note Purchase Agreement, dated May 20, 2026, by and among WhiteHawk Income Operating Partnership L.P., U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex48.htm) |
| 5.1 | [Opinion of Latham & Watkins LLP.](d86452dex51.htm) |
| 10.1‡ | [Administrative Services Agreement, dated as of March 1, 2022, by and between WhiteHawk Income Corporation and WhiteHawk Management, LLC.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex101.htm) |
| 10.2‡ | [Amended and Restated Investment Management Agreement, dated as of October 3, 2025, by and between WhiteHawk Income Corporation and WhiteHawk Management, LLC.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex102.htm) |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 10.3‡ | [Purchase and Sale Agreement, dated as of March 31, 2025, by and between Three Rivers Royalty, LLC and WhiteHawk Income Marcellus LLC.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex103.htm) |
| 10.4‡ | [Agreement and Plan of Merger, dated as of May 8, 2025, by and among PHX Minerals Inc., WhiteHawk Acquisition, Inc. and WhiteHawk Merger Sub, Inc.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex104.htm) |
| 10.5‡ | [Form of Registration Rights Agreement (to be in effect after the offering).](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex105.htm) |
| 10.6‡ | [Form of Indemnification Agreement.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex106.htm) |
| 10.7‡ | [WhiteHawk Income Corporation 2026 Equity Incentive Plan, dated January 23, 2026.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex107.htm) |
| 10.8‡ | [Form of Amended and Restated Limited Partnership Agreement of WhiteHawk OpCo (to be in effect after the offering).](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex108.htm) |
| 10.9‡ | [Form of Contribution Agreement by and between WhiteHawk Income Corporation, WhiteHawk Income Operating Partnership L.P., WhiteHawk Management LLC and WhiteHawk Minerals LLC.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex109.htm) |
| 10.10‡ | [Legacy Form of Restricted Stock Unit Grant Agreement for Employees.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex1010.htm) |
| 10.11‡ | [Legacy Form of Restricted Stock Unit Grant Agreement for Directors.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex1011.htm) |
| 10.12‡ | [Credit Agreement, dated as of May 10, 2026, among WhiteHawk Income Corporation, as Parent, WhiteHawk Income Operating Partnership L.P., as Borrower, Capital One, National Association, as Administrative Agent and Issuing Bank, and the lenders party thereto.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex1012.htm) |
| 10.13 | [Amended and Restated Credit Agreement, dated as of May 25, 2026, among WhiteHawk Income Corporation, as Parent, WhiteHawk Income Operating Partnership L.P., as Borrower, Capital One, National Association, as Administrative Agent and Issuing Bank, and the lenders party thereto.](d86452dex1013.htm) |
| 10.14+‡ | [Amended and Restated WhiteHawk Income Corporation 2026 Equity Incentive Plan, to be effective upon the consummation of this offering.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex1013.htm) |
| 10.15+‡ | [Form of Option Agreement](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex1014.htm) |
| 10.16+‡ | [Form of Employee Restricted Stock Unit Agreement](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex1015.htm) |
| 10.17+‡ | [Form of Director Restricted Stock Unit Agreement](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex1016.htm) |
| 10.18+‡ | [WhiteHawk Minerals Corp. Non-Employee Director Compensation Policy, to be effective upon the consummation of this offering.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex1017.htm) |
| 10.19+‡ | [Form of Employment Agreement by and between Daniel Herz, WhiteHawk Minerals Corp., WhiteHawk Income Operating Partnership L.P. and any subsidiaries or affiliates as may employ Mr. Herz from time to time.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex1018.htm) |
| 10.20+ | [Form of Employment Agreement by and between Jeffrey Slotterback, WhiteHawk Minerals Corp., WhiteHawk Income Operating Partnership L.P. and any subsidiaries or affiliates as may employ Mr. Slotterback from time to time.](d86452dex1020.htm) |
| 10.21+ | [Form of Employment Agreement by and between Stephen Pilatzke, WhiteHawk Minerals Corp., WhiteHawk Income Operating Partnership L.P. and any subsidiaries or affiliates as may employ Mr. Pilatzke from time to time.](d86452dex1021.htm) |
| 10.22‡ | [Form of Letter Agreement for 2025 Restricted Stock, by and between us, WhiteHawk Management, LLC, and WhiteHawk Minerals LLC](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex1021.htm) |
| 16.1‡ | [Letter from Whitley Penn LLP to the Securities and Exchange Commission.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex161.htm) |
| 21.1‡ | [List of subsidiaries of the Registrant.](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex211.htm) |

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##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 23.1 | [Consent of Baker Tilly US, LLP.](d86452dex231.htm) |
| 23.2 | [Consent of Whitley Penn LLP.](d86452dex232.htm) |
| 23.3 | [Consent of Plante & Moran, PLLC.](d86452dex233.htm) |
| 23.4 | [Consent of Ernst & Young LLP.](d86452dex234.htm) |
| 23.5‡ | [Consent of Schaper Energy Consulting, LLC, regarding the report of Schaper Energy Consulting, LLC, Independent Petroleum Engineering Consultants, dated February 4, 2025, for WhiteHawk Income Corporation.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex235.htm) |
| 23.6‡ | [Consent of Cawley, Gillespie and Associates, Inc. regarding the Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants, dated January 13, 2025, for PHX Minerals, Inc.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex236.htm) |
| 23.7‡ | [Consent of Ryder Scott Company, L.P. regarding the Report of Ryder Scott Company, L.P., Independent Petroleum Engineering Consultants, dated March 31, 2026, for Three Rivers Royalty, LLC.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex237.htm) |
| 23.8‡ | [Consent of Cawley, Gillespie and Associates, Inc. regarding the Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants, for WhiteHawk Income Corporation and with respect to WhiteHawk Income Corporation's estimated reserves and related future net cash flows related to its properties as of December 31, 2025.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex238.htm) |
| 23.9 | [Consent of Latham & Watkins LLP (included in Exhibit 5.1).](d86452dex51.htm) |
| 24.1‡ | [Power of Attorney (included on signature page).](http://www.sec.gov/Archives/edgar/data/1921603/000119312526215605/d86452ds1.htm#sig) |
| 99.1‡ | [Report of Schaper Energy Consulting, LLC, Independent Petroleum Engineering Consultants, dated February 4, 2025 for WhiteHawk Income Corporation.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex991.htm) |
| 99.2‡ | [Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants, dated January 13, 2025 for PHX Minerals, Inc.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex992.htm) |
| 99.3‡ | [Report of Ryder Scott Company, L.P., Independent Petroleum Engineering Consultants, dated March 31, 2026 for Three Rivers Royalty, LLC.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex993.htm) |
| 99.4‡ | [Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants for WhiteHawk Income Corporation.](http://www.sec.gov/Archives/edgar/data/0001921603/000119312526215605/d86452dex994.htm) |
| 99.5‡ | [Consent of Director Nominee (Trey Karlovich).](http://www.sec.gov/Archives/edgar/data/1921603/000119312526233140/d86452dex995.htm) |
| 107 | [Filing Fee Table.](d86452dexfilingfees.htm) |

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‡ Previously filed.

+ Indicates management contracts or compensatory plans/arrangements.

(b) Financial Statement Schedules:

All financial statement schedules are omitted because the information required to be set forth therein is not applicable or is shown in the consolidated financial statements or the notes thereto.

**Item 17. Undertakings.** 

The undersigned registrant hereby undertakes to provide to the underwriters, at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

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##### [**Table of Contents**](#toc)
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer, or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of
prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of
this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that
contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Philadelphia, State of Pennsylvania, on May 26, 2026.

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| | |
|:---|:---|
| WhiteHawk Income Corporation | WhiteHawk Income Corporation |
| By: | /s/ Daniel Herz |
|  | Name: Daniel Herz |
|  | Title: Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities indicated on May 26, 2026.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| /s/ Daniel Herz<br> Daniel Herz | Chief Executive Officer and Director<br>(Principal Executive Officer) |
| /s/ Jeffrey Slotterback<br> Jeffrey Slotterback | Chief Financial Officer, Treasurer, Secretary and Director<br> (Principal Financial Officer) |
| /s/ Stephen Pilatzke<br> Stephen Pilatzke | Chief Accounting Officer<br> (Principal Accounting Officer) |
| \*<br> Jeffery Smith | President and Director |
| \*<br> Michael Downs | Chief Operating Officer and Director |
| \*<br> Matthew Heinlein | Vice President, Head of Corporate Development & Strategy and Director |
| \*<br> Alan Bigman | Director |
| \*<br> Andrew Ceitlin | Director |
| \*<br> Peggy Gold | Director |

---

---

| |
|:---|
| /s/ Daniel Herz |
| Daniel Herz |
| Attorney-in-fact |

---

## Exhibit 1.1

**Exhibit 1.1** 

**[ ] Shares** 

**WHITEHAWK INCOME CORPORATION** 

**Class A Common Stock** 

**UNDERWRITING AGREEMENT** 

St. Petersburg, Florida

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026

Raymond James & Associates, Inc.

Stifel, Nicolaus & Company, Incorporated

As representatives of the several underwriters

listed on <u>Schedule I</u> hereto

c/o Raymond James & Associates, Inc.

880 Carillon Parkway

St. Petersburg, Florida 33716

c/o Stifel, Nicolaus & Company, Incorporated

787 Seventh Avenue, 11<sup>th</sup> Floor

New York, New York 10019

Ladies and Gentlemen:

WhiteHawk Income Corporation, a Delaware corporation (the "<u>Company</u>"), proposes, subject to the terms and conditions stated herein, to issue and sell to the several underwriters named in <u>Schedule I</u> hereto (the "<u>Underwriters</u>"), an aggregate of [ ] shares of its Class A common stock, par value $[ ] per share (the "<u>Class</u> <u>A Common Stock</u>"). Such aggregate of [_______] shares to be purchased from the Company by the Underwriters are called the "<u>Firm Shares</u>." In addition, the Company has agreed to issue and sell to the Underwriters, upon the terms and conditions stated herein, up to an additional [ ] shares of Class A Common Stock (the "<u>Additional Shares</u>") to cover over-allotments by the Underwriters, if any. The Firm Shares and the Additional Shares are collectively referred to in this agreement (the "<u>Agreement</u>") as the "<u>Shares</u>." As part of the offering contemplated by this Agreement, the Representatives (as defined below) have agreed to reserve out of the Firm Shares purchased by it under this Agreement up to [ ]% of the Class A Common Stock for sale to the Company's directors, officers, employees and other parties associated with the Company (collectively, "<u>Participants</u>"), as set forth in the Prospectus (as defined in <u>Section</u> <u>1.1(a)</u>) under the heading "Underwriting" (the "<u>Directed Share Program</u>"). The Firm Shares to be sold by the Representatives pursuant to the Directed Share

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Program (the "<u>Directed Shares</u>") will be sold by the Representatives pursuant to this Agreement at the public offering price. Any Directed Shares not subscribed for by the end of the business day on which this Agreement is executed will be offered to the public by the Underwriters as set forth in the Prospectus. Raymond James & Associates, Inc. and Stifel, Nicolaus & Company, Incorporated are acting as the representatives of the Underwriters and in such capacity are referred to in the Agreement each as a "<u>Representative</u>" and collectively, the "<u>Representative</u><u>s</u>" or "<u>you</u>." The Company and WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership ("<u>OpCo</u>"), and the Underwriters are referred to in this Agreement collectively as the "<u>Parties</u>" and individually as a "<u>Party</u>." References herein to the Company shall include any successor entity resulting from the Reorganization Transactions (as defined below), including following any change of the Company's name to "WhiteHawk Minerals Corp."

It is understood and agreed to by all parties that prior to the initial closing of the proposed issuance and sale of the Shares (the "<u>Offering</u>"), the Company will enter into certain corporate reorganization transactions (the "<u>Reorganization Transactions</u>"), pursuant to which the following transactions, among others, will occur (as further described under the headings "Our Organizational Structure" and "Use of Proceeds" in the Time of Sale Information (as defined below)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company will amend and restate its certificate of incorporation to, among other things, (A) change its name to "WhiteHawk Minerals Corp."; (B) provide for the reclassification of shares held by the holders of shares of the Company's Class A Common Stock, Class I common stock, par value $0.0001 per share, and Class T common stock, par value $0.0001 per share, issued and outstanding immediately prior to the Offering into validly issued, fully-paid and non-assessable shares of Class A Common Stock, on a one-for-one basis; (C) provide for an adjustment to the number of authorized shares such that the Company's capital stock shall consist of 250,000,000 shares of Class A Common Stock, 100,000,000 shares of Class B common stock, par value $0.0001 per share ("<u>Class</u> <u>B Common Stock</u>," and together with the Class A Common Stock, the "<u>Common Stock</u>"), and 10,000,000 shares of preferred stock, par value $0.0001 per share; and (D) provide for the creation of Class B Common Stock in connection with the Company's anticipated "Up-C" structure, with each share of Class B Common Stock entitled to one vote per share and no economic rights (other than nominal par value upon liquidation); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) OpCo will enter into an amended and restated limited partnership agreement to, among other things, (A) appoint WhiteHawk Income OP GP LLC as the general partner of OpCo with the authority to manage and control the business and affairs of OpCo; (B) authorize the issuance of limited partnership interests in OpCo ("<u>OpCo Interests</u>") to the Company in exchange for the proceeds from the Offering, (C) provide the holders of OpCo Interests (together with a corresponding number of shares of Class B Common Stock) with the right to require OpCo to redeem their OpCo Interests for, at the Company's election (determined solely by our independent directors who are disinterested), cash or newly-issued shares of Class A Common Stock on a one-for-one basis (subject to customary adjustments), and (D) provide that, in connection with any redemption or exchange of OpCo Interests, a corresponding number of shares of Class B Common Stock held by the

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redeeming or exchanging holder will automatically be transferred to the Company for no consideration and canceled.

The Company and OpCo wish to confirm as follows their agreement with you and the Underwriters in connection with the several purchases of the Shares from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Representations and Warranties of the</u> <u>Company</u> <u>and OpCo</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The Company and OpCo hereby represent and warrant on the date hereof, and shall be deemed to represent and warrant on the Closing Date (as defined hereinafter), any Additional Closing Date (as defined hereinafter) and any other date as specified hereinafter or as the context may require, to each Underwriter, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A registration statement on Form S-1 (File No. 333-295743) relating to the Shares (i) has been prepared by the Company in conformity with the requirements of the Securities Act of 1933, as amended (the "<u>Act</u>"), and the rules and regulations of the Securities and Exchange Commission (the "<u>Commission</u>") thereunder; (ii) has been filed with the Commission under the Act; and (iii) has become effective under the Act. As used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Applicable Time</u>" means [ ] [A.M.][P.M.] (New York City time) on [ ], 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Effective Date</u>" means the date at which such registration statement, or the most recent post-effective amendment thereto, was declared effective by the Commission in accordance with the rules and regulations under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Free Writing Prospectus</u>" means each "free writing prospectus" (as defined in Rule 405 under the Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>Issuer Free Writing Prospectus</u>" means each "issuer free writing prospectus" (as defined in Rule 433 under the Act), including, without limitation, any "free writing prospectus" (as defined in Rule 405) relating to the Shares that is (i) required to be filed with the Commission by the Company, (ii) a "road show that is a written communication" within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission, or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i) because it contains a description of the Shares or of the offering thereof that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Preliminary Prospectus</u>" means any preliminary prospectus relating to the Shares included in such registration statement or filed with the Commission pursuant to Rule 424(b) under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "<u>Prospectus</u>" means the final prospectus relating to the Shares, as filed with the Commission pursuant to Rule 424(b) under the Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) "<u>Registration Statement</u>" means such registration statement, as amended as of the Effective Date, including any Preliminary Prospectus or the Prospectus, all exhibits to such registration statement and including the information deemed by virtue of Rule 430A under the Act to be part of such registration statement as of the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) "<u>Rule 462(b) Registration Statement</u>" means any registration statement filed by the Company with the Commission to register Additional Shares pursuant to Rule 462(b) under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) "<u>Testing-the-Waters Communication</u>" means any oral or written communication with potential investors undertaken in reliance on Section 5(d) or Rule 163B of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Time of Sale Information</u>" means, as of the Applicable Time, the most recent Preliminary Prospectus, together with the information included in <u>Schedule II(a</u><u>)</u> hereto and each Issuer Free Writing Prospectus filed or used by the Company at or before the Applicable Time, other than a road show, that is an Issuer Free Writing Prospectus but is not required to be filed under Rule 433 under the Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) "<u>Written Testing-the-Waters Communication</u>" means any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Act.

Any reference to the "<u>most recent Preliminary Prospectus</u>" shall be deemed to refer to the latest Preliminary Prospectus included in the Registration Statement or filed pursuant to Rule 424(b) under the Act prior to or on the date hereof. The Commission has not issued any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus or suspending the effectiveness of the Registration Statement, and, to the knowledge of the Company, no proceeding or examination for such purpose has been instituted or threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From the time of the initial confidential submission of the Registration Statement with the Commission (or, if earlier, the first date on which the Company engaged directly or through any person authorized to act on its behalf in any Testing-the-Waters Communications) through the date hereof, the Company is an "emerging growth company," as defined in Section 2(a) of the Act (an "<u>Emerging Growth Company</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company (i) has not engaged in any Testing-the-Waters Communication, other than Testing-the-Waters Communications with the consent of each of the Representatives, with entities that are reasonably believed to be qualified institutional buyers within the meaning of Rule 144A under the Act, or with institutions that are reasonably believed to be accredited investors within the meaning of Rule 501 under the Act and (ii) has not authorized anyone other than the Representatives to engage in Testing-the-Waters Communications. The Company reconfirms that the Representatives have been authorized to act on its behalf in undertaking Testing-the-Waters Communications. The Company has not distributed or approved for distribution any Written Testing-the-Waters Communications other than those listed on <u>Schedule II(b)</u> hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company was not at the time of initial filing of the Registration Statement, and at the earliest time thereafter that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Act) of the Shares, is not on the date hereof and will not be on the applicable Delivery Date (as defined hereinafter), an "ineligible issuer" (as defined in Rule 405 under the Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Registration Statement conformed and will conform in all material respects on the Effective Date and on the applicable Delivery Date, and any amendment to the Registration Statement filed after the date hereof will conform in all material respects when filed, to the requirements of the Act and the rules and regulations thereunder. The most recent Preliminary Prospectus conformed, and the Prospectus will conform, in all material respects when filed with the Commission pursuant to Rule 424(b) under the Act and on the applicable Delivery Date to the requirements of the Act and the rules and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Registration Statement did not, as of the Effective Date, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided that no representation or warranty is made as to information contained in or omitted from the Registration Statement in reliance upon and in conformity with written information furnished to the Company through the Representatives by or on behalf of any Underwriter specifically for inclusion therein, which information is specified in <u>Section</u> <u>6.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) On the date of this Agreement, on the Effective Date and on the applicable Delivery Date, each Registration Statement, the Prospectus, any prospectus wrapper, and any Issuer Free Writing Prospectus complied or will comply in all material respects, and such documents and any further amendments or supplements thereto will comply in all material respects, with any applicable laws or regulations of each jurisdiction in which the Prospectus, any prospectus wrapper or any Issuer Free Writing Prospectus, as amended or supplemented, if applicable, are distributed in connection with the Directed Share Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Prospectus will not, as of its date or as of the applicable Delivery Date, include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that no representation or warranty is made as to information contained in or omitted from the Prospectus in reliance upon and in conformity with written information furnished to the Company through the Representatives by or on behalf of any Underwriter specifically for inclusion therein, which information is specified in <u>Section</u> <u>6.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Time of Sale Information did not, as of the Applicable Time, include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that no representation or warranty is made as to information contained in or omitted from the Time of Sale Information in reliance upon and in conformity with written information furnished to the Company through the Representatives by or on behalf of any Underwriter specifically for inclusion therein, which information is specified in <u>Section</u> <u>6.10</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Each Issuer Free Writing Prospectus listed in <u>Schedule II(a)</u> hereto, when taken together with the Time of Sale Information, did not, as of the Applicable Time, include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that no representation or warranty is made as to information contained in or omitted from such Issuer Free Writing Prospectus listed in <u>Schedule II(a)</u> hereto in reliance upon and in conformity with written information furnished to the Company through the Representatives by or on behalf of any Underwriter specifically for inclusion therein, which information is specified in <u>Section</u> <u>6.10</u>. Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the completion of the Offering and sale of the Shares or until any earlier date that the Company notified or notifies the Representatives as described in the next sentence, did not, does not and will not include any information that conflicted, conflicts or will conflict with the information then contained in the Registration Statement in any material respect. If at any time following issuance of an Issuer Free Writing Prospectus, at a time when a prospectus relating to the Shares is (or but for the exemption of Rule 172 under the Act would be) required to be delivered under the Act by any Underwriter or dealer, there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted or would conflict with the information then contained in the Registration Statement in any material respect or as a result of which such Issuer Free Writing Prospectus, if republished immediately following such event or development, would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (i) the Company has promptly notified or will promptly notify the Representatives and (ii) the Company has promptly amended or supplemented or will promptly amend or supplement such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) No Written Testing-the-Waters Communication, as of the Applicable Time, when taken together with the Time of Sale Information, included an untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that no representation or warranty is made as to information contained in or omitted from such Written Testing-the-Waters Communication listed on <u>Schedule II(b)</u> hereto in reliance upon and in conformity with written information furnished to the Company through the Representatives by or on behalf of any Underwriter specifically for inclusion therein, which information is specified in <u>Section</u> <u>6.10</u>; and the Company has filed publicly on the Commission's EDGAR database at least fifteen (15) calendar days prior to any "road show" (as defined in Rule 433 under the Act), any confidentially submitted registration statement and amendments thereto relating to the offer and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Each Issuer Free Writing Prospectus conformed or will conform in all material respects to the requirements of the Act and the rules and regulations thereunder on the date of first use, and the Company has complied or will comply with all prospectus delivery and any filing requirements applicable to such Issuer Free Writing Prospectus pursuant to the Act and rules and regulations thereunder. The Company has not made any offer relating to the Shares that would

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constitute an Issuer Free Writing Prospectus without the prior written consent of each of the Representatives. The Company has retained in accordance with the Act and the rules and regulations thereunder all Issuer Free Writing Prospectuses that were not required to be filed pursuant to the Act and the rules and regulations thereunder. The Company has taken all actions necessary so that any "road show" (as defined in Rule 433 under the Act) in connection with the Offering will not be required to be filed pursuant to the Act and the rules and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Other than the Registration Statement, the Time of Sale Information, each Preliminary Prospectus and any Prospectus, the Company (including its agents and representatives, other than the Underwriters, as to which no representation or warranty is given) has not, directly or indirectly, distributed, prepared, used, authorized, approved or referred to any offering material in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) On each of (i) the date hereof, (ii) the Closing Date and (iii) any Additional Closing Date: (A) after giving effect to the Reorganization Transactions, the capitalization of the Company is as set forth in the Registration Statement, the Time of Sale Information and the Prospectus; (B) the outstanding shares of capital stock of the Company (including, for the avoidance of doubt, the Shares to be issued and sold to the Underwriters by the Company hereunder), after giving effect to the Reorganization Transactions, will have been duly authorized and will be, and, when the Shares have been delivered and paid for in accordance with this Agreement on each Closing Date, such Shares will have been, validly issued, fully paid, nonassessable and free of any preemptive or similar right that entitles or may entitle any person to acquire any Shares upon the issuance thereof by the Company; (C) except as set forth in the Registration Statement, the Time of Sale Information and the Prospectus, neither the Company nor OpCo is a party to or bound by any outstanding options, warrants, or similar rights to subscribe for, or contractual obligations to issue, sell, transfer or acquire, any shares of capital stock of the Company or equity interests of OpCo, respectively, or any securities or obligations of the Company or OpCo, respectively, convertible into, or exercisable or exchangeable for, any such shares of capital stock of the Company or equity interests of OpCo, as applicable; and (D) the Common Stock, Series B preferred stock, par value $0.0001 per share, and Series D preferred stock, par value $0.0001 per share, and the OpCo Interests conform in all material respects to the description thereof in the Registration Statement, the Time of Sale Information and the Prospectus (or any amendment or supplement thereto) and to the description of such Shares contained in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Each of the Company, OpCo and their Subsidiaries (as defined below) is (i) duly incorporated or organized and validly existing as a corporation, limited liability company or other organization and in good standing under the laws of the jurisdiction of its incorporation or organization with full corporate or organizational power and authority to own, lease and operate its properties and to conduct its business as presently conducted and as described in the Registration Statement, the Time of Sale Information and the Prospectus (and any amendment or supplement thereto) and (ii) duly registered and qualified to conduct its business and is in good standing in each jurisdiction or place where the nature of its properties or the conduct of its

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business requires such registration or qualification, except where the failure to so register or qualify has not had or would not reasonably be expected to have a material adverse effect on the financial position, business, properties, net worth, results of operations or prospects of the Company, OpCo and their Subsidiaries, taken as a whole (a "<u>Material Adverse Effect</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The issued equity interests of each of the Subsidiaries have been, or will be as of the Closing Date, duly authorized and validly issued, are, or will be as of the Closing Date, fully paid and nonassessable and are, or will be as of the Closing Date, owned, directly or indirectly through one or more of the other Subsidiaries, by the Company free and clear of any liens, encumbrances or defects, except as disclosed in the Registration Statement and the Time of Sale Information and, after giving effect to the Reorganization Transactions, OpCo; assuming no purchase of the Additional Shares, after giving effect to the Reorganization Transactions and the offering of the Firm Shares as contemplated herein and the use of proceeds therefrom, the Company will own [_____] OpCo Interests and will be the managing member of OpCo. The subsidiaries listed in Exhibit 21 to the Registration Statement are the only "significant subsidiaries" of the Company (the "<u>Subsidiaries</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) There are no legal, governmental or regulatory investigations, actions, demands, claims, charges, grievances, suits, arbitrations, inquiries, or other proceedings ("<u>Actions</u>") pending or, to the knowledge of the Company, threatened, against the Company, OpCo or their respective Subsidiaries or to which the Company, OpCo or their Subsidiaries or any of their respective properties are subject, that are required to be described in the Registration Statement or the Prospectus (or any amendment or supplement thereto) but are not described as required. Except as described in the Registration Statement, the Time of Sale Information and the Prospectus, there is no Action by or before any court, arbitrator or governmental or other regulatory or administrative agency or commission pending or, to the knowledge of the Company, threatened, against or involving the Company, OpCo or their respective Subsidiaries, which might, individually or in the aggregate, prevent or adversely affect the transactions contemplated by this Agreement or result in a Material Adverse Effect, nor to the Company's knowledge, is there any basis for any such Action. There is no such Action against any current or, to the knowledge of the Company, former director or officer of the Company, OpCo or any of their respective Subsidiaries with respect to which the Company, OpCo or any of their respective Subsidiaries has, or is reasonably likely to have, an indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) There are no Existing Instruments (as defined in <u>Section</u> <u>1.1(t)</u> hereof) to which the Company, OpCo or any of their Subsidiaries is a party or by which any of their respective properties may be bound, that are required to be described in the Registration Statement, the Time of Sale Information or the Prospectus (or any amendment or supplement thereto) or to be filed as an exhibit to the Registration Statement that are not fairly summarized or disclosed in all material respects, filed or incorporated by reference in the Registration Statement, the Time of Sale Information or the Prospectus as required by the Act. All such Existing Instruments have been duly and validly authorized, executed and delivered by the Company, OpCo or the applicable Subsidiary, constitute valid and binding agreements of the Company, OpCo or the applicable Subsidiary and are enforceable against the Company, OpCo or the applicable Subsidiary in accordance with the terms thereof, except as enforceability thereof may be limited by (i) the

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application of bankruptcy, reorganization, insolvency and other laws affecting creditors' rights generally and (ii) equitable principles being applied at the discretion of a court before which any proceeding may be brought, except as rights to indemnity and contribution hereunder may be limited by federal or state securities laws. Neither the Company, OpCo nor the applicable Subsidiary has received notice or been made aware that any other party is in breach of or default to the Company or OpCo under any of such Existing Instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Neither the Company, OpCo nor any of their respective Subsidiaries is (i) in violation of (A) its certificate of formation, operating agreement, certificate of incorporation, bylaws or other organizational documents, except as would not be reasonably expected to have a Material Adverse Effect, (B) any federal, state, local or foreign law, ordinance, administrative or governmental rule or regulation applicable to the Company, OpCo or any of their respective Subsidiaries, the violation of which would have a Material Adverse Effect or (C) any judgment, order or decree of any federal, state, local or foreign court or governmental or regulatory agency or body or arbitrator having jurisdiction over the Company, OpCo or any of their respective Subsidiaries, the violation of which would have a Material Adverse Effect, or (ii) in default in any material respect in the performance of any obligation, agreement or condition contained in any bond, debenture, note or any other evidence of indebtedness or any contract, agreement, indenture, lease, mortgage, deed of trust or other instrument (each, an "<u>Existing Instrument</u>") to which the Company, OpCo or any of their respective Subsidiaries is a party or by which any of its properties may be bound which default would have, individually or in the aggregate, a Material Adverse Effect; and there does not exist any state of facts that constitutes an event of default on the part of the Company, OpCo or any of their respective Subsidiaries as defined in such documents or that, with notice or lapse of time or both, would constitute such an event of default, except, in each case, for events of default that would not be reasonably expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company has all requisite corporate power to execute, deliver and perform its obligations under this Agreement. This Agreement has been duly and validly authorized, executed and delivered by the Company and constitutes a valid and legally binding agreement of the Company, enforceable against the Company in accordance with its terms, except to the extent enforceability may be limited by (i) the application of bankruptcy, reorganization, insolvency and other laws affecting creditors' rights generally and (ii) equitable principles being applied at the discretion of a court before which any proceeding may be brought, except as rights to indemnity and contribution hereunder may be limited by federal or state securities laws (collectively, the "<u>Enforceability Exceptions</u>"). The Amended and Restated Limited Partnership Agreement of OpCo (the "<u>OpCo LP Agreement</u>") has been duly authorized and, when executed and delivered, will constitute a valid and binding agreement of the members thereof, enforceable against such parties in accordance with its terms, subject to the Enforceability Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Reorganization Transactions have been duly authorized by the Company, OpCo and their Subsidiaries, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The Company, OpCo and their Subsidiaries (i) have taken commercially reasonable steps to protect the information technology systems and data used in connection with the operation of the Company, OpCo and/or its Subsidiaries, (ii) used reasonable efforts to establish, and have

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established, commercially reasonable disaster recovery and security plans, procedures and facilities for the business, (iii) have information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications and databases that (a) are adequate for, and operate and perform, in all material respects as required in connection with the operation of the business of the Company, OpCo and its Subsidiaries as currently conducted, and (b) to the knowledge of the Company and OpCo, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants, (iv) have complied with all privacy and data protection laws and regulations applicable to the Company's, OpCo's and their Subsidiaries' collection, use, processing, storage, transfer, disposal or disclosure of personal information, (v) have and are materially in compliance with applicable privacy policies regarding the collection, use, processing, storage, transfer and disposal of personal information in connection with the operation of their businesses and (vi) have established and implemented policies, programs and procedures, including administrative, technical and physical safeguards, designed to protect the confidentiality, integrity and security of personal information in their possession, custody or control, or otherwise held or processed on their behalf, except in the case of each of item (iv), (v) and (vi) hereabove where the failure to do so would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) (i)(A) To the knowledge of the Company, there has been no security breach or incident, unauthorized access or disclosure, or other compromise of the Company's, OpCo's or their Subsidiaries' information technology and computer systems, networks, hardware, software, confidential or proprietary data and databases (including such data and information of their respective customers, employees, suppliers, vendors and any third-party data maintained, processed or stored by the Company, OpCo and their Subsidiaries, and any such data processed or stored by third parties on behalf of the Company, OpCo and their Subsidiaries), equipment or technology (collectively, "<u>IT Systems and Data</u>"), except, in each case, as would not reasonably be expected to have a Material Adverse Effect and (B) neither the Company, OpCo nor their Subsidiaries have been notified of, and have no knowledge of any event or condition that would reasonably be expected to result in, any security breach or incident, unauthorized access or disclosure or other compromise to their IT Systems and Data; (ii) the Company, OpCo and their Subsidiaries, taken as a whole, have implemented commercially reasonable controls, policies, procedures and technological safeguards designed to maintain and protect the integrity, continuous operation, redundancy and security of their IT Systems and Data reasonably consistent with industry standards and practices, or as required by applicable regulatory standards. The Company, OpCo and their Subsidiaries are presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) None of the offering, issuance, sale or delivery of the Shares by the Company, the execution, delivery or performance of this Agreement by the Company, nor the consummation by the Company of the transactions contemplated hereby (including in particular the application of the proceeds of the offering and sale as described under "Use of Proceeds" in the Registration Statement, the Time of Sale Information and the Prospectus) (i) require the approval of any stockholders, members, partners or other securityholders or any Permit (as defined in <u>Section</u> 

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 <u>1.1(ss)</u> hereof) not already obtained (except such as may be required for the registration of the Shares under the Act, the listing of the Shares for trading on the New York Stock Exchange ("<u>NYSE</u>"), the registration of the Common Stock under the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder (collectively, the "<u>Exchange Act</u>") and compliance with the securities or applicable Blue Sky laws of various jurisdictions, all of which will be, or have been, effected in accordance with this Agreement and except for clearance by Financial Industry Regulatory Authority, Inc. ("<u>FINRA</u>") of the underwriting terms of the Offering contemplated hereby as required under FINRA's Rules of Fair Practice), (ii) conflict with, or constitute a breach of, or a default under, the Company's amended and restated certificate of incorporation, bylaws or other organizational documents or any Existing Instrument to which the Company or any of its Subsidiaries is a party or by which any of its properties may be bound, (iii) violate any existing statute, law, regulation, ruling, filing, judgment, injunction, order or decree applicable to the Company or any of its Subsidiaries or any of their respective properties or (iv) result in a breach of, or default or Debt Repayment Triggering Event under, or result in the creation or imposition of any lien, encumbrance or defect upon any property or assets of the Company or any of its Subsidiaries pursuant to, or requires the consent of any other party to, any Existing Instrument to which the Company or any of its Subsidiaries is a party or by which any of its properties may be bound, except for such conflicts, breaches, defaults, liens, encumbrances or defects that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. For the purpose of this <u>Section</u> <u>1.1(y)</u>, a "<u>Debt Repayment Triggering Event</u>" means any event or condition that gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder's behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Except as described in the Registration Statement, the Time of Sale Information and the Prospectus, no holder of securities of the Company has rights to the registration of any securities of the Company as a result of or in connection with the filing of the Registration Statement or the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) Neither the Company nor any of its Subsidiaries has outstanding any profits interests, options, warrants, preemptive rights, rights of first refusal or other rights to subscribe for or to purchase, nor any restriction upon the voting or transfer of, any shares of its capital stock, equity interests or any such other interests, in each case pursuant to any agreement or other instrument to which any of the Company or its Subsidiaries is a party or by which any of the Company or its Subsidiaries may be bound. Except for such rights as described in the Registration Statement, the Time of Sale Information or the Prospectus, no person has rights to the registration of any securities of the Company as a result of or in connection with the filing of the Registration Statement or the consummation of the Reorganization Transactions and the transactions contemplated hereby that have not been satisfied or heretofore waived in writing; provided that, any person to whom the Company has granted registration rights is not entitled to, or has agreed not to, exercise its rights to sell any securities of the Company pursuant to such rights until after the expiration of the Lock-Up Period (as defined in <u>Section</u> <u>4.1(s)</u>).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) (i) Baker Tilly US, LLP ("<u>Baker Tilly</u>"), who have certified financial statements of the Company (including the related notes thereto and supporting schedules) filed as part of the Registration Statement, the Time of Sale Information and the Prospectus (or any amendment or supplement thereto), are "independent public accountants" (within the meaning of the rules and regulations of the Commission and the Public Company Accounting Oversight Board) with respect to the Company and its Subsidiaries and as required by the Act and the Exchange Act, (ii) Whitley Penn, LLP ("<u>Whitley Penn</u>"), who have certified financial statements of the Company (including the related notes thereto and supporting schedules) filed as part of the Registration Statement, the Time of Sale Information and the Prospectus (or any amendment or supplement thereto), are "independent public accountants" (within the meaning of the rules and regulations of the Commission and the Public Company Accounting Oversight Board) with respect to the Company and its Subsidiaries and as required by the Act and the Exchange Act, (iii) Ernst & Young LLP ("<u>EY</u>"), who have certified financial statements of PHX Minerals Inc. (including the related notes thereto and supporting schedules) filed as part of the Registration Statement, the Time of Sale Information and the Prospectus (or any amendment or supplement thereto), are "independent public accountants" (within the meaning of the rules and regulations of the Commission and the Public Company Accounting Oversight Board) with respect to PHX Minerals Inc. and as required by the Act and the Exchange Act, and (iv) Plante Moran, PLLC ("<u>Plante Moran</u>," and together, with Baker Tilly, Whitley Penn and EY, the "<u>Accountants</u>"), who have certified financial statements of Three Rivers Royalty, LLC (including the related notes thereto and supporting schedules) filed as part of the Registration Statement, the Time of Sale Information and the Prospectus (or any amendment or supplement thereto), are "independent public accountants" (within the meaning of the rules and regulations of the Commission and the Public Company Accounting Oversight Board) with respect to Three Rivers Royalty, LLC and as required by the Act and the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) (i) The historical financial statements of the Company, together with related schedules and notes, included in the Registration Statement, the Time of Sale Information and the Prospectus (and any amendment or supplement thereto), comply in all material respects with the applicable requirements of the Act and present fairly in all material respects the financial condition, results of operations, cash flows and changes in financial position of the Company at the respective dates or for the respective periods to which they apply; such statements and related schedules and notes have been prepared in accordance with generally accepted accounting principles ("<u>GAAP</u>") consistently applied throughout the periods involved, except as disclosed therein; (ii) the financial statements of PHX Minerals, Inc., together with related schedules and notes, included in the Registration Statement, the Time of Sale Information and the Prospectus (and any amendment or supplement thereto), to the knowledge of the Company, present fairly in all material respects the financial condition, results of operations, cash flows and changes in financial position of PHX Minerals, Inc. at the respective dates or for the respective periods to which they apply, and, to the knowledge of the Company, such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby; (iii) the financial statements of Three Rivers Royalty, LLC, together with related schedules and notes, included in the Registration Statement, the Time of Sale Information and the Prospectus (and any amendment or supplement thereto), to the knowledge of the Company, present fairly in all material respects the financial condition, results of operations, cash flows and changes in financial position of Three

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Rivers Royalty, LLC at the respective dates or for the respective periods to which they apply, and, to the knowledge of the Company, such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby; (iv) the financial and statistical information and data set forth in the Registration Statement, the Time of Sale Information and the Prospectus (and any amendment or supplement thereto) is accurately presented and prepared on a basis consistent with such financial statements and the books and records of the Company; and (v) the pro forma condensed consolidated combined financial statements together with related notes thereto included in the Registration Statement, the Time of Sale Information and the Prospectus (and any amendment or supplement thereto) present fairly in all material respects the information contained therein, have been prepared in all material respects in accordance with the Commission's rules and regulations with respect to pro forma financial statements and have been properly presented on the bases described therein. Additionally, the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to therein. No other financial statements or schedules are required to be included in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Except as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus (or any amendment or supplement thereto), (i) neither the Company, OpCo nor any of their respective Subsidiaries has incurred any material liabilities or obligations, indirect, direct or contingent, or entered into any transaction that is not in the ordinary course of business, (ii) neither the Company, OpCo nor any of their respective Subsidiaries has sustained any material loss or interference with its business or properties from fire, explosion, flood, windstorm, accident or other calamity, whether or not covered by insurance, (iii) neither the Company, OpCo nor any of their respective Subsidiaries has paid or declared any dividends or other distributions with respect to its capital stock and neither the Company nor OpCo is in default under the terms of any class of Common Stock or any outstanding debt obligations, (iv) there has not been any change in the authorized or outstanding Common Stock (other than as a result of the award, exercise, vesting or settlement (including any "net" or "cashless" exercises or settlements) of stock options, restricted stock, restricted stock units, or other compensatory equity-based awards in the ordinary course of business pursuant to any Stock Plans (as defined below) described in the Registration Statement, the Time of Sale Information and the Prospectus) or any material change in the indebtedness of the Company or OpCo (other than in the ordinary course of business) and (v) there has not been any material adverse change, or any development involving or that may reasonably be expected to result in a material adverse change, in the condition (financial or otherwise), business, properties, net worth, result of operations or prospects of the Company or OpCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) All offers and sales of the Common Stock and Company's other debt or other securities prior to the date hereof, including in connection with the Reorganization Transactions, were made in compliance with the requirements of, or were the subject of an available exemption from, the Act and all other applicable state and federal laws or regulations, or any actions under the Act or any state or federal laws or regulations in respect of any such offers or sales are effectively barred by effective waivers or statutes of limitations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) The Shares have been approved for listing on NYSE under the symbol "WHK", subject to official notice of issuance of the Shares being sold by the Company, and upon

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consummation of the Offering contemplated hereby the Company will be in compliance with the designation and maintenance criteria applicable to NYSE issuers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) Other than excepted activity pursuant to Regulation M under the Exchange Act, the Company has not taken, directly or indirectly, any action designed to, or that might reasonably be expected to cause or result in or constitute, under the Act or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) The Company, OpCo and each of their respective Subsidiaries have paid all U.S. federal, state, local, or non-U.S. taxes other than any taxes which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP and have filed all U.S. federal, state, local and non-U.S. tax returns required to be filed (other than taxes and tax returns, as to which the failure to pay or file, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect), which such returns are complete and correct in all material respects. Except as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus, or as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, all deficiencies asserted as a result of any federal, state, local or foreign tax audits have been paid or finally settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as set forth in the Registration Statement, the Time of Sale Information and the Prospectus, (i) there are no transactions between the Company, OpCo or any of their respective Subsidiaries, on the one hand, and any of their respective "affiliates" (as defined in Rule 405 under the Act) ("<u>Affiliates</u>"), officers, directors or securityholders, on the other hand, that are required by the Act to be disclosed in the Registration Statement, the Time of Sale Information and the Prospectus and (ii) no relationship, direct or indirect, exists between the Company, OpCo or any of their respective Subsidiaries, on the one hand, and their respective Affiliates, directors, officers, securityholders, customers or suppliers, on the other hand, that is required by the Act to be disclosed in the Registration Statement, the Time of Sale Information and the Prospectus that is not so disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) On each of (i) the Closing Date, (ii) any Additional Closing Date and (iii) after giving effect to the offering and sale of the Shares and the application of proceeds therefrom as described under "Use of Proceeds" in the Registration Statement, the Time of Sale Information and the Prospectus, neither the Company, OpCo nor any of their respective Subsidiaries qualifies as an "investment company" or an "affiliated person" of, or "promoter" or "principal underwriter" for, an "investment company" within the meaning of the U.S. Investment Company Act of 1940, as amended (together with the rules and regulations of the Commission thereunder, the "<u>Investment Company Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) Neither the issuance, sale and delivery of Shares nor the application of the proceeds thereof by the Company, in each case, as described in the Registration Statement, the Time of Sale Information and the Prospectus, violates Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) The statements set forth in each of the Registration Statement, the Time of Sale Information and the Prospectus under the captions "Certain Relationships and Related Party Transactions", "Shares Eligible for Future Sale", "Description of Capital Stock", "Description of Material Indebtedness," "Material U.S. Federal Income Tax Considerations for Non-U.S. Holders of Common Stock", "Business—Regulation of Environmental and Occupational Safety and Health Matters" and "Business—Legal Proceedings", insofar as they purport to summarize the provisions of the laws, regulations, agreements, documents or legal or governmental proceedings referred to therein, are accurate summaries of such laws, regulations, agreements, documents or proceedings in all material respects. The Common Stock (including the Shares) conforms in all material respects to the description thereof contained in the Registration Statement, the Time of Sale Information and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company or OpCo, from making any other distribution on such Subsidiary's capital stock or similar ownership interest, from repaying to the Company or OpCo any loans or advances to such Subsidiary from the Company or OpCo or from transferring any of such Subsidiary's properties or assets to the Company or OpCo or any other Subsidiary, except as described in the Registration Statement, the Time of Sale Information and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) Neither the Company, OpCo nor any of their respective Subsidiaries is a party to any contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against any of them or any Underwriter for a brokerage commission, finder's fee or like payment in connection with the offering and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) Except as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus, each of the Company and OpCo (i) does not have any material lending or other relationship with any banking or lending affiliate of the Representatives and (ii) does not intend to use any of the proceeds from the sale of the Shares to repay any outstanding debt owed to any affiliate of any Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) The statistical and market-related data included in the Registration Statement, the Time of Sale Information and the Prospectus are based on or derived from sources that the Company believes to be accurate and reliable in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) No "forward-looking statement" (within the meaning of Section 27A of the Act and Section 21E of the Exchange Act) included in the Registration Statement, the Time of Sale Information or the Prospectus has been made or reaffirmed without a reasonable basis in the judgment of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) Each of OpCo and its Subsidiaries has good and valid title to all property (real and personal) described in the Registration Statement, the Time of Sale Information and the Prospectus as being owned by it, free and clear of any liens, encumbrances or defects, except (i) as expressly described in the Registration Statement, the Time of Sale Information and the Prospectus or (ii) as

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would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect to the use of the property or the conduct of the business of the Company or OpCo. Any other real property held under lease by the Company, OpCo and their respective Subsidiaries is held by it under valid, subsisting and enforceable leases with only such exceptions as, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect to the use of the property or the conduct of the business of the Company or OpCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) Each of (i) Cawley, Gillespie & Associates, Inc. ("<u>CGA</u>"), a reserve engineer that prepared a reserve report related to the estimates of future reserves and projected net revenues for certain oil and gas interests owned by WhiteHawk Energy, LLC as of December 31, 2025 (the "<u>2025 Reserve Report</u>"), (ii) Schaper Energy Consulting LLC ("<u>Schaper</u>"), a reserve engineer that prepared a reserve report related to the estimates of future reserves and projected net revenues for certain oil and gas interests owned by WhiteHawk Energy, LLC as of December 31, 2024 (the "<u>2024 Reserve Report</u>"), (iii) CGA, a reserve engineer that prepared a reserve report related to the estimates of future reserves and projected net revenues for certain oil and gas interests owned by PHX Minerals, Inc. as of December 31, 2024 (the "<u>PHX Reserve Report</u>"), and (iv) Ryder Scott Company, L.P. ("<u>RSC</u>," and together, with CGA and Schaper, the "<u>Reserve Engineers</u>"), a reserve engineer that prepared a reserve report related to the estimates of future reserves and projected net revenues for certain oil and gas interests owned by Three Rivers Royalty, LLC as of December 31, 2024 (the "<u>TRR Reserve Report</u>," and together with the 2025 Reserve Report, the 2024 Reserve Report and the PHX Reserve Report, the "<u>Reserve Reports</u>"), was, as of the date of preparation of the Reserve Reports, and is, as of the date hereof, an independent petroleum engineer with respect to WhiteHawk Energy, LLC, PHX Minerals, Inc., and Three Rivers Royalty, LLC, as applicable. The information provided in the Reserve Reports was, to the knowledge of the Company, true and correct in all material respects as of the dates they were made. Other than intervening market commodity price fluctuations, fluctuations in demand for such products, adverse weather conditions, the timing of third party operations and other facts, in each case in the ordinary course of business, and except as set forth in the Time of Sale Information and the Prospectus, neither the Company nor OpCo is aware of any facts or circumstances that could reasonably be expected to result in a Material Adverse Effect in the aggregate estimated net proved reserves as set forth in the Time of Sale Information and the Prospectus; and estimates of such reserves as set forth in the Time of Sale Information and the Prospectus comply in all material respects with the applicable requirements of Regulation S-X and Subpart 1200 of Regulation S-K under the Act and Commission Guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) Except as otherwise disclosed in the Time of Sale Information and the Prospectus, each of the Company, OpCo and their Subsidiaries has obtained and maintained any permit, license, franchise, approval, consent, authorization or order of, or registration or filing with, any relevant federal, state, local or foreign court or governmental, regulatory or administrative authority, agency or body (each, a "<u>Permit</u>"), and have made all declarations, amendments, supplements and filings with the relevant federal, state, local or foreign governmental, regulatory or administrative authority, agency or body, as are necessary to own its properties and to conduct its business in the manner described in the Registration Statement, the Time of Sale Information and the Prospectus, subject to such qualifications as may be set forth in the Time of Sale Information and the Prospectus, except where the failure to have obtained or maintained any such

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Permit has not had and would not reasonably be expected to have a Material Adverse Effect; each of the Company, OpCo and their Subsidiaries is, and has operated and is operating its business, in material compliance with and not in material violation of all of its obligations with respect to each such Permit; all such Permits are valid and in full force and effect and no event has occurred that allows, or after notice or lapse of time would reasonably be expected to allow, revocation, suspension or termination of any such Permit or result in any other material impairment of the rights of any such Permit, subject in each case to such qualification as may be set forth in the Registration Statement, the Time of Sale Information and the Prospectus; neither the Company, OpCo nor their Subsidiaries have received notice of any revocation, suspension or material adverse modification of any such Permit or have any reason to reasonably expect that any such Permit will not be renewed in the ordinary course; and, except as described in the Registration Statement, the Time of Sale Information and the Prospectus, such Permits contain no restrictions that are materially burdensome to the Company, OpCo or any of their Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) The consolidated financial statements of the Company, OpCo and their Subsidiaries, together with the related schedules and notes thereto, set forth or incorporated by reference in the Time of Sale Information and the Prospectus present fairly in all material respects (i) the financial condition of the Company, OpCo and their consolidated Subsidiaries as of the dates therein indicated and (ii) the consolidated results of operations, stockholders' equity and changes in cash flows of the Company, OpCo and their consolidated Subsidiaries for the periods therein specified; and such financial statements and related schedules and notes thereto have been prepared in conformity with GAAP, consistently applied throughout the periods involved (except as otherwise stated therein and subject, in the case of unaudited financial statements, to the absence of footnotes and normal year-end adjustments). The summary financial information included in the Registration Statement, the Time of Sale Information and the Prospectus presents fairly, in all material respects, the information shown therein and has been compiled on a basis consistent with that of the audited financial statements included therein. There are no other financial statements (historical or pro forma) that are required to be included or incorporated by reference in the Time of Sale Information and the Prospectus; and neither the Company nor OpCo has any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not disclosed in the Time of Sale Information and the Prospectus; and all disclosures contained in the Time of Sale Information and the Prospectus regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10(e) of Regulation S-K under the Act, to the extent applicable, and present fairly the information shown therein and the Company's and OpCo's basis for using such measures. The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement fairly presents the information called for in all material respects and has been prepared in accordance with the Commission's rules and guidelines applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) The Company, OpCo and their Subsidiaries maintain a system of internal accounting controls reasonably designed to provide reasonable assurances that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with

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management's general or specific authorizations and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences; except as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus, and except for any material weakness in internal control over financial reporting described in the Registration Statement, the Time of Sale Information and the Prospectus, the Company is not aware of any material weakness in its internal control over financial reporting (it being understood that as an "emerging growth company" within the meaning of the Securities Act, (x) the Company is not required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act and (y) this representation shall not be deemed to require compliance with any rules or regulations relating to internal control over financial reporting that are not applicable to the Company as of the date hereof by virtue of its status as an emerging growth company). Such internal controls, upon consummation of the Offering, will be overseen by the audit committee of the board of directors of the Company in accordance with the rules of the NYSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) Each of the Company, OpCo and their Subsidiaries has established and maintains and evaluates "disclosure controls and procedures" (as such term is defined in Rule 13a-15(e) under the Exchange Act) complying with the Exchange Act; such disclosure controls and procedures are designed to ensure that material information relating to the Company, OpCo and their Subsidiaries is made known to the Company's principal executive officer and principal financial officer by others within those entities, and such disclosure controls and procedures are effective to perform the functions for which they were established, except as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus (including any material weakness in internal control over financial reporting described therein) (it being understood that as an "emerging growth company" within the meaning of the Securities Act, this representation shall not be deemed to require compliance with any rules or regulations relating to disclosure controls and procedures or internal control over financial reporting that are not applicable to the Company as of the date hereof by virtue of its status as an emerging growth company); the principal executive officer and principal financial officer of the Company have made all certifications required by the Sarbanes-Oxley Act of 2002 (together with any rules and regulations promulgated by the Commission thereunder, the "<u>Sarbanes-Oxley Act</u>") applicable to an emerging growth company as of the date hereof; the Company is, and the Company has taken all necessary actions to ensure that its directors and officers in their capacities as such are, each in compliance in all material respects with all applicable effective provisions of the Sarbanes-Oxley Act applicable to an emerging growth company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) The Company and, to the knowledge of the Company, the Company's directors or officers, in their capacities as such, are each in compliance in all material respects with Section 402 of the Sarbanes-Oxley Act, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) The Company has not, prior to the date hereof, made any offer or sale of securities which could be "integrated" for purposes of the Act with the offer or sale of the Shares pursuant to the Registration Statement and the Prospectus; and except as disclosed in the Time of Sale Information and the Prospectus, the Company has not sold or issued any security during the one hundred eighty (180)-day period preceding the date of the Prospectus, including but not limited to

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any sales pursuant to Rule 144A or Regulation D or S under the Act, other than as described in the Time of Sale Information and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) Neither the Company nor any of its Subsidiaries nor, to the knowledge (as defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended (together with the rules and regulations of the Commission thereunder, the "<u>Foreign Corrupt Practices Act</u>")) of the Company, any director, officer, agent, employee or Affiliate of the Company or any of its Subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act or any other similar or equivalent anti-corruption and/or anti-bribery law of any applicable jurisdiction including, without limitation, (i) using any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) making any direct or indirect unlawful payment to any "foreign official" (as such term is defined in the Foreign Corrupt Practices Act), or any foreign or domestic political party, or any candidate, official or employee thereof; (iii) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment; the Company, its Subsidiaries and, to the knowledge of the Company, their respective Affiliates have conducted their businesses in compliance, and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance, in all material respects with the Foreign Corrupt Practices Act and any other similar or equivalent anti-corruption and/or anti-bribery law of any applicable jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) Neither the Company nor any of its Subsidiaries nor any director, officer, employee nor, to the knowledge of the Company, any Affiliate of the Company or any of its Subsidiaries nor any agent or other person acting on behalf of the Company or any of its Subsidiaries, is an individual or entity, or is owned or controlled by an individual or entity, that is (i) currently the subject or target of any sanctions administered or enforced by the U.S. government (including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control ("<u>OFAC</u>") or the U.S. Department of State and including, without limitation, the designation as a "specially designated national" or "blocked person"), the United Nations Security Council, the European Union, His Majesty's Treasury, or other relevant sanctions authority (collectively, the "<u>OFAC Sanctions</u>"), (ii) nor is located, organized or resident in a country or territory that is the subject or the target of OFAC Sanctions, including, without limitation, the Crimea, Kherson, Zaporizhzhia, Donetsk, and Luhansk regions of Ukraine, Cuba, Iran, North Korea and Syria (each, an "<u>OFAC Country</u>") (each of (i) and (ii), an "<u>OFAC Company</u>"); and the Company will not directly or indirectly use the proceeds of the offering and sale of the Shares, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other OFAC Company (a) to fund or facilitate any activities of or business with any OFAC Company that, at the time of such funding or facilitation, is the subject or the target of OFAC Sanctions, (b) to fund or facilitate any activities or business in any OFAC Country or (c) in any other manner that will result in a violation by any person that is a party to this Agreement (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of OFAC Sanctions. The Company and its Subsidiaries have not engaged in and are not now engaged in any dealings or transactions with any OFAC Company that at the time of the dealing or transaction is or was the subject or the target of OFAC Sanctions or with any OFAC Country. There are not now and have not been any proceedings, investigations or voluntary or involuntary disclosures by or

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before any governmental authority involving the Company or any of its Subsidiaries, or any of their respective directors, officers, agents, employees or Affiliates, relating to OFAC Sanctions, nor is any such proceeding, investigation or disclosure pending or, to the knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) The operations of the Company, OpCo and its Subsidiaries are and have been conducted in compliance in all material respects with applicable financial recordkeeping and reporting requirements of (a) the U.S. Currency and Foreign Transactions Reporting Act of 1970, as amended, (b) the U.S. Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as amended, (c) the applicable money laundering statutes of all jurisdictions, (d) the rules and regulations under items (a), (b) and (c) and (e) any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (together, the "<u>AML Laws</u>"); and no action, suit, proceeding or, to the Company's knowledge after due inquiry, investigation, by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to any AML Law is pending or, to the knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) No labor problem or dispute with the employees, service providers, contractors or suppliers of the Company, OpCo or any of their respective Subsidiaries exists, or has occurred in the past three (3) years or, to the Company's knowledge, is threatened or imminent, except for matters which would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. The Company is not aware of any key employee or individual service provider or significant group of employees of the Company, OpCo, or any of their respective Subsidiaries plans to terminate their employment or engagement with the Company, OpCo, or any of their respective Subsidiaries, in each case other than as would not materially and adversely affect the Company, OpCo, or any of their respective Subsidiaries. Neither the Company, OpCo nor any of their respective Subsidiaries is or has been a party or subject to any collective bargaining agreement, collective agreement, letter of intent, memorandum of understanding, or other contract or obligation with or to any labor union, works council, trade union, or similar employee representative. Except for matters which would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) there is (A) no unfair labor practice charge or complaint pending or, to the Company's knowledge, threatened against the Company, OpCo or any of their respective Subsidiaries before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under collective bargaining agreements is pending or to the Company's knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Company's knowledge, threatened against the Company, OpCo or any of their respective Subsidiaries and (C) no union representation dispute currently existing concerning the employees of the Company, OpCo or any of their respective Subsidiaries and (ii) to the Company's knowledge, (A) no union organizing activities are currently taking place concerning the employees or service providers of the Company, OpCo or any of their respective Subsidiaries and (B) there has been no violation by the Company, OpCo or any of their respective Subsidiaries of any federal, state, local, foreign or any other law relating to labor or employment, including any such law regarding discrimination in the hiring, promotion or pay of employees, any applicable laws regarding wages and hours, overtime pay, classification of employees and contractors, employee leave, anti-discrimination, anti-retaliation, anti-harassment, employee notices, expense

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reimbursement, recordkeeping, employee tax withholding and reporting, immigration recordkeeping, or occupational health and safety, or any provision of U.S. Employee Retirement Income Security Act of 1974, as amended (together with the rules and regulations promulgated thereunder, "<u>ERISA</u>") concerning the employees or service providers of the Company, OpCo or any of their Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) Except as otherwise disclosed in the Time of Sale Information and the Prospectus, the Company, OpCo and their Subsidiaries are, and for the past five (5) years have been, (i) in compliance with any and all applicable Environmental Laws (as defined hereinafter), (ii) have received and maintain, and to the extent applicable, filed timely applications to renew, all Permits required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such Permit, except where such noncompliance with Environmental Laws, failure to receive, maintain or renew a required Permit or failure to comply with the terms and conditions of such Permit would not, individually or in the aggregate, have a Material Adverse Effect. Except as set forth in the Registration Statement, the Time of Sale Information and the Prospectus, there are no actions, suits, investigations or proceedings that are pending or, to the knowledge of the Company, threatened against the Company, OpCo or any of their Subsidiaries or their properties or facilities under Environmental Laws, other than such actions, suits, investigations or proceedings for which it is reasonably believed that no monetary sanctions of $300,000 or more will be imposed. Neither the Company, OpCo nor any of their Subsidiaries has been named as a "potentially responsible party" under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended. Neither the Company, OpCo nor any of their Subsidiaries owns, leases or operates any property that appears on any list of hazardous sites compiled by any governmental authority or is contaminated with any Hazardous Materials (as defined hereinafter), is liable for any off-site waste disposal or Hazardous Material contamination pursuant to any Environmental Laws, or is subject to any claim pursuant to any Environmental Laws, which contamination, liability or claim would, individually or in the aggregate, result in a Material Adverse Effect. There are no costs or liabilities associated with Environmental Laws or Hazardous Materials (including, without limitation, any capital or operating expenditures required for clean-up of properties currently or formerly owned, leased, or operated by the Company, OpCo, or any of their Subsidiaries), which would reasonably be expected to, individually or in the aggregate, result in a Material Adverse Effect. For the purpose of this <u>Section</u> <u>1.1(eee)</u>, "<u>Environmental Laws</u>" means any and all federal, state, local and foreign laws, regulations, ordinances, rules, orders, judgments, decrees, Permits or other legal requirements of any governmental or regulatory authority relating to pollution, the protection of the environment or natural resources, human health and safety (to the extent relating to exposure to Hazardous Materials), or to regulation of the use, generation, handling, storage, manufacturing, transportation, treatment, discharge, disposal or release of, or exposure to, hazardous or toxic substances or wastes, chemicals, pollutants or contaminants ("<u>Hazardous Materials</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) Each of the Company, OpCo and their Subsidiaries owns or has, or will own or have as of the Closing Date or will be able to acquire on reasonable terms promptly following the Closing Date, full right, title and interest in and to, or valid licenses to use, each Intellectual Property Right necessary for the Company, OpCo and their Subsidiaries to conduct any material part of its business as currently conducted, and none of the Company, OpCo or their Subsidiaries

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has created any lien, encumbrance or defect on, or granted any right or license with respect to, any such Intellectual Property Right except where the failure to own or obtain a license or right to use any such Intellectual Property Right has not and would not reasonably be expected to have a Material Adverse Effect; there is no claim pending against the Company, OpCo or their Subsidiaries with respect to any Intellectual Property Right, except as would not reasonably be expected to have a Material Adverse Effect, and the Company, OpCo and their Subsidiaries have not, to their knowledge, received notice or otherwise become aware that any Intellectual Property Right that it uses or has used in the conduct of its business infringes upon, misappropriates, or conflicts with the rights of any third party. Neither the Company, OpCo nor any of their Subsidiaries has become aware that any Intellectual Property Right that it uses or has used in the conduct of its business is infringed upon, misappropriated or violated by, any third party in a manner that would reasonably be expected to have a Material Adverse Effect. For the purpose of this <u>Section</u> <u>1.1(ddd)</u>, "<u>Intellectual Property Right</u>" means any (a) trade name, trademark, service mark and registration thereof, (b) patent and applications thereof, (c) copyright and copyrightable works, (d) domain name and other source indicator, (e) trade secret, technology, know-how, proprietary or confidential information and (f) other intellectual property and related proprietary rights, interests and protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) Except as would not reasonably be expected to have a Material Adverse Effect or otherwise disclosed in the Time of Sale Information and the Prospectus, the Company, OpCo and each of their Subsidiaries are insured by insurers with appropriately rated claims paying abilities against such losses and risks as is reasonably adequate for the conduct of the businesses in which it is engaged and for the value of its properties and in such amounts as are reasonably prudent and customary for companies engaged in similar businesses in similar industries; all insurance policies and fidelity or surety bonds insuring the Company, OpCo and their Subsidiaries or their respective businesses, assets, employees, officers and directors are in full force and effect; the Company, OpCo and their Subsidiaries are in compliance with the terms of such policies in all material respects; and neither the Company, OpCo nor any of their Subsidiaries has been refused any material insurance coverage sought or applied for. There are no material claims by the Company, OpCo or any of their Subsidiaries under any such policy as to which any insurer is denying liability or defending under a reservation of rights clause; and neither the Company, OpCo nor any of their Subsidiaries has reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to grants of stock options ("<u>Stock Options</u>"), if any, (i) each Stock Option intended to qualify as an "incentive stock option" under Section 422 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (together, the "<u>Code</u>"), so qualifies, (ii) each grant of a Stock Option was duly authorized no later than the date on which the grant of such Stock Option was by its terms to be effective by all necessary corporate action, including, as applicable, approval by the board of directors of the Company or the relevant Subsidiary(ies) (or a duly constituted and authorized committee thereof) and any required

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stockholder approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any), to the Company's knowledge, was duly executed and delivered by each party thereto, (iii) each such grant was made in all material respects in accordance with (x) the terms of any stock- or equity-based compensation plan or other employee compensation plan or arrangement established or maintained by the Company or its Subsidiaries existing on the date hereof (together, the "<u>Stock Plans</u>"), (y) the Exchange Act and (z) the rules of NYSE and any other exchange on which the Company's securities are traded, and (iv) each such grant was properly accounted for in accordance with GAAP in the financial statements (including the related notes) of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj) Each "employee benefit plan" (as defined under Section 3(3) of ERISA) established or maintained by the Company, OpCo, their Subsidiaries or their ERISA Affiliates existing on the date hereof (each, an "<u>Employee Plan</u>") is, and has been maintained and administered, in compliance in all material respects with ERISA, the Code and all other applicable state and federal laws and regulations except as would not reasonably be expected to have a Material Adverse Effect. No "reportable event" (as defined in Section 4043(c) of ERISA) has occurred or is reasonably expected to occur with respect to any Employee Plans except as would not reasonably be expected to have a Material Adverse Effect. No failure to satisfy the minimum funding standard (within the meaning of Section 302 of ERISA or Section 412 and 430 of the Code), whether or not waived, has occurred or is reasonably expected to occur, except as would not reasonably be expected to have a Material Adverse Effect. No Employee Plan is, or is reasonably expected to be, in "at risk status" (as defined under Section 303(i) of ERISA). The fair market value of the assets under each Employee Plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value of all benefits accrued under such Employee Plan (determined based on those assumptions used to fund such Employee Plan). Neither the Company, OpCo, their Subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to incur any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any Employee Plans (including any "multiemployer plan", as defined in ERISA) or (ii) Sections 412, 4971 , 4975 or 4980B of the Code, except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. Each Employee Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service (the "<u>IRS</u>") or is entitled to rely on a favorable opinion issued by the IRS, and nothing has occurred, whether by action or failure to act, that would reasonably be expected to cause the loss of such qualification. No prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Employee Plan excluding transactions to which a statutory or administrative prohibited transaction exemption applies, except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. None of the following events has occurred or is reasonably likely to occur: (A) a material increase in the aggregate amount of contributions required to be made to all Employee Plans by the Company or its ERISA Affiliates in the current fiscal year of the Company and its ERISA Affiliates' most recently completed fiscal year; or (B) a material increase in the Company, OpCo and their Subsidiaries' "accumulated post-retirement benefit obligations" (within the meaning of Accounting Standards Codification Topic 715-60) compared to the amount of such obligations in the Company, OpCo and their Subsidiaries' most recently completed fiscal year. For the purpose of this Agreement, "<u>ERISA Affiliate</u>" means, with respect to the Company or a

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Subsidiary, any member of any group or organization described in Sections 414(b), (c), (m) or (o) of the Code of which the Company, OpCo or such Subsidiary is a member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkk) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) The Company has not offered or sold, or caused the Underwriters to offer or sell, any Shares to any person pursuant to the Directed Share Program with the specific intent to unlawfully influence (i) a customer or supplier of the Company to alter the customer's or supplier's level or type of business with the Company or (ii) a trade journalist or publication to write or publish favorable information about the Company or its products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmm) In connection with the Directed Share Program, the Company will ensure that the Directed Shares will be restricted to the extent required by FINRA or the FINRA rules from sale, transfer, assignment, pledge or hypothecation for a period of three months following the date of the effectiveness of the Registration Statement. The Representatives will notify the Company as to which Participants will need to be so restricted. The Company will direct the transfer agent to place stop transfer restrictions upon such securities for such period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnn) The Company will pay all fees and disbursements of counsel (including non-U.S. counsel) incurred by the Underwriters in connection with the Directed Share Program and stamp duties or other similar taxes or duties, if any, incurred by the underwriters in connection with the Directed Share Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Agreements</u> <u>to Sell and Purchase</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Upon the terms and conditions set forth herein, the Company hereby agrees to issue and sell the Firm Shares to the Underwriters. Upon the basis of the representations, warranties, covenants and agreements of the Company contained in <u>Sections 1</u> and <u>4.1</u> hereof and subject to all the terms and conditions set forth herein, each Underwriter agrees, severally and not jointly, to purchase from the Company at a purchase price of $[ ] per Share (the "<u>Purchase Price Per Share</u>"), the number of Firm Shares set forth opposite the name of such Underwriter in <u>Schedule I</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. The Company hereby also agrees to issue and sell the Additional Shares to the Underwriters. Upon the basis of the representations, warranties, covenants and agreements of the Company contained in <u>Sections 1</u> and 4.1 hereof and subject to all the terms and conditions set forth herein, the Underwriters shall have the right for thirty (30) days from the date of the Prospectus to purchase from the Company in whole or in part the Additional Shares at the Purchase Price Per Share less an amount per Share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not the Additional Shares. The Additional Shares may be purchased solely for the purpose of covering over-allotments, if any, made in connection with the offering of the Firm Shares. If any Additional Shares are to be purchased, each Underwriter, severally and not jointly, agrees to purchase the number of Additional Shares (subject to such adjustments as you may determine to avoid fractional shares) that bears the same proportion to the total number of Additional Shares to be purchased by the Underwriter as the

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number of Firm Shares set forth opposite the name of such Underwriter in <u>Schedule I</u> hereto bears to the total number of Firm Shares. The option to purchase Additional Shares may be exercised at any time within thirty (30) days after the date of the Prospectus, but no more than once.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Terms of Public</u> <u>Offering</u><u>; Delivery of the</u> <u>Shares</u> <u>and Payment Therefor</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. The Company has been advised by you that the Underwriters propose to make a public offering of their respective portions of the Shares as soon after the Registration Statement and this Agreement have become effective as in your judgment is advisable and initially to offer the Shares upon the terms set forth in the Prospectus. The Company acknowledges and agrees that the Underwriters may offer and sell the Shares to or through any of their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. Delivery to the Underwriters of the Firm Shares and payment therefor shall be made at the offices of Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida at 10:00 a.m., St. Petersburg, Florida time, on [ ], or such other place, time and date not later than 1:30 p.m., St. Petersburg, Florida time, on [ ] as a Representative shall designate by notice to the Company (the time and date of such closing are called the "<u>Closing Date</u>"). The place of closing for the Firm Shares and the Closing Date may be varied by agreement between the Representatives and the Company. The Company hereby acknowledges that circumstances under which the Representatives may provide notice to postpone the Closing Date as originally scheduled include any determination by the Company or the Representatives to recirculate to the public copies of an amended or supplemented Prospectus or a delay as contemplated by the provisions of <u>Section</u> <u>9</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. Delivery to the Underwriters of and payment for any Additional Shares to be purchased by the Underwriters shall be made at the offices of Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida, at 10:00 a.m., St. Petersburg, Florida time, on such date or dates (each, an "<u>Additional Closing Date</u>") (which may be the same as the Closing Date, but shall in no event be earlier than the Closing Date nor earlier than one nor later than ten (10) business days after the giving of the notice hereinafter referred to) as shall be specified in a written notice from the Representatives to the Company, of the Underwriters' determination to purchase a number, specified in such notice, of Additional Shares. Such notice may be given at any time within thirty (30) days after the date of the Prospectus and must set forth the aggregate number of Additional Shares as to which the Underwriters are exercising the option. The place of closing for the Additional Shares and any Additional Closing Date may be varied by agreement between you and the Company. The Closing Date and any Additional Closing Date are sometimes each referred to as a "<u>Delivery Date</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. The Shares and any Additional Shares to be purchased hereunder shall be delivered to you through The Depositary Trust Company ("<u>DTC</u>") on the Closing Date or any Additional Closing Date, as the case may be, against payment of the aggregate Purchase Price Per Share for the Shares sold hereunder by wire transfer of immediately available funds to [an] account[s] specified in writing, not later than the close of business on the business day next preceding the Closing Date or any such Additional Closing Date, as the case may be, by the Company. Payment

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for the Shares sold by the Company hereunder shall be delivered by the Representatives to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. It is understood that the Representatives have been authorized, for their own account and the accounts of the Underwriters, to accept delivery of and receipt for, and make payment of the aggregate Purchase Price Per Share for the Shares that the Underwriters have agreed to purchase. Raymond James & Associates, Inc., individually and not as Representatives of the Underwriters, may, but shall not be obligated to, make payment for any Shares to be purchased by any Underwriter whose funds shall not have been received by the Representatives by the Closing Date or any Additional Closing Date, as the case may be, for the account of such Underwriter, but any such payment shall not relieve such Underwriter from any of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. Not later than 12:00 p.m. on the second business day following the date the Shares are released by the Underwriters for sale to the public, the Company shall deliver or cause to be delivered copies of the Prospectus, in such quantities and at such places as the Representatives shall request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Covenants and</u> <u>Agreements</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Covenants and</u> <u>Agreements</u> <u>of the</u> <u>Company</u><u>.</u> The Company covenants and agrees with the Underwriters as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will use its reasonable best efforts to (i) keep the Registration Statement and any amendments thereto effective and (ii) prevent the issuance of any order described in <u>Section</u> <u>4.1(b)(v)</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will advise you promptly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) when the Registration Statement has become effective and the time and date of any filing of any amendment or supplement to the Registration Statement, any Prospectus and any Issuer Free Writing Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if Rule 430A under the Act is employed, the time and date of filing of the Prospectus pursuant to Rule 424(b) under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the time and date of filing of any Rule 462(b) Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of (x) the receipt of any comments of the Commission, (y) any request by the Commission for amendments or supplements to the Registration Statement, any Preliminary Prospectus or any Prospectus or (z) any request by the Commission for additional information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) of (y) the issuance by the Commission or any other government or regulatory authority of any stop order suspending the effectiveness of the Registration Statement, suspending the qualification of the Shares for offering or sale in any jurisdiction,

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or preventing or suspending the use of the Registration Statement, the Time of Sale Information, the Prospectus or any Issuer Free Writing Prospectus or (z) the initiation or, to the knowledge of the Company, threatening, of any proceeding for the purpose of any order referred to under item (y) or initiated pursuant to Section 8A of the Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) within the Prospectus Delivery Period (as defined in <u>Section</u> <u>4.1(j)</u> hereof), of any change in the Company's condition (financial or other), business, prospects, properties, net worth or results of operations, or of any event that comes to the attention of the Company that makes any statement made in the Registration Statement, the Time of Sale Information or the Prospectus (as then amended or supplemented) untrue in any material respect or that requires the making of any additions thereto or changes therein in order to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading in any material respect, or of the necessity to amend or supplement the Prospectus (as then amended or supplemented) to comply with the Act or any other law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If at any time the Commission or any other government or regulatory authority shall issue any stop order as referred to under <u>Section</u> <u>4.1(b)(v)</u>, the Company will use its reasonable best efforts to obtain the withdrawal or lifting of such order at the earliest possible time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company will provide the Underwriters with copies of the form of any Prospectus, in such number as the Underwriters may reasonably request, and file the Rule 424(b) Registration Statement and such Prospectus with the Commission in accordance with, and within the time period specified by, Rule 424(b) and Rule 430(A) under the Act before the close of business on the second business day immediately following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company will furnish to you, without charge, such number of conformed copies of the Registration Statement and any amendment thereto, as you may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company will promptly prepare and file with the Commission any amendment or supplement to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus that may be (i) in the judgment of the Company, be required (y) to comply with the Act or any other law or (z) in relation to <u>Section</u> <u>1.1</u> hereof or (ii) requested by the Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Before (i) using, authorizing, approving, referring to, distributing or filing any Issuer Free Writing Prospectus, (ii) filing (x) any Prospectus, (y) any Rule 462(b) Registration Statement or (z) any amendment or supplement to the Registration Statement or the Prospectus or (iii) distributing any amendment or supplement to the Time of Sale Information or the Prospectus, the Company will furnish to the Representatives and counsel to the Underwriters a copy of such proposed document for review and will not use, authorize, refer to, distribute or file any such document to the extent that (A) the Representatives objects thereto in a timely manner and (B) it is not in compliance with the Act or any other law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company will not make any offer relating to the Common Stock that would constitute an Issuer Free Writing Prospectus without your prior consent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company will, pursuant to reasonable procedures developed in good faith, retain any Issuer Free Writing Prospectus that is not filed with the Commission in accordance with Rule 433 under the Act; and if at any time after the date hereof any events shall have occurred as a result of which any Issuer Free Writing Prospectus, as then amended or supplemented, would conflict with the information in the Registration Statement, the most recent Preliminary Prospectus or any Prospectus or would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or, if for any other reason it shall be necessary to amend or supplement any Issuer Free Writing Prospectus, the Company will (x) notify you, and (y) prepare and furnish without charge to each Underwriter as many copies as they may from time to time reasonably request of an amended or supplemented Issuer Free Writing Prospectus that will correct such conflict, statement or omission or effect such compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) As soon after the execution and delivery of this Agreement as is practicable and thereafter from time to time for such period as in the reasonable opinion of counsel for the Company a prospectus is required by the Act to be delivered in connection with the offering and sale of the Shares by any Underwriter or a dealer (the "<u>Prospectus Delivery Period</u>"), and for so long a period as you may request for the distribution of the Shares, the Company will deliver to each Underwriter and each dealer, without charge, as many copies of the Prospectus and the Time of Sale Information (and of any amendment or supplement thereto) as they may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company consents to the use of the Prospectus and the Time of Sale Information (and of any amendment or supplement thereto) in accordance with the provisions of the Act and with the securities or Blue Sky laws of the jurisdictions in which the Shares are offered and/or sold by the Underwriters and by all dealers to whom the Shares may be sold, both in connection with the offering and sale of the Shares and for the Prospectus Delivery Period. If at any time prior to the later of (i) the completion of the distribution of the Shares pursuant to the offering contemplated by the Registration Statement or (ii) the expiration of prospectus delivery requirements with respect to the Shares under Section 4(a)(3) of the Act and Rule 174 thereunder, any event shall occur that in the judgment of the Company or in the opinion of counsel for the Company is required to be set forth in the Prospectus (as then amended or supplemented) or should be set forth therein in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary to supplement or amend the Prospectus to comply with the Act or any other law, the Company will forthwith prepare and, subject to <u>Section</u> <u>4.1(a)</u> hereof, file with the Commission and use its reasonable best efforts to cause to become effective as promptly as possible an appropriate supplement or amendment thereto, and will furnish to each Underwriter who has previously requested such Prospectus, without charge, a reasonable number of copies thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Company will reasonably cooperate with you and counsel for the Underwriters in connection with the registration or qualification of the Shares for offering and sale by the Underwriters and by dealers under the securities or Blue Sky laws of such jurisdictions as you may reasonably designate and will file such consents to service of process or other documents as may

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be reasonably necessary in order to effect and maintain such registration or qualification for so long as required to complete the distribution of the Shares; <u>provided that</u> in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take any action that would subject it to general service of process in suits, other than those arising out of the offering or sale of the Shares, as contemplated by this Agreement and the Prospectus, in any jurisdiction where it is not now so subject. In the event that the qualification of the Shares in any jurisdiction is suspended, the Company shall so advise you promptly in writing. If required by applicable law, the Company will use its best efforts to qualify or register its Common Stock for offering and/or sale in non-issuer transactions under (or obtain exemptions from the application of) the Blue Sky laws of each state where necessary to permit market making transactions and secondary trading and will comply with such Blue Sky laws and will continue such qualifications, registrations and exemptions in effect for a period of three (3) years after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company will comply in all material respects with all applicable securities laws, rules and regulations, including, without limitation, the Sarbanes-Oxley Act, and will use its reasonable best efforts to cause the Company's directors and officers, in their capacities as such, to comply with such laws, rules and regulations, including, without limitation, the provisions of the Sarbanes-Oxley Act; it being understood that this paragraph (m) shall not require the Company to comply with Section 404 of the Sarbanes-Oxley Act as of an earlier date than it would otherwise be required to so comply under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company will make generally available to its securityholders a consolidated earnings statement (in form complying with the provisions of Rule 158), which need not be audited, covering a twelve (12)-month period commencing after the effective date of the Registration Statement or any Rule 462(b) Registration Statement, as the case may be, and ending not later than fifteen (15) months thereafter, as soon as reasonably practicable after the end of such period, which consolidated earnings statement shall satisfy the provisions of Section 11(a) of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) During the period ending three (3) years from the date hereof, so long as the Shares are outstanding, the Company will furnish to you and, upon your request, to each of the Underwriters, (i) as soon as available, a copy of each proxy statement, quarterly or annual report, financial statement and any other report or communication (financial or other) delivered to stockholders or filed with the Commission, FINRA or NYSE or any national securities exchange and (ii) from time to time such other information concerning the Company as you may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Company will apply the net proceeds from the sale of the Shares to be sold by it hereunder in accordance in all material respects with the statements under the caption "Use of Proceeds" in the Registration Statement, the Time of Sale Information and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Company will cause each officer and director of the Company set forth on <u>Schedule III</u> hereto to furnish to the Representative, prior to the Closing Date, duly executed lock-up letter(s), which shall be substantially in the form of Exhibit A hereto;

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Both the amended and restated certificate of incorporation of the Company (the "<u>Amended and Restated Charter</u>") and the OpCo LP Agreement that will be in effect immediately following the Closing Date will include the provisions, which shall be substantially in the form of <u>Exhibit B</u> hereto (the "<u>Lock-Up Provisions</u>") which prohibit the transfer, sale, pledge or other disposition by the holders of any capital stock of the Company that acquired its shares thereof prior to the consummation of the Offering (the "<u>Initial Stockholders</u>") of (or entry into any transaction or device that is designed to, or could be expected to, result in the disposition at any time in the future of) any shares of Class A Common Stock or securities convertible into, or exercisable or exchangeable for, any shares of Class A Common Stock for a period commencing on the date hereof and ending on the 180th day after the date of the Prospectus (the "<u>Lock-Up Period</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) During the Lock-Up Period, the Company will not take, and will not cause OpCo to take, any actions or steps to amend, restate and/or change the Amended and Restated Charter and/or the OpCo LP Agreement, respectively, in a manner inconsistent with the Lock-Up Provisions and will not waive, and will not cause OpCo to waive, the Lock-Up Provisions without the prior written consent of the Representatives and will take, and will cause OpCo to take, all reasonably necessary actions to preserve the Lock-Up Provisions during the Lock-Up Period. The Company will direct, and will cause OpCo to direct, its transfer agent to place stop transfer restrictions upon the securities subject to the Lock-Up Provisions and the Company will not, and will not cause OpCo to, during the Lock-Up Period, deliver any instruction or opinion of counsel to its transfer agent permitting the removal of such stop transfer restrictions without the prior written consent of the Representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) During the Lock-Up Period, the Company will not, without the prior consent of either Raymond James & Associates, Inc. or Stifel, Nicolaus & Company, Incorporated, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) offer for sale, sell, pledge or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any shares of Class A Common Stock or securities convertible into, or exercisable or exchangeable for, any shares of Class A Common Stock (other than (A) the Class A Common Stock issued pursuant to the terms of this Agreement (including, for the avoidance of doubt, the Additional Shares), (B) the issuance of Common Stock and OpCo Interests in connection with the Reorganization Transactions and the Offering, (C) the issuance by the Company of shares of Class A Common Stock upon the exchange of Class B Common Stock together with OpCo Interests pursuant to the OpCo LP Agreement, as described in the Time of Sale Information and the Prospectus, (D) the issuance of up to 10% of the outstanding shares of Common Stock, or securities convertible into, exercisable for, or which are otherwise exchangeable for, Common Stock, immediately following the Closing Date, in acquisitions or other similar strategic transactions, provided that such recipients enter into a lock-up agreement with the Underwriters, or (E) any Class A Common Stock, bonus or other options or rights granted or issued pursuant to any employee stock plan or other employee equity or equity-based incentive plan described in the Registration Statement, Time of Sale Information or the Prospectus (whether upon the exercise of stock options or otherwise), or Class A Common Stock issued pursuant to currently outstanding options, warrants or rights, or sell or grant

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options, rights or warrants with respect to any shares of Class A Common Stock or securities convertible into, or exercisable or exchangeable for Class A Common Stock (other than Class A Common Stock issued pursuant to currently outstanding options, warrants or rights), whether any such transaction is to be settled by delivery of any shares of Class A Common Stock or other securities, in cash or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of any shares of Class A Common Stock, whether any such transaction is to be settled by delivery of any shares of Class A Common Stock or other securities, in cash or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) file or cause to be filed a registration statement (other than (A) any registration statement on Form S-8 relating to a long-term incentive plan described in the Prospectus, the Registration Statement or any amendment or supplement to the Registration Statement filed in accordance with this Agreement, (B) pursuant to the Company's obligations under the Registration Rights Agreement, dated [•], 2026, by and between the Company and the holders party thereto, the confidential submission by the Company of a resale shelf draft registration statement on Form S-1 with the Commission (provided, in the case of any such confidential submission, (1) the Company shall give written notice to the Representatives at least five business days prior to such submission, (2) no public announcement of such confidential submission shall be made and (3) no such confidential submission shall become a publicly available registration statement during the Lock-Up Period)), including any amendments thereto, with respect to the registration of any shares of Class A Common Stock or securities convertible into, exercisable or exchangeable for, any shares of Class A Common Stock or any other securities of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) publicly disclose the intention to take any of the actions described under <u>Sections 4.1(s)(i)</u>, <u>4.1(s)(ii)</u> or <u>4.1(s)(iii)</u>, in each case without the prior written consent of each of the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) At the request of the Representatives, the Company will furnish to you, as promptly as possible, copies of any unaudited interim consolidated financial statements of the Company and the Subsidiaries for any period subsequent to the periods covered by the financial statements appearing in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Other than excepted activity pursuant to Regulation M under the Exchange Act, the Company will not at any time, directly or indirectly, take any action designed, or which might reasonably be expected to cause, result in, or constitute, stabilization or manipulation of the price of the shares of Common Stock to facilitate the sale or resale of any of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The Company will use its reasonable best efforts to timely file with NYSE all documents and notices required by NYSE of companies that have or will issue securities that are traded on NYSE.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Company will engage and maintain, at its expense, a transfer agent and, if necessary under the jurisdiction of its incorporation or the rules of any national securities exchange on which the Common Stock will be listed, a registrar (which, if permitted by applicable laws and rules may be the same entity as the transfer agent) for the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The Company will promptly notify the Representatives if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) the time when a prospectus relating to the offering and sale of the Class A Common Stock or other securities relating thereto is not required by the Act to be delivered (whether physically or through compliance with Rule 172 under the Act or any similar rule) or (ii) completion of the Lock-Up Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Expenses</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Whether or not the transactions contemplated hereby are consummated or this Agreement becomes effective or is terminated, the Company agrees to pay or cause to be paid the following: (i) the fees, disbursements and expenses of the Company's counsel and accountants in connection with the registration of the Shares under the Act and all other expenses in connection with the preparation, printing and filing of the Registration Statement, each Preliminary Prospectus, any Prospectus, each Free Writing Prospectus (including each Issuer Free Writing Prospectus) and amendments and supplements thereto and the mailing and delivering of copies thereof to the Underwriters and dealers; (ii) the printing and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of the Registration Statement, each Preliminary Prospectus, any Prospectus, each Free Writing Prospectus (including each Issuer Free Writing Prospectus), the Blue Sky memoranda, this Agreement and all amendments or supplements to any of them as may be reasonably requested for use in connection with the offering and sale of the Shares; (iii) consistent with the provisions of <u>Section</u> <u>4.1(l)</u> hereof, all expenses in connection with the qualification of the Shares for offering and sale under state securities laws or Blue Sky laws, including reasonable and documented attorneys' fees and out-of-pocket expenses of the counsel for the Underwriters in connection therewith; (iv) the filing fees incident to securing any required review by FINRA of the fairness of the terms of the sale of the Shares and the reasonable and documented fees and disbursements of the Underwriters' counsel relating thereto; (v) the fees and expenses associated with listing the Shares on NYSE; (vi) the cost of preparing stock certificates, if applicable; (vii) the costs and charges of any transfer agent or registrar; (viii) all fees and expenses (including fees and expenses of counsel) of the Company in connection with approval of the Shares by DTC for "book-entry" transfer; (xi) the cost of all issue, transfer and other stamp taxes in connection with the issuance and delivery of the Shares to the respective Underwriters; (x) all other fees, costs and expenses referred to in Item 13 of the Registration Statement; and (xi) the transportation, lodging, graphics and other expenses relating to the Company's preparation for and participation in the "road show" for the Offering contemplated hereby; provided, however, that the amounts payable by the Company pursuant to clauses (iii) and

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(iv) of this <u>Section</u> <u>5.1</u> shall not exceed $40,000 in the aggregate for fees and expenses of counsel for the Underwriters; provided, further, that the Underwriters shall pay 50% of the costs of any aircraft chartered in connection with the "road show".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. If this Agreement shall terminate or shall be terminated after execution pursuant to any provision hereof except pursuant to a termination under <u>Section</u> <u>10</u> hereof or if this Agreement shall be terminated by the Underwriters because of any inability, failure or refusal on the part of the Company to perform in all material respects any agreement herein or to comply in all material respects with any of the terms or provisions hereof or to fulfill in all material respects any of the conditions of this Agreement, the Company agrees to reimburse you and the Underwriters for all reasonable and documented out-of-pocket expenses (including reasonable and documented travel expenses and reasonable and documented fees and expenses of counsel for the Underwriters, but excluding wages and salaries paid by you) incurred by you in connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Except as provided in this <u>Section</u> <u>5</u> and in <u>Section</u> <u>6</u> hereof, the Underwriters shall pay their own expenses, including the fees and disbursements of their counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Indemnification and Contribution</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Subject to the limitations in this <u>Section</u> <u>6</u>, the Company and OpCo agree to indemnify and hold harmless each Underwriter, the Affiliates, directors, officers, employees and agents thereof and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages, liabilities and expenses, including reasonable and documented costs of investigation and reasonable and documented attorneys' fees and expenses (collectively, the "<u>Damages</u>"), joint or several, arising out of or based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Prospectus, the Prospectus, the Registration Statement, the Time of Sale Information, any Free Writing Prospectus (including any Issuer Free Writing Prospectus) or any Written Testing-the-Waters Communication prepared or authorized by the Company, or any amendment or supplement thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that any such Damages arise out of or are based upon an untrue statement or omission or alleged untrue statement or omission that has been made therein or omitted therefrom in reliance upon and in conformity with the information furnished to the Company by or on behalf of any Underwriter through you for use in connection therewith; provided, however, that with respect to any untrue statement or omission made in any Preliminary Prospectus, the indemnity agreement contained in this <u>Section</u> <u>6</u> shall not inure to the benefit of any Underwriter (or to the benefit of any person controlling such Underwriter or to any officer, director, employee or agent of such Underwriter) from whom the person asserting any such Damages purchased the Shares concerned if both (A) a copy of the Time of Sale Information was not sent or given to such person at or prior to the written confirmation of the sale of such Shares to such person as required by the Act and (B) the untrue statement or omission in such Preliminary Prospectus was corrected in the Time of Sale Information. The indemnification provided in this <u>Section</u> <u>6</u> shall be in addition to any liability that the Company or OpCo may otherwise have.

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The Company agrees to indemnify and hold harmless the Representatives and their Affiliates and each person, if any, who controls the Representatives within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act (the "<u>Designated Entities</u>"), from and against any and all Damages (including, without limitation, any reasonable and documented legal or other expenses incurred in connection with defending or investigating any such action or claim) (i) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the consent of the Company for distribution to Participants in connection with the Directed Share Program or arising out of or based upon any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) arising out of or based upon the failure of any Participant to pay for and accept delivery of Directed Shares that the Participant agreed to purchase; or (iii) arising out of, related to, or in connection with the Directed Share Program, other than Damages (or expenses relating thereto) that are finally judicially determined to have resulted from the bad faith, willful misconduct or gross negligence of the Designated Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. In addition to its other obligations under this <u>Section</u> <u>6</u>, the Company agrees that, as an interim measure during the pendency of any claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or any inaccuracy in the representations and warranties of the Company in <u>Section</u> <u>1</u> hereof or failure to perform its obligations hereunder, all as set forth in this <u>Section</u> <u>6</u>, the Party against whom indemnification is being sought will reimburse each Underwriter on a monthly basis for all reasonable legal or other out-of-pocket expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding (to the extent documented by reasonably itemized invoices therefor), notwithstanding the absence of a judicial determination as to the propriety and enforceability of the obligation of the Company and OpCo to reimburse each Underwriter for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. To the extent that any such interim reimbursement payment is so held to have been improper, each Underwriter shall promptly return it to the person(s) from whom it was received. Any such interim reimbursement payments that are not made to the Underwriters within sixty (60) days of a request for reimbursement shall bear interest compounded daily at a rate determined on the basis of the base lending rate announced from time to time by The Wall Street Journal from the date of such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. If (i) any action, suit, proceeding (including any governmental or regulatory investigation) or claim shall be brought by any third party against any Underwriter or any person controlling any Underwriter (each, an "<u>Indemnified Party</u>" and together, the "<u>Indemnified Parties</u>") and (ii) indemnity may be sought against the Company and OpCo pursuant to <u>Section</u> <u>6.1</u> (the "<u>Indemnifying Party</u>") in respect of such action, suit, proceeding or claim, (a) the Indemnified Party(ies) shall promptly notify in writing the Indemnifying Party, and (b) such Indemnifying Party shall assume the defense of the Indemnified Party(ies), including the employment of counsel reasonably acceptable to the Indemnified Party(ies) and the payment of all reasonable and documented fees of and expenses incurred by such counsel, provided that (y) the failure to notify the Indemnifying Party shall not relieve it from any liability that it may have under

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this <u>Section</u> <u>6</u> except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure and (z) the failure to notify the Indemnifying Party shall not relieve it from any liability that it may have to any Indemnified Party otherwise than under this <u>Section</u> <u>6</u>. The Indemnified Party(ies) shall have the right to employ separate counsel in any such action, suit, proceeding or claim and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Indemnified Party(ies), unless (i) the Indemnifying Party has agreed in writing to pay such fees and expenses, (ii) the Indemnifying Party has failed to assume the defense and employ counsel reasonably acceptable to the Indemnified Party(ies) or (iii) the named parties to any such action, suit, proceeding or claim (including any impleaded parties) include both the Indemnified Party(ies) and the Indemnifying Party, and the Indemnified Party(ies) shall have been advised by its (their) counsel that one or more legal defenses may be available to it that may not be available to the Indemnified Party(ies), or that representation of the Indemnified Party(ies) and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Indemnifying Party shall not have the right to assume the defense of such action, suit, proceeding or claim on behalf of the Indemnified Party(ies) but the Indemnifying Party shall not be liable for the fees and expenses of more than one counsel for all Indemnified Parties). Any such own counsel for (i) any Underwriter, the Affiliates, directors, officers, employees and agents thereof, and each person, if any, who controls any Underwriter within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall be designated in writing by the Representatives and (ii) the Company, its directors, its officers who sign the Registration Statement and any person who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall be designated in writing by the Company. The Indemnifying Party shall not be liable for any settlement of any such action effected without its written consent, but if settled with such written consent, or if there be a final judgment for the plaintiff in any such action, suit, proceeding or claim, the Indemnifying Party agrees to indemnify and hold harmless any Indemnified Party from and against any Damages by reason of such settlement or judgment, but in the case of a judgment only to the extent stated in <u>Sections 6.1</u> and <u>6.2</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company and OpCo, its directors, its officers who sign the Registration Statement and any person who controls the Company and OpCo within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, to the same extent as the several indemnity from the Company to each Underwriter set forth in Section 6.3 hereof, but only with respect to information furnished in writing by or on behalf of such Underwriter through you expressly for use in the Registration Statement, the Prospectus, the Time of Sale Information, any Free Writing Prospectus (including any Issuer Free Writing Prospectus) or any Written Testing-the-Waters Communication, or any amendment or supplement thereto, which information is specified in <u>Section</u> <u>6.10</u>. If (i) any action, suit, proceeding (including any governmental or regulatory investigation) or claim shall be brought or asserted against the Company, any of its directors, any of its officers or any such controlling person based on the Registration Statement, the Prospectus, the Time of Sale Information or any Free Writing Prospectus (including any Issuer Free Writing Prospectus), or any amendment or supplement thereto, and (ii) indemnity may be sought against any Underwriter pursuant to this

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Agreement in respect of such action, suit, proceeding or claim, such Underwriter shall have the rights and duties given to the Company by <u>Section</u> <u>6.3</u> (except that, if the Company shall have assumed the defense thereof, such Underwriter shall not be required to do so, but may employ separate counsel in such action, suit, proceeding or claim and participate in the defense of the Company, but the fees and expenses of such counsel shall be at such Underwriter's expense), and the Company, any of its directors, any of its officers and any such controlling persons, shall have the rights and duties given to the Underwriters by <u>Section</u> <u>6.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. In any event, the Company will not, without the prior written consent of each of the Representatives, settle or compromise or consent to the entry of any judgment in any current or threatened claim, action, suit or proceeding in respect of which an indemnification may be sought under <u>Section</u> <u>6.1</u> hereof (whether or not the Representatives or any person who controls the Representatives within the meaning of Section 15 of the Act or Section 20 of the Exchange Act is a party to such claim, action, suit or proceeding) unless (i) such settlement, compromise or consent includes an unconditional release of all Underwriters and each person, if any, who controls any Underwriter within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, in form and substance reasonably satisfactory thereto, from all liability arising out of such claim, action, suit or proceeding and (ii) does not include any statements as to or any findings of fault, culpability or failure to act by or on behalf of the Underwriters and any such controlling person. Notwithstanding the foregoing, if at any time any Underwriter (or any such controlling person) shall have requested the Company to reimburse such Underwriter (or controlling person) for any fees and expenses of counsel as contemplated by <u>Section</u> <u>6.3</u> hereof, the Company agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (a) such settlement is entered into more than sixty (60) days after receipt by the Company of the aforesaid request, (b) the Company shall not have reimbursed such Underwriter (or controlling person) in accordance with such request, or shall not have disputed in good faith such Underwriter's (or controlling person's) entitlement to such reimbursement, prior to the date of such settlement and (c) such Underwriter (or controlling person) shall have given the Company at least sixty (60) days' prior notice of its intention to settle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. If the indemnification provided for in this <u>Section</u> <u>6</u> is unavailable or insufficient for any reason whatsoever to an Indemnified Party in respect of any Damages referred to herein, then an Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Damages (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand, and the Underwriters on the other hand, from the offering and sale of the Shares pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative and several fault of the Company on the one hand, and the Underwriters on the other hand, in connection with the statements or omissions that resulted in such Damages as well as any other relevant equitable considerations. The relative and several benefits received by the Company on the one hand, and the Underwriters on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the offering and sale of the Shares (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on

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the cover page of the Prospectus; provided that, in the event that the Underwriters shall have purchased any Additional Shares hereunder, any determination of the relative benefits received by the Company or the Underwriters from the offering and the sale of the Additional Shares shall include the net proceeds (before deducting expenses) received by the Company and the underwriting discounts and commissions received by the Underwriters, from the sale of such Additional Shares, in each case computed on the basis of the respective amounts set forth in the notes to the table on the cover page of the Prospectus. The relative fault of the Company on the one hand, and the Underwriters on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand, or by the Underwriters on the other hand and the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this <u>Section</u> <u>6</u> was determined by a pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation that does not take into account the equitable considerations referred to in <u>Section</u> <u>6.6</u> hereof. The amount paid or payable by an Indemnified Party as a result of the Damages referred to in <u>Section</u> <u>6.6</u> hereof shall be deemed to include, subject to the limitations set forth above, any reasonable and documented legal or other expenses incurred by such Indemnified Party in connection with investigating or defending any claim, action, suit or proceeding. Notwithstanding anything contained herein to the contrary, if indemnity may be sought pursuant to the last paragraph in <u>Section</u> <u>6.1</u> in respect of such action or proceeding, then in addition to such separate firm for the Indemnified Parties, the Indemnifying Party shall be liable for the reasonable and documented fees and expenses of not more than one separate firm (in addition to any local counsel) for each of the Representatives for the defense of any losses, claims, damages and liabilities arising out of the Directed Share Program, and all persons, if any, who control the Representatives within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act. Notwithstanding the provisions of this <u>Section</u> <u>6</u>, no Underwriter shall be required to contribute any amount in excess of the amount of the underwriting commissions received by such Underwriter in connection with the Shares underwritten by it and distributed to the public. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations to contribute pursuant to this Section 6 are several in proportion to the respective numbers of Firm Shares set forth opposite their names in <u>Schedule I</u> hereto (or such numbers of Firm Shares increased as set forth in Section 9 hereof) and not joint. For purposes of this <u>Section</u> <u>6.7</u>, (i) each Affiliate, director, officer, employee and agent of any Underwriter and each person, if any, who controls an Underwriter within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall have the same rights to contribution as such Underwriter and (ii) each director and officer of the Company who signed the Registration Statement and each person, if any, who controls the Company with the meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. Notwithstanding <u>Section</u> <u>6.2</u> hereof, any Damages for which an Indemnified Party is entitled to indemnification or contribution under this <u>Section</u> <u>6</u> shall be paid by the Indemnifying

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Party to the Indemnified Party as Damages are incurred after receipt of reasonably itemized invoices therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. A successor to any Underwriter or the Company, the directors or officers of any Underwriters or the Company or any person controlling any Underwriters or the Company as referred to in this <u>Section</u> <u>6</u> shall be entitled to the benefits of the indemnity, contribution and reimbursement agreements contained in this <u>Section</u> <u>6</u>. The term "successors" as used herein, shall not include any purchaser of the Shares from any Underwriter merely by reason of such purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10. The Underwriters severally confirm and the Company acknowledges and agrees that the concession and reallowance figures and the paragraph relating to stabilization by the Underwriters appearing under the caption "Underwriting" in the most recent Preliminary Prospectus and the Prospectus constitute the only information concerning such Underwriters furnished in writing to the Company by or on behalf of the Underwriters specifically for inclusion in the Registration Statement, the Prospectus, the Time of Sale Information, any Free Writing Prospectus (including any Issuer Free Writing Prospectus) or any Written Testing-the-Waters Communication or in any amendment or supplement thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Conditions of</u> <u>Underwriters</u><u>'</u> <u>Obligations</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The several obligations of the Underwriters to purchase the Shares hereunder are subject to the following conditions which shall be fulfilled on each of the Closing Date and any Additional Closing Date (unless otherwise provided hereinafter or as the context may require):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1. <u>Certain Filings</u>. The Prospectus shall have been timely filed with the Commission in accordance with <u>Section</u> <u>4.1(b)(i)</u>. The Company shall have complied with all filing requirements applicable to any Issuer Free Writing Prospectus used or referred to after the date hereof; no stop order suspending the effectiveness of the Registration Statement or preventing or suspending the use of the Prospectus or any Issuer Free Writing Prospectus shall have been issued and no proceeding or examination for such purpose shall have been initiated or threatened by the Commission; If the Company has elected to rely upon Rule 462(b) under the Act, the Rule 462(b) Registration Statement shall have become effective by 10:00 P.M., New York City time, on the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2. <u>[RESERVED]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3. <u>Corporate Proceedings</u>. All corporate proceedings and other legal matters incident to the authorization, form and validity of this Agreement, the Shares, the Registration Statement, the Prospectus and any Issuer Free Writing Prospectus, and all other legal matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the Underwriters, and the Company shall have furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such matters.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.4. <u>No Material Adverse Change</u>. Since the respective dates as of which information is given in the Registration Statement, the Time of Sale Information and the Prospectus, there shall not have been (i) any change in the capitalization of the Company or any material change in the indebtedness (other than in the ordinary course of business) of the Company, (ii) a material loss or interference with its business or properties from fire, explosion, flood, windstorm, accident or other calamity (whether or not insured) that had or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect sustained by the Company or any of its Subsidiaries, (iii) any unpaid or not yet declared dividends or other distributions with respect to the capital stock of the Company or any of its Subsidiaries, (iv) any change in the capital stock or long-term debt of the Company or any of its Subsidiaries or any change, or any development involving a prospective change, in or affecting the condition (financial or otherwise), results of operations, shareholders' equity, properties, management, business or prospects of the Company and its Subsidiaries taken as a whole, the effect of which could reasonably be expected to be, individually or in the aggregate, so material and adverse as to make it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares on the terms and in the manner contemplated in the Prospectus, (v) default under the terms of any class of Common Stock or any outstanding debt obligations of the Company or any of its Subsidiaries, (vi) any Action against or involving the Company, OpCo or any of their respective Subsidiaries or any of their respective properties that is material to the Company, OpCo or any such Subsidiary or that could reasonably be expected, individually or in the aggregate, to prevent or affect the transactions contemplated by this Agreement or result in a Material Adverse Effect, either instituted or, to the knowledge of the Company, threatened, (vii) any material change, or any development involving or that may reasonably be expected to result in a material change, in the condition (financial or otherwise), business, management, properties, net worth, results of operations or prospects of the Company, OpCo or any of their Subsidiaries that makes it impractical or inadvisable in your judgment to proceed with the Offering or purchase of the Shares as contemplated hereby and (viii) except as set forth or contemplated by the Registration Statement, the Time of Sale Information or the Prospectus, any material liabilities, obligations or transactions, whether indirect, direct or contingent, that are not in the ordinary course of business or that could reasonably be expected to result in a material reduction in the Company's future earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.5. <u>Absence of Legal Impediment</u>. No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would prevent the issuance, sale or delivery of the Shares by the Company; and no injunction or order of any federal, state or foreign court shall have been issued that would prevent the issuance, sale or delivery of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.6. <u>Chief Financial Officer Certificate</u>. On the date of this Agreement and on the Closing Date or the Additional Closing Date, as the case may be, the Company shall have furnished to the Representatives a certificate, dated the respective dates of delivery thereof and addressed to the Underwriters, of its chief financial officer with respect to certain financial data contained in the Pricing Disclosure Package and the Prospectus, providing "management comfort" with respect to such information, in form and substance reasonably satisfactory to the Representatives.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.7. Opinions of Counsel to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You shall have received the opinion and 10b-5 statement, each dated the Closing Date or the Additional Closing Date, as the case may be, reasonably satisfactory in form and substance to the Representatives, from Latham & Watkins LLP, counsel to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [RESERVED].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.8. <u>Underwriters</u><u>'</u> <u>Counsel Opinion</u>. You shall have received an opinion of Vinson & Elkins L.L.P., as counsel for the Underwriters, dated the Closing Date or any Additional Closing Date, with respect to the issuance and sale of the Shares, the Registration Statement and other related matters as you may reasonably request, and the Company and such counsel shall have furnished to counsel for the Underwriters such documents as they may reasonably request for the purpose of enabling them to pass upon such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.9. <u>Accountants</u><u>'</u> <u>Comfort Letters</u>. On the date of the Prospectus, the Representatives shall have received from each of the Accountants a letter dated the date of its delivery, addressed to the Representatives, in form and substance reasonably satisfactory to the Representatives, containing statements and information of the type ordinarily included in accountant's "comfort letters" to underwriters, delivered according to Statement of Auditing Standards No. 72 (or any successor bulletin), with respect to the audited and unaudited financial statements and certain financial information contained in the Registration Statement and the Prospectus. At the Closing Date and the Additional Closing Date, as the case may be, the Representatives shall have received from the Accountants a letter dated such date, in form and substance reasonably satisfactory to the Representatives, to the effect that they reaffirm the statements made in the letter furnished by them pursuant to the preceding sentence and have conducted additional procedures with respect to certain financial figures included in the Prospectus, except that the specified date referred to therein for the carrying out of procedures shall be no more than three business days prior to the Closing Date or any Additional Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.10. <u>Reserve Engineer Comfort Letters</u>. The Representatives shall have received "comfort letters," dated the date hereof, of each of the Reserve Engineers, in each case, in form and substance reasonably satisfactory to the Representatives, covering the oil and gas reserves information included or incorporated by reference in the Registration Statement, any Rule 462(b) Registration Statement, each Preliminary Prospectus, any Prospectus, any Free Writing Prospectus (including any Issuer Free Writing Prospectus) and any Written Testing-the-Waters Communication and other customary matters. In addition, on the Closing Date and any Additional Closing Date, as the case may be, the Representatives shall have received from each of the Reserve Engineers "bring-down comfort letters" dated such Closing Date or Additional Closing Date, as the case may be, addressed to the Underwriters, in form and substance reasonably satisfactory to the Representatives, in the form of the "comfort letters" delivered on the date hereof, except that (i) they shall cover the oil and gas reserves information included or incorporated by reference in the Registration Statement and the Prospectus and any amendment or supplement thereto and (ii) procedures shall be brought down to a date no more than three (3) business days prior to the

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Closing Date or any Additional Closing Date, as the case may be, except as otherwise agreed by the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.11. <u>Officers' Certificate</u>. The Company shall have furnished to the Representatives a certificate, dated such Delivery Date, of its Chief Executive Officer and its Chief Financial Officer as to such matters as the Representatives may reasonably request, including, without limitation, a statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) That the representations, warranties and agreements of the Company in <u>Sec</u><u>tion</u> <u>1</u> are accurate in all material respects on and as of such Delivery Date, and the Company has complied in all material respects with all its agreements contained herein and satisfied in all material respects the conditions on its part to be performed or satisfied hereunder at or prior to such Delivery Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) That no stop order suspending the effectiveness of the Registration Statement has been issued; and no proceedings or examination for that purpose have been instituted or, to the knowledge of such officers, threatened;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) That they have examined the Registration Statement, the Prospectus and the Time of Sale Information, and, in their opinion, (A) (1) the Registration Statement, as of the Effective Date, (2) the Prospectus, as of its date and on the applicable Delivery Date, and (3) the Time of Sale Information, as of the Applicable Time, did not and do not contain any untrue statement of a material fact and did not and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (except in the case of the Registration Statement, in the light of the circumstances under which they were made) not misleading, and (B) since the Effective Date, no event has occurred that should have been set forth in a supplement or amendment to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus that has not been so set forth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) That no event, development or change described in <u>Section</u> <u>7.1.12</u> (*provided* that no representation with respect to the judgment of the Representatives need be made) <u>has occurred</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.12. Subsequent to the execution and delivery of this Agreement and prior to the Closing Date, or any Additional Closing Date, (i) no downgrading shall have occurred in the rating accorded the Company's debt securities by any "nationally recognized statistical rating organization", as that term is defined by the Commission for purposes of Rule 436(g)(2) under the Act and (ii) no such nationally recognized statistical rating organization shall have publicly announced that it has under surveillance or review, with possible negative implications, its rating of any of the Company's debt securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.13. Subsequent to the execution and delivery of this Agreement there shall not have occurred any of the following: (i)(A) trading in securities generally on any securities exchange that has registered with the Commission under Section 6 of the Exchange Act (including the New York Stock Exchange, The Nasdaq Global Select Market, The Nasdaq Global Market or The Nasdaq Capital Market), or (B) trading in any securities of the Company on any exchange or in the over-

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the-counter market, shall have been suspended or materially limited or the settlement of such trading generally shall have been materially disrupted or minimum prices shall have been established on any such exchange or such market by the Commission, by such exchange or by any other regulatory body or governmental authority having jurisdiction, (ii) a general moratorium on commercial banking activities shall have been declared by federal or state authorities, (iii) the United States shall have become engaged in hostilities, there shall have been an escalation in hostilities involving the United States or there shall have been a declaration of a national emergency or war by the United States, or (iv) there shall have occurred such a material adverse change in general economic, political or financial conditions, including, without limitation, as a result of terrorist activities after the date hereof (or the effect of international conditions on the financial markets in the United States shall be such) or any other calamity or crisis either within or outside the United States, as to make it, in the judgment of the Representatives, impracticable or inadvisable to proceed with the public offering or delivery of the Shares being delivered on such Delivery Date on the terms and in the manner contemplated in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.14. The Shares shall have been approved for listing on NYSE, subject to notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.15. At or prior to the Closing Date and any Additional Closing Date, you shall have received a lock-up agreement duly executed by each officer and director of the Company set forth on <u>Schedule III</u>, substantially in the form attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.16. At or prior to the effective date of the Registration Statement, you shall have received a letter from the Corporate Financing Department of FINRA confirming that such Department has determined to raise no objections with respect to the fairness or reasonableness of the underwriting terms and arrangements of the Offering contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.17. You shall have received satisfactory evidence, as of the Closing Date and any Additional Closing Date, of the good standing of the Company and each of the Subsidiaries in their respective jurisdictions of organization and in such other jurisdictions as you may reasonably request, in each case, in writing from the appropriate governmental authorities of such jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.18. The Company shall have furnished or caused to have been furnished to you such further certificates and documents as you shall have reasonably requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.19. The Company shall have furnished to you evidence reasonably satisfactory to you that the Reorganization Transactions shall have occurred or will occur as of the Closing Date, in each case as described in the Prospectus without material modification, change or waiver, except for such modifications, changes or waivers as have been specifically identified to you and which, in your judgment, do not make it impracticable or inadvisable to proceed with the offering and delivery of the Shares at the Closing Date on the terms and in the manner contemplated in the Prospectus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.20. At or prior to the Closing Date, the Amended and Restated Charter shall have become effective and the Company, OpCo and the other parties party thereto shall have entered into the OpCo LP Agreement, both of which shall contain the Lock-Up Provisions and shall be applicable to each Initial Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. All such opinions, certificates, letters and other documents will be in compliance with the provisions hereof only if they are reasonably satisfactory in form and substance to you and your counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. If any of the conditions hereinabove provided for in this <u>Section</u> <u>7</u> shall not have been satisfied when and as required by this Agreement, this Agreement may be terminated by you by notifying the Company of such termination in writing at or prior to such Closing Date or any relevant Additional Closing Date. The Representatives may, in their sole discretion, waive on behalf of the Underwriters compliance with any conditions to the obligations of the Underwriters hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Effective Date</u> <u>of</u> <u>Agreement</u>**. This Agreement shall become effective upon the later of (a) the execution and delivery hereof by the Parties in accordance with <u>Section</u> <u>19</u> hereof and (b) release of notification of the effectiveness of the Registration Statement by the Commission; provided, however, that the provisions of <u>Sections 5</u> and <u>6</u> shall at all times be effective as from the execution and delivery of this Agreement by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Defaulting</u> <u>Underwriters</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. If (a) any one or more of the Underwriters shall fail or refuse to purchase Firm Shares that it or they have agreed to purchase hereunder and (b) the aggregate number of Firm Shares that such defaulting Underwriter or Underwriters agreed but failed or refused to purchase is not more than one-tenth (1/10) of the aggregate number of the Firm Shares (including after giving effect to any arrangements between you and the Company for the purchase of the Firm Shares as referred to under <u>Section</u> <u>9.2</u> hereof), each non-defaulting Underwriter shall be obligated, severally, in the proportion in which the number of Firm Shares set forth opposite its name in <u>Schedule I</u> hereto bears to the aggregate number of Firm Shares set forth opposite the names of all non-defaulting Underwriters or in such other proportion as you may specify in any agreement among the Underwriters, to purchase the Firm Shares that such defaulting Underwriter or Underwriters agreed, but failed or refused to purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. If (a) any Underwriter or Underwriters shall fail or refuse to purchase the Firm Shares on the Closing Date or any Additional Closing Date, (b) the aggregate number of Firm Shares with respect to which such default occurs is more than one-tenth (1/10) of the aggregate number of Firm Shares to be purchased on such Closing Date or Additional Closing Date and (c) arrangements satisfactory to you and the Company for the purchase of such Firm Shares are not made within forty-eight (48) hours after such default, either you or the Company shall have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) terminate this Agreement without any liability on the part of any non-defaulting Underwriter or, except as provided in <u>Sections 5</u> and <u>6</u> hereof (provided that if

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such default occurs with respect to any Additional Shares after the Closing Date, this Agreement will not terminate as to the Firm Shares or any additional Shares purchased prior to such termination), the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) postpone the Closing Date, but in no event for longer than seven (7) days, in order that the required changes, if any, in the Registration Statement, the Time of Sale Information and the Prospectus or any other documents or arrangements may be effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. Any action taken under this <u>Section</u> <u>9</u> shall not relieve any defaulting Underwriter from liability in respect of any default thereof under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Termination of</u> <u>Agreement</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. The obligations of the Underwriters hereunder may be terminated by the Representatives by written notice given to and received by the Company prior to delivery of and payment for the Firm Shares if, prior to that time, any of the events described in <u>Section</u> <u>7.1.11</u>, shall have occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. Notice of such cancellation shall be promptly given to the Company and its counsel by electronic mail or telephone and shall be subsequently confirmed by letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Surviving Provisions.</u>** The provisions of <u>Sections 5</u> and <u>6</u> hereof and the representations and warranties of the Company and OpCo set forth in <u>Section</u> <u>1.1</u> of this Agreement shall remain operative and in full force and effect, regardless of (i) any investigation, or statement as to the results thereof, made by or on behalf of any Underwriter, the Company, the Affiliates of any Underwriters, the directors or officers of any Underwriters or the Company or each person, if any, who controls any Underwriter or the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, (ii) delivery and acceptance of any Shares and payment therefor hereunder and (iii) any termination of this Agreement for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Miscellaneous</u>.** Except as otherwise provided in <u>Sections 4</u>, <u>7.3</u> and <u>10.2</u> hereof, notice given pursuant to any of the provisions of this Agreement shall be in writing and shall be delivered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. to the Company, to the following address:

WhiteHawk Income Corporation

2000 Market Street, Suite 910

Philadelphia, Pennsylvania 19103

with a copy to:

Latham & Watkins LLP

811 Main Street, Suite 3700

Houston, TX 77002

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Attention: Ryan J. Maierson, Christopher D. Lueking, Nick S. Dhesi

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. to the Underwriters, to the following address:

Raymond James & Associates, Inc.

880 Carillon Parkway

St. Petersburg, Florida 33716

Attention: [ ]

Stifel, Nicolaus & Company, Incorporated

787 Seventh Avenue, 11<sup>th</sup> Floor

New York, New York 10019

Attention: [ ]

with a copy to:

Vinson & Elkins L.L.P.

845 Texas Avenue, Suite 4700

Houston, Texas 77002

Attention: Douglas McWilliams; Thomas Zentner; Alexandra M. Lewis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Benefit</u>.** This Agreement has been and is made solely for the benefit of the Underwriters, the Company, OpCo and any other Indemnified Party referred to in <u>Section</u> <u>6</u> hereof. Nothing in this Agreement is intended, or shall be construed, to give any other person or entity any legal or equitable right, benefit, remedy or claim under, or in respect of or by virtue of, this Agreement or any provision contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>Authority of the Representatives</u>.** Any action by the Underwriters hereunder may be taken by the Representatives on behalf of the Underwriters, and any such action taken by the Representatives shall be binding upon the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>Partial Unenforceability</u>.** The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>Entire</u> <u>Agreement</u>.** This Agreement, together with any contemporaneous written agreements and any prior written agreements (to the extent not superseded by this Agreement) that relate to the offering and sale of the Shares, represents the entire agreement among the Company and the Underwriters with respect to the preparation of the Registration Statement, any Rule 462(b) Registration Statement, each Preliminary Prospectus, any Prospectus, any Free Writing Prospectus (including any Issuer Free Writing Prospectus) and any Written Testing-the-Waters Communication, the purchase and sale of the Shares and the conduct of the Offering contemplated hereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Amendments and Waivers</u>.** No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by all the Parties. No waiver by any Party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after the waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise of any other right, remedy power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>Applicable Law and Waiver of Jury Trial</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to choice of law principles thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2. The Parties irrevocably submit to the non-exclusive jurisdiction of any New York state or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the transaction contemplated herein. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding in any such court has been brought in an inconvenient forum. In the event any action, suit or proceeding is instituted between or among the Parties in connection with any dispute relating to this Agreement or the transaction contemplated herein, the prevailing party shall be entitled to recover its reasonable and documented attorneys' fees and costs, including those incurred on appeal, in addition to any other relief to which it may be entitled. For purposes of this <u>Section</u> <u>18.2</u>, "prevailing party" means the party that substantially obtains or defeats the relief sought, whether by settlement, judgment or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3. TO THE EXTENT PERMITTED BY LAW, EACH OF THE COMPANY AND THE UNDERWRITERS VOLUNTARILY AND IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) RELATED TO OR ARISING OUT OF THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Counterparts</u>.** This Agreement may be signed in various counterparts, each of which shall be deemed an original, which together shall constitute one and the same instrument. This Agreement shall be effective when, but only when, at least one (1) counterpart hereof shall have been executed on behalf of each Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>No Fiduciary Duty</u>.** Notwithstanding any pre-existing relationship, advisory or otherwise, between the Parties or any oral representations or assurances previously or subsequently made by any of the Underwriters, the Company acknowledges and agrees that (i) nothing herein

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shall create a fiduciary or agency relationship between the Company, on the one hand, and the Underwriters, on the other hand; (ii) the Underwriters have been retained solely to act as underwriters and are not acting as advisors, expert or otherwise, to the Company in connection with the offering and sale of the Shares or any other services the Underwriters may be deemed to be providing hereunder, including, without limitation, with respect to the public offering price of the Shares, and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate; (iii) the relationship between the Company, on the one hand, and the Underwriters, on the other hand, is entirely and solely commercial, and the price of the Shares was established by the Company and the Underwriters based on discussions and arm's length negotiations and the Company understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement; (iv) any duties and obligations that the Underwriters may have to the Company shall be limited to those duties and obligations specifically stated herein; and (v) notwithstanding anything in this Agreement to the contrary, the Company acknowledges that the Underwriters may have financial interests in the success of the offering and sale of the Shares that are not limited to the difference between the price to the public and the purchase price paid to the Company for the Shares and such interests may differ from the interests of the Company, and the Underwriters have no obligation to disclose, or account to the Company for any benefit they may derive from such additional financial interests. The Company hereby waives and releases, to the fullest extent permitted by the applicable law, any claims it may have against the Underwriters with respect to any breach or alleged breach of fiduciary duty and agrees that the Underwriters shall have no liability (whether direct or indirect) to the Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company or any of its shareholders, managers, employees or creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>Research Analyst Independence</u>.** The Company acknowledges that (a) the Underwriters' research analysts and research departments are required to be independent from their respective investment banking divisions and are subject to certain regulations and internal policies and (b) the Underwriters' research analysts may hold views and make statements or investment recommendations and/or publish research reports with respect to the Company, the value of the Common Stock and/or the Offering that differ from the views of their respective investment banking divisions. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against the Underwriters with respect to any conflict of interest that may arise from the fact that the views expressed by the Underwriters' independent research analysts and research departments may be different from or inconsistent with the views or advice communicated to the Company by any Underwriter's investment banking division. The Company acknowledges that each of the Underwriters is a full service securities firm and as such, from time to time, subject to applicable securities laws, may effect transactions for its own account or the account of its customers and hold long or short positions in the Common Stock or any other securities of the Company.

*[Remainder of page intentionally left blank – Signature page follows]* 

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Please confirm that the foregoing correctly sets forth the agreement among the Company and the Underwriters.

---

| |
|:---|
| Very truly yours, |
| WHITEHAWK INCOME CORPORATION |
| Name: |
| Title: |

---

CONFIRMED as of the date first above

mentioned, on behalf of the Representatives

and the Underwriters.

---

| | |
|:---|:---|
| RAYMOND JAMES & ASSOCIATES, INC. | RAYMOND JAMES & ASSOCIATES, INC. |
| By: |  |
|  | Authorized Representative |
| STIFEL, NICOLAUS & COMPANY, INCORPORATED | STIFEL, NICOLAUS & COMPANY, INCORPORATED |
| By: |  |
|  | Authorized Representative |

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[Signature Page to Underwriting Agreement]

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**SCHEDULE I** 

**Underwriters** 

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| | | |
|:---|:---|:---|
| **Name:** | **Number of**<br>**Firm Shares** | **Number of**<br>**Additional Shares** |
| Raymond James & Associates, Inc. |  |  |
| Stifel, Nicolaus & Company, Incorporated |  |  |
| J.P. Morgan Securities LLC |  |  |
| Capital One Securities, Inc. |  |  |
| Stephens, Inc. |  |  |
| Tuohy Brothers Investment Research, Inc. |  |  |
| Total |  |  |

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Sch. I-1

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**SCHEDULE II** 

(a) Issuer Free Writing Prospectuses

[●]

(b) Written Testing-the-Waters Communications

[●]

Sch. II-1

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**SCHEDULE III** 

**Persons Subject to Lock-up** 

**Daniel Herz** 

**Jeffrey Smith** 

**Jeffrey Slotterback** 

**Michael Downs** 

**Matthew Heinlein** 

**Alan Bigman** 

**Andrew Ceitlin** 

**Peggy Gold** 

**Stephen Pilatzke** 

**Trey Karlovich** 

Sch. III-1

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**EXHIBIT A** 

**Form of Lock-up Agreement** 

_______, 2026

WhiteHawk Income Corporation

2000 Market Street, Suite 910

Philadelphia, Pennsylvania 19103

RAYMOND JAMES & ASSOCIATES, INC.

STIFEL, NICOLAUS & COMPANY, INCORPORATED

As Representatives (as defined herein)

c/o Raymond James & Associates, Inc.

880 Carillon Parkway

St. Petersburg, FL 33716

c/o Stifel, Nicolaus & Company, Incorporated

787 Seventh Avenue, 11<sup>th</sup> Floor

New York, New York 10019

**Re: <u>WhiteHawk Income Corporation - Restriction on Stock Sales</u>**

Ladies and Gentlemen:

This letter agreement is delivered to you pursuant to the Underwriting Agreement (the "<u>Underwriting Agreement</u>") to be entered into by WhiteHawk Income Corporation, a Delaware corporation (the "<u>Company</u>"), as issuer, and Raymond James & Associates, Inc., and Stifel, Nicolaus & Company, Incorporated each as a representative of the Underwriters as named and defined therein (each a "<u>Representative</u>" and collectively, the "<u>Representatives</u>" or "<u>you</u>"). References herein to the Company shall include any successor entity resulting from the Reorganization Transactions (as defined in the Underwriting Agreement), including following any change of the Company's name to "WhiteHawk Minerals Corp."

Capitalized terms used but not defined herein have the respective meanings assigned to such terms in the Underwriting Agreement.

Upon the terms and subject to the conditions of the Underwriting Agreement, the Underwriters intend to effect a public offering of the Shares, as described in and contemplated by the Registration Statement (the "<u>Offering</u>").

The undersigned recognizes that it is in the best financial interests of the undersigned, as

Ex. A-1

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an officer/director/owner of stock, options, warrants or other securities of the Company that the Company complete the Offering.

The undersigned further recognizes that the Class A Common Stock and/or the Company's options, warrants or other securities (together, the "<u>Company Securities</u>") held by the undersigned are, or may be, subject to certain restrictions on transferability, including those imposed by United States federal securities laws. Notwithstanding these restrictions, the undersigned has agreed to enter into this letter agreement to further assure the Underwriters that the Company Securities of the undersigned, now held or hereafter acquired, will not enter the public market at a time that might impair the underwriting effort.

Therefore, as an inducement to the Underwriters to execute the Underwriting Agreement, the undersigned hereby acknowledges and agrees that the undersigned will not (i) offer, sell, contract to sell, pledge, grant any option to purchase or otherwise dispose of (collectively, a "<u>Disposition</u>") of any Company Securities, or any securities convertible into or exercisable or exchangeable for, or any rights to purchase or otherwise acquire, any Company Securities held by the undersigned or acquired by the undersigned after the date hereof, or that may be deemed to be beneficially owned by the undersigned (collectively, the "<u>Lock-Up Securities</u>"), pursuant to the Act and the Exchange Act, for a period of 180 days following the consummation of the Offering (the "<u>Lock-Up Period</u>"), without the prior written consent of each of the Representatives or (ii) exercise or seek to exercise or effectuate in any manner any rights of any nature that the undersigned has or may have hereafter to require the Company to register under the Act the Disposition of any of the Lock-Up Securities held by the undersigned, or to otherwise participate as a selling securityholder in any manner in any registration effected by the Company under the Act, including under the Registration Statement, during the Lock-Up Period. The foregoing restrictions are expressly agreed to preclude the undersigned from engaging in any hedging, collar (whether or not for any consideration) or other transaction that is designed to or reasonably expected to lead or result in a Disposition of Lock-Up Securities during the Lock-Up Period, even if such Lock-Up Securities would be disposed of by someone other than such holder. Such prohibited hedging or other transactions would include any short sale or any purchase, sale or grant of any right (including any put or call option or reversal or cancellation thereof) with respect to any Lock-Up Securities or with respect to any security (other than a broad-based market basket or index) that includes, relates to or derives any significant part of its value from Lock-Up Securities.

The foregoing paragraph shall not apply to (a) bona fide gifts, sales or other dispositions of shares of any class of the Company's capital stock, in each case that are made exclusively between and among the undersigned or members of the undersigned's family, or affiliates of the undersigned, including its partners (if a partnership) or members (if a limited liability company) or for bona fide estate planning purposes, including without limitation to charitable organizations or educational institutions; *provided* that it shall be a condition to any transfer pursuant to this clause (a) that (i) the transferee/donee agrees to be bound by the terms of this letter agreement (including, without limitation, the restrictions set forth in the preceding sentence) to the same extent as if the transferee/donee were a party hereto, (ii) each party (donor, donee, transferor or transferee) shall not be required by law (including without limitation the disclosure requirements of the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), and the

Ex. A-2

------

Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>")) to make, and shall agree to not voluntarily make, any filing or public announcement of the transfer or Disposition prior to the expiration of the 180-day period referred to above, and (iii) the undersigned notifies Raymond James & Associates, Inc. at least two business days prior to the proposed transfer or Disposition, (b) the exercise of share options or vesting or exercise of any other equity-based award granted pursuant to the Company's share option/incentive plans or any other plan or agreement described in the Registration Statement, Time of Sale Information and/or Prospectus, including any Class A Common Stock (i) withheld by the Company for the payment of taxes due upon such exercise or vesting or (ii) sold to satisfy any tax withholding obligations in connection with such vesting, settlement or exercise, including by means of a "sell to cover" or similar transaction; *provided*, that (x) no filing or public announcement by any party under the Exchange Act or otherwise shall be required or shall be voluntarily made in connection with such exercise or vesting and (y) the terms of this letter agreement shall apply to Lock-Up Securities issued upon such exercise or conversion, (c) the establishment or modification of any contract, instruction or plan that satisfies all of the requirements of Rule 10b5-1 (a "<u>Rule 10b5-1 Plan</u>") under the Exchange Act; *provided*, *however*, that no sales of Company Securities or securities convertible into, or exchangeable or exercisable for, Company Securities, shall be made pursuant to a Rule 10b5-1 Plan prior to the expiration of the Lock-Up Period (as the same may be extended pursuant to the provisions hereof); *provided further*, that the Company is not required to report the establishment of such Rule 10b5-1 Plan in any public report or filing with the Commission under the Exchange Act during the Lock-Up Period and does not otherwise voluntarily effect any such public filing or report regarding such Rule 10b5-1 Plan (other than the required disclosure on Form 10-Q or Form 10-K, as applicable, of the entrance into any trading plan during the relevant fiscal quarter, provided that such disclosure includes a statement to the effect that no transfers may be made pursuant to such trading plan during the Restricted Period), (d) transfers, distributions or the surrender of (as the case may be) the undersigned's Lock-Up Securities by operation of law, such as pursuant to a qualified domestic order, divorce settlement, divorce decree or separation agreement, [(e)] redemptions of shares of Class B Common Stock in accordance with the LP Agreement for shares of Class A Common Stock; *provided, however*, that no sales of Class A Common Stock received as a result therefrom shall be made prior to the expiration of the Lock-Up Period[; and (f) any demands or requests for, exercise any right with respect to, or take any action in preparation of, the registration by the Company under the Securities Act of the undersigned's Common Stock, *provided* that no transfer of the undersigned's Common Stock registered pursuant to the exercise of any such right and no registration statement shall be filed under the Securities Act with respect to any of the undersigned's Common Stock during the Lock-Up Period].<sup>1</sup>

In addition, nothing in this letter agreement shall prevent the transfer, conversion, reclassification or exchange of any Lock-Up Securities pursuant to the Reorganization Transactions as described in the Prospectus; provided that any Lock-Up Securities received in the Reorganization Transactions remain subject to the terms of this letter agreement.

It is understood that, if the Underwriting Agreement (other than the provisions thereof that survive termination) shall terminate or be terminated prior to payment for and delivery of the Shares, you will release the undersigned from the obligations under this letter agreement.

<sup>1</sup> To be included for Continuing Equity Owners who will be party to the RRA.

Ex. A-3

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In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer of Lock-Up Securities if such transfer would constitute a violation or breach of this letter agreement. This letter agreement shall be binding on the undersigned and the respective successors, heirs, personal representatives and assigns of the undersigned.

This letter agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to choice of law principles thereunder. The undersigned irrevocably submits to the non-exclusive jurisdiction of any New York state or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this letter agreement. To the fullest extent permitted by applicable law, the undersigned irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding in any such court has been brought in an inconvenient forum. In the event any action, suit or proceeding is instituted in connection with any dispute relating to this letter agreement or, the prevailing party shall be entitled to recover its reasonable attorneys' fees and costs, including those incurred on appeal, in addition to any other relief to which it may be entitled. For purposes of this Section, "prevailing party" means the party that substantially obtains or defeats the relief sought, whether by settlement, judgment or otherwise. TO THE EXTENT PERMITTED BY LAW, THE UNDERSIGNED VOLUNTARILY AND IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) RELATED TO OR ARISING OUT OF THIS LETTER AGREEMENT.

Ex. A-4

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Very truly yours,

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| | | | |
|:---|:---|:---|:---|
|  **IF AN INDIVIDUAL:** | **IF AN INDIVIDUAL:** | **IF AN ENTITY:** | **IF AN ENTITY:** |
|  By: |  |  |  |
|  | *(duly authorized signature)* | *(please print complete name of entity)* | *(please print complete name of entity)* |
|  Name: |  | By: |  |
|  | *(please print full name)* |  | *(duly authorized signature)* |
|  |  | Name: |  |
|  |  |  | *(please print full name)* |
|  Address: | Address: | Address: | Address: |

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Ex. A-5

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**EXHIBIT B** 

**Amended and Restated Charter and OpCo LP Agreement Lock-Up Provisions** 

***Amended and Restated Charter:***

Section 4.9 Restrictions on Transfer.

(a) No holder of any capital stock of the Corporation that acquired its shares thereof prior to the consummation of an underwritten initial public offering of Class A Common Stock (an "IPO," and each such holder an "Initial Stockholder") shall be permitted to, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase or otherwise dispose of (collectively, a "Disposition") any Class A Common Stock, or any securities convertible into or exercisable or exchangeable for, or any rights to purchase or otherwise acquire, which includes engaging in any hedging, collar (whether or not for any consideration) or other transaction that is designed to or reasonably expected to lead or result in a Disposition, held by such Initial Stockholder or acquired by such Initial Stockholder immediately after the consummation of an IPO, or that may be deemed to be beneficially owned by such Initial Stockholder (collectively, the "Lock-Up"), pursuant to the Securities Act and the Exchange Act, for a period of 365 days following the consummation of the IPO, or such shorter period as determined by the Board of Directors with respect to all Initial Stockholders or any Initial Stockholder, and with respect to all or any portion of the shares held by any such Initial Stockholder (the "Lock-Up Period"); provided that the Lock-Up Period shall not be less than 180 days without the prior written consent of the managing underwriter of such IPO. Each Initial Stockholder agrees to execute such agreement as may be reasonably requested by the managing underwriter of such IPO that is necessary to give further effect hereto; provided that in the event of any conflict or inconsistency between the terms of such separate agreement and this Section 4.9, the terms of such separate agreement shall control; provided further that no such agreement shall be required for the Lock-Up to take effect upon consummation of an IPO. Following the expiration of the Lock-Up Period, the Initial Stockholders may effect a Disposition of all or any portion of their Class A Common Stock, subject to compliance with applicable securities laws, policies of the Corporation, this Certificate of Incorporation, the bylaws of the Corporation (as amended and/or restated, the "Bylaws") and any other requirements imposed by the Corporation or the transfer agent and registrar with respect to the Class A Common Stock.

(b) Notwithstanding Section 4.9(a), the Lock-Up shall not apply to (i) bona fide gifts, sales or other dispositions of shares of any class of the Corporation's capital stock, in each case, that are made exclusively between and among an Initial Stockholder and members of the Initial Stockholder's family, or affiliates of the Initial Stockholder, including its partners (if a partnership) or members (if a limited liability company); provided that it shall be a condition to any transfer pursuant to this clause (i) that (A) the transferee/donee, through its subsequent ownership of such transferred shares of Class A Common Stock, is bound by the restrictions set forth in Section 4.9(a) to the same extent as the transferor/donor, (B) each party (donor, donee, transferor or transferee) shall not be required by law (including without limitation the disclosure requirements of the Securities Act and the Exchange Act) to make, and shall agree to not

Ex. B-1

------

voluntarily make, any filing or public announcement of the transfer or disposition prior to the expiration of the Lock-Up Period, and (C) the Initial Stockholder notifies the managing underwriter of such IPO at least two business days prior to the proposed transfer or disposition, (ii) any exercise of options or vesting or exercise of any other equity-based award, in each case, under the Corporation's equity incentive plan or any other plan or agreement described in the prospectus included in the registration statement on Form S-1 filed in connection with an IPO, including any Class A Common Stock withheld by the Corporation for the payment of taxes due upon such exercise or vesting; provided that (A) no filing or public announcement by any party under the Exchange Act or otherwise shall be required or shall be voluntarily made in connection with such exercise or vesting and (B) any Class A Common Stock received upon such exercise or vesting, following any applicable net settlement or net withholding, will also be subject to the Lock-Up; (iii) the establishment of any contract, instruction or plan that satisfies all of the requirements of Rule 10b5-1 (a "Rule 10b5-1 Plan") under the Exchange Act; provided, however, that no sales of Class A Common Stock or securities convertible into, or exchangeable or exercisable for, Class A Common Stock, shall be made pursuant to a Rule 10b5-1 Plan prior to the expiration of the Lock-Up Period; provided further, that the Corporation is not required to report the establishment of such Rule 10b5-1 Plan in any public report or filing with the U.S. Securities and Exchange Commission under the Exchange Act during the Lock-Up Period and does not otherwise voluntarily effect any such public filing or report regarding such Rule 10b5-1 Plan; and (iv) redemptions of shares of Class B Common Stock and Common Units in accordance with the LP Agreement for shares of Class A Common Stock; provided, however, that no sales of Class A Common Stock received as a result therefrom shall be made prior to the expiration of the Lock-Up Period.

(c) Unless the written approval of (i) the managing underwriter of such IPO is obtained with respect to a Disposition prior to the date that is 180 days following the consummation of an IPO and/or (ii) the Board of Directors is obtained with respect to a Disposition following the date that is prior to the date that is 365 days following the consummation of an IPO, such purported Disposition shall not be effective to transfer record, beneficial, legal or any other ownership of such Class A Common Stock, and the transferee shall not be entitled to any rights as a stockholder of the Corporation with respect to the Class A Common Stock purported to be purchased, acquired or transferred in the Disposition (including, without limitation, the right to vote or to receive dividends with respect thereto). Each such share of Class A Common Stock subject to the Lock-Up Period shall bear the following legend (or any substantially similar legend):

THE SHARES REPRESENTED HEREBY ARE SUBJECT TO A LOCK-UP PERIOD AS SET FORTH IN THE CERTIFICATE OF INCORPORATION, AS IT MAY BE AMENDED AND/OR RESTATED, OF WHITEHAWK MINERALS CORP.

***OpCo LP Agreement:***

Section 10.08 Lock-Up Restrictions.

(a) Notwithstanding the foregoing, no Continuing Equity Owner shall be permitted to, directly or

Ex. B-2

------

indirectly, (i) offer, sell, contract to sell, pledge, grant any option to purchase or otherwise dispose of (collectively, a "<u>Disposition</u>") any Units, or any securities convertible into or exercisable or exchangeable for, or any rights to purchase or otherwise acquire, which includes engaging in any hedging, collar (whether or not for any consideration) or other transaction that is designed to or reasonably expected to lead or result in a Disposition, any Units held by such Continuing Equity Owner or acquired by such Continuing Equity Owner immediately after the consummation of the Corporation's initial public offering, or that may be deemed to be beneficially owned by such Continuing Equity Owner (collectively, the "<u>Lock-Up</u>"), for a period of 365 days following the consummation of the Corporation's initial public offering, or such shorter period as determined by the Corporate Board with respect to all Continuing Equity Owners or any Continuing Equity Owner, and with respect to all or any portion of the Units held by any such Continuing Equity Owner (the "<u>Lock-Up Period</u>"); provided that the Lock-Up Period shall not be less than 180 days without the prior written consent of the managing underwriter of such initial public offering, or (ii) exercise or seek to exercise or effectuate in any manner any rights of any nature that the Continuing Equity Owner has or may have hereafter to require the Corporation to register under the Securities Act the Disposition of any of the Units, or any Class A Common Stock issuable upon the redemption of such Units pursuant to the Redemption Right, subject to the Lock-Up held by the Continuing Equity Owner, or to otherwise participate as a selling securityholder in any manner in any registration effected by the Corporation or the Partnership under the Securities Act during the Lock-Up Period. Each Continuing Equity Owner agrees to execute such agreement as may be reasonably requested by the managing underwriter of the Corporation's initial public offering that is necessary to give further effect hereto; provided that in the event of any conflict or inconsistency between the terms of such separate agreement and this Section 10.08, the terms of such separate agreement shall control. Following the expiration of the Lock-Up Period, the Continuing Equity Owners may effect a Disposition of all or any portion of their Units, subject to compliance with applicable securities laws, policies of the Corporation and the Partnership, the Amended and Restated Certificate of Incorporation of the Corporation, the Amended and Restated Bylaws of the Corporation, this Agreement, the Certificate and any other requirements imposed by the Corporation, the Partnership or the transfer agent and registrar with respect to the Units.

(b) Notwithstanding Section 10.08(a), the Lock-Up shall not apply to bona fide gifts, sales or other dispositions of any class of the Partnership's equity interests, in each case, that are made exclusively between and among the Continuing Equity Owner or members of the Continuing Equity Owner's family, or affiliates of the Continuing Equity Owner, including its partners (if a partnership) or members (if a limited liability company); provided that it shall be a condition to any transfer pursuant to this Section 10.08(b) that (A) the transferee/donee agrees to be bound by the restrictions set forth in Section 10.08(a) to the same extent as the transferor/donor, (B) each party (donor, donee, transferor or transferee) shall not be required by law (including without limitation the disclosure requirements of the Securities Act and the Exchange Act) to make, and shall agree to not voluntarily make, any filing or public announcement of the transfer or disposition prior to the expiration of the Lock-Up Period, and (C) the Continuing Equity Owner notifies the managing underwriter of the Corporation's initial public offering at least two Business Days prior to the proposed transfer or disposition.

Ex. B-3

------

(c) Unless the written approval of the managing underwriter of the Corporation's initial public offering is obtained with respect to a Disposition after the consummation of such initial public offering until the expiration of the Lock-Up Period, such purported Disposition shall not be effective to transfer record, beneficial, legal or any other ownership of such Units, and the transferee shall not be entitled to any rights as a holder of Units with respect to the Units purported to be purchased, acquired or transferred in the Disposition (including, without limitation, the right to vote or to receive dividends with respect thereto). Each such Unit subject to the Lock-Up shall bear the following legend (or any substantially similar legend):

THE UNITS REPRESENTED HEREBY ARE SUBJECT TO A LOCK-UP PERIOD AS SET FORTH IN THE AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF WHITEHAWK INCOME OPERATING PARTNERSHIP L.P.

Ex. B-4

## Exhibit 4.1

**Exhibit 4.1**![LOGO](g86452g94a01.jpg)

5; ZQ\|CERT#\|COY\|CLS\|RGSTRY\|ACCT#\|TRANSTYPE\|RUN#\|TRANS# . CLASS A COMMON STOCK PAR VALUE $0.0001 CLASS A COMMON STOCK WhiteHawk Minerals Corp. PO Box 43004, Providence RI 02940-3004 MR A SAMPLE DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4 Shares Certificate Number \*\*000000\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* \*\*\*000000\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* \*\*\*\*000000\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* \*\*\*\*\*000000\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* \*\*\*\*\*\*000000\*\*\*\*\*\*\*\*\*\*\*\*\*\* ZQ00000000 WhiteHawk Minerals Corp. INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE SEE REVERSE FOR CERTAIN DEFINITIONS \*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Alexander David Sample \*\*\*\* Mr. Sample \*\*\*\* Mr. Sample MR. SAMPLE & MRS. SAMPLE & MR. SAMPLE & MRS. SAMPLE THIS CERTIFIES THAT XXXXXX XX X CUSIP \*\*000000 \*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\* 000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\* 000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\* 000000\*\*Shares\*\*\*\*000000\*\* Sha res\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000 \*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*0 00000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares \*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\* Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*S hares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\*000000\*\*Shares\*\*\*\* \*\*\*ZERO HUNDRED THOUSAND ZERO HUNDRED AND ZERO\*\*\* is the owner of THIS CERTIFICATE IS TRANSFERABLE IN CITIES DESIGNATED BY THE TRANSFER AGENT, AVAILABLE ONLINE AT www.computershare.com FULLY-PAID AND NON-ASSESSABLE SHARES OF CLASS A COMMON STOCK OF WhiteHawk Minerals Corp. (hereinafter called the "Company"), transferable on the books of the Company in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. This Certificate and the shares represented hereby, are issued and shall be held subject to all of the provisions of the Certificate of Incorporation, as amended, and the By-Laws, as amended, of the Company (copies of which are on file with the Company and with the Transfer Agent), to all of which each holder, by acceptance hereof, assents. This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar. Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized officers. Certificate Numbers 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 Total Transaction CUSIP/IDENTIFIER XXXXXX XX X Holder ID XXXXXXXXXX Insurance Value 1,000,000.00 Number of Shares 123456 DTC 12345678 123456789012345 DATED COUNTERSIGNED AND REGISTERED: COMPUTERSHARE TRUST COMPANY, N.A.TRANSFER AGENT AND REGISTRAR, DD-MMM-YYYY Num/No. 1 2 3 4 5 6 FACSIMILE SIGNATURE TO COME WhiteHawk Minerals Corp. CORPORATE Denom. 1 2 3 4 5 6 President DELAWARE DATE Total 1 2 3 4 5 6 7 FACSIMILE SIGNATURE TO COME By Secretary AUTHORIZED SIGNATURE

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

WHITEHAWK MINERALS CORP.

THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO REQUESTS, A SUMMARY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OF THE COMPANY AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND RIGHTS, AND THE VARIATIONS IN RIGHTS, PREFERENCES AND LIMITATIONS DETERMINED FOR EACH SERIES, WHICH ARE FIXED BY THE CERTIFICATE OF INCORPORATION OF THE COMPANY, AS AMENDED, AND THE RESOLUTIONS OF THE BOARD OF DIRECTORS OF THE COMPANY, AND THE AUTHORITY OF THE BOARD OF DIRECTORS TO DETERMINE VARIATIONS FOR FUTURE SERIES. SUCH REQUEST MAY BE MADE TO THE OFFICE OF THE SECRETARY OF THE COMPANY OR TO THE TRANSFER AGENT. THE BOARD OF DIRECTORS MAY REQUIRE THE OWNER OF A LOST OR DESTROYED STOCK CERTIFICATE, OR HIS LEGAL REPRESENTATIVES, TO GIVE THE COMPANY A BOND TO INDEMNIFY IT AND ITS TRANSFER AGENTS AND REGISTRARS AGAINST ANY CLAIM THAT MAY BE MADE AGAINST THEM ON ACCOUNT OF THE ALLEGED LOSS OR DESTRUCTION OF ANY SUCH CERTIFICATE.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; <br> For US purposes the following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: | &nbsp;&nbsp;&nbsp;&nbsp; <br> For US purposes the following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: | &nbsp;&nbsp;&nbsp;&nbsp; <br> For US purposes the following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: | &nbsp;&nbsp;&nbsp;&nbsp; <br> For US purposes the following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: |
| &nbsp;&nbsp;&nbsp; TEN COM | - as tenants in common | UNIF GIFT MIN ACT | -…..…….........…….. Custodian ..............................................…… |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Cust) (Minor) |
| &nbsp;&nbsp;&nbsp; TEN ENT | - as tenants by the entireties |  | under Uniform Gifts to Minors Act ................................................ |
|  |  |  | (State) |
| &nbsp;&nbsp;&nbsp; JT TEN | - as joint tenants with right of survivorship | UNIF TRF MIN ACT | -……..............……… Custodian (until age.................................) |
|  | and not as tenants in common |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Cust) |
|  |  |  | ........................under Uniform Transfers to Minors Act ................... |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Minor) (State) |
| &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional abbreviations may also be used though not in the above list. | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional abbreviations may also be used though not in the above list. | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional abbreviations may also be used though not in the above list. | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional abbreviations may also be used though not in the above list. |

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PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE <br> For value received,<u> </u> hereby sell, assign and transfer unto    

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE)

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| | |
|:---|:---|
| | Shares |
|  of the Class A Common Stock represented by the within Certificate, and do hereby irrevocably constitute and appoint | Shares |
| | Attorney |
|  to transfer the said stock on the books of the within-named Company with full power of substitution in the premises. | Attorney |

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| | |
|:---|:---|
|  Dated:<u> </u> 20  | <br> Signature(s) Guaranteed: Medallion Guarantee Stamp<br> THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. |
| <br> Signature:  | <br> Signature(s) Guaranteed: Medallion Guarantee Stamp<br> THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. |
| <br> Signature:  | <br> Signature(s) Guaranteed: Medallion Guarantee Stamp<br> THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Notice: The signature to this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration or enlargement, or any change whatever. | <br> Signature(s) Guaranteed: Medallion Guarantee Stamp<br> THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. |

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| | | |
|:---|:---|:---|
|  ![LOGO](g86452g99t54.jpg)  | The IRS requires that the named transfer agent ("we") report the cost basis of certain shares or units acquired after January 1, 2011. If your shares or units are covered by the legislation, and you requested to sell or transfer the shares or units using a specific cost basis calculation method, then we have processed as you requested. If you did not specify a cost basis calculation method, then we have defaulted to the first in, first out (FIFO) method. Please consult your tax advisor if you need additional information about cost basis.<br>**If you do not keep in contact with the issuer or do not have any activity in your account for the time period specified by state law, your property may become subject to state unclaimed property laws and transferred to the appropriate state.** | ![LOGO](g86452g47u61.jpg) <br>|

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## Exhibit 5.1

**Exhibit 5.1** 

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| | | |
|:---|:---|:---|
|  | 811 Main Street, Suite 3700 | 811 Main Street, Suite 3700 |
|  | Houston, TX 77002 | Houston, TX 77002 |
|  | Tel: +1.713.546.5400 Fax: +1.713.546.5401 | Tel: +1.713.546.5400 Fax: +1.713.546.5401 |
|  | www.lw.com | www.lw.com |
| ![LOGO](g86452g0511021009777.jpg) | FIRM / AFFILIATE OFFICES | FIRM / AFFILIATE OFFICES |
| ![LOGO](g86452g0511021009777.jpg) | Austin | Milan |
|  | Beijing | Munich |
|  | Boston | New York |
|  | Brussels | Orange County |
|  | Chicago | Paris |
|  | Dubai | Riyadh |
|  | Düsseldorf | San Diego |
|  | Frankfurt | San Francisco |
|  | Hamburg | Seoul |
| May 26, 2026 | Hong Kong | Silicon Valley |
|  | Houston | Singapore |
|  | London | Tel Aviv |
| WhiteHawk Income Corporation | Los Angeles | Tokyo |
| 2000 Market Street, Suite 910 | Madrid | Washington, D.C. |

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Philadelphia, PA 19103

Re: Registration Statement No. 333-295743

7,963,750 shares of Class A common stock, par value $0.0001 per share

To the addressee set forth above:

We have acted as special counsel to WhiteHawk Income Corporation, a Delaware corporation (the "***Company***"), in connection with the proposed issuance of up to 7,963,750 shares of Class A common stock, $0.0001 par value per share (the "***Shares***"). The Shares are included in a registration statement on Form S-1 under the Securities Act of 1933, as amended (the "***Act***"), initially filed with the Securities and Exchange Commission (the "***Commission***") on May 11, 2026 (Registration No. 333-295743, as amended, the "***Registration Statement***"). The term "Shares" shall include any additional shares of common stock registered by the Company pursuant to Rule 462(b) under the Act in connection with the offering contemplated by the Registration Statement. This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or related Prospectus, other than as expressly stated herein with respect to the issue of the Shares.

As such counsel, we have examined such matters of fact and questions of law as we have considered appropriate for purposes of this letter. With your consent, we have relied upon certificates and other assurances of officers of the Company and others as to factual matters without having independently verified such factual matters. We are opining herein as to the General Corporation Law of the State of Delaware, and we express no opinion with respect to any other laws.

Subject to the foregoing and the other matters set forth herein, it is our opinion that, as of the date hereof, upon the proper filing of the amended and restated certificate of incorporation of the Company, substantially in the form most recently filed as an exhibit to the Registration Statement, with the Secretary of State of Delaware and when the Shares shall have been duly registered on the books of the transfer agent and registrar therefor in the name or on behalf of the purchasers and have been issued by the Company against payment therefor (not less than par value) in the circumstances contemplated by the form of underwriting agreement most recently filed as

------

**May 26, 2026** 

**Page 2**![LOGO](g86452g0511021011126.jpg)

an exhibit to the Registration Statement, the issue and sale of the Shares will have been duly authorized by all necessary corporate action of the Company, and the Shares will be validly issued, fully paid and nonassessable. In rendering the foregoing opinion, we have assumed that the Company will comply with all applicable notice requirements regarding uncertificated shares provided in the General Corporation Law of the State of Delaware.

This opinion is for your benefit in connection with the Registration Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of the Act. We consent to your filing this opinion as an exhibit to the Registration Statement and to the reference to our firm in the Prospectus under the heading "Legal Matters." We further consent to the incorporation by reference of this letter and consent into any registration statement filed pursuant to Rule 462(b) with respect to the Shares. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.

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| |
|:---|
|  Sincerely, |
|  /s/ Latham & Watkins LLP |

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## Exhibit 10.13

**Exhibit 10.13** 

**AMENDED AND RESTATED CREDIT AGREEMENT** 

**DATED AS OF MAY 25, 2026** 

**AMONG** 

**WHITEHAWK INCOME CORPORATION** 

**AS PARENT,** 

**WHITEHAWK INCOME OPERATING PARTNERSHIP L.P.** 

**AS BORROWER,** 

**CAPITAL ONE, NATIONAL ASSOCIATION,** 

**AS ADMINISTRATIVE AGENT AND** 

**ISSUING BANK** 

**AND** 

**THE LENDERS PARTY HERETO** 

**CAPITAL ONE, NATIONAL ASSOCIATION,** 

**AS JOINT LEAD ARRANGER AND SOLE BOOKRUNNER** 

**U.S. BANK NATIONAL ASSOCIATION,** 

**AS JOINT LEAD ARRANGER** 

------

**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | **ARTICLE I** |  |
|  | **DEFINITIONS AND ACCOUNTING MATTERS** |  |
|  Section 1.01 | Terms Defined Above | 1 |
|  Section 1.02 | Certain Defined Terms | 1 |
|  Section 1.03 | Types of Loans and Borrowings | 48 |
|  Section 1.04 | Terms Generally; Rules of Construction | 48 |
|  Section 1.05 | Accounting Terms and Determinations; GAAP | 48 |
|  Section 1.06 | Rates | 49 |
|  Section 1.07 | Divisions | 49 |
|  | **ARTICLE II** |  |
|  | **THE CREDITS** |  |
|  Section 2.01 | Commitments | 49 |
|  Section 2.02 | Loans and Borrowings | 49 |
|  Section 2.03 | Requests for Borrowings | 51 |
|  Section 2.04 | Interest Elections | 52 |
|  Section 2.05 | Funding of Borrowings | 53 |
|  Section 2.06 | Termination and Reduction of Aggregate Maximum Credit Amounts; Increase, Reduction and Termination of Aggregate Elected Commitment Amounts | 54 |
|  Section 2.07 | Borrowing Base | 58 |
|  Section 2.08 | Letters of Credit | 61 |
|  Section 2.09 | Defaulting Lenders | 68 |
|  | **ARTICLE III** |  |
|  | **PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES** |  |
|  Section 3.01 | Repayment of Loans | 69 |
|  Section 3.02 | Interest | 69 |
|  Section 3.03 | Inability to Determine Rates; Effect of Benchmark Transition Event | 70 |
|  Section 3.04 | Prepayments | 73 |
|  Section 3.05 | Fees | 75 |
|  | **ARTICLE IV** |  |
|  | **PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS** |  |
|  Section 4.01 | Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 77 |
|  Section 4.02 | Presumption of Payment by the Borrower | 78 |
|  Section 4.03 | Certain Deductions by the Administrative Agent | 78 |
|  Section 4.04 | Disposition of Proceeds | 78 |
|  | **ARTICLE V** |  |
|  | **INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY** |  |
|  Section 5.01 | Increased Costs | 79 |

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ii

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---

| | | |
|:---|:---|:---|
|  Section 5.02 | Break Funding Payments | 80 |
|  Section 5.03 | Taxes | 80 |
|  Section 5.04 | Mitigation Obligations; Replacement of Lenders | 84 |
|  | **ARTICLE VI** |  |
|  | **CONDITIONS PRECEDENT** |  |
|  Section 6.01 | Signing Date | 85 |
|  Section 6.02 | Effective Date | 87 |
|  Section 6.03 | Each Credit Event | 92 |
|  | **ARTICLE VII** |  |
|  | **REPRESENTATIONS AND WARRANTIES** |  |
|  Section 7.01 | Organization; Powers | 93 |
|  Section 7.02 | Authority; Enforceability | 93 |
|  Section 7.03 | Approvals; No Conflicts | 93 |
|  Section 7.04 | Financial Condition; No Material Adverse Effect | 94 |
|  Section 7.05 | Litigation | 94 |
|  Section 7.06 | Environmental Matters | 94 |
|  Section 7.07 | Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency | 96 |
|  Section 7.08 | Investment Company Act | 96 |
|  Section 7.09 | Taxes | 96 |
|  Section 7.10 | ERISA | 96 |
|  Section 7.11 | Disclosure; No Material Misstatements | 97 |
|  Section 7.12 | Insurance | 98 |
|  Section 7.13 | Subsidiaries | 98 |
|  Section 7.14 | Properties; Defensible Title | 98 |
|  Section 7.15 | Maintenance of Properties | 99 |
|  Section 7.16 | Gas Imbalances; Prepayments | 100 |
|  Section 7.17 | Marketing of Production | 100 |
|  Section 7.18 | Swap Agreements and Qualified ECP Guarantor | 101 |
|  Section 7.19 | Use of Loans and Letters of Credit | 101 |
|  Section 7.20 | Solvency | 101 |
|  Section 7.21 | Anti-Corruption Laws, Sanctions and Patriot Act | 101 |
|  Section 7.22 | Affected Financial Institution | 101 |
|  Section 7.23 | Security Instruments | 101 |
|  Section 7.24 | Senior Indebtedness Status | 102 |
|  Section 7.25 | Beneficial Ownership | 102 |
|  Section 7.26 | Outbound Investment Rules | 102 |
|  Section 7.27 | No Operations | 102 |
|  | **ARTICLE VIII** |  |
|  | **AFFIRMATIVE COVENANTS** |  |
|  Section 8.01 | Financial Statements; Other Information | 102 |
|  Section 8.02 | Notices of Material Events | 107 |
|  Section 8.03 | Existence; Conduct of Business | 108 |
|  Section 8.04 | Payment of Taxes | 108 |

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iii

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| | | |
|:---|:---|:---|
|  Section 8.05 | Operation and Maintenance of Properties | 108 |
|  Section 8.06 | Insurance | 109 |
|  Section 8.07 | Books and Records; Inspection Rights | 109 |
|  Section 8.08 | Compliance with Laws | 109 |
|  Section 8.09 | Environmental Matters | 109 |
|  Section 8.10 | Further Assurances | 111 |
|  Section 8.11 | Reserve Reports | 111 |
|  Section 8.12 | Title Information | 112 |
|  Section 8.13 | Additional Collateral; Additional Guarantors | 113 |
|  Section 8.14 | ERISA Compliance | 115 |
|  Section 8.15 | Commodity Exchange Act Keepwell Provisions | 115 |
|  Section 8.16 | Deposit Accounts, Commodity Accounts, and Securities Accounts | 116 |
|  Section 8.17 | Marketing Activities | 116 |
|  Section 8.18 | Sanctions | 116 |
|  Section 8.19 | Unrestricted Subsidiaries | 117 |
|  Section 8.20 | Minimum Hedging | 117 |
|  Section 8.21 | Depositary Arrangements | 118 |
|  Section 8.22 | Reserved | 118 |
|  Section 8.23 | More Favorable Terms | 118 |
|  | **ARTICLE IX** |  |
|  | **<u>NEGATIVE COVENANTS</u>** |  |
|  Section 9.01 | Financial Covenants | 120 |
|  Section 9.02 | Debt | 121 |
|  Section 9.03 | Liens | 123 |
|  Section 9.04 | Dividends and Distributions and Payments in Respect of Second Lien Notes and Permitted Senior Notes; Amendments to Second Lien Note Documents and Senior Note Documents | 124 |
|  Section 9.05 | Investments, Loans and Advances | 126 |
|  Section 9.06 | Nature of Business; No Foreign Subsidiaries or International Operations | 128 |
|  Section 9.07 | Proceeds of Loans | 128 |
|  Section 9.08 | Mergers, Etc. | 128 |
|  Section 9.09 | Sale of Properties and Termination of Swap Agreements | 129 |
|  Section 9.10 | Environmental Matters | 131 |
|  Section 9.11 | Transactions with Affiliates | 131 |
|  Section 9.12 | ERISA Compliance | 132 |
|  Section 9.13 | Negative Pledge Agreements; Dividend Restrictions | 132 |
|  Section 9.14 | Swap Agreements | 133 |
|  Section 9.15 | Designation and Conversion of Restricted and Unrestricted Subsidiaries | 134 |
|  Section 9.16 | Limitation on Changes in Fiscal Periods | 135 |
|  Section 9.17 | Amendments to Organizational Documents and Citadel Permitted Existing Trade Documents | 135 |
|  Section 9.18 | Outbound Investment Rules | 136 |
|  Section 9.19 | Passive Holding Company | 136 |

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iv

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| | | |
|:---|:---|:---|
|  | **ARTICLE X** |  |
|  | **EVENTS OF DEFAULT; REMEDIES** |  |
|  Section 10.01 | Events of Default | 137 |
|  Section 10.02 | Remedies | 140 |
|  | **ARTICLE XI** |  |
|  | **THE AGENTS** |  |
|  Section 11.01 | Appointment; Powers | 142 |
|  Section 11.02 | Duties and Obligations of Administrative Agent | 142 |
|  Section 11.03 | Action by Administrative Agent | 143 |
|  Section 11.04 | Reliance by Administrative Agent | 143 |
|  Section 11.05 | Subagents | 144 |
|  Section 11.06 | Resignation of Administrative Agent | 144 |
|  Section 11.07 | Agents as Lenders | 144 |
|  Section 11.08 | No Reliance | 144 |
|  Section 11.09 | Administrative Agent May File Proofs of Claim | 145 |
|  Section 11.10 | Authority of Administrative Agent to Release Collateral, Liens and Guarantors | 146 |
|  Section 11.11 | The Arrangers and the Agents | 147 |
|  Section 11.12 | Certain ERISA Matters | 147 |
|  Section 11.13 | Credit Bidding | 149 |
|  Section 11.14 | Erroneous Payments | 150 |
|  | **ARTICLE XII** |  |
|  | **MISCELLANEOUS** |  |
|  Section 12.01 | Notices | 152 |
|  Section 12.02 | Waivers; Amendments | 154 |
|  Section 12.03 | Expenses, Indemnity; Damage Waiver | 156 |
|  Section 12.04 | Successors and Assigns | 159 |
|  Section 12.05 | Survival; Revival; Reinstatement | 165 |
|  Section 12.06 | Counterparts; Integration; Effectiveness | 165 |
|  Section 12.07 | Severability | 167 |
|  Section 12.08 | Right of Setoff | 167 |
|  Section 12.09 | Governing Law; Jurisdiction; Consent to Service of Process | 167 |
|  Section 12.10 | Headings | 168 |
|  Section 12.11 | Non-Public Information; Confidentiality | 168 |
|  Section 12.12 | Interest Rate Limitation | 170 |
|  Section 12.13 | Exculpation Provisions | 171 |
|  Section 12.14 | Collateral Matters; Swap Agreements; Action by Secured Parties | 172 |
|  Section 12.15 | No Third Party Beneficiaries | 172 |
|  Section 12.16 | USA Patriot Act Notice; Anti-Money Laundering Laws | 172 |
|  Section 12.17 | No Advisory or Fiduciary Responsibility | 172 |
|  Section 12.18 | Acknowledgement and Consent to Bail-In of Affected Financial Institution | 173 |
|  Section 12.19 | Acknowledgement Regarding Any Supported QFCs | 173 |
|  Section 12.20 | Intercreditor Agreement | 174 |
|  Section 12.21 | Amendment and Restatement of Existing Credit Agreement | 175 |

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**<u>ANNEXES, EXHIBITS AND SCHEDULES</u>** 

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| | |
|:---|:---|
| Annex I | List of Maximum Credit Amounts and Elected Commitments |
| Exhibit A | Form of Note |
| Exhibit B | Form of Borrowing Request |
| Exhibit C | Form of Interest Election Request |
| Exhibit D | Form of Compliance Certificate |
| Exhibit E | [Reserved] |
| Exhibit F | [Reserved] |
| Exhibit G | Security Instruments as of the Effective Date |
| Exhibit H | Form of Assignment and Assumption |
| Exhibit I | Form of Elected Commitment Increase Certificate |
| Exhibit J | Additional Lender Certificate |
| Exhibit K-1 | Form of U.S. Tax Compliance Certificate (Foreign Lenders; not partnerships) |
| Exhibit K-2 | Form of U.S. Tax Compliance Certificate (Foreign Participants; not partnerships) |
| Exhibit K-3 | Form of U.S. Tax Compliance Certificate (Foreign Participants; partnerships) |
| Exhibit K-4 | Form of U.S. Tax Compliance Certificate (Foreign Lenders; partnerships) |
| Exhibit L | [Reserved] |
| Exhibit M | Form of Solvency Certificate |
| Exhibit N | Form of Reserve Report Certificate |
| Schedule 1.02 | Citadel Permitted Existing Confirmations |
| Schedule 7.05 | Litigation |
| Schedule 7.13 | Subsidiaries |
| Schedule 7.16 | Gas Imbalances |
| Schedule 7.17 | Marketing Contracts |
| Schedule 7.18 | Citadel Permitted Existing Trades |
| Schedule 9.02 | Existing Debt |
|  Schedule 9.05 | Investments |

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**THIS AMENDED AND RESTATED CREDIT AGREEMENT** dated as of May 25, 2026, is among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"); WhiteHawk Income Corporation, a Delaware corporation (the "<u>Parent</u>"); WhiteHawk Income OP GP LLC, a Delaware limited liability company, in its capacity as the general partner of the Borrower (the "<u>General Partner</u>"); each of the Lenders from time to time party hereto; and Capital One, National Association, as administrative agent and collateral agent for the Lenders (in such capacity, together with its successors in such capacity, the "<u>Administrative Agent</u>") and as the Issuing Bank.

**<u>R E C I T A L S</u>**

(A) The Borrower, as borrower, the Parent, the General Partner, the Administrative Agent, as administrative
agent, the Issuing Bank, and the lenders party thereto are parties to that certain Credit Agreement, dated as of May 10, 2026 (the " <u>Existing Credit Agreement</u> ").

(B) The Borrower has requested that the Lenders and the Issuing Bank provide certain loans to and extensions of
credit on behalf of the Borrower.

(C) The Lenders and the Issuing Bank have agreed to make such loans and extensions of credit subject to the
terms and conditions of this Agreement.

(D) It is the intent of the parties hereto that this Agreement shall not constitute a novation of the
obligations and liabilities existing under the Existing Credit Agreement and that this Agreement shall amend and restate the Existing Credit Agreement in its entirety.

(E) In consideration of the mutual covenants and agreements herein contained and of the loans, extensions of
credit and commitments hereinafter referred to, the parties hereto agree as follows:

**ARTICLE I** 

**DEFINITIONS AND ACCOUNTING MATTERS** 

**Section 1.01 <u>Terms Defined Above</u>**. As used in this Agreement, each term defined above has the meaning indicated above.

**Section 1.02 <u>Certain Defined Terms</u>**. As used in this Agreement, the following terms have the meanings specified below:

"<u>ABR</u>", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

"<u>Acquired EBITDAX</u>" shall mean, with respect to any Acquired Entity or Business with an acquisition price in excess of $1,000,000 or any Converted Restricted Subsidiary with a fair market value (as determined by the Borrower in good faith) in excess of $1,000,000 for any period, the amount for such period of EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary (determined as if references to the Borrower and the Restricted Subsidiaries or Consolidated Restricted Subsidiaries in the definition of EBITDAX (and in the component

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definitions used therein) were references to such Acquired Entity or Business and its Subsidiaries or to such Converted Restricted Subsidiary and its Subsidiaries), as applicable, all as determined on a consolidated basis for such Acquired Entity or Business or Converted Restricted Subsidiary, as applicable; *provided* that if (a) the acquisition consideration of the Acquired Entity or Business, or the fair market value of the Converted Restricted Subsidiary exceeds $30,000,000 (each, a "<u>Material Acquisition</u>"), (b) the Borrower shall have delivered to the Administrative Agent a certificate of a Responsible Officer of the Borrower setting forth the proposed Acquired EBITDAX for such Acquired Entity or Business or Converted Restricted Subsidiary, as applicable, and attaching thereto reasonably detailed calculations of Acquired EBITDAX for such Acquired Entity or Business or Converted Restricted Subsidiary, as applicable, and such other information as the Administrative Agent shall reasonably request, which shall, in each case, be in form and substance reasonably satisfactory to the Administrative Agent; and (c) the Administrative Agent shall have approved of (such approval not to be unreasonably withheld), in writing, after delivery by the Borrower of the certificate described in the foregoing clause (b) of the Acquired EBITDAX Acquired Entity or Business or Converted Restricted Subsidiary, as applicable, then solely for the purpose of calculating the Consolidated Net Leverage Ratio hereunder for any date on or after such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted, (i) for the fiscal quarter in which such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted, Acquired EBITDAX shall be calculated by multiplying EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for the most recent fiscal quarter by 4, (ii) for the fiscal quarter in which such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted and the immediately following fiscal quarter, Acquired EBITDAX shall be calculated by multiplying EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for the two most recent fiscal quarters by 2, (iii) for the fiscal quarter in which such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted and the two immediately following fiscal quarters, Acquired EBITDAX shall be calculated by multiplying EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for the three most recent fiscal quarters by 4/3 and (iv) thereafter, Acquired EBITDAX of such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary shall be EBITDAX for the four most recent fiscal quarters.

"<u>Acquired Entity or Business</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Additional Lender</u>" has the meaning set forth in <u>Section</u> <u>2.06(c)(i)</u>.

"<u>Additional Lender Certificate</u>" has the meaning set forth in <u>Section</u> <u>2.06(c)(ii)(F)</u>.

"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form supplied by the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

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"<u>Agents</u>" means, collectively, the Administrative Agent and any syndication or documentation agent hereunder from time to time; and "<u>Agent</u>" shall mean any of them individually, as the context requires.

"<u>Aggregate Elected Commitment Amounts</u>" means, at any time, an amount equal to the sum of the Elected Commitments of the Lenders, as the same may be increased, reduced or terminated pursuant to <u>Section</u> <u>2.06(c)</u>. As of the Effective Date, the Aggregate Elected Commitment Amounts is $150,000,000.

"<u>Aggregate Maximum Credit Amounts</u>" means, at any time, an amount equal to the sum of the Maximum Credit Amounts, as the same may be reduced or terminated pursuant to <u>Section</u> <u>2.06</u>. As of the Effective Date, the Aggregate Maximum Credit Amounts are $500,000,000.

"<u>Agreement</u>" means this Amended and Restated Credit Agreement, as the same may from time to time be amended, restated, amended and restated, supplemented or otherwise modified.

"<u>Alternate Base Rate</u>" means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day *plus* <sup>1</sup>⁄<sub>2</sub> of 1% and (c) Term SOFR for a one month Interest Period beginning on such day (or if such day is not a Business Day, the immediately preceding Business Day) *plus* 1.0% (*provided* that clause (c) shall not be applicable during any period in which Term SOFR is unavailable or unascertainable). Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Rate or Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate or Term SOFR, respectively. Notwithstanding the foregoing, in no event shall the Alternate Base Rate be less than 1.00%.

"<u>Annualized EBITDAX</u>" means, for the purposes of calculating the Consolidated Net Leverage Ratio, (i) for the first fiscal quarter ending after the Effective Date, EBITDAX shall be calculated by multiplying EBITDAX for such fiscal quarter by 4, (ii) for the first two fiscal quarters ending after the Effective Date, EBITDAX shall be calculated by multiplying EBITDAX for such two fiscal quarters by 2 and (iii) for the first three fiscal quarters ending after the Effective Date, EBITDAX shall be calculated by multiplying EBITDAX for such three fiscal quarters by 4/3; *provided* that for the fiscal quarters identified in clauses (i) through (iii) hereof, Acquired EBITDAX (other than as set forth in the proviso to the definition of Acquired EBITDAX) and Disposed EBITDAX shall, be included in the calculation of EBITDAX before giving effect to the annualization set forth herein, without duplication of any annualization calculation applied pursuant to the definition of Acquired EBITDAX.

"<u>Anti-Corruption Laws</u>" means all laws, rules, and regulations of any jurisdiction applicable to the Parent, the General Partner, the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption, including the U.S. Foreign Corrupt Practices Act, as amended.

"<u>Anti-Money Laundering Laws</u>" means any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules related to terrorism financing or money laundering, including any applicable provision of The Currency and Foreign Transactions

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Reporting Act (also known as the "Bank Secrecy Act," 31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959), as amended by the Patriot Act.

"<u>Applicable Margin</u>" means, for any day, with respect to any ABR Loan or SOFR Loan, or with respect to the commitment fee rate (the "<u>Commitment Fee Rate</u>"), as the case may be, the rate per annum set forth in the Borrowing Base Utilization Grid below based upon the Utilization Percentage then in effect:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Borrowing Base Utilization Grid** | **Borrowing Base Utilization Grid** | **Borrowing Base Utilization Grid** | **Borrowing Base Utilization Grid** | **Borrowing Base Utilization Grid** | **Borrowing Base Utilization Grid** |
| Utilization Percentage | > 25% | >25% but ≤<br>50% | > 50% but ≤<br>75% | > 75% but ≤<br>90% | > 90% |
|  SOFR Loans | 2.50% | 2.75% | 3.00% | 3.25% | 3.50% |
|  ABR Loans | 1.50% | 1.75% | 2.00% | 2.25% | 2.50% |
|  Commitment Fee Rate | 0.375% | 0.375% | 0.50% | 0.50% | 0.50% |

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Each change in the Applicable Margin and the Commitment Fee Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change.

"<u>Applicable Percentage</u>" means, with respect to any Lender at any time, the percentage of the Aggregate Maximum Credit Amounts represented by such Lender's Maximum Credit Amount; *provided* that in the case of <u>Section</u> <u>2.09</u> when a Defaulting Lender shall exist, "Applicable Percentage" as used in such <u>Section</u> <u>2.09</u> shall mean the percentage of the Aggregate Maximum Credit Amounts (disregarding any Defaulting Lender's Maximum Credit Amounts) represented by such Lender's Maximum Credit Amount; *provided further* that if the Commitments have terminated or expired, each Lender's "Applicable Percentage" shall be determined based upon the Commitments most recently in effect.

"<u>Approved Counterparty</u>" means (a) any Person who, at the time of entering into a Swap Agreement, is a Lender or an Affiliate of a Lender and (b) any other Person (or the credit support provider of such Person who guarantees all obligations of such Person under such Swap Agreement) who, at the time of entering into a Swap Agreement, has a long term senior unsecured debt rating of A-/A3 by S&P or Moody's (or their equivalent) or higher.

"<u>Approved Fund</u>" means any Person (other than a natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person)) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"<u>Approved Petroleum Engineers</u>" means (a) Netherland, Sewell & Associates, Inc., (b) DeGolyer and MacNaughton, (c) Cawley Gillespie and Associates, Inc., (d) Ryder Scott

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Company, L.P., (e) Wright & Company, Inc. or (f) any other regionally or nationally recognized independent petroleum engineering firms reasonably acceptable to the Administrative Agent.

"<u>Arranger</u>" means each of (a) Capital One, National Association, in its capacity as joint lead arranger and sole bookrunner hereunder, and (b) U.S. Bank National Association, in its capacity as joint lead arranger hereunder.

"<u>ASC</u>" means the Financial Accounting Standards Board Accounting Standards Codification, as in effect from time to time.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by <u>Section</u> <u>12.04(b)</u>), and accepted by the Administrative Agent, in the form of <u>Exhibit</u> <u>H</u> or any other form approved by the Administrative Agent.

"<u>Availability Period</u>" means the period from and including the Effective Date to but excluding the Termination Date.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (a) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (b) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to <u>Section</u> <u>3.03(c)(iv)</u>.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Bank Price Deck</u>" means the Administrative Agent's most recent internal price deck (or such prior internal price deck as specified herein) on a forward curve basis for each of oil, natural gas and other Hydrocarbons, as applicable.

"<u>Bankruptcy Code</u>" means the United States Bankruptcy Code, Title 11 U.S.C.

"<u>Benchmark</u>" means, initially, the Term SOFR Reference Rate; *provided* that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the

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extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Section</u> <u>3.03(c)(i)</u>.

"<u>Benchmark Replacement</u>" means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities and (b) the related Benchmark Replacement Adjustment; *provided* that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Available Tenor, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities.

"<u>Benchmark Replacement Date</u>" means the earlier to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; *provided* that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

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"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Start Date</u>" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>3.03(c)(i)</u> and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>3.03(c)(i)</u>.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially similar

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in form and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

"<u>Board</u>" means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

"<u>Borrowing</u>" means Loans of the same Type, made, converted or continued on the same date and, in the case of SOFR Loans, as to which a single Interest Period is in effect.

"<u>Borrowing Base</u>" means at any time an amount equal to the amount determined in accordance with <u>Section</u> <u>2.07</u>, as the same may be adjusted from time to time pursuant to <u>Section</u> <u>2.07(e)</u>, <u>Section</u> <u>2.07(f)</u> or <u>Section</u> <u>8.12(c)</u> or otherwise pursuant to this Agreement.

"<u>Borrowing Base Deficiency</u>" occurs if at any time (a) the Total Revolving Credit Exposures exceeds (b) the Borrowing Base then in effect.

"<u>Borrowing Base Properties</u>" means the Proved Oil and Gas Properties of the Borrower and its Restricted Subsidiaries included in the most recently delivered Reserve Report hereunder.

"<u>Borrowing Base Value</u>" means, (a) with respect to any Borrowing Base Property, the value the Administrative Agent attributed to such Borrowing Base Property in connection with the most recent determination of the Borrowing Base hereunder (which Borrowing Base has been approved by the Required Lenders) and (b) with respect to any Swap Agreement in respect of commodities, the Swap PV of such Swap Agreement.

"<u>Borrowing Request</u>" means a request by the Borrower for a Borrowing in accordance with <u>Section</u> <u>2.03</u>.

"<u>Business Day</u>" means any day that (a) is not a Saturday, Sunday or other day on which the NYFRB is closed and (b) is not a day on which commercial banks in Houston, Texas are closed.

"<u>Capital Leases</u>" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as capital leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder; *provided* that for all purposes hereunder the amount of obligations under any Capital Lease shall be the amount thereof accounted for as a liability on the balance sheet of such Person in accordance with GAAP; *provided*, *further*, that for purposes of calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat leases in a manner consistent with its treatment under GAAP as of the Reference Date, notwithstanding any modifications or interpretative changes thereto that may occur. For the avoidance of doubt, any lease that would be characterized as an operating lease in

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accordance with GAAP on the Reference Date (whether or not such operating lease was in effect on such date) shall continue to be accounted for as an operating lease (and not as a Capital Lease) for purposes of this Agreement regardless of any change in GAAP following the Reference Date that would otherwise require such lease to be re-characterized (on a prospective or retroactive basis or otherwise) as a Capital Lease.

"<u>Cash Collateralize</u>" means, to pledge and deposit with or deliver to the Administrative Agent (in a manner reasonably satisfactory to the Administrative Agent, which may require such deposit to be made into a controlled account), for the benefit of any Issuing Bank or the Lenders, as collateral for LC Exposure or obligations of the Lenders to fund participations in respect of LC Exposure, cash or deposit account balances or, if the Administrative Agent and each Issuing Bank shall agree, in their sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and each Issuing Bank. "<u>Cash Collateral</u>" shall have a meaning correlative to the foregoing and shall include the proceeds of such Cash Collateral and other credit support.

"<u>Cash Management Agreement</u>" means any agreement to provide cash management services, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management services.

"<u>Cash Equivalents</u>" means: (a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and credit of the United States having maturities of not more than twenty four (24) months from the date of acquisition; *provided* that, for the avoidance of doubt, treasury securities issued by the United States Government or any agency thereof shall be deemed to be Cash Equivalents for purposes of this clause (a); (b) certificates of deposit, time deposits, or bankers' acceptances having in each case a tenor of not more than twelve (12) months from the date of acquisition issued by any Lender or any U.S. commercial bank or any branch or agency of a non-U.S. commercial bank licensed to conduct business in the U.S. having combined capital and surplus of not less than Five Hundred Million Dollars ($500,000,000); (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody's at the time of acquisition, and in either case having a tenor of not more than twelve (12) months; (d) Investments, classified in accordance with GAAP as current assets of the Borrower or any of its Restricted Subsidiaries, in money market investment programs registered under the Investment Company Act of 1940, which are administered by financial institutions that have the highest rating assigned at that time from either Moody's or S&P, and the portfolios of which are limited solely to Investments of the character, quality and maturity described in clauses (a), (b) and (c) of this definition; (e) repurchase obligations with a term of not more than one-hundred eighty (180) days for underlying securities of the types described in clauses (a) and (b) entered into with any financial institution or recognized securities dealer meeting the qualifications specified in clause (b) above; and (f) deposits in money market funds and investments investing at least 95% in investments described in clauses (a), (b), (c), (d) and (e) above.

"<u>Cash Receipts</u>" means all cash received by or on behalf of the Borrower or any Restricted Subsidiary, including without limitation: (a) amounts payable under or in connection with any Oil and Gas Properties; (b) cash representing operating revenue earned or to be earned by the Borrower or any Restricted Subsidiary; (c) proceeds from Loans; and (d) any other cash received by or on behalf of the Borrower or any Restricted Subsidiary from whatever source (including amounts

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received in respect of the Liquidation of any Swap Agreement and amounts received in respect of any disposition of Property).

"<u>Casualty Event</u>" means, with respect to any Property, (a) any damage to, destruction of, or other casualty or loss involving, any property or asset or (b) any seizure, condemnation, confiscation or taking under the power of eminent domain of, or any requisition of title or use of, or relating to, or any similar event in respect of, any property or asset.

"<u>CERCLA</u>" has the meaning set forth in the definition of "<u>Environmental Laws</u>".

"<u>Change in Control</u>" means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the Signing Date) (directly or indirectly, including through one or more holding companies), other than the Permitted Holders, of Equity Interests representing more than thirty-five percent (35%) of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent (including, for the avoidance of doubt, the Class A common stock and Class B common stock issued by the Parent), (b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Parent by Persons who were neither (i) directors of the Parent on the Effective Date or nominated, appointed or approved for consideration by shareholders for election by the board of directors of the Parent or (ii) appointed by directors so nominated, appointed or approved, (c) the Parent ceases to directly own 65% of the economic interests represented by the issued and outstanding Equity Interests of the Borrower, (d) the Parent ceases to Control the General Partner and the Borrower, (e) the Parent at any time ceases to hold of record and have beneficial ownership of 100% of the aggregate ordinary voting power and 100% of the economic interests represented by the issued and outstanding Equity Interests of the General Partner, (f) the General Partner at any time ceases to directly own 100% of the general partner interests of the Borrower or ceases to be the sole general partner of the Borrower, (g) any Guarantor ceases to be a Wholly-Owned Subsidiary of the Borrower other than as a result of a transaction permitted under <u>Section</u> <u>9.08</u> or <u>Section</u> <u>9.09</u>, (h) the occurrence of a "Change in Control" (as defined in the Second Lien Note Purchase Agreement), or (i) the occurrence of a "change of control" or "change in control" under the definitive documentation governing any debt for borrowed money constituting Material Debt.

"<u>Change in Law</u>" means (a) the adoption or implementation of any law, rule or regulation after the Signing Date, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the Signing Date or (c) compliance by any Lender or the Issuing Bank (or, for purposes of <u>Section</u> <u>5.01(b)</u>, by any lending office of such Lender or by such Lender's or the Issuing Bank's holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the Signing Date; *provided*, *however*, for the purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, guidelines or directives in connection therewith or promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision or the United States or foreign regulatory authorities, in each case, pursuant to Basel III, are deemed to have gone into effect and to have been adopted and implemented after the Signing Date.

"<u>Citadel</u>" means Citadel Energy Marketing LLC, a Delaware limited liability company.

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"<u>Citadel Permitted Existing Confirmations</u>" means the confirmations between Citadel and the Parent evidencing the trades listed on Schedule 1.02, as amended, modified, supplemented or restated on or prior to the Effective Date, and as the same may from time to time be amended, modified, supplemented or restated to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Citadel Permitted Existing Trade Documents</u>" means, (a) the ISDA Master Agreement, dated as of May 25, 2023, between Citadel and the Parent, including the Schedule thereto, as amended, modified, supplemented or restated on or prior to the Effective Date, and as the same may from time to time be amended, modified, supplemented or restated to the extent permitted by <u>Section</u> <u>9.17</u> and (b) the Citadel Permitted Existing Confirmations.

"<u>Citadel Permitted Existing Trades</u>" means the transactions evidenced by the Citadel Permitted Existing Confirmations identified on Schedule 7.18, as any such transaction may from time to time be amended, modified, supplemented or restated to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Citadel Swap Counterparty Acknowledgment</u>" means a Swap Counterparty Acknowledgment, in form and substance satisfactory to the Administrative Agent, to be entered into between the Administrative Agent, as collateral agent, the Borrower, and Citadel, as amended, modified, supplemented or restated from time to time.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute.

"<u>Collateral Coverage Minimum</u>" has the meaning assigned to such term in <u>Section</u> <u>8.13(a)</u>.

"<u>Commitment</u>" means, with respect to each Lender, the commitment of such Lender to make Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender's Revolving Credit Exposure hereunder, as such commitment may be (i) modified from time to time pursuant to <u>Section</u> <u>2.06</u>, (ii) modified from time to time pursuant to assignments by or to such Lender pursuant to <u>Section</u> <u>12.04(b)</u> or (iii) modified by any other amendment or modification of such Commitments permitted under this Agreement. The amount representing each Lender's Commitment shall at any time be the least of (a) such Lender's Maximum Credit Amount, (b) such Lender's Applicable Percentage of the then effective Borrowing Base and (c) such Lender's Elected Commitment. The total Commitments is the aggregate amount of the Commitments of all the Lenders.

"<u>Commitment Fee Rate</u>" has the meaning set forth in the definition of "<u>Applicable Margin</u>".

"<u>Commodity Account</u>" shall have the meaning set forth in Article 9 of the UCC.

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"<u>Commodity Exchange Act</u>" means the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended from time to time, and any successor statute, and any regulations promulgated thereunder.

"<u>Conforming Changes</u>" means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Alternate Base Rate," the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of <u>Section</u> <u>5.02</u> and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consolidated Cash Balance</u>" means, at any time, the aggregate amount of cash and Cash Equivalents, in each case, held or owned by (whether directly or indirectly), credited to the account of, or otherwise reflected as an asset on the balance sheet of, the Borrower and its Restricted Subsidiaries other than, without duplication, (i) any cash or Cash Equivalents constituting Cash Collateral held by the Administrative Agent pursuant to this Agreement or any other Loan Document, (ii) any cash or Cash Equivalents of the Borrower or any Restricted Subsidiary to be used by the Borrower or any Restricted Subsidiary within five (5) Business Days to pay the purchase price for any acquisition of any Property (including Equity Interests) permitted hereunder by the Borrower or any Restricted Subsidiary pursuant to a binding and enforceable purchase and sale agreement or in connection with a "sign and close" purchase and sale agreement reasonably anticipated within such five (5) Business Days, in each case, with an unaffiliated third party, (iii) any cash or Cash Equivalents constituting purchase price deposits held in escrow by an unaffiliated third party pursuant to a binding and enforceable purchase and sale agreement containing customary provisions regarding the payment and refunding of such deposits, (iv) any cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries set aside to make any Investment within five (5) Business Days of such time, in each case, to the extent such Investment is then permitted to be made under this Agreement at such time and in an amount not to exceed the amount of such Investment permitted to be made pursuant thereto, (v) cash allocated for, reserved or otherwise set aside for and solely used for payroll or employee benefit payment obligations and (vi) any cash or cash equivalents of the Borrower or any of its Restricted Subsidiaries held by the Borrower or any of its Restricted Subsidiaries constituting the reasonably estimated amount of any cash distributions with respect to the Borrower's Equity Interests that the Borrower intends to

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make to holders of its Equity Interests, in each case which distributions are expressly permitted pursuant to <u>Section</u> <u>9.04(a)(iv)</u> and which distributions shall be made within the next succeeding five (5) Business Days. To the extent such amounts specified in the foregoing clauses (ii), (iv) and (vi) are financed with the proceeds of a Borrowing, such use of proceeds must be certified to by the Borrower in the applicable Borrowing Request.

"<u>Consolidated Cash Balance Threshold</u>" means, at any time, the greater of (a) $25,000,000 and (b) ten percent (10%) of the Borrowing Base then in effect.

"<u>Consolidated Net Income</u>" means with respect to the Borrower and the Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Borrower and the Consolidated Restricted Subsidiaries after allowances for taxes for such period determined on a consolidated basis in accordance with GAAP; *provided* that there shall be excluded, without duplication, from such net income (to the extent otherwise included therein) the following: (a) the net income of any Person in which the Borrower or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Borrower and the Consolidated Restricted Subsidiaries in accordance with GAAP), except to the extent of the amount of dividends or distributions actually paid in cash during such period by such other Person to the Borrower or to a Consolidated Restricted Subsidiary, as the case may be; (b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP, but in each case only to the extent of such prohibition or restriction; (c) the net income (or loss) of any Person accrued prior to the date it becomes a Consolidated Restricted Subsidiary or is merged into or consolidated with the Borrower or any of its Consolidated Restricted Subsidiaries; (d) any extraordinary or non-recurring gains or losses during such period, (e) any gains or losses attributable to writeups or writedowns of assets, (f) any gain or loss from the sale of assets other than in the ordinary course of business, (g) any income attributable to the early extinguishment of any Debt or Swap Agreements of the Borrower or a Consolidated Restricted Subsidiary; and (h) the cumulative effect of a change in accounting principles and changes as a result of the adoption or modification of accounting policies during such period whether effected through a cumulative effect adjustment or a retroactive application, in each case, in accordance with GAAP.

"<u>Consolidated Net Leverage Ratio</u>" means, as of the last day of any fiscal quarter (or any other date of determination for purposes of <u>Sections</u> <u>8.20</u>, <u>9.02(i)</u>, <u>9.04(a)(iv)</u>, <u>9.04(b)(i)</u>, and <u>9.05(j</u>)), the ratio of Total Net Debt as of such day to EBITDAX (or (a) in the case of each of the first three fiscal quarters ending after the Effective Date, Annualized EBITDAX or (b) prior to the initial delivery of financial statements pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, Specified EBITDAX) for the most recently ended Rolling Period.

"<u>Consolidated Restricted Subsidiary</u>" means any Restricted Subsidiaries that are Consolidated Subsidiaries.

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"<u>Consolidated Subsidiary</u>" means each Subsidiary of the Borrower (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Borrower in accordance with GAAP.

"<u>Consolidated Total Assets</u>" means, as of any date of determination, the total assets of the Borrower and its Consolidated Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP, as shown on (x) the most recent balance sheet of the Borrower delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u> or, with respect to the Initial Financial Statements, <u>Section</u> <u>6.02</u> or (y) a balance sheet of the Borrower (i) prepared by a Financial Officer of the Borrower, (ii) certified by a Financial Officer as presenting fairly in all material respects the financial position of the Borrower and its Consolidated Restricted Subsidiaries (excluding Unrestricted Subsidiaries) on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes and (iii) delivered to the Administrative Agent and each Lender.

"<u>Consolidated Unrestricted Subsidiaries</u>" means any Unrestricted Subsidiaries that are Consolidated Subsidiaries.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings correlative thereto.

"<u>Control Agreement</u>" means a control agreement, in form and substance reasonably satisfactory to the Administrative Agent, providing for the Administrative Agent's exclusive control of a Deposit Account, Securities Account or Commodity Account, as applicable, after notice, executed and delivered by the Borrower or a Restricted Subsidiary, as applicable, and the applicable securities intermediary (with respect to a Securities Account), bank (with respect to a Deposit Account) or commodity intermediary (with respect to a Commodity Account), in each case at which such relevant account is maintained.

"<u>Controlled Investment Affiliate</u>" shall mean, as to any Person, any other Person which directly or indirectly is in control of, is controlled by, or is under common control with such Person and is organized by such Person (or any Person controlling such Person) primarily for making direct or indirect equity or debt investments in the Borrower and/or other companies.

"<u>Control Agreement Delivery Date</u>" shall have the meaning set forth in <u>Section</u> <u>8.16</u>.

"<u>Converted Restricted Subsidiary</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Converted Unrestricted Subsidiary</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Credit Parties</u>" means, collectively, the Borrower and each Guarantor, and "<u>Credit Party</u>" means any one of the foregoing.

"<u>Cure Amount</u>" has the meaning assigned to such term in <u>Section</u> <u>9.01(c)</u>.

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"<u>Cure Period</u>" has the meaning assigned to such term in <u>Section</u> <u>9.01(c)</u>.

"<u>Current Assets</u>" means, as at any date of determination, without duplication, the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption "total current assets" (or any like caption) on a consolidated balance sheet of the Borrower and its Consolidated Restricted Subsidiaries at such date, *plus* Unused Availability (but only to the extent that the Borrower is then permitted to borrow such amount under the terms of this Agreement, including, without limitation, <u>Section</u> <u>6.03</u> hereof (but excluding Section 6.03(d))), but excluding (a) all non-cash assets under ASC 815 and (b) assets to the extent resulting from non-cash gains required under ASC 410.

"<u>Current Liabilities</u>" means, as at any date of determination, without duplication, the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption "total current liabilities" (or any like caption) on a consolidated balance sheet of the Borrower and its Consolidated Restricted Subsidiaries on such date, but excluding, without duplication, (a) all non-cash obligations under ASC 815, and (b) the current maturities under this Agreement.

"<u>Current Ratio</u>" means, as of any date of determination, the ratio of (a) Current Assets to (b) Current Liabilities.

"<u>Debt</u>" means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit (including Letters of Credit), surety or other bonds and similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services (excluding accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course of business which are not greater than ninety (90) days past due or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP); (d) all obligations of such Person under Capital Leases; (e) all obligations of such Person under Synthetic Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) a Lien on any Property of such Person, whether or not such Debt is assumed by such Person, to the extent of the lesser of (i) the amount of such Debt and (ii) the fair market value (as determined by the Borrower in good faith) of the Property of such Person securing such Debt; (g) all Debt (as defined in the other clauses of this definition) of others guaranteed by such Person (directly or indirectly) or in respect of which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others and, to the extent entered into as a means of providing credit support for the obligations of others and not primarily to enable such Person to acquire any such Property, all obligations or undertakings of such Person to purchase the Debt or Property of others; (i) obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course of business; (j) any Debt of a partnership for which such

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"<u>Deposit Account</u>" shall have the meaning set forth in Article 9 of the UCC.

"<u>Default</u>" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"<u>Defaulting Lender</u>" means any Lender that (a) has failed, within two (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, (ii) fund any portion of its participations in Letters of Credit or (iii) pay over to the Administrative Agent, the Issuing Bank or any other Lender any other amount required to be paid by it hereunder; (b) has notified the Borrower or the Administrative Agent, the Issuing Bank or any other Lender in writing, or has made a public statement, to the effect that it does not intend or expect to comply with any of its funding obligations under this Agreement or generally under other agreements in which it commits to extend credit (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's good faith determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied); (c) has failed, within three (3) Business Days after request by the Administrative Agent, the Issuing Bank or any Lender, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations to fund prospective Loans and participations in then outstanding Letters of Credit under this Agreement; *provided* that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent's, the Issuing Bank or such Lender's receipt of such certification in form and substance satisfactory to it and the Administrative Agent; or (d) has (or whose bank holding company has) been placed into receivership, conservatorship or bankruptcy or has become the subject of a Bail-In Action.

"<u>Discharge of Second Lien Obligations</u>" means the "Discharge of Second Lien Obligations" as defined in the Second Lien Intercreditor Agreement.

"<u>Disposed EBITDAX</u>" shall mean, with respect to any Sold Entity or Business with a sale price in excess of $1,000,000 or any Converted Unrestricted Subsidiary with a fair market value (as reasonably determined by the Borrower) in excess of $1,000,000 for any period, the amount for such period of EBITDAX of such Sold Entity or Business (determined as if references to the Borrower and the Restricted Subsidiaries in the definition of EBITDAX (and in the component definitions used therein) were references to such Sold Entity or Business and its Subsidiaries or such Converted Unrestricted Subsidiary and its Subsidiaries) or such Converted Unrestricted

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Subsidiary, all as determined on a consolidated basis for such Sold Entity or Business or such Converted Unrestricted Subsidiary.

"<u>Disposition</u>" means any conveyance, sale, lease, sale and leaseback, assignment, farm-out, transfer or other disposition of any Property, and includes, for the avoidance of doubt, any Casualty Event. "<u>Dispose</u>" has a correlative meaning thereto.

"<u>Disqualified Capital Stock</u>" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event (other than upon a "change in control"; *provided* that the terms of such Equity Interest require that any payment in connection therewith be made only after the occurrence of the Release Date), matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days after the earlier of (a) the Maturity Date and (b) the date on which there are no Loans, LC Exposure or other obligations hereunder outstanding and all of the Commitments are terminated.

"<u>Disqualified Institution</u>" means any Person that is (a) designated by the Borrower by written notice delivered to the Administrative Agent on or prior to May 10, 2026, as a (i) "Disqualified Institution" or (ii) a competitor of the Borrower or any of its Subsidiaries (a "<u>Competitor</u>") or (b) clearly identifiable, solely on the basis of such Person's name, as an Affiliate of any Person referred to in clause (a)(i) or (a)(ii) above; *provided*, however, that Disqualified Institutions shall (A) exclude any Person that the Borrower has designated as no longer being a Disqualified Institution by written notice delivered to Agent from time to time and (B) include (I) any Person that is added as a Competitor and (II) any Person that is clearly identifiable, solely on the basis of such Person's name, as an Affiliate of any Person referred to in clause (B)(I), pursuant to a written supplement to the list of Competitors that are Disqualified Institutions, that is delivered by the Borrower after the date hereof to Agent. Such supplement shall become effective two (2) Business Days after the date that such written supplement is delivered to Agent, but which shall not apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans and/or Commitments as permitted herein. In no event shall any Persons, Subsidiaries or Affiliates that are bona fide fixed income investors, debt funds, regulated bank entities or unregulated lending entities generally engaged in making, purchasing, holding or otherwise investing in commercial loans, debt securities or similar extensions of credit in the ordinary course of business be a Disqualified Institution unless such Person is identified under clause (a)(i) above.

"<u>dollars</u>" or "<u>$</u>" refers to lawful money of the United States of America.

"<u>Domestic Subsidiary</u>" means any Restricted Subsidiary that is organized under the laws of the United States of America or any state thereof or the District of Columbia.

"<u>E-System</u>" means any electronic system approved by the Administrative Agent, including Syndtrak<sup>®</sup>, Intralinks<sup>®</sup> and ClearPar<sup>®</sup> and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent, any of its Related

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Persons or any other Person, providing for access to data protected by passcodes or other security system.

"<u>EBITDAX</u>" means, for any period, the sum of (a) Consolidated Net Income for such period plus (without duplication) (b) the following expenses or charges to the extent deducted from Consolidated Net Income in such period: (i) interest expense, (ii) income tax expense, (iii) depreciation, depletion, amortization, and exploration expenses and other similar noncash charges, (iv) any other non-cash charges, including any write-offs or write-downs, reducing Consolidated Net Income for such period (provided that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, (1) the Borrower may determine not to add back such non-cash charge in the current period and (2) to the extent the Borrower does decide to add back such non-cash charge in the current period, the cash payment in respect thereof in such future period shall be subtracted from EBITDAX to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), (v) losses on asset Dispositions, disposals and abandonments, (vi) (x) Transaction Expenses incurred prior to or on or about the Effective Date in connection with the Transactions, and (y) any Transaction Expenses after the Effective Date and any costs and expenses incurred in connection with any Investments, acquisitions (or purchases of assets), incurrence of Debt or expenses incurred in connection with Public Company Compliance after the Effective Date; *provided* that the aggregate amount of add backs under this clause (y) and clause (vii) below shall not exceed 10% of EBITDAX (calculated prior to giving effect to such add-backs) for such period, and (vii) the amount of any restructuring charges or reserves, equity-based or non-cash compensation charges or expenses including any such charges or expenses arising from grants of stock appreciation or similar rights, stock options, restricted stock or other rights, retention charges (including charges or expenses in respect of incentive plans), severance costs, costs relating to initiatives aimed at profitability improvement, costs or reserves associated with improvements to IT and accounting functions and integration and facilities opening costs or any one-time costs incurred in connection with acquisitions and investments *provided* that the aggregate amount of add backs under this (vii) and clause (vi)(y) above shall not exceed 10% of EBITDAX (calculated prior to giving effect to such add-backs) for such period;

minus (without duplication) (c) to the extent included in the statement of Consolidated Net Income for such period, the sum of (i) interest income, (ii) income tax credits (to the extent not netted from income tax expense), (iii) all non-cash gains increasing Consolidated Net Income for such period, excluding any non-cash gains that represent the reversal of an accrual or reserve for any anticipated cash charges in any prior period (other than any such accrual or reserve that has been added back to Consolidated Net Income in calculating EBITDAX in accordance with this definition) and (iv) gains on asset Dispositions, disposals and abandonments (other than the sale of Hydrocarbons in the ordinary course of business, but including any gain from the Liquidation of any Swap Agreement). If the Effective Date occurs on or prior to the date on which unaudited statements of income and cash flows of the Borrower and its Consolidated Subsidiaries as of and for the fiscal quarter ended June 30, 2026 are available, for any calculation of EBITDAX on or prior to the delivery of financial statements for the fiscal quarter ending June 30, 2026 pursuant to <u>Section</u> <u>8.01(b)</u>, EBITDAX (prior to giving effect to any Pro Forma Basis adjustments) shall be deemed to be Specified EBITDAX.

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There may, at the Borrower's option, be included in determining EBITDAX for any period of four consecutive fiscal quarters (each a "<u>Reference Period</u>"), without duplication, the positive amount of Acquired EBITDAX of any Person, property, business or asset acquired by the Borrower or any Restricted Subsidiary during such Reference Period (but not the Acquired EBITDAX of any related Person, property, business or assets to the extent not so acquired), to the extent not subsequently sold, transferred or otherwise disposed by the Borrower or such Restricted Subsidiary during such Reference Period (each such Person, property, business or asset acquired and not subsequently so disposed of, an "<u>Acquired Entity or Business</u>") and the Acquired EBITDAX of any Unrestricted Subsidiary that is converted into a Restricted Subsidiary during such Reference Period (each, a "<u>Converted Restricted Subsidiary</u>"), based on the actual Acquired EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for such Reference Period (including the portion thereof occurring prior to such acquisition). There shall be excluded in determining EBITDAX for any Reference Period (a) the negative amount of Acquired EBITDAX of any Acquired Entity or Business or Converted Restricted Subsidiary during such Reference Period and (b) the Disposed EBITDAX of any Person, property, business or asset (other than an Unrestricted Subsidiary) sold, transferred or otherwise disposed of or, closed or classified as discontinued operations (but if such operations are classified as discontinued due to the fact that they are subject to an agreement to dispose of such operations, only when and to the extent such operations are actually disposed of) by the Borrower or any Restricted Subsidiary during such Reference Period (each such Person, property, business or asset so sold or disposed of, a "<u>Sold Entity or Business</u>") and the Disposed EBITDAX of any Restricted Subsidiary that is converted into an Unrestricted Subsidiary during such Reference Period (each a "<u>Converted Unrestricted Subsidiary</u>"), based on the actual Disposed EBITDAX of such Sold Entity or Business or Converted Unrestricted Subsidiary for such Reference Period (including the portion thereof occurring prior to such sale, transfer or disposition). For the avoidance of doubt, Acquired EBITDAX (in the case of any Acquired Entity or Business or Converted Restricted Subsidiary) and Disposed EBITDAX (in the case of any Disposed Entity or Business or Converted Unrestricted Subsidiary) shall be included in the calculation of EBITDAX for such Reference Period, as though Acquired EBITDAX were acquired and Disposed EBITDAX were disposed, as applicable, in each case, on the first day of such Reference Period. For the avoidance of doubt, and notwithstanding anything to the contrary contained herein, this paragraph shall not apply to any Acquired EBITDAX with respect to any Material Acquisition that is being annualized pursuant to the proviso to the definition of "Acquired EBITDAX".

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clause (a) or clause (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

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"<u>Effective Date</u>" means the date on which the conditions specified in <u>Section</u> <u>6.02</u> are satisfied (or waived in accordance with <u>Section</u> <u>12.02</u>).

"<u>Effective Date Initial Public Offering</u>" means the initial public offering of Equity Interests of the Parent as described in the Registration Statement.

"<u>Elected Commitment</u>" means, as to each Lender, the amount set forth opposite such Lender's name on <u>Annex I</u> under the caption "Elected Commitment", as the same may be increased, reduced or terminated from time to time in connection with an optional increase, reduction or termination of the Aggregate Elected Commitment Amounts pursuant to <u>Section</u> <u>2.06(c)</u>.

"<u>Elected Commitment Increase Certificate</u>" has the meaning assigned to such term in <u>Section</u> <u>2.06(c)(ii)(D)</u>.

"<u>Electronic Record</u>" has the meaning assigned to such term in, and shall be interpreted in accordance with, 15 U.S.C. 7006.

"<u>Electronic Signature</u>" has the meaning assigned to such term in, and shall be interpreted in accordance with, 15 U.S.C. 7006.

"<u>Engineering Reports</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(c)(i)</u>.

"<u>Environmental Laws</u>" means any and all Governmental Requirements pertaining to human or worker health and safety (to the extent relating to exposure to Hazardous Materials), the environment, the preservation or reclamation of natural resources, or the management, Release or threatened Release of any Hazardous Materials, in effect and applicable to the operations of the Borrower or any Restricted Subsidiary, including, the Oil Pollution Act of 1990 ("OPA"), as amended, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 ("CERCLA"), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 ("RCRA"), as amended, the Pipeline Safety Statutes 49 U.S.C. Chapters 601 & 603 and regulations at 49 CFR Parts 190-199, as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, and the Hazardous Materials Transportation Act, as amended.

"<u>Environmental Permit</u>" means any permit, registration, license, approval, consent, exemption, variance, or other authorization required under or issued to the Borrower or any Restricted Subsidiary pursuant to applicable Environmental Laws.

"<u>Equity Interests</u>" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.

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"<u>ERISA Affiliate</u>" means each trade or business (whether or not incorporated) which together with the Borrower or a Subsidiary would be deemed to be a "single employer" within the meaning of Section 4001(b)(1) of ERISA or subsections (b), (c), (m) or (o) of Section 414 of the Code.

"<u>ERISA Event</u>" means (a) the occurrence of a "Reportable Event" described in Section 4043 of ERISA with respect to a Plan subject to Title IV of ERISA (other than a Multiemployer Plan), other than a Reportable Event as to which the provision of thirty (30) days' notice to the PBGC is expressly waived under applicable regulations, (b) the withdrawal of the Borrower, a Subsidiary or any ERISA Affiliate from a Plan subject to Title IV of ERISA during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA, (c) the filing of a notice of intent to terminate a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability pursuant to Section 4202 of ERISA, (f) the occurrence of any other event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or (g) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower, a Subsidiary or any ERISA Affiliate.

"<u>Erroneous Payment</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(a)</u>.

"<u>Erroneous Payment Deficiency Assignment</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>Erroneous Payment Impacted Class</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>Erroneous Payment Return Deficiency</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>Erroneous Payment Subrogation Rights</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>Event of Default</u>" has the meaning assigned to such term in <u>Section</u> <u>10.01</u>.

"<u>Excepted Liens</u>" means: (a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens (i) in connection with workers' compensation, unemployment insurance or other social security, old age pension, public liability obligations or similar legislation, and deposits securing liabilities to insurance carriers under insurance arrangements in respect of such obligations, in each case, in the ordinary course of business, or (ii) to secure (or secure the Lien securing) liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or

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liability insurance to the Borrower or any Restricted Subsidiary, in each case, which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c) statutory landlord's liens, operators', vendors', carriers', warehousemen's, repairmen's, mechanics', suppliers', workers', materialmen's, construction or other like Liens, in each case, arising by operation of law in the ordinary course of business or incident to the exploration, development, operation and maintenance of Oil and Gas Properties each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, service agreements, supply agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, seismic or other geophysical permits or agreements, and other agreements which are or have become usual and customary in the oil and gas business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; *provided* that any such Lien referred to in this clause (d) does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Borrower or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies arising in the ordinary course of business and burdening only deposit accounts or other funds maintained with a creditor depository institution; *provided* that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Borrower or any of its Restricted Subsidiaries to provide collateral to the depository institution; (f) zoning and land use requirements, easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Borrower or any Restricted Subsidiary for the purpose of roads, pipelines, shared facilities, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals or timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any monetary obligations and which in the aggregate do not materially impair the use of any material Property for the purposes of which such Property is held by the Borrower or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default; *provided* that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; (i) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal

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property; (j) any interest or title of a lessor, sublessor, licensor or sublicensor or secured by a lessor's, sublessor's, licensor's or sublicensor's interest under any lease, sublease, license or sublicense permitted by this Agreement; (k) Immaterial Title Deficiencies; (l) contractual restrictions and prohibitions on encumbrances and transferability with respect to software licensed to the Borrower and/or to any Restricted Subsidiary; and (m) Liens in favor of depository banks arising under documentation governing deposit accounts which Liens secure the payment of returned items, settlement item amounts, customary bank fees for maintaining deposit accounts and other related services, and similar items and fees; *provided further*, that, notwithstanding the foregoing or anything to the contrary contained herein, (x) no intention to subordinate the first priority afforded by the Liens granted in favor of the Administrative Agent, for the benefit of the Secured Parties, under the Security Instruments is to be hereby implied or expressed by the permitted existence of such Excepted Liens, (y) Liens described in <u>clauses (a)</u> through <u>(e)</u> and <u>(g)</u> shall remain "Excepted Liens" only for so long as no action to enforce such Lien has been commenced (or if commenced, has been stayed), and (z) the term "Excepted Liens" shall not include any Lien securing Debt for borrowed money other than the Obligations.

"<u>Excluded Accounts</u>" means (a) each account for which the deposits consist solely of amounts utilized to fund payroll, healthcare, employee benefit or tax obligations of the Borrower and its Restricted Subsidiaries, (b) segregated deposit accounts the balance of which consists exclusively of cash constituting purchase price deposits held in escrow by or on behalf of any Borrower or any of its Restricted Subsidiaries pursuant to a binding and enforceable purchase and sale agreement with an unaffiliated third party containing customary provisions regarding the payment and refunding of such deposits, (c) deposit accounts of any Person acquired by the Borrower or any Restricted Subsidiary in connection with any acquisition permitted hereunder during a thirty (30) day period following such acquisition (or such longer period as approved by the Administrative Agent); *provided* that (1) no proceeds of any Borrowing shall be deposited into any such account and (2) no additional funds shall be deposited into any such account other than revenues and other amounts required to be deposited therein pursuant to existing contractual arrangements or in the ordinary course of the business of the acquired Person as conducted prior to such acquisition and (d) other accounts so long as the aggregate average daily maximum balance in any such other account over a 30-day period does not at any time exceed $1,250,000; *provided* that the aggregate daily maximum balance for all such bank accounts excluded pursuant to this <u>clause</u> <u>(d)</u> on any day shall not exceed $2,500,000.

"<u>Excluded Property</u>" has the meaning assigned to such term in the Guarantee and Collateral Agreement.

"<u>Excluded Swap Obligation</u>" means, with respect to the General Partner or any Subsidiary Guarantor individually determined on a Subsidiary Guarantor by Subsidiary Guarantor basis, any obligation in respect of any Swap Agreement if, and solely to the extent that, all or a portion of the guarantee by the General Partner or such Subsidiary Guarantor of, or the grant by such Person of a security interest to secure, such obligation in respect of any Swap Agreement (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Person's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act at the time such guarantee or grant of a security interest becomes effective with respect to such related obligation in respect of any Swap

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Agreement. If any obligation in respect of any Swap Agreement arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such obligation in respect of any Swap Agreement that is attributable to swaps for which such guarantee or security interest is or becomes illegal.

"<u>Excluded Taxes</u>" means, with respect to the Administrative Agent, any Lender (including for purposes of this definition the Issuing Bank) or any other recipient of any payment to be made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>5.04(b)</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section</u> <u>5.03</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such recipient's failure to comply with <u>Section</u> <u>5.03(f)</u> or <u>(g)</u> and (d) any U.S. federal withholding Taxes imposed under FATCA.

"<u>Existing Credit Agreement</u>" has the meaning given such term in the recitals hereto.

"<u>Existing Note Purchase Agreement</u>" means that certain Note Purchase Agreement, dated as of September 17, 2024, by and among the Parent, as issuer, U.S. Bank Trust Company, National Association, as agent for the holders, and the other parties thereto from time to time, as amended, restated, amended and restated, supplemented or otherwise modified prior to the Effective Date.

"<u>Existing Notes Prepayment</u>" has the meaning assigned to such term in <u>Section</u> <u>6.02(k)(vi)</u>.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the Signing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code and any fiscal or regulatory legislation, rules or official administrative practices adopted pursuant to such intergovernmental agreement.

"<u>Federal Funds Rate</u>" means, for any day, the greater of (a) the rate calculated by Federal Reserve Bank of New York based on such day's Federal funds transactions by depositary institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the Federal effective rate and (b) 0%.

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"<u>Fee Letter</u>" means any fee letter that may hereafter be entered into between the Borrower, the Administrative Agent and/or any Arranger.

"<u>Financial Officer</u>" means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person. Unless otherwise specified, all references to a Financial Officer of the Borrower herein shall mean a Financial Officer of the General Partner with respect to the General Partner's capacity as the general partner of the Borrower.

"<u>Financial Performance Covenants</u>" shall mean the covenants of the Borrower set forth in <u>Section</u> <u>9.01(a)</u> and <u>(b)</u>.

"<u>Flood Insurance Regulations</u>" means, collectively, (a) the National Flood Insurance Act of 1968, (b) the Flood Disaster Protection Act of 1973, (c) the National Flood Insurance Reform Act of 1994, (d) the Flood Insurance Reform Act of 2004 and (e) the Biggert-Waters Flood Insurance Reform Act of 2012, as each of the foregoing is now or hereafter in effect and any successor statute to any of the foregoing.

"<u>Floor</u>" means a rate of interest equal to (a) prior to the Discharge of Second Lien Obligations, 2.50% and (b) following the Discharge of Second Lien Obligations, 0.00%.

"<u>Foreign Lender</u>" means any Lender that is not a U.S. Person.

"<u>Foreign Subsidiary</u>" means any Restricted Subsidiary that is not a Domestic Subsidiary.

"<u>Fronting Exposure</u>" means, at any time there is a Defaulting Lender, with respect to the Issuing Bank, such Defaulting Lender's LC Exposure other than LC Exposure as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

"<u>GAAP</u>" means generally accepted accounting principles in the United States of America as in effect from time to time subject to the terms and conditions set forth in <u>Section</u> <u>1.05</u>.

"<u>Governance Documents</u>" has the meaning assigned to such term in <u>Section</u> <u>6.01(b)</u>.

"<u>Governmental Authority</u>" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Governmental Requirement</u>" means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, rules of common law, authorization or other legally binding directive or requirement, whether now or hereinafter in effect, of any Governmental Authority.

"<u>Guarantee and Collateral Agreement</u>" means a Guarantee and Collateral Agreement among the Borrower and the other Credit Parties from time to time party thereto and the Administrative Agent in form and substance satisfactory to the Administrative Agent (a) granting

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Liens on the Credit Parties' personal property constituting Collateral (as defined therein) in favor of the Administrative Agent for the benefit of the Secured Parties to secure the Obligations and (b) unconditionally guaranteeing on a joint and several basis, payment of the Obligations, as the same may be amended, restated, amended and restated, supplemented or modified from time to time.

"<u>Guarantors</u>" means each Restricted Subsidiary that is a party to the Guarantee and Collateral Agreement as a "Guarantor" and "Grantor" (as such terms are defined in the Guarantee and Collateral Agreement) and guarantees the Obligations (including pursuant to <u>Section</u> <u>6.02</u> and <u>Section</u> <u>8.13(b)</u>).

"<u>Hazardous Material</u>" means any substance regulated due to its deleterious properties or as to which liability might arise under any applicable Environmental Law, including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of "hazardous substance," "hazardous material," "hazardous waste," "solid waste," "toxic waste," "extremely hazardous substance," "toxic substance," "contaminant," "pollutant," or any other similar term or expression intended to define, list or classify substances by reason of properties harmful to health, safety or the indoor or outdoor environment (including harmful properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, "TCLP toxicity" or "EP toxicity" or words of similar import under any applicable Environmental Laws); (b) petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, fractions, or derivatives thereof; and (c) radioactive materials, explosives, asbestos or asbestos containing materials, per- and polyfluoroalkyl substances, polychlorinated biphenyls, radon, infectious or medical wastes.

"<u>Highest Lawful Rate</u>" means, with respect to each Lender, the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the Loans or on other Obligations under laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws allow as of the Signing Date.

"<u>Hydrocarbon Interests</u>" means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, term mineral interests, overriding royalty, non-participating royalty and royalty interests, net profit interests and production payment interests, including any reserved or residual interests of whatever nature.

"<u>Hydrocarbons</u>" means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom.

"<u>Illegality Notice</u>" has the meaning set forth in <u>Section</u> <u>3.03(b)</u>.

"<u>Immaterial Subsidiary</u>" means any Restricted Subsidiary that is not a Material Subsidiary.

"<u>Immaterial Title Deficiencies</u>" means, with respect to Oil and Gas Properties, minor defects or deficiencies in title, and discrepancies in reported net revenue and working interest ownership percentages, which do not, individually or in the aggregate, affect Oil and Gas

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Properties with a value (which, for purposes hereof, shall mean the value attributed to any such Oil and Gas Properties in the most recently delivered Reserve Report) greater than one percent (1%) of the most recent Borrowing Base.

"<u>Immediate Family Members</u>" shall mean with respect to any individual, such individual's child, stepchild, grandchild or more remote descendant, parent, stepparent, grandparent, spouse, former spouse, qualified domestic partner, sibling, mother-in-law, father-in-law, son-in-law and daughter-in-law (including adoptive relationships) and any trust, partnership or other bona fide estate-planning vehicle the only beneficiaries of which are any of the foregoing individuals or any private foundation or fund that is controlled by any of the foregoing individuals or any donor-advised fund of which any such individual is the donor.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document or (b) to the extent not otherwise described in clause (a) above, Other Taxes.

"<u>Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>12.03(b)</u>.

"<u>Information</u>" has the meaning set forth in <u>Section</u> <u>12.11</u>.

"<u>Initial Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>6.02(s)</u>.

"<u>Initial Reserve Report</u>" means the report of Cawley Gillespie and Associates, Inc., dated as of December 31, 2025, with respect to the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries as of January 1, 2026.

"<u>Interest Election Request</u>" means a request by the Borrower to convert or continue a Borrowing in accordance with <u>Section</u> <u>2.04</u>.

"<u>Interest Payment Date</u>" means (a) with respect to any ABR Loan, the last Business Day of each March, June, September and December and the Termination Date and (b) with respect to any SOFR Loan, the last Business Day of each Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a SOFR Borrowing with an Interest Period of more than three months' duration, each day prior to the last day of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period and the Termination Date.

"<u>Interest Period</u>" means, with respect to any SOFR Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, three or six months thereafter, as the Borrower may elect; *provided* that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day; (b) any Interest Period pertaining to a SOFR Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period; (c) no Interest Period shall extend beyond the Maturity

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Date; and (d) no tenor that has been removed from this definition pursuant to <u>Section</u> <u>3.03(c)</u> shall be available for specification in any Borrowing Request or any Interest Election Request. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

"<u>Interim Redetermination</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(b)</u>.

"<u>Interim Redetermination Date</u>" means the date on which a Borrowing Base that has been redetermined pursuant to an Interim Redetermination becomes effective as provided in <u>Section</u> <u>2.07(d)</u>.

"<u>Investment</u>" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person) and made in the ordinary course of business and consistent with past practice); (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit, line of business or a discrete set of Properties; or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person and (without duplication) any amount committed to be advanced, lent or extended to such Person.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Issuing Bank</u>" means Capital One, National Association, in its capacity as issuer of Letters of Credit hereunder, and each of its successors in such capacity as provided in <u>Section</u> <u>2.08(i)</u>. The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term "Issuing Bank" shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. Notwithstanding anything herein to the contrary, Capital One, National Association, shall only be required to issue standby letters of credit.

"<u>LC Commitment</u>" means $10,000,000.

"<u>LC Disbursement</u>" means a payment made by the Issuing Bank pursuant to a Letter of Credit.

"<u>LC Exposure</u>" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time *plus* (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

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"<u>Lenders</u>" means the Persons listed on <u>Annex</u> <u>I</u>, any Person that shall have become a party hereto pursuant to an Assignment and Assumption or any amendment or modification to this Agreement, and any Person that shall have become a party hereto as an Additional Lender pursuant to <u>Section</u> <u>2.06(c)</u>, other than, in each case, any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the context otherwise requires, the term "Lenders" includes the Issuing Bank. For the avoidance of doubt, any Person that is a Lender shall, unless such Lender ceases to be a party hereto pursuant to an Assignment and Assumption, remain a Lender whether or not the Commitments are $0 and regardless of the occurrence of the Maturity Date.

"<u>Lending Office</u>" means, with respect to any Lender, the office of such Lender maintaining such Lender's Revolving Credit Exposure, which office may, to the extent the applicable Lender notifies the Administrative Agent in writing, include an office of any Affiliate of such Lender or any domestic or foreign branch of such Lender or Affiliate.

"<u>Letter of Credit</u>" means any letter of credit issued pursuant to this Agreement.

"<u>Letter of Credit Agreements</u>" means all letter of credit applications and other agreements (including any amendments, modifications or supplements thereto) submitted by the Borrower, or entered into by the Borrower, with the Issuing Bank relating to any Letter of Credit.

"<u>Lien</u>" means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) production payments and the like payable out of Oil and Gas Properties. The term "Lien" shall include easements, restrictions, servitudes, permits, conditions, covenants, exceptions and reservations.

"<u>Liquidate</u>" means, with respect to any Swap Agreement, the sale, assignment, novation, unwind, monetization or early termination of all or any part of such Swap Agreement or the creation of an offsetting position against all or any part of such Swap Agreement. The terms "<u>Liquidating</u>", "<u>Liquidated</u>" and "<u>Liquidation</u>" have a correlative meaning thereto.

"<u>Liquidity</u>" shall mean, as of any date of determination, the sum of (a) the Unused Availability on such date to the extent that the Borrower is otherwise permitted to borrow such amounts under the terms of this Agreement, including, without limitation, <u>Section</u> <u>6.03</u> hereof but excluding <u>Section</u> <u>6.03(d)</u>, and (b) the aggregate amount of Unrestricted Cash of the Borrower and the Restricted Subsidiaries, *minus* (c) the amount of any Borrowing Base Deficiency as of such date.

"<u>Loan Documents</u>" means this Agreement, the Fee Letter, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Security Instruments, any Notes issued by the Borrower pursuant hereto and any other document, agreement or letter agreed in writing by the Borrower and the Administrative Agent and/or the Lenders to be a Loan Document.

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"<u>Loan Limit</u>" means, at any time, the least of (a) the Aggregate Maximum Credit Amounts, (b) the then effective Borrowing Base and (c) the then effective Aggregate Elected Commitment Amounts.

"<u>Loans</u>" means the loans made by the Lenders to the Borrower pursuant to this Agreement.

"<u>Majority Lenders</u>" means (a) if there are fewer than three Lenders at such time, all Non-Defaulting Lenders, and (b) if there are three or more Lenders at such time, (i) at any time while no Loans or LC Exposure is outstanding, Non-Defaulting Lenders having more than fifty percent (50%) of the Aggregate Maximum Credit Amounts of all Non-Defaulting Lenders and (ii) at any time while any Loans or LC Exposure is outstanding, Non-Defaulting Lenders holding more than fifty percent (50%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit of all Non-Defaulting Lenders (without regard to any sale by a Non-Defaulting Lender of a participation in any Loan under <u>Section</u> <u>12.04(c)</u>).

"<u>Material Adverse Effect</u>" means a material adverse change in, or material adverse effect on (a) the business, operations, Property or financial condition of the Parent, the General Partner, the Borrower and the Restricted Subsidiaries taken as a whole, (b) the ability of the Borrower, the Parent, the General Partner, any Restricted Subsidiary or any Guarantor to perform any of its obligations under any Loan Document, (c) the validity or enforceability of any Loan Document, or (d) the rights and remedies of or benefits available to the Administrative Agent, any other Agent, the Issuing Bank or any Lender under any Loan Document.

"<u>Material Acquisition</u>" has the meaning assigned to such term in the definition of "Acquired EBITDAX".

"<u>Material Debt</u>" means: (a) any Debt (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Restricted Subsidiaries in an aggregate principal amount exceeding the Threshold Amount and (b) Debt (and any guarantees thereof) under the Second Lien Notes and the other Second Lien Note Documents. For purposes of determining Material Debt, the "principal amount" of the obligations of the Borrower or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the Swap Termination Value of such Swap Agreement.

"<u>Material Disposition</u>" means any disposition of Property or series of related dispositions of Property that involves the payment of consideration to the Borrower and the Consolidated Restricted Subsidiaries in excess of $2,000,000.

"<u>Material Subsidiary</u>" means, as of any date, any Restricted Subsidiary that (a) incurs or is otherwise liable on any Debt or guarantees any Debt or grants any Lien on any Property to secure any Debt, (b) owns any Borrowing Base Properties, or (c) whose revenues or total assets, when taken together with its Subsidiaries, as of the last day of the most recent fiscal quarter for which financial statements are required to have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u> or, with respect to the Initial Financial Statements, <u>Section</u> <u>6.02</u>, were equal to or greater than 2.5% of the consolidated total revenues or consolidated total assets, respectively, of the Borrower and the Consolidated Restricted Subsidiaries as of such date, determined in accordance with GAAP; *provided* that, if, as of the last day of the most recent fiscal quarter for which financial

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statements are required to have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u> or, with respect to the Initial Financial Statements, <u>Section</u> <u>6.02</u>, the aggregate revenues or aggregate assets attributable to all Restricted Subsidiaries that are not Material Subsidiaries exceed 5.0% of the consolidated revenues or consolidated total assets, respectively, of the Borrower and the Consolidated Restricted Subsidiaries as of such date, then the Borrower shall designate in the compliance certificate required to be delivered pursuant to Section 8.01(c) for such fiscal quarter or fiscal year, as applicable, one or more Restricted Subsidiaries that are not Material Subsidiaries as Material Subsidiaries as may be necessary to eliminate such excess, and upon the delivery of such compliance certificate to the Administrative Agent, such designated Restricted Subsidiaries shall for all purposes of this Agreement constitute Material Subsidiaries; *provided further* that, in the event that the Borrower fails to so designate sufficient additional Subsidiaries as "Material Subsidiaries" as aforesaid, the Administrative Agent may, by prior written notice to the Borrower, designate sufficient additional Restricted Subsidiaries as "Material Subsidiaries" on the Borrower's behalf, whereupon such Restricted Subsidiaries shall constitute "Material Subsidiaries" for all purposes of this Agreement.

"<u>Maturity Date</u>" means May 25, 2030.

"<u>Maximum Credit Amount</u>" means, as to each Lender, the amount set forth opposite such Lender's name on <u>Annex</u> <u>I</u> under the caption "Maximum Credit Amounts", as the same may be (a) reduced or terminated from time to time in connection with a reduction or termination of the Aggregate Maximum Credit Amounts pursuant to <u>Section</u> <u>2.06(b)</u>, (b) modified from time to time pursuant to <u>Section</u> <u>2.06(c)</u> or (c) modified from time to time pursuant to any assignment permitted by <u>Section</u> <u>12.04(b)</u>.

"<u>Moody's</u>" means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

"<u>Mortgaged Property</u>" means any Property owned by the Borrower or any Guarantor which is subject to the Liens existing and to exist under the terms of the Security Instruments.

"<u>Mortgages</u>" means all mortgages, deeds of trust and similar documents, instruments and agreements creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment of the Obligations or any part thereof in form and substance satisfactory to the Administrative Agent.

"<u>Multiemployer Plan</u>" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"<u>New Borrowing Base Notice</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(d)</u>.

"<u>Non-Consenting Lender</u>" means any Lender that (a) does not approve any consent, waiver or amendment that (i) requires the approval of all affected Lenders or all Lenders in accordance with the terms of <u>Section</u> <u>12.02</u> and (ii) has been approved by the Majority Lenders and (b) does not approve an increase in the Borrowing Base that has been approved by the Supermajority Lenders.

"<u>Non-Defaulting Lenders</u>" means, at any time, each Lender that is not a Defaulting Lender.

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"<u>Notes</u>" means the promissory notes of the Borrower described in <u>Section</u> <u>2.02(d)</u> and being substantially in the form of <u>Exhibit</u> <u>A</u>, together with all amendments, modifications, replacements, extensions and rearrangements thereof.

"<u>NYFRB</u>" means the Federal Reserve Bank of New York.

"<u>Obligations</u>" means any and all amounts owing or to be owing by the Parent, the General Partner, the Borrower, any Restricted Subsidiary or any Guarantor (whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising): (a) to any Agent, the Issuing Bank or any Lender under any Loan Document, including, without limitation, all applicable fees and expenses hereunder, and all interest on any of the Loans (including any interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of any Credit Party (or could accrue but for the operation of applicable bankruptcy or insolvency laws), whether or not such interest is allowed or allowable as a claim in any such case, proceeding or other action); (b) to any Secured Swap Party under any Secured Swap Agreement; (c) to any Secured Cash Management Provider under any Secured Cash Management Agreement; and (d) all renewals, extensions and/or rearrangements of any of the above; *provided* that solely with respect to (i) any Subsidiary Guarantor that is not and (ii) the General Partner, if such Subsidiary Guarantor or the General Partner is not, an "eligible contract participant" under the Commodity Exchange Act, Excluded Swap Obligations of such Person shall in any event be excluded from "Obligations" owing by such Person. Without limitation of the foregoing, the term "Obligations" shall include the unpaid principal of and interest on the Loans and LC Exposure (including, without limitation, interest accruing at the then applicable rate provided in this Agreement after the maturity of the Loans and LC Exposure and interest accruing at the then applicable rate provided in this Agreement after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Parent, the General Partner, the Borrower, any of its Subsidiaries or any Guarantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), reimbursement obligations (including, without limitation, to reimburse LC Disbursements), obligations to post cash collateral in respect of Letters of Credit, any Erroneous Payment Subrogation Rights, payments in respect of an early termination of Secured Swap Obligations and unpaid amounts, fees, expenses, indemnities, costs, and all other obligations and liabilities of every nature of the Parent, the General Partner, the Borrower, any Subsidiary or any Guarantor, whether absolute or contingent, due or to become due, now existing or hereafter arising under this Agreement, the other Loan Documents, any Secured Swap Agreement or any Secured Cash Management Agreement.

"<u>OFAC</u>" means the U.S. Department of the Treasury's Office of Foreign Assets Control.

"<u>Oil and Gas Properties</u>" means (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all presently existing or future unitization agreements, pooling agreements and declarations of pooled or unitized units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including farmout agreements, farm in agreements, area of mutual interest agreements, equipment leases and production sharing contracts and other agreements, which relate to any of the Hydrocarbon

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Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests; and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real or personal, immovable or moveable, now owned or hereafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental equipment or other personal Property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all wellbores, oil wells, gas wells, injection wells, disposal wells or other wells, buildings, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, gathering systems, field gathering systems, gas processing plants and pipeline systems and any related infrastructure to any thereof, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing. Unless otherwise expressly provided herein, all references in this Agreement to "Oil and Gas Properties" refer to Oil and Gas Properties owned by the Borrower and/or its Restricted Subsidiaries, as the context requires.

"<u>Ongoing Hedges</u>" has the meaning assigned to such term in <u>Section</u> <u>9.14(a)</u>.

"<u>OPA</u>" has the meaning set forth in the definition of "<u>Environmental Laws</u>".

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan, Letter of Credit or Loan Document).

"<u>Other Taxes</u>" means any and all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes arising from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this Agreement and any other Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>5.04(b)</u>).

"<u>Outbound Investment Rules</u>" means the regulations administered and enforced, together with any related public guidance issued, by the United States Treasury Department under U.S. Executive Order 14105 of August 9, 2023, or any similar law or regulation; as of the Signing Date, and as codified at 31 C.F.R. § 850.101 et seq.

"<u>Participant</u>" has the meaning assigned to such term in <u>Section</u> <u>12.04(c)(i)</u>.

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"<u>Participant Register</u>" has the meaning assigned to such term in <u>Section</u> <u>12.04(c)(i)</u>.

"<u>Patriot Act</u>" has the meaning assigned to such term in <u>Section</u> <u>12.16</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation, or any successor thereto.

"<u>Permitted Holder</u>" means officers and directors of the Borrower (or the Parent) who on the Effective Date are holders of Equity Interests of the Borrower (or the Parent) (and their Controlled Investment Affiliates and Immediate Family Members).

"<u>Permitted Refinancing Debt</u>" means, with respect to Debt of any Person (for purposes of this definition, the "<u>Refinanced Debt</u>"), any refinancing, renewal or replacement of such Refinanced Debt (for purposes of this definition, "<u>new Debt</u>"); *provided* that (a) the principal amount of such new Debt does not exceed the principal amount then outstanding of the Refinanced Debt *plus* an amount necessary to pay accrued and unpaid interest thereon *plus* reasonable fees and expenses incurred in connection with such refinancing, renewal or replacement of such Refinanced Debt; (b) such new Debt has a final maturity date equal to or later than the final maturity date of, and has a weighted average life to maturity equal to or greater than the weighted average life to maturity of, the Refinanced Debt; (c) (i) to the extent the Refinanced Debt is subordinated in right of payment to the Obligations, such new Debt is subordinated in right of payment to the Obligations on terms and conditions satisfactory to the Administrative Agent and (ii) such new Debt is incurred by the Person who is the obligor of, and does not have greater guarantees or security than, the Refinanced Debt; and (d) if the Refinanced Debt constitutes Second Lien Notes or Senior Notes, then the new Debt must be Senior Notes incurred or issued pursuant to and in accordance with the terms of <u>Section</u> <u>9.02(i)</u>.

"<u>Permitted Senior Notes</u>" means Senior Notes and Permitted Refinancing Debt, in each case, issued or incurred by the Borrower and permitted to remain outstanding pursuant to <u>Section</u> <u>9.02(i)</u>.

"<u>Permitted Tax Distributions</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for any taxable period (or portion thereof) ending prior to Effective Date for which Borrower was wholly-owned by Parent for U.S. federal income tax purposes, distributions in an aggregate amount not to exceed the product of (x) the highest combined marginal federal, state and/or local statutory income Tax rate applicable to Parent (as estimated by the Borrower in good faith) and (y) the taxable income attributable to the Borrower and its Subsidiaries for such taxable period allocated to Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) for any taxable period (or portion thereof) ending after the Effective Date for which the Borrower is treated as a partnership (or disregarded as an entity separate from a partnership) that is not wholly-owned by a corporation for U.S. federal income tax purposes, distributions in an aggregate amount for such taxable period not to exceed the product of (1) the taxable income of the Borrower and its Subsidiaries for such taxable period (determined without regard to any adjustments pursuant to Section 734 or 743 of the Code) that is allocated to the direct and indirect equityholders of the Borrower and (2) the highest combined marginal U.S. federal, state and/or local income tax rate (taking into account the character of the taxable income in question (e.g., long term capital gain, qualified dividend income, etc.)) applicable to any direct or indirect

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equityholder of the Borrower (as estimated by the Borrower in good faith); provided that, to the extent a direct or indirect equityholder of the Borrower would be entitled to receive less than its pro rata share (in accordance with relative economic ownership of the Borrower) of the amounts of tax distributions otherwise distributable by the Borrower pursuant to this clause (B) on any given date, the amounts of Permitted Tax Distributions otherwise permitted pursuant to this clause (B) shall be increased to ensure that the direct and indirect equityholders of the Borrower shall receive an amount pursuant to this clause (B) so that all tax distributions by the Borrower are made to its direct and indirect equityholders pro rata in accordance with relative economic ownership; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) for any taxable year ending after the Effective Date for which (i) the Borrower is treated as a corporation that is a member of a consolidated, combined, unitary or similar income tax group for U.S. federal or applicable foreign, state and/or local income tax purposes of which Parent or any other direct or indirect parent company of the Borrower is the common parent (a "Tax Group") or (ii) the Borrower is a pass-through or disregarded entity for U.S. federal or applicable foreign, state or local income tax purposes that is wholly-owned (directly or indirectly) by a corporation for U.S. federal income tax purposes, distributions to fund the portion of the U.S. federal, foreign, state and/or local income taxes of such Tax Group or such corporation (as applicable) for such taxable period that is attributable to the taxable income of the Borrower and/or the applicable Subsidiaries.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>Plan</u>" means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is currently or hereafter sponsored, maintained or contributed to by the Borrower, a Subsidiary or, solely with respect to a plan subject to Title IV of ERISA, an ERISA Affiliate or (b) if the Borrower or a Subsidiary has liability thereunder, was at any time during the current calendar year or the six calendar years preceding the Signing Date and the Effective Date, sponsored, maintained or contributed to by the Borrower or a Subsidiary or, to which Borrower or a Subsidiary has any liability, including any liability with respect to a plan subject to Title IV of ERISA on account of an ERISA Affiliate.

"<u>Prime Rate</u>" means the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate in effect at its principal office in New York, New York; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. Such rate is set by the Administrative Agent as a general reference rate of interest, taking into account such factors as the Administrative Agent may deem appropriate; it being understood that many of the Administrative Agent's commercial or other loans are priced in relation to such rate, that it is not necessarily the lowest or best rate actually charged to any customer and that the Administrative Agent may make various commercial or other loans at rates of interest having no relationship to such rate.

"<u>Pro Forma Basis</u>" means, for purposes of calculating Consolidated Net Leverage Ratio pursuant to <u>Section</u> <u>9.02(</u><u>i</u><u>)</u>, <u>Section</u> <u>9.04(a)(iv)</u>, <u>Section</u> <u>9.04(b)(</u><u>i</u><u>)</u> and <u>Section</u> <u>9.05(n</u>), that solely with respect to any Material Acquisition, the Acquired EBITDAX with respect to such Material Acquisition (and any prior Material Acquisitions consummated after the most recently ended

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Rolling Period, and through but excluding the date on which compliance with the Consolidated Net Leverage Ratio for purposes <u>Section</u> <u>9.02(i)</u>, <u>Section</u> <u>9.04(a)(iv)</u>, <u>Section</u> <u>9.04(b)(i)</u> and <u>Section</u> <u>9.05(n</u>), as applicable, is being tested) shall be included in the calculation of EBITDAX.

"<u>Property</u>" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.

"<u>Proposed Acquisition</u>" has the meaning assigned to such term in <u>Section</u> <u>9.14(a)(i)</u>.

"<u>Proposed Borrowing Base</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(c)(i)</u>.

"<u>Proposed Borrowing Base Notice</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(c)(ii)</u>.

"<u>Proved Developed Producing Reserves</u>" means "proved developed producing oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"<u>Proved Oil and Gas Properties</u>" means Oil and Gas Properties to which Proved Reserves are attributed.

"<u>Proved Reserves</u>" means collectively, "proved oil and gas reserves," "proved developed producing oil and gas reserves," "proved developed non-producing oil and gas reserves" (consisting of proved developed shut-in oil and gas reserves and proved developed behind pipe oil and gas reserves), and "proved undeveloped oil and gas reserves," as such terms are defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Public Company Compliance</u>" means compliance with the requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, the provisions of the Securities Act and the Exchange Act, and the rules of national securities exchange listed companies (in each case, as applicable to companies with equity or debt securities held by the public), including procuring directors' and officers' insurance, legal and other professional fees, and listing fees.

"<u>PV-9</u>" means, with respect to any Proved Reserves expected to be produced from any Borrowing Base Properties, the net present value, discounted at 9% per annum, of the future net revenues expected to accrue to the Borrower's and the Restricted Subsidiaries' collective interests in such reserves during the remaining expected economic lives of such reserves, calculated in accordance with the Bank Price Deck.

"<u>Qualified ECP Guarantor</u>" means, in respect of any Swap Agreement, each Credit Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such

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Swap Agreement or grant of the relevant security interest to secure such Swap Agreement becomes effective or (b) otherwise constitutes an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"<u>RCRA</u>" has the meaning set forth in the definition of "<u>Environmental Laws</u>".

"<u>Recipient</u>" means (a) the Administrative Agent, (b) any Lender or (c) the Issuing Bank, as applicable.

"<u>Redemption</u>" means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. "<u>Redeem</u>" has the correlative meaning thereto.

"<u>Redetermination Date</u>" means, with respect to any Scheduled Redetermination or any Interim Redetermination, the date that the redetermined Borrowing Base related thereto becomes effective pursuant to <u>Section</u> <u>2.07(d)</u>.

"<u>Reference Date</u>" means February 1, 2015.

"<u>Register</u>" has the meaning assigned to such term in <u>Section</u> <u>12.04(b)(iv)</u>.

"<u>Registration Statement</u>" means that certain Form S-1 Registration Statement in the form provided to the Administrative Agent on the Signing Date and to be initially filed with the U.S. Securities and Exchange Commission on or about May 11, 2026.

"<u>Regulation</u> <u>D</u>" means Regulation D of the Board, as the same may be amended, supplemented or replaced from time to time.

"<u>Related Parties</u>" means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees, agents and advisors (including attorneys, accountants and experts) of such Person and such Person's Affiliates.

"<u>Release</u>" means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, injecting, leaching, dumping, or disposing.

"<u>Release Date</u>" means the date upon which (i) all Obligations (including, without limitation, all principal, LC Exposure, interest (including interest accruing during the pendency of an insolvency or liquidation proceeding, regardless of whether allowed or allowable in such insolvency or liquidation proceeding) and premium, if any, on all Loans, and all fees, costs, expenses and other amounts due and payable under this Agreement and the other Loan Documents) shall have been paid in full in cash (other than contingent indemnification obligations, obligations under Secured Swap Agreements and Secured Cash Management Obligations), (ii) no Letter of Credit is outstanding (other than Letters of Credit that have been cash collateralized or otherwise secured, in each case, to the satisfaction of the Issuing Bank), (iii) all of the Commitments have been terminated, (iv) each Secured Swap Agreement (including each ISDA Master Agreement) shall have been terminated in writing by the parties thereto and all amounts due and payable by the Borrower or any Restricted Subsidiary to any Secured Swap Party under each such Secured

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Swap Agreement shall have been paid in full in cash, or if any Secured Swap Agreement is outstanding, credit support arrangements acceptable in the sole discretion of the Secured Swap Party party thereto have been made to secure or provide credit support for such Secured Swap Obligations and (v) the payment in full in cash of all amounts owing under and the termination of all Secured Cash Management Obligations has occurred (other than contingent indemnification obligations and Secured Cash Management Obligations as to which arrangements satisfactory to the applicable Secured Cash Management Provider shall have been made).

"<u>Relevant Governmental Body</u>" means the Board or the NYFRB, or a committee officially endorsed or convened by the Board or the NYFRB or any successor thereto.

"<u>Remedial Work</u>" has the meaning assigned to such term in <u>Section</u> <u>8.09(a)</u>.

"<u>Required Lenders</u>" means (a) if there are fewer than three Lenders at such time, all Non-Defaulting Lenders, and (b) if there are three or more Lenders at such time, (i) at any time while no Loans or LC Exposure is outstanding, Non-Defaulting Lenders having at least sixty-six and two-thirds percent (66<sup>2</sup>⁄<sub>3</sub>%) of the Aggregate Maximum Credit Amounts of all Non-Defaulting Lenders, and (ii) at any time while any Loans or LC Exposure is outstanding, Non-Defaulting Lenders holding at least sixty-six and two-thirds percent (66<sup>2</sup>⁄<sub>3</sub>%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit of all Non-Defaulting Lenders (without regard to any sale by a Non-Defaulting Lender of a participation in any Loan under <u>Section</u> <u>12.04(c)</u>).

"<u>Required Mortgage Percentage</u>" means, (a) prior to the Discharge of Second Lien Obligations, 90% and (b) following the Discharge of Second Lien Obligations, 85%.

"<u>Required Title Percentage</u>" means, (a) prior to the Discharge of Second Lien Obligations, 90% and (b) following the Discharge of Second Lien Obligations, 85%.

"<u>Reserve Report</u>" means (a) a report, in form and substance reasonably satisfactory to the Administrative Agent, setting forth, as of each January 1st or July 1st (or such other date in the event of an Interim Redetermination) the oil and gas reserves attributable to the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries, together with a projection of the rate of production and future net income, Taxes, operating expenses and capital expenditures with respect thereto as of such date, based upon the pricing assumptions consistent with the Administrative Agent's lending requirements at the time and (b) the Initial Reserve Report.

"<u>Reserve Report Certificate</u>" means a certificate of a Responsible Officer in substantially the form of <u>Exhibit</u> <u>N</u> certifying as to the matters in <u>Section</u> <u>8.11(c)</u>.

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Responsible Officer</u>" means, as to any Person, the Chief Executive Officer, the President, any Financial Officer or any Vice President of such Person. Unless otherwise specified, all references to a Responsible Officer of the Borrower herein shall mean a Responsible Officer of the General Partner with respect to the General Partner's capacity as the general partner of the Borrower.

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"<u>Restricted Payment</u>" means (a) any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Borrower or any of its Restricted Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any of its Restricted Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any of its Restricted Subsidiaries and (b) any payment of management fees, advisory fees or similar fees by the Borrower or any Restricted Subsidiary to any holders of their Equity Interests or any Affiliates thereof.

"<u>Restricted Subsidiary</u>" means any Subsidiary of the Borrower that is not an Unrestricted Subsidiary.

"<u>Revolving Credit Exposure</u>" means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender's Loans and its LC Exposure at such time.

"<u>Rolling Period</u>" means (a) for each of the first three (3) fiscal quarters ending after the Effective Date, the applicable period commencing on the first day of the first fiscal quarter ending after the Effective Date and ending on the last day of such applicable fiscal quarter, and (b) for the fourth (4th) fiscal quarter ending after the Effective Date, and for each fiscal quarter thereafter, any period of four (4) consecutive fiscal quarters ending on the last day of such applicable fiscal quarter; provided that when used in connection with Specified EBITDAX, "Rolling Period" shall refer to the four (4) consecutive fiscal quarters ending on the last day of the fiscal quarter prior to the Effective Date.

"<u>S&P</u>" means S&P Global Ratings, a division of S&P Global Inc., and any successor thereto that is a nationally recognized rating agency.

"<u>Sanctioned Country</u>" means, at any time, a country, region or territory which is itself the target of comprehensive Sanctions (which include, as of the Signing Date, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the Crimea region of Ukraine, Cuba, Iran, and North Korea).

"<u>Sanctioned Person</u>" means, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC (including OFAC's Specially Designated Nationals and Blocked Persons List and OFAC's Consolidated Non-SDN List), the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, or His Majesty's Treasury (b) any Person operating, organized or ordinarily resident in a Sanctioned Country, (c) a government or governmental authority of a Sanctioned Country or Venezuela, (d) any Person owned or controlled by as "owned" and "controlled" are defined or interpreted under the relevant Sanctions, or acting or purporting to act for or on behalf of, directly or indirectly, any such Person or Persons described in clauses (a), (b) and (c), including a Person that is deemed by OFAC to be a Sanctions target based on the ownership of such legal entity by Sanctioned Person(s), or (e) any Person otherwise a target of Sanctions, including vessels and aircraft, that are designated under any Sanctions program.

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"<u>Sanctions</u>" means any and all economic or financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes and restrictions imposed, administered or enforced from time to time by the U.S. government (including those administered by OFAC or the U.S. Department of State), the United Nations Security Council, the European Union, any European Union member state, and His Majesty's Treasury.

"<u>Same Day Funds</u>" means with respect to disbursements and payments in Dollars, immediately available funds.

"<u>Scheduled Redetermination</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(b)</u>.

"<u>Scheduled Redetermination Date</u>" means the date on which a Borrowing Base that has been redetermined pursuant to a Scheduled Redetermination becomes effective as provided in <u>Section</u> <u>2.07(d)</u>.

"<u>SEC</u>" means the Securities and Exchange Commission or any successor Governmental Authority.

"<u>Second Lien Agent</u>" means U.S. Bank Trust Company, National Association, as agent and collateral agent for the holders of the Notes under the Second Lien Note Purchase Agreement, together with its successors and assigns in such capacity under the applicable Second Lien Note Documents.

"<u>Second Lien Intercreditor Agreement</u>" means that certain Intercreditor Agreement, dated as of the Effective Date, between the Administrative Agent, as administrative agent for the First Lien Secured Parties (as defined therein), and the Second Lien Agent, as administrative agent for the Second Lien Secured Parties (as defined therein), and acknowledged and agreed by the Borrower and the Guarantors, which shall be in form and substance satisfactory to the Administrative Agent, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified in accordance with the terms thereof.

"<u>Second Lien Note Documents</u>" means the Second Lien Note Purchase Agreement and each other "Note Document" as defined in the Second Lien Note Purchase Agreement, and any other note documents entered into in connection therewith, including, without limitation, the Second Lien Intercreditor Agreement, any promissory notes, mortgages, deeds of trust, security agreements and instruments, guarantees, collateral or credit support documents, and any other agreements, instruments consents or certificates executed by the Parent, the General Partner, the Borrower, or any of the Restricted Subsidiaries or any Guarantor in connection with, or as security for the payment or performance of, any Second Lien Notes, which, in each case, shall be in form and substance satisfactory to the Administrative Agent, in each case, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

"<u>Second Lien Note Purchase Agreement</u>" means that certain Amended and Restated Note Purchase Agreement, dated as of May 20, 2026, by and among the Borrower, as issuer, the Second Lien Agent, and the other parties thereto from time to time, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

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"<u>Second Lien Notes</u>" means the "Notes" as defined in the Second Lien Note Purchase Agreement, which Debt is intended to be secured on a junior basis by any Collateral securing the Obligations; provided that such Debt is permitted to be incurred and remain outstanding hereunder pursuant to <u>Section</u> <u>9.02(j)</u> and any Liens securing such Debt are permitted pursuant to <u>Section</u> <u>9.03(d)</u>, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

"<u>Second Lien Obligations</u>" means the Second Lien Notes and any other obligations of the Borrower or any of its Restricted Subsidiaries under the Second Lien Note Documents.

"<u>Secured Cash Management Agreement</u>" means a Cash Management Agreement between (a) the Borrower or any Restricted Subsidiary and (b) a Secured Cash Management Provider.

"<u>Secured Cash Management Obligations</u>" means any and all amounts and other obligations owing by the Borrower or any Restricted Subsidiary to any Secured Cash Management Provider under any Secured Cash Management Agreement.

"<u>Secured Cash Management Provider</u>" means a Lender, an Affiliate of a Lender, the Administrative Agent or an Affiliate of the Administrative Agent.

"<u>Secured Parties</u>" means, collectively, the Agents, the Lenders, the Issuing Bank, the Secured Cash Management Providers and Secured Swap Parties, and "<u>Secured Party</u>" means any of them individually.

"<u>Secured Swap Agreement</u>" means (a) any Swap Agreement between the Borrower or any Restricted Subsidiary and any Person that is entered into prior to the time, or during the time, that such Person was, a Lender or an Affiliate of a Lender (including any such Swap Agreement in existence prior to the Signing Date and the Effective Date), even if such Person subsequently ceases to be a Lender (or an Affiliate of a Lender) for any reason (any such Person, a "<u>Secured Swap Party</u>"); *provided* that, for the avoidance of doubt, the term "Secured Swap Agreement" shall not include any Swap Agreement or transactions under any Swap Agreement entered into after the time that such Secured Swap Party ceases to be a Lender or an Affiliate of a Lender; and (b) the Citadel Permitted Existing Trades.

"<u>Secured Swap Obligations</u>" means all amounts and other obligations owing to any Secured Swap Party under any Secured Swap Agreement (other than Excluded Swap Obligations) including the Citadel Permitted Existing Trades.

"<u>Secured Swap Party</u>" has the meaning assigned to such term in the definition of Secured Swap Agreement; *provided* that, solely with respect to the Citadel Permitted Existing Trades, "Secured Swap Party" means Citadel.

"<u>Securities Account</u>" shall have the meaning set forth in Article 8 of the UCC.

"<u>Security Instruments</u>" means the Guarantee and Collateral Agreement, the Mortgages, the Control Agreements, the Second Lien Intercreditor Agreement, and any and all other agreements, instruments, consents or certificates now or hereafter executed and delivered by the Borrower or any other Person (other than Swap Agreements with the Lenders or any Affiliate of a Lender or

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participation or similar agreements between any Lender and any other lender or creditor with respect to any Obligations pursuant to this Agreement) in connection with, or as security for the payment or performance of the Obligations, the Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements may be amended, modified, supplemented or restated from time to time.

"<u>Senior Note Documents</u>" means any indenture or other loan agreement governing any Senior Notes or any Permitted Refinancing Debt, all guarantees thereof and all other agreements, documents, instruments and notes executed and delivered by the Parent, the General Partner, the Borrower or any Restricted Subsidiary or any Guarantor in connection with, or pursuant to, the incurrence of any such Debt, as the same may be amended, modified or supplemented to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

"<u>Senior Notes</u>" has the meaning assigned to such term in <u>Section</u> <u>9.02(i)</u>.

"<u>Series B Preferred Shares</u>" means the 50,000 shares of preferred stock designated as "Series B Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series B Preferred Stock of the Parent, dated as of February 1, 2024, as the same may from time to time be amended or modified to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Series D Preferred Shares</u>" means the 37,780 shares of preferred stock designated as "Series D Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series D Preferred Stock of the Parent, dated as of March 30, 2026, as the same may from time to time be amended or modified to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Signing Date</u>" means the date on which the conditions specified in <u>Section</u> <u>6.01</u> are satisfied (or waived in accordance with <u>Section</u> <u>12.02</u>).

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"<u>SOFR Administrator</u>" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Loan</u>" means any Loan bearing interest at a rate based on Term SOFR as provided in <u>Section</u> <u>3.02(b)</u> (but excluding for the avoidance of doubt any ABR Loan bearing interest based on Term SOFR pursuant to clause (c) of the definition of Alternate Base Rate).

"<u>Sold Entity or Business</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Solvent</u>" means, with respect to any Person(s) as of any date, that (a) the aggregate value of the assets of such Person(s) (after giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) (both at fair value and present fair saleable value) is, on the date of determination, greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person(s) as of such date, (b) as of such date, such Person(s) is able to pay all liabilities (after taking into account the timing and amounts of cash it reasonably expects could be received and the amounts that it reasonably

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expects could be payable on or in respect of its liabilities, and giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) of such Person(s) as such liabilities mature, and (c) as of such date, such Person(s) does not have unreasonably small capital given the nature of its business. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"<u>Specified EBITDAX</u>" means (prior to giving effect to any Pro Forma Basis adjustments) (a) prior to the date when the financial statements for the fiscal quarter ended March 31, 2026 are delivered, $82,800,000 and (b) thereafter until the first delivery of financial statements pursuant to Section 8.01(b), Specified EBITDAX shall be calculated by multiplying EBITDAX for the fiscal quarter ended March 31, 2026 times four. 

"<u>Specified Equity Contribution</u>" means, an amount equal to, without duplication, the amount of any capital contributions made in cash to, or any cash proceeds of an issuance of Equity Interests of the Borrower (other than Disqualified Capital Stock) received by, the Borrower during the applicable Cure Period that are made for the purpose of exercising the equity cure rights set forth in <u>Section</u> <u>9.01(c)</u>.

"<u>Subsidiary</u>" means, with respect to any Person (the "<u>parent</u>") at any date, any other Person the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than 50% of the equity or more than 50% of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly, indirectly through one or more intermediaries, or both, by the parent. Unless otherwise specified, each reference to "Subsidiary" shall mean a Subsidiary of the Borrower.

"<u>Subsidiary Guarantor</u>" means any Restricted Subsidiary of the Borrower that is a Guarantor.

"<u>Supermajority Lenders</u>" means (a) if there are fewer than three Lenders at such time, all Non-Defaulting Lenders, and (b) if there are three or more Lenders at such time, (i) at any time while no Loans or LC Exposure is outstanding, Non-Defaulting Lenders having more than eighty-five percent (85%) of the Aggregate Maximum Credit Amounts of all Non-Defaulting Lenders and (ii) at any time while any Loans or LC Exposure is outstanding, Non-Defaulting Lenders holding more than eighty-five percent (85%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit of all Non-Defaulting Lenders (without regard to any sale by a Non-Defaulting Lender of a participation in any Loan under <u>Section</u> <u>12.04(c)</u>).

"<u>Swap Agreement</u>" means any agreement with respect to any swap, forward, collar, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise (for the avoidance of doubt, including on a prepaid basis), involving, or

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settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act); *provided* that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or its Subsidiaries shall be a Swap Agreement.

"<u>Swap Agreement Certificate</u>" has the meaning assigned to such term in <u>Section</u> <u>8.01(e)</u>.

"<u>Swap PV</u>" means, with respect to any Swap Agreement in respect of commodities, the present value, discounted at 9% per annum, of the future receipts expected to be paid to the Borrower or its Restricted Subsidiaries under such Swap Agreement based on the Bank Price Deck; *provided*, that the "Swap PV" shall never be less than $0.00.

"<u>Swap Termination Value</u>" means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined by the counterparties to such Swap Agreements.

"<u>Synthetic Leases</u>" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of United States federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.

"<u>Tax</u>" or "<u>Taxes</u>" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term SOFR</u>" means,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the "<u>Periodic Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; *provided*, *however*, that if as of 5:00 p.m. (Eastern time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such

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tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any calculation with respect to an ABR Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "<u>Alternate Base Rate Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; *provided*, *however*, that if as of 5:00 p.m. (Eastern time) on any Alternate Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Alternate Base Rate Term SOFR Determination Day;

*provided*, *further*, that if Term SOFR determined as provided above (including pursuant to the proviso under <u>clause (a)</u> or <u>clause (b)</u> above) shall be less than the Floor, then Term SOFR shall be deemed to be the Floor.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Termination Date</u>" means the earlier of the Maturity Date and the date of termination of the Commitments.

"<u>Threshold Amount</u>" means, at any time, the greater of (A) $10,000,000 and (B) 5% of the Borrowing Base then in effect.

"<u>Total Debt</u>" means, as of any date of determination, the sum of (without duplication) the aggregate principal amount of Debt of the Borrower and its Consolidated Restricted Subsidiaries outstanding on such date, but consisting only of Debt (i) of the type described in clauses (a) (including the Loans), (b) (but only to the extent such letters of credit, surety or other bonds and similar agreements have been drawn and have not been reimbursed within two (2) Business Days after the date of such drawing), (c), (d), (e) and (j) of the definition of "Debt"; (ii) of the type described in clause (f) of the definition of "Debt" to the extent such Liens secure Debt of the type described in clauses (a), (b), (d), (e) and (j) of the definition of "Debt"; and (iii) of the type described in clause (g) of the definition of "Debt" to the extent such guarantee is of Debt of the type described in clauses (a), (b), (d), (e) and (j) of the definition of "Debt".

"<u>Total Net Debt</u>" means, on any date of determination, (a) Total Debt <u>minus</u> (b) the positive difference (if any) of (i) the aggregate amount of Unrestricted Cash not to exceed the lesser of (A)

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10% of the Borrowing Base in effect on such date and (B) $25,000,000 <u>minus</u> (ii) the amount of any Borrowing Base Deficiency existing as of such date of determination.

"<u>Total Revolving Credit Exposures</u>" means, at any time, the amount of the Revolving Credit Exposures of all of the Lenders.

"<u>Transaction Expenses</u>" means any out-of-pocket fees or expenses incurred or paid by the Borrower or any of its Restricted Subsidiaries in connection with the Transactions, this Agreement and the other Loan Documents.

"<u>Transactions</u>" means (a) with respect to the Borrower, the execution, delivery and performance by the Borrower of this Agreement and each other Loan Document to which it is a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens by the Borrower on its Properties (including Mortgaged Properties) pursuant to the Security Instruments, (b) with respect to each Guarantor, the execution, delivery and performance by such Guarantor of each Loan Document to which it is a party, the guaranteeing of the Obligations and the other obligations under the Guarantee and Collateral Agreement by such Guarantor and such Guarantor's grant of Liens on its Properties (including Mortgaged Properties) pursuant to the Security Instruments, (c) with respect to the Parent, the execution, delivery and performance by the Parent of each Loan Document to which it is a party, (d) with respect to the General Partner, the execution, delivery and performance by the General Partner of each Loan Document to which it is a party, (e) the execution, delivery and performance by the Borrower of the Second Lien Notes and by the Parent, the General Partner, the Borrower, and each Guarantor of each other Second Lien Note Document to which it is a party, the issuance of the Second Lien Notes thereunder, the use of proceeds thereof and the grant of second-priority Liens by the Parent, the General Partner, the Borrower, and the Guarantors pursuant to the Second Lien Note Documents, (f) the Effective Date Initial Public Offering and the use of proceeds thereof, (g) the Existing Notes Prepayment, and (h) the payment of Transaction Expenses.

"<u>Type</u>", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Alternate Base Rate or Term SOFR.

"<u>U.S.</u> <u>Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities; *provided*, that for purposes of notice requirements in <u>Section</u> <u>2.03</u>, <u>Section</u> <u>2.04(b)</u> and <u>Section</u> <u>2.09(b)</u>, in each case, such day is also a Business Day.

"<u>U.S.</u> <u>Person</u>" means (a) for purposes of <u>Section</u> <u>7.26</u> and <u>Section</u> <u>9.18</u> of this Agreement, any United States citizen, lawful permanent resident, entity organized under the laws of the United States or any jurisdiction within the United States, including any foreign branch of any such entity, or any person in the United States, and (b) for all other purposes, any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

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"<u>U.S.</u> <u>Tax Compliance Certificate</u>" has the meaning assigned to such term in <u>Section</u> <u>5.03(f)(ii)(B)(3)</u>.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Unrestricted Cash</u>" means cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries that would not appear as "restricted" on a consolidated balance sheet of the Borrower or any of its Restricted Subsidiaries; *provided* that cash or Cash Equivalents that would appear as "restricted" on a consolidated balance sheet of the Borrower or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement shall constitute Unrestricted Cash hereunder.

"<u>Unrestricted Subsidiary</u>" means any Subsidiary of the Borrower designated as such on <u>Schedule</u> <u>7.13</u> or which the Borrower has designated in writing to the Administrative Agent to be an Unrestricted Subsidiary pursuant to <u>Section</u> <u>9.15</u>.

"<u>Unused Availability</u>" means at any time an amount equal to (a) the Loan Limit at such time, *<u>minus</u>* (b) the Total Revolving Credit Exposure of all Lenders at such time.

"<u>Utilization Percentage</u>" means, as of any day, the fraction expressed as a percentage, the numerator of which is the Total Revolving Credit Exposures on such day, and the denominator of which is the Loan Limit in effect on such day.

"<u>Wholly-Owned Subsidiary</u>" means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than any directors' qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or are owned by the Borrower and one or more of the Wholly-Owned Subsidiaries.

"<u>Withholding Agent</u>" means any Credit Party or the Administrative Agent.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of

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that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

**Section 1.03 <u>Types of Loans and Borrowings</u>**. For purposes of this Agreement, Loans and Borrowings, respectively, may be classified and referred to by Type (*e.g.*, a "SOFR Loan" or a "SOFR Borrowing").

**Section 1.04 <u>Terms Generally; Rules of Construction</u>**. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" as used in this Agreement shall be deemed to be followed by the phrase "without limitation". The word "will" as used in this Agreement shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented, restated or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth in the Loan Documents), (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time, (c) any reference herein to any Person shall be construed to include such Person's successors and assigns (subject to the restrictions contained in the Loan Documents), (d) the words "herein", "hereof" and "hereunder", and words of similar import as used in this Agreement, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of any time period, the word "from" as used in this Agreement means "from and including" and the word "to" means "to and including," and (f) any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision.

**Section 1.05 <u>Accounting Terms and Determinations; GAAP</u>**. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements and certificates and reports as to financial matters required to be furnished to the Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP, applied on a consistent basis, except for changes in which Borrower's independent certified public accountants concur and which are disclosed to Administrative Agent on the next date on which financial statements are required to be delivered to the Lenders pursuant to <u>Section</u> <u>8.01(a)</u>; *provided* that, unless the Borrower and the Majority Lenders shall otherwise agree in writing, no such change shall modify or affect the manner in which compliance with the covenants contained herein is computed such that all such computations shall be conducted utilizing financial information presented consistently with prior periods. Notwithstanding anything herein to the contrary, for the purposes of calculating any of the ratios tested under <u>Section</u> <u>9.01</u>, and the components of each of such ratios, all Unrestricted Subsidiaries, and their Subsidiaries (including their assets, liabilities, income, losses, cash flows, and the elements thereof) shall be excluded, except for any cash dividends or

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distributions actually paid in cash by any Unrestricted Subsidiary or any of its Subsidiaries to the Borrower or any Restricted Subsidiary, which shall be deemed to be income to the Borrower or such Restricted Subsidiary when actually received by it.

**Section 1.06 <u>Rates</u>**. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Term SOFR Reference Rate or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or with respect to any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to <u>Section</u> <u>3.03(c)</u>, will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Term SOFR Reference Rate, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its Affiliates or other related entities may engage in transactions that affect the calculation of the Term SOFR Reference Rate, Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto and such transactions may be adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Term SOFR Reference Rate or Term SOFR, or any other Benchmark, any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

**Section 1.07 <u>Divisions</u>**. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

**ARTICLE II** 

**THE CREDITS** 

**Section 2.01 <u>Commitments</u>**. Subject to the terms and conditions set forth herein, each Lender severally agrees to make Loans in dollars to the Borrower during the Availability Period in an aggregate principal amount that will not result in (a) such Lender's Revolving Credit Exposure exceeding such Lender's Commitment or (b) the Total Revolving Credit Exposures exceeding the Loan Limit then in effect. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, repay and reborrow the Loans.

**Section 2.02 <u>Loans and Borrowings</u>**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Borrowings; Several Obligations</u>. Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; *provided* that the Commitments are several and no Lender shall be responsible for any other Lender's failure to make Loans as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Types of Loans</u>. Subject to <u>Section</u> <u>3.03</u>, each Borrowing shall be comprised entirely of ABR Loans or SOFR Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any SOFR Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; *provided* that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Minimum Amounts; Limitation on Number of Borrowings</u>. At the commencement of each Interest Period for any SOFR Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $500,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $500,000; *provided* that an ABR Borrowing may be in an aggregate amount that is equal to the entire Unused Availability or that is required to finance the reimbursement of an LC Disbursement as contemplated by <u>Section</u> <u>2.08(e)</u>. Borrowings of more than one Type may be outstanding at the same time, *provided* that there shall not at any time be more than a total of seven (7) SOFR Borrowings outstanding. Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any SOFR Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notes</u>. If requested by a Lender, the Loans made by each Lender shall be evidenced by a single promissory note of the Borrower in substantially the form of <u>Exhibit</u> <u>A</u>, dated, in the case of (i) any Lender party hereto as of the Effective Date, as of the Effective Date, (ii) any Lender that becomes a party hereto pursuant to an Assignment and Assumption or amendment or other modification to this Agreement, as of the effective date of the Assignment and Assumption, amendment or other modification, or (iii) any Additional Lender that becomes a party hereto in connection with an increase in the Aggregate Elected Commitment Amounts pursuant to <u>Section</u> <u>2.06(c)</u>, as of the effective date of such increase, as applicable, payable to such Lender or its registered assigns in a principal amount equal to its Maximum Credit Amount as in effect on such date, and otherwise duly completed. In the event that any Lender's Maximum Credit Amount increases or decreases for any reason, the Borrower shall, upon request by a Lender then holding a Note, deliver or cause to be delivered, to the extent such Lender is then holding a Note, on the effective date of such increase or decrease and upon the agreement of such Lender to promptly return or destroy its original Note, a new Note payable to such Lender or its registered assigns in a principal amount equal to its Maximum Credit Amount after giving effect to such increase or decrease, and otherwise duly completed. The date, amount, Type, interest rate and, if applicable, Interest Period of each Loan made by each Lender, and all payments made on account of the principal thereof, shall be recorded by such Lender on its books or its Note(s). Failure to make any such recordation shall not affect any Lender's or the Borrower's rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of its Note(s).

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**Section 2.03 <u>Requests for Borrowings</u>**. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by submitting a Borrowing Request in writing (a) in the case of a SOFR Borrowing, not later than 12:00 noon, Houston, Texas time, three U.S. Government Securities Business Days before the date of the proposed Borrowing (or in the case of any Borrowing on the Effective Date, no later than 12:00 noon, Houston, Texas time on the Business Day immediately preceding the Effective Date) or (b) in the case of an ABR Borrowing, not later than 12:00 noon, Houston, Texas time, on the date of the proposed Borrowing; *provided* that no such notice shall be required for any deemed request of an ABR Borrowing to finance the reimbursement of an LC Disbursement as provided in <u>Section</u> <u>2.08(e)</u>. Each such Borrowing Request shall be irrevocable and shall be signed by a Responsible Officer of the Borrower. Each such Borrowing Request shall specify the following information in compliance with <u>Section</u> <u>2.02</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate amount of the requested Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the date of such Borrowing, which shall be a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) whether such Borrowing is to be an ABR Borrowing or a SOFR Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a SOFR Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "<u>Interest Period</u>";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the amount of the then effective Borrowing Base, the amount of the then effective Aggregate Elected Commitment Amounts, the current Total Revolving Credit Exposures (without regard to the requested Borrowing), and the Total Revolving Credit Exposures, on a pro forma basis (giving effect to the requested Borrowing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Consolidated Cash Balance (without regard to the requested Borrowing) and the *pro forma* Consolidated Cash Balance (giving effect to the requested Borrowing and identifying in reasonable detail any amounts to be excluded from Consolidated Cash Balance pursuant to clauses (ii) and (iv) of the definition of Consolidated Cash Balance); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of <u>Section</u> <u>2.05</u>.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested SOFR Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month's duration. Each Borrowing Request shall constitute a representation by the Borrower that (a) the amount of the requested Borrowing shall not cause the Total Revolving Credit Exposures to exceed the Loan Limit and (b) after giving *pro forma* effect to such requested Borrowing and the use of proceeds thereof, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold.

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Promptly following receipt of a Borrowing Request in accordance with this <u>Section</u> <u>2.03</u>, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing.

**Section 2.04 <u>Interest Elections</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion and Continuance</u>. Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a SOFR Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a SOFR Borrowing, may elect Interest Periods therefor, all as provided in this <u>Section</u> <u>2.04</u>. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Election Requests</u>. To make an election pursuant to this <u>Section</u> <u>2.04</u>, the Borrower shall notify the Administrative Agent of such election by submitting an Interest Election Request in writing by the time that a Borrowing Request would be required under <u>Section</u> <u>2.03</u> if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such Interest Election Request shall be irrevocable and shall be signed by a Responsible Officer of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Information in Interest Election Requests</u>. Each telephonic and written Interest Election Request shall specify the following information in compliance with <u>Section</u> <u>2.02</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to <u>Section</u> <u>2.04(c)(iii)</u> and (iv) shall be specified for each resulting Borrowing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) whether the resulting Borrowing is to be an ABR Borrowing or a SOFR Borrowing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the resulting Borrowing is a SOFR Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term "Interest Period".

If any such Interest Election Request requests a SOFR Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month's duration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice to Lenders by the Administrative Agent</u>. Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender's portion of each resulting Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Effect of Failure to Deliver Timely Interest Election Request and Events of Default on Interest Election</u>. If the Borrower fails to deliver a timely Interest Election Request with respect to a SOFR Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be continued as of the last day of the Interest Period applicable to such Borrowing as a SOFR Borrowing having an Interest Period with a tenor of the same length as such immediately preceding Interest Period applicable thereto and then ended. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing: (i) no outstanding Borrowing may be converted to or continued as a SOFR Borrowing (and any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a SOFR Borrowing shall be ineffective) and (ii) unless repaid, each SOFR Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

**Section 2.05 <u>Funding of Borrowings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Funding by Lenders</u>. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., Houston, Texas time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower subject, from and after the Control Agreement Delivery Date, to a Control Agreement and designated by the Borrower in the applicable Borrowing Request; *provided* that ABR Loans made to finance the reimbursement of an LC Disbursement as provided in <u>Section</u> <u>2.08(e)</u> shall be remitted by the Administrative Agent to the Issuing Bank. Nothing herein shall be deemed to obligate any Lender to obtain the funds for its Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for its Loan in any particular place or manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Presumption of Funding by the Lenders</u>. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.05(a)</u> and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender's Loan included in such Borrowing.

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**Section 2.06 <u>Termination and Reduction of Aggregate Maximum Credit Amounts; Increase, Reduction and Termination of Aggregate Elected Commitment Amounts</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Scheduled Termination of Commitments</u>. Unless previously terminated, the Commitments shall terminate on the Maturity Date. If the Aggregate Maximum Credit Amounts, the Aggregate Elected Commitment Amounts or the Borrowing Base is terminated or reduced to zero, then the Commitments shall terminate on the effective date of such termination or reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Optional Termination and Reduction of Aggregate Maximum Credit Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower may at any time terminate, or from time to time reduce, the Aggregate Maximum Credit Amounts; *provided* that (A) each reduction of the Aggregate Maximum Credit Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000, (B) the Borrower shall not terminate or reduce the Aggregate Maximum Credit Amounts if, (1) after giving effect to any concurrent prepayment of the Loans in accordance with <u>Section</u> <u>3.04(c)</u>, the Total Revolving Credit Exposures would exceed the Loan Limit or (2) the Aggregate Maximum Credit Amounts would be less than $10,000,000 (unless, with respect to this clause (2), the Aggregate Maximum Credit Amounts are reduced to $0.00), and (C) upon any reduction of the Aggregate Maximum Credit Amounts that would otherwise result in the Aggregate Maximum Credit Amounts being less than the Aggregate Elected Commitment Amounts, the Aggregate Elected Commitment Amounts shall be automatically reduced (ratably among the Lenders in accordance with each Lender's Applicable Percentage) so that they equal the Aggregate Maximum Credit Amounts as so reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Maximum Credit Amounts under <u>Section</u> <u>2.06(b)(i)</u> at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this <u>Section</u> <u>2.06(b)(ii)</u> shall be irrevocable; *provided* that a notice of termination of the Aggregate Maximum Credit Amounts delivered by the Borrower may state that such notice is conditioned upon the occurrence of one or more specified events (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such specified event(s) do not occur. Any termination or reduction of the Aggregate Maximum Credit Amounts shall be permanent and may not be reinstated. Each reduction of the Aggregate Maximum Credit Amounts shall be made ratably among the Lenders in accordance with each Lender's Applicable Percentage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Optional Increases, Reductions and Terminations of Aggregate Elected Commitment Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the conditions set forth in <u>Section</u> <u>2.06(c)(ii)</u>, the Borrower may, from time to time, increase the Aggregate Elected Commitment Amounts then in effect by increasing the Elected Commitment of a Lender or by causing a Person that is reasonably

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acceptable to the Administrative Agent and the Issuing Bank that at such time is not a Lender to become a Lender (any such Person that is not at such time a Lender and becomes a Lender, an "<u>Additional Lender</u>"). Notwithstanding anything to the contrary contained in this Agreement, in no case shall an Additional Lender be the Borrower, an Affiliate of the Borrower or a natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any increase in the Aggregate Elected Commitment Amounts shall be subject to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such increase shall not be less than $5,000,000 (and shall be in increments of $1,000,000 above such minimum amount) unless the Administrative Agent otherwise consents, and no such increase shall be permitted if after giving effect thereto the Aggregate Elected Commitment Amounts exceed the lesser of the Aggregate Maximum Credit Amounts or the Borrowing Base then in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) no Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing on the effective date of such increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) to the extent that there are any SOFR Borrowings outstanding, the effective date of such increase shall be, at the option of the Borrower, either (x) the last day of the Interest Period in respect of such SOFR Borrowings or (y) such earlier date selected by the Borrower *provided* that the Borrower shall pay compensation as required by <u>Section</u> <u>5.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) no Lender's Elected Commitment may be increased without the consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) if the Borrower elects to increase the Aggregate Elected Commitment Amounts by increasing the Elected Commitment of a Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of <u>Exhibit</u> <u>I</u> (an "<u>Elected Commitment Increase Certificate</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if the Borrower elects to increase the Aggregate Elected Commitment Amounts by causing an Additional Lender to become a party to this Agreement, then the Borrower and such Additional Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of <u>Exhibit</u> <u>J</u> (an "<u>Additional Lender Certificate</u>"), together with an Administrative Questionnaire and a processing and recordation fee of $3,500 (*provided* that the Administrative Agent may, in its discretion, elect to waive such processing and recordation fee in connection with any such increase), and the Borrower shall (1) if requested by the Additional Lender, deliver a Note payable to such Additional Lender (or its registered assigns) in a principal amount equal to its Maximum Credit Amount, and otherwise duly completed and (2) pay any applicable fees as may have been agreed to between the Borrower and the Additional Lender and, to the extent applicable, the Administrative Agent

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) the Borrower shall deliver or cause to be delivered any customary legal opinions or other documents (including, without limitation, a resolution duly adopted by the board of directors (or equivalent governing body) of each Credit Party authorizing such increase in the Aggregate Elected Commitment Amounts) reasonably requested by Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to acceptance and recording thereof pursuant to <u>Section</u> <u>2.06(c)(iv)</u>, from and after the effective date specified in the Elected Commitment Increase Certificate or the Additional Lender Certificate (or if any SOFR Borrowings are outstanding, then the last day of the Interest Period in respect of such SOFR Borrowings, unless the Borrower has paid any compensation required by <u>Section</u> <u>5.02</u>): (A) the amount of the Aggregate Elected Commitment Amounts shall be increased as set forth therein, (B) in the case of an Additional Lender Certificate, any Additional Lender party thereto shall become a party to this Agreement and have the rights and obligations of a Lender under this Agreement and the other Loan Documents and (C) the Lender or the Additional Lender, as applicable, shall purchase a pro rata portion of the outstanding Loans (and participation interests in Letters of Credit) of each of the other Lenders (and such Lenders hereby agree to sell and to take all such further action to effectuate such sale) such that each Lender (including any Additional Lender, if applicable) shall hold its Applicable Percentage of the outstanding Loans (and participation interests) after giving effect to the increase in the Aggregate Elected Commitment Amounts (and the resulting modifications of each Lender's Maximum Credit Amount pursuant to <u>Section</u> <u>2.06(c)(iv)</u> or <u>Section</u> <u>2.06(c)(v)</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon its receipt of a duly completed Elected Commitment Increase Certificate or an Additional Lender Certificate, executed by the Borrower and the Lender or by the Borrower and the Additional Lender party thereto, as applicable, the processing and recording fee referred to in <u>Section</u> <u>2.06(c)(ii)</u>, the Administrative Questionnaire referred to in <u>Section</u> <u>2.06(c)(ii)</u> and the break-funding payments from the Borrower, if any, required by <u>Section</u> <u>5.02</u>, if applicable, the Administrative Agent shall accept such Elected Commitment Increase Certificate or Additional Lender Certificate and record the information contained therein in the Register required to be maintained by the Administrative Agent pursuant to <u>Section</u> <u>12.04(b)(iv)</u>. No increase in the Aggregate Elected Commitment Amounts shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this <u>Section</u> <u>2.06(c)(iv)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Upon any increase in the Aggregate Elected Commitment Amounts pursuant to this <u>Section</u> <u>2.06(c)</u>, (A) each Lender's Maximum Credit Amount shall be automatically deemed amended to the extent necessary so that each such Lender's Applicable Percentage equals the percentage of the Aggregate Elected Commitment Amounts represented by such Lender's Elected Commitment, in each case after giving effect to such increase, and (B) <u>Annex I</u> to this Agreement shall be deemed amended to reflect the Elected Commitment of each Lender (including any Additional Lender) as thereby increased, any changes in the Lenders' Maximum Credit Amounts pursuant to the foregoing clause (A), and any resulting changes in the Lenders' Applicable Percentages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Borrower may from time to time terminate or reduce the Aggregate Elected Commitment Amounts; *provided* that (A) each reduction of the Aggregate Elected

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Commitment Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $1,000,000 and (B) the Borrower shall not reduce the Aggregate Elected Commitment Amounts if, after giving effect to any concurrent prepayment of the Loans in accordance with <u>Section</u> <u>3.04(c)</u>, the Total Revolving Credit Exposures would exceed the Aggregate Elected Commitment Amounts as reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Elected Commitment Amounts under <u>Section</u> <u>2.06(c)(vi)</u> at least three (3) Business Days prior to the effective date of such termination or reduction (or such lesser period as may be reasonably acceptable to the Administrative Agent), specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this <u>Section</u> <u>2.06(c)(vii)</u> shall be irrevocable; provided that such notice may state that it is conditioned upon the occurrence of one or more specified events (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such specified event(s) do not occur. Any termination or reduction of the Aggregate Elected Commitment Amounts shall be permanent and may not be reinstated, except pursuant to <u>Section</u> <u>2.06(c)(i)</u>. Each reduction of the Aggregate Elected Commitment Amounts shall be made ratably among the Lenders in accordance with each Lender's Applicable Percentage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Upon any redetermination or other adjustment in the Borrowing Base pursuant to this Agreement that would otherwise result in the Borrowing Base becoming less than the Aggregate Elected Commitment Amounts, the Aggregate Elected Commitment Amounts shall be automatically reduced (ratably among the Lenders in accordance with each Lender's Applicable Percentage) so that they equal such redetermined Borrowing Base (and <u>Annex I</u> shall be deemed amended to reflect such amendments to each Lender's Elected Commitment and the Aggregate Elected Commitment Amounts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Contemporaneously with any increase in the Borrowing Base pursuant to this Agreement (or if any SOFR Borrowings are outstanding, then the last day of the Interest Period in respect of such SOFR Borrowings, unless the Borrower has paid any compensation required by <u>Section</u> <u>5.02</u>), if (A) the Borrower elects to increase the Aggregate Elected Commitment Amounts and (B) each Lender has consented to such increase in its Elected Commitment, then the Aggregate Elected Commitment Amounts shall be increased (ratably among the Lenders in accordance with each Lender's Applicable Percentage) by the amount requested by the Borrower (subject to the limitations set forth in <u>Section</u> <u>2.06(c)(ii)(A)</u>) without the requirement that any Lender deliver an Elected Commitment Increase Certificate, and <u>Annex I</u> shall be deemed amended to reflect such amendments to each Lender's Elected Commitment and the Aggregate Elected Commitment Amounts. The Administrative Agent shall record the information regarding such increases in the Register required to be maintained by the Administrative Agent pursuant to <u>Section</u> <u>12.04(b)(iv)</u>.

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**Section 2.07 <u>Borrowing Base</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Effective Date Borrowing Base</u>. For the period from (and including) the Effective Date to (but excluding) the first Redetermination Date, the amount of the Borrowing Base shall be $150,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments between the Effective Date and the first Scheduled Redetermination and in between subsequent Scheduled Redeterminations from time to time pursuant to <u>Section</u> <u>2.07(e)</u>, <u>Section</u> <u>2.07(f)</u> or <u>Section</u> <u>8.12(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Scheduled and Interim Redeterminations</u>. The Borrowing Base shall be redetermined semi-annually in accordance with this <u>Section</u> <u>2.07</u> (each, a "<u>Scheduled Redetermination</u>"), and, subject to <u>Section</u> <u>2.07(d)</u>, such redetermined Borrowing Base shall become effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders semi-annually on April 15th and October 15th of each year (or, in each case, such date promptly thereafter as reasonably practicable) commencing October 15, 2026. In addition (i)(A) the Borrower may, by notifying the Administrative Agent thereof, and (B) the Administrative Agent may, following the first Scheduled Redetermination hereunder, at the direction of the Required Lenders, by notifying the Borrower thereof, each elect one time to cause the Borrowing Base to be redetermined between Scheduled Redeterminations and (ii) the Borrower may elect, by notifying the Administrative Agent of any acquisition or acquisitions (including in connection with the designation of an Unrestricted Subsidiary as a Restricted Subsidiary) of Oil and Gas Properties by the Borrower or any other Credit Party with a PV-9 in the aggregate of at least five percent (5%) of the then effective Borrowing Base, to cause the Borrowing Base to be redetermined between Scheduled Redeterminations. Each redetermination of the Borrowing Base pursuant to the immediately preceding sentence is referred to herein as an "<u>Interim Redetermination</u>" and shall be effectuated in accordance with this <u>Section</u> <u>2.07</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Scheduled and Interim Redetermination Procedure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Scheduled Redetermination and each Interim Redetermination shall be effectuated as follows: upon receipt by the Administrative Agent of (A) the Reserve Report and the Reserve Report Certificate, in the case of a Scheduled Redetermination, pursuant to <u>Section</u> <u>8.11(a)</u> and <u>(c)</u>, and, in the case of an Interim Redetermination, pursuant to <u>Section</u> <u>8.11(b)</u> and <u>(c)</u>, and (B) such other reports, data and supplemental information, including, without limitation, the information provided pursuant to <u>Section</u> <u>8.11(c)</u>, as may, from time to time, be reasonably requested by the Administrative Agent or the Majority Lenders (the Reserve Report, such Reserve Report Certificate and such other reports, data and supplemental information being the "<u>Engineering Reports</u>"), the Administrative Agent shall evaluate the information contained in the Engineering Reports and shall, in good faith and in its sole discretion, propose a new Borrowing Base (the "<u>Proposed Borrowing Base</u>") based upon such information and such other information (including, without limitation, the status of title information with respect to the Oil and Gas Properties as described in the Engineering Reports and the existence of any other Debt, the Credit Parties' other assets, liabilities, fixed charges, cash flow, business, properties, prospects, management and ownership, hedged and unhedged exposure to price, price and production scenarios, interest rate and operating cost changes) as the Administrative Agent deems appropriate in its sole discretion and consistent with its usual and customary oil and

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gas lending criteria as it exists at the particular time; *provided* that prior to the Discharge of Second Lien Obligations, the Administrative Agent shall not propose any Proposed Borrowing Base that would increase the Borrowing Base then in effect to any amount above $200,000,000 or maintain in effect any Borrowing Base that is an amount above $200,000,000 unless, (1) immediately prior to and after giving effect to any such increase or such maintenance of the Borrowing Base, the Consolidated Total Net Leverage Ratio (as defined in the Second Lien Note Purchase Agreement) for the most recently ended Rolling Period would be equal to or less than 2.50 to 1.00 calculated on a Pro Forma Basis (as defined in the Second Lien Note Purchase Agreement), and (2) a Responsible Officer of the Borrower delivers a certificate certifying as to the matters set forth in the foregoing clause (1) of this proviso. In no event shall the Proposed Borrowing Base exceed the Aggregate Maximum Credit Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent shall notify the Lenders of the Proposed Borrowing Base (the "<u>Proposed Borrowing Base Notice</u>") after the Administrative Agent has received complete Engineering Reports from the Borrower and has had a reasonable opportunity to determine the Proposed Borrowing Base in accordance with <u>Section</u> <u>2.07(c)(i)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Proposed Borrowing Base that would increase the Borrowing Base then in effect must be approved by all of the Lenders as provided in this <u>Section</u> <u>2.07(c)(iii)</u>, and any Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect must be approved or be deemed to have been approved by the Required Lenders as provided in this <u>Section</u> <u>2.07(c)(iii)</u> (in each case, in each Lender's sole discretion consistent with its usual and customary oil and gas lending criteria as they exist at the particular time). Upon receipt of the Proposed Borrowing Base Notice, each Lender shall have fifteen (15) days to agree with the Proposed Borrowing Base or disagree with the Proposed Borrowing Base by proposing an alternate Borrowing Base. If, in the case of any Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect, at the end of such fifteen (15) days, any Lender has not communicated its approval or disapproval in writing to the Administrative Agent, such silence shall be deemed to be an approval of the Proposed Borrowing Base. If, in the case of any Proposed Borrowing Base that would increase the Borrowing Base then in effect, at the end of such fifteen (15) days, any Lender has not communicated its approval or disapproval in writing to the Administrative Agent, such silence shall be deemed to be a disapproval of the Proposed Borrowing Base. If, at the end of such fifteen (15) day period, all of the Lenders, in the case of a Proposed Borrowing Base that would increase the Borrowing Base then in effect, or the Required Lenders, in the case of a Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect, have approved or, in the case of a decrease or reaffirmation, deemed to have approved, as aforesaid, then the Proposed Borrowing Base shall become the new Borrowing Base, effective on the date specified in <u>Section</u> <u>2.07(d)</u>. If, however, at the end of such 15-day period, all of the Lenders or the Required Lenders, as applicable, have not approved or, in the case of a decrease or reaffirmation, deemed to have approved, as aforesaid, then the Administrative Agent shall poll the Lenders to ascertain the highest Borrowing Base then acceptable to (A) in the case of a decrease or reaffirmation, a number of Lenders sufficient to constitute the Required Lenders and (B) in

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the case of an increase, all of the Lenders, and such amount shall become the new Borrowing Base, effective on the date specified in <u>Section</u> <u>2.07(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effectiveness of a Redetermined Borrowing Base</u>. After a redetermined Borrowing Base is approved or is deemed to have been approved by all of the Lenders or the Required Lenders, as applicable, pursuant to <u>Section</u> <u>2.07(c)(iii)</u>, the Administrative Agent shall notify the Borrower and the Lenders of the amount of the redetermined Borrowing Base (the "<u>New Borrowing Base Notice</u>"), and such amount shall become the new Borrowing Base, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Scheduled Redetermination, (A) if the Administrative Agent shall have received the Engineering Reports required to be delivered by the Borrower pursuant to <u>Section</u> <u>8.11(a)</u> and <u>(c)</u> in a timely and complete manner, then on April 15th or October 15th (or, in each case, such date promptly thereafter as reasonably practicable), as applicable, following such notice, or (B) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to <u>Section</u> <u>8.11(a)</u> and <u>(c)</u> in a timely and complete manner, then on the next Business Day succeeding delivery of such notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of an Interim Redetermination, on the next Business Day succeeding delivery of such notice;

provided, however, that prior to the Discharge of Second Lien Obligations, in the case of a redetermined Borrowing Base that would result in the Borrowing Base exceeding $200,000,000, as a condition to the effectiveness of such redetermined Borrowing Base pursuant to this <u>Section</u> <u>2.07(d)</u>, (a) immediately prior to and after giving effect to such redetermined Borrowing Base, the Consolidated Total Net Leverage Ratio (as defined in the Second Lien Note Purchase Agreement) for the most recently ended Rolling Period is equal to or less than 2.50 to 1.00 calculated on a Pro Forma Basis (as defined in the Second Lien Note Purchase Agreement), as determined by the Administrative Agent (and for the purposes of its determination, the Administrative Agent may require the written confirmation of the Second Lien Agent that the Borrower is in compliance with Section 7.02(j) of the Second Lien Note Purchase Agreement after giving effect to such redetermined Borrowing Base) and (b) the Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower dated as of the effective date of such redetermined Borrowing Base, certifying as to the satisfaction of the requirement in clause (a) above (without giving effect to the Administrative Agent's determination).

Such amount shall then become the Borrowing Base until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base under <u>Section</u> <u>2.07(e)</u>, <u>Section</u> <u>2.07(f)</u> or <u>Section</u> <u>8.12(c)</u>, whichever occurs first. Notwithstanding the foregoing, no Scheduled Redetermination or Interim Redetermination shall become effective until the New Borrowing Base Notice related thereto is received by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reduction of Borrowing Base upon Sale of Properties or Termination of Swap Agreements</u>. In addition to the other redeterminations or adjustments of the Borrowing Base provided for herein, if at any time the sum of (a) the aggregate PV-9 (calculated using the Bank Price Deck in effect at the time of the most recent redetermination) of Borrowing Base Properties

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Disposed of (including, for the avoidance of doubt, as described in <u>Section</u> <u>9.15(b)</u>) and (b) the Swap PV (calculated using the Bank Price Deck in effect at the time of the most recent redetermination) of Swap Agreements in respect of commodities Liquidated (after giving effect to any other Swap Agreements executed by the Credit Parties contemporaneously with the termination or monetization of such Swap Agreements or subsequent to the most recent Redetermination Date), in each case pursuant to <u>Section</u> <u>9.09(d)</u>, in any period since the most recent Redetermination Date, exceeds five percent (5%) of the Borrowing Base then in effect, individually or in the aggregate, then, in each case, the Borrowing Base shall be automatically reduced by an amount equal to the Borrowing Base Value of such Properties Disposed of and Swap Agreements Liquidated, and, in each case, the Borrowing Base as so reduced shall become the new Borrowing Base immediately upon such Disposition (or, in the case of a Swap Agreement, Liquidation), effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders until the next redetermination or other adjustment of the Borrowing Base pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Automatic Reduction of Borrowing Base upon Issuance of Permitted Senior Notes</u>. In addition to the other redeterminations of and adjustments to the Borrowing Base provided for herein, and notwithstanding anything to the contrary set forth herein, upon the issuance or incurrence of any Permitted Senior Notes, the Borrowing Base shall be automatically reduced by an amount equal to 25% of the aggregate stated principal amount of such Permitted Senior Notes (without regard to any original issue discount) incurred or issued at such time. Such decrease in the Borrowing Base shall occur automatically upon the incurrence of such Permitted Senior Notes on the date of incurrence, without any vote of the Lenders or action by the Administrative Agent. For the avoidance of doubt, if any such Permitted Senior Notes are being incurred in order to refinance outstanding Permitted Senior Notes or Second Lien Notes, then the foregoing automatic reduction shall only apply to the portion of the newly issued or incurred Permitted Senior Notes that is in excess of the principal amount of the Permitted Senior Notes or Second Lien Notes so refinanced. The Borrowing Base so reduced shall become the new Borrowing Base immediately upon the date of such issuance or incurrence, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders on such date until the next redetermination or other adjustment of the Borrowing Base pursuant to this Agreement. Upon any such reduction in the Borrowing Base, the Administrative Agent shall promptly deliver a New Borrowing Base Notice to the Borrower and the Lenders.

**Section 2.08 <u>Letters of Credit</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Subject to the terms and conditions set forth herein, the Borrower may request the issuance of dollar denominated Letters of Credit for its own account or for the account of any of its Restricted Subsidiaries, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the period from and including the Effective Date through and including the date which is ten (10) Business Days prior to the end of the Availability Period in an aggregate amount not to exceed the LC Commitment; *provided* that the Borrower may not request the issuance, amendment, renewal or extension of Letters of Credit hereunder if a Borrowing Base Deficiency exists at such time or would exist as a result thereof. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit,

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the terms and conditions of this Agreement shall control. Notwithstanding anything herein to the contrary, the Issuing Bank shall have no obligation hereunder to issue, and (in the case of clause (i)) shall not issue, any Letter of Credit (i) the proceeds of which would be made available to any Person (A) to fund any activity or business of or with any Sanctioned Person, or in any Sanctioned Country, in violation of Sanctions or (B) in any manner that would result in a violation of any Sanctions by any party to this Agreement (<u>provided</u> that, for the avoidance of doubt, this clause (i) shall not operate to invalidate any Letter of Credit or impose any liability on the applicable Issuing Bank for issuing same if the proceeds of such Letter of Credit are ultimately used in contravention of the representations and warranties made by the Borrower to such Issuing Bank at the time of the issuance, amendment, renewal or extension of such Letter of Credit), (ii) if any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from issuing such Letter of Credit, or any Governmental Requirement relating to the Issuing Bank or any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the Issuing Bank in good faith deems material to it or (iii) if the issuance of such Letter of Credit would violate one or more policies of the Issuing Bank applicable to letters of credit generally; <u>provided</u> that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed not to be in effect on the Effective Date for purposes of <u>clause (ii)</u> above, regardless of the date enacted, adopted, issued or implemented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions</u>. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or facsimile (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (not less than five (5) Business Days (or such shorter period agreed to by the Issuing Bank) in advance of the requested date of issuance, amendment, renewal or extension) a notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) requesting the issuance of a Letter of Credit or identifying the Letter of Credit to be amended, renewed or extended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) specifying the date on which such Letter of Credit is to expire (which shall comply with <u>Section</u> <u>2.08(c)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) specifying the amount of such Letter of Credit;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) specifying the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) specifying the amount of the then effective Borrowing Base and the then effective Aggregate Elected Commitment Amounts and whether a Borrowing Base Deficiency exists at such time, the current Total Revolving Credit Exposures (without regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit), and the Total Revolving Credit Exposures, on a pro forma basis (giving effect to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit).

Each notice shall constitute a representation and warranty by the Borrower that after giving effect to the requested issuance, amendment, renewal or extension, as applicable, (x) the LC Exposure shall not exceed the LC Commitment and (y) the Total Revolving Credit Exposures shall not exceed the then effective Loan Limit.

The Issuing Bank shall not issue any Letters of Credit unless the Issuing Bank shall have received notice from the Administrative Agent that the conditions to such issuance have been met, which notice shall be deemed given (1) if the Issuing Bank has not received notice from the Administrative Agent that the conditions to such issuance have been met within two Business Days after the date of the applicable request or (2) if the aggregate stated amount of Letters of Credit issued by the Issuing Bank then outstanding does not exceed the amount theretofore agreed to by the Borrower, the Administrative Agent and the Issuing Bank, and the Administrative Agent has not otherwise notified the Issuing Bank that it may no longer rely on clause (1).

If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank's standard form in connection with any request for a Letter of Credit; *provided* that, in the event of any conflict between such application or any Letter of Credit Agreement and the terms of this Agreement, the terms of this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expiration Date</u>. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date that is one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date. If the Borrower so requests in any applicable notice given pursuant to <u>Section</u> <u>2.08(b)</u> and the Issuing Bank agrees to do so, the Issuing Bank may issue a Letter of Credit that has automatic renewal provisions; *provided*, *however*, that any Letter of Credit that has automatic renewal provisions must permit the Issuing Bank to prevent any such renewal at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day in each such twelve-month period to be agreed upon by the Borrower and the Issuing Bank at the time such Letter of Credit is issued and any such Letter of Credit may not have an expiration date later than the date that is five (5) Business Days prior to the Maturity Date (except to the extent Cash Collateralized or backstopped at least five (5) Business Days prior to the Maturity Date pursuant to arrangements acceptable to the Issuing Bank). Once any such Letter of Credit that has automatic renewal provisions has been issued, the Lenders shall be deemed to have authorized (but may not require) the Issuing Bank to permit the renewal of such Letter of

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Credit at any time to an expiry date not later than thirty (30) days prior to the Maturity Date; *provided*, *further*, that the Issuing Bank shall not permit any such renewal if (A) the Issuing Bank has determined that it would have no obligation at such time to issue such Letter of Credit in its renewed form under the terms hereof, or (B) it has received notice (which may be by telephone or in writing) on or before the day that is two (2) Business Days before the date that the Issuing Bank is permitted to send a notice of non-renewal from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in <u>Section</u> <u>6.03</u> is not then satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. By the issuance of a Letter of Credit (including any amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender's Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender's Applicable Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the date due as provided in <u>Section</u> <u>2.08(e)</u>, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this <u>Section</u> <u>2.08(d)</u> in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default, the existence of a Borrowing Base Deficiency or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reimbursement</u>. If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, Houston, Texas time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 11:00 a.m., Houston, Texas time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 12:00 noon, Houston, Texas time, on the Business Day immediately following the day that the Borrower receives such notice; *provided* that the Borrower shall, subject to the conditions to Borrowing set forth herein, be deemed to have requested, and the Borrower does hereby request under such circumstances, that such payment be financed with an ABR Borrowing in an equivalent amount and, to the extent so financed, the Borrower's obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing. If the Borrower fails to make such payment when due or such ABR Borrowing cannot be made for whatever reason, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender's Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in <u>Section</u> <u>2.05</u> with respect to Loans made by such Lender (and <u>Section</u> <u>2.05</u> shall apply, *mutatis mutandis*, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this <u>Section</u> <u>2.08(e)</u>,

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the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to this <u>Section</u> <u>2.08(e)</u> to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may appear. Any payment made by a Lender pursuant to this <u>Section</u> <u>2.08(e)</u> to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The Borrower's obligation to reimburse LC Disbursements as provided in <u>Section</u> <u>2.08(e)</u> shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement, this Agreement, or any other Loan Document, or any term or provision herein or therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit or any Letter of Credit Agreement, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this <u>Section</u> <u>2.08(f)</u>, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower's obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; *provided* that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank's failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Disbursement Procedures</u>. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by facsimile or electronic communication) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; *provided* that

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any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Interim Interest</u>. If the Issuing Bank shall make any LC Disbursement, then, until the Borrower shall have reimbursed the Issuing Bank for such LC Disbursement (either with its own funds or a Borrowing under <u>Section</u> <u>2.08(e)</u>), the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Loans. Interest accrued pursuant to this <u>Section</u> <u>2.08(h)</u> shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to <u>Section</u> <u>2.08(e)</u> to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Replacement of the Issuing Bank</u>. The Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to <u>Section</u> <u>3.05(b)</u>. From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Bank, as the context shall require. After the replacement of the Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Cash Collateralization</u>. If (i) any Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Majority Lenders demanding the deposit of Cash Collateral pursuant to this <u>Section</u> <u>2.08(j)</u>, (ii) the LC Exposure exceeds the LC Commitment at any time, (iii) the Borrower is required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment pursuant to <u>Section</u> <u>3.04(c)</u> or (iv) the Borrower is required to cash collateralize a Defaulting Lender's LC Exposure pursuant to <u>Section</u> <u>2.09(b)</u>, then the Borrower shall deposit, in the case of clause (i) or (ii), on demand, in the case of clause (iii), by the date specified therefor in <u>Section</u> <u>3.04(c)</u>, and in the case of clause (iv), by the date specified therefor in <u>Section</u> <u>2.09(b)</u>, in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Issuing Bank, an amount in cash equal to, (A) in the case of an Event of Default, 103% of the LC Exposure, (B) in the case of the LC Exposure exceeding the LC Commitment, the amount of such excess, (C) in the case of a payment required by <u>Section</u> <u>3.04(c)</u>, the amount of such excess as provided in <u>Section</u> <u>3.04(c)</u>, as of such date *plus* any accrued and unpaid interest thereon and (D) in the case of the Borrower's requirement to cash collateralize a Defaulting Lender's LC Exposure pursuant to <u>Section</u> <u>2.09(b)</u>, the amount required pursuant to <u>Section</u> <u>2.09(b)</u>; *provided* that the obligation to deposit such Cash Collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower or any Restricted Subsidiary described in

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 <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>. The Borrower hereby grants to the Administrative Agent, for the benefit of the Issuing Bank and the Lenders, an exclusive first priority and continuing perfected security interest in and Lien on such account and all cash, checks, drafts, certificates and instruments, if any, from time to time deposited or held in such account, all deposits or wire transfers made thereto, any and all investments purchased with funds deposited in such account, all interest, dividends, cash, instruments, financial assets and other Property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing, and all proceeds, products, accessions, rents, profits, income and benefits therefrom, and any substitutions and replacements therefor. The Borrower's obligation to deposit amounts pursuant to this <u>Section</u> <u>2.08(j)</u> shall be absolute and unconditional, without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down all or a portion of such amount under the terms of a Letter of Credit, and, to the fullest extent permitted by applicable law, shall not be subject to any defense or be affected by a right of set-off, counterclaim or recoupment which the Borrower or any of its Subsidiaries may now or hereafter have against any such beneficiary, the Issuing Bank, the Administrative Agent, the Lenders or any other Person for any reason whatsoever. Such deposit shall be held as collateral securing the payment and performance of the Borrower's and the Guarantors' obligations under this Agreement and the other Loan Documents. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower's risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the Borrower and the Guarantors under this Agreement or the other Loan Documents. If the Borrower is required to provide an amount of Cash Collateral hereunder as a result of the occurrence of an Event of Default or pursuant to <u>Section</u> <u>2.09(b)</u> as a result of a Defaulting Lender, and the Borrower is not otherwise required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment pursuant to <u>Section</u> <u>3.04(c)</u>, then such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived or the events giving rise to such Cash Collateralization pursuant to <u>Section</u> <u>2.09(b)</u> have been satisfied or resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>LC Exposure Determination</u>. For all purposes of this Agreement, the amount of a Letter of Credit that, by its terms or the terms of any document related thereto, provides for one or more automatic increases in the stated amount thereof shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at the time of determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Reports from Issuing Bank</u>. The Issuing Bank (other than the Administrative Agent or any of its Affiliates) shall, at the reasonable request of the Administrative Agent, provide the Administrative Agent with a list of all Letters of Credit issued by the Issuing Bank that are outstanding at such time.

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**Section 2.09 <u>Defaulting Lenders</u>**. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, and any Fronting Exposure exists at the time a Lender becomes a Defaulting Lender, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all or any part of such Fronting Exposure shall automatically be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent (i) the sum of all Non-Defaulting Lenders' Revolving Credit Exposures does not exceed the total of all Non-Defaulting Lenders' Commitments, (ii) any Non-Defaulting Lender's Revolving Credit Exposure does not exceed its Commitment, and (iii) the conditions set forth in <u>Section</u> <u>6.03</u> are satisfied at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the reallocation described in clause (a) above cannot, or can only partially, be effected, the Borrower shall, within one (1) Business Day following notice by the Administrative Agent, Cash Collateralize such Defaulting Lender's LC Exposure (after giving effect to any partial reallocation pursuant to clause (a) above) in accordance with the procedures set forth in <u>Section</u> <u>2.08(j)</u> for so long as such LC Exposure is outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Borrower Cash Collateralizes any portion of such Defaulting Lender's LC Exposure pursuant to this <u>Section</u> <u>2.09</u>, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to <u>Section</u> <u>3.05(b)</u> with respect to such Defaulting Lender's LC Exposure during the period such Defaulting Lender's LC Exposure is Cash Collateralized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the LC Exposure of the Non-Defaulting Lenders is reallocated pursuant to this <u>Section</u> <u>2.09</u>, then the fees payable to the Lenders pursuant to <u>Section</u> <u>3.05(a)</u> and <u>Section</u> <u>3.05(b)</u> shall be adjusted in accordance with such Non-Defaulting Lenders' Applicable Percentages; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if any Defaulting Lender's LC Exposure is neither Cash Collateralized nor reallocated pursuant to this <u>Section</u> <u>2.09</u>, then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lender's Commitment that was utilized by such LC Exposure) under <u>Section</u> <u>3.05(a)</u> and letter of credit fees payable under <u>Section</u> <u>3.05(b)</u> with respect to such Defaulting Lender's LC Exposure shall be payable to the Issuing Bank until such LC Exposure is Cash Collateralized and/or reallocated.

Notwithstanding any provision of this Agreement to the contrary, so long as any Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit unless it is satisfied that the related Fronting Exposure will be 100% covered by the Commitments of the Non-Defaulting Lenders and/or Cash Collateral will be provided by the Borrower in accordance with <u>Section</u> <u>2.08(j)</u>, and participating interests in any such newly issued or increased Letter of Credit shall be allocated among Non-Defaulting Lenders in a manner consistent with <u>Section</u> <u>2.09(a)</u> (and any Defaulting Lender shall not participate therein).

If the Borrower, the Administrative Agent and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or

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take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit to be held pro rata by the Lenders in accordance with the Commitments (without giving effect to paragraph (a)(i) above), whereupon, such Lender will cease to be a Defaulting Lender; *provided* that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and *provided*, *further*, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

**ARTICLE III** 

**PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES** 

**Section 3.01 <u>Repayment of Loans</u>**. The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan on the Termination Date.

**Section 3.02 <u>Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>ABR Loans</u>. The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>SOFR Loans</u>. The Loans comprising each SOFR Borrowing shall bear interest at Term SOFR for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Post-Event of Default Rate</u>. Notwithstanding the foregoing, (i) if any Event of Default of the type described in <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u>, <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u> occurs, then all outstanding principal shall automatically bear interest at a rate per annum of two percent (2%) plus the rate applicable to ABR Loans or SOFR Loans, as applicable, as provided in <u>Section</u> <u>3.02(a)</u> or <u>Section</u> <u>3.02(b)</u> (including the Applicable Margin), as applicable, but in no event to exceed the Highest Lawful Rate, and shall be payable on demand by the Administrative Agent and (ii) if any Event of Default occurs (other than an Event of Default described in <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u>, <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>), then at the election of the Majority Lenders (or the Administrative Agent at the direction of the Majority Lenders), all outstanding principal shall automatically bear interest at a rate per annum of two percent (2%) plus the rate applicable to ABR Loans or SOFR Loans, as applicable, as provided in <u>Section</u> <u>3.02(a)</u> or <u>Section</u> <u>3.02(b)</u> (including the Applicable Margin), as applicable, but in no event to exceed the Highest Lawful Rate, and shall be payable on demand by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Interest Payment Dates</u>. Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and on the Termination Date; *provided* that (i) interest accrued pursuant to <u>Section</u> <u>3.02(c)</u> shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than an optional prepayment of an ABR Loan prior to the Termination Date), accrued interest on the principal amount repaid or prepaid shall be

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payable on the date of such repayment or prepayment, and (iii) in the event of any conversion of any SOFR Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Interest Rate Computations</u>. All interest hereunder shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). All interest hereunder on any Loan shall be computed on a daily basis based upon the outstanding principal amount of such Loan as of the applicable date of determination. The applicable Alternate Base Rate or Term SOFR shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error, and be binding upon the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Term SOFR Conforming Changes</u>. In connection with the use or administration of Term SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. The Administrative Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.

**Section 3.03 <u>Inability to Determine Rates; Effect of Benchmark Transition Event</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Circumstances Affecting Benchmark Availability</u>. Subject to <u>clause (b)</u> below, in connection with any request for a SOFR Loan or a conversion to or continuation thereof or otherwise, if for any reason (i) the Administrative Agent shall determine (which determination shall be conclusive and binding absent manifest error) that reasonable and adequate means do not exist for ascertaining Term SOFR for the applicable Interest Period with respect to a proposed SOFR Loan on or prior to the first day of such Interest Period or (ii) the Majority Lenders shall determine (which determination shall be conclusive and binding absent manifest error) that Term SOFR does not adequately and fairly reflect the cost to such Lenders of making or maintaining such Loans for such Interest Period and the Majority Lenders have provided notice of such determination to the Administrative Agent, then, in each case, the Administrative Agent shall promptly give notice thereof to the Borrower by telephone, facsimile or other electronic transmission acceptable to the Borrower. Upon notice thereof by the Administrative Agent to the Borrower, any obligation of the Lenders to make SOFR Loans, and any right of the Borrower to convert any Loan to or continue any Loan as a SOFR Loan, shall be suspended (to the extent of the affected SOFR Loans or the affected Interest Periods) until the Administrative Agent (with respect to clause (ii), at the instruction of the Majority Lenders) revokes such notice. Upon receipt of such notice, (A) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans (to the extent of the affected SOFR Loans or the affected Interest Periods) or, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to ABR Loans in the amount specified therein and (B) any outstanding affected SOFR Loans will be deemed to have been converted into ABR Loans at the

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end of the applicable Interest Period. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to <u>Section</u> <u>5.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Laws Affecting SOFR Availability</u>. If, after the Signing Date, the introduction of, or any change in, any applicable law or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any of the Lenders (or any of their respective Lending Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its obligations hereunder to make or maintain any SOFR Loan, or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate or Term SOFR, such Lender shall promptly give notice thereof to the Administrative Agent and the Administrative Agent shall promptly give notice to the Borrower and the other Lenders ("<u>Illegality Notice</u>"). Thereafter, until each affected Lender notifies the Administrative Agent and the Administrative Agent notifies the Borrower that the circumstances giving rise to such determination no longer exist, (i) any obligation of the Lenders to make SOFR Loans, and any right of the Borrower to convert any Loan to a SOFR Loan or continue any Loan as a SOFR Loan, shall be suspended and (ii) if necessary to avoid such illegality, the Administrative Agent shall compute the Alternate Base Rate without reference to clause (c) of the definition of "Alternate Base Rate", in each case until each such affected Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of an Illegality Notice, the Borrower shall, if necessary to avoid such illegality, upon demand from any Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all SOFR Loans to ABR Loans (in each case, if necessary to avoid such illegality, the Administrative Agent shall compute the Alternate Base Rate without reference to clause (c) of the definition of "Alternate Base Rate"), on the last day of the Interest Period therefor, if all affected Lenders may lawfully continue to maintain such SOFR Loans, to such day, or immediately, if any Lender may not lawfully continue to maintain such SOFR Loans to such day. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to <u>Section</u> <u>5.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benchmark Replacement Setting.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5<sup>th</sup>) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Majority Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this <u>Section</u> <u>3.03(c)(i)</u> will occur prior to the applicable Benchmark Transition Start Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes (in consultation with the Borrower) from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Notices; Standards for Decisions and Determinations</u>. The Administrative Agent will promptly notify the Borrower and the Lenders of (A) the implementation of any Benchmark Replacement and (B) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will promptly notify the Borrower of the removal or reinstatement of any tenor of a Benchmark pursuant to <u>Section</u> <u>3.03(c)(iv)</u>. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>Section</u> <u>3.03(c)</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section</u> <u>3.03(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (1) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (2) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (B) if a tenor that was removed pursuant to clause (A) above either (1) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (2) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Benchmark Unavailability Period</u>. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, (A) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a

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borrowing of or conversion to ABR Loans and (B) any outstanding affected SOFR Loans will be deemed to have been converted to ABR Loans at the end of the applicable Interest Period. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Alternate Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Alternate Base Rate.

**Section 3.04 <u>Prepayments</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional Prepayments</u>. The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with <u>Section</u> <u>3.04(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice and Terms of Optional Prepayment</u>. The Borrower shall provide written notice to the Administrative Agent of any prepayment hereunder (i) in the case of prepayment of a SOFR Borrowing, not later than 12:00 noon, Houston, Texas time, three U.S. Government Securities Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 12:00 noon, Houston, Texas time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; *provided* that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.06(b), then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.06(b). Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 3.02.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, after giving effect to any termination or reduction of the Aggregate Maximum Credit Amounts pursuant to <u>Section</u> <u>2.06(b)</u> or any reduction in the Aggregate Elected Commitment Amounts pursuant to <u>Section</u> <u>2.06(c)</u>, the Total Revolving Credit Exposures exceeds the then effective Loan Limit, then the Borrower shall (A) prepay the Borrowings of Loans on the date of such termination or reduction in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings of Loans as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as Cash Collateral as provided in <u>Section</u> <u>2.08(j)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon any redetermination of the Borrowing Base pursuant to <u>Section</u> <u>2.07(c)</u> or any adjustment to the amount of the Borrowing Base in accordance with <u>Section</u> <u>8.12(c)</u>, if the Total Revolving Credit Exposures exceed the Loan Limit after giving effect to the redetermined or adjusted Borrowing Base, then the Borrower shall, within ten (10) Business Days after written notice from the Administrative Agent to the

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Borrower of such Borrowing Base Deficiency, notify the Administrative Agent of its election to take one or more of the following actions to cure the Borrowing Base Deficiency and shall take such actions within the periods specified herein: (A) deliver to the Administrative Agent within thirty (30) days after receipt of such New Borrowing Base Notice, petroleum engineering information and Mortgages covering additional Oil and Gas Properties of the Credit Parties not included in the immediately preceding Reserve Report with a value and quality satisfactory to all of the Lenders in their sole discretion sufficient to eliminate such Borrowing Base Deficiency or (B) prepay the Borrowings in an aggregate principal amount equal to such excess, and if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as Cash Collateral as provided in <u>Section</u> <u>2.08(j)</u>. The Borrower may make such prepayment either, at its election, (1) in one lump sum payment on or before the date that is 30 days following the receipt by the Borrower of the New Borrowing Base Notice in accordance with <u>Section</u> <u>2.07(d)</u> or (2) in six equal payments, the first of which being due on the date that is 30 days following the date of receipt by the Borrower of the New Borrowing Base Notice in accordance with <u>Section</u> <u>2.07(d)</u> and each subsequent payment being due and payable on the same day in each of the subsequent calendar months; *provided* that all payments required to be made pursuant to this <u>Section</u> <u>3.04(c)(ii)</u> must be made on or prior to the Termination Date. The Borrower may also undertake a combination of clauses (A) and (B); *provided* that the Borrower shall notify the Administrative Agent in writing of the Borrower's election in respect of clause (A) or (B) or the combination of clause (A) or (B) as provided in the immediately preceding sentence within ten (10) days following the receipt of the New Borrowing Base Notice in accordance with <u>Section</u> <u>2.07(d)</u> (and any failure to deliver such notice shall be deemed to be an election by the Borrower to eliminate such deficiency as provided in clause (1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon any adjustment to the amount of the Borrowing Base in accordance with <u>Section</u> <u>2.07(e)</u> or <u>Section</u> <u>2.07(f)</u>, if the Total Revolving Credit Exposures exceeds the Borrowing Base after giving effect to such Borrowing Base adjustment, then the Borrower shall (A) prepay the Borrowings in an aggregate principal amount equal to such excess and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as Cash Collateral as provided in <u>Section</u> <u>2.08(j)</u>. The Borrower shall be obligated to make such prepayment in one lump sum payment no later than one (1) Business Day following the dates of any applicable adjustment of the Borrowing Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If: (a) in calculating the Consolidated Cash Balance for the purpose of determining whether the condition contained in <u>Section</u> <u>6.03(d)</u> was satisfied at the time of and immediately after giving effect to any Borrowing or the issuance, amendment, renewal, increase or extension of any Letter of Credit, as applicable (the date of such Borrowing or such issuance, amendment, renewal, increase or extension, the "<u>Applicable Test Date</u>"), the Consolidated Cash Balance was reduced by any cash set aside or to be used to make any payments to be due and owing within ten (10) Business Days from the Applicable Test Date pursuant to <u>clauses (ii)</u> <u>(iv)</u> and/or <u>(vi)</u> of the definition of Consolidated Cash Balance (the aggregate amount of such reduction, the "<u>Expected Payment Amount</u>"); (b) at the end of the tenth (10<sup>th</sup>) Business Day after the Applicable Test Date (any such date, a

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"<u>Measurement Date</u>"), any portion of the Expected Payment Amount was not (x) paid by the Borrower or any Restricted Subsidiary as contemplated by <u>clauses (ii)</u> and/or <u>(iv)</u> of the definition of Consolidated Cash Balance, (y) applied as a prepayment of the Loans or to Cash Collateralize the LC Exposure or (z) applied to payments made in the ordinary course of business permitted by this Agreement (such unpaid portion, the "<u>Unpaid Amount</u>"); and (c) the Consolidated Cash Balance would have exceeded the Consolidated Cash Balance Threshold (the amount of such excess, "<u>Excess Cash</u>") immediately after giving effect to any Borrowing or the issuance, amendment, renewal, increase or extension of any Letter of Credit, as applicable, and the use of proceeds thereof on such Applicable Test Date (as the Consolidated Cash Balance is recalculated as of the Applicable Test Date by increasing Consolidated Cash Balance by the Unpaid Amount), then, such event shall not be a Default, but instead the Borrower shall, on the Business Day immediately following the Measurement Date, prepay the Borrowings in an aggregate principal amount equal to such Excess Cash. To the extent that (A) such payment has not been made on the Business Day immediately following the Measurement Date, and (B) there are funds of the Borrower or any of its Subsidiaries on deposit in, or credited to, any Deposit Account, Securities Account or other account maintained with the Administrative Agent (or any Affiliate thereof) or any Lender (or any Affiliate thereof) on any date that the Borrower is required to prepay Loans pursuant to this <u>Section</u> <u>3.04(c)(iv)</u>, the Borrower (on its own behalf and on behalf of the Credit Parties) hereby irrevocably authorizes and instructs the Administrative Agent or such Lender to apply such funds to the prepayment of such Loans on and after the second Business Day immediately following the Measurement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each prepayment of Borrowings pursuant to this <u>Section</u> <u>3.04(c)</u> shall be applied, first, ratably to any ABR Borrowings then outstanding, and, second, to any SOFR Borrowings then outstanding, and if more than one SOFR Borrowing is then outstanding, to each such SOFR Borrowing in order of priority beginning with the SOFR Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the SOFR Borrowing with the most number of days remaining in the Interest Period applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each prepayment of Borrowings pursuant to this <u>Section</u> <u>3.04(c)</u> shall be applied ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to this <u>Section</u> <u>3.04(c)</u> shall be accompanied by accrued interest to the extent required by <u>Section</u> <u>3.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Premium or Penalty</u>. Prepayments permitted or required under this <u>Section</u> <u>3.04</u> shall be without premium or penalty, except as required under <u>Section</u> <u>5.02</u>.

**Section 3.05 <u>Fees</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fees</u>. Except as otherwise provided in <u>Section</u> <u>3.05(d)</u>, the Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the applicable Commitment Fee Rate on the daily amount of the unused amount of the Commitment of such Lender during the period from and including the Effective Date to but excluding the Termination Date. Accrued commitment fees shall be payable in arrears on the third Business Day following the last day of March, June, September and December of each year and

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on the Termination Date, commencing on the first such date to occur after the Effective Date. All commitment fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case commitment fees shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Fees</u>. Except as otherwise provided in <u>Section</u> <u>3.05(d)</u>, the Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in each outstanding Letter of Credit which shall accrue at the same Applicable Margin used to determine the interest rate applicable to SOFR Loans on the average daily amount of such Lender's LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender's Commitment terminates and the date on which such Lender ceases to have any LC Exposure, (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure; *provided* that in no event shall such fee be less than $500 during any fiscal year; and (iii) to the Issuing Bank, for its own account, its standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder or any other customary or administrative fees. Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third Business Day following the last day of such month end, commencing on the first such date to occur after the Effective Date; *provided* that all such fees shall be payable on the Termination Date and any such fees accruing after the Termination Date shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this <u>Section</u> <u>3.05(b</u>) shall be payable within ten (10) days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Administrative Agent and Other Fees</u>. The Borrower agrees to pay to the Administrative Agent (i) fees payable in the amounts and at the times set forth in the Fee Letter and (ii) any other fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Defaulting Lender Fees</u>. Subject to <u>Section</u> <u>2.09</u>, the Borrower shall not be obligated to pay the Administrative Agent any Defaulting Lender's ratable share of the fees described in <u>Section</u> <u>3.05(a)</u> and <u>(b)</u> for the period commencing on the day such Defaulting Lender becomes a Defaulting Lender and continuing for so long as such Lender continues to be a Defaulting Lender.

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**ARTICLE IV** 

**PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS** 

**Section 4.01 <u>Payments Generally; Pro Rata Treatment; Sharing of Set</u><u>-</u><u>offs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments by the Borrower</u>. The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> or otherwise) prior to 12:00 noon, Houston, Texas time, on the date when due, in immediately available funds, without defense, deduction, recoupment, set-off or counterclaim. Fees, once paid, shall be fully earned and shall not be refundable under any circumstances. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices specified in <u>Section</u> <u>12.01</u>, except payments to be made directly to the Issuing Bank as expressly provided herein and except that payments pursuant to <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> and <u>Section</u> <u>12.03</u> shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application of Insufficient Payments</u>. If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Sharing of Payments by Lenders</u>. If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Exposure resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Exposure and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Exposure of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Exposure; *provided* that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this <u>Section</u> <u>4.01(c)</u> shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations

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in LC Exposure to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this <u>Section</u> <u>4.01(c)</u> shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

**Section 4.02 <u>Presumption of Payment by the Borrower</u>**. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

**Section 4.03 <u>Certain Deductions by the Administrative Agent</u>**. If a Defaulting Lender (or a Lender who would be a Defaulting Lender but for the expiration of the relevant grace period) as a result of the exercise of a set off shall have received a payment in respect of its Revolving Credit Exposure which results in its Revolving Credit Exposure being less than its Applicable Percentage of the aggregate Revolving Credit Exposures, then no payment will be made to such Defaulting Lender until all amounts due and owing to the Lenders have been equalized in accordance with each Lender's respective pro rata share of the Obligations. Further, if any Lender shall fail to make any payment required to be made by it pursuant to <u>Section</u> <u>2.05(a)</u>, <u>Section</u> <u>2.08(d)</u>, <u>Section</u> <u>2.08(e)</u> or <u>Section</u> <u>4.02</u>, or otherwise hereunder, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender's obligations under such Sections until all such unsatisfied obligations are fully paid. If at any time prior to the acceleration or maturity of the Loans, the Administrative Agent shall receive any payment in respect of principal of a Loan or a reimbursement of an LC Disbursement while one or more Defaulting Lenders shall be party to this Agreement, the Administrative Agent shall apply such payment first to the Borrowing(s) for which such Defaulting Lender(s) shall have failed to fund its pro rata share until such time as such Borrowing(s) are paid in full or each Lender (including each Defaulting Lender) is owed its Applicable Percentage of the Loans then outstanding, as applicable. After acceleration or maturity of the Loans, all principal will be paid ratably as provided in <u>Section</u> <u>10.02(c)</u>.

**<u>Section 4.04 Disposition of Proceeds</u>**. The Security Instruments contain an assignment by the Borrower and/or the Guarantors unto and in favor of the Administrative Agent for the benefit of the Secured Parties of all of the Borrower's or each Guarantor's interest in and to production and all proceeds attributable thereto which may be produced from or allocated to the Mortgaged Property. The Security Instruments further provide in general for the application of such proceeds to the satisfaction of the Obligations and other obligations described therein and

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secured thereby. Notwithstanding the assignment contained in such Security Instruments, until the occurrence of an Event of Default, (a) the Administrative Agent and the Lenders agree that they will neither notify the purchaser or purchasers of such production nor take any other action to cause such proceeds to be remitted to the Administrative Agent or the Lenders, but the Lenders will instead permit such proceeds to be paid to the Borrower and its Restricted Subsidiaries and (b) the Lenders hereby authorize the Administrative Agent to take such actions as may be necessary to cause such proceeds to be paid to the Borrower and/or such Restricted Subsidiaries.

**ARTICLE V** 

**INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY** 

**Section 5.01 <u>Increased Costs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Changes in Law</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve including pursuant to regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D), special deposit, compulsory loan, insurance charge, or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender or any Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Lender (including any Issuing Bank), Administrative Agent, or any other recipient of any payment to be made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document ****to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or Issuing Bank or the London interbank market any other condition, cost or expense affecting this Agreement or SOFR Loans made by such Lender or such Issuing Bank;

and the result of any of the foregoing shall be to increase the cost to such Lender or other recipient of making, converting into, continuing or maintaining any SOFR Loan (or of maintaining its obligation to make any such Loan), to insurance the cost to such Lender, such Issuing Bank or such other recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or other recipient (whether of principal, interest or otherwise), then the Borrower will pay to such Lender or other recipient such additional amount or amounts as will compensate such Lender or other recipient for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital Requirements</u>. If any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's or the Issuing Bank's capital or on the capital of such Lender's

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or the Issuing Bank's holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or the Issuing Bank's policies and the policies of such Lender's or the Issuing Bank's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates</u>. A certificate of a Lender, the Issuing Bank or the Administrative Agent setting forth the amount or amounts necessary to compensate such Lender, the Issuing Bank or its holding company, or the Administrative Agent, as the case may be, as specified in <u>Section</u> <u>5.01(a)</u> or <u>(b)</u> shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender, the Issuing Bank or the Administrative Agent, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effect of Failure or Delay in Requesting Compensation</u>. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this <u>Section</u> <u>5.01</u> shall not constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation; *provided* that the Borrower shall not be required to compensate a Lender or the Issuing Bank pursuant to this <u>Section</u> <u>5.01</u> for any increased costs or reductions incurred more than 365 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's or the Issuing Bank's intention to claim compensation therefor; *provided further* that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof.

**Section 5.02 <u>Break Funding Payments</u>**. In the event of (a) the payment of any principal of any SOFR Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any SOFR Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any SOFR Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any SOFR Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to <u>Section</u> <u>5.04(b)</u>, then, in any such event, and unless waived by the applicable Lender, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this <u>Section</u> <u>5.02</u> shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

**Section 5.03 <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower or any Guarantor under any Loan Document shall be free and clear of and without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of the applicable Withholding Agent) requires the

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deduction or withholding of any Tax from any such payment by any Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and if such Tax is an Indemnified Tax, then the sum payable shall be increased as necessary by the Borrower or any Guarantor so that after making all required deductions or withholdings (including deductions and withholdings applicable to additional sums payable under this <u>Section</u> <u>5.03(a)</u>), the applicable Recipient receives an amount equal to the sum it would have received had no such deductions or withholdings been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Other Taxes by the Borrower</u>. The Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days after demand therefor, for the full amount of any Indemnified Taxes payable or paid by, or required to be withheld or deducted from a payment to, the Administrative Agent or such Lender, as the case may be, on or with respect to any payment to such Administrative Agent or Lender (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section</u> <u>5.03</u>) and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate of the Administrative Agent (on its own behalf or on behalf of a Lender) or a Lender (with a copy to the Administrative Agent) as to the amount of such payment or liability under this <u>Section</u> <u>5.03</u> shall be delivered to the Borrower and shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification by the Lenders</u>. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>12.04(c)</u> relating to the maintenance of a Participant Register, and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower or a Guarantor to a Governmental Authority pursuant to <u>Section</u> <u>5.03</u>, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, ****shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>Section</u> <u>5.03(f)(ii)(A)</u> and <u>Section</u> <u>5.03(f)(ii)(B)</u> and <u>Section</u> <u>5.03(g)</u> below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Withholding Agent), an executed copy of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding Tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower and the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E (as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E (as applicable) establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) an executed copy of IRS Form W-8ECI;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of <u>Exhibit</u> <u>K-1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" related to the Borrower as described in Section 871(h)(3)(C) of the Code (a "<u>U.S.</u> <u>Tax Compliance Certificate</u>") and (y) an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E (as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Foreign Lender is not the beneficial owner, an executed copy of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, or IRS Form W-8BEN-E (as applicable), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit</u> <u>K-2</u> or <u>Exhibit</u> <u>K-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; *provided* that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit</u> <u>K-4</u> on behalf of each such direct and indirect partner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), an executed copy of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>FATCA</u>. If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender fails to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower or the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower and the Administrative Agent as may be necessary for the Borrower or the Administrative Agent to comply with their obligations under FATCA, to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this <u>Section</u> <u>5.03(g)</u>, "FATCA" shall include any amendments made to FATCA after the Signing Date.

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Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Withholding Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) On or before the date on which Capital One becomes the Administrative Agent hereunder, it shall deliver to the Borrower two (2) executed copies of IRS Form W-9 certifying that it is exempt from U.S. federal backup withholding tax. On or before the date on which any successor or replacement Administrative Agent shall, on or before the date on which it becomes the Administrative Agent hereunder, it shall deliver to the Borrower two (2) executed copies of either IRS Form W-9 or the applicable IRS Form W-8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Treatment of Certain Refunds</u>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>5.03</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>5.03</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, under this <u>Section</u> <u>5.03</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this clause (i) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this clause (i), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this clause (i) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Survival</u>. Each party's obligations under this <u>Section</u> <u>5.03</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments, and the repayment, satisfaction or discharge of all obligations under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Defined Terms</u>. For purposes of this <u>Section</u> <u>5.03</u>, the term "applicable law" includes FATCA and the term "Lender" includes the Issuing Bank.

**Section 5.04 <u>Mitigation Obligations; Replacement of Lenders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Designation of Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>5.01</u>, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>5.03</u>, or if any Lender's obligation to make or maintain SOFR Loans is suspended pursuant to <u>Section</u> <u>3.03(b)</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a

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different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>5.01</u> or <u>Section</u> <u>5.03</u>, as the case may be, in the future or would allow the Lender to make SOFR Loans and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Replacement of Lenders</u>. If any Lender requests compensation under <u>Section</u> <u>5.01</u>, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>5.03</u> and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with <u>Section</u> <u>5.04(a)</u>, or if any Lender's obligation to make or maintain SOFR Loans is suspended pursuant to <u>Section</u> <u>3.03(b)</u>, or if any Lender becomes a Defaulting Lender or Non-Consenting Lender hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in <u>Section</u> <u>12.04(b)</u>), all its interests, rights (other than its existing rights to payments pursuant to <u>Section</u> <u>5.01</u> or <u>Section</u> <u>5.03</u>) and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); *provided* that (i) the Borrower shall have received the prior written consent of the Administrative Agent and the Issuing Bank, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts), (iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>5.01</u> or payments required to be made pursuant to <u>Section</u> <u>5.03</u>, such assignment will result in a reduction in such compensation or payments, and (iv) in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. Notwithstanding the foregoing, a Lender shall not be required to make any such assignment and delegation if such Lender (or its Affiliate) is a Secured Swap Party with any outstanding Secured Swap Agreements, unless on or prior thereto, all such Swap Agreements have been terminated or novated to another Person and such Lender (or its Affiliate) shall have received payment of all amounts, if any, payable to it in connection with such termination or novation.

**ARTICLE VI** 

**CONDITIONS PRECEDENT** 

**Section 6.01 <u>Signing Date</u>**. The obligations of the Lenders to enter into this Agreement are subject to the satisfaction (or waiver in accordance with <u>Section</u> <u>12.02</u>) of the following conditions:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall have received from each party hereto counterparts (in such number as may be requested by the Administrative Agent) of this Agreement signed on behalf of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall have received a certificate of the Secretary, Assistant Secretary or Responsible Officer of the Parent, the General Partner, the Borrower and each Guarantor setting forth (i) resolutions of its board of directors (or comparable governing body) with respect to the authorization of the Parent, the General Partner, the Borrower or such Guarantor to execute and deliver the Loan Documents to which it is a party and to enter into the transactions contemplated in those documents, (ii) the officers of the Parent, the General Partner, the Borrower or such Guarantor (A) who are authorized to sign the Loan Documents to which the Borrower or such Guarantor is a party and (B) who will, until replaced by another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the transactions contemplated hereby, (iii) specimen signatures of such authorized officers, and (iv) (A) the by-laws and certificate of incorporation of the Parent and (B) the certificate of formation and limited liability company agreements or limited partnership agreements (or comparable organizational documents for any Credit Parties that are not limited liability companies or limited partnerships) of the Borrower, the General Partner and such Guarantor (this <u>clause (iv)</u>, collectively, the "**Governance Documents**"), in the case of each of the foregoing clauses (A) and (B) certified as being true, accurate and complete. The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from the Borrower to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall have received customary certificates as of a recent date prior to the Signing Date reasonably satisfactory to the Administrative Agent of the appropriate state agencies where such entity is formed or incorporated with respect to the existence, qualification and good standing of the Parent, the General Partner, the Borrower and each Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower certifying:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that the representations and warranties set forth in <u>Article VII</u> are true and correct in all material respects on the Signing Date except to the extent any such representations and warranties (A) are expressly limited to an earlier date, in which case, on and as of Signing Date, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date or (B) are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case, such representations and warranties shall be true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that since December 31, 2025, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that, as of the Signing Date, no Default or Event of Default shall have occurred and be continuing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Administrative Agent shall have received from the Credit Parties at least three (3) Business Days prior to the Signing Date, to the extent reasonably requested in writing by the Lenders or the Administrative Agent at least ten (10) Business Days prior to the Signing Date, (i) all documentation and other information that they reasonably determine is required by regulatory authorities under applicable "know your customer" and Anti-Money Laundering Laws, including the Patriot Act and the Beneficial Ownership Regulation and (ii) a Beneficial Ownership Certification

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Administrative Agent shall have received customary UCC search results reflecting no prior Liens encumbering the Properties of the Borrower and its Restricted Subsidiaries for each jurisdiction requested by the Administrative Agent other than those being assigned or released or to be assigned or released on or prior to the Effective Date or Liens permitted by <u>Section</u> <u>9.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Administrative Agent shall have received a solvency certificate from a Financial Officer of the Borrower substantially in the form of <u>Exhibit</u> <u>M</u>.

**Section 6.02 <u>Effective Date</u>**. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with <u>Section</u> <u>12.02</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent, the Arrangers and the Lenders shall have received all commitment, upfront and agency fees and all other fees and amounts due and payable on or prior to the Effective Date, and to the extent invoiced at least two (2) Business Days prior to the Effective Date, reimbursement or payment of all reasonable and documented out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder (including, without limitation, the reasonable and documented out-of-pocket fees and expenses of Sidley Austin LLP, counsel to the Administrative Agent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall have received customary certificates as of a recent date prior to the Effective Date reasonably satisfactory to the Administrative Agent of the appropriate state agencies where such entity is formed or incorporated with respect to the existence, qualification and good standing of the Parent, the General Partner, the Borrower and each Guarantor and from the appropriate state agencies where such entity owns any Mortgaged Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall have received a certificate of the Secretary, Assistant Secretary or Responsible Officer of the Parent, the General Partner, the Borrower and each Guarantor setting forth (i) resolutions of its board of directors (or comparable governing body) with respect to the authorization of the Parent, the General Partner, the Borrower or such Guarantor to execute and deliver the Loan Documents to which it is a party and to enter into the transactions contemplated in those documents, (ii) the officers of the Parent, the General Partner, the Borrower or such Guarantor (A) who are authorized to sign the Loan Documents to which the Borrower or such Guarantor is a party and (B) who will, until replaced by another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing

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documents and giving notices and other communications in connection with this Agreement and the transactions contemplated hereby, (iii) specimen signatures of such authorized officers, and (iv) the Governance Documents, in the case of each of the foregoing clauses (A) and (B) certified as being true, accurate and complete; provided, such certificate may certify that there has been no change to the Governance Documents or to the name and title of each officer executing the Loan Documents, in each case since those delivered pursuant to <u>Section</u> <u>6.01(b)</u> on the Signing Date The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from the Borrower to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Administrative Agent shall have received duly executed Notes payable to each Lender (or its registered assigns) requesting a Note, if any, in a principal amount equal to its Maximum Credit Amount and dated as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested by the Administrative Agent) of the Security Instruments and the other Loan Documents, in form and substance satisfactory to the Administrative Agent, including the Guarantee and Collateral Agreement, the Mortgages and the other Security Instruments described in <u>Exhibit</u> <u>G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In connection with the execution and delivery of the Security Instruments, the Administrative Agent shall have received (i) Mortgages (with appropriate acknowledgements and in sufficient counterparts for recordation) in form and substance reasonably satisfactory to the Administrative Agent that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create first priority, perfected Liens (subject only to Excepted Liens identified in clauses (a) through (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition) on Oil and Gas Properties representing at least 90% of the PV-9 of the Proved Oil and Gas Properties evaluated by the Initial Reserve Report and (ii) certificates, together with undated, blank stock powers for each such certificate, representing all of the issued and outstanding Equity Interests of each Subsidiary owned by the Credit Parties that are evidenced by certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Administrative Agent shall have received title information in form and substance reasonably acceptable to the Administrative Agent covering enough of the Oil and Gas Properties evaluated by the Initial Reserve Report, so that the Administrative Agent shall have received reasonably satisfactory title information on at least 90% of the PV-9 of the Proved Oil and Gas Properties evaluated by the Initial Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Administrative Agent shall have received (a) an opinion of Latham & Watkins LLP, New York and Texas special counsel to the Parent, the General Partner, the Borrower and the Guarantors, (b) an opinion of local counsel to the Credit Parties in the State of Louisiana, (c) an opinion of local counsel to the Credit Parties in the Commonwealth of Pennsylvania, (d) an opinion of local counsel to the Credit Parties in the State of West Virginia, and (e) an opinion of local counsel to the Credit Parties in the State of Oklahoma, in each case, in form and substance acceptable to the Administrative Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Administrative Agent shall have received (i) customary UCC search results reflecting no prior Liens encumbering the Properties of the Parent, the General Partner, the

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Borrower and its Restricted Subsidiaries for each jurisdiction requested by the Administrative Agent other than those being assigned or released on or prior to the Effective Date or Liens permitted by <u>Section</u> <u>9.03</u> and (ii) evidence satisfactory to it (including mortgage releases and UCC-3 financing statement terminations) that all Liens (other than Liens permitted under <u>Section</u> <u>9.03</u> but including all Liens securing the obligations under the Existing Note Purchase Agreement) on its Properties have been released or terminated, or will be released and terminated subject only to the filing of applicable terminations and releases, and that duly executed recordable releases and terminations in form and substance reasonably acceptable to the Administrative Agent with respect thereto have been obtained by the Borrower or its Subsidiaries and delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower certifying:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that the representations and warranties set forth in <u>Article VII</u> are true and correct in all material respects on the Effective Date except to the extent any such representations and warranties (A) are expressly limited to an earlier date, in which case, on and as of Effective Date, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date or (B) are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case, such representations and warranties shall be true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that since December 31, 2025, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that, after giving effect to the Transactions on the Effective Date, the Borrower is in *pro forma* compliance with <u>Sections 9.01(a)</u> and <u>9.01(b)</u>, and setting forth reasonably detailed calculations demonstrating such compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) that all approvals of any Governmental Authority or any other third Person required in connection with the Transactions have been obtained and are in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) that, after giving effect to the Transactions on the Effective Date, no Default or Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) that prior to giving effect to the amendments in the Second Lien Note Purchase Agreement, notes under the Existing Note Purchase Agreement have been, or substantially contemporaneously with the proceeds of the initial Borrowings on the Effective Date and the Transactions to occur on the Effective Date are being, prepaid in an aggregate principal amount such that, after giving effect to such prepayment, the aggregate principal amount of notes under the Existing Note Purchase Agreement is no greater than $75,000,000 (the "<u>Existing Notes</u> <u>Pr</u><u>epayment</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) after giving effect to the Transactions contemplated to occur on the Effective Date, the Borrower and its Restricted Subsidiaries shall have no Debt for borrowed money other than (A) the Loans and other extensions of credit hereunder, (B) the Second Lien Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Administrative Agent shall have received (i) a fully executed copy of (A) the Second Lien Note Purchase Agreement, each other material Second Lien Note Document, and in each case, including all amendments, restatements, supplements and modifications thereto prior to the Effective Date, (B) the Second Lien Intercreditor Agreement, and (C) the Collateral Documents (as defined in the Second Lien Note Purchase Agreement) pursuant to which the Borrower and the Guarantors grant second priority Liens and security interests in favor of the Second Lien Agent to secure the Second Lien Obligations, which, in the case of each of the foregoing clauses (A), (B) and (C), shall be in form and substance satisfactory to the Administrative Agent and the Lenders, and (ii) evidence satisfactory to it that (A) the "Effective Date" under the Second Lien Note Purchase Agreement has occurred (or shall occur substantially concurrently with the Effective Date) and (B) the outstanding principal amount of Second Lien Notes does not exceed $75,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Administrative Agent shall have received from the Credit Parties at least three (3) Business Days prior to the Effective Date, to the extent reasonably requested in writing by the Lenders or the Administrative Agent at least ten (10) Business Days prior to the Effective Date, (i) all documentation and other information that they reasonably determine is required by regulatory authorities under applicable "know your customer" and Anti-Money Laundering Laws, including the Patriot Act and the Beneficial Ownership Regulation and (ii) a Beneficial Ownership Certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Effective Date Initial Public Offering shall have been consummated substantially simultaneously with the Effective Date in accordance with the Registration Statement and in compliance with applicable law, the Parent has received gross proceeds in respect of the Effective Date Initial Public Offering of at least $150,000,000, (ii) the Parent has contributed to the Borrower, and the Borrower has received from the Parent, an amount equal to $150,000,000 of such proceeds, and (iii) and the Administrative Agent shall have received evidence satisfactory to it that the Parent has consummated the Effective Date Initial Public Offering and contributed the proceeds to the Borrower as described in the foregoing clauses (i) and (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Borrower shall have (i) entered into Swap Agreements in the form of (x) swaps, (y) two-way collars and/or (z) costless collars with only one floor, with one or more Approved Counterparties; hedging minimum notional volumes of at least 50% of the reasonably projected production of crude oil and natural gas, each calculated separately from the Borrower and its Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Initial Reserve Report) for each full calendar month during the period from and including the Effective to and including the 24th full calendar month following the Effective Date (the "<u>Effective Date Required Swap Agreements</u>") and (ii) provided evidence to the Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent, that the Borrower has entered into the Effective Date Required Swap Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) After giving effect to the Transactions on the Effective Date, Liquidity shall be at least the greater of (i) $30,000,000 and 20% of the Borrowing Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Administrative Agent shall have received a true, correct and complete copy of the Initial Reserve Report accompanied by the third party audit letter with respect thereto and a

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Reserve Report Certificate covering the matters described in <u>Section</u> <u>8.11(c)</u> (other than <u>Section</u> <u>8.11(c)(iv)</u> and <u>Section</u> <u>8.11(c)(v)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Administrative Agent shall have received a solvency certificate from a Financial Officer of the Borrower substantially in the form of <u>Exhibit</u> <u>M</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Administrative Agent shall have received (i) an unaudited pro forma balance sheet of the Parent and its Consolidated Subsidiaries as of the Effective Date after giving effect to the Transactions, (ii) consolidated monthly financial projections and budgets for the Borrower and its Restricted Subsidiaries for the then-current fiscal year, (iii) audited consolidated balance sheet and related statements of operations, shareholders' equity and cash flows of the Borrower as of and for the fiscal year ended December 31, 2025 and (iv) the unaudited statements of income and cash flows of the Borrower and its Consolidated Subsidiaries as of and for the fiscal quarter and March 31, 2026 and the then elapsed portion of the fiscal year (collectively, the "<u>Initial Financial Statements</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Administrative Agent shall have received updated Schedules to this Agreement (the "<u>Updated Schedules</u>") reflecting the occurrence of the Effective Date which Updated Schedules shall be in form and substance satisfactory to the Administrative Agent (it being understood and agreed that the Updated Schedules shall be deemed to amend and restate in their entirety the corresponding Schedules delivered on the Signing Date, and all representations and warranties made by the Borrower and the other Loan Parties in this Agreement that refer to or are qualified by reference to the Schedules shall, from and after the Effective Date, be deemed to refer to the Updated Schedules).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Administrative Agent shall (i) be reasonably satisfied with the terms and conditions of the Citadel Permitted Existing Trades and the Citadel Permitted Existing Trade Documents, (ii) the Citadel Permitted Existing Trades and the Citadel Permitted Existing Trade Documents shall have been transferred by novation by Parent, as transferor, to the Borrower, as transferee, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, and (iii) have received a certificate of a Responsible Officer of the Borrower certifying that attached thereto is a true, complete and correct copy of each Citadel Permitted Existing Trade Document (in each case, together with all amendments or supplements thereto, and all agreements that have the effect of amending, modifying or supplementing any Citadel Permitted Existing Trade Document through the Effective Date).

Without limiting the generality of the provisions of <u>Section</u> <u>11.04</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>6.02</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required under this <u>Section</u> <u>6.02</u> to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Effective Date specifying its objection thereto. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 12.02) at or prior to 6:00 p.m., Houston, Texas time, on August 8, 2026 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at

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such time). The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.

**Section 6.03 <u>Each Credit Event</u>**. The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default, Event of Default, or Borrowing Base Deficiency shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The representations and warranties of the Parent, the General Partner, the Borrower and the Restricted Subsidiaries set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent any such representations and warranties (i) are expressly limited to an earlier date, in which case, on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date, or (ii) are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case under this <u>clause</u> <u>(ii)</u>, such representations and warranties shall be true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The receipt by the Administrative Agent of a Borrowing Request in accordance with <u>Section</u> <u>2.03</u> or a request for a Letter of Credit (or an amendment, extension or renewal of a Letter of Credit) in accordance with <u>Section</u> <u>2.08(b)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to any Borrowing or the issuance, amendment, renewal or extension of any Letter of Credit, as applicable, at the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold.

Each request for a Borrowing and each request for the issuance, amendment, renewal or extension of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in <u>Section</u> <u>6.03(a)</u>, <u>Section</u> <u>6.03(b)</u> and <u>Section</u> <u>6.03(d)</u>.

**ARTICLE VII** 

**REPRESENTATIONS AND WARRANTIES** 

The Borrower (and each of the Parent and the General Partner solely with respect to <u>Sections 7.01</u>, <u>7.02</u>, <u>7.03</u>, <u>7.04(b)</u>, <u>7.04(c)</u>, <u>7.05</u>, <u>7.07(a)</u>, <u>7.08</u>, <u>7.09</u>, <u>7.11</u>, <u>7.12</u>, <u>7.19</u>, <u>7.20</u>, <u>7.21</u>, <u>7.23</u>, <u>7.24</u>, <u>7.25</u> and <u>7.26</u>) represents and warrants to the Lenders on the Signing Date, the Effective Date (*provided* that any representation and warranty made with respect to the Effective Date shall not be deemed made until the occurrence of the Effective Date) and on each other date specified in this Agreement for representations and warranties to be made or deemed made that:

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**Section 7.01 <u>Organization; Powers</u>**. Each of the Borrower, the Parent, the General Partner and each of the Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing (if applicable) in, every jurisdiction where such qualification is required by Governmental Requirement, except where failure to have such power, authority, licenses, authorizations, consents, approvals and qualifications or be in good standing could not reasonably be expected to have a Material Adverse Effect.

**Section 7.02 <u>Authority; Enforceability</u>**. The Transactions are within the Parent's, the General Partner's, the Borrower's and each Restricted Subsidiary's corporate, limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership action, as applicable, and, if required, stockholder, member or manager action (including, without limitation, any action required to be taken by any class of directors or managers of the Parent, the General Partner, the Borrower or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Loan Document to which the Parent, the General Partner, the Borrower and each Restricted Subsidiary is a party that has been executed and delivered by the Parent, the General Partner, the Borrower and such Restricted Subsidiary as of the Signing Date and the Effective Date has been duly executed and delivered by the Parent, the General Partner, the Borrower and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Parent, the General Partner, the Borrower and such Restricted Subsidiary, as applicable, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

**Section 7.03 <u>Approvals; No Conflicts</u>**. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any other third Person (including shareholders or any class of directors or managers, as applicable, whether interested or disinterested, of the Parent, the General Partner, the Borrower or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability of any Loan Document or the consummation of the transactions contemplated thereby, except such as have been obtained or made and are in full force and effect other than (i) the recording and filing of the Security Instruments as required by this Agreement and (ii) those third party approvals or consents which, if not made or obtained, would not cause a Default hereunder, could not reasonably be expected to have a Material Adverse Effect or do not have an adverse effect on the enforceability of the Loan Documents, (b) will not violate any applicable material provision of law or regulation or the charter, bylaws or other organizational documents of the Parent, the General Partner, the Borrower or any Restricted Subsidiary or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture in respect of Material Debt, agreement or other instrument binding upon the Parent, the General Partner, the Borrower or any Restricted Subsidiary or any of their Properties, or give rise to a right thereunder to require any payment to be made by the Parent, the General Partner, the Borrower or such Restricted Subsidiary, except for violations that could not individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect and (d) will not result in the creation or imposition of any Lien on any Property of the Parent, the General Partner, the Borrower or any

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**Section 7.04 <u>Financial Condition; No Material Adverse Effect</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Effective Date, the Borrower has furnished to the Lenders the Initial Financial Statements. Such financial statements present fairly in all material respects the financial position and results of operations and cash flows of the Borrower and its Consolidated Restricted Subsidiaries as of such dates and for such periods in accordance with GAAP, and do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained therein not misleading at such time, subject to year-end audit adjustments and the absence of footnotes in the case of the unaudited quarterly financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since December 31, 2025, (i) there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect, and (ii) the business of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries has been conducted only in the ordinary course, in all material respects, consistent with past business practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Parent, the General Partner, the Borrower nor any Restricted Subsidiary (as in existence at the time of the Effective Date) has on the Effective Date any material Debt (including Disqualified Capital Stock) or any contingent liabilities off-balance sheet liabilities or partnerships, material liabilities for Taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments, except as permitted under this Agreement and adequate reserves for such items have been made in accordance with GAAP.

**Section 7.05 <u>Litigation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth on <u>Schedule</u> <u>7.05</u>, there are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Parent, the General Partner or the Borrower, threatened in writing against the Parent, the General Partner, the Borrower or any Restricted Subsidiary not fully covered by insurance (except for normal deductibles and customary policy exclusions) that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in liability in excess of $5,000,000 or a Material Adverse Effect or that involve any Loan Document or the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the Signing Date and the Effective Date, there has been no change in the status of the matters disclosed in <u>Schedule</u> <u>7.05</u> that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a Material Adverse Effect.

**Section 7.06 <u>Environmental Matters</u>**. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower and its Restricted Subsidiaries and each of their respective Properties and respective operations thereon (i) are and for the past three (3) years have been in compliance with all applicable Environmental Laws; and (ii) have not received written notice of any conditions, events, or incidents in connection with any operation at such Properties that would

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reasonably be expected to interfere with or prevent such compliance or continued compliance with Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower and its Restricted Subsidiaries have obtained all Environmental Permits required for their respective operations and respective ownership of their Properties as currently owned and operated, with all such Environmental Permits being currently in full force and effect, and none of Borrower or its Restricted Subsidiaries has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be denied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no claims, demands, suits, orders, inquiries, or proceedings concerning any violation of, or any liability (including as a potentially responsible party) under, any applicable Environmental Laws that is pending or, to Borrower's knowledge, threatened against the Borrower or any Restricted Subsidiary or, to the knowledge of Borrower, in relation to any of their respective Properties or as a result of any operations at such Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the knowledge of Borrower, none of the Properties of the Borrower or any Restricted Subsidiary contain or have contained: (i) underground storage tanks requiring an Environmental Permit pursuant to Environmental Law; (ii) asbestos-containing materials requiring removal pursuant to Environmental Law; (iii) landfills or dumps requiring an Environmental Permit pursuant to Environmental Law; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law; or (v) sites on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no Release or, to the Borrower's knowledge, threatened Release of Hazardous Materials by Borrower or, to Borrower's knowledge, any third party, at, on, under or from the Borrower's or any Restricted Subsidiary's Properties in violation of, or that has given or could reasonably be expected to give rise to liability under, Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Borrower or Restricted Subsidiary has failed to file any notice required of such Persons under applicable Environmental Law related to a reportable Release of Hazardous Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Borrower nor any Restricted Subsidiary has received any written notice asserting an alleged liability or obligation of the Borrower or any Restricted Subsidiary under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from the Borrower's or any Restricted Subsidiary's Properties or any real properties offsite the Borrower's or any Restricted Subsidiary's Properties, including a letter or request for information under Section 104(e) of CERCLA (42 U.S.C. § 9604) or any comparable state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) There has been no exposure of any Person or Property to any Hazardous Materials as a result of or in connection with the Borrower or any Restricted Subsidiary's operations of their respective businesses at any of the Borrower's or its Restricted Subsidiaries' Properties that could

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reasonably be expected to form the basis for a claim for damages or compensation for which the Borrower or any Restricted Subsidiary would be liable under Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower and its Restricted Subsidiaries have made available to the Lenders complete and correct copies of all material environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters relating to any alleged non-compliance with or liability under Environmental Laws requested by the Administrative Agent that are in any of the Borrower's or the Restricted Subsidiaries' possession or control and relating to their respective Properties or operations thereon.

**Section 7.07 <u>Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parent, the General Partner, the Borrower and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it or its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing.

**Section 7.08 <u>Investment Company Act</u>**. None of the Parent, the General Partner, the Borrower or any Restricted Subsidiary is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 7.09 <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parent, the General Partner, the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes levied or imposed upon it or its properties, income or assets otherwise due and payable, except (i) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (ii) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The charges, accruals and reserves on the books of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries in respect of Taxes and other governmental charges are, in the reasonable opinion of the Parent, the General Partner, and the Borrower, adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Tax Lien (other than Tax Liens that constitute Excepted Liens) has been filed.

**Section 7.10 <u>ERISA</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for such matters that, individually or in the aggregate, could not reasonably be expected to have Material Adverse Effect :

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower, its Subsidiaries and each ERISA Affiliate have complied with ERISA and, where applicable, the Code and other applicable laws regarding each Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Plan (other than Multiemployer Plan) is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the Code and other applicable laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no act, omission or transaction has occurred with respect to a Plan which could reasonably be expected to result in imposition on the Borrower, or any Subsidiary (whether directly or indirectly) of (A) either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Code or (B) breach of fiduciary duty liability damages under Section 409 of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) full payment when due has been made of all amounts which the Borrower, its Subsidiaries or any ERISA Affiliate is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the Signing Date and the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no ERISA Event has occurred or is reasonably expected to occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) neither the Borrower, nor its Subsidiaries sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law and that may not be terminated by the Borrower, a Subsidiary or any ERISA Affiliate in its sole discretion at any time without liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) neither the Borrower, its Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time during the current calendar year or the six calendar years preceding the Signing Date and the Effective Date sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Credit Party satisfies an exception set forth in 29 C.F.R. Section 2510.3-101 (as modified by Section 3(42) of ERISA) so that its underlying assets do not constitute assets of a Benefit Plan and the Transactions are neither prohibited transactions (as defined in Section 406 of ERISA or Section 4975 of the Code) nor in violation of any state statutes, applicable to a Credit Party that regulate investments of, and fiduciary obligations with respect to, governmental plans, that are similar to the provisions of Section 406 of ERISA or Section 4975 of the Code.

**Section 7.11 <u>Disclosure; No Material Misstatements</u>**. Each of the Parent, the General Partner and the Borrower has disclosed or made available to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which it or any of the Restricted Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the other reports, financial statements, certificates or other factual information furnished by or on behalf of the Parent, the General Partner, the Borrower or any Restricted Subsidiary in writing to the Administrative Agent or any Lender or any of their Affiliates in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished), taken as a whole,

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contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading as of the date made or deemed made; *provided* that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed by the Borrower to be reasonable at the time it being understood that (i) any such projected financial information is merely a prediction as to future events and it's not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Borrower or any of its Subsidiaries and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material and that the Borrower makes no representation that such projections will be realized. There are no statements or conclusions in any Reserve Report which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Borrower and its Restricted Subsidiaries do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

**Section 7.12 <u>Insurance</u>**. Subject to <u>Section</u> <u>8.06(a)</u>, each of the Parent, the General Partner and the Borrower has, and has caused all of the Restricted Subsidiaries to have with respect to its business and properties, (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are customarily insured against by business entities similarly situated and engaged in the same or a similar business for the assets and operations of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries (as determined in the reasonable business judgment of the senior management of the Borrower). Subject to <u>Section</u> <u>8.06(a)</u>, the Administrative Agent and the Lenders have been named as additional insureds in respect of such liability insurance policies and the Administrative Agent has been named as lender loss payee and mortgagee with respect to Property loss insurance.

**Section 7.13 <u>Subsidiaries</u>**. Except as set forth on <u>Schedule</u> <u>7.13</u> or as disclosed in writing after the Signing Date and the Effective Date to the Administrative Agent (which shall promptly furnish a copy to the Lenders and which shall be a supplement to <u>Schedule</u> <u>7.13</u>), the Borrower has no Subsidiaries. <u>Schedule</u> <u>7.13</u> (as supplemented as contemplated by this <u>Section</u> <u>7.13</u>) identifies each Subsidiary as either a Restricted Subsidiary or an Unrestricted Subsidiary. The Borrower has no Foreign Subsidiaries. Each Subsidiary is a Wholly-Owned Subsidiary.

**Section 7.14 <u>Properties; Defensible Title</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for Immaterial Title Deficiencies, each of the Borrower and the Restricted Subsidiaries has good and defensible title to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been Disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms) and valid title to all its material personal

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Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section</u> <u>9.03</u>. After giving full effect to the Excepted Liens, the Borrower or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been Disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms), and the ownership of such Properties shall not in the aggregate in any material respect obligate the Borrower or such Restricted Subsidiary to bear the costs and expenses relating to the maintenance, development and operations of each such Property in an amount in excess of the working interest of each Property set forth in the most recently delivered Reserve Report that is not offset by a corresponding proportionate increase in the Borrower's or such Restricted Subsidiary's net revenue interest in such Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All material leases and agreements necessary for the conduct of the business of the Borrower and its Restricted Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases, which could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The rights and Properties presently owned, leased or licensed by the Borrower and its Restricted Subsidiaries including, without limitation, all easements and rights of way, include all rights and Properties necessary to permit the Borrower and its Restricted Subsidiaries to conduct their business as currently conducted, except to the extent any failure to have any such rights or Properties could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All of the Properties of the Borrower and its Restricted Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards, except to the extent any failure to satisfy the foregoing could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Borrower and each Restricted Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Borrower and such Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower and its Restricted Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, which limitations are customary for companies engaged in the business of the exploration and production of Hydrocarbons, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.

**Section 7.15 <u>Maintenance of Properties</u>**. Except for such acts or failures to act as could not be reasonably expected to have a Material Adverse Effect, the Oil and Gas Properties with respect to which the Borrower and its Restricted Subsidiaries own any executive rights (and Properties unitized therewith) of the Borrower and its Restricted Subsidiaries have been maintained, operated and developed in a good and workmanlike manner and in conformity with all Governmental Requirements and in conformity with the provisions of all leases, subleases or

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other contracts comprising a part of the Hydrocarbon Interests and other contracts and agreements forming a part of the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries. Specifically in connection with the foregoing, except for those as could not be reasonably expected to have a Material Adverse Effect, (a) no Oil and Gas Property of the Borrower or any Restricted Subsidiary is subject to having allowable production reduced below the full and regular allowable (including the maximum permissible tolerance) because of any overproduction (whether or not the same was permissible at the time) and (b) none of the wells comprising a part of the Oil and Gas Properties (or Properties unitized therewith) of the Borrower or any Restricted Subsidiary is deviated from the vertical more than the maximum permitted by Governmental Requirements, and such wells are, in fact, bottomed under and are producing from, and the well bores are wholly within, the Oil and Gas Properties (or in the case of wells located on Properties unitized therewith, such unitized Properties) of the Borrower or such Restricted Subsidiary. All pipelines, wells, gas processing plants, platforms and other material improvements, fixtures and equipment with respect to which the Borrower or any of its Restricted Subsidiaries own any executive rights and that are necessary to conduct normal operations are being, or, in the case of such pipelines, wells, gas processing plants, platforms and other material improvements, fixtures and equipment the maintenance of which is performed by a third-party operator, the Borrower is using its commercially reasonable efforts to cause such items to be, and to the Borrower's knowledge such items are maintained in a state adequate to conduct normal operations, and with respect to such of the foregoing which are operated by the Borrower or any of its Restricted Subsidiaries, in a manner consistent with the Borrower's or its Restricted Subsidiaries' past practices (other than those the failure of which to maintain in accordance with this <u>Section</u> <u>7.15</u> could not reasonably be expected to have a Material Adverse Effect).

**<u>Section 7.16 Gas Imbalances; Prepayments</u>**. To the extent the Borrower or any of its Restricted Subsidiaries take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except as set forth on <u>Schedule</u> <u>7.16</u><u>,</u> as of the Signing Date and the Effective Date, and thereafter either disclosed in writing to the Administrative Agent and the Lenders or included in the most recent Reserve Report Certificate, as of the date thereof, on a net basis there are no imbalances, take or pay or other prepayments which would require the Borrower or any of its Restricted Subsidiaries to deliver Hydrocarbons produced from their Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor other than imbalances, take-or-pay or other prepayments and balancing rights incurred in the ordinary course of business and which imbalances, take-or-pay, or other prepayments and balancing rights, in the aggregate, do not exceed $1,000,000.

**<u>Section 7.17 Marketing of Production</u>**. To the extent the Borrower or any of its Restricted Subsidiaries take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except for contracts listed and in effect on the Signing Date and the Effective Date on <u>Schedule</u> <u>7.1</u><u>7</u>, or hereafter either disclosed in writing to the Administrative Agent or included in the most recently delivered Reserve Report, as of the date thereof, (with respect to all of which contracts the Borrower represents that it or its Restricted Subsidiaries are receiving a price for all production sold thereunder which is computed substantially in accordance with the terms of the relevant contract), no material agreements exist which are not cancelable on 60 days' notice or less without penalty or detriment, for the sale of production from the Borrower's and its Restricted Subsidiaries' Hydrocarbons (including, calls on or other rights to purchase, production, whether or not the same are currently being exercised) that pertain to the sale of production at a fixed price

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and have a maturity or expiry date of longer than six (6) months from the date thereof or the date of delivery of such Reserve Report Certificate.

**Section 7.18 <u>Swap Agreements and Qualified ECP Guarantor</u>**. The most recently delivered report required to be delivered by the Borrower pursuant to <u>Section</u> <u>8.01(e)</u>, as of the date thereof, sets forth a true and complete list of all Swap Agreements of the Borrower and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Borrower is a Qualified ECP Guarantor.

**Section 7.19 <u>Use of Loans and Letters of Credit</u>**. The proceeds of the Loans and the Letters of Credit shall be used (i) to provide working capital and for acquisitions of Oil and Gas Properties permitted hereunder, (ii) for general corporate purposes of the Borrower and its Restricted Subsidiaries and (iii) to pay fees and expenses incurred in connection with the Transactions. The Borrower and its Restricted Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loan or Letter of Credit will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

**Section 7.20 <u>Solvency</u>**. After giving effect to the Transactions and each Borrowing made hereunder and each issuance, amendment, extension or renewal of any Letter of Credit hereunder, (a) the Borrower is Solvent and (b) the Parent, the General Partner, the Borrower and the other Credit Parties, on a consolidated basis, are Solvent.

**Section 7.21 <u>Anti</u><u>-</u><u>Corruption Laws, Sanctions and Patriot Act</u>**. Each of the Parent, the General Partner, and the Borrower has implemented and maintains in effect policies and procedures reasonably designed to promote and achieve compliance by the Borrower and its directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Parent, the General Partner, the Borrower, its Subsidiaries, and their respective directors, officers, employees and, to the Borrower's knowledge, agents are in compliance with all Anti-Corruption Laws, Anti-Money Laundering Laws, and applicable Sanctions and are not in violation of any laws prohibiting transactions involving proceeds of specified unlawful activity within the meaning of 18 U.S.C. § 1956. None of (a) the Parent, the General Partner, the Credit Parties or any of their respective directors, officers or employees, or (b) to the Borrower's direct knowledge, any agent of the Parent, the General Partner, the Credit Parties that will act in any capacity in connection with the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, direct use of proceeds or other transaction by the Parent, the General Partner, and/or the Credit Parties contemplated by this Agreement will violate any Anti-Corruption Law or applicable Sanctions.

**Section 7.22 <u>Affected Financial Institution</u>**. No Credit Party is an Affected Financial Institution.

**Section 7.23 <u>Security Instruments</u>**. As of the Effective Date, the Security Instruments are effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties,

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a legal, valid and enforceable security interest in the Mortgaged Properties and proceeds thereof, subject, in the case of enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity and principles of good faith and fair dealing. The Obligations are and shall be at all times secured by legal, valid and enforceable, perfected first priority Liens in favor of the Administrative Agent, covering and encumbering the Collateral (*provided* that Liens permitted under <u>Section</u> <u>9.03</u> may exist).

**Section 7.24 <u>Senior</u> <u>Indebtedness</u> <u>Status</u>**. The Obligations of each Credit Party under this Agreement and each of the other Loan Documents ranks and shall continue to rank at least senior in priority of payment to all subordinated Debt and all senior unsecured Debt of each such Person and is designated as "Senior Indebtedness" under all instruments and documents, now or in the future, relating to all subordinated Debt and all senior unsecured Debt of such Person.

**Section 7.25 <u>Beneficial Ownership</u>**. As of the Signing Date and the Effective Date, the information included in each Beneficial Ownership Certification, if any, is true and correct in all material respects.

**Section 7.26 <u>Outbound Investment Rules</u>**. None of the Parent, the General Partner, the Borrower or any of its Subsidiaries is a 'covered foreign person' as that term is used in the Outbound Investment Rules. None of the Parent, the General Partner, the Borrower or any of its Subsidiaries currently engages, or has any present intention to engage in the future, directly or indirectly, in (i) a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, (ii) any activity or transaction that would constitute a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, if the Parent, the General Partner and the Borrower were a U.S. Person or (iii) any other activity that would cause the Administrative Agent or the Lenders to be in violation of the Outbound Investment Rules or cause the Administrative Agent or the Lenders to be legally prohibited by the Outbound Investment Rules from performing under this Agreement.

**Section 7.27 <u>No Operation</u><u>s</u>**. None of the Borrower or any of its Restricted Subsidiaries (a) takes in kind any Hydrocarbons attributable or allocable to its Oil and Gas Properties or (b) engages in any material operating activities with respect to its Oil and Gas Properties.

**ARTICLE VIII** 

**AFFIRMATIVE COVENANTS** 

On and after the Effective Date, until the Release Date, the Borrower (and (i) each of the Parent and the General Partner solely with respect to <u>Sections 8.03</u>, <u>8.04</u>, <u>8.06</u>, <u>8.08</u>, <u>8.10</u>, <u>8.13(c)</u>, <u>8.18</u>, <u>8.21</u> and <u>8.23</u> and (ii) the Parent with respect to <u>Sections 8.01(a)</u>, <u>8.01(b)</u>, <u>8.01(c)</u> and <u>8.22</u>), for itself and for each of its Restricted Subsidiaries, covenants and agrees with the Lenders that:

**Section 8.01 <u>Financial Statements; Other Information</u>**. The Borrower (and the Parent, with respect to <u>Sections 8.01(a)</u>, <u>8.01(b)</u> and <u>8.01(c)</u>) will furnish to the Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Financial Statements</u>. As soon as available and in any event no later than the date on which such financial statements are required to be filed with the SEC (after giving effect to any permitted extensions) (but in any event on or before the date that is ninety (90) days

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after the end of each such fiscal year of the Borrower), beginning with the fiscal year ending December 31, 2026, the audited consolidated balance sheet and related statements of operations, shareholders' equity and cash flows of the Borrower as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year (except with respect to the audited financial statements as of and for the period ending December 31, 2026), all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit other than a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>). Notwithstanding the foregoing, the obligations set forth in this <u>Section</u> <u>8.01(a)</u> may be satisfied with respect to the delivery of financial statements of the Borrower and its Consolidated Subsidiaries by furnishing to the Administrative Agent and each Lender: (A) the Parent's audited consolidated balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such year, setting forth in each case, where available, in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit other than a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of such Person and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>) and (B) concurrently with the financial information required by this <u>clause (a)</u>, consolidating information that explains in reasonable detail the differences between the information relating to the Parent and its Consolidated Subsidiaries, on the one hand, and the information relating to the Borrower and its Consolidated Restricted Subsidiaries, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Quarterly Financial Statements</u>. As soon as available and in any event no later than the date on which such financial statements are required to be filed with the SEC (after giving effect to any permitted extensions) with respect to each of the first three quarterly accounting periods in each fiscal year of the Borrower and the Parent (but in any event on or before the date that is sixty (60) days after the end of each such quarterly accounting period), commencing with the fiscal quarter ending June 30, 2026, (i) the consolidated balance sheet and related statements of operations, shareholders' equity and cash flows of the Parent and (ii) the consolidated balance sheet and related statement of operations partners' equity and cash flows of the Borrower, in each case, as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year (except for any fiscal year or fiscal quarters ending on or prior to December 31, 2026 for which no comparisons will be delivered), in each case, all certified by one of its Financial Officers as presenting fairly in all material respects the financial position and results of operations of (A) in the case of the financial statements described in clause (i) above, the Parent and its Consolidated Subsidiaries and (b) in the case of the financial statements described in clause (ii) above, the Borrower and its Consolidated Subsidiaries, in each case, on a consolidated basis in accordance with GAAP

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consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>), subject to normal year-end adjustments and the absence of footnotes. Notwithstanding the foregoing, the obligations set forth in this <u>Section</u> <u>8.01(b)</u> may be satisfied with respect to the delivery of financial statements of the Borrower and its Consolidated Restricted Subsidiaries by furnishing to the Administrative Agent and each Lender: (A) the Parent's consolidated balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Parent and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>), subject to normal year-end audit adjustments and the absence of footnotes, and (B) concurrently with the financial information required by this <u>clause (b)</u>, consolidating information that explains in reasonable detail the differences between the information relating to Parent and its Consolidated Subsidiaries, on the one hand, and the information relating to the Borrower and its Consolidated Restricted Subsidiaries, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate of Financial Officer – Compliance</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a certificate of a Financial Officer of each of the Borrower and the Parent in substantially the form of <u>Exhibit</u> <u>D</u> hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Section</u> <u>9.01</u>, (iii) stating whether any change in GAAP or in the application thereof has occurred since the Effective Date and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate, and (iv) listing each Restricted Subsidiary and specifying whether such Restricted Subsidiary is or is not a Guarantor (and (A) specifying the identity of each Immaterial Subsidiary and each Material Subsidiary as of the end of such fiscal quarter or fiscal year, as applicable (and including reasonable detail, in form and substance satisfactory to the Administrative Agent, with respect thereto) and (B) if necessary, designating sufficient additional Subsidiaries as Material Subsidiaries so as to comply with the definition of "Material Subsidiary").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Certificate of Financial Officer – Consolidating Information</u>. If, at any time, all of the Consolidated Subsidiaries of the Borrower are not Consolidated Restricted Subsidiaries, then concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a certificate of a Financial Officer setting forth consolidating spreadsheets that show all Consolidated Unrestricted Subsidiaries and the eliminating entries, in such form as would be presentable to the auditors of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Financial Officer – Swap Agreements</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a certificate of a Financial Officer (each, a "<u>Swap Agreement Certificate</u>"), in form and substance satisfactory to the Administrative Agent, setting forth (i) as of a recent date, a true and complete list of all Swap Agreements of the Borrower and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor, any margin required or supplied under any credit support document, and

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the counterparty to each such agreement, (ii) reasonably detailed calculations of the reasonably anticipated forecasted production of crude oil and natural gas calculated separately, from the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries for each month during the immediately succeeding twelve-month period and (iii) reasonably detailed calculations setting forth the Borrower's compliance with <u>Section</u> <u>9.14(b)</u> for the most recent Test Quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Business and Financial Plan</u>. On or before the date that is sixty (60) days after the end of each fiscal year of the Borrower, consolidated quarterly financial projections and budgets for the Borrower and its Restricted Subsidiaries for the then-current fiscal year, which shall be in form and detail reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certificate of Insurer – Insurance Coverage</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u>, a certificate of insurance coverage from each insurer with respect to the insurance required by <u>Section</u> <u>8.06</u>, in form and substance reasonably satisfactory to the Administrative Agent, and, if requested by the Administrative Agent or any Lender, all copies of the applicable policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Accounting Reports</u>. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Parent, the General Partner, the Borrower or any of its Subsidiaries by independent accountants (other than customary and standard correspondence) in connection with any annual, interim or special audit made by them of the books of the Borrower or any such Subsidiary, and a copy of any response by the Parent, the General Partner, the Borrower or any such Subsidiary, or the board of directors (or comparable governing body) of the Borrower or any such Subsidiary, to such letter or report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>List of Operators</u>. If requested by the Administrative Agent, concurrently with the delivery of any Reserve Report to the Administrative Agent under <u>Section</u> <u>8.11(a)</u>, a list of all Persons operating the Borrower's or any Restricted Subsidiaries' Oil and Gas Properties which account for greater than 10% of the revenues resulting from the sale of all Hydrocarbons from the Borrower's or any Restricted Subsidiaries' Oil and Gas Properties during the most recently ended fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Notice of Sales of Oil and Gas Properties and Termination of Swap Agreements</u>. In the event the Borrower or any Restricted Subsidiary intends to Dispose of any Oil and Gas Properties (other than Hydrocarbons in the ordinary course of business) or any Equity Interests in any Restricted Subsidiary in accordance with <u>Section</u> <u>9.09(d)</u>, in each case, that would (i) prior to the Discharge of Second Lien Obligations, constitute a Material Disposition and (ii) following the Discharge of Second Lien Obligations, result in a Borrowing Base reduction pursuant to <u>Section</u> <u>2.07(e)</u>, written notice of such disposition no later than two (2) Business Days prior to such disposition (or such later date as the Administrative Agent may agree in its sole discretion), the price thereof and any other details thereof reasonably requested by the Administrative Agent. In the event that the Borrower or any Subsidiary receives any notice of early termination of any material Swap Agreement to which it is a party from any of its counterparties, or any material Swap Agreement to which the Borrower or any Subsidiary is a party is terminated, prompt written notice of the receipt of such early termination notice or such termination, as the case may be, together with a reasonably detailed description thereof and any other details thereof reasonably requested by the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Patriot Act and Beneficial Ownership</u>. Promptly following any request therefor, information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable "know your customer" requirements under the Patriot Act, the Beneficial Ownership Regulation or other applicable anti-money laundering laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Information Regarding the Parent, the General Partner, the Borrower and Guarantors</u>. Prompt written notice (and in any event within three (3) Business Days thereafter or such later date as the Administrative Agent may agree in its sole discretion) of any change (i) in the Parent's, the General Partner's, the Borrower's or any Guarantor's organizational name, (ii) in the location of the Parent's, the General Partner's, the Borrower's or any Guarantor's chief executive office or principal place of business, (iii) in the Parent's, the General Partner's, the Borrower's or any Guarantor's identity or organizational structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in the Parent's, the General Partner's, the Borrower's or any Guarantor's organizational identification number in such jurisdiction of organization, and (v) in the Parent's, the General Partner's, the Borrower's or any Guarantor's federal taxpayer identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Production Report and Lease Operating Statements</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a report setting forth, for each month during the 12-month period ending on the last day of such fiscal quarter, (i) the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) from the Oil and Gas Properties and (ii) the ad valorem, severance and production taxes and lease operating expenses attributable to the Oil and Gas Properties and setting forth the operator of record for the Oil and Gas Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Notices of Certain Changes</u>. Promptly, but in any event within three (3) Business Days after the execution thereof (or such later date as the Administrative Agent may agree in its sole discretion), copies of any amendment, modification or supplement to the certificate or articles of incorporation or formation, bylaws, certificate or articles of organization, regulations or limited liability company agreement, any preferred stock designation or any other organizational document of the Parent, the General Partner, the Borrower or any Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Incurrence of Permitted Senior Notes</u>. (i) In the event the Borrower or any Restricted Subsidiary intends to incur any Permitted Senior Notes in reliance on <u>Section</u> <u>9.02(j)</u>, at least five (5) Business Days' (or such shorter notice as the Administrative Agent may agree in its sole discretion) prior written notice of such intended incurrence, the intended principal amount thereof and the anticipated date of closing and (ii) no later than five (5) Business Days after the offering of any Permitted Senior Notes, a copy of the preliminary offering memorandum (if any) and the final offering memorandum (if any) and any other material documents relating to such Permitted Senior Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Other Requested Information</u>. Promptly following any reasonable request therefor, such other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary (including, without limitation, any Plan sponsored by the Borrower or a Subsidiary and any reports or other information required to be filed with respect thereto under the Code or under ERISA), or compliance with the terms of this Agreement or any other Loan Document, as the Administrative Agent or any Lender may reasonably request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Amendments and Notices Under Material Instruments</u>. Promptly, but in any event within three (3) Business Days after the execution or actual receipt thereof (or such later date as the Administrative Agent may agree in its sole discretion), (i) copies of any amendment, modification or supplement to any of the Second Lien Note Documents, Senior Note Documents or any documentation governing Debt for borrowed money constituting Material Debt and (ii) copies of any financial statement, certificate, report, notice or other information furnished to or by the Parent, the General Partner, the Borrower or any Restricted Subsidiary pursuant to the terms of the Second Lien Note Documents, any Senior Note Documents, or any other Debt for borrowed money constituting Material Debt, in each case to the extent not otherwise required to be furnished to the Lenders pursuant to any other provision of this <u>Section</u> <u>8.01</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Consolidated Net Leverage Ratio</u>. No later than three (3) Business Days prior to the consummation of any event or transaction that requires the calculation of, and compliance with, a Consolidated Net Leverage Ratio (in each case, other than with respect to any calculation or compliance requirement set forth in <u>Section</u> <u>9.04</u>), a certificate of a Responsible Officer of the Borrower with respect to the Consolidated Net Leverage Ratio, setting forth the Borrower's reasonably detailed and certified calculations of such Consolidated Net Leverage Ratio on a Pro Forma Basis and demonstrating compliance with the applicable Consolidated Net Leverage Ratio requirement; provided, this <u>Section</u> <u>8.01(r)</u> shall only apply prior to the Discharge of Second Lien Obligations.

Documents required to be delivered pursuant to <u>Section</u> <u>8.01(a)</u>, <u>(b)</u>, <u>(g)</u> or <u>(h)</u> may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Parent's or the Borrower's public website; or (ii) on which such documents are posted on the Borrower's behalf on an Internet or intranet website (including the SEC's EDGAR website), if any, to which each Lender and the Administrative Agent have been provided access (whether a commercial, third-party website or whether sponsored by the Administrative Agent).

**Section 8.02 <u>Notices of Material Events</u>**. Promptly (and in any event within three (3) Business Days) after a Responsible Officer of the Borrower or any Subsidiary obtains knowledge thereof, the Borrower will furnish to the Administrative Agent (which shall make such information available to the Lenders) written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Restricted Subsidiary not previously disclosed in writing to the Lenders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Lenders) that, in either case, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

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Each notice delivered under this <u>Section</u> <u>8.02</u> shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 8.03 <u>Existence; Conduct of Business</u>**. Each of the Parent, the General Partner and the Borrower will, and will cause each Restricted Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect (a) its legal existence in a jurisdiction of the United States and (b) the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Oil and Gas Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect; *provided* that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under <u>Section</u> <u>9.08</u>.

**Section 8.04 <u>Payment of Taxes</u>**. Each of the Parent, the General Partner and the Borrower will, and will cause each Subsidiary to, file (or cause to be filed) all federal, state and other tax returns and reports required to be filed and shall pay (or cause to be paid) when due all Taxes levied or imposed upon them or their properties, income or assets, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings and the Parent, the General Partner, the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Effect or result in the seizure or levy of any Borrowing Base Property or other material Property of the Parent, the General Partner, the Borrower or any Subsidiary.

**Section 8.05 <u>Operation and Maintenance of Properties</u>**. Except, in each case, where the failure to comply could not reasonably be expected to have a Material Adverse Effect, the Borrower, at its own expense, will, and will cause each Restricted Subsidiary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the extent the Borrower or any Restricted Subsidiary owns any executive rights with respect thereto, operate its Oil and Gas Properties and other material Properties or cause such Oil and Gas Properties and other Properties to be operated in a careful and efficient manner in accordance with the practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all Governmental Requirements, including, without limitation, applicable proration requirements and Environmental Laws, and all applicable laws, rules and regulations of every other Governmental Authority from time to time constituted to regulate the development and operation of its Oil and Gas Properties and the production and sale of Hydrocarbons and other minerals therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent the Borrower or any Restricted Subsidiary owns any executive rights with respect thereto, maintain and keep in good repair, working order and efficiency (ordinary wear and tear excepted) all of its Oil and Gas Properties and other Properties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent the Borrower or any Restricted Subsidiary owns any executive rights with respect thereto, to the extent the Borrower is not the operator of any Property, the Borrower shall use commercially reasonable efforts to cause the operator to comply with this <u>Section</u> <u>8.05</u>.

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**Section 8.06 <u>Insurance</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the date that is five (5) Business Days after the Effective Date (or such later date as the Administrative Agent may agree in its sole discretion), the Borrower shall deliver to the Administrative Agent certificates of insurance coverage of the Borrower and the Restricted Subsidiaries evidencing that Borrower and the Restricted Subsidiaries are carrying insurance in accordance with <u>Section</u> <u>7.12</u>. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to <u>Section</u> <u>8.06(a)</u> above, each of the Parent, the General Partner and the Borrower will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (a) in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations and (b) in accordance with all Governmental Requirements. Subject to <u>Section</u> <u>8.06(a)</u> above, the loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral for the Loans shall be endorsed in favor of and made payable to the Administrative Agent as its interests may appear and such policies shall name the Administrative Agent and the Lenders as "additional insureds" and the Administrative Agent as lender loss payee (and mortgagee, if applicable) and provide that the insurer will endeavor to give at least thirty (30) days' prior notice of any cancellation to the Administrative Agent.

**Section 8.07 <u>Books and Records; Inspection Rights</u>**. The Borrower will, and will cause each Restricted Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each Restricted Subsidiary to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; *provided*, that so long as no Event of Default has occurred and is continuing and no Borrowing Base Deficiency exists, the Borrower and its Restricted Subsidiaries shall not be required to reimburse the Administrative Agent for more than one (1) inspection during any fiscal year.

**Section 8.08 <u>Compliance with Laws</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parent, the General Partner and the Borrower will, and will cause each Restricted Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parent, the General Partner and the Borrower will, and will cause each of its Subsidiaries to, maintain in effect such policies and procedures reasonably designed to promote and achieve compliance by the Parent, the General Partner, the Borrower and its Subsidiaries and each of their respective directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions.

**Section 8.09 <u>Environmental Matters</u>**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall: (i) comply, and shall cause its Properties and operations and each Restricted Subsidiary and each Restricted Subsidiary's Properties and operations to comply (with respect to Oil and Gas Properties, solely to the extent such Person has executive rights therein), with all applicable Environmental Laws, except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect; (ii) not Release or threaten to Release, and shall cause each Restricted Subsidiary not to Release or threaten to Release, any Hazardous Material on, under, about or from any of the Borrower's or its Restricted Subsidiaries' Properties or any other property offsite the Property to the extent caused by the Borrower's or any of its Restricted Subsidiaries' operations except in compliance with applicable Environmental Laws, in each case such Release or threatened Release of which could reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Restricted Subsidiary to timely obtain or file, all Environmental Permits, if any, required under applicable Environmental Laws to be obtained or filed in connection with its operation or use of the Borrower's or its Restricted Subsidiaries' Properties, which failure to obtain or file could reasonably be expected to have a Material Adverse Effect; (iv) promptly commence and diligently prosecute to completion, and shall cause each Restricted Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations to the extent required to be completed by the Borrower or any Restricted Subsidiary under Environmental Law (collectively, the "<u>Remedial Work</u>") in the event any Remedial Work is required by the Borrower or any Restricted Subsidiary under applicable Environmental Laws because of or in connection with the actual or suspected past, present or future Release or threatened Release of any Hazardous Material on, under, about or from any of the Borrower's or its Restricted Subsidiaries' Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; (v) conduct, and cause its Restricted Subsidiaries to conduct, their respective operations and businesses in a manner that will not expose any Property or Person to Hazardous Materials in violation of Environmental Law, if such exposure could reasonably be expected to have a Material Adverse Effect; and (vi) establish and implement, and shall cause each Restricted Subsidiary to establish and implement, such procedures as may be deemed reasonably necessary by the Borrower and its Restricted Subsidiaries to regularly determine and assure that the Borrower's and its Restricted Subsidiaries' obligations under this <u>Section</u> <u>8.09(a)</u> are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower will promptly, but in no event later than fifteen (15) days after the Borrower obtains knowledge thereof, notify the Administrative Agent and the Lenders in writing of any threatened (in writing) action, investigation or inquiry by any Governmental Authority or any threatened demand (in writing) or lawsuit by any Person against the Borrower or its Restricted Subsidiaries or their Properties of which the Borrower has knowledge in connection with any Environmental Laws if the Borrower reasonably anticipates that such action will result in liability (whether individually or in the aggregate), if not covered by insurance, which could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will, and will cause each Restricted Subsidiary to, provide all environmental assessments, audits and tests obtained by the Borrower or any Restricted Subsidiary in connection with any future acquisition of Oil and Gas Properties or other Properties to the Administrative Agent and the Lenders.

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**Section 8.10 <u>Further Assurances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parent, the General Partner and the Borrower at its sole expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Administrative Agent all documents, agreements and instruments reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Parent, the General Partner, the Borrower or any Restricted Subsidiary, as the case may be, in the Loan Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Security Instruments, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Administrative Agent, in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Parent, the General Partner and the Borrower hereby authorizes the Administrative Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Mortgaged Property without the signature of the Parent, the General Partner, the Borrower or any Guarantor where permitted by law. A carbon, photographic or other reproduction of the Security Instruments or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. The Borrower acknowledges and agrees that any such financing statement may describe the collateral as "all assets" of the applicable Credit Party or words of similar effect as may be required by the Administrative Agent.

**Section 8.11 <u>Reserve Reports</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before March 15th and September 15th of each year, commencing with the first such date to occur after the Effective Date, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report evaluating, as of the immediately preceding July 1st (for each September 15th delivery) and January 1st (for each March 15th delivery), the Proved Reserves of the Borrower and the Restricted Subsidiaries located within the geographic boundaries of the United States of America. The Reserve Report as of January 1st (for each March 15th delivery) of each year shall be prepared by one or more Approved Petroleum Engineers, and the Reserve Report as of July 1st (for each September 15th delivery) of each year shall be prepared by or under the supervision of the chief engineer or qualified agent of the Borrower who shall certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used in the immediately preceding January 1st Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of an Interim Redetermination, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report prepared, at the election of the Borrower, (i) by one or more Approved Petroleum Engineers or (ii) by or under the supervision of the chief engineer or qualified agent of the Borrower who shall certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used in the immediately preceding January 1st Reserve Report. For any Interim Redetermination requested by the Administrative Agent or the Borrower pursuant to <u>Section</u> <u>2.07(b)</u>, the Borrower shall provide such Reserve Report with an "as of" date as required by the Administrative Agent as

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soon as possible, but in any event no later than forty-five (45) days following the receipt of such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With the delivery of each Reserve Report, the Borrower shall provide to the Administrative Agent a Reserve Report Certificate from a Responsible Officer certifying that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct, it being understood by the Administrative Agent and the Lenders that projections concerning volumes and production and cost estimates contained in each Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Borrower nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii) the Borrower or another Credit Party has good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report (other than those (x) to be acquired in connection with an acquisition, (y) Disposed of since the date of such Reserve Report as permitted in accordance with the terms hereof, and (z) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free (or will be at the time of the acquisition thereof) of all Liens except for Liens permitted by <u>Section</u> <u>9.03</u>, (iii) to the extent the Credit Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except as set forth on an exhibit to the certificate or previously disclosed to the Administrative Agent in writing, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the dollar threshold specified in <u>Section</u> <u>7.16</u>, with respect to the Credit Parties' Oil and Gas Properties evaluated in such Reserve Report which would require the Borrower or any other Credit Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Borrowing Base Properties have been sold since the date of the last Borrowing Base determination except (A) those Borrowing Base Properties listed on such certificate as having been Disposed, or (B) as previously disclosed to the Administrative Agent in writing, (v) attached to the certificate is a list of all material marketing agreements (which are not cancellable on 120 days' notice or less without penalty or detriment) entered into subsequent to the later of the Effective Date or the most recently delivered Reserve Report which the Borrower could reasonably be expected to have been obligated to list on <u>Schedule</u> <u>7.17</u> had such agreement been in effect on the Effective Date, and (vi) attached thereto is a schedule demonstrating compliance or noncompliance (calculated at the time of delivery of such Reserve Report) with the Collateral Coverage Minimum and, in the case of noncompliance, the steps that will be taken to comply with this <u>Section</u> <u>8.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition to Reserve Reports delivered pursuant to the foregoing <u>clauses (a)</u> and <u>(b)</u>, the Borrower shall furnish to the Administrative Agent and the Lenders any Reserve Report furnished to the Second Lien Agent substantially simultaneously with the delivery of such Reserve Report to the Second Lien Agent, together with any reserve database or other supporting materials used in preparing such Reserve Report that were delivered to the Second Lien Agent.

**Section 8.12 <u>Title Information</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the delivery to the Administrative Agent and the Lenders of each Reserve Report required by <u>Section</u> <u>8.11(a)</u> and, prior to the Discharge of Second Lien Obligations, <u>Section</u> <u>8.11(d)</u>, the Borrower will deliver title information in form and substance reasonably acceptable to the Administrative Agent covering enough of the Oil and Gas Properties

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evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Administrative Agent shall have received together with title information previously delivered to the Administrative Agent, reasonably satisfactory title information on at least the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Borrower has provided title information for additional Properties under <u>Section</u> <u>8.12(a)</u> and, prior to the Discharge of Second Lien Obligations, <u>Section</u> <u>8.11(d)</u>, the Borrower shall, within sixty (60) days after notice from the Administrative Agent that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by <u>Section</u> <u>9.03</u> raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions (provided that Excepted Liens of the type described in clauses (a) through (d) and (f) of the definition thereof may exist, but subject to the provisos at the end of such definition) having an equivalent value, or (iii) deliver title information in form and substance reasonably acceptable to the Administrative Agent so that the Administrative Agent shall have received, together with title information previously delivered to the Administrative Agent, satisfactory title information on at least the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Borrower is unable to cure any title defect requested by the Administrative Agent or the Lenders to be cured within the 60-day period or the Borrower does not comply with the requirements to provide acceptable title information covering the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated in the most recent Reserve Report, such failure shall not be a Default, but instead the Administrative Agent and/or the Required Lenders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Administrative Agent or the Lenders. To the extent that the Administrative Agent or the Required Lenders are not reasonably satisfied with title to any Mortgaged Property after the 60-day period has elapsed, such unacceptable Mortgaged Property shall not count for purposes of the Required Title Percentage requirements, and the Administrative Agent may send a notice to the Borrower and the Lenders that the then outstanding Borrowing Base shall be reduced by an amount as determined by the Required Lenders to cause the Borrower to be in compliance with the requirement to provide reasonably acceptable title information on the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties. This new Borrowing Base shall become effective immediately after receipt of such notice.

**Section 8.13 <u>Additional Collateral; Additional Guarantors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with (i) prior to the Discharge of Second Lien Obligations, the delivery of each Reserve Report hereunder and (ii) following the Discharge of Second Lien Obligations, each redetermination of the Borrowing Base (each of the events described in the foregoing clauses (i) and (ii), a "<u>Collateral Review Event</u>"), the Borrower shall review the Reserve Report and the list of current Mortgaged Properties (as described in <u>Section</u> <u>8.11(c)(vi</u>)), to ascertain whether the Mortgaged Properties represent at least the Required Mortgage Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated in the most recently completed Reserve Report after giving effect to exploration and production activities, acquisitions, Dispositions and

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production (the "<u>Collateral Coverage Minimum</u>"). In the event that the PV-9 of the Mortgaged Properties (calculated at the time of such Collateral Review Event) does not satisfy the Collateral Coverage Minimum, then the Borrower shall, and shall cause its Restricted Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under <u>Section</u> <u>8.11(c)</u> (or such longer period as the Administrative Agent may agree in its sole discretion but not to extend beyond a total of ninety (90) days following the delivery of such certificate), to the Administrative Agent as security for the Obligations a first-priority Lien interest (provided that Liens permitted under <u>Section</u> <u>9.03</u> may exist) on additional Oil and Gas Properties of the Borrower and the Restricted Subsidiaries not already subject to a Lien of the Security Instruments such that after giving effect thereto, the PV-9 of the Mortgaged Properties (calculated at the time of such Collateral Review Event) meets the Collateral Coverage Minimum. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, mortgages, security agreements and financing statements or other Security Instruments, all in form and substance reasonably satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Restricted Subsidiary places a Lien on its Oil and Gas Properties and such Restricted Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with <u>Section</u> <u>8.13(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) the Borrower or any Restricted Subsidiary creates or acquires any Material Subsidiary, (ii) any Immaterial Subsidiary becomes a Material Subsidiary (whether pursuant to the definition of Material Subsidiary or otherwise), (iii) the Borrower designates an Unrestricted Subsidiary to be a Restricted Subsidiary pursuant to <u>Section</u> <u>9.15(c)</u> and such Restricted Subsidiary constitutes a Material Subsidiary, or (iv) any Restricted Subsidiary incurs or guarantees any Debt or grants any Lien on any Property to secure any Debt, the Borrower shall promptly, but in any event no later than thirty (30) days from the date of such creation, acquisition, designation, determination, incurrence, cessation, incurrence, guarantee or grant (or such longer period as the Administrative Agent may agree in its sole discretion): (A) cause such Restricted Subsidiary to become a Guarantor by executing and delivering to the Administrative Agent a duly executed supplement to the Guarantee and Collateral Agreement (or a supplement or joinder thereto, as applicable), (B) pledge, or cause any Credit Party that owns any Equity Interests of the new Restricted Subsidiary to pledge, in each case, all of the Equity Interests of such new Restricted Subsidiary that are owned by any Credit Party (including delivery of original certificates evidencing the Equity Interests of such Restricted Subsidiary, together with an appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof) and (C) execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the Parent, the General Partner, the Borrower, any Subsidiary or any Guarantor intends to grant any Lien on any Property to secure any Second Lien Obligations, the Borrower will provide at least five (5) Business Days' prior written notice thereof to the Administrative Agent (or such shorter time as the Administrative Agent may agree in its sole discretion), and each of the Parent, the General Partner and the Borrower will, and will cause the Restricted Subsidiaries to, first grant to the Administrative Agent to secure the Obligations a prior Lien on the same Property pursuant to Security Instruments in form and substance satisfactory to the Administrative Agent (and for the avoidance of doubt, whether or not such Property constitutes "Excluded Property" pursuant to the terms of any Loan Document) to the extent a prior Lien has

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not already been granted to the Administrative Agent on such Property. In connection therewith, the Borrower shall, or shall cause its Subsidiaries to, execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent. The Borrower will cause any Subsidiary guaranteeing any Second Lien Obligations to contemporaneously guarantee the Obligations pursuant to the Guarantee and Collateral Agreement and execute a joinder to the Guarantee and Collateral Agreement to the extent such Subsidiary is not already a party to the Guarantee and Collateral Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any provision in any of the Loan Documents to the contrary, in no event is any Building (as defined in the applicable Flood Insurance Regulations) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulations) owned by any Credit Party included in the Mortgaged Property and no Building or Manufactured (Mobile) Home shall be encumbered by any Security Instrument; *provided*, that (i) the applicable Credit Party's interests in all lands and Hydrocarbons situated under any such Building or Manufactured (Mobile) Home shall be included in the Mortgaged Property and shall be encumbered by the Security Instruments and (ii) the Borrower shall not, and shall not permit any of its Restricted Subsidiaries to, permit to exist any Lien on any Building or Manufactured (Mobile) Home except Liens permitted by <u>Section</u> <u>9.03</u> (other than <u>Section</u> <u>9.03(a)</u>).

**Section 8.14 <u>ERISA Compliance</u>**. The Borrower will promptly furnish and will cause the Restricted Subsidiaries to promptly furnish to the Administrative Agent (a) if specifically requested by the Administrative Agent, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual report (Form 5500 series) with respect to each Plan (other than a Multiemployer Plan), (b) if specifically requested by the Administrative Agent, following receipt thereof, if specifically requested by the Administrative Agent copies of any documents described in Sections 101(k) or 101(l) of ERISA that the Borrower, a Subsidiary or any ERISA Affiliate may request with respect to any Multiemployer Plan to which the Borrower, a Subsidiary or any ERISA Affiliate is obligated to contribute or has any liability; provided that if the Borrower, a Subsidiary or any ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, then, upon the specific request of the Administrative Agent, the Borrower, a Subsidiary or any ERISA Affiliate shall promptly make a request for such documents or notices from such administrator or sponsor and the Borrower shall provide copies of such documents and notices to the Administrative Agent promptly after receipt thereof, and (c) promptly upon becoming aware of the occurrence of any ERISA Event that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, a written notice signed by the Borrower specifying the nature thereof, what action the Borrower, a Subsidiary or any ERISA Affiliate taking or proposes to take with respect thereto, and, when known, any action taken or proposed by the Internal Revenue Service or the Department of Labor with respect thereto.

**Section 8.15 <u>Commodity Exchange Act Keepwell Provisions</u>**. The Borrower hereby guarantees the payment and performance of all Obligations of each Credit Party (other than the Borrower) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Credit Party (other than the Borrower) in order for such Credit Party to honor its obligations under the Guarantee and Collateral Agreement including obligations with respect to Swap Agreements (*provided*, *however*, that the Borrower shall only be liable under this <u>Section</u> <u>8.15</u> for the maximum amount of such liability

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that can be hereby incurred without rendering its obligations under this <u>Section</u> <u>8.15</u>, or otherwise under this Agreement or any Loan Document, as it relates to such other Credit Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Borrower under this <u>Section</u> <u>8.15</u> shall remain in full force and effect until the Release Date. The Borrower intends that this <u>Section</u> <u>8.15</u> constitute, and this <u>Section</u> <u>8.15</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Credit Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Section 8.16 <u>Deposit Accounts, Commodity Accounts, and Securities Accounts</u>**. The Borrower shall, and shall cause each Restricted Subsidiary to: (i) deposit or cause to be deposited directly, all Cash Receipts into one or more Deposit Accounts in which the Administrative Agent has been granted a first-priority Lien and that, in each case, is subject to a Control Agreement, (ii) deposit or credit or cause to be deposited or credited directly, all securities and financial assets held or owned by (whether directly or indirectly), credited to the account of, or otherwise reflected as an asset on the balance sheet of, the Borrower and its Restricted Subsidiaries (including, without limitation, all marketable securities, treasury bonds and bills, certificates of deposit, investments in money market funds and commercial paper) into one or more Securities Accounts in which the Administrative Agent has been granted a first-priority Lien and that is subject to a Control Agreement and (iii) cause all commodity contracts held or owned by (whether directly or indirectly), credited to the account of, or otherwise reflected as an asset on the balance sheet of, the Borrower and its Restricted Subsidiaries, to be carried or held in one or more Commodity Accounts in which the Administrative Agent has been granted a first-priority Lien and that is subject to a Control Agreement; *provided* that with respect to Deposit Accounts, Commodity Accounts, and Securities Accounts maintained by the Borrower and the Guarantors as of the Effective Date, the Borrower and the Guarantors shall have until the date that is sixty (60) days after the Effective Date (as such date may be extended by the Administrative Agent in its sole discretion) to deliver Control Agreements covering such accounts (such date, the "<u>Control Agreement Delivery Date</u>"). In no event shall the Borrower or any Restricted Subsidiary be required to obtain a Control Agreement on any Excluded Account.

**Section 8.17 <u>Marketing Activities</u>**. The Borrower will not, and will not permit any of its Restricted Subsidiaries to, engage in marketing activities for any Hydrocarbons or enter into any contracts related thereto other than (a) contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from their Oil and Gas Properties during the period of such contract and (b) contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from Oil and Gas Properties of third parties during the period of such contract associated with the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries that the Borrower or one of its Restricted Subsidiaries has the right or obligation to market pursuant to joint operating agreements, unitization agreements or other similar contracts (or contracts executed in connection therewith) that are usual and customary in the oil and gas business.

**Section 8.18 <u>Sanctions</u>**. The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit directly (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any

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Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, except to the extent permissible for a Person required to comply with Sanctions, or (c) in any manner that would result in the violation of Sanctions, Anti-Corruption Laws, or Anti-Money Laundering Laws applicable to any party hereto.

**Section 8.19 <u>Unrestricted Subsidiaries</u>.** The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) will cause the management, business and affairs of each of the Borrower and its Restricted Subsidiaries to be conducted in such a manner (including by keeping separate books of account, furnishing separate financial statements of the Unrestricted Subsidiaries to creditors and potential creditors thereof and by not permitting Properties of the Borrower and its Restricted Subsidiaries to be commingled) so that each Unrestricted Subsidiary that is a corporation will be treated as a corporate entity separate and distinct from the Borrower and any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) will not, and will not permit any of the Restricted Subsidiaries to, incur, assume, guarantee or be or become liable for any Debt of any of the Unrestricted Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) will not permit any Unrestricted Subsidiary to hold any Equity Interest in, or any Debt of, the Borrower or any Restricted Subsidiary.

**Section 8.20 <u>Minimum Hedging</u>.** On the last day of each fiscal quarter (each, a "<u>Minimum Hedging Requirement Date</u>"), the Borrower shall have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) entered into Swap Agreements (i) in the form of (x) swaps, (y) two-way collars and/or (z) costless collars with only one floor, (ii) with one or more Approved Counterparties, (iii) hedging minimum notional volumes of (A) if on any Minimum Hedging Requirement Date the Consolidated Net Leverage Ratio on such Minimum Hedging Requirement Date is greater than or equal to 1.50 to 1.00 (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) for the Rolling Period most recently ended for which financial statements have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b),</u> as applicable), (1) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of crude oil and natural gas, each calculated separately and (2) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of natural gas, in each case from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including such Minimum Hedging Requirement Date to and including the 24th full calendar month following such Minimum Hedging Requirement Date; (B) if on any Minimum Hedging Requirement Date the Consolidated Net Leverage Ratio on such Minimum Hedging Requirement Date is greater than or equal to 1.00 to 1.00 but less than 1.50 to 1.00 (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) for the Rolling Period most recently ended for which financial statements have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b),</u> as applicable), (1) (x) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of crude oil and natural gas, each calculated

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separately and (y) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of natural gas, in each case, from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including the first full calendar month following such Minimum Hedging Requirement Date to and including the 12<sup>th</sup> full calendar month following such Minimum Hedging Requirement Date; and (2) (x) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 25% of the reasonably projected production of crude oil and natural gas, each calculated separately and (y) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 25% of the reasonably projected production of natural gas, in each case, from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including the 13<sup>th</sup> full calendar month following such Minimum Hedging Requirement Date to and including the 24<sup>th</sup> full calendar month following such Minimum Hedging Requirement Date; or (C) if on any Minimum Hedging Requirement Date the Consolidated Net Leverage Ratio on such Minimum Hedging Requirement Date is less than 1.00 to 1.00 (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) for the Rolling Period most recently ended for which financial statements have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b),</u> as applicable), (1) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of crude oil and natural gas, each calculated separately and (2) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of natural gas, in each case, from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including such Minimum Hedging Requirement Date to and including the 12th full calendar month following such Minimum Hedging Requirement Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) provided evidence to the Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent, that the Borrower is in compliance with each of the requirements of <u>clauses (i)</u>, <u>(ii)</u> and <u>(iii)</u> of <u>Section</u> <u>8.20(a)</u>.

**Section 8.21 <u>Depositary Arrangements</u>.** Each Credit Party shall, and shall cause each of its Subsidiaries to, maintain Capital One, National Association as its primary depositary bank in the United States, including for operating, administrative, cash management and collection activity and for all primary deposit accounts and traditional bank accounts. Notwithstanding the foregoing, in no event shall the Borrower or any Restricted Subsidiary be required to maintain its Excluded Accounts (other than of the type described in clause (a) of the definition thereof) with Capital One, National Association.

**Section 8.22 <u>Reserved</u>.**

**Section 8.23 <u>More Favorable Terms</u>**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at any time, any documentation governing the Second Lien Note Documents includes any representation, warranty, covenant (including financial covenants) or event of default or other term (but excluding "Applicable Margin") that is more restrictive as to the Parent, the General Partner, the Borrower or any Restricted Subsidiary than the terms of this Agreement and the other Loan Documents (each, a "More Restrictive Term"), then (i) other than with respect to any More Restrictive Terms in the Second Lien Note Documents in existence on the Effective Date, on or prior to the third Business Day following the effectiveness of any such More Restrictive Term, as applicable, the Borrower shall notify the Administrative Agent thereof, and (ii) whether or not the Borrower provides such notice, the terms of this Agreement shall, without any further action on the part of the Borrower, the Administrative Agent or any Lender, be deemed to be amended automatically to include each More Restrictive Term in this Agreement, mutatis mutandis effective as of the date when such More Restrictive Term became effective under the Second Lien Note Documents. The Parent, the General Partner and the Borrower shall, and shall cause each Restricted Subsidiary to, promptly execute and deliver, each at its sole expense, an amendment to this Agreement and/or any Loan Document in form and substance reasonably satisfactory to the Administrative Agent evidencing the amendment of this Agreement and/or such other Loan Document to include such More Restrictive Terms in this Agreement; provided that the execution and delivery of such amendment shall not be a precondition to the effectiveness of such amendment as provided for this Section 8.23(a), but shall merely be for the convenience of the parties hereto. In addition, the Parent, the General Partner and the Borrower shall, and shall cause each Restricted Subsidiary to, promptly execute and deliver, each at its sole expense, an amendment to this Agreement in form and substance reasonably satisfactory to the Administrative Agent evidencing the amendment of this Agreement to include any changes to the terms of this Agreement to correct or address any incorrect section references, descriptions of documentation, use of defined terms and other similar matters between this Agreement and the terms of the Second Lien Note Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time after this Agreement or any Loan Document is amended pursuant to <u>Section</u> <u>8.23(a)</u> to include any More Restrictive Term contained in the Second Lien Note Documents (each, an "<u>Incorporated Provision</u>"), such Incorporated Provision ceases to be in effect under, or is deleted from, the Second Lien Note Documents, or is amended or modified for the purposes of the Second Lien Note Documents, so as to become less restrictive with respect to the Parent, the General Partner, the Borrower or its Subsidiaries, then (i) on or prior to the third Business Day following the effectiveness of any such cessation, deletion, amendment or modification, the Borrower shall notify the Administrative Agent thereof, and (ii) whether or not the Borrower provides such notice, so long as no Default or Event of Default in respect of such Incorporated Provision shall be in existence, the terms of this Agreement shall, without any further action on the part of the Borrower, the Administrative Agent or any Lender, be deemed to be amended automatically to delete such Incorporated Provision or incorporate the same amendments or modifications to such Incorporated Provision, as applicable, *mutatis mutandis* effective as of the date when such Incorporated Provision ceased to be in effect under, or was deleted from, or was amended or modified in the Second Lien Note Documents. Upon the request of the Borrower, the Majority Lenders will execute and deliver an amendment to this Agreement to delete or similarly amend or modify, as the case may be, such Incorporated Provision as in effect in this Agreement. Notwithstanding the foregoing, no amendment to this Agreement pursuant to this <u>Section</u> <u>8.23(b)</u> as the result of any Incorporated Provision ceasing to be in effect or being deleted, amended or otherwise modified shall cause any covenant or Event of Default in this Agreement to

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be less restrictive as to the Parent, the General Partner, the Borrower or any Subsidiary than such covenant or Event of Default as contained in this Agreement as in effect on the Effective Date, and as amended, supplemented or otherwise modified thereafter (other than as the result of the application of <u>Section</u> <u>8.23(a)</u>).

**ARTICLE IX** 

**<u>NEGATIVE COVENANTS</u>**

On and after the Effective Date, until the Release Date, the Borrower (and in the case of each of <u>Sections 9.07</u>, <u>9.16</u>, <u>9.17</u>, <u>9.18</u> and <u>9.19</u>, each of the Parent and the General Partner), for itself and for each of its Restricted Subsidiaries, covenants and agrees with the Lenders that:

**Section 9.01 <u>Financial Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Net Leverage Ratio</u>. The Borrower will not, as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date) permit the Consolidated Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Current Ratio</u>. The Borrower will not permit the Current Ratio as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date) to be less than 1.0 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right to Cure</u>. In the event the Borrower fails to comply with the requirements of <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u> as of the last day of any fiscal quarter of the Borrower, then during the period from and including the first day after the last day of such fiscal quarter through and including the 10th Business Day after the date the compliance certificate for such fiscal quarter is required to be delivered pursuant to <u>Section</u> <u>8.01(c)</u> (such period, the "<u>Cure Period</u>"), the Borrower shall be permitted to cure such failure to comply by requesting that the Consolidated Net Leverage Ratio and/or the Current Ratio be recalculated by increasing EBITDAX and/or the consolidated current assets for such fiscal quarter by an amount up to the cash proceeds received by the Borrower from a Specified Equity Contribution during the Cure Period (such amount, a "<u>Cure Amount</u>"); *provided* that (i) the Borrower delivers written notice to the Administrative Agent on or prior to the date of a timely delivered certificate required by <u>Section</u> <u>8.01(c)</u> that it has elected to cure the failure to comply and clearly setting forth such Specified Equity Contribution in the computation required by <u>clause</u> <u>(ii)</u> of such <u>Section</u> <u>8.01(c)</u>; (ii) the amount of the Cure Amount added to EBITDAX and/or the consolidated current assets shall not be greater than the amount required to cause the Borrower to be in compliance with <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u>, as applicable; (iii) any such increase pursuant to this <u>Section</u> <u>9.01(c)</u> to EBITDAX and/or the consolidated current assets for any fiscal quarter shall be applied solely for the purpose of determining compliance or non-compliance with <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u> as of the last day of any Rolling Period that includes such fiscal quarter and not for any other purpose under any Loan Document (including any determination of *pro forma* compliance with the Consolidated Net Leverage Ratio for the purposes of making any Restricted Payment or Investment or any other purpose); (iv) (A) there shall be no more than two fiscal quarters during any period of four

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consecutive fiscal quarters for which the Borrower cures any Consolidated Net Leverage Ratio or Current Ratio default by an equity cure and (B) there shall be no more than four fiscal quarters prior to the Maturity Date for which the Borrower cures any Consolidated Net Leverage Ratio or Current Ratio default by an equity cure; (v) such increase in EBITDAX and/or consolidated current assets shall be taken into account in calculating the Consolidated Net Leverage Ratio or Current Ratio for any Rolling Period that includes the last fiscal quarter of the four quarter period with respect to which such cure right was exercised; (vi) Total Net Debt as of the last day of any fiscal quarter for which the foregoing cure right is exercised shall not be deemed reduced by the amount of any Specified Equity Contribution made with respect to such fiscal quarter (even if the proceeds of such Specified Equity Contribution are actually used to repay Debt); (vii) for any period during which EBITDAX is calculated on an annualized basis in accordance with the definition thereof, any Cure Amount shall be taken into account after multiplying EBITDAX by the applicable annualization factor for such fiscal quarter (i.e. the Cure Amount shall not be annualized); and (viii) the same dollars of the Cure Amount may not be applied to both increase EBITDAX and increase consolidated current assets if the Borrower elects to cure the failure to comply with both <u>Section</u> <u>9.01(a)</u> and <u>Section</u> <u>9.01(b)</u> in the same fiscal quarter (i.e. separate Cure Amounts shall be required for each such cure). If after giving effect to the foregoing recalculation, the Borrower would then be in compliance with <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u>, as applicable, the Borrower shall be deemed to have satisfied the requirements of <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u>, as applicable, as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of such covenant that had occurred shall be deemed cured for the purpose of this Agreement and the other Loan Documents. Neither the Administrative Agent nor any Lender shall exercise the right to accelerate the Loans or terminate the Commitments and none of Administrative Agent, any Lender or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to <u>Section</u> <u>10.02</u>, the other Loan Documents or applicable law prior to the end of the applicable Cure Period solely on the basis of an Event of Default having occurred and continuing under <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u> (except to the extent that the Borrower has confirmed in writing that it does not intend to provide a Specified Equity Contribution); *provided* that no Lender or Issuing Bank shall be required to make any extension of credit hereunder during the Cure Period unless the Borrower shall have received the Cure Amount.

**Section 9.02 <u>Debt</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Loans and other Obligations arising under the Loan Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt of the Borrower and its Restricted Subsidiaries existing on the Signing Date that is reflected on <u>Schedule</u> <u>9.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt under Capital Leases not to exceed (i) prior to the Discharge of Second Lien Obligations, $2,500,000 and (ii) following the Discharge of Second Lien Obligations, the greater of (A) $5,000,000 and (B) 2.0% of Consolidated Total Assets (measured as of the date of incurrence of such Debt based upon the financial statements most recently available prior to such date), in each case, in the aggregate at any one time outstanding;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Debt associated with bonds or surety obligations required by Governmental Requirements incurred in connection with the operation of the Oil and Gas Properties and not in connection with money borrowed, or Debt associated with guarantees or surety obligations delivered by the Borrower to any provider of such bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) intercompany Debt between the Borrower and any Restricted Subsidiary or between Restricted Subsidiaries to the extent permitted by <u>Section</u> <u>9.05(d)</u>; *provided* that such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Borrower or one of its Wholly-Owned Subsidiaries that is a Restricted Subsidiary, and, *provided further*, that any such Debt owed by either the Borrower or a Guarantor shall be subordinated to the Obligations on the terms set forth in the Guarantee and Collateral Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) endorsements of negotiable instruments for collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Debt constituting a guarantee by any Credit Party of any Debt incurred by another Credit Party so long as the incurrence of such Debt by such other Credit Party is otherwise permitted by this <u>Section</u> <u>9.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) other Debt not otherwise permitted pursuant to this <u>Section</u> <u>9.02</u> not to exceed (i) prior to the Discharge of Second Lien Obligations, $10,000,000 and (ii) following the Discharge of Second Lien Obligations, the greater of (i) $10,000,000 and (ii) 5% of Consolidated Total Assets (measured as of the date of incurrence of such Debt based upon the financial statements most recently available prior to such date), in each case, in the aggregate at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (i) unsecured senior notes, unsecured subordinated notes or unsecured senior subordinated notes ("<u>Senior Notes</u>") of the Borrower, and any guarantees thereof, so long as (x) after giving effect to the issuance or incurrence of such Debt, the application of the proceeds thereof, and any automatic reduction of the Borrowing Base pursuant to <u>Section</u> <u>2.07(f)</u> on account thereof, (A) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) does not exceed 3.50 to 1.00, (B) no Default or Event of Default shall exist and (C) Unused Availability shall be equal to or greater than 10% of the Loan Limit; and (y) on the same day as the issuance or incurrence of such Senior Notes, the Borrowing Base shall be adjusted to the extent required by <u>Section</u> <u>2.07(f)</u> and prepayment is made to the extent required by <u>Section</u> <u>3.04(c)(iii)</u> and no Borrowing Base Deficiency would then exist after giving effect to such adjustment and prepayment; and (ii) Permitted Refinancing Debt in respect of any Senior Notes issued or incurred in reliance on this <u>Section</u> <u>9.02(i)</u>; *provided* that in the case of the Debt described in each of the foregoing clauses (i) and (ii): (A) such Debt (1) does not have any scheduled principal amortization, a scheduled maturity date or a date of mandatory Redemption in full, in each case, sooner than the date which is 180 days after the Maturity Date and (2) such Debt does not have any mandatory Redemption, tender or sinking fund provisions (other than (a) a customary change of control tender offer provision and (b) a customary asset sale tender offer provision to the extent any amounts required to be Redeemed are permitted to be applied first to prepayment or repayment of the Obligations), (B) such Debt and any guarantees thereof are on terms, taken as a whole, at least as favorable to the Borrower and its Restricted Subsidiaries as market terms for issuers of similar size and credit quality given the then prevailing market conditions as reasonably

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determined by the Borrower, (C) such Debt (or the documents governing such Debt) shall not contain (1) any financial maintenance covenants or (2) any covenants or events of default, taken as a whole, that are more restrictive or onerous with respect to the Borrower or any of its Restricted Subsidiaries than the covenants and events of default herein, (D) none of the Parent, the General Partner, or any Subsidiary shall be required to guarantee such Debt unless the Parent, the General Partner, or such Subsidiary has guaranteed the Obligations pursuant to the Guarantee and Collateral Agreement; (E) the Borrower shall have complied with <u>Section</u> <u>8.01(o)</u>; (F) the Borrowing Base then in effect shall be adjusted to the extent required by <u>Section</u> <u>2.07(f)</u> and the Borrower shall make any prepayment required by <u>Section</u> <u>3.04(c)(iii)</u> and (G) the proceeds of the initial issuance or incurrence of Senior Notes pursuant to this <u>Section</u> <u>9.02(i)</u> shall be used to cause the Discharge of Second Lien Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Second Lien Notes issued by the Borrower pursuant to the Second Lien Note Documents (and any guarantees thereof) and outstanding on the Effective Date in an aggregate principal amount not to exceed (i) $75,000,000 <u>minus</u> (ii) the aggregate amount of all prepayments and repayments of principal of Second Lien Notes made since the Effective Date; *provided* that such Debt does not have a scheduled maturity date or a date of mandatory Redemption in full, in each case, sooner than the date which is 180 days after the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Debt associated with worker's compensation claims, bonds or surety obligations required by Governmental Requirements or by third parties in the ordinary course of business in connection with the operation of, or provision for the abandonment and remediation of, the Oil and Gas Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Debt of any Credit Party consisting of obligations to pay insurance premiums; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Debt in an aggregate not to exceed $1,000,000 at any time outstanding representing deferred compensation (whether such deferred compensation is to be cash or stock-based compensation) of employees or directors of the Borrower or its Affiliates incurred in the ordinary course of business.

**Section 9.03 <u>Liens</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens securing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Excepted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens securing Capital Leases permitted by <u>Section</u> <u>9.02(c)</u> but only on the Property under lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens securing the Second Lien Obligations; *provided* that (i) such Liens are subordinate to the Liens securing the Obligations pursuant to the Second Lien Intercreditor Agreement and (ii) both before and immediately after giving effect to the incurrence of any such Lien, the Borrower is in compliance with <u>Section</u> <u>8.14(c)</u> and the Second Lien Intercreditor Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liens on Property not constituting Collateral and not otherwise permitted by the foregoing clauses of this <u>Section</u> <u>9.03</u>; *provided* that the aggregate principal or face amount of all Debt secured under this <u>Section</u> <u>9.03(e)</u> shall not exceed (i) prior to the Discharge of Second Lien Obligations, $10,000,000 and (ii) following the Discharge of Second Lien Obligations, the greater of (A) $10,000,000 and (B) 5.0% of Consolidated Total Assets (measured as of the date of attachment of such Lien based upon the financial statements most recently available prior to such date) at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Liens encumbering insurance policies and the proceeds thereof securing the financing of premiums with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens on cash earnest money deposits or escrowed amounts made in connection with a binding purchase agreement to acquire Oil and Gas Properties, in each case to the extent such acquisition is permitted by this Agreement; *provided* that the aggregate of cash secured by Liens pursuant to this <u>Section</u> <u>9.03(g)</u> shall not exceed $10,000,000 (or $15,000,000, as approved in writing by the Administrative Agent in its sole discretion) at any time.

Notwithstanding the foregoing, none of the Liens permitted pursuant to this <u>Section</u> <u>9.03</u> (other than Excepted Liens and Liens securing the Obligations and Liens securing the Second Lien Obligations) may at any time attach to any Borrowing Base Properties.

**Section 9.04** <u>**Dividends and Distributions and Payments in Respect of Second Lien Notes and Permitted Senior Notes; Amendments to Second Lien Note Documents and Senior Note Documents**</u>**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Dividends and Distributions</u>. The Borrower will not, and the Borrower will not permit any of its Restricted Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders, or make any distribution of its Property to its Equity Interest holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its Equity Interests (other than Disqualified Capital Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Restricted Subsidiaries may declare and pay cash dividends ratably with respect to their Equity Interests and pay management, advisory or similar fees to Guarantors or the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) so long as no Default, Event of Default or Borrowing Base Deficiency is continuing or would result therefrom, the Borrower may make Restricted Payments pursuant to and in accordance with, and may repurchase its (or such direct or indirect parent entity's) Equity Interests issued to former employees under, stock option plans or other benefit plans for management or employees of the Borrower and its Restricted Subsidiaries; *provided* that the aggregate amount of payments made pursuant to this clause (iii) do not exceed $1,000,000 in the aggregate in any fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) each of the Borrower may make Restricted Payments in cash so long as both before and immediately after giving effect to any such Restricted Payment, (A) no Default,

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Event of Default, or Borrowing Base Deficiency exists, (B) Unused Availability is at least 10% of the Loan Limit and (C) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) is less than or equal to 3.00 to 1.00; provided that, if the Borrower may elect to measure the foregoing tests at the time it or the Parent declares such Restricted Payment so long as such Restricted Payment is paid within 30 days after the date of declaration thereof and such Restricted Payment would have been permitted to be paid if such distribution had been paid as of such date of declaration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) so long as no Event of Default under <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u>, <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u> is continuing or would result therefrom, the Borrower may make Permitted Tax Distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Borrower may make distributions to the Parent to pay Public Company Compliance costs, operating expenses incurred in the ordinary course of business and other corporate overhead costs and expenses (including, without limitation, administrative, legal, accounting, and similar expenses payable to third parties), which are reasonable and customary and incurred in the ordinary course of business, plus any reasonable and customary indemnification claims made by directors or officers of the Parent, in each case to the extent such expenses and costs are directly attributable to the ownership or operations of the Parent, the Borrower and their respective Subsidiaries; *provided* that the aggregate amount of payments made pursuant to this clause (vi) do not exceed $3,000,000 in the aggregate in any fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) redemptions in whole or in part of any of its Equity Interests for Class A common stock of the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) so long as no Default, Event of Default or Borrowing Base Deficiency is continuing or would result therefrom, Restricted Payments to repurchase Equity Interests from directors or employees of the Borrower or its Affiliates (or from the estate, family members, spouse or former spouse of directors or employees of the Borrower or its Affiliates); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) so long as no Default, Event of Default or Borrowing Base Deficiency is continuing or would result therefrom, cash payments in lieu of the issuance of fractional shares of Equity Interests in connection with any dividend, option, split, warrant or combination thereof, or any transaction permitted hereunder;

*provided* that, in each case of the preceding clauses (i) through (viii), prior to the Discharge of Second Lien Obligations, such Restricted Payments shall be permitted only to the extent such Restricted Payments are also permitted under the Second Lien Note Documents as in effect on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Redemption of Second Lien Notes and Permitted Senior Notes; Amendment of Terms of Second Lien Note Documents and Senior Note Documents</u>. The Borrower will not, and will not permit any Restricted Subsidiary to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) call, make or offer to make any optional, voluntary or mandatory Redemption of, or otherwise optionally, voluntarily or mandatorily Redeem (whether in whole or in part), any Second Lien Notes or any Permitted Senior Notes, *provided*, that the Borrower may voluntarily or mandatorily Redeem Second Lien Notes or Permitted Senior Notes (A) with cash proceeds from any incurrence of Permitted Senior Notes so long as such Redemption occurs substantially contemporaneously with the receipt of such proceeds, (B) with cash proceeds of the issuance of Equity Interests (other than Disqualified Capital Stock) in the Parent, so long as, in the case of this clause (B), no Event of Default or Borrowing Base Deficiency has occurred and is continuing both before and immediately after giving effect to such Redemption and such Redemption occurs within 10 days following, the receipt of such proceeds, and (C) with cash on hand so long as, both before and immediately after giving effect to such Redemption, (w) no Default, Event of Default or Borrowing Base Deficiency exists, (x) Unused Availability is at least 10% of the Loan Limit and (y) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) is less than or equal to 3.00 to 1.00; *provided* that, in each case of the preceding clauses (A) through (C), prior to the Discharge of Second Lien Obligations, Redemptions of Permitted Senior Notes or Permitted Refinancing Debt in respect thereof shall be permitted only to the extent such Redemptions are also permitted under the Second Lien Note Documents as in effect on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of any Permitted Senior Notes, Senior Note Documents, Second Lien Notes or any Second Lien Note Documents, if the effect thereof would be to (A) shorten the maturity or average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of interest thereon, (B) increase the amount of any payment of principal thereof (including any principal amortization payment), (C) in the case of any Permitted Senior Notes, such action requires the payment of a consent fee (howsoever described); provided that the foregoing shall not prohibit the execution of supplemental indentures associated with the issuance of additional Permitted Senior Notes to the extent permitted by <u>Section</u> <u>9.02(i)</u> or the execution of supplemental indentures to add guarantors if required by the terms of the Senior Note Documents, provided such Person complies with <u>Section</u> <u>8.14</u>, (D) violate the Second Lien Intercreditor Agreement, (E) cause any Permitted Senior Notes to no longer be permitted under <u>Section</u> <u>9.02(i)</u>, (F) cause any Second Lien Notes to no longer be permitted under <u>Section</u> <u>9.02(j)</u>, or (G) with respect to any Permitted Senior Notes that is subordinated to the Obligations or any other Debt, designate any such Debt (other than obligations of the Borrower and the Restricted Subsidiaries pursuant to the Loan Documents) as "Specified Senior Indebtedness" or "Specified Guarantor Senior Indebtedness" or give any such other Debt any other similar designation for the purposes of any Senior Note Documents.

**Section 9.05 <u>Investments, Loans and Advances</u>.** The Borrower will not, and will not permit any Restricted Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments as of the Signing Date which are disclosed to the Lenders in <u>Schedule</u> <u>9.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments constituting Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments (i) made by the Borrower in or to any Person that, prior to such Investment, is a Subsidiary Guarantor, (ii) made by any Subsidiary Guarantor in or to the Borrower or any other Subsidiary Guarantor and (iii) made by any Restricted Subsidiary in or to the Borrower or the Subsidiary Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to the limits in <u>Section</u> <u>9.06</u>, Investments of the type described in <u>clause</u> <u>(c)</u> of the definition thereof in direct ownership interests in additional Oil and Gas Properties located within the geographic boundaries of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this <u>Section</u> <u>9.05</u> and accounts receivable owing to the Borrower or any Restricted Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Borrower or any of its Restricted Subsidiaries; provided that the Borrower shall give the Administrative Agent prompt written notice in the event that the aggregate amount of all Investments held at any one time under this <u>Section</u> <u>9.05(f)</u> exceeds $5,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) loans or advances to employees, officers or directors of the Borrower or any of its Restricted Subsidiaries, in each case only as permitted by applicable law, including Section 402 of the Sarbanes Oxley Act of 2002, but in any event not to exceed $1,000,000 in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) guarantees of Debt permitted by <u>Section</u> <u>9.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments consisting of non-cash consideration received in connection with Dispositions permitted pursuant to <u>Section</u> <u>9.09</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) After the Discharge of Second Lien Obligations, other Investments; *provided* that both before and immediately after giving effect to any such Investment: (i) no Default, Event of Default or Borrowing Base Deficiency exists, (ii) Unused Availability is at least 10% of the Loan Limit and (iii) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) is less than or equal to 3.00 to 1.00; *provided further* that Investments pursuant to this <u>clause (j)</u> that result in the acquisition of all or substantially all of the business or line of business (whether by the acquisition of Equity Interests, assets or any combination thereof) of any other Person, in each case, satisfy the following: (x) such acquisition is not hostile and (y) in the case of any acquisition of a Restricted Subsidiary, such Restricted Subsidiary complies with <u>Sections</u> <u>8.13</u> and <u>9.06</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) to the extent constituting Investments, cash earnest money deposits or escrowed amounts made in connection with a binding purchase agreement to acquire Oil and Gas Properties,

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in each case to the extent such acquisition is permitted by this Agreement and to the extent that such cash earnest money deposits or escrowed amounts are permitted pursuant to <u>Section</u> <u>9.03(g)</u>;

*provided* that, in each case of the preceding clauses (a) through (l), prior to the Discharge of Second Lien Obligations, such Investments shall be permitted only to the extent such Investments are also permitted under the Second Lien Note Documents as in effect on the Effective Date.

**Section 9.06 <u>Nature of Business; No Foreign Subsidiaries or International Operations</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, allow any material change to be made in the character of its business as owners of minerals interests and mineral royalty interests and, subject to the last sentence of this <u>Section</u> <u>9.06</u>, other non-operating interests in upstream Oil and Gas Properties. The Borrower will not, and will not permit any Restricted Subsidiary to, acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of the United States and will not create or acquire any Subsidiaries that are Foreign Subsidiaries. The Borrower shall at all times remain organized under the laws of the United States of America or any State thereof or the District of Columbia. Notwithstanding the foregoing or anything to the contrary contained herein, the Borrower will not permit, at any time, the aggregate PV-9 attributable to the Borrower's and the Restricted Subsidiaries' ownership interests in: (a) mineral interests and mineral royalty interests to be less than ninety-two and one half percent (92.5%); or (b) non-operating interests in upstream Oil and Gas Properties to be greater than seven and one half percent (7.5%), in the case of each of the foregoing clauses (a) and (b), of the total value of the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries (defined, solely for purpose of this <u>Section</u> <u>9.06</u>, as the sum of the PV-9 attributable to the Proved Developed Producing Reserves of the Borrower and the Restricted Subsidiaries <u>plus</u> the book value of Oil and Gas Properties of the Borrower and the Restricted Subsidiaries that do not have PV-9 attributable to them). The Borrower shall not, and shall not permit any Restricted Subsidiary to, own any operating interests in, or be an operator of, any Oil and Gas Properties. So long as the Equity Interests issued by the Borrower are not pledged as Collateral for the benefit of the Administrative Agent and the other Secured Parties pursuant to a Security Instrument, the Borrower shall not directly own any Oil and Gas Properties.

**Section 9.07 <u>Proceeds of Loans</u>**. The Borrower will not permit the proceeds of the Loans to be used for any purpose other than those permitted by <u>Section</u> <u>7.19</u>. None of the Parent, the General Partner, the Borrower or any Person acting on behalf of the Parent, the General Partner or the Borrower has taken or will take any action which might cause any of the Loan Documents to violate Regulations T, U or X or any other regulation of the Board or to violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect. If requested by the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form U-1 or such other form referred to in Regulation U, Regulation T or Regulation X of the Board, as the case may be.

**Section 9.08 <u>Mergers, Etc</u><u>.</u>** The Borrower will not, and will not permit any Restricted Subsidiary to, merge into or with, divide or consolidate with any other Person, or permit any other Person to merge into, divide or consolidate with it, or sell, transfer, lease or otherwise Dispose of

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(whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (whether now owned or hereafter acquired) (any such transaction, a "<u>consolidation</u>"), or liquidate or dissolve; *provided* that (a) any Restricted Subsidiary may participate in a consolidation with the Borrower or any Subsidiary Guarantor (*provided* that the Borrower shall be the continuing or surviving entity in any such transaction involving the Borrower, and a Subsidiary Guarantor shall be the continuing or surviving entity of any such transaction not involving the Borrower), (b) any Subsidiary Guarantor may participate in a consolidation with another Subsidiary Guarantor, (c) any Restricted Subsidiary may liquidate or dissolve so long as its assets (if any) are distributed to the Borrower or a Subsidiary Guarantor prior to such liquidation or dissolution, (d) a Restricted Subsidiary may merge or consolidate with another Person in connection with an Investment permitted under <u>Section</u> <u>9.05</u>, so long as such Restricted Subsidiary is the continuing or surviving entity and (e) any Person may merge into the Borrower or any Subsidiary Guarantor (provided that the Borrower shall be the continuing or surviving entity of any such transaction involving the Borrower, and the Subsidiary Guarantor shall be the continuing or surviving entity in any such transaction involving a Subsidiary Guarantor (but not the Borrower)) in connection with any Investment permitted hereunder.

**Section 9.09 <u>Sale of Properties and Termination of Swap Agreements</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, sell, assign, farm-out, convey, transfer or otherwise Dispose of any Property or to Liquidate any Swap Agreement except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of Hydrocarbons and the lease of Oil and Gas Properties in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) farmouts of undeveloped acreage and assignments in connection with such farmouts or the abandonment, farmout, trade, exchange, lease, sublease or other Disposition in the ordinary course of business of Oil and Gas Properties not containing proved reserves and which are not included in the most recently delivered Reserve Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale or transfer of equipment that is obsolete, worn-out or no longer necessary for the business of the Borrower or such Restricted Subsidiary or is replaced by equipment of at least comparable value and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Disposition of any Oil and Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties and the Liquidation of any Swap Agreement in respect of commodities; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) other than in the case of any Liquidation of any Swap Agreement in respect of commodities pursuant to <u>Section</u> <u>9.14(a)(ii)</u>, no Event of Default or Borrowing Base Deficiency exists or results from such Disposition of Property or the Liquidation of any Swap Agreement in respect of commodities (unless the net cash proceeds of such Dispositions, together with Unrestricted Cash, are concurrently applied to eliminate any Borrowing Base Deficiency that exists or results therefrom);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) in the case of any Liquidation of any Swap Agreement in respect of commodities, such Swap Agreement shall be "in the money" to the Borrower or any of the Restricted Subsidiaries, as applicable, and 100% of the consideration received in respect

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of such Liquidation shall be cash, and (B) in the case of any Disposition of Oil and Gas Properties or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties, not less than 75% of the consideration received in respect of such sale or other disposition is cash; *provided* that, with respect to any Disposition, notwithstanding the foregoing requirement of this clause (B) (but, for the avoidance of doubt, subject to the other terms and conditions of this <u>Section</u> <u>9.09(d)</u>), the Borrower and/or its Restricted Subsidiaries may exchange Hydrocarbon Interests for other Hydrocarbon Interests with the same or better reserve classification, reserve characteristics, reserve lives and decline profiles so long as (1) the aggregate Borrowing Base value, as determined by the Administrative Agent, of all proved Oil and Gas Properties of the Borrower and the Restricted Subsidiaries exchanged for such other proved Oil and Gas Properties during any period between two successive Scheduled Redeterminations does not exceed two percent (2%) of the Borrowing Base then in effect, (2) to the extent that a Borrowing Base Deficiency could result from an adjustment to the Borrowing Base resulting from such Disposition, after the consummation of such Disposition(s), the Borrower shall have received net cash proceeds, or shall have cash on hand, sufficient to eliminate any such potential Borrowing Base Deficiency pursuant to <u>Section</u> <u>3.04(c)(iii)</u>, and (3) substantially contemporaneously with the closing of any such exchange, the Borrower or the applicable Restricted Subsidiary shall provide title information reasonably requested by the Administrative Agent with respect to, and grant a first-priority Lien (provided that Excepted Liens of the type described in clauses (a), (b), (c), (d), and (f) of the definition thereof may exist, but subject to the provisos at the end of such definition) on, any proved Oil and Gas Properties acquired in such exchange pursuant to Security Instruments in form and substance reasonably satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the consideration received in respect of such Disposition of any Borrowing Base Property or Liquidation of any Swap Agreement in respect of commodities shall be equal to or greater than the fair market value of the Borrowing Base Property, interest therein or Restricted Subsidiary subject of such Disposition, or Swap Agreement subject of such Liquidation (as reasonably determined by the board of directors (or equivalent body) of the Borrower and, if requested by the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying to that effect);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Borrowing Base shall be reduced, effective immediately upon such Disposition, by an amount and to the extent required by <u>Section</u> <u>2.07(e)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if any such Disposition is of a Restricted Subsidiary owning Oil and Gas Properties, such Disposition shall include all the Equity Interests of such Restricted Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) licenses of intellectual property, none of which, in the aggregate, materially impair the operation of the business of the Borrower or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Disposition of Properties among the Credit Parties (including pursuant to a division or plan of division under Delaware law); *provided* that (i) with respect to any transfers of

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Equity Interests in any Restricted Subsidiaries of the Borrower, the requirements of <u>Section</u> <u>8.13(a)</u> are satisfied (without giving effect to any grace period for compliance provided for therein) and (ii) with respect to any transfer of Proved Oil and Gas Properties, the transferee delivers mortgages or other Security Instruments in favor of the Administrative Agent concurrently with such transfer, to the extent necessary to satisfy the requirements of <u>Section</u> <u>8.13</u> (without giving effect to any grace period for compliance provided for therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Liquidation of Swap Agreements required by <u>Section</u> <u>9.14(b)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Disposition of cash and Cash Equivalents in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transfers of Property subject to a Casualty Event; *provided* that with respect to any Casualty Event involving a Borrowing Base Property, such transfer shall be considered a Disposition under <u>Section</u> <u>2.07(e)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispositions of the non-cash portion of consideration (other than any Oil and Gas Properties) received for any Disposition permitted by this <u>Section</u> <u>9.09</u>; provided that the consideration received in respect of such Disposition shall be cash or Cash Equivalents and for fair market value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Restricted Payments permitted by <u>Section</u> <u>9.04</u> and Investments permitted by <u>Section</u> <u>9.05</u>.

Notwithstanding anything to the contrary in this Agreement or any other Loan Document, the Borrower will not, and will not permit any Restricted Subsidiary, to sell, grant, issue or otherwise enter into any volumetric production payments, dollar-denominated production payment (or any other "VPP" financing), "drillcos" and other similar synthetic financings, or otherwise dispose of or sell Hydrocarbons in place that would require the Borrower or any of its Restricted Subsidiaries to deliver Hydrocarbons at some future time without then or thereafter receiving full prepayment therefor.

**Section 9.10 <u>Environmental Matters</u>**. Except as could not reasonably be expected to have a Material Adverse Effect: the Borrower will not, and will not permit any Restricted Subsidiary to, cause or permit any of its Property to be in violation of, or do anything or permit anything to be done that could reasonably be expected to subject any such Property to a Release or threatened Release of Hazardous Materials or exposure to any Hazardous Materials in violation of Environmental Law, or to any Remedial Work under any Environmental Laws.

**Section 9.11 <u>Transactions with Affiliates</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate unless such transactions are not prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm's length transaction with a Person not an Affiliate, other than (a) transactions by and among the Borrower and the Guarantors, (b) any Restricted Payment permitted by <u>Section</u> <u>9.04</u>, (c) Investments permitted under <u>Section</u> <u>9.05</u>, (d) the performance of employment, equity award, equity option or equity appreciation agreements, plans or other similar compensation or benefit plans or arrangements (including vacation plans, health and insurance plans, deferred compensation plans and retirement

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or savings plans) entered into by the Borrower or any Restricted Subsidiary in the ordinary course of its business with its employees, officers and directors, (e) fees and compensation to, and indemnity provided on behalf of, officers, directors, and employees of the Borrower (or any direct or indirect parent thereof) or any Restricted Subsidiary in their capacity as such, to the extent such fees and compensation are customary, (f) the payment of fees and expenses related to the Transactions and Public Company Compliance, and (g) issuances of Equity Interests of the Borrower to the extent otherwise permitted by this Agreement.

**Section 9.12 <u>ERISA Compliance</u>**. Except for actions that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, the Borrower will not, and will not permit any Subsidiary to, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Borrower, a Subsidiary or any ERISA Affiliate could be subjected to either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Borrower, a Subsidiary or any ERISA Affiliate is required to pay as contributions thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contribute to or assume an obligation to contribute to, or permit any ERISA Affiliate to contribute to or assume an obligation to contribute to (i) any employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law that may not be terminated by such entities in their sole discretion at any time without liability, or (ii) any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

**Section 9.13 <u>Negative Pledge Agreements; Dividend Restrictions</u>**. Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts (or which requires the consent of or notice to other Persons in connection therewith) (a) the granting, conveying, creation or imposition of any Lien on any of its Property in favor of the Administrative Agent and the Secured Parties, (b) any Subsidiary from paying dividends or making distributions in respect of its Equity Interests to the Borrower or any Guarantor, (c) paying any Debt owed to the Borrower or any other Restricted Subsidiary, (d) making loans or advances to, or other Investments in, the Borrower or any other Restricted Subsidiary, or (e) transferring any of its Property to the Borrower or any other Restricted Subsidiary, other than (i) this Agreement, the Security Instruments, and the Second Lien Note Documents, (ii) customary restrictions and conditions with respect to the sale or disposition of Property or Equity Interests permitted under <u>Section</u> <u>9.09</u> pending the consummation of such sale or disposition, (iii) customary prohibitions on assignment contained in software license agreements, (iv) agreements and understandings contained in joint venture agreements or other similar agreements entered into in the ordinary course of business in respect of the disposition or distribution of assets of such joint venture, (v) any restrictions or conditions set forth in any agreement in effect at any time any Person becomes a Restricted Subsidiary by an

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acquisition permitted by this Agreement (but not any modification or amendment expanding the scope of any such restriction or condition), *provided* that such agreement was not entered into in contemplation of such Person becoming a Restricted Subsidiary and the restriction or condition set forth in such agreement does not apply to the Borrower or any other Restricted Subsidiary, (vi) customary provisions restricting subletting or assignment of any lease governing a leasehold interest (other than any Oil and Gas Property) of the Borrower or any Restricted Subsidiary, (vii) any restrictions set forth in any agreements with respect to Capital Leases permitted hereunder to the extent such restrictions only apply to the Property securing such Debt, (viii) restrictions on cash and other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business, and (ix) restrictions that are imposed by any Governmental Requirement.

**Section 9.14 <u>Swap Agreements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower will not, and will not permit any Restricted Subsidiary to, enter into any Swap Agreements with any Person other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Swap Agreements in the form of (x) swaps, (y) two-way collars and/or (z) costless collars with only one floor, with an Approved Counterparty in respect of commodities (at market prices) entered into not for speculative purposes the notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is entered into, (A) for the 24-month period (and for each month during such period) from the date such Swap Agreement is entered into, 90% of the reasonably anticipated projected production (measured on an MMBtu basis with respect to natural gas and a Bbl basis with respect to crude oil, as applicable, and not, for the avoidance of doubt, on an Mcf or volumetric basis) from the Borrower and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) for each of crude oil and natural gas, calculated separately and (B) for the 36-month period (and for each month during such period) commencing with the 25th month following the date such Swap Agreement is entered into, 85% of the reasonably anticipated projected production (measured on an MMBtu basis with respect to natural gas and a Bbl basis with respect to crude oil, as applicable, and not, for the avoidance of doubt, on an Mcf or volumetric basis) from the Borrower and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) for each of crude oil and natural gas, calculated separately; *provided*, *however*, that such Swap Agreements shall not, in any case, have a tenor of greater than 60 months (the "<u>Ongoing Hedges</u>"). In addition to the Ongoing Hedges, in connection with a proposed or pending acquisition permitted hereunder (a "<u>Proposed Acquisition</u>"), the Credit Parties may also enter into Swap Agreements in respect of commodities with Approved Counterparties and not for speculative purposes the notional volumes for which do not exceed for each month during the period during which such Swap Agreement is in effect, 10% of the Borrower and the Restricted Subsidiaries' existing projected production from Proved Oil and Gas Properties (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) prior to the consummation of such Proposed Acquisition (such that the

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aggregate shall not be more than 100% of the reasonably anticipated projected production from the Credit Parties' Proved Oil and Gas Properties prior to the consummation of such Proposed Acquisition) for a period not exceeding 36 months from the date such Swap Agreement is entered into during the period between (x) the date on which such Credit Party signs a definitive acquisition agreement in connection with a Proposed Acquisition and (y) the earliest of (I) the date such Proposed Acquisition is consummated, (II) the date such Proposed Acquisition is terminated and (III) 90 days after such definitive acquisition agreement was executed (or such longer period as to which the Administrative Agent may agree in its sole discretion). If such Proposed Acquisition is terminated, all such Swap Agreements entered into with respect to a Proposed Acquisition must be terminated or unwound within 90 days following the date such Proposed Acquisition is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Swap Agreements entered into not for speculative purposes in respect of interest rates with an Approved Counterparty effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Restricted Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed, as of the date such Swap Agreement is entered into, 75% of the then outstanding principal amount of the Borrower's Debt for borrowed money which bears interest at a floating rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower will not, and will not permit any Restricted Subsidiary to, allow the aggregate notional volumes of all Swap Agreements in respect of commodities for any fiscal quarter (a "<u>Test Quarter</u>") (other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) to exceed 100% of actual production of crude oil and natural gas, as applicable, for such Test Quarter; *provided*, that, if the foregoing limit is exceeded, it shall not constitute a violation of this <u>Section</u> <u>9.14(b)</u> if the Borrower shall, (i) shall promptly, but in any event no later than three days after the end of such Test Quarter, notify the Administrative Agent of such excess and (ii) no later than thirty (30) days after the end of such Test Quarter, Liquidate existing Swap Agreements such that, at such date of Liquidation (the "<u>Swap Liquidation Date</u>"), after giving effect to any such Liquidation, hedged volumes for each calendar month succeeding such Test Quarter will comply with the requirements of <u>Section</u> <u>9.14(a)</u>, and for this purpose, <u>Section</u> <u>9.14(a)</u> shall be recalculated and tested as of the Swap Liquidation Date as if all outstanding Swap Agreements in respect of commodities (after giving effect to any such Liquidation) were being entered into on such Swap Liquidation Date (or provide the Administrative Agent other evidence satisfactory to it in its reasonable discretion demonstrating such compliance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Borrower or any Restricted Subsidiary to post collateral, credit support (including in the form of letters of credit) or margin to secure their obligations under such Swap Agreement or to cover market exposures (other than pursuant to the Security Instruments).

**Section 9.15 <u>Designation and Conversion of Restricted and Unrestricted Subsidiaries</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless designated as an Unrestricted Subsidiary on <u>Schedule</u> <u>7.13</u> as of the Signing Date or thereafter, assuming compliance with <u>Section</u> <u>9.15(b)</u>, any Person that becomes a

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Subsidiary of the Borrower or any of its Restricted Subsidiaries shall be classified as a Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower may designate, by written notification thereof to the Administrative Agent, any Restricted Subsidiary, including a newly formed or newly acquired Subsidiary, as an Unrestricted Subsidiary if (i) immediately prior, and immediately after giving effect, to such designation, no Event of Default or Borrowing Base Deficiency shall have occurred and be continuing, (ii) such designation is deemed to be an Investment in an Unrestricted Subsidiary in an amount equal to the fair market value as of the date of such designation of the Borrower's direct and indirect ownership interest in such Subsidiary and such Investment would be permitted to be made at the time of such designation under <u>Section</u> <u>9.05(k)</u> and (iii) such designation shall be deemed to be a Disposition of any Borrowing Base Properties owned by such Subsidiary pursuant to which the provisions of <u>Section</u> <u>9.09</u> and <u>Section</u> <u>2.07(e)</u> shall apply. Except as provided in this <u>Section</u> <u>9.15(b)</u>, no Restricted Subsidiary may be redesignated as an Unrestricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower may designate any Unrestricted Subsidiary to be a Restricted Subsidiary if after giving effect to such designation, (i) the representations and warranties of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries contained in each of the Loan Documents are true and correct on and as of such date as if made on and as of the date of such redesignation (or, if stated to have been made expressly as of an earlier date, were true and correct as of such date), (ii) no Event of Default would exist, (iii) the Borrower shall be in compliance on a Pro Forma Basis with each financial covenant set forth in <u>Section</u> <u>9.01</u>, (iv) the Borrower complies with the requirements of <u>Section</u> <u>8.13</u>, (v) the designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at the time of designation of any Investment, Debt, or Liens of such Subsidiary existing at such time, and the Borrower shall be in compliance with <u>Article IX</u> after giving effect to such designation, (v) immediately after giving effect to such designation, the Borrower and such Subsidiary shall be in compliance with the requirements of <u>Section</u> <u>8.13</u> (without giving effect to any grace period for compliance provided for therein) and (vi) the Administrative Agent shall have received a certificate of a Responsible Officer, in form and substance reasonably satisfactory to the Administrative Agent, certifying as to the satisfaction of the conditions and matters set forth in clauses (i)-(iv) above (and in the case of clause (ii) above, setting forth reasonably detailed calculations demonstrating compliance on a Pro Forma Basis with the covenants set forth in <u>Section</u> <u>9.01</u>). Any such designation shall be treated as a cash dividend in an amount equal to the lesser of the fair market value of the Borrower's direct and indirect ownership interest in such Subsidiary or the amount of the Borrower's cash investment previously made for purposes of the limitation on Investments under <u>Section</u> <u>9.05(k)</u>.

**Section 9.16 <u>Limitation on Changes in Fiscal Periods</u>**. None of the Parent, the General Partner or the Borrower will make any change to the end of its fiscal year to end on a day other than December 31 or change any method of determining fiscal quarters.

**Section 9.17 <u>Amendments to Organizational Document</u><u>s and Citadel Permitted Existing Trade Document</u><u>s</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Parent, the General Partner or the Borrower will, and the Borrower will not permit any of the other Credit Parties to directly or indirectly amend, modify or otherwise change, or permit any amendment, modification or other change to (pursuant to a waiver or

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otherwise), any organizational or governing document of the Parent, the General Partner, the Borrower or any of its Restricted Subsidiaries (including by the filing or modification of any certificate of designation (including, with respect to the Parent, the Series B Preferred Shares and the Series D Preferred Shares (to the extent outstanding as of the Effective Date)) or certificate formation or articles of incorporation, or any agreement or arrangement (including any shareholders' agreement) entered into, with respect to any of its Equity Interests), or enter into any new agreement with respect to any of its Equity Interests, except (a) (other than with respect to the Parent, the Series B Preferred Shares and the Series D Preferred Shares (to the extent outstanding as of the Effective Date)) in the case of any such amendments, modifications or changes or any such agreements or arrangements that do not materially adversely affect any right, privilege or interest of Administrative Agent or the Lenders under the Loan Documents or in the Collateral or (b) with respect to the Parent in the case of the Series B Preferred Shares and the Series D Preferred Shares (to the extent outstanding as of the Effective Date), such amendments, modifications or changes or any such agreements or arrangements that do not adversely affect the Administrative Agent or the Lenders (it being understood that any amendment, modification or change, or waiver or consent to (x) Section 4(b), Section 5, Section 6 and any provision relating to the assignment or termination thereof of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation and (y) Section 5, Section 6(a) and Section 6(b) of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, in each shall adversely affect the Administrative Agent and the Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without the prior written consent of the Administrative Agent in its reasonable discretion, the Borrower will not amend, modify, waive or otherwise change, any of the terms of the Citadel Permitted Existing Trades or the Citadel Permitted Existing Trade Documents, and provided that the Borrower promptly furnishes to the Administrative Agent a copy of such amendment, modification, supplement or agreement; *provided* that this <u>Section</u> <u>9.17(b)</u> shall not prohibit the Liquidation of any Citadel Permitted Existing Trade or the assignment or novation of any Citadel Permitted Existing Trade from Citadel to a Lender (with the Borrower being the "remaining party" for purposes of such assignment or novation), in each case to the extent such Liquidation, assignment or novation is otherwise permitted by this Agreement.

**Section 9.18 <u>Outbound Investment Rules</u>**. Each of the Parent, the General Partner, the Borrower will not, and will not permit any of its Subsidiaries to, (a) be or become a "covered foreign person", as that term is defined in the Outbound Investment Rules, or (b) engage, directly or indirectly, in (i) a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, (ii) any activity or transaction that would constitute a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, if the Parent, the General Partner and the Borrower were a U.S. Person or (iii) any other activity that would cause the Administrative Agent or the Lenders to be in violation of the Outbound Investment Rules or cause the Administrative Agent or the Lenders to be legally prohibited by the Outbound Investment Rules from performing under this Agreement.

**Section 9.19 <u>Passive Holding Company</u>**. Neither the Parent nor the General Partner shall engage in any material operating or business activities; *provided* that the following and activities incidental thereto shall be permitted in any event: (a) its ownership of the Equity Interests

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of the Borrower and the Parent's ownership of the General Partner, (b) the maintenance of its legal existence (including the ability to incur fees, costs and expenses related thereto), (c) the performance of its obligations with respect to the Loan Documents and the Second Lien Note Documents, (d) solely in the case of the Parent, any public offering of its common stock or any other issuance or sale of its Equity Interests, (e) payment of taxes and dividends and making contributions to the capital of the Credit Parties, (f) participating in tax, accounting and other administrative matters or the making and filing of any reports required by any Governmental Authority, (g) holding any cash incidental to any activities permitted under this <u>Section</u> <u>9.19</u>, (h) providing indemnification to officers, managers and directors, (i) in the case of the General Partner, carrying out its obligations as the sole general partner of the Borrower and (j) managing, through its board, directors, officers and managers, the business of the Borrower and its Subsidiaries. For the avoidance of doubt, neither the Parent nor the General Partner shall (i) incur, create, assume or suffer to exist any Debt or other material liabilities or material financial obligations, except (A) nonconsensual obligations imposed by operation of law, (B) pursuant to any Loan Documents or Second Lien Note Documents to which it is a party, (C) obligations with respect to its Equity Interests, (ii) incur or suffer to exist any Liens on its Properties (now owned or hereafter acquired), except (A) Excepted Liens of the type described in clauses (a) through (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition and (B) in the case of the General Partner, Liens securing the Obligations and Liens securing the Second Lien Obligations, (iii) own Equity Interests in any Person other than (A) in the case of the Parent, the Equity Interests in the Borrower and Equity Interests in the General Partner and (B) in the case of the General Partner, general partnership interests of the Borrower, or (iv) issue or permit to remain outstanding any preferred stock or series of preferred stock other than (A) preferred stock or series of preferred stock of the Parent that does not constitute Disqualified Capital Stock and provided that the proceeds of the issuance of such preferred stock or series of preferred stock are contributed to the Borrower contemporaneously with the issuance thereof and (B) with respect to the Parent, the Series B Preferred Shares and the Series D Preferred Shares, in each case, outstanding on the Effective Date. The Parent will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts (or which requires the consent of or notice to other Persons in connection therewith) the Borrower or any of its Restricted Subsidiaries from (a) granting, conveying or creating any Lien on any of their Properties, (b) paying dividends or making distributions in respect of its Equity Interests to the Borrower or any Guarantor or (c) incurring, creating, assuming or suffering to exist any Debt.

**ARTICLE X** 

**EVENTS OF DEFAULT; REMEDIES** 

**Section 10.01 <u>Events of Default</u>**. One or more of the following events shall constitute an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in <u>Section</u> <u>10.01(a)</u>) payable under any Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of the Parent, the General Partner, the Borrower or any Restricted Subsidiary in or in connection with any Loan Document or any amendment or modification of any Loan Document or waiver under such Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Parent, the General Partner, the Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in <u>Section</u> <u>8.01(l)</u>, <u>Section</u> <u>8.02</u>, <u>Section</u> <u>8.03</u> (solely in respect of the Borrower), <u>Section</u> <u>8.06(a)</u>, <u>Section</u> <u>8.13</u>, <u>Section</u> <u>8.16</u>, <u>Section</u> <u>8.20</u>, <u>Section</u> <u>8.21</u> or in <u>ARTICLE</u> <u>IX</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent, the General Partner, the Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u> or <u>Section</u> <u>10.01(d)</u>) or any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days after the earlier to occur of (i) receipt of notice thereof by the Borrower from the Administrative Agent (which notice will be given at the request of any Lender) or (ii) a Responsible Officer of the Parent, the General Partner, the Borrower or any Restricted Subsidiary otherwise becoming aware of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Debt, when and as the same shall become due and payable and such failure continues beyond any applicable grace period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any event or condition occurs that results in any Material Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Debt or any trustee or agent on its or their behalf to cause any Material Debt to become due (other than by a regularly scheduled required prepayment), or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Borrower or any Restricted Subsidiary to make an offer in respect thereof (other than any event requiring prepayment pursuant to customary asset sale or change of control provisions); *provided* that notwithstanding anything to the contrary contained in this Agreement, any "Event of Default" occurring under the Second Lien Note Purchase Agreement (each a "<u>Second Lien Event of Default</u>") shall constitute a continuing Event of Default under this <u>Section</u> <u>10.01(g)</u> (for the avoidance of doubt, irrespective of whether such Second Lien Event of Default has been waived pursuant to and in accordance with the terms of the Second Lien Note Purchase Agreement) unless (i) such Second Lien Event of Default is waived in writing by the Majority Lenders or (ii) solely in the case of any Second Lien Event of Default as a result of the Borrower's violation of Section 7.01(b) of the Second Lien Note Purchase

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Agreement (an "<u>Asset Coverage Ratio Default</u>"), the Borrower has exercised a cure right with respect to such Asset Coverage Ratio Default within the "Cure Period" (as defined in the Second Lien Note Purchase Agreement as in effect on the Effective Date (without giving effect to any waiver, amendment or modification thereto)) pursuant to and strictly in accordance with terms of Section 7.01(c) of the Second Lien Note Purchase Agreement as in effect on the Effective Date (without giving effect to any waiver, amendment or modification thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Parent, the General Partner, the Borrower or any Restricted Subsidiary as of such date or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, the General Partner, the Borrower or any Restricted Subsidiary as of such date or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Parent, the General Partner, the Borrower or any Restricted Subsidiary as of such date shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>Section</u> <u>10.01(h)</u>, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, the General Partner, the Borrower or any Restricted Subsidiary as of such date or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) one or more judgments for the payment of money in an aggregate amount in excess of (A) prior to the Discharge of Second Lien Obligations, $10,000,000 and (B) after the Discharge of Second Lien Obligations, the greater of (1) $10,000,000 and (2) 5.0% of the Borrowing Base then in effect (to the extent not covered by independent third-party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding) or (ii) any one or more non-monetary judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, shall be rendered against the Parent, the General Partner, the Borrower, any Restricted Subsidiary or any combination thereof and the same shall remain undischarged for a period of thirty (30) consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Parent, the General Partner, the Borrower or any Restricted Subsidiary to enforce any such judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Parent, the General Partner, the Borrower or a Guarantor party thereto or shall be repudiated by any of them in writing, or cease to create a

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valid and perfected Lien of the priority required thereby in favor of the Administrative Agent on any material portion of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Parent, the General Partner, the Borrower or any Restricted Subsidiary or any of their Affiliates shall so state in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a Change in Control shall occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a liability of the Borrower and its Restricted Subsidiaries in an aggregate amount in excess of (A) prior to the Discharge of Second Lien Obligations, $10,000,000 and (B) after the Discharge of Second Lien Obligations, the greater of (1) $10,000,000 and (2) 5.0% of the Borrowing Base then in effect that is not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the Second Lien Intercreditor Agreement shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with its terms against the Parent, the General Partner, the Borrower, any Guarantor, the Second Lien Agent, or any other party thereto, or shall be repudiated by any of them, or cease to establish the relative Lien priorities required or purported thereby, or the Borrower, any Guarantor, the Second Lien Agent, or any of their respective Affiliates shall so state in writing.

**Section 10.02 <u>Remedies</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of an Event of Default other than one described in <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>, at any time thereafter during the continuance of such Event of Default, the Administrative Agent may, and at the request of the Majority Lenders, shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Notes and the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the General Partner, the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of Cash Collateral to secure the LC Exposure as provided in <u>Section</u> <u>2.08(j)</u>), shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the General Partner, the Borrower and each Guarantor; and in case of an Event of Default described in <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>, the Commitments shall automatically terminate and the Notes and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and the other obligations of the General Partner, the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of Cash Collateral to secure the LC Exposure as provided in <u>Section</u> <u>2.08(j)</u>), shall automatically become due and payable, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice

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of any kind, all of which are hereby waived by the General Partner, the Borrower and each Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of the occurrence of an Event of Default, the Administrative Agent and the Lenders will have all other rights and remedies available at law and equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Loans, whether by acceleration or otherwise, shall be applied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *first*, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Administrative Agent in its capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *second*, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *third*, pro rata to payment of accrued interest on the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *fourth*, pro rata to payment of (A) principal outstanding on the Loans, (B) LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time, (C) to serve as Cash Collateral to be held by the Administrative Agent to secure the remaining LC Exposure, (D) Obligations under Secured Swap Agreements owing to Secured Swap Parties, and (E) Secured Cash Management Obligations owing to Secured Cash Management Providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *fifth*, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *sixth*, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash (other than contingent indemnity obligations for which no claims have been made), shall be paid to the Borrower or as otherwise required by any Governmental Requirement.

Notwithstanding the foregoing, amounts received from the Borrower or any Guarantor that is not an "eligible contract participant" under the Commodity Exchange Act shall not be applied to any Excluded Swap Obligations (it being understood, that in the event that any amount is applied to Obligations other than Excluded Swap Obligations as a result of this clause, the Administrative Agent shall make such adjustments as it determines are appropriate to distributions pursuant to clause *fourth* above from amounts received from "eligible contract participants" under the Commodity Exchange Act to ensure, as nearly as possible, that the proportional aggregate recoveries with respect to Obligations described in clause *fourth* above by the holders of any Excluded Swap Obligations are the same as the proportional aggregate recoveries with respect to other Obligations pursuant to clause *fourth* above).

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**ARTICLE XI** 

**THE AGENTS** 

**Section 11.01 <u>Appointment; Powers</u>**. Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof and the other Loan Documents, together with such actions and powers as are reasonably incidental thereto.

**Section 11.02 <u>Duties and Obligations of Administrative Agent</u>**. The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing (the use of the term "agent" herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties), (b) the Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except as provided in <u>Section</u> <u>11.03</u>, and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent, the General Partner, the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall be deemed not to have (A) notice of any of the events or circumstances set forth or described in <u>Section</u> <u>8.</u>02 unless and until written notice thereof stating that it is a "notice under Section 8.02" in respect of this Agreement and identifying the specific clause under said Section is given to the Administrative Agent by the Borrower or a Lender or (B) knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or under any other Loan Document or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth in <u>ARTICLE</u> <u>VI</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or as to those conditions precedent expressly required to be to the Administrative Agent's satisfaction, (vi) the existence, value, perfection or priority of any collateral security or the financial or other condition of the Borrower and its Subsidiaries or any other obligor or guarantor, or (vii) any failure by the Borrower or any other Person (other than itself) to perform any of its obligations hereunder or under any other Loan Document or the performance or observance of any covenants, agreements or other terms or conditions set forth herein or therein. For purposes of determining compliance with the conditions specified in <u>ARTICLE</u> <u>VI</u>, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a

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Lender unless the Administrative Agent shall have received written notice from such Lender prior to the proposed closing date specifying its objection thereto.

**Section 11.03 <u>Action by Administrative Agent</u>**. The Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise in writing as directed by the Majority Lenders (or such other number, percentage or class of the Lenders as shall be necessary under the circumstances as provided in <u>Section</u> <u>12.02</u>) and in all cases the Administrative Agent shall be fully justified in failing or refusing to act hereunder or under any other Loan Documents unless it shall (a) receive written instructions from the Majority Lenders or the Lenders, as applicable, (or such other number, percentage or class of the Lenders as shall be necessary under the circumstances as provided in <u>Section</u> <u>12.02</u>) specifying the action to be taken and (b) be indemnified to its satisfaction by the Lenders against any and all liability and expenses which may be incurred by it by reason of taking or continuing to take any such action. The instructions as aforesaid and any action taken or failure to act pursuant thereto by the Administrative Agent shall be binding on all of the Lenders. If a Default has occurred and is continuing, then the Administrative Agent shall take such action with respect to such Default as shall be directed by the requisite Lenders in the written instructions (with indemnities) described in this <u>Section</u> <u>11.03</u>, *provided* that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable in the best interests of the Lenders. In no event, however, shall the Administrative Agent be required to take any action which exposes the Administrative Agent to personal liability or which is contrary to this Agreement, the Loan Documents or applicable law. If a Default has occurred and is continuing, no Arranger nor any Agent (other than the Administrative Agent) shall have any obligation to perform any act in respect thereof. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Majority Lenders or the Lenders (or such other number, percentage or class of the Lenders as shall be necessary under the circumstances as provided in <u>Section</u> <u>12.02</u>), and otherwise the Administrative Agent shall not be liable for any action taken or not taken by it hereunder or under any other Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith INCLUDING ITS OWN ORDINARY NEGLIGENCE, except for its own gross negligence or willful misconduct.

**Section 11.04 <u>Reliance by Administrative Agent</u>**. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon and each of the Borrower, the Lenders and the Issuing Bank hereby waives the right to dispute the Administrative Agent's record of such statement, except in the case of gross negligence or willful misconduct by the Administrative Agent. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent may deem and treat the payee of any Note as the holder thereof

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for all purposes hereof unless and until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent.

**Section 11.05 <u>Subagents</u>**. The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding Sections of this <u>ARTICLE</u> <u>XI</u> shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

**Section 11.06 <u>Resignation of Administrative Agent</u>**. Subject to the appointment and acceptance of a successor Administrative Agent as provided in this <u>Section</u> <u>11.06</u>, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such resignation, the Majority Lenders shall have the right, in consultation with the Borrower, and with the consent of the Borrower if no Event of Default has occurred and is then continuing, to appoint a successor. If no successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent's resignation hereunder, the provisions of this <u>ARTICLE</u> <u>XI</u> and <u>Section</u> <u>12.03</u> shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.

**Section 11.07 <u>Agents as Lenders</u>**. Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Parent, the General Partner, the Borrower or any Subsidiary or other Affiliate thereof as if it were not an Agent hereunder.

**Section 11.08 <u>No Reliance</u>**. Each Lender and the Issuing Bank expressly acknowledges that none of the Administrative Agent, any Arranger or any of their respective Related Parties has made any representations or warranties to it and that no act taken or failure to act by the Administrative Agent, any Arranger or any of their respective Related Parties, including any consent to, and acceptance of any assignment or review of the affairs of the Borrower and any of its Subsidiaries or Affiliates shall be deemed to constitute a representation or warranty of the Administrative Agent or any of its Related Parties to any Lender, any Issuing Bank or any other Secured Party as to any matter, including whether the Administrative Agent or its Related Parties

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have disclosed material information in its (or its Related Parties') possession. Each Lender and the Issuing Bank expressly acknowledges, represents and warrants to the Administrative Agent and each Arranger that (a) the Loan Documents set forth the terms of a commercial lending facility, (b) it is engaged in making, acquiring, purchasing or holding commercial loans in the ordinary course and is entering into this Agreement and the other Loan Documents to which it is a party as a Lender for the purpose of making, acquiring, purchasing and/or holding the commercial loans set forth herein as may be applicable to it, and not for the purpose of investing in the general performance or operations of the Borrower and its Subsidiaries, or for the purpose of making, acquiring, purchasing or holding any other type of financial instrument such as a security, (c) it is sophisticated with respect to decisions to make, acquire, purchase or hold the commercial loans applicable to it and either it or the Person exercising discretion in making its decisions to make, acquire, purchase or hold such commercial loans is experienced in making, acquiring, purchasing or holding commercial loans, (d) it has, independently and without reliance upon the Administrative Agent, any Arranger, any other Lender or any of their respective Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and appraisal of, and investigations into, the business, prospects, operations, property, assets, liabilities, financial and other condition and creditworthiness of the Borrower and its Subsidiaries, all applicable bank or other regulatory laws relating to the Transactions and the transactions contemplated by this Agreement and the other Loan Documents and (e) it has made its own independent decision to enter into this Agreement and the other Loan Documents to which it is a party and to extend credit hereunder and thereunder. Each Lender and the Issuing Bank also acknowledges and agrees that (i) it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their respective Related Parties (A) continue to make its own credit analysis, appraisals and decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder based on such documents and information as it shall from time to time deem appropriate and its own independent investigations and (B) continue to make such investigations and inquiries as it deems necessary to inform itself as to the Borrower and its Subsidiaries and (ii) it will not assert any claim under any federal or state securities law or otherwise in contravention of this <u>Section</u> <u>11.08</u>. The Agents shall not be required to keep themselves informed as to the performance or observance by the Borrower or any of its Subsidiaries of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books of the Borrower or its Subsidiaries. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent or Arranger shall have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of the Borrower (or any of its Affiliates) which may come into the possession of such Agent or any of its Affiliates. In this regard, each Lender acknowledges that Sidley Austin LLP is acting in this transaction as special counsel to the Administrative Agent only, except to the extent otherwise expressly stated in any legal opinion or any Loan Document. Each other party hereto will consult with its own legal counsel to the extent that it deems necessary in connection with the Loan Documents and the matters contemplated therein.

**Section 11.09 <u>Administrative Agent May File Proofs of Claim</u>**. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Parent, the General Partner, the Borrower or any of its Subsidiaries, the Administrative Agent (irrespective of whether the principal of any

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Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under <u>Section</u> <u>12.03</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>12.03</u>.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

**Section 11.10 <u>Authority of Administrative Agent to Release Collateral, Liens and Guarantors</u>**. Each Lender (for itself and on behalf of any of its Affiliates that are or may become Secured Cash Management Providers and/or Secured Swap Parties) and the Issuing Bank hereby authorizes the Administrative Agent to (a) release any Collateral that is permitted to be sold or released pursuant to the terms of the Loan Documents (including, without limitation, any Collateral owned by a Restricted Subsidiary that is redesignated as an Unrestricted Subsidiary in accordance with <u>Section</u> <u>9.15(b)</u>), (b) release the Guarantee of any Subsidiary Guarantor and any Collateral owned by such Subsidiary Guarantor if 100% of the Equity Interests in such Subsidiary Guarantor are sold in a transaction permitted under the Loan Documents, (c) subordinate (or release) any Lien on any Property granted to or held by the Administrative Agent under any Loan Document to any Lien on such Property that is permitted by <u>Section</u> <u>9.03(c)</u>, (d) release any Subsidiary Guarantor if such Subsidiary becomes an Unrestricted Subsidiary, and (e) release all Liens on all Collateral and all Guarantees of Guarantors upon termination of this Agreement, termination of all Secured Swap Agreements (other than such Swap Agreements as to which arrangements satisfactory to the applicable counterparty in its sole discretion have been made), termination of all Letters of Credit (other than Letters of Credit as to which arrangements satisfactory to the Issuing Bank in its sole discretion have been made), and the payment in full in cash of all outstanding Loans, LC Disbursements, all other Obligations, and all other obligations payable under this Agreement and under any other Loan Document. Each Lender (for itself and on behalf

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of any of its Affiliates that are or may become Secured Cash Management Providers and/or Secured Swap Parties)and the Issuing Bank hereby authorizes the Administrative Agent to execute and deliver to the Borrower, at the Borrower's sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested by the Borrower in connection with any sale or other disposition of Property to the extent such sale or other disposition is permitted by the terms of <u>Section</u> <u>9.09</u> or is otherwise authorized by the terms of the Loan Documents.

**Section 11.11 <u>The Arrangers and the Agents</u>**. The Arrangers and the Agents (other than the Administrative Agent) shall have no duties, responsibilities or liabilities under this Agreement and the other Loan Documents other than their duties, responsibilities and liabilities in their capacity as Lenders hereunder.

**Section 11.12 <u>Certain ERISA Matters</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (i) represents and warrants, as of the date such Person became a Lender party hereto, to, and (ii) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Arranger, and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans, the Letters of Credit, or the Commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Section VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer, and perform the Loans, the Letters of Credit, the Commitments, and this Agreement, (C) the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement satisfies the requirements of Section I(b) through (k) of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of Section I(a) of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of,

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and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty, and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless subclause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty, and covenant as provided in subclause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Arranger, and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) none of the Administrative Agent, any Arranger, or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document, or any documents related to hereto or thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement is independent (within the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a broker-dealer, or other person that holds, or has under management or control, total assets of at least $50,000,000, in each case, as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Letters of Credit, the Commitments, and this Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no fee or other compensation is being paid directly to the Administrative Agent, any Arranger, or any of their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Letters of Credit, the Commitments, or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent and each Arranger hereby inform the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments, and this Agreement, (ii) may recognize a gain if it extended the Loans, the Letters of Credit, or the Commitments for an amount less than the amount being paid for an interest in the Loans, the Letters of Credit, or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the

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transactions contemplated hereby, the Loan Documents, or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker's acceptance fees, breakage or other early termination fees, or fees similar to the foregoing.

**Section 11.13 <u>Credit Bidding</u>**. The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Majority Lenders, to credit bid all or any portion of the Obligations (including by accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code, including under Sections 363, 1123 or 1129 of the Bankruptcy Code, or any similar laws in any other jurisdictions to which a Credit Party is subject, or (b) at any other sale, foreclosure, or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable law. In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit bid by the Administrative Agent at the direction of the Majority Lenders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid, (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Secured Parties' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Administrative Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (*provided* that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Majority Lenders or their permitted assignees under the terms of this Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Majority Lenders contained in <u>Section</u> <u>12.02</u> of this Agreement), (iv) the Administrative Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured Parties, ratably on account of the relevant Obligations which was credit bid, interests, whether as equity, partnership, limited partnership interests, or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle or vehicles, all without the need for any Secured Party or acquisition vehicle to take any further action, and (v) to the extent that Obligations that is assigned to an acquisition vehicle is not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Secured Parties pro rata and the equity

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interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Secured Party is deemed assigned to the acquisition vehicle or vehicles as set forth in clause (ii) above, each Secured Party shall execute such documents and provide such information regarding the Secured Party (and/or any designee of the Secured Party which will receive interests in or debt instruments issued by such acquisition vehicle or vehicles) as the Administrative Agent may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid, or the consummation of the transactions contemplated by such credit bid.

**Section 11.14 <u>Erroneous Payments</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender, Issuing Bank or Secured Party, or any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party such Lender or Issuing Bank (any such Lender, Issuing Bank, Secured Party or other recipient, a "<u>Payment Recipient</u>") that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding <u>clause (b)</u>) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, Secured Party or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous Payment</u>") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank or Secured Party shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this <u>clause (a)</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting immediately preceding <u>clause (a)</u>, each Lender, Issuing Bank or Secured Party, or any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party such Lender or Issuing Bank, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates),

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or (z) that such Lender, Issuing Bank or Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of immediately preceding <u>clauses (x)</u> or <u>(y)</u>, an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error has been made (in the case of immediately preceding <u>clause (z)</u>), in each case, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, Issuing Bank or Secured Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>Section</u> <u>11.14(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender, Issuing Bank or Secured Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, Issuing Bank or Secured Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender, Issuing Bank or Secured Party from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a)</u> or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding <u>clause (a)</u>, from any Lender or Issuing Bank that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "<u>Erroneous Payment Return Deficiency</u>"), upon the Administrative Agent's notice to such Lender or Issuing Bank at any time, (i) such Lender or Issuing Bank shall be deemed to have assigned its Loans (but not its Commitments) with respect to which such Erroneous Payment was made (the "<u>Erroneous Payment Impacted Class</u>") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Class, the "<u>Erroneous Payment Deficiency Assignment</u>") at par <u>plus</u> any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to electronic communications as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender or Issuing Bank shall deliver any Notes evidencing such Loans to the Borrower or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender or assigning Issuing Bank shall cease to be a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender or assigning Issuing

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Bank and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender or Issuing Bank shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender or Issuing Bank (and/or against any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or Issuing Bank and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender, Issuing Bank or Secured Party under the Loan Documents with respect to each Erroneous Payment Return Deficiency (the "<u>Erroneous Payment Subrogation Rights</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's obligations, agreements and waivers under this <u>Section</u> <u>11.1</u><u>4</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender or Issuing Bank, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

**ARTICLE XII** 

**MISCELLANEOUS** 

**Section 12.01 <u>Notices</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to <u>Section</u> <u>12.01(b)</u>), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile, as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Parent, the General Partner or the Borrower, to it at:

2000 Market Street, Suite 910

Philadelphia, PA 19103

Attention: Jeffrey Slotterback

Email: jslotterback@whitehawkenergy.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Administrative Agent or to the Issuing Bank, to it at:

Capital One, National Association

800 Capitol Street, Suite 3400

Houston, Texas 77002

Attention: Mason McGurrin, Head of Oil & Gas Banking

Email: mason.mcgurrin@capitalone.com

With a copy to:

Capital One, National Association

800 Capitol Street, Suite 3400

Houston, Texas 77002

Attention: Christopher Kuna, Senior Director

Email: christopher.kuna@capitalone.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to any other Lender, to it at its address (or facsimile number or email address) set forth in its Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; *provided* that the foregoing shall not apply to notices pursuant to <u>ARTICLE</u> <u>II</u>, <u>ARTICLE</u> <u>III</u>, <u>ARTICLE</u> <u>IV</u> and <u>ARTICLE</u> <u>V</u> unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; *provided* that approval of such procedures may be limited to particular notices or communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by fax shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications, to the extent provided in <u>Section</u> <u>12.01(b)</u>, shall be effective as provided in <u>Section</u> <u>12.01(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing <u>clause</u> 

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 <u>(i)</u>, of notification that such notice or communication is available and identifying the website address therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any party hereto may change its address, facsimile number or email address for notices and other communications hereunder by notice to the other parties hereto.

**Section 12.02 <u>Waivers; Amendments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No failure on the part of the Administrative Agent, any other Agent, the Issuing Bank or any Lender to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies of the Administrative Agent, any other Agent, the Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by <u>Section</u> <u>12.02(b)</u>, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any other Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither this Agreement nor any provision hereof nor any Security Instrument nor, in each case, any provision thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Majority Lenders or by the Borrower and the Administrative Agent with the consent of the Majority Lenders; *provided* that no such agreement shall (i) (A) increase the Commitment, Elected Commitment or the Maximum Credit Amount of any Lender without the written consent of such Lender, or (B) increase the Aggregate Maximum Credit Amounts without the consent of each Lender (other than any Defaulting Lender), (ii) increase the Borrowing Base without the written consent of each Lender (other than any Defaulting Lender), decrease or maintain the Borrowing Base without the consent of the Required Lenders, or modify <u>Section</u> <u>2.07</u> in any manner that results in an increase in the Borrowing Base without the consent of each Lender (other than any Defaulting Lender) (it being understood that (A) a Scheduled Redetermination may be postponed by the Required Lenders and (B) any waiver, consent, amendment or other modification to <u>Section</u> <u>2.07(e)</u> or <u>Section</u> <u>2.07(f)</u> that would waive, amend, postpone or modify the implementation of any reduction of the Borrowing Base that would otherwise occur pursuant to <u>Section</u> <u>2.07(e)</u> or <u>Section</u> <u>2.07(f)</u>, as the case may be, shall only require the written consent of the Required Lenders), (iii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, or reduce any other Obligations hereunder or under any other Loan Document, without the written consent of each Lender affected thereby (other than default rate interest provided hereunder which may be amended, reduced or waived by the Majority Lenders), (iv) postpone the scheduled date of payment or prepayment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or any other

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Obligations hereunder or under any other Loan Document, or reduce the amount of, waive or excuse any such payment, or postpone or extend the Maturity Date without the written consent of each Lender affected thereby, (v) change <u>Section</u> <u>2.06</u> in a manner that would alter the ratable reduction of Commitments required thereby or <u>Section</u> <u>4.01(b)</u> or <u>Section</u> <u>4.01(c)</u> in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (vi) waive or amend <u>Section</u> <u>3.04(c)(i)</u>, <u>Section</u> <u>6.02</u>, <u>Section</u> <u>8.13</u>, <u>Section</u> <u>10.02(c)</u> (or amend any of the defined terms in such Section if the result would be to alter the priority of payments in respect of Collateral proceeds) or <u>Section</u> <u>12.14</u> or change the definition of the terms "Domestic Subsidiary", "Foreign Subsidiary", "Applicable Percentage", or "Subsidiary", without the written consent of each Lender (other than any Defaulting Lender), (vii) release any Guarantor (except as set forth in <u>Section</u> <u>11.10</u> or in the Guarantee and Collateral Agreement) or release any of the Liens securing the Collateral (other than as provided in <u>Section</u> <u>11.10)</u>, or reduce the percentages set forth in <u>Section</u> <u>8.13(a)</u> to less than (a) prior to the Discharge of Second Lien Obligations, 90% and (b) following the Discharge of Second Lien Obligations, 85%, in each case, without the written consent of each Lender (other than any Defaulting Lender), (viii) change any of the provisions of this <u>Section</u> <u>12.02(b)</u> or the definition of the terms "Majority Lenders", "Required Lenders", "Supermajority Lenders" or any other provision hereof specifying the number, percentage or class of Lenders required to waive, amend or modify any rights hereunder or under any other Loan Documents or make any determination or grant any consent hereunder or any other Loan Documents, without the written consent of each Lender (other than any Defaulting Lender), (ix) amend or otherwise modify any Security Instrument in a manner that results in the Secured Swap Obligations or Secured Cash Management Obligations secured by such Security Instrument no longer being secured thereby on an equal and ratable basis with the principal of the Loans, or amend or otherwise change the definition of "Citadel Permitted Existing Trades," "Secured Swap Agreement," "Secured Swap Obligations" or "Secured Swap Party", or, in each case, the defined terms referenced in any such definition, without the written consent of each Secured Swap Party adversely affected thereby, or the definition of "Collateral", "Obligations", "Secured Parties", "Secured Cash Management Agreement," "Secured Cash Management Obligations" or "Secured Cash Management Provider," without the written consent of each Secured Cash Management Provider adversely affected thereby, or (x) (A) contractually subordinate the Obligations in right of payment to any other Debt for borrowed money or (B) contractually subordinate the liens in the Collateral to the liens securing any other Debt for borrowed money; *provided further* that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any other Agent or the Issuing Bank hereunder or under any other Loan Document without the prior written consent of the Administrative Agent, such other Agent or the Issuing Bank, as the case may be. Notwithstanding the foregoing, (A) any supplement to <u>Schedule</u> <u>7.13</u> (Subsidiaries) shall be effective simply by delivering to the Administrative Agent a supplemental schedule clearly marked as such and, upon receipt, the Administrative Agent will promptly deliver a copy thereof to the Lenders, (B) the Borrower and the Administrative Agent may amend this Agreement or any other Loan Document without the consent of the Lenders in order to correct, amend or cure any ambiguity, inconsistency or defect or correct any typographical error or other manifest error in any Loan Document, (C) the Administrative Agent and the Borrower (or other applicable Credit Party) may enter into any amendment, modification or waiver of this Agreement or any other Loan Document or enter into any agreement or instrument to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Mortgaged Property or Property to become Mortgaged

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Property to secure the Obligations for the benefit of the Lenders or as required by any Governmental Requirement to give effect to, protect or otherwise enhance the rights or benefits of any Lender under the Loan Documents without the consent of any Lender, (D) the Administrative Agent and the Borrower may, without the consent of any Lender, enter into amendments or modifications to this Agreement or any of the other Loan Documents or to enter into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to implement any Benchmark Replacement or any Conforming Changes or otherwise effectuate the terms of <u>Section</u> <u>3.03(c)</u> in accordance with the terms of <u>Section</u> <u>3.03(c)</u>, (E) any fee letter may be amended solely with the written consent of the parties thereto and (F) each Lender hereby irrevocably authorizes the Administrative Agent on its behalf, and without further consent of any Lender (but with the consent of the Borrower and the Administrative Agent), to amend and restate this Agreement if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitment of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder and shall have been paid in full all principal, interest, and other amounts owing to it or accrued for its account under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary herein the Administrative Agent and the Borrower may amend and restate the Schedules to this Agreement delivered as of the Signing Date to reflect the Updated Schedules in accordance with <u>Section</u> <u>6.02(t)</u>.

**Section 12.03 <u>Expenses, Indemnity; Damage Waiver</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including, without limitation, the reasonable and documented fees, charges and disbursements of counsel and other outside consultants for the Administrative Agent, the reasonable travel, photocopy, mailing, courier, telephone and other similar expenses in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Administrative Agent as to the rights and duties of the Administrative Agent and the Lenders with respect thereto) of this Agreement and the other Loan Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) (it being understood that for purposes of this clause (a)(i), legal fees and expenses shall be limited to the reasonable and documented out-of-pocket fees and expenses of Sidley Austin LLP and one local counsel as reasonably necessary in any relevant jurisdiction (and solely in the case of any actual conflict of interest, one additional counsel and (if reasonably necessary) one local counsel in each relevant jurisdiction to the affected Indemnitees similarly situated)), (ii) all costs, expenses and Other Taxes incurred by any Agent or any Lender in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Security Instrument or any other document referred to therein, (iii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iv) all out-of-pocket expenses incurred by any Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for any Agent, the Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Loan Document, including its rights under this <u>Section</u> <u>12.03</u>, or

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in connection with the Loans made or Letters of Credit issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit (including all respective legal fees and expenses), except in the case of out-of-pocket expenses described in this <u>Section</u> <u>12.03(a)</u> to the extent that <u>Section</u> <u>12.03(b)</u> expressly provides that the Borrower or any other Credit Party shall not indemnify such party for such out-of-pocket expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) THE BORROWER SHALL INDEMNIFY EACH AGENT, EACH ARRANGER, THE ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN "<u>INDEMNITEE</u>") AGAINST, AND DEFEND AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, LIABILITIES AND RELATED EXPENSES, (INCLUDING ALL RESPECTIVE LEGAL FEES AND EXPENSES, WHICH SHALL BE LIMITED TO THE REASONABLE AND DOCUMENTED OUT-OF-POCKET FEES AND EXPENSES OF ONE COUNSEL TO ALL INDEMNITEES TAKEN AS A WHOLE AND ONE LOCAL COUNSEL IN EACH RELEVANT JURISDICTION (AND SOLELY IN THE CASE OF AN ACTUAL CONFLICT OF INTEREST, ONE ADDITIONAL COUNSEL TO THE AFFECTED INDEMNITEES, TAKEN AS A WHOLE AND (IF REASONABLY NECESSARY) ONE LOCAL COUNSEL, IN ANY RELEVANT JURISDICTION)), INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (i) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER LOAN DOCUMENT OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR BY ANY OTHER LOAN DOCUMENT, (ii) THE FAILURE OF THE PARENT, THE GENERAL PARTNER, THE BORROWER OR ANY SUBSIDIARY TO COMPLY WITH THE TERMS OF ANY LOAN DOCUMENT, INCLUDING THIS AGREEMENT, OR WITH ANY GOVERNMENTAL REQUIREMENT, (iii) ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OR COVENANT OF THE PARENT, THE GENERAL PARTNER, THE BORROWER OR ANY RESTRICTED SUBSIDIARY SET FORTH IN ANY OF THE LOAN DOCUMENTS OR ANY INSTRUMENTS, DOCUMENTS OR CERTIFICATIONS DELIVERED IN CONNECTION THEREWITH, (iv) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM, INCLUDING, WITHOUT LIMITATION, (A) ANY REFUSAL BY THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, OR (B) THE PAYMENT OF A DRAWING UNDER ANY LETTER OF CREDIT NOTWITHSTANDING THE NON-COMPLIANCE, NON-DELIVERY OR OTHER IMPROPER PRESENTATION OF THE DOCUMENTS PRESENTED IN CONNECTION THEREWITH, (v) ANY OTHER ASPECT OF THE LOAN DOCUMENTS, (vi) THE OPERATIONS OF THE BUSINESS OF THE PARENT, THE GENERAL PARTNER, THE BORROWER AND ITS SUBSIDIARIES BY THE PARENT, THE GENERAL PARTNER, THE BORROWER AND ITS SUBSIDIARIES, (vii) ANY ASSERTION THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE SECURITY INSTRUMENTS, (viii) ANY

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LIABILITY OF THE BORROWER OR ANY SUBSIDIARY UNDER ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY OR ANY OF THEIR PROPERTIES OR OPERATIONS, INCLUDING, THE PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE, USE, TRANSPORT, DISPOSAL, ARRANGEMENT OF DISPOSAL OR TREATMENT OF HAZARDOUS MATERIALS ON OR AT ANY OF THEIR PROPERTIES, (ix) THE BREACH OR NON-COMPLIANCE BY THE BORROWER OR ANY SUBSIDIARY WITH ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY, (x) THE PAST OWNERSHIP BY THE BORROWER OR ANY SUBSIDIARY OF ANY OF THEIR PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL AND FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY, (xi) THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT, DISPOSAL, GENERATION, THREATENED RELEASE, TRANSPORT, ARRANGEMENT FOR TRANSPORT OR ARRANGEMENT FOR DISPOSAL OF HAZARDOUS MATERIALS ON, AT OR FROM ANY OF THE PROPERTIES OWNED OR OPERATED BY THE BORROWER OR ANY SUBSIDIARY OR ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES, (xii) ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES OR IN CONNECTION WITH THE LOAN DOCUMENTS, OR (xiii) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER BROUGHT BY A THIRD PARTY OR BY ANY CREDIT PARTY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, AND SUCH INDEMNITY SHALL EXTEND TO EACH INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNITEES INCLUDING ORDINARY NEGLIGENCE; *PROVIDED* THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES (A) ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR ANY OF ITS RELATED PARTIES OR (B) RESULT FROM A PROCEEDING SOLELY BETWEEN OR AMONG INDEMNITEES THAT DOES NOT INVOLVE ANY ACTION OR OMISSION BY THE PARENT, THE GENERAL PARTNER, THE BORROWER OR ANY RESTRICTED SUBSIDIARY, OTHER THAN CLAIMS AGAINST ANY OF THE ADMINISTRATIVE AGENT OR THE LENDERS OR ANY OF THEIR AFFILIATES SOLELY IN ITS CAPACITY OR IN FULFILLING ITS ROLE AS THE ADMINISTRATIVE AGENT, ISSUING BANK, AN ARRANGER, AN AGENT OR ANY SIMILAR ROLE UNDER THIS AGREEMENT. THIS <u>SECTION</u> <u>12.03(b)</u> SHALL NOT APPLY WITH RESPECT TO TAXES OTHER THAN ANY

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TAXES THAT REPRESENT LOSSES, CLAIMS, DAMAGES, ETC. ARISING FROM ANY NON-TAX CLAIM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that the Borrower fails to pay any amount required to be paid by it to any Agent, any Arranger, the Issuing Bank or any Related Party of any of the foregoing under <u>Section</u> <u>12.03(a)</u>, <u>(b)</u> or <u>(d)</u>, each Lender severally agrees to pay to such Agent, such Arranger such Issuing Bank or such Related Party (each, an "<u>Agent-Related Person</u>"), as the case may be, such Lender's Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought or, if such payment is sought after the Release Date, ratably in accordance with such Applicable Percentage immediately prior to such date) of such unpaid amount and agrees to indemnify and hold each Agent-Related Person harmless from and against any and all losses, claims (including intraparty claims), demands, damages or liabilities of any kind and related expenses, including the fees, charges and disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent-Related Person in any way relating to or arising out of the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent-Related Person under or in connection with any of the foregoing; <u>provided</u> that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against such Agent, such Arranger or the Issuing Bank in its capacity as such. The agreements in this <u>Section</u> <u>12.03(c)</u> shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All amounts due under this <u>Section</u> <u>12.03</u> shall be payable promptly after written demand therefor.

**Section 12.04 <u>Successors and Assigns</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) none of the Parent, the General Partner or the Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Parent, the General Partner, the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this <u>Section</u> <u>12.04</u>. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in <u>Section</u> <u>12.04(c)</u>) and, to the extent expressly

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contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Subject to the conditions set forth in <u>Section</u> <u>12.04(b)(ii)</u> below, any Lender may assign to one or more assignees (other than the Borrower, any Affiliate of the Borrower, any Defaulting Lender, any Disqualified Institution or any natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person)) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed) of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Borrower, *provided* that no consent of the Borrower shall be required if such assignment is to an existing Lender, an Affiliate of an existing Lender, an Approved Fund or, if any Event of Default has occurred and is continuing, is to any other assignee; *provided*, *further* that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Administrative Agent and the Issuing Bank, *provided* that no consent of the Administrative Agent shall be required for an assignment to an assignee that is a Lender immediately prior to giving effect to such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Assignments shall be subject to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender's Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $2,500,000 unless each of the Borrower and the Administrative Agent otherwise consent, *provided* that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) each total assignment shall be made as an assignment of all the assigning Lender's rights and obligations under this Agreement, including, without limitation, its Commitment, Maximum Credit Amount, LC Exposure, participations in Letters of Credit, and outstanding Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) in no event may any Lender assign all or a portion of its rights and obligations under this Agreement to the Borrower, any Affiliate of the Borrower, any Defaulting Lender, any Disqualified Institution or any natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to <u>Section</u> <u>12.04(b)(iv)</u> and the acceptance and recording thereof, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> and <u>Section</u> <u>12.03</u>). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this <u>Section</u> <u>12.04</u> shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>Section</u> <u>12.04(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Maximum Credit Amount and Elected Commitment of, and principal amount (and stated interest) of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. In connection with any changes to the Register, if necessary, the Administrative Agent will reflect the revisions on <u>Annex</u> <u>I</u> and forward a copy of such revised <u>Annex</u> <u>I</u> to the Borrower, the Issuing Bank and each Lender. This <u>Section</u> <u>12.04(b)(iv)</u> shall be construed so that the Loans are at all times maintained in "registered form" within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related regulations (and any successor provisions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee's completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in <u>Section</u> <u>12.04(b)</u> and any written consent to such assignment required by <u>Section</u> <u>12.04(b)</u>, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register.

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No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this <u>Section</u> <u>12.04(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) Any Lender may, without the consent of the Parent, the General Partner, the Borrower, the Administrative Agent or the Issuing Bank, sell participations to one or more banks or other Persons (other than the Borrower, any Affiliate of the Borrower, any Defaulting Lender, any Disqualified Institution or any natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person)) (a "<u>Participant</u>") in all or a portion of such Lender's rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); *provided* that (A) such Lender's obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (C) the Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; *provided* that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the proviso to <u>Section</u> <u>12.02</u> that affects such Participant. Subject to <u>Section</u> <u>12.04(c)(ii)</u>, the Borrower agrees that each Participant shall be entitled to the benefits of <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u> and <u>Section</u> <u>5.03</u> to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>Section</u> <u>12.04(b)</u>. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>12.08</u> as though it were a Lender, provided such Participant agrees to be subject to <u>Section</u> <u>4.01(c)</u> as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Participant agrees (A) to be subject to the provisions of <u>Section</u> <u>5.03</u> (subject to the requirements and limitations therein, including the requirements under Section 5.03(f) (it being understood that the documentation required under <u>Section</u> <u>5.03(f)</u> shall be delivered to the participating Lender)) as if it were an assignee under paragraph (b) of this Section; and (B) that it shall not be entitled to receive any greater payment under <u>Section</u> <u>5.01</u> or <u>Section</u> <u>5.03</u>, with respect to any participation, than its participating Lender would have been entitled

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to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including, without limitation, any pledge or assignment to secure obligations to a Federal Reserve Bank or other central bank having jurisdiction over such Lender, and this <u>Section</u> <u>12.04</u> shall not apply to any such pledge or assignment of a security interest; *provided* that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any other provisions of this <u>Section</u> <u>12.04</u>, no transfer or assignment of the interests or obligations of any Lender or any grant of participations therein shall be permitted if such transfer, assignment or grant would require the Borrower and the Guarantors to file a registration statement with the SEC or to qualify the Loans under the "Blue Sky" laws of any state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disqualified Institutions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date (the "<u>Trade Date</u>") on which the assigning or transferring Lender entered into a binding agreement to sell and assign, or grant a participation in, all or a portion of its rights and obligations under this Agreement, as applicable, to such Person unless the Administrative Agent and the Borrower have consented in writing in their sole and absolute discretion to such assignment or participation, in which case such Person will not be considered a Disqualified Institution for the purpose of such assignment or participation. For the avoidance of doubt, (x) no assignment or participation shall be retroactively invalidated pursuant to this <u>Section</u> <u>12.04(f)</u> if the Trade Date therefor occurred prior to the assignee's or participant's becoming a Disqualified Institution (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the definition of "Disqualified Institution"), and (y) the execution by the Borrower or Administrative Agent of an Assignment and Assumption with respect to such an assignment will not by itself result in such assignee no longer being considered a Disqualified Institution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent and each assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in the relevant Assignment or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, to (A) post the list of Disqualified Institutions provided by the Borrower and any updates thereto from time to time (collectively, the "<u>DQ List</u>") on an E-System, including that portion of such E-System that is designated for "public side" Lenders and/or (B) provide the DQ List to each Lender requesting the same. Any assignment to a Disqualified Institution or grant or sale of participation to a Disqualified

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Institution in violation of this <u>Section</u> <u>12.04(f)</u> shall not be void, but the other provisions of this <u>Section</u> <u>12.04(f)</u> shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If any assignment or participation is made to any Disqualified Institution without the consents required by this <u>Section</u> <u>12.04(f)</u> and/or <u>Section</u> <u>12.04(b)</u>, or if any Person becomes a Disqualified Institution after the applicable Trade Date, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution and the Administrative Agent, (1) terminate the Commitment of such Disqualified Institution and pay or cause to be paid all Obligations of the Borrower owing to such Disqualified Institution in connection with such Commitment, (2) in the case of outstanding Loans held by Disqualified Institutions, purchase or prepay (or cause to be purchased or prepaid) such Term Loan by paying the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such Term Loans, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder and/or (C) require such Disqualified Institution to assign, without recourse (in accordance with and subject to the restrictions and conditions contained in this <u>Section</u> <u>12.04</u>), all of its interest, rights and obligations under this Agreement and the other Loan Documents to one or more assignees at the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such interests, rights and obligations of such Loans, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder. Any Loan so purchased by a Borrower under this <u>Section</u> <u>12.04(f)</u> shall upon such purchase be deemed to be irrevocably prepaid, terminated, extinguished, cancelled and of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary contained in this Agreement, Disqualified Institutions (1) will not have the right to (x) receive information, reports or other materials provided to the Administrative Agent or Lenders by the Borrower, the Administrative Agent or any other Lender, (y) attend or participate (including by telephone) in meetings attended by any of the Lenders and/or the Administrative Agent, or (z) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (2) (x) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified Institution will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter, and (y) for purposes of voting on any plan of reorganization pursuant to Section 1126 of the Bankruptcy Code or any similar plan, each Disqualified Institution party hereto hereby agrees (1) not to vote on such plan, (2) if such Disqualified Institution does vote on such plan notwithstanding the restriction in the immediately foregoing clause (1), such vote will be deemed not to be in good faith and shall be "designated" pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other similar federal, state or foreign law affecting creditor's rights), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such plan in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other similar federal, state or foreign law affecting creditor's rights) and (3) not to contest any request by any party

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for a determination by the Bankruptcy Court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).

**Section 12.05 <u>Survival; Revival; Reinstatement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All covenants, agreements, representations and warranties made by the Parent, the General Partner, the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any other Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> and <u>Section</u> <u>12.03</u> and <u>ARTICLE</u> <u>XI</u> shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan Document or any provision hereof or thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that any payments on the Obligations or proceeds of any Collateral are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable cause, then to such extent, the Obligations so satisfied shall be revived and continue as if such payment or proceeds had not been received and the Administrative Agent's and the Lenders' Liens, security interests, rights, powers and remedies under this Agreement and each Loan Document shall continue in full force and effect. In such event, each Loan Document shall be automatically reinstated and the Borrower shall take such action as may be reasonably requested by the Administrative Agent and the Lenders to effect such reinstatement.

**Section 12.06 <u>Counterparts; Integration; Effectiveness</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof. **THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT WITH RESPECT TO THE SUBJECT MATTER CONTAINED HEREIN AND THEREIN AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR** 

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 **SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as provided in <u>Section</u> <u>6.02</u>, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic transmission (*e.g.*,.pdf) shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Electronic Execution</u>. The words "execute," "execution," "signed," "signature," "delivery" and words of like import in or related to this Agreement, any other Loan Document or any document, amendment, approval, consent, waiver, modification, information, notice, certificate, report, statement, disclosure, or authorization to be signed or delivered in connection with this Agreement or any other Loan Document or the transactions contemplated hereby shall be deemed to include Electronic Signatures or execution in the form of an Electronic Record, and contract formations on electronic platforms approved by the Administrative Agent, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. Each party hereto agrees that any Electronic Signature or execution in the form of an Electronic Record shall be valid and binding on itself and each of the other parties hereto to the same extent as a manual, original signature. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the parties of a manually signed paper which has been converted into electronic form (such as scanned into PDF format), or an electronically signed paper converted into another format, for transmission, delivery and/or retention. Notwithstanding anything contained herein to the contrary, the Administrative Agent is under no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it; *provided* that, without limiting the foregoing, (a) to the extent the Administrative Agent has agreed to accept such Electronic Signature from any party hereto, the Administrative Agent and the other parties hereto shall be entitled to rely on any such Electronic Signature purportedly given by or on behalf of the executing party without further verification and (b) upon the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by an original manually executed counterpart thereof. Without limiting the generality of the foregoing, each party hereto hereby (i) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders and any of the Credit Parties, electronic images of this Agreement or any other Loan Document (in each case, including with respect to any signature pages thereto) shall have the same legal effect, validity and enforceability as any paper original, and (ii) waives any argument, defense or right to contest the validity or enforceability of the Loan Documents based solely on the lack of paper original copies of any Loan Documents, including with respect to any signature pages thereto.

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**Section 12.07 <u>Severability</u>**. Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

**Section 12.08 <u>Right of Setoff</u>**. Subject to <u>Section</u> <u>12.14</u>, if an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations (of whatsoever kind, including, without limitations obligations under Swap Agreements) at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any Restricted Subsidiary against any of and all the obligations of the Borrower or any Restricted Subsidiary owed to such Lender now or hereafter existing under this Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each Lender under this <u>Section</u> <u>12.08</u> are in addition to other rights and remedies (including other rights of setoff) which such Lender or its Affiliates may have. Each Lender and Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.

**Section 12.09 <u>Governing Law; Jurisdiction; Consent to Service of Process</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EITHER CASE LOCATED IN NEW YORK COUNTY, NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER

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LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS; AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS <u>SECTION</u> <u>12.09</u>; *PROVIDED* THAT THE FOREGOING SHALL NOT LIMIT THE INDEMNITY AND REIMBURSEMENT OBLIGATIONS TO THE EXTENT SET FORTH IN <u>SECTION 12.03(b)</u> IN RESPECT OF ANY THIRD PARTY CLAIMS ALLEGING SUCH SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN SECTION 12.01 OR SUCH OTHER ADDRESS AS IS SPECIFIED PURSUANT TO <u>SECTION 12.01</u> (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION.

**Section 12.10 <u>Headings</u>**. Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

**Section 12.11 <u>Non-Public Information; Confidentiality</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Public Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Distribution of Materials to Lenders and the Issuing Bank</u>. The Borrower acknowledges and agrees that (A) the Loan Documents and all reports, notices, communications and other information or materials provided or delivered by, or on behalf of, the Credit Parties hereunder (collectively, the "<u>Borrower Materials</u>") may be disseminated by, or on behalf of, the Administrative Agent, and made available, to the Lenders and the Issuing Bank by posting such Borrower Materials on an E-System; and (B) certain of the Lenders (each a "<u>Public Lender</u>") may have personnel who do not wish to receive material non-public information ("<u>MNPI</u>") with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons' securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Material Non-Public Information</u>. The Borrower shall (A) identify in writing, and (B) to the extent reasonably practicable, clearly and conspicuously mark all Borrower Materials that contain only information that is publicly available or that is not material for purposes of United States federal and state securities laws as "PUBLIC". The Borrower agrees that by identifying such Borrower Materials as "PUBLIC" or publicly filing such Borrower Materials with the Securities and Exchange Commission, then the Administrative Agent, the Lenders and the Issuing Bank shall be entitled to treat such Borrower Materials as not containing any MNPI for purposes of United States federal and state securities laws. The Borrower further represents, warrants, acknowledges and agrees that the following documents and materials shall be deemed to be PUBLIC, whether or not so marked, and do not contain any MNPI: (I) the Loan Documents, including the schedules and exhibits attached thereto, and (II) administrative materials of a customary nature prepared by the Borrower or any of its Subsidiaries or the Administrative Agent (including, Borrowing Requests, Interest Election Requests, requests for the issuance, amendment, renewal or extension of Letters of Credit, and any similar requests or notices posted on or through an E-System). Before distribution of Borrower Materials, the Borrower agrees to execute and deliver to the Administrative Agent a letter authorizing distribution of the evaluation materials to prospective Lenders and their employees willing to receive MNPI, and a separate letter authorizing distribution of evaluation materials that do not contain MNPI and represent that no MNPI is contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Administrative Agent, each Lender and the Issuing Bank acknowledges and agrees that it may receive MNPI hereunder concerning the Credit Parties and their Affiliates and agrees to use such information in compliance with all relevant policies, procedures and applicable laws (including United States federal and state securities laws and regulations). Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the "Private Side Information" or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender's compliance procedures and applicable law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the "Public Side Information" portion of the E-System and that may contain material non-public information with respect to the Parent or its securities for purposes of United States Federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Confidentiality</u>. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority or self-regulatory authority (including the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement or any other Loan Document, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this <u>Section</u> <u>12.11</u>, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement,

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(ii) any actual or prospective counterparty (or its advisors) to any Swap Agreement relating to the Borrower or any Restricted Subsidiary and their obligations or (iii) any actual or potential insurer or reinsurer, (g) with the consent of the Borrower, (h) to any nationally recognized rating agency that requires access to information about a Lender's investment portfolio in connection with ratings issued with respect to such Lender or to any collector of market data or (i) to the extent such Information (i) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>12.11</u> or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this <u>Section</u> <u>12.11</u>, "Information" means all information received from the Borrower or any Restricted Subsidiary relating to the Parent, the General Partner, the Borrower or any Restricted Subsidiary and their businesses, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Parent, the General Partner, the Borrower or a Restricted Subsidiary; *provided* that, in the case of information received from the Parent, the General Partner, the Borrower or any Restricted Subsidiary after the Signing Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>12.11</u> shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. Notwithstanding anything herein to the contrary, "Information" shall not include, and the Parent, the General Partner, the Borrower, the Borrower's Restricted Subsidiaries, the Administrative Agent, each Lender and the respective Affiliates of each of the foregoing (and the respective partners, directors, officers, employees, agents, advisors and other representatives of the aforementioned Persons), and any other party, may disclose to any and all Persons, without limitation of any kind (A) any information with respect to the United States federal and state income tax treatment of the transactions contemplated hereby and any facts that may be relevant to understanding the United States federal or state income tax treatment of such transactions ("tax structure"), which facts shall not include for this purpose the names of the parties or any other person named herein, or information that would permit identification of the parties or such other persons, or any pricing terms or other nonpublic business or financial information that is unrelated to such tax treatment or tax structure, and (B) all materials of any kind (including opinions or other tax analyses) that are provided to the Borrower, the Administrative Agent or such Lender relating to such tax treatment or tax structure. For the avoidance of doubt, nothing herein prohibits any individual from communicating or disclosing information regarding suspected violations of laws, rules or regulations to a governmental, regulatory or self-regulatory authority without any notification to any Person.

**Section 12.12 <u>Interest Rate Limitation</u>**. It is the intention of the parties hereto that each Lender shall conform strictly to usury laws applicable to it. Accordingly, if the transactions contemplated hereby would be usurious as to any Lender under laws applicable to it (including the laws of the United States of America and the State of New York or any other jurisdiction whose laws may be mandatorily applicable to such Lender notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any agreement entered into in connection with or as security for the Loans, it is agreed as follows: (a) the aggregate of all consideration which constitutes interest under law applicable to any Lender that is contracted for, taken, reserved, charged or received by such Lender under any of the Loan Documents or agreements or otherwise in connection with the Loans shall under no circumstances exceed the maximum amount allowed by such applicable law, and any

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excess shall be canceled automatically and if theretofore paid shall be credited by such Lender on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Lender to the Borrower); and (b) in the event that the maturity of the Loans is accelerated by reason of an election of the holder thereof resulting from any Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to any Lender may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise shall be canceled automatically by such Lender as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such Lender on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Lender to the Borrower). All sums paid or agreed to be paid to any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted by law applicable to such Lender, be amortized, prorated, allocated and spread throughout the stated term of the Loans evidenced by the Loan Documents until payment in full so that the rate or amount of interest on account of any Loans hereunder does not exceed the maximum amount allowed by such applicable law. If at any time and from time to time (i) the amount of interest payable to any Lender on any date shall be computed at the Highest Lawful Rate applicable to such Lender pursuant to this <u>Section</u> <u>12.12</u> and (ii) in respect of any subsequent interest computation period the amount of interest otherwise payable to such Lender would be less than the amount of interest payable to such Lender computed at the Highest Lawful Rate applicable to such Lender, then the amount of interest payable to such Lender in respect of such subsequent interest computation period shall continue to be computed at the Highest Lawful Rate applicable to such Lender until the total amount of interest payable to such Lender shall equal the total amount of interest which would have been payable to such Lender if the total amount of interest had been computed without giving effect to this <u>Section</u> <u>12.12</u>.

**Section 12.13 <u>Exculpation Provisions</u>**. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT "CONSPICUOUS."

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**Section 12.14 <u>Collateral Matters; Swap Agreements; Action by Secured Parties</u>**. The benefit of the Security Instruments and of the provisions of this Agreement relating to any Collateral securing the Obligations shall also extend to and be available to Secured Swap Parties and Secured Cash Management Providers on a pro rata basis (but subject to the terms of the Loan Documents, including, without limitation, provisions thereof relating to the application and priority of payments to the Persons entitled thereto) in respect of Secured Swap Obligations and Secured Cash Management Obligations. Except as provided in Section <u>12.02(b)</u>, no Secured Swap Party or Secured Cash Management Provider shall have any voting rights under any Loan Document as a result of the existence of any Secured Swap Obligation or Secured Cash Management Obligation owed to it.

**Section 12.15 <u>No Third Party Beneficiaries</u>**. This Agreement, the other Loan Documents, and the agreement of the Lenders to make Loans and the Issuing Bank to issue, amend, renew or extend Letters of Credit hereunder are solely for the benefit of the Borrower, and no other Person (including, without limitation, the Parent, the General Partner or any Subsidiary of the Borrower, any obligor, contractor, subcontractor, supplier or materialsman) shall have any rights, claims, remedies or privileges hereunder or under any other Loan Document against the Administrative Agent, any other Agent, the Issuing Bank or any Lender for any reason whatsoever. There are no third party beneficiaries other than to the extent contemplated by the last sentence of <u>Section</u> <u>12.04(a)</u>, Persons indemnified hereunder and other Secured Parties not party hereto.

**Section 12.16 <u>USA Patriot Act Notice</u><u>; Anti-Money Laundering Laws</u>**. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Patriot Act") or any other Anti-Money Laundering Laws, it is required to (i) obtain, verify and record information that identifies the Credit Parties, which information includes the name and address of the Credit Parties and other information that will allow such Lender to identify the Credit Parties in accordance with the Patriot Act or such Anti-Money Laundering Laws and (ii) obtain Beneficial Ownership Certification in relation to the Borrower to the extent that it qualifies as a "legal entity customer" under the Beneficial Ownership Regulation.

**Section 12.17 <u>No Advisory or Fiduciary Responsibility</u>**. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each of the Parent, the General Partner and the Borrower acknowledges and agrees, and acknowledges its Subsidiaries' understanding, that: (a)(i) no fiduciary, advisory or agency relationship between the Parent, the General Partner, the Borrower and its Subsidiaries and the Administrative Agent or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Administrative Agent or any Lender has advised or is advising the Parent, the General Partner, the Borrower or any Subsidiary on other matters; (ii) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders are arm's-length commercial transactions between the Parent, the General Partner, the Borrower and its Subsidiaries, on the one hand, and the Administrative Agent and the Lenders, on the other hand; (iii) each of the Parent, the General Partner and the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate; and (iv) each of the Parent, the General Partner and the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby

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and by the other Loan Documents; and (b)(i) the Administrative Agent and the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Parent, the General Partner, the Borrower or any of its Subsidiaries, or any other Person; (ii) neither the Administrative Agent nor the Lenders has any obligation to the Parent, the General Partner, the Borrower or any of its Subsidiaries with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Lenders and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Parent, the General Partner, the Borrower and its Subsidiaries, and neither the Administrative Agent nor the Lenders has any obligation to disclose any of such interests to the Parent, the General Partner, the Borrower or its Subsidiaries. To the fullest extent permitted by Law, each of the Parent, the General Partner and the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

**Section 12.18 <u>Acknowledgement and Consent to Bail-In of</u> <u>Affected Financial Institution</u>**. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Section 12.19 <u>Acknowledgement Regarding Any Supported QFCs</u>**. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Agreement or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>", and each such QFC, a "<u>Supported QFC</u>"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit

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Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U<u>.S.</u> <u>Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered Party</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As used in this <u>Section</u> <u>12.19</u>, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Covered Entity</u>" means any of the following: (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Default Right</u>" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>QFC</u>" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

**Section 12.20 <u>Intercreditor Agreement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **EACH LENDER HEREBY (I) INSTRUCTS AND AUTHORIZES THE ADMINISTRATIVE AGENT TO EXECUTE AND DELIVER THE SECOND LIEN INTERCREDITOR AGREEMENT ON ITS BEHALF, (II) AUTHORIZES AND DIRECTS THE ADMINISTRATIVE AGENT TO EXERCISE ALL OF THE ADMINISTRATIVE** 

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 **AGENT'S RIGHTS AND TO COMPLY WITH ALL OF ITS OBLIGATIONS UNDER THE SECOND LIEN INTERCREDITOR AGREEMENT, (III) AGREES THAT THE ADMINISTRATIVE AGENT MAY TAKE ACTIONS ON ITS BEHALF AS IS CONTEMPLATED BY THE TERMS OF THE SECOND LIEN INTERCREDITOR AGREEMENT, AND (IV) UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT AT ALL TIMES FOLLOWING THE EXECUTION AND DELIVERY OF THE SECOND LIEN INTERCREDITOR AGREEMENT SUCH LENDER (AND EACH OF ITS SUCCESSORS AND ASSIGNS) SHALL BE BOUND BY THE TERMS THEREOF.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **EACH LENDER ACKNOWLEDGES THAT IT HAS REVIEWED AND IS SATISFIED WITH THE TERMS AND PROVISIONS OF THE SECOND LIEN INTERCREDITOR AGREEMENT AND ACKNOWLEDGES AND AGREES THAT SUCH LENDER IS RESPONSIBLE FOR MAKING ITS OWN ANALYSIS AND REVIEW OF THE SECOND LIEN INTERCREDITOR AGREEMENT AND THE TERMS AND PROVISIONS THEREOF, AND NO AGENT OR ANY OF ITS AFFILIATES MAKES ANY REPRESENTATION TO ANY LENDER AS TO THE SUFFICIENCY OR ADVISABILITY OF THE PROVISIONS CONTAINED IN THE SECOND LIEN INTERCREDITOR AGREEMENT.**

**Section 12.21 <u>Amendment and Restatement of Existing Credit Agreement</u>**. As of the date hereof, the Existing Credit Agreement shall be amended and restated in its entirety as set forth herein. This Agreement has been given in renewal, extension, rearrangement and increase, and not in extinguishment of the obligations under the Existing Credit Agreement and other documents related thereto. This Agreement does not constitute a novation of the obligations and liabilities under the Existing Credit Agreement or evidence repayment of any such obligations and liabilities. Without limitation of any of the foregoing, (a) this Agreement shall not in any way release or impair the rights, duties, Obligations (as defined in the Existing Credit Agreement) or Liens (as defined in the Existing Credit Agreement) created pursuant to the Existing Credit Agreement or any other Loan Document (as defined in the Existing Credit Agreement) or affect the relative priorities thereof, in each case to the extent in force and effect thereunder as of the date hereof and except as modified hereby or by documents, instruments and agreements executed and delivered in connection herewith, and all of such rights, duties, Obligations and Liens are assumed, ratified and affirmed by the Borrower and each of the Guarantors; (b) all indemnification obligations of the Borrower under the Existing Credit Agreement and any other Loan Documents (as defined in the Existing Credit Agreement) shall survive the execution and delivery of this Agreement and shall continue in full force and effect for the benefit of the Lenders, the Administrative Agent, the Issuing Bank, the Arrangers, and any other Person indemnified under the Existing Credit Agreement or any other Loan Document (as defined in the Existing Credit Agreement) at any time prior to the date hereof; (c) the Obligations incurred under the Existing Credit Agreement shall, to the extent outstanding on the date hereof, continue outstanding under this Agreement and shall not be deemed to be paid, released, discharged or otherwise satisfied by the execution of this Agreement, and this Agreement shall not constitute a refinancing, substitution or novation of such Obligations or any of the other rights, duties and obligations of the parties hereunder, and the terms "Obligations" or similar terms as such terms are used in the Loan Documents shall include the Obligations as increased, amended and restated under this Agreement; (d) the execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the Lenders or the Administrative Agent or the Issuing Bank (as defined therein) under the Existing

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Credit Agreement, nor constitute a waiver of any covenant, agreement, default or obligation under the Existing Credit Agreement, except to the extent that any such covenant, agreement, default or obligation is no longer set forth herein or is modified hereby; (e) any and all references to the Existing Credit Agreement in any Loan Document shall, without further action of the parties, be deemed a reference to the Existing Credit Agreement, as amended and restated by this Agreement, and as this Agreement shall be further amended, restated, supplemented or otherwise modified from time to time, and any and all references to the Loan Documents in any other Loan Documents shall be deemed a reference to the Loan Documents under the Existing Credit Agreement, as amended and restated by this Agreement, and as this Agreement shall be further amended, restated, supplemented or otherwise modified from time to time.

[SIGNATURES BEGIN NEXT PAGE]

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The parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BORROWER: | **WHITEHAWK INCOME OPERATING PARTNERSHIP L.P.**, a Delaware limited partnership | **WHITEHAWK INCOME OPERATING PARTNERSHIP L.P.**, a Delaware limited partnership |
|  | By: WhiteHawk Income OP GP LLC, its general partner | By: WhiteHawk Income OP GP LLC, its general partner |
|  | By: | /s/ Jeffrey Slotterback |
|  | Name: | Jeffrey Slotterback |
|  | Title: | Chief Financial Officer and Secretary |
| PARENT: | **WHITEHAWK INCOME CORPORATION**, a Delaware corporation | **WHITEHAWK INCOME CORPORATION**, a Delaware corporation |
|  | By: | /s/ Jeffrey Slotterback |
|  | Name: | Jeffrey Slotterback |
|  | Title: | Chief Financial Officer and Secretary |
| GENERAL PARTNER: | **WHITEHAWK INCOME OP GP LLC**, a Delaware limited liability company | **WHITEHAWK INCOME OP GP LLC**, a Delaware limited liability company |
|  | By: | /s/ Jeffrey Slotterback |
|  | Name: | Jeffrey Slotterback |
|  | Title: | Chief Financial Officer and Secretary |

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[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT]

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| | | |
|:---|:---|:---|
| ADMINISTRATIVE AGENT, ISSUING BANK AND A LENDER: | **CAPITAL ONE, NATIONAL ASSOCIATION**, as Administrative Agent, Issuing Bank and a Lender | **CAPITAL ONE, NATIONAL ASSOCIATION**, as Administrative Agent, Issuing Bank and a Lender |
|  | By: | /s/ David Garza |
|  | Name: | David Garza |
|  | Title: | Director |

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[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT]

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| | | |
|:---|:---|:---|
| LENDER: | **U.S. BANK NATIONAL ASSOCIATION**, as a Lender | **U.S. BANK NATIONAL ASSOCIATION**, as a Lender |
|  | By:<br> Name:<br> Title: | /s/ Elizabeth Johnson<br> Beth Johnson<br> Senior Vice President |

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[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT]

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**Annex I** 

**LIST OF MAXIMUM CREDIT AMOUNTS AND ELECTED COMMITMENTS** 

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| | | | |
|:---|:---|:---|:---|
| **Name of Lender** | **Applicable<br>Percentage** | **Elected<br>Commitment** | **Maximum**<br>**Credit Amount** |
|  Capital One, National Association | 50.000000000% | $75000000.00 | $250000000.00 |
|  U.S. Bank National Association | 50.000000000% | $75000000.00 | $250000000.00 |
|  **TOTAL** | **100.000000000%** | $**150000000.00** | $**500000000.00** |

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**EXHIBIT A** 

**FORM OF NOTE** 

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| | |
|:---|:---|
| $[ ] | [ ], 20[ ] |

---

FOR VALUE RECEIVED, WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership (the "Borrower"), hereby promises to pay to [ ] (the "Lender"), at the principal office of CAPITAL ONE, NATIONAL ASSOCIATION, as administrative agent (together with its successors or assigns, the "Administrative Agent"), the principal sum of [ ] Dollars ($[ ]) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the Lender to the Borrower under the Credit Agreement, as hereinafter defined), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.

The date, amount, Type, interest rate, and, if applicable, Interest Period of each Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books. Failure to make any such recordation shall not affect any Lender's or the Borrower's rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of this Note pursuant to <u>Section</u> <u>12.04</u> of the Credit Agreement.

This Note is one of the Notes referred to in the Amended and Restated Credit Agreement dated as of May 25, 2026, among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Administrative Agent, and the lenders (including the Lender) and other agents from time to time party thereto, and evidences Loans made by the Lender thereunder (such Credit Agreement as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Credit Agreement"). Capitalized terms used but not defined in this Note have the respective meanings assigned to them in the Credit Agreement.

This Note is issued pursuant to, and is subject to the terms and conditions set forth in, the Credit Agreement and is entitled to the benefits provided for in the Credit Agreement and the other Loan Documents. The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events, for prepayments of Loans upon the terms and conditions specified therein and other provisions relevant to this Note.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[Signature page follows]

WHITEHAWK INCOME OPERATING <br> PARTNERSHIP L.P., a Delaware limited partnership

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| |
|:---|
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

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**EXHIBIT B** 

**FORM OF BORROWING REQUEST** 

[ ], 20[ ]<sup>1</sup>

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), pursuant to <u>Section</u> <u>2.03</u> of the Amended and Restated Credit Agreement dated as of May 25, 2026 (together with all amendments, restatements, amendments and restatements, supplements or other modifications thereto, the "<u>Credit Agreement</u>"), among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, and the lenders (the "<u>Lenders</u>") and other agents which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement), hereby requests a Borrowing as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Aggregate amount of the requested Borrowing is $[ ]<sup>2</sup>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Date of such Borrowing is [ ], 20[ ];<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Requested Borrowing is to be [an ABR Borrowing] [a SOFR Borrowing]<sup>4</sup>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the case of a SOFR Borrowing, the initial Interest Period applicable thereto is [ ]<sup>5</sup><sup>6</sup>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Amount of Borrowing Base in effect on the date hereof is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The amount of the Aggregate Elected Commitment Amounts in effect on the date hereof is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Total Revolving Credit Exposures on the date hereof (i.e., outstanding principal amount of Loans and total LC Exposure) is $[ ];

<sup>1</sup> For a SOFR Borrowing, the Borrowing Request must be delivered no later than 12:00 noon, Houston, Texas time, three U.S. Government Securities Business Days before the date of the proposed Borrowing. For an ABR Borrowing, the Borrowing Request must be delivered no later than 12:00 noon, Houston, Texas time, on the date of the proposed Borrowing. 

<sup>2</sup> At the commencement of each Interest Period for any SOFR Borrowing, such Borrowing shall be in integral multiples of $100,000 and not less than $500,000. Each ABR Borrowing shall be in integral multiples of $100,000 and not less than $500,000, *provided* that an ABR Borrowing may be in an aggregate amount that is equal to the entire Unused Availability or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.08(e) of the Credit Agreement. 

<sup>3</sup> Must be a Business Day.

<sup>4</sup> If no Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing.

<sup>5</sup> This shall be a period contemplated by the definition of the term "Interest Period" in the Credit Agreement. As of the Effective Date, that is one, three or six months.

<sup>6</sup> If no Interest Period is specified, then the Borrower shall be deemed to have selected an Interest Period of one month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) *Pro forma* Total Revolving Credit Exposures (giving effect to the requested Borrowing) is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Consolidated Cash Balance (without regard to the requested Borrowing) is $[ ] and the pro forma Consolidated Cash Balance (giving effect to the requested Borrowing<sup>7</sup>) is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of <u>Section</u> <u>2.05</u> of the Credit Agreement, is as follows:

[ ]

[ ]

[ ]

[ ]

[ ]

The undersigned certifies that he/she is the [ ] of the General Partner, and that as such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned further certifies, represents, and warrants on behalf of the Borrower (and not individually) that the Borrower is entitled to receive the requested Borrowing under the terms and conditions of the Credit Agreement.<sup>8</sup>

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| |
|:---|
| WHITEHAWK INCOME OPERATING |
| PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

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<sup>7</sup> Must identify in reasonable detail any amounts to be excluded from Consolidated Cash Balance pursuant to clauses (ii) and (iv) of the definition of Consolidated Cash Balance. 

<sup>8</sup> Each Borrowing Request shall constitute a representation by the Borrower that (a) the amount of the requested Borrowing shall not cause the Total Revolving Credit Exposures to exceed the Loan Limit and (b) after giving *pro forma* effect to such requested Borrowing and the use of proceeds thereof, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold. 

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**EXHIBIT C** 

**FORM OF INTEREST ELECTION REQUEST** 

[ ], 20[ ]<sup>9</sup>

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), pursuant to <u>Section</u> <u>2.04</u> of the Amended and Restated Credit Agreement dated as of May 25, 2026 (together with all amendments, restatements, amendments and restatements, supplements or other modifications thereto, the "<u>Credit Agreement</u>"), among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, and the lenders (the "<u>Lenders</u>") and other agents which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement), hereby makes an Interest Election Request as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrowing to which this Interest Election Request applies, and if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information specified pursuant to (iii) and (iv) below shall be specified for each resulting Borrowing) are [ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The effective date of the election made pursuant to this Interest Election Request is [ ], 20[<u> </u>]<sup>10</sup>;[and]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The resulting Borrowing is to be [an ABR Borrowing] [a SOFR Borrowing][; and]

[(iv) [If the resulting Borrowing is a SOFR Borrowing] The Interest Period applicable to the resulting Borrowing after giving effect to such election is [ ] <sup>11</sup><sup>12</sup>].

The undersigned certifies, represents, and warrants on behalf of the Borrower (and not individually) that (a) he/she is the [ ] of the General Partner, and that as such he/she is authorized to execute this Interest Election Request on behalf of the Borrower and (b) that the Borrower is entitled to receive the requested continuation or conversion under the terms and conditions of the Credit Agreement.

<sup>9</sup> If the Interest Election Request is for the continuation of a SOFR Borrowing or a conversion to a SOFR Borrowing, the Interest Election Request must be delivered no later than 12:00 noon, Houston, Texas time, 3 U.S. Government Securities Business Days before the date of the proposed continuation or conversion. If the Interest Election Request is for the continuation of an ABR Borrowing or a conversion to an ABR Borrowing, the Interest Election Request must be delivered no later than 12:00 noon., Houston, Texas time, on the date of the proposed continuation or conversion. 

<sup>10</sup> Must be a Business Day.

<sup>11</sup> This shall be a period contemplated by the definition of the term "Interest Period" in the Credit Agreement. As of the Effective Date, that is one, three or six months.

<sup>12</sup> If no Interest Period is specified, then the Borrower shall be deemed to have selected an Interest Period of one month.

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| |
|:---|
| WHITEHAWK INCOME OPERATING |
| PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

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**EXHIBIT D** 

**FORM OF COMPLIANCE CERTIFICATE** 

The undersigned hereby certifies that he/she is the [ ] of WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), and that as such he/she is authorized to execute this certificate on behalf of the Borrower. With reference to the Amended and Restated Credit Agreement dated as of May 25, 2026 (together with all amendments, restatements, amendments and restatements, supplements or other modifications thereto being the "<u>Credit Agreement</u>"), among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, and the lenders (the "<u>Lenders</u>") and other agents which are or become a party thereto, the undersigned represents and warrants (solely in his/her capacity as an officer of the Borrower and not in any personal capacity) to the Administrative Agent and the Lenders as follows (each capitalized term used herein having the same meaning given to it in the Credit Agreement unless otherwise specified):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The financial statements for the [fiscal year/fiscal quarter] ended [ , 20 ], delivered with this certificate in accordance with <u>Section [8.01(a)/8.01(b)]</u> of the Credit Agreement fairly present in all material respects the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied[, subject to normal year-end audit adjustments and the absence of footnotes].<sup>13</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There exists no Default or Event of Default [or specify Default or Event of Default and describe the details thereof and any action taken or proposed to be taken with respect thereto].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Attached hereto are the reasonably detailed computations necessary to determine whether the Borrower is in compliance with <u>Section</u> <u>9.01</u> of the Credit Agreement as of the end of the [fiscal quarter][fiscal year] ending [ ].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [The Borrower hereby elects to exercise its cure right under Section 9.01(c) with respect to the fiscal quarter ending [ ]. The Cure Amount is $[ ], which has been added to [EBITDAX][consolidated current assets] for purposes of calculating compliance with [Section 9.01(a)][Section 9.01(b)] for said fiscal quarter.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No change in GAAP or in the application thereof has occurred since the Effective Date [or if any such change has occurred, specifying the effect of such change on the financial statements accompanying this certificate].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Attached hereto is a list identifying each of the Restricted Subsidiaries, which list specifies whether such Restricted Subsidiary is or is not a Guarantor (and (A) specifying the identity of each Immaterial Subsidiary and each Material Subsidiary as of the end of such fiscal quarter or fiscal year, as applicable (and including reasonable detail, in form and substance

<sup>13</sup> Insert bracketed phrase when financial statements delivered with this Compliance Certificate are delivered pursuant to Section 8.01(b) of the Credit Agreement.

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satisfactory to the Administrative Agent, with respect thereto) and (B) if necessary, designating sufficient additional Subsidiaries as Material Subsidiaries so as to comply with the definition of "Material Subsidiary").

EXECUTED AND DELIVERED this [ ] day of [ ], 20[<u> </u>].

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| |
|:---|
| WHITEHAWK INCOME OPERATING |
| PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |
| WHITEHAWK INCOME CORPORATION, a |
| Delaware corporation |
| By: |
| Name: |
| Title: |

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**EXHIBIT E** 

**[RESERVED]** 

[attached]

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**EXHIBIT F** 

**[RESERVED]** 

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**EXHIBIT G** 

**SECURITY INSTRUMENTS** 

1. The Guarantee and Collateral Agreement.

2. UCC-1 Financing Statements in respect of item #1.

3. The Mortgages.

4. UCC-1 Financing Statements in respect of item #3.

5. The Control Agreements.

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**EXHIBIT H** 

**FORM OF ASSIGNMENT AND ASSUMPTION** 

This Assignment and Assumption (the "<u>Assignment and Assumption</u>") is dated as of the Effective Date set forth below and is entered into by and between [*Insert name of Assignor*] (the "<u>Assignor</u>") and [*Insert name of Assignee*] (the "<u>Assignee</u>"). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in <u>Annex 1</u> attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the "<u>Assigned Interest</u>"). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

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| | | |
|:---|:---|:---|
| 1. | Assignor: |  |
| 2. | Assignee: |  |
|  |  | [and is an Affiliate/Approved Fund of [*identify Lender*]<sup>14</sup>] |
| 3. | Borrower: | WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership |
| 4. | Administrative Agent: | Capital One, National Association, as the administrative agent under the Credit Agreement |

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<sup>14</sup> Select as applicable.

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5. Credit Agreement: The Amended and Restated Credit Agreement dated as of May 25, 2026, among WhiteHawk Income Operating
Partnership L.P., a Delaware limited partnership, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Lenders party thereto, Capital One, National Association, as Administrative
Agent, and the other agents party thereto

6. Assigned Interest:

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| |
|:---|
| Maximum Credit Amount Assigned<sup>15</sup> |
| % |
| % |
| % |

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Effective Date: ______________, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

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| |
|:---|
| <u>ASSIGNOR</u> |
| [NAME OF ASSIGNOR] |
| By: |
| Name: |
| Title: |
| <u>ASSIGNEE</u> |
| [NAME OF ASSIGNEE] |
| By: |
| Name: |
| Title: |

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<sup>15</sup> Except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender's Commitment or Loans, the amount of the Commitment or Loans subject to such assignment shall not be less than $2,500,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing. 

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| |
|:---|
| [Consented to and]<sup>16</sup> Accepted: |
| CAPITAL ONE, NATIONAL ASSOCIATION as Administrative Agent |
| By: |
| Name: |
| Title: |
| [Consented to:]<sup>17</sup> |
| [NAME OF RELEVANT PARTY] |
| By: |
| Name: |
| Title: |

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<sup>16</sup> To be added only if the consent of the Administrative Agent is required by Section 12.04(b) of the Credit Agreement.

<sup>17</sup> To be added only if the consent of the Borrower and/or other parties (*e.g.*, Issuing Bank) is required by Section 12.04(b) of the Credit Agreement.

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ANNEX 1

**STANDARD TERMS AND CONDITIONS FOR** 

**ASSIGNMENT AND ASSUMPTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Assignor</u>. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Assignee</u>. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 8.01(a) or Section 8.01(b) thereof<u>,</u> as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payments</u>. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and

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other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>General Provisions</u>. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by facsimile or other electronic transmission (*e.g.*,.pdf) shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

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**EXHIBIT I** 

**FORM OF ELECTED COMMITMENT INCREASE CERTIFICATE** 

[__________], 20[ ]

To: Capital One, National Association,

as Administrative Agent

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Administrative Agent and certain Lenders and other agents have heretofore entered into an Amended and Restated Credit Agreement, dated as of May 25, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"). Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement.

This Elected Commitment Increase Certificate is being delivered pursuant to <u>Section</u> <u>2.06(c)(ii)(E)</u> of the Credit Agreement.

Please be advised that the undersigned has agreed (a) to increase its Elected Commitment under the Credit Agreement effective [__________], 20[__] (the "<u>Increase Effective Date</u>") from $[__________] to $[__________] and (b) that it shall continue to be a party in all respects to the Credit Agreement and the other Loan Documents to which it is a party.

With reference to <u>Section</u> <u>2.06(c)(ii)(C)</u> of the Credit Agreement, the Borrower hereby confirms that [Check Applicable Box]:

[ ] There are, or if the Increase Effective Date is after the date hereof, there will be, no SOFR Borrowings outstanding on the Increase Effective Date.

[ ] There are, or if the Increase Effective Date is after the date hereof, there will be, SOFR Borrowings outstanding on the Increase Effective Date and the Borrower will pay any compensation required by <u>Section</u> <u>5.02</u> of the Credit Agreement on the Increase Effective Date. 

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| |
|:---|
| Very truly yours, |
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

------

---

| |
|:---|
| Accepted and Agreed: |
| CAPITAL ONE, NATIONAL ASSOCIATION, as Administrative Agent |
| By: |
| Name: |
| Title: |
| Accepted and Agreed: |
| [Additional Lender] |
| By: |
| Name: |
| Title: |

---

------

**EXHIBIT J** 

**FORM OF ADDITIONAL LENDER CERTIFICATE** 

[ ], 20[ ]

To: Capital One, National Association,

as Administrative Agent

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Administrative Agent and certain Lenders and other agents have heretofore entered into an Amended and Restated Credit Agreement, dated as of May 25, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"). Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement.

This Additional Lender Certificate is being delivered pursuant to <u>Section</u> <u>2.06(c)(ii)(F)</u> of the Credit Agreement.

Please be advised that the undersigned has agreed (a) to become a Lender under the Credit Agreement effective [__________], 20[___] (the "<u>Additional Lender Effective Date</u>") with a Maximum Credit Amount of $[__________] and an Elected Commitment of $[__________] and (b) that it shall be a party in all respects to the Credit Agreement and the other Loan Documents to which it is a party.

This Additional Lender Certificate is being delivered to the Administrative Agent together with (i) if requested by the Additional Lender, an executed Note payable to such Additional Lender (or its registered assigns) in a principal amount equal to its Maximum Credit Amount, (ii) if the Additional Lender is a Foreign Lender, any documentation required to be delivered by such Additional Lender pursuant to Section 5.03(f) of the Credit Agreement, duly completed and executed by the Additional Lender, and (iii) an Administrative Questionnaire in the form supplied by the Administrative Agent, duly completed by the Additional Lender.

With reference to <u>Section</u> <u>2.06(c)(ii)(C)</u> of the Credit Agreement, the Borrower hereby confirms that [Check Applicable Box]:

[ ] There are, or if the Additional Lender Effective Date is after the date hereof, there will be, no SOFR Borrowings outstanding on the Additional Lender Effective Date.

[ ] There are, or if the Additional Lender Effective Date is after the date hereof, there will be, SOFR Borrowings outstanding on the Additional Lender Effective Date and the Borrower will pay any compensation required by <u>Section</u> <u>5.02</u> of the Credit Agreement on the Additional Lender Effective Date. 

[Remainder of page intentionally left blank; signature pages follow.]

------

---

| |
|:---|
| Very truly yours, |
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

------

---

| |
|:---|
| Accepted and Agreed: |
| CAPITAL ONE, NATIONAL ASSOCIATION, as Administrative Agent |
| By: |
| Name: |
| Title: |
| Accepted and Agreed: |
| [Name of Increasing Lender] |
| By: |
| Name: |
| Title: |

---

------

**EXHIBIT K-1** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN LENDERS THAT ARE NOT PARTNERSHIPS FOR U.S. FEDERAL** 

**INCOME TAX PURPOSES)** 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of May 25, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section</u> <u>5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

---

| |
|:---|
| [NAME OF LENDER] |
| By: |
| Name: |
| Title: |

---

Date: ________ __, 20[ ]

------

**EXHIBIT K-2** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN PARTICIPANTS THAT ARE NOT PARTNERSHIPS FOR** 

**U.S. FEDERAL INCOME TAX PURPOSES)** 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of May 25, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section</u> <u>5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

---

| |
|:---|
| [NAME OF PARTICIPANT] |
| By: |
| Name: |
| Title: |

---

Date: ________ __, 20[ ]

------

**EXHIBIT K-3** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN PARTICIPANTS THAT ARE PARTNERSHIPS FOR U.S. FEDERAL** 

**INCOME TAX PURPOSES)** 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of May 25, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section</u> <u>5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

---

| |
|:---|
| [NAME OF PARTICIPANT] |
| By: |
| Name: |
| Title: |
| <br> Date: ________ __, 20[ ] |

---

------

**EXHIBIT K-4** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN LENDERS THAT ARE PARTNERSHIPS FOR U.S. FEDERAL** 

**INCOME TAX PURPOSES)** 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of May 25, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section</u> <u>5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

---

| |
|:---|
| [NAME OF LENDER] |
| By: |
| Name: |

---

------

Title: <br> Date: ________ __, 20[ ]

------

**EXHIBIT L** 

**[RESERVED]** 

------

**EXHIBIT M** 

**FORM OF EFFECTIVE DATE SOLVENCY CERTIFICATE** 

SOLVENCY CERTIFICATE

[ ⚫ ], 2026

This Solvency Certificate (this "<u>Certificate</u>") is delivered pursuant to [<u>Section</u> <u>6.01(g)][Section 6.02(r)]</u> of the Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>") dated as of the date hereof among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as the Administrative Agent, and the Lenders parties thereto. Unless otherwise defined herein, capitalized terms used in this Certificate shall have the meanings set forth in the Credit Agreement.

I, [_______], solely in my capacity as the [______________] of the General Partner, do hereby certify to the Administrative Agent and the Lenders on behalf of the Borrower that as of the date hereof, after giving effect to the consummation of the Transactions contemplated by the Credit Agreement and the Borrowings made and the issuance of any Letters of Credit under the Credit Agreement (a) the Borrower is Solvent and (b) the Parent, the General Partner, the Borrower and the other Credit Parties, on a consolidated basis, are Solvent.

For purposes hereof, the term "Solvent" with respect to any Person(s) as of any date, that (a) the aggregate value of the assets of such Person(s) (after giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) (both at fair value and present fair saleable value) is, on the date of determination, greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person(s) as of such date, (b) as of such date, such Person(s) is able to pay all liabilities (after taking into account the timing and amounts of cash it reasonably expects could be received and the amounts that it reasonably expects could be payable on or in respect of its liabilities, and giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) of such Person(s) as such liabilities mature, and (c) as of such date, such Person(s) does not have unreasonably small capital given the nature of its business. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

[Signature Page Follows]

------

**IN WITNESS WHEREOF**, I have executed this certificate as of the date first written above.

---

| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

------

**EXHIBIT N** 

**FORM OF RESERVE REPORT CERTIFICATE** 

This Reserve Report Certificate (this "<u>Certificate</u>"), dated as of [_______], 20[__], relates to the Reserve Report dated as of [January 1][July 1], 20[ ] [other date in the event of an Interim Redetermination] (the "<u>Subject Reserve Report</u>"), delivered pursuant to <u>Section</u> <u>8.11 [(a)] [(b)</u>] of that certain Amended and Restated Credit Agreement dated as of May 25, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), by and among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the lenders from time to time party thereto (the "<u>Lenders</u>"), and Capital One, National Association, as Administrative Agent. Each capitalized term used herein has the same meaning given to it in the Credit Agreement unless otherwise specified. The undersigned certifies he/she is a Responsible Officer of the Borrower and, on behalf of the Borrower, in his/her capacity as a Responsible Officer of the Borrower and not in his/her individual capacity, certifies that in all material respects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the information contained in the Subject Reserve Report and any other information delivered in connection herewith is true and correct, it being understood by the Administrative Agent and the Lenders that projections concerning volumes and production and cost estimates contained in the Subject Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Borrower nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower or another Credit Party has good and defensible title to the Oil and Gas Properties evaluated in the Subject Reserve Report (other than those (x) to be acquired in connection with an acquisition, (y) disposed of since the date of the Subject Reserve Report as permitted in accordance with the terms of the Credit Agreement and (z) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free (or will be at the time of the acquisition thereof) of all Liens except for Liens permitted by <u>Section</u> <u>9.03</u> of the Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent the Credit Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except as set forth on <u>Annex I</u> hereto or previously disclosed to the Administrative Agent in writing, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the dollar threshold specified in Section 7.16 of the Credit Agreement, with respect to the Credit Parties' Oil and Gas Properties evaluated in the Subject Reserve Report delivered herewith which would require the Borrower or any other Credit Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Borrowing Base Properties have been sold since the date of the last Borrowing Base determination except (x) those Borrowing Base Properties listed on <u>Annex II</u> hereto and (y) as previously disclosed to the Administrative Agent in writing;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Annex III</u> sets forth a list of all material marketing agreements (which are not cancellable on 120 days' notice or less without penalty or detriment) entered into subsequent to the later of the Effective Date or the most recently delivered Reserve Report which the Borrower could reasonably be expected to have been obligated to list on <u>Schedule</u> <u>7.17</u> to the Credit Agreement had such agreement been in effect on the Effective Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Annex IV</u> sets forth a schedule demonstrating [compliance][noncompliance] (calculated at the time of delivery of this Certificate) with the Collateral Coverage Minimum [and the steps that will be taken to comply with this Collateral Coverage Minimum<u>]</u>.<sup>18</sup>

[Remainder of page intentionally left blank; signature page follows]

<sup>18</sup> Language added if non-compliant.

------

EXECUTED AND DELIVERED as of the date first set forth above.

---

| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

------

**ANNEX I** 

------

**ANNEX II** 

------

**ANNEX III** 

------

**ANNEX IV** 

------

**<u>Schedule 1.02</u>**

**<u>Citadel Permitted Existing Confirmations</u>**

**As of Signing Date:** 

*See attached.* 

**As of Effective Date:** 

[•]<sup>19</sup>

<sup>19</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement. 

------

**<u>Schedule 7.05</u>**

**<u>Litigation</u>**

**As of Signing Date:** 

None.

**As of Effective Date:** 

[•]<sup>20</sup>

<sup>20</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement. 

------

**<u>Schedule 7.13</u>**

**<u>Subsidiaries</u>**

**As of Signing Date:** 

<u>Restricted Subsidiaries:</u> 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Restricted Subsidiaries** | **Jurisdiction of<br>Organization** | **Organizational<br>Identification<br>Number** | **Principal Place of**<br> **Business and Chief**<br> **Executive Office** | **Equity Interest<br>Holder** | **Percentage of<br>Ownership** |
| WhiteHawk Income<br> Marcellus LLC | Delaware | 6689416 | 2000 Market Street,<br> Suite 910<br> Philadelphia, PA 19103 | WhiteHawk Income Operating<br> Partnership L.P. | 100% |
| WhiteHawk<br> Acquisition, LLC | Delaware | 10185707 | 2000 Market Street,<br> Suite 910<br> Philadelphia, PA 19103 | WhiteHawk Income Operating<br> Partnership L.P. | 100% |
| WhiteHawk Income<br> Haynesville LLC | Delaware | 7234362 | 2000 Market Street,<br> Suite 910<br> Philadelphia, PA 19103 | WhiteHawk Income Operating<br> Partnership L.P. | 100% |
| WhiteHawk VF<br> LLC | Delaware | 10419004 | 2000 Market Street,<br> Suite 910<br> Philadelphia, PA 19103 | WhiteHawk Income Operating<br> Partnership L.P. | 100% |
| PHX Minerals LLC | Delaware | 6536877 | 2000 Market Street,<br> Suite 910<br> Philadelphia, PA 19103 | WhiteHawk<br> Acquisition, LLC | 100% |

---

<u>Unrestricted Subsidiaries:</u> 

None.

**As of Effective Date:** 

[•]<sup>21</sup>

<sup>21</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement. 

------

**<u>Schedule 7.16</u>**

**<u>Gas Imbalances</u>**

**As of Signing Date:** 

None.

**As of Effective Date:** 

[•]<sup>22</sup>

<sup>22</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement. 

------

**<u>Schedule 7.17</u>**

**<u>Marketing Contracts</u>**

**As of Signing Date:** 

None.

**As of Effective Date:** 

[•]<sup>23</sup>

<sup>23</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement. 

------

**<u>Schedule 7.18</u>**

**<u>Citadel Permitted Existing Trades</u>**

**As of Signing Date:** 

None.

**As of Effective Date:** 

[•]<sup>24</sup>

<sup>24</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement. 

------

**<u>Schedule 9.02</u>**

**<u>Existing Debt</u>**

**As of Signing Date:** 

None.

**As of Effective Date:** 

[•]<sup>25</sup>

<sup>25</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement. 

------

**<u>Schedule 9.05</u>**

**<u>Investments</u>**

**As of Signing Date:** 

None.

**As of Effective Date:** 

[•]<sup>26</sup>

<sup>26</sup> **<u>NTD:</u>** To be updated pursuant to Section 6.02(t) of the Credit Agreement.

## Exhibit 10.20

**Exhibit 10.20** 

**<u>EMPLOYMENT AGREEMENT</u>**

**EMPLOYMENT AGREEMENT** (this "<u>Agreement</u>") dated as of [ • ], 2026, between WhiteHawk Minerals Corp., a Delaware incorporated company ("<u>PubCo</u>"), WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership ("<u>OpCo</u>" and together with PubCo and any subsidiaries or affiliates as may employ Executive from time to time, the "<u>Company</u>"), and Jeffrey Slotterback (the "<u>Executive</u>").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>

**WHEREAS**, the Company desires to employ the Executive as Chief Financial Officer, Treasurer and Secretary of the Company; and

**WHEREAS**, the Company and the Executive desire to enter into this Agreement as to the terms of the Executive's employment with the Company.

**NOW, THEREFORE**, in consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. POSITION AND DUTIES**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Employment Term (as defined in <u>Section</u> <u>2</u> hereof), the Executive shall serve as the Chief Financial Officer, Treasurer and Secretary of the Company. In this capacity, the Executive shall have the duties, authorities and functions commensurate with the duties, authorities and functions of persons holding such titles in similarly-sized companies. The Executive's principal place of employment with the Company shall be in Philadelphia, Pennsylvania, <u>provided</u> that the Executive understands and agrees that the Executive may be required to travel from time to time for business purposes. The Executive shall report directly to the Chief Executive Officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Employment Term, the Executive shall devote substantially all business time, energy, business judgment, knowledge and skill and the Executive's best efforts to the performance of the Executive's duties with the Company, <u>provided</u> that the foregoing shall not prevent the Executive from (i) serving on the boards of directors of non-profit organizations and, with the prior written approval of the Board of Directors (the "Board") of PubCo, other for-profit companies, (ii) participating in charitable, civic, educational, professional, community or industry activities, (iii) managing the Executive's personal investments and (iv) pursuing, investing in, acquiring, or otherwise participating in any Declined Opportunity or Outside Opportunity in accordance with <u>Section</u> <u>26</u> of this Agreement (collectively, the "<u>Permitted Activities</u>") so long as such activities in the aggregate do not materially interfere with the Executive's duties hereunder or, other than for a Declined Opportunity, create a business or fiduciary conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. EMPLOYMENT TERM**. The Company agrees to employ the Executive pursuant to the terms of this Agreement, and the Executive agrees to be so employed, for a term commencing as of the date hereof (the "<u>Effective Date</u>") and ending on the third anniversary of the Effective Date (the "<u>Initial Term</u>"). On the third anniversary of the Effective Date and each

------

one-year anniversary of such date thereafter, the term of this Agreement shall be automatically extended for successive one-year periods, <u>provided</u>, <u>however</u>, that either party hereto may elect not to extend this Agreement by giving written notice to the other party at least sixty (60) days prior to any such anniversary date. Notwithstanding the foregoing, the Executive's employment hereunder may be earlier terminated in accordance with <u>Section</u> <u>6</u> hereof, subject to <u>Section</u> <u>7</u> hereof. The period of time between the Effective Date and the termination of the Executive's employment hereunder shall be referred to herein as the "<u>Employment Term</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. BASE SALARY**. The Company agrees to pay the Executive a base salary at an annual rate of not less than $400,000, payable in accordance with the regular payroll practices of the Company, but not less frequently than monthly. The Executive's Base Salary shall be subject to annual review by the Board (or a committee thereof), and may be increased, but not decreased (unless such decrease is part of a company-wide or management-wide reduction), from time to time by the Board. The base salary as determined herein and as may be increased from time to time shall constitute "<u>Base Salary</u>" for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. ANNUAL BONUS**. For each fiscal year of the Company during the Employment Term the Executive shall be eligible to receive an annual bonus (the "<u>Annual Bonus</u>") with a target amount of no less than one hundred percent (100%) of the Executive's Base Salary (the "<u>Target Annual Bonus</u>"), payable in a combination of cash and/or equity awards, as determined by the Board (or authorized committee thereof) in its sole discretion. The value of any equity awards shall be calculated based on the grant date fair value of such awards. The Board (or such authorized committee) shall determine in its sole discretion the amount, form(s) and mix, and such other terms and conditions (including vesting, exercise and settlement) applicable to any such equity award, taking into account the Executive's and the Company's performance; provided, however, that the form(s), mix, terms and conditions shall be reasonably consistent in all material respects as those provided to other senior executives of the Company unless otherwise agreed to by the Executive. Any Annual Bonus for a fiscal year of the Company shall be paid in the next succeeding fiscal year on or before March 15 of such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. EMPLOYEE BENEFITS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **BENEFIT PLANS**. During the Employment Term, the Executive shall be eligible to participate in any employee benefit plan that the Company has adopted or may adopt, maintain or contribute to for the benefit of its employees generally, subject to satisfying the applicable eligibility requirements, except to the extent such plans are duplicative of the benefits otherwise provided hereunder. The Executive's participation will be subject to the terms of the applicable plan documents and generally applicable Company policies in effect from time to time. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **VACATIONS**. During the Employment Term, the Executive shall be entitled to paid vacation in accordance with the plans, policies, programs and practices of the Company applicable to its similarly situated senior executives, as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **BUSINESS EXPENSES**. Upon presentation of reasonable substantiation and documentation as the Company may specify from time to time, the Company shall pay or the

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Executive shall be reimbursed in accordance with the Company's expense reimbursement policy in effect from time to time, for all reasonable out-of-pocket business expenses incurred by the Executive during the Employment Term and in connection with the performance of the Executive's duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. TERMINATION**. The Executive's employment and the Employment Term shall terminate on the first of the following to occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **DISABILITY**. Upon ten (10) days' prior written notice by the Company to the Executive of termination due to Disability. For purposes of this Agreement, "<u>Disability</u>" means, a condition entitling the Executive to receive benefits under a long-term disability plan of the Company or an Affiliate in which such Executive is eligible to participate, or, in the absence of such a plan, a permanent and total disability as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"). A Disability shall only be deemed to occur if the Executive has been unable to perform the Executive's principal duties and responsibilities hereunder for ninety (90) consecutive days or one hundred and twenty (120) days during any period of three hundred and sixty-five (365) consecutive calendar days. Notwithstanding the foregoing, for payments that are subject to Code Section 409A (as defined in <u>Section</u> <u>24</u> hereof), Disability shall mean that the Executive is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **DEATH**. Automatically upon the date of death of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **CAUSE**. Immediately upon written notice by the Company to the Executive of a termination for Cause. "<u>Cause</u>" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Executive's continued and willful failure to substantially perform his duties (other than as a result of Disability), which continues beyond fifteen (15) days after a written demand for substantial performance is delivered by the Board that specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) grossly negligent or illegal conduct, or gross misconduct, by the Executive that is reasonably likely to result in material damage to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Executive's conviction of, or the plea of guilty or nolo contendere or the equivalent in respect to, any felony or a misdemeanor involving an act of dishonesty, moral turpitude, deceit or fraud; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Executive's material breach of any non-competition, non-solicitation, confidentiality, non-disparagement or other restrictive covenant provision relating to the Company, which breach is not cured (if capable of cure) within fifteen (15) days following notice of such breach provided by the Company that specifically identifies the manner in which the Company believes that the Executive breached any such provisions.

In order to terminate the Executive's employment for Cause, the Company must provide the Executive with written notice of its intention to terminate the Executive's employment for Cause

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setting forth in reasonable detail the specific conduct allegedly constituting Cause and the specific provisions of this Agreement on which such claim is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **WITHOUT CAUSE**. Upon thirty (30) days advance written notice by the Company to the Executive of an involuntary termination without Cause (other than for death or Disability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **GOOD REASON**. Upon written notice by the Executive to the Company of a termination for Good Reason. "<u>Good Reason</u>" shall mean the occurrence of any of the following events, without the express written consent of the Executive, unless such events are fully corrected in all material respects by the Company within thirty (30) days following written notification by the Executive to the Company of the occurrence of one of the reasons set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in the Executive's titles, duties or authorities, including (A) a change in the Executive's reporting such that he no longer reports directly to the Chief Executive Officer of the Company and (B) any material diminution in duties and/or authorities such that the Executive no longer has such duties and/or authorities typically associated with the Chief Financial Officer, Treasurer and Secretary of a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution in the Executive's Base Salary (unless such diminution is part of a company-wide or management-wide reduction) or a material diminution in the Executive's Target Annual Bonus opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material breach of this Agreement by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a relocation of the Executive's primary office location by more than thirty (30) miles if such relocation materially increases the Executive's commute.

The Executive shall provide the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within forty-five (45) days after the Executive first has notice of the first occurrence of such circumstances, and, to the extent uncured, actually terminate employment within thirty (30) days following the expiration of the Company's thirty (30)-day cure period described above. Otherwise, any claim of such circumstances as "Good Reason" shall be deemed irrevocably waived with respect to such circumstance by the Executive and no such termination for Good Reason shall be deemed to occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **WITHOUT GOOD REASON**. Upon thirty (30) days' prior written notice by the Executive to the Company of the Executive's voluntary termination of employment without Good Reason (which the Company may, in its sole discretion, make effective earlier than any notice date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **EXPIRATION OF EMPLOYMENT TERM; NON-EXTENSION OF AGREEMENT**. Upon the expiration of the Employment Term due to the delivery of a non-extension notice by the Company or the Executive in accordance with <u>Section</u> <u>2</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. CONSEQUENCES OF TERMINATION**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **DEATH**. In the event that the Executive's employment and the Employment Term end on account of the Executive's death, the Executive or the Executive's estate, as the case may be, shall be entitled to the following (with the amounts due under <u>Sections 7(a)(i)</u> through <u>7(a)(iii)</u> and <u>7(a)(v)</u> hereof to be paid within sixty (60) days following termination of employment, or such earlier date as may be required by applicable law):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any unpaid Base Salary through the date of termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reimbursement for any unreimbursed business expenses incurred through the date of termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any accrued but unused vacation time in accordance with Company policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all other payments, benefits or fringe benefits to which the Executive shall be entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant or this Agreement, payable in accordance with the terms of each such plan, program, or grant or as provided in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a pro-rata portion of the Executive's Target Annual Bonus for the fiscal year in which the Executive's termination occurs (determined by multiplying the amount of such bonus which would be due for the full fiscal year by a fraction, the numerator of which is the number of days during the fiscal year of termination that the Executive is employed by the Company and the denominator of which is 365), payable within thirty (30) days of the Executive's termination of employment in cash (the "<u>Pro Rata Bonus</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the earned Annual Bonus for any completed fiscal year ending prior to the date of termination, to the extent not previously paid payable in cash or fully-vested and freely tradeable shares of the Company's common stock, as determined by the Board in its sole discretion as and when such Annual Bonus would have been paid had the Executive's employment not terminated (the "<u>Prior Year Bonus</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) subject to (A) the Executive's (or his covered dependents') timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("<u>COBRA</u>") and (B) the Executive's (or, if applicable, his estate's) continued compliance with the obligations in <u>Sections 8</u>, <u>9</u> and <u>10</u> hereof, reimbursement of the Executive's COBRA premiums at the same level (including coverage for dependents, if applicable) and cost as if the Executive were an employee of the Company (excluding, for purposes of calculating cost, an employee's ability to pay premiums with pre-tax dollars) participating in the Company's group health plan for eighteen (18) months; <u>provided</u> that the Company may modify the continuation coverage contemplated by this <u>Section</u> <u>7(a)(vii)</u> to the extent reasonably necessary to avoid the imposition of any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and/or the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable) or to the extent necessary to comply with Code Section 409A under Treasury Regulation Section 1.409A-1(a)(5), in each case, in a manner with the least economic impact to the Executive (or his covered dependents); and <u>provided</u>, <u>further</u>, that in the event that the

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Executive obtains other employment that offers comparable group health benefits, such reimbursements by the Company under this <u>Section</u> <u>7(a)(vii)</u> shall immediately cease (the benefits described in this <u>Section</u> <u>7(a)(vii)</u>, the "<u>COBRA Reimbursement</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) provided that the Executive 's estate or beneficiaries shall have executed and delivered to the Company a general release pursuant to Section 8 and any period for rescission of such general release shall have expired without the Executive having rescinded such general release, any unvested equity award granted under the PubCo 2026 Equity Incentive Plan (as may be amended and restated from time to time, the "<u>2026 Plan</u>") or any successor equity incentive plan thereto (1) that is subject solely to a time-based vesting condition will accelerate and vest in full on the Executive's termination of employment and (2) that is subject to subsequent performance-based vesting conditions shall remain outstanding and continue to be eligible to vest in accordance with the performance metrics set forth in the applicable award agreement (the "<u>Equity Acceleration</u>").

Collectively, <u>Sections 7(a)(i)</u> through <u>7(a)(iv)</u> hereof shall be hereafter referred to as the "<u>Accrued Benefits</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **DISABILITY**. In the event that the Executive's employment and/or the Employment Term ends on account of the Executive's Disability, the Company shall pay or provide the Executive with the Accrued Benefits, the Pro Rata Bonus, the Prior Year Bonus and the COBRA Reimbursement and, provided that the Executive shall have executed and delivered to the Company a general release pursuant to Section 8 and any period for rescission of such general release shall have expired without the Executive having rescinded such general release, the Equity Acceleration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **TERMINATION FOR CAUSE OR WITHOUT GOOD REASON OR AS A RESULT OF A NON-EXTENSION OF THIS AGREEMENT BY THE EXECUTIVE OR AS A RESULT OF A NON-EXTENSION OF THIS AGREEMENT BY THE COMPANY AND WAIVER OF SECTION 9(b) BY THE COMPANY**. If the Executive's employment is terminated (I) by the Company for Cause, (II) by the Executive without Good Reason, (III) as a result of the Executive's non-extension of the Employment Term as provided in <u>Section</u> <u>2</u> hereof, or (IV) as a result of the Company's non-extension of the Employment Term as provided in <u>Section</u> <u>2</u> hereof and in the notice provided in accordance with <u>Section</u> <u>2</u> the Company states that it is waiving enforcement of, and the Executive shall have no obligation under, <u>Section</u> <u>9(b)</u> hereof, the Company shall pay to the Executive the Accrued Benefits. In addition to the Accrued Benefits, in the event of a termination as a result of Company's non-extension of the Employment Term pursuant to Section 7(c)(IV), the Executive shall be entitled to be paid a Pro Rata Bonus, the Prior Year Bonus, and the COBRA Reimbursement, as well as the Equity Acceleration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **TERMINATION WITHOUT CAUSE OR FOR GOOD REASON OR AS A RESULT OF A NON-EXTENSION OF THIS AGREEMENT BY THE COMPANY WITH NO WAIVER OF SECTION 9(b)**. If the Executive's employment by the Company is terminated (I) by the Company other than for Cause, (II) by the Executive for Good Reason, or (III) as a result of the Company's non-extension of the Employment Term as provided in <u>Section</u> <u>2</u> hereof and the Company does not state in the notice provided in accordance with <u>Section</u> <u>2</u> that

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it is waiving enforcement of, and the Executive shall have no obligation under, <u>Section</u> <u>9(b)</u> hereof, subject to the provisions of <u>Section</u> <u>24</u> hereof, the Company shall pay to the Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Accrued Benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to the Executive's continued compliance with the obligations in Sections 8, 9 and 10 hereof, the Pro Rata Bonus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to the Executive's continued compliance with the obligations in Sections 8, 9 and 10 hereof, an amount equal to the product of (A) the Severance Multiple and (B) the sum of (I) the Executive's Base Salary and (II) the average Annual Bonus earned with respect to each of the last three consecutive completed calendar years immediately preceding the date of termination (or during such shorter actual time of employment, as applicable, with such amount payable (or, to the extent applicable, deliverable) in a single lump sum within ten (10) business days following the Release Effective Date (as defined in Section 8 hereof); provided that each payment made pursuant to this Section is intended to qualify as a short-term deferral within the meaning of Treasury Regulation Section 1.409A-1(b)(4) or as a separation pay plan payment within the meaning of Treasury Regulation Section 1.409A-1(b)(9), and shall be interpreted and administered accordingly; provided, further, that to the extent that the payment of any amount constitutes "nonqualified deferred compensation" for purposes of Code Section 409A (as defined in <u>Section</u> <u>24</u> hereof), any such payment scheduled to occur during the first sixty (60) days following the termination of employment shall not be paid until the first regularly scheduled pay period following the sixtieth (60<sup>th</sup>) day following such termination and shall include payment of any amount that was otherwise scheduled to be paid prior thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Prior Year Bonus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the COBRA Reimbursement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) with respect to any unvested equity award granted under the 2026 Plan or any successor equity incentive plan thereto (1) that is subject solely to a time-based vesting condition, a prorated portion of such award that would have become vested as of the next vesting date immediately following the date of Executive's termination of employment shall become vested upon such date of termination, calculated based on multiplying the number of shares which would have become vested as of such next vesting date pursuant to such award by a fraction, the numerator of which is (x) the number of completed months for which Executive was employed during the period beginning on the prior vesting date (or grant date if no vesting date has occurred) and ending on the date of termination, and the denominator of which is (y) the number of months in the applicable vesting period, and (2) that is subject to subsequent performance-based vesting conditions shall remain outstanding and eligible to vest based on actual performance achievement in accordance with the performance metrics set forth in the applicable award agreement; provided that the number of shares subject to such award that vest and are paid/settled on such date(s) shall be pro-rated by a fraction, the numerator of which is the number of days elapsed from the beginning of the performance period applicable to such award through and including the date of Executive's termination of employment and the denominator of which is the total number of days comprising the full performance period applicable to such award.

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Payments and benefits provided in this <u>Section</u> <u>7(d)</u> shall be in lieu of any termination or severance payments or benefits for which the Executive may be eligible under any of the plans, policies or programs of the Company or under the Worker Adjustment Retraining Notification Act of 1988 or any similar state statute or regulation.

For the purposes of this Agreement, the "<u>Severance Multiple</u>" shall mean two (2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **TERMINATION IN CONNECTION WITH A CHANGE IN CONTROL**. Notwithstanding the foregoing, if the Executive's employment is terminated pursuant to Section 7(d) on or within twenty-four (24) months following a Change in Control (as defined in the <u>2026 Plan)</u>, and provided that the Executive shall have executed and delivered to the Company a general release pursuant to Section 8 and any period for rescission of such general release shall have expired without the Executive having rescinded such general release, in addition to the payments or benefits pursuant to Section 7(d), any unvested equity award (i) that is subject solely to a time-based vesting condition will accelerate and vest in full and (ii) that is subject to subsequent performance-based vesting conditions shall vest and be settled at the greater of target and actual performance, each as of the Executive's termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **OTHER OBLIGATIONS**. Upon any termination of the Executive's employment with the Company, the Executive shall be deemed to have resigned from any position as an officer, director or fiduciary of any Company-related entity, and shall execute any documentation as requested by the Company to effectuate the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **EXCLUSIVE REMEDY**. The amounts payable to the Executive following termination of employment and the Employment Term hereunder pursuant to <u>Sections 6</u> and <u>7</u> hereof shall be in full and complete satisfaction of the Executive's rights under this Agreement and any other claims that the Executive may have in respect of the Executive's employment with the Company or any of its Affiliates, and the Executive acknowledges that such amounts are fair and reasonable, and are the Executive's sole and exclusive remedy, in lieu of all other remedies at law or in equity, with respect to the termination of the Executive's employment hereunder or any breach of this Agreement. Notwithstanding the foregoing, any equity awards subject to performance-based vesting conditions shall continue to be treated in accordance with the terms of the applicable grant agreements, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. RELEASE; NO MITIGATION; NO SET-OFF**. Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement beyond the Accrued Benefits and any Prior Year Bonus shall only be payable if the Executive (or, if applicable, Executive's estate or beneficiary) delivers to the Company and does not revoke a general release of claims in favor of the Company in substantially the form attached on <u>Exhibit A</u> hereto. Such release shall be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following termination (the "<u>Release Effective Date</u>"). In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Executive as a result of employment by a subsequent employer, except as provided in <u>Section</u> <u>7(a)(vii)</u> hereof. The Company's obligations to pay the Executive amounts hereunder shall not be subject

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to set-off, counterclaim or recoupment of amounts owed by the Executive to the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. RESTRICTIVE COVENANTS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **CONFIDENTIALITY**. During the course of the Executive's employment with the Company, the Executive will have access to Confidential Information. For purposes of this Agreement, "<u>Confidential Information</u>" means all data, information, ideas, concepts, discoveries, trade secrets, inventions (whether or not patentable or reduced to practice), innovations, improvements, know-how, developments, techniques, methods, processes, treatments, drawings, sketches, specifications, designs, plans, patterns, models and strategies, and all other confidential or proprietary information or trade secrets in any form or medium (whether merely remembered or embodied in a tangible or intangible form or medium) whether now or hereafter existing, relating to or arising from the past, current or potential business, activities and/or operations of the Company or any of its Affiliates, including, without limitation, any such information relating to or concerning finances, sales, marketing, advertising, transition, promotions, pricing, personnel, customers, suppliers, vendors, partners and/or competitors. The Executive agrees that, except as provided in <u>Section</u> <u>11</u> hereof, the Executive shall not, directly or indirectly, use, make available, sell, disclose or otherwise communicate to any person, other than in the course of the Executive's assigned duties and for the benefit of the Company and its subsidiaries and Affiliates, either during the period of the Executive's employment or at any time thereafter, any Confidential Information or other confidential or proprietary information received from third parties subject to a duty on the Company's and its subsidiaries' and Affiliates' part to maintain the confidentiality of such information, and to use such information only for certain limited purposes, in each case, which shall have been obtained by the Executive during the Executive's employment by the Company (or any predecessor). The foregoing shall not apply to information that (i) was known to the public prior to its disclosure to the Executive; (ii) becomes generally known to the public subsequent to disclosure to the Executive through no wrongful act of the Executive or, to the knowledge of the Executive, any third party; (iii) is independently developed by Executive, or comes into possession of the Executive, other than in connection with his employment hereunder; or (iv) the Executive is required to disclose by applicable law or regulation, or a valid order or subpoena or request issued by a court of competent jurisdiction or an authorized governmental or regulatory agency, provided that the Executive, unless such notice is prohibited, provides the Company with prior notice of the contemplated disclosure promptly upon learning of such requirement, and reasonably in advance of such disclosure, (A) discloses only that portion of the Confidential Information that is legally required to be disclosed, (B) uses reasonable efforts to ensure that such disclosure is afforded confidential treatment, and (C) cooperates with the Company at the Company's expense in seeking a protective order or other appropriate protection of such information. For purposes of this Agreement, "<u>Affiliate</u>" means, with respect to any entity, any other entity that directly or indirectly controls, is controlled by, or is under common control with such entity, whether existing on the date hereof or hereafter acquired or formed; provided, however, that no portfolio company or investment of any direct or indirect equityholder of the Company shall be deemed an Affiliate of the Company solely by virtue of sharing a common investor. For purposes of this definition, "control" (including the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies, whether through ownership of voting securities, by contract or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **NONCOMPETITION**. The Executive acknowledges that (i) the Executive performs services of a unique nature for the Company that are irreplaceable, and that the Executive's performance of such services to a competing business would result in irreparable harm to the Company, (ii) the Executive has had and will continue to have access to Confidential Information which, if disclosed, would unfairly and inappropriately assist in competition against the Company or any of its Affiliates, (iii) in the course of the Executive's employment by a competitor, the Executive would inevitably use or disclose Confidential Information, (iv) the Company and its Affiliates have substantial relationships with their customers and the Executive has had and will continue to have access to these customers, (v) the Executive has received and will receive specialized training from the Company and its Affiliates, (vi) the Executive has generated and will continue to generate goodwill for the Company and its Affiliates in the course of the Executive's employment, and (vii) the restrictive covenants set forth herein are supported by adequate consideration, including the Company's agreement to provide the compensation, benefits, and severance payments set forth in this Agreement. Accordingly, during the Employment Term and the Restricted Period (as defined below), the Executive agrees that the Executive will not engage in any Competitive Activities (as defined below), except to the extent permissible pursuant to <u>Section</u> <u>26</u> or a Permitted Activity, in any basin or location in which the Company or any of its subsidiaries operates and owns any Hydrocarbon Interests (as defined below). Notwithstanding the foregoing, nothing herein shall prohibit the Executive from being a passive owner of not more than one percent (1%) of the equity securities of a publicly traded corporation engaged in a business that is in competition with the Company or any of its subsidiaries or Affiliates, so long as the Executive has no active participation in the business of such corporation, or owning a passive investment in any mutual, private equity or hedge fund or similar pooled investment vehicle. For the purposes of this Agreement, (A) "<u>Competitive Activities</u>" shall mean owning any interest in, participating in (whether as a director, officer, employee, member, or partner), consulting with, rendering services for (including as an employee or independent contractor), or in any manner engaging in any business or enterprise involving or related to the acquisition, ownership, or operation of Hydrocarbon Interests, in each case, except to the extent permissible pursuant to <u>Section</u> <u>26</u>; (B) "<u>Hydrocarbon Interests</u>" shall mean mineral and royalty assets and interests; and (C) "<u>Restricted Period</u>" means the period beginning on the Executive's last day of employment with the Company and ending (I) on the second anniversary thereof, if such termination of employment occurs prior to the expiration of the Initial Term and (II) on the first anniversary thereof, if such termination occurs upon or after the expiration of the Initial Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **NONSOLICITATION; NONINTERFERENCE**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During the Employment Term and the Restricted Period, the Executive agrees that the Executive shall not, except in the furtherance of the Executive's duties hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, solicit, aid or induce any customer of the Company or any of its subsidiaries or Affiliates to cease or reduce doing business with the Company or any of its subsidiaries or Affiliates, or to purchase goods or services then sold by the Company or any of its subsidiaries or Affiliates from another person, firm, corporation or other entity or assist or aid any other persons or entity in identifying or soliciting any such customer or interfere in any way with the business relationship between any customer of the Company and the Company or any of its subsidiaries or Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Employment Term and the Restricted Period, the Executive agrees that the Executive shall not, except in the furtherance of the Executive's duties hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, (A) solicit, aid or induce any employee, representative or agent of the Company or any of its subsidiaries or Affiliates to leave such employment or retention or to accept employment with or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company or hire or retain any such employee, representative or agent, or take any action to materially assist or aid any other person, firm, corporation or other entity in identifying, hiring or soliciting any such employee, representative or agent, or (B) interfere, or aid or induce any other person or entity in interfering, with the relationship between the Company or any of its subsidiaries or Affiliates and any of their respective vendors, joint venturers or licensors. An employee, representative or agent shall be deemed covered by this <u>Section</u> <u>9(c)(ii)</u> while so employed or retained and for a period of six (6) months thereafter. Notwithstanding the foregoing, a general solicitation that is not targeted at employees, representatives, or agents of the Company shall not constitute a breach of this <u>Section</u> <u>9(c)(ii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **NONDISPARAGEMENT**. Except as provided in <u>Section</u> <u>11</u> hereof, the Executive agrees not to make negative comments or otherwise disparage the Company or its officers, directors, employees, or products other than to the extent necessary in the good faith performance of the Executive's duties to the Company while the Executive is employed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **INVENTIONS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Executive acknowledges and agrees that all ideas, methods, inventions, discoveries, improvements, work products, developments, software, know-how, processes, techniques, works of authorship and other work product, whether patentable or unpatentable, (A) that are reduced to practice, created, invented, designed, developed, contributed to and/or within the scope of the Executive's work with the Company or that relate to the business, operations or actual or demonstrably anticipated research or development of the Company, and that are made or conceived by the Executive, solely or jointly with others, during the Employment Term and that are not made or conceived by the Executive, solely or jointly with others, in performance of any Permitted Activities or in connection with businesses acquired or invested in connection with <u>Section</u> <u>26</u> hereof, or (B) suggested by any work that the Executive performs in connection with the Company while performing the Executive's duties with the Company shall belong exclusively to the Company (or its designee), whether or not patent or other applications for intellectual property protection are filed thereon (the "<u>Inventions</u>"). The Executive will keep full and complete written records (the "<u>Records</u>"), in the manner prescribed by the Company, of all Inventions, and will promptly disclose all Inventions completely and in writing to the Company. The Records shall be the sole and exclusive property of the Company, and the Executive will surrender them upon the termination of the Employment Term, or upon the Company's request. The Executive irrevocably conveys, transfers and assigns to the Company the Inventions and all patents or other intellectual property rights that may issue thereon in any and all countries, whether during or subsequent to the Employment Term, together with the right to file, in the Executive's name or in the name of the Company (or its designee), applications for patents and equivalent rights (the "<u>Applications</u>"). The Executive will, at any time during and subsequent to the Employment Term, make such applications, sign

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such papers, take all rightful oaths, and perform all other acts as may be requested from time to time by the Company to perfect, record, enforce, protect, patent or register the Company's rights in the Inventions, all without additional compensation to the Executive from the Company but at the Company's sole expense. The Executive will also execute assignments to the Company (or its designee) of the Applications, and give the Company and its attorneys all reasonable assistance (including the giving of testimony) to obtain the Inventions for the Company's benefit, all without additional compensation to the Executive from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition, the Inventions will be deemed Work for Hire, as such term is defined under the copyright laws of the United States, on behalf of the Company and the Executive agrees that the Company will be the sole owner of the Inventions, and all underlying rights therein, in all media now known or hereinafter devised, throughout the universe and in perpetuity without any further obligations to the Executive. If the Inventions, or any portion thereof, are deemed not to be Work for Hire, or the rights in such Inventions do not otherwise automatically vest in the Company, the Executive hereby irrevocably conveys, transfers and assigns to the Company, all rights, in all media now known or hereinafter devised, throughout the universe and in perpetuity, in and to the Inventions, including, without limitation, all of the Executive's right, title and interest in the copyrights (and all renewals, revivals and extensions thereof) to the Inventions, including, without limitation, all rights of any kind or any nature now or hereafter recognized, including, without limitation, the unrestricted right to make modifications, adaptations and revisions to the Inventions, to exploit and allow others to exploit the Inventions and all rights to sue at law or in equity for any infringement, or other unauthorized use or conduct in derogation of the Inventions, known or unknown, prior to the date hereof, including, without limitation, the right to receive all proceeds and damages therefrom. In addition, the Executive hereby waives any so-called "moral rights" with respect to the Inventions. To the extent that the Executive has any rights in the results and proceeds of the Executive's service to the Company that cannot be assigned in the manner described herein, the Executive agrees to unconditionally waive the enforcement of such rights. The Executive hereby waives any and all currently existing and future monetary rights in and to the Inventions and all patents and other registrations for intellectual property that may issue thereon including, without limitation, any rights that would otherwise accrue to the Executive's benefit by virtue of the Executive being an employee of or other service provider to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **RETURN OF COMPANY PROPERTY**. Promptly following the Executive's termination of employment with the Company for any reason (or at any time prior thereto at the Company's request), the Executive shall return all property belonging to the Company or its Affiliates (including, but not limited to, any Company-provided laptops, computers, cell phones, wireless electronic mail devices or other equipment, or documents and property belonging to the Company). The Executive may retain the Executive's Outlook contacts and calendar (or similar items) provided that such items only include contact and calendar information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **REASONABLENESS OF COVENANTS**. In signing this Agreement, the Executive gives the Company assurance that the Executive has carefully read and considered all of the terms and conditions of this Agreement, including the restraints imposed under this <u>Section</u> <u>9</u> hereof. The Executive agrees that these restraints are necessary for the reasonable and proper protection of the Company and its Affiliates and their Confidential Information and that each and every one of the restraints is reasonable in respect to subject matter, length of time and

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geographic area, and that these restraints, individually or in the aggregate, will not prevent the Executive from obtaining other suitable employment during the period in which the Executive is bound by the restraints. The Executive agrees that, before providing services, whether as an employee or consultant, to any entity during the period of time that the Executive is subject to the constraints in <u>Section</u> <u>9(a)</u> hereof, the Executive will provide a copy of <u>Section</u> <u>9</u> of this Agreement to such entity. The Executive acknowledges that each of these covenants has a unique, very substantial and immeasurable value to the Company and its Affiliates and that the Executive has sufficient assets and skills to provide a livelihood while such covenants remain in force. The Executive further covenants that the Executive will not challenge the reasonableness or enforceability of any of the covenants set forth in this <u>Section</u> <u>9</u>, and that the Executive will reimburse the Company and its Affiliates for all costs (including reasonable attorneys' fees) incurred in connection with any action to enforce any of the provisions of this <u>Section</u> <u>9</u> if either the Company and/or its Affiliates prevails on any material issue involved in such dispute or if the Executive challenges the reasonableness or enforceability of any of the provisions of this <u>Section</u> <u>9</u>. It is also agreed that each of the Company's Affiliates will have the right to enforce all of the Executive's obligations to that Affiliate under this Agreement, including without limitation pursuant to this <u>Section</u> <u>9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **REFORMATION**. If it is determined by a court of competent jurisdiction in any state that any restriction in this <u>Section</u> <u>9</u> is excessive in duration or scope or is unreasonable or unenforceable under applicable law, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the laws of that state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **TOLLING**. In the event of any violation of the provisions of this <u>Section</u> <u>9</u>, the Executive acknowledges and agrees that the post-termination restrictions contained in this <u>Section</u> <u>9</u> shall be extended by a period of time equal to the period of such violation, it being the intention of the parties hereto that the running of the applicable post-termination restriction period shall be tolled during any period of such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **SURVIVAL OF PROVISIONS**. The obligations contained in <u>Sections 9</u> and <u>10</u> hereof shall survive the termination or expiration of the Employment Term and the Executive's employment with the Company and shall be fully enforceable thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **RESTRICTIONS ON RESALE**. In addition to any restrictions on transfer set forth in the Amended and Restated Agreement of Limited Partnership of OpCo (the "<u>Operating Agreement</u>"), without the prior written consent of a majority of independent directors of PubCo, the Executive shall not offer, sell, contract to sell or otherwise transfer or dispose of any of the Common Units (as defined in the Operating Agreement) or shares of Class A Common Stock (as defined in the Operating Agreement) received in exchange therefor, or securities convertible or exchangeable or exercisable for any of the Common Units or shares of Class A Common Stock, or enter into any swap, hedge, or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Units or shares of Class A Common Stock for a period of twelve (12) months commencing on the date of consummation of PubCo's initial public offering of shares of Class A Common Stock (the "<u>IPO Date</u>") (such period, the "<u>Lockup Period</u>"); <u>provided</u>, <u>however</u>, that nothing in this paragraph shall prohibit the Executive from (i) distributing Common Units to the Executive's Relatives (as defined in the Operating Agreement)

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received as consideration in connection with this Agreement or any other arrangement, provided such Relatives agree in writing to the restrictions of this <u>Section</u> <u>9(k)</u>, or (ii) pledging such Common Units or shares of Class A Common Stock, provided such pledgee agrees in writing to the restrictions of this <u>Section</u> <u>9(k)</u>. The foregoing restrictions shall not apply to transfers by the Executive to the Executive's Affiliates, successors or any trust, family partnership or family limited liability company established for the benefit of the Executive or the Executive's Relatives, so long as such transferee agrees in writing to be bound by the terms of this <u>Section</u> <u>9(k)</u>. Notwithstanding the foregoing or any other provision in this Agreement to the contrary, (i) the provisions of this <u>Section</u> <u>9(k)</u> shall cease to be in effect upon the closing of a General Partner Change of Control (as defined in the Operating Agreement), and (ii) following the Lockup Period, in the event the Executive shall die while holding Common Units or shares of Class A Common Stock, such Common Units or shares of Class A Common Stock shall be immediately and freely transferable, subject to applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. COOPERATION**. Upon the receipt of reasonable notice from the Company or its outside counsel, the Executive agrees that while employed by the Company and thereafter, the Executive will respond and provide information with regard to matters in which the Executive has knowledge as a result of the Executive's employment with the Company, and will provide reasonable assistance to the Company, its Affiliates and their respective representatives in defense of any claims that may be made against the Company or its Affiliates (other than any claims asserted by the Executive), and will assist the Company and its Affiliates in the prosecution of any claims that may be made by the Company or its Affiliates (other than any claims that may be asserted against the Executive), to the extent that such claims may relate to the period of the Executive's employment with the Company (collectively, the "<u>Claims</u>"). The Executive agrees to promptly inform the Company if the Executive becomes aware of any lawsuits involving Claims that may be filed or threatened against the Company or its Affiliates. The Executive also agrees to promptly inform the Company (to the extent that the Executive is legally permitted to do so) if the Executive is asked to assist in any investigation of the Company or its Affiliates (or their actions) or another party attempts to obtain information or documents from the Executive (other than in connection with any litigation or other proceeding in which the Executive is a party-in-opposition) and the Executive shall not provide such information or documents except with the prior written consent of the Company or its counsel or as required by applicable law, regulation or legal process. If the Executive is required by law, regulation, or legal process to provide information or testimony, the Executive shall, unless prohibited by law, provide prompt written notice to the Company so that the Company may seek a protective order or other appropriate remedy. Upon presentation of appropriate documentation, the Company shall pay or reimburse the Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses and all reasonable legal expenses incurred by the Executive in complying with this <u>Section</u> <u>10</u>. To the extent such cooperation occurs subsequent to the termination of the Executive's employment (and, if the Executive received payment pursuant to <u>Section</u> <u>7(d)(iii)</u>, hereof, subsequent to the expiration of a number of years thereafter equal to the Severance Multiple), the Company shall compensate the Executive for such cooperation at a daily rate equal to (i) the sum of the Executive's final Base Salary divided by (ii) 365.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. PROTECTED ACTIVITY**. Notwithstanding anything to the contrary contained herein, no provision of this Agreement shall be interpreted so as to impede the Executive from (i) reporting possible violations of federal, state or local law or regulation (including, without

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limitation, laws relating to fraud, securities, harassment, discrimination, or retaliation) to, or discussing any possible violations with, any governmental agency or entity or self-regulatory organization, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, any agency Inspector General, and FINRA, or making other disclosures under the whistleblower provisions of federal law or regulation, without the prior authorization of the Company to make any such reports or disclosures and the Executive shall not be required to notify the Company that such reports or disclosures have been made; (ii) making truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings), (iii) any disclosure or communication made by the Executive in connection with any report or complaint to a federal, state or local governmental or law enforcement agency or body (including, but not limited to, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the Department of Justice), (iv) any disclosure or communication protected under whistleblower provisions of applicable federal, state or local law, or (v) any other disclosure or communication that is required by law. 18 U.S.C. § 1833(b) provides: "An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal." Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Accordingly, the parties to this Agreement have the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. The parties also have the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. EQUITABLE RELIEF AND OTHER REMEDIES**. The Executive acknowledges and agrees that the Company's remedies at law for a breach or threatened breach of any of the provisions of <u>Section</u> <u>9</u> or <u>Section</u> <u>10</u> hereof would be inadequate and, in recognition of this fact, the Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond or other security, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available, without the necessity of showing actual monetary damages. In the event of a violation by the Executive of <u>Section</u> <u>9</u> or <u>Section</u> <u>10</u> hereof, any severance being paid to the Executive pursuant to this Agreement or otherwise shall immediately cease, and any severance previously paid to the Executive shall be immediately repaid to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. NO ASSIGNMENTS**. This Agreement is personal to each of the parties hereto. Except as provided in this <u>Section</u> <u>13</u> hereof, no party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the other party hereto. The Company may assign this Agreement to any successor to all or substantially all of the business and/or assets of the Company, <u>provided</u> that the Company shall require such successor to expressly assume and agree to perform this Agreement in the same manner and to the same

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extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, "<u>Company</u>" shall mean the Company and any successor to its business and/or assets, which assumes and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. NOTICE**. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery, if delivered by hand, (b) on the date of transmission, if delivered by confirmed facsimile or electronic mail, (c) on the first business day following the date of deposit, if delivered by guaranteed overnight delivery service, or (d) on the fourth business day following the date delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Executive:

At the address (or to the e-mail address or facsimile number) shown in the books and records of the Company.

If to the Company:

2000 Market Street, Suite 910

Philadelphia, PA 19103

Attention: General Counsel

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. SECTION HEADINGS; INCONSISTENCY**. The section headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of the Company, the terms of this Agreement shall govern and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. SEVERABILITY**. The provisions of this Agreement shall be deemed severable. The invalidity or unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. COUNTERPARTS**. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. ARBITRATION**. Any dispute or controversy arising under or in connection with this Agreement or the Executive's employment with the Company shall be settled exclusively by confidential arbitration, conducted before a single arbitrator (as an individual, and not a class or

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collection action) in New York, New York in accordance with the American Arbitration Association Employment Arbitration Rules and Mediation Procedures (the "<u>Rules</u>") then in effect; provided, however, that the following claims are excluded from mandatory arbitration: (i) claims for injunctive or equitable relief under Section 12 hereof; (ii) claims of sexual assault, sexual harassment, or whistleblower retaliation under the Sarbanes-Oxley Act or the Dodd-Frank Act; and (iii) any other claim that cannot be subject to mandatory arbitration as a matter of law. A copy of the current version of the Rules is available at: https://www.adr.org/media/0vrpbnm0/2025_employment_arbitration_rules.pdf. To the fullest extent of the law, the arbitrator shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, formation, or enforceability of this Agreement, including but not limited to the arbitrability of any dispute between the parties. The decision of the arbitrator will be final and binding upon the parties hereto. Judgment may be entered on the arbitrator's award in any court having jurisdiction. The parties acknowledge and agree that in connection with any such arbitration, (a) the arbitration costs shall be borne entirely by the Company, (b) each party shall pay all of its own costs and expenses, except as otherwise required by applicable law, including, without limitation, its own legal fees and expenses, provided that the Company will reimburse the Executive for all costs (including reasonable attorneys' fees) incurred in a dispute if the Executive prevails on any material issue involved in such dispute, and (c) the arbitrator shall have no power to award punitive damages to either party, except where an applicable statute allows for punitive damages. The parties further agree that this arbitration provision is intended to be mutually binding and enforceable to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. INDEMNIFICATION**. The Company hereby agrees to indemnify the Executive and hold the Executive harmless to the greatest extent permitted by law or provided under the By-Laws of the Company against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including reasonable attorneys' fees), losses, and damages resulting from the Executive's good faith performance of the Executive's duties and obligations with the Company, and shall provide advancement of expenses to the greatest extent permitted under applicable law. This obligation shall survive the termination of the Executive's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. LIABILITY INSURANCE**. The Company shall purchase and maintain, at its own expense, directors' and officers' liability insurance and cover the Executive under such directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement which shall not be less favorable than the coverage provided to other senior executive officers and directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. GOVERNING LAW; WAIVER OF JURY TRIAL**. This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania (without regard to its choice of law provisions). **As a specifically bargained for inducement for each of the parties hereto to enter into this Agreement (after having the opportunity to consult with counsel), each party hereto expressly waives the right to trial by jury in any lawsuit or proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22. MISCELLANEOUS**. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer or director as may be designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement together with all exhibits hereto sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes any and all prior agreements or understandings between the Executive and the Company with respect to the subject matter hereof. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23. REPRESENTATIONS**. The Executive represents and warrants to the Company that (a) the Executive has the legal right to enter into this Agreement and to perform all of the obligations on the Executive's part to be performed hereunder in accordance with its terms, and (b) the Executive is not a party to any agreement or understanding, written or oral, and is not subject to any restriction, which, in either case, could prevent the Executive from entering into this Agreement or impair in any way the performance of the Executive's duties and obligations hereunder. In addition, the Executive acknowledges that the Executive is aware of Section 304 (Forfeiture of Certain Bonuses and Profits) of the Sarbanes-Oxley Act of 2002 and the right of the Company to be reimbursed for certain payments to the Executive in compliance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24. TAX MATTERS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **WITHHOLDING**. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **DELIVERY OF SHARES ON NET BASIS**. In the event the Executive is to be issued shares of Class A common stock in accordance with any equity awards granted pursuant to this Agreement and the Executive is not able to sell a sufficient number of shares of Class A common stock to satisfy the Executive's applicable tax withholding obligations through a broker-assisted sale or other "sell-to-cover" mechanism, the Company shall, upon the Executive's election, retain a sufficient number of such shares to satisfy the Executive's tax withholding obligations and deliver the remaining shares on a net share settlement basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **SECTION 409A COMPLIANCE**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The intent of the parties is that payments and benefits under this Agreement be exempt from or otherwise comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively "<u>Code Section</u> <u>409A</u>"), and any ambiguity shall be interpreted in accordance with the foregoing to the maximum extent permitted. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Executive and the Company of the applicable provision without violating the provisions of Code Section 409A. In

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no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a "termination," "termination of employment" or like terms shall mean "separation from service." Notwithstanding anything to the contrary in this Agreement, if the Executive is deemed on the date of termination to be a "specified employee" within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a "separation from service," such payment or benefit shall not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such "separation from service" of the Executive, and (B) the date of the Executive's death, to the extent required under Code Section 409A to avoid imposition of any additional taxes or interest. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this <u>Section</u> <u>24(c)(ii)</u> (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. Any payments subject to Code Section 409A that are subject to execution of a waiver and release which may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such as termination of employment) occurs shall not commence payment prior to the calendar year in which the consideration period or, if applicable, release revocation period ends, as necessary to avoid additional taxes, penalties or interest under Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent that reimbursements or other in-kind benefits under this Agreement constitute "nonqualified deferred compensation" for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For purposes of Code Section 409A, the Executive's right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes "nonqualified deferred

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compensation" for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **EXCESS PARACHUTE PAYMENTS; LIMITATIONS ON PAYMENTS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any other provision of this Agreement, if any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a termination of the Executive's employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, including the payments and benefits under <u>Section</u> <u>7</u>, being hereinafter referred to as the "<u>Total Payments</u>") would, but for this <u>Section</u> <u>24(d)</u>, be subject (in whole or part), to the excise tax imposed under Section 4999 of the Code (the "<u>Excise Tax</u>"), then, the Total Payments shall be reduced (but not below zero), to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). If the Total Payments are so reduced, the Company shall reduce or eliminate the Total Payments (A) by first reducing or eliminating the portion of the Total Payments which are not payable in cash (other than that portion of the Total Payments subject to clause (C)), (B) then by reducing or eliminating cash payments (other than that portion of the Total Payments subject to clause (C)) and (C) then by reducing or eliminating the portion of the Total Payments (whether payable in cash or not payable in cash) to which Treasury Regulation § 1.280G-1 Q/A 24(c) (or successor thereto) applies, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a "payment" within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of an independent, nationally recognized accounting firm (the "<u>Independent Advisors</u>") selected by the Company, does not constitute a "parachute payment" within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the "base amount" (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any determination required under this <u>Section</u> <u>24(d)</u>, including whether any payments or benefits are parachute payments, shall be made at the Company's expense by an independent public accounting firm that is mutually agreed by the Company and the Executive (the "<u>Accounting Firm</u>"), based upon reasonable, good faith assumptions and interpretations of Section 280G of the Code. The Executive and the Company shall provide the Accounting Firm with such information and documents as the Accounting Firm may reasonably request in order to make a determination under this <u>Section</u> <u>24(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25. SARBANES-OXLEY ACT OF 2002**. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that any transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section 13(k) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the "<u>Exchange Act</u>"), then such transfer or deemed transfer shall not be made to the extent necessary or appropriate so as not to violate the Exchange Act and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26. CORPORATE OPPORTUNITIES.** During the Employment Term, the Executive shall submit to the Board (or an authorized subcommittee thereof) in writing all business, commercial and investment opportunities or offers presented to the Executive which reasonably relate to, and are within the scope of, the business of the Company and its Affiliates ("<u>Business Opportunities</u>") before pursuing any such Business Opportunities for his own personal benefit. If the Board (or authorized subcommittee thereof) either formally declines the opportunity (or pursuit thereof) or fails to authorize the Company's pursuit of such opportunity within 45 days of the Executive submitting to the Board (or an authorized subcommittee thereof) (the "<u>Declined Opportunities</u>"), the Executive shall be permitted to pursue, invest in, acquire, or otherwise participate in, such Declined Opportunity; so long as such Business Opportunities do not interfere in any material respect with Executive's performance of his duties hereunder or violate Executive's obligations under <u>Section</u> <u>9</u> of this Agreement. Any Business Opportunity that the Company exercises its right to pursue and then later renounces or elects to discontinue pursuit, shall, at such time, be considered a Business Opportunity eligible for submission to the Board by Executive. In addition, the Executive shall be permitted to pursue, invest in, acquire, or otherwise participate in business, investment, and commercial opportunities that are not related to the current or reasonably anticipated business activities of the Company and its Affiliates ("<u>Outside Opportunity</u>"), provided that such Outside Opportunity does not constitute a breach of Executive's obligations under <u>Section</u> <u>9</u> and so long as Executive's involvement in such Outside Opportunities, together with the Executive's involvement in any Business Opportunities, does not interfere with the Executive's performance of his duties hereunder in any material respect. The Company acknowledges and agrees that the Executive's pursuit, involvement and/or direct or indirect investment or other participation in such Declined Opportunities and Outside Opportunities shall not be a breach of this Agreement (including, without limitation, the restrictive covenants set forth herein, subject to the requirements of this <u>Section</u> <u>26</u>); provided, that, notwithstanding anything to the contrary in this <u>Section</u> <u>26</u> or otherwise, in the event the Board reasonably determines in good faith that any such Declined Opportunities or Outside Opportunities constitute a breach of Executive's fiduciary duties to PubCo and the Company or otherwise would result in material harm to PubCo, the Company or their respective subsidiaries, Executive shall not be permitted to pursue, invest in, acquire, or otherwise participate in such Declined Opportunities or Outside Opportunities. For the avoidance

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of doubt, nothing in <u>Section</u> <u>26</u> shall modify or constitute a waiver of the Executive's fiduciary duties to PubCo, the Company, or their respective subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27. CLAWBACK**. Notwithstanding any other provisions in this Agreement, any payments made pursuant to this Agreement shall be subject to recovery or clawback by the Company under any applicable clawback policy adopted by the Company in accordance with the Securities and Exchange Commission regulations or other applicable law, and the Executive agrees to execute appropriate acknowledgements or other documentation as may be required pursuant to such policies from time to time.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement as of the date first written above.

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| |
|:---|
| **COMPANY** |
| By: |
| Name: |
| Title: |
| **EXECUTIVE** |

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**EXHIBIT A** 

**<u>GENERAL RELEASE</u>**

I, [___________], in consideration of and subject to the performance by WhiteHawk Minerals Corp., a Delaware incorporated company ("<u>PubCo</u>"), WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership ("<u>OpCo</u>" and together with PubCo and any subsidiaries or Affiliates as may employ Executive from time to time, the "<u>Company</u>"), of its obligations under the Employment Agreement dated as of [ • ], 2026 (the "Agreement") do hereby release and forever discharge as of the date hereof the Company and its respective Affiliates and all present, former and future managers, directors, officers, employees, agents, successors and assigns of the Company and its Affiliates and direct or indirect owners (collectively, the "<u>Released Parties</u>") to the extent provided below (this "<u>General Release</u>"). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1. My employment or service with the Company and its Affiliates terminated as of [ • ], 20[ • ], and
I hereby resign from any position as an officer, member of the board of managers or directors (as applicable) or fiduciary of the Company or its Affiliates (or reaffirm any such resignation that may have already occurred). I understand certain
payments to me under <u>Section</u> <u>7</u> of the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will
not receive certain of the payments and benefits specified in <u>Section</u> <u>7</u> of the Agreement unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter. I understand
and agree that such payments and benefits are subject to <u>Sections 9</u> and <u>10</u> of the Agreement, which (as noted below) expressly survive my termination of employment and the execution of this General Release. Such payments and benefits
will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its Affiliates.

2. Except as provided in paragraphs 4 and 5 below and except for the provisions of the Agreement which
expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all
claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary
damages, other damages, claims for costs and attorneys' fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known
or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have against the Company or any of the Released Parties that arise out of or are
connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil

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Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys' fees incurred in these matters) (all of the foregoing collectively referred to herein as the "<u>Claims</u>"). <br>

3. I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or
other matter covered by paragraph 2 above.

4. I agree that this General Release does not waive or release any rights or claims that I may have under the
Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the
basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

5. I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or
all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am
not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; <u>provided</u>, <u>however</u>, that I disclaim and waive
any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Additionally, I am not waiving any claims or rights (i) to the Accrued Benefits or any severance benefits to
which I am entitled under the Agreement, (ii) relating to directors' and officers' liability insurance coverage or any right of indemnification or advancement of expenses under the Company's organizational documents, the
Agreement or otherwise, (iii) as an equity or security holder in the Company or its Affiliates, (iv) arising under <u>Section</u> <u>9(d)</u> of the Agreement, or (v) with respect to vested benefits under any of the
Company's benefit plans.

6. In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and
every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and
unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove
mentioned or implied. I

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acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described in paragraph 2 above as of the execution of this General Release. <br>

7. I agree that neither this General Release, nor the furnishing of the consideration for this General Release,
shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8. I agree that if I violate this General Release by suing the Company or the other Released Parties, I will
pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys' fees.

9. I agree that this General Release and the Agreement are confidential and agree not to disclose any
information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of
the foregoing not to disclose the same to anyone.

10. Any non-disclosure provision in this General Release does not
prohibit or restrict me (or my attorney) from discussing any issue with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self- regulatory
organization or any governmental entity.

11. I hereby acknowledge that <u>Sections</u> <u>7</u> through <u>14</u>, <u>19</u> through <u>22</u> and <u>24</u> through <u>27</u> of the Agreement shall survive my execution of this General Release.

12. I represent that I am not aware of any claim by me other than the claims that are released by this General
Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or
suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

13. Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish,
diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

14. Whenever possible, each provision of this General Release shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction, but this General Release

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shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

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BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I HAVE READ IT CAREFULLY;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO,
RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL
READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. I HAVE HAD AT LEAST **[21][45]** DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE
CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED [21][45]-DAY PERIOD;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS
RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO
ADVISE ME WITH RESPECT TO IT; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT
BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

SIGNED:     DATED:

## Exhibit 10.21

**Exhibit 10.21** 

**<u>EMPLOYMENT AGREEMENT</u>**

**EMPLOYMENT AGREEMENT** (this "<u>Agreement</u>") dated as of [ • ], 2026, between WhiteHawk Minerals Corp., a Delaware incorporated company ("<u>PubCo</u>"), WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership ("<u>OpCo</u>" and together with PubCo and any subsidiaries or affiliates as may employ Executive from time to time, the "<u>Company</u>"), and Stephen Pilatzke (the "<u>Executive</u>").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>

**WHEREAS**, the Company desires to employ the Executive as Chief Accounting Officer of the Company; and

**WHEREAS**, the Company and the Executive desire to enter into this Agreement as to the terms of the Executive's employment with the Company.

**NOW, THEREFORE**, in consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. POSITION AND DUTIES**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Employment Term (as defined in <u>Section</u> <u>2</u> hereof), the Executive shall serve as the Chief Accounting Officer of the Company. In this capacity, the Executive shall have the duties, authorities and functions commensurate with the duties, authorities and functions of persons holding such title in similarly-sized companies. The Executive's principal place of employment with the Company shall be his residence in New York, New York where he shall be permitted to work remotely, <u>provided</u> that the Executive understands and agrees that the Executive may be required to travel from time to time for business purposes. The Executive shall report directly to the Chief Financial Officer, Treasurer and Secretary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Employment Term, the Executive shall devote substantially all business time, energy, business judgment, knowledge and skill and the Executive's best efforts to the performance of the Executive's duties with the Company, <u>provided</u> that the foregoing shall not prevent the Executive from (i) serving on the boards of directors of non-profit organizations and, with the prior written approval of the Board of Directors (the "Board") of PubCo, other for-profit companies, (ii) participating in charitable, civic, educational, professional, community or industry activities and (iii) managing the Executive's personal investments (collectively, the "<u>Permitted Activities</u>") so long as such activities in the aggregate do not materially interfere with the Executive's duties hereunder or create a business or fiduciary conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. EMPLOYMENT TERM**. The Company agrees to employ the Executive pursuant to the terms of this Agreement, and the Executive agrees to be so employed, for a term commencing as of the date hereof (the "<u>Effective Date</u>") and ending on the third anniversary of the Effective Date (the "<u>Initial Term</u>"). On the third anniversary of the Effective Date and each one-year anniversary of such date thereafter, the term of this Agreement shall be automatically extended for successive one-year periods, <u>provided</u>, <u>however</u>, that either party hereto may elect not to extend this Agreement by giving written notice to the other party at least sixty (60) days

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prior to any such anniversary date. Notwithstanding the foregoing, the Executive's employment hereunder may be earlier terminated in accordance with <u>Section</u> <u>6</u> hereof, subject to <u>Section</u> <u>7</u> hereof. The period of time between the Effective Date and the termination of the Executive's employment hereunder shall be referred to herein as the "<u>Employment Term</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. BASE SALARY**. The Company agrees to pay the Executive a base salary at an annual rate of not less than $350,000, payable in accordance with the regular payroll practices of the Company, but not less frequently than monthly. The Executive's Base Salary shall be subject to annual review by the Board (or a committee thereof), and may be increased, but not decreased (unless such decrease is part of a company-wide or management-wide reduction), from time to time by the Board. The base salary as determined herein and as may be increased from time to time shall constitute "<u>Base Salary</u>" for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. ANNUAL BONUS.** For each fiscal year of the Company during the Employment Term the Executive shall be eligible to receive an annual bonus (the "<u>Annual Bonus</u>") with a target amount of no less than one hundred percent (100%) of the Executive's Base Salary (the "<u>Target Annual Bonus</u>"), payable in a combination of cash and/or equity awards, as determined by the Board (or authorized committee thereof) in its sole discretion. The value of any equity awards shall be calculated based on the grant date fair value of such awards. The Board (or such authorized committee) shall determine in its sole discretion the amount, form(s) and mix, and such other terms and conditions (including vesting, exercise and settlement) applicable to any such equity award, taking into account the Executive's and the Company's performance; provided, however, that the form(s), mix, terms and conditions shall be reasonably consistent in all material respects as those provided to other senior executives of the Company unless otherwise agreed to by the Executive. Any Annual Bonus for a fiscal year of the Company shall be paid in the next succeeding fiscal year on or before March 15 of such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. EMPLOYEE BENEFITS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **BENEFIT PLANS**. During the Employment Term, the Executive shall be eligible to participate in any employee benefit plan that the Company has adopted or may adopt, maintain or contribute to for the benefit of its employees generally, subject to satisfying the applicable eligibility requirements, except to the extent such plans are duplicative of the benefits otherwise provided hereunder. The Executive's participation will be subject to the terms of the applicable plan documents and generally applicable Company policies in effect from time to time. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **VACATIONS**. During the Employment Term, the Executive shall be entitled to paid vacation in accordance with the plans, policies, programs and practices of the Company applicable to its similarly situated senior executives, as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **BUSINESS EXPENSES**. Upon presentation of reasonable substantiation and documentation as the Company may specify from time to time, the Company shall pay or the Executive shall be reimbursed in accordance with the Company's expense reimbursement policy in effect from time to time, for all reasonable out-of-pocket business expenses incurred by the

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Executive during the Employment Term and in connection with the performance of the Executive's duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. TERMINATION**. The Executive's employment and the Employment Term shall terminate on the first of the following to occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **DISABILITY**. Upon ten (10) days' prior written notice by the Company to the Executive of termination due to Disability. For purposes of this Agreement, "<u>Disability</u>" means, a condition entitling the Executive to receive benefits under a long-term disability plan of the Company or an Affiliate in which such Executive is eligible to participate, or, in the absence of such a plan, a permanent and total disability as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"). A Disability shall only be deemed to occur if the Executive has been unable to perform the Executive's principal duties and responsibilities hereunder for ninety (90) consecutive days or one hundred and twenty (120) days during any period of three hundred and sixty-five (365) consecutive calendar days. Notwithstanding the foregoing, for payments that are subject to Code Section 409A (as defined in <u>Section</u> <u>24</u> hereof), Disability shall mean that the Executive is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **DEATH**. Automatically upon the date of death of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **CAUSE**. Immediately upon written notice by the Company to the Executive of a termination for Cause. "<u>Cause</u>" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Executive's continued and willful failure to substantially perform his duties (other than as a result of Disability), which continues beyond fifteen (15) days after a written demand for substantial performance is delivered by the Board that specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) grossly negligent or illegal conduct, or gross misconduct, by the Executive that is reasonably likely to result in material damage to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Executive's conviction of, or the plea of guilty or nolo contendere or the equivalent in respect to, any felony or a misdemeanor involving an act of dishonesty, moral turpitude, deceit or fraud; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Executive's material breach of any non-competition, non-solicitation, confidentiality, non-disparagement or other restrictive covenant provision relating to the Company, which breach is not cured (if capable of cure) within fifteen (15) days following notice of such breach provided by the Company that specifically identifies the manner in which the Company believes that the Executive breached any such provisions.

In order to terminate the Executive's employment for Cause, the Company must provide the Executive with written notice of its intention to terminate the Executive's employment for Cause setting forth in reasonable detail the specific conduct allegedly constituting Cause and the specific provisions of this Agreement on which such claim is based.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **WITHOUT CAUSE**. Upon thirty (30) days advance written notice by the Company to the Executive of an involuntary termination without Cause (other than for death or Disability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **GOOD REASON**. Upon written notice by the Executive to the Company of a termination for Good Reason. "<u>Good Reason</u>" shall mean the occurrence of any of the following events, without the express written consent of the Executive, unless such events are fully corrected in all material respects by the Company within thirty (30) days following written notification by the Executive to the Company of the occurrence of one of the reasons set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in the Executive's titles, duties or authorities, including (A) a change in the Executive's reporting such that he no longer reports directly to the Chief Financial Officer, Treasurer and Secretary of the Company and (B) any material diminution in duties and/or authorities such that the Executive no longer has such duties and/or authorities typically associated with the Chief Accounting Officer of a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution in the Executive's Base Salary (unless such diminution is part of a company-wide or management-wide reduction) or a material diminution in the Executive's Target Annual Bonus opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material breach of this Agreement by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a relocation of the Executive's primary office location by more than thirty (30) miles if such relocation materially increases the Executive's commute.

The Executive shall provide the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within forty-five (45) days after the Executive first has notice of the first occurrence of such circumstances, and, to the extent uncured, actually terminate employment within thirty (30) days following the expiration of the Company's thirty (30)-day cure period described above. Otherwise, any claim of such circumstances as "Good Reason" shall be deemed irrevocably waived with respect to such circumstance by the Executive and no such termination for Good Reason shall be deemed to occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **WITHOUT GOOD REASON**. Upon thirty (30) days' prior written notice by the Executive to the Company of the Executive's voluntary termination of employment without Good Reason (which the Company may, in its sole discretion, make effective earlier than any notice date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **EXPIRATION OF EMPLOYMENT TERM; NON-EXTENSION OF AGREEMENT**. Upon the expiration of the Employment Term due to the delivery of a non-extension notice by the Company or the Executive in accordance with <u>Section</u> <u>2</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. CONSEQUENCES OF TERMINATION**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **DEATH**. In the event that the Executive's employment and the Employment Term end on account of the Executive's death, the Executive or the Executive's estate, as the case may be, shall be entitled to the following (with the amounts due under <u>Sections 7(a)(i)</u>

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through <u>7(a)(iii)</u> and <u>7(a)(v)</u> hereof to be paid within sixty (60) days following termination of employment, or such earlier date as may be required by applicable law):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any unpaid Base Salary through the date of termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reimbursement for any unreimbursed business expenses incurred through the date of termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any accrued but unused vacation time in accordance with Company policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all other payments, benefits or fringe benefits to which the Executive shall be entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant or this Agreement, payable in accordance with the terms of each such plan, program, or grant or as provided in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a pro-rata portion of the Executive's Target Annual Bonus for the fiscal year in which the Executive's termination occurs (determined by multiplying the amount of such bonus which would be due for the full fiscal year by a fraction, the numerator of which is the number of days during the fiscal year of termination that the Executive is employed by the Company and the denominator of which is 365), payable within thirty (30) days of the Executive's termination of employment in cash (the "<u>Pro Rata Bonus</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the earned Annual Bonus for any completed fiscal year ending prior to the date of termination, to the extent not previously paid payable in cash or fully-vested and freely tradeable shares of the Company's common stock, as determined by the Board in its sole discretion as and when such Annual Bonus would have been paid had the Executive's employment not terminated (the "<u>Prior Year Bonus</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) subject to (A) the Executive's (or his covered dependents') timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("<u>COBRA</u>") and (B) the Executive's (or, if applicable, his estate's) continued compliance with the obligations in <u>Sections 8</u>, <u>9</u> and <u>10</u> hereof, reimbursement of the Executive's COBRA premiums at the same level (including coverage for dependents, if applicable) and cost as if the Executive were an employee of the Company (excluding, for purposes of calculating cost, an employee's ability to pay premiums with pre-tax dollars) participating in the Company's group health plan for eighteen (18) months; <u>provided</u> that the Company may modify the continuation coverage contemplated by this <u>Section</u> <u>7(a)(vii)</u> to the extent reasonably necessary to avoid the imposition of any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and/or the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable) or to the extent necessary to comply with Code Section 409A under Treasury Regulation Section 1.409A-1(a)(5), in each case, in a manner with the least economic impact to the Executive (or his covered dependents); and <u>provided</u>, <u>further</u>, that in the event that the Executive obtains other employment that offers comparable group health benefits, such reimbursements by the Company under this <u>Section</u> <u>7(a)(vii)</u> shall immediately cease (the benefits described in this <u>Section</u> <u>7(a)(vii)</u>, the "<u>COBRA Reimbursement</u>"); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) provided that the Executive 's estate or beneficiaries shall have executed and delivered to the Company a general release pursuant to Section 8 and any period for rescission of such general release shall have expired without the Executive having rescinded such general release, any unvested equity award granted under the PubCo 2026 Equity Incentive Plan (as may be amended and restated from time to time, the "<u>2026 Plan</u>") or any successor equity incentive plan thereto (1) that is subject solely to a time-based vesting condition will accelerate and vest in full on the Executive's termination of employment and (2) that is subject to subsequent performance-based vesting conditions shall remain outstanding and continue to be eligible to vest in accordance with the performance metrics set forth in the applicable award agreement (the "<u>Equity Acceleration</u>").

Collectively, <u>Sections 7(a)(i)</u> through <u>7(a)(iv)</u> hereof shall be hereafter referred to as the "<u>Accrued Benefits</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **DISABILITY**. In the event that the Executive's employment and/or the Employment Term ends on account of the Executive's Disability, the Company shall pay or provide the Executive with the Accrued Benefits, the Pro Rata Bonus, the Prior Year Bonus and the COBRA Reimbursement and, provided that the Executive shall have executed and delivered to the Company a general release pursuant to Section 8 and any period for rescission of such general release shall have expired without the Executive having rescinded such general release, the Equity Acceleration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **TERMINATION FOR CAUSE OR WITHOUT GOOD REASON OR AS A RESULT OF A NON-EXTENSION OF THIS AGREEMENT BY THE EXECUTIVE OR AS A RESULT OF A NON-EXTENSION OF THIS AGREEMENT BY THE COMPANY AND WAIVER OF SECTION 9(b) BY THE COMPANY**. If the Executive's employment is terminated (I) by the Company for Cause, (II) by the Executive without Good Reason, (III) as a result of the Executive's non-extension of the Employment Term as provided in <u>Section</u> <u>2</u> hereof, or (IV) as a result of the Company's non-extension of the Employment Term as provided in <u>Section</u> <u>2</u> hereof and in the notice provided in accordance with <u>Section</u> <u>2</u> the Company states that it is waiving enforcement of, and the Executive shall have no obligation under, <u>Section</u> <u>9(b)</u> hereof, the Company shall pay to the Executive the Accrued Benefits. In addition to the Accrued Benefits, in the event of a termination as a result of Company's non-extension of the Employment Term pursuant to Section 7(c)(IV), the Executive shall be entitled to be paid a Pro Rata Bonus, the Prior Year Bonus, and the COBRA Reimbursement, as well as the Equity Acceleration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **TERMINATION WITHOUT CAUSE OR FOR GOOD REASON OR AS A RESULT OF A NON-EXTENSION OF THIS AGREEMENT BY THE COMPANY WITH NO WAIVER OF SECTION 9(b)**. If the Executive's employment by the Company is terminated (I) by the Company other than for Cause, (II) by the Executive for Good Reason, or (III) as a result of the Company's non-extension of the Employment Term as provided in <u>Section</u> <u>2</u> hereof and the Company does not state in the notice provided in accordance with <u>Section</u> <u>2</u> that it is waiving enforcement of, and the Executive shall have no obligation under, <u>Section</u> <u>9(b)</u> hereof, subject to the provisions of <u>Section</u> <u>24</u> hereof, the Company shall pay to the Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Accrued Benefits;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to the Executive's continued compliance with the obligations in Sections 8, 9 and 10 hereof, the Pro Rata Bonus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to the Executive's continued compliance with the obligations in Sections 8, 9 and 10 hereof, an amount equal to the product of (A) the Severance Multiple and (B) the sum of (I) the Executive's Base Salary and (II) the average Annual Bonus earned with respect to each of the last three consecutive completed calendar years immediately preceding the date of termination (or during such shorter actual time of employment, as applicable, with such amount payable (or, to the extent applicable, deliverable) in a single lump sum within ten (10) business days following the Release Effective Date (as defined in Section 8 hereof); provided that each payment made pursuant to this Section is intended to qualify as a short-term deferral within the meaning of Treasury Regulation Section 1.409A-1(b)(4) or as a separation pay plan payment within the meaning of Treasury Regulation Section 1.409A-1(b)(9), and shall be interpreted and administered accordingly; provided, further, that to the extent that the payment of any amount constitutes "nonqualified deferred compensation" for purposes of Code Section 409A (as defined in <u>Section</u> <u>24</u> hereof), any such payment scheduled to occur during the first sixty (60) days following the termination of employment shall not be paid until the first regularly scheduled pay period following the sixtieth (60<sup>th</sup>) day following such termination and shall include payment of any amount that was otherwise scheduled to be paid prior thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Prior Year Bonus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the COBRA Reimbursement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) with respect to any unvested equity award granted under the 2026 Plan or any successor equity incentive plan thereto (1) that is subject solely to a time-based vesting condition, a prorated portion of such award that would have become vested as of the next vesting date immediately following the date of Executive's termination of employment shall become vested upon such date of termination, calculated based on multiplying the number of shares which would have become vested as of such next vesting date pursuant to such award by a fraction, the numerator of which is (x) the number of completed months for which Executive was employed during the period beginning on the prior vesting date (or grant date if no vesting date has occurred) and ending on the date of termination, and the denominator of which is (y) the number of months in the applicable vesting period, and (2) that is subject to subsequent performance-based vesting conditions shall remain outstanding and eligible to vest based on actual performance achievement in accordance with the performance metrics set forth in the applicable award agreement; provided that the number of shares subject to such award that vest and are paid/settled on such date(s) shall be pro-rated by a fraction, the numerator of which is the number of days elapsed from the beginning of the performance period applicable to such award through and including the date of Executive's termination of employment and the denominator of which is the total number of days comprising the full performance period applicable to such award.

Payments and benefits provided in this <u>Section</u> <u>7(d)</u> shall be in lieu of any termination or severance payments or benefits for which the Executive may be eligible under any of the plans, policies or programs of the Company or under the Worker Adjustment Retraining Notification Act of 1988 or any similar state statute or regulation.

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For the purposes of this Agreement, the "<u>Severance Multiple</u>" shall mean two (2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **TERMINATION IN CONNECTION WITH A CHANGE IN CONTROL**. Notwithstanding the foregoing, if the Executive's employment is terminated pursuant to Section 7(d) on or within twenty-four (24) months following a Change in Control (as defined in the <u>2026 Plan)</u>, and provided that the Executive shall have executed and delivered to the Company a general release pursuant to Section 8 and any period for rescission of such general release shall have expired without the Executive having rescinded such general release, in addition to the payments or benefits pursuant to Section 7(d), any unvested equity award (i) that is subject solely to a time-based vesting condition will accelerate and vest in full and (ii) that is subject to subsequent performance-based vesting conditions shall vest and be settled at the greater of target and actual performance, each as of the Executive's termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **OTHER OBLIGATIONS**. Upon any termination of the Executive's employment with the Company, the Executive shall be deemed to have resigned from any position as an officer, director or fiduciary of any Company-related entity, and shall execute any documentation as requested by the Company to effectuate the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **EXCLUSIVE REMEDY**. The amounts payable to the Executive following termination of employment and the Employment Term hereunder pursuant to <u>Sections 6</u> and <u>7</u> hereof shall be in full and complete satisfaction of the Executive's rights under this Agreement and any other claims that the Executive may have in respect of the Executive's employment with the Company or any of its Affiliates, and the Executive acknowledges that such amounts are fair and reasonable, and are the Executive's sole and exclusive remedy, in lieu of all other remedies at law or in equity, with respect to the termination of the Executive's employment hereunder or any breach of this Agreement. Notwithstanding the foregoing, any equity awards subject to performance-based vesting conditions shall continue to be treated in accordance with the terms of the applicable grant agreements, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. RELEASE; NO MITIGATION; NO SET-OFF**. Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement beyond the Accrued Benefits and any Prior Year Bonus shall only be payable if the Executive (or, if applicable, Executive's estate or beneficiary) delivers to the Company and does not revoke a general release of claims in favor of the Company in substantially the form attached on <u>Exhibit A</u> hereto. Such release shall be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following termination (the "<u>Release Effective Date</u>"). In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Executive as a result of employment by a subsequent employer, except as provided in <u>Section</u> <u>7(a)(vii)</u> hereof. The Company's obligations to pay the Executive amounts hereunder shall not be subject to set-off, counterclaim or recoupment of amounts owed by the Executive to the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. RESTRICTIVE COVENANTS**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **CONFIDENTIALITY**. During the course of the Executive's employment with the Company, the Executive will have access to Confidential Information. For purposes of this Agreement, "<u>Confidential Information</u>" means all data, information, ideas, concepts, discoveries, trade secrets, inventions (whether or not patentable or reduced to practice), innovations, improvements, know-how, developments, techniques, methods, processes, treatments, drawings, sketches, specifications, designs, plans, patterns, models and strategies, and all other confidential or proprietary information or trade secrets in any form or medium (whether merely remembered or embodied in a tangible or intangible form or medium) whether now or hereafter existing, relating to or arising from the past, current or potential business, activities and/or operations of the Company or any of its Affiliates, including, without limitation, any such information relating to or concerning finances, sales, marketing, advertising, transition, promotions, pricing, personnel, customers, suppliers, vendors, partners and/or competitors. The Executive agrees that, except as provided in <u>Section</u> <u>11</u> hereof, the Executive shall not, directly or indirectly, use, make available, sell, disclose or otherwise communicate to any person, other than in the course of the Executive's assigned duties and for the benefit of the Company and its subsidiaries and Affiliates, either during the period of the Executive's employment or at any time thereafter, any Confidential Information or other confidential or proprietary information received from third parties subject to a duty on the Company's and its subsidiaries' and Affiliates' part to maintain the confidentiality of such information, and to use such information only for certain limited purposes, in each case, which shall have been obtained by the Executive during the Executive's employment by the Company (or any predecessor). The foregoing shall not apply to information that (i) was known to the public prior to its disclosure to the Executive; (ii) becomes generally known to the public subsequent to disclosure to the Executive through no wrongful act of the Executive or, to the knowledge of the Executive, any third party; (iii) is independently developed by Executive, or comes into possession of the Executive, other than in connection with his employment hereunder; or (iv) the Executive is required to disclose by applicable law or regulation, or a valid order or subpoena or request issued by a court of competent jurisdiction or an authorized governmental or regulatory agency, provided that the Executive, unless such notice is prohibited, provides the Company with prior notice of the contemplated disclosure promptly upon learning of such requirement, and reasonably in advance of such disclosure, (A) discloses only that portion of the Confidential Information that is legally required to be disclosed, (B) uses reasonable efforts to ensure that such disclosure is afforded confidential treatment, and (C) cooperates with the Company at the Company's expense in seeking a protective order or other appropriate protection of such information. For purposes of this Agreement, "<u>Affiliate</u>" means, with respect to any entity, any other entity that directly or indirectly controls, is controlled by, or is under common control with such entity, whether existing on the date hereof or hereafter acquired or formed; provided, however, that no portfolio company or investment of any direct or indirect equityholder of the Company shall be deemed an Affiliate of the Company solely by virtue of sharing a common investor. For purposes of this definition, "control" (including the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies, whether through ownership of voting securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **NONCOMPETITION**. The Executive acknowledges that (i) the Executive performs services of a unique nature for the Company that are irreplaceable, and that the Executive's performance of such services to a competing business would result in irreparable harm to the Company, (ii) the Executive has had and will continue to have access to Confidential

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Information which, if disclosed, would unfairly and inappropriately assist in competition against the Company or any of its Affiliates, (iii) in the course of the Executive's employment by a competitor, the Executive would inevitably use or disclose Confidential Information, (iv) the Company and its Affiliates have substantial relationships with their customers and the Executive has had and will continue to have access to these customers, (v) the Executive has received and will receive specialized training from the Company and its Affiliates, (vi) the Executive has generated and will continue to generate goodwill for the Company and its Affiliates in the course of the Executive's employment, and (vii) the restrictive covenants set forth herein are supported by adequate consideration, including the Company's agreement to provide the compensation, benefits, and severance payments set forth in this Agreement. Accordingly, during the Employment Term and the Restricted Period (as defined below), the Executive agrees that the Executive will not engage in any Competitive Activities (as defined below), except to the extent permissible pursuant to a Permitted Activity, in any basin or location in which the Company or any of its subsidiaries operates and owns any Hydrocarbon Interests (as defined below). Notwithstanding the foregoing, nothing herein shall prohibit the Executive from being a passive owner of not more than one percent (1%) of the equity securities of a publicly traded corporation engaged in a business that is in competition with the Company or any of its subsidiaries or Affiliates, so long as the Executive has no active participation in the business of such corporation, or owning a passive investment in any mutual, private equity or hedge fund or similar pooled investment vehicle. For the purposes of this Agreement, (A) "<u>Competitive Activities</u>" shall mean owning any interest in, participating in (whether as a director, officer, employee, member, or partner), consulting with, rendering services for (including as an employee or independent contractor), or in any manner engaging in any business or enterprise involving or related to the acquisition, ownership, or operation of Hydrocarbon Interests; (B) "<u>Hydrocarbon Interests</u>" shall mean mineral and royalty assets and interests; and (C) "<u>Restricted Period</u>" means the period beginning on the Executive's last day of employment with the Company and ending (I) on the second anniversary thereof, if such termination of employment occurs prior to the expiration of the Initial Term and (II) on the first anniversary thereof, if such termination occurs upon or after the expiration of the Initial Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **NONSOLICITATION; NONINTERFERENCE**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During the Employment Term and the Restricted Period, the Executive agrees that the Executive shall not, except in the furtherance of the Executive's duties hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, solicit, aid or induce any customer of the Company or any of its subsidiaries or Affiliates to cease or reduce doing business with the Company or any of its subsidiaries or Affiliates, or to purchase goods or services then sold by the Company or any of its subsidiaries or Affiliates from another person, firm, corporation or other entity or assist or aid any other persons or entity in identifying or soliciting any such customer or interfere in any way with the business relationship between any customer of the Company and the Company or any of its subsidiaries or Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Employment Term and the Restricted Period, the Executive agrees that the Executive shall not, except in the furtherance of the Executive's duties hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, (A) solicit, aid or induce any employee, representative or agent of the Company or any of its subsidiaries or Affiliates to leave such employment or retention or to accept employment with

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or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company or hire or retain any such employee, representative or agent, or take any action to materially assist or aid any other person, firm, corporation or other entity in identifying, hiring or soliciting any such employee, representative or agent, or (B) interfere, or aid or induce any other person or entity in interfering, with the relationship between the Company or any of its subsidiaries or Affiliates and any of their respective vendors, joint venturers or licensors. An employee, representative or agent shall be deemed covered by this <u>Section</u> <u>9(c)(ii)</u> while so employed or retained and for a period of six (6) months thereafter. Notwithstanding the foregoing, a general solicitation that is not targeted at employees, representatives, or agents of the Company shall not constitute a breach of this <u>Section</u> <u>9(c)(ii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **NONDISPARAGEMENT**. Except as provided in <u>Section</u> <u>11</u> hereof, the Executive agrees not to make negative comments or otherwise disparage the Company or its officers, directors, employees, or products other than to the extent necessary in the good faith performance of the Executive's duties to the Company while the Executive is employed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **INVENTIONS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Executive acknowledges and agrees that all ideas, methods, inventions, discoveries, improvements, work products, developments, software, know-how, processes, techniques, works of authorship and other work product, whether patentable or unpatentable, (A) that are reduced to practice, created, invented, designed, developed, contributed to and/or within the scope of the Executive's work with the Company or that relate to the business, operations or actual or demonstrably anticipated research or development of the Company, and that are made or conceived by the Executive, solely or jointly with others, during the Employment Term and that are not made or conceived by the Executive, solely or jointly with others, in performance of any Permitted Activities, or (B) suggested by any work that the Executive performs in connection with the Company while performing the Executive's duties with the Company shall belong exclusively to the Company (or its designee), whether or not patent or other applications for intellectual property protection are filed thereon (the "<u>Inventions</u>"). The Executive will keep full and complete written records (the "<u>Records</u>"), in the manner prescribed by the Company, of all Inventions, and will promptly disclose all Inventions completely and in writing to the Company. The Records shall be the sole and exclusive property of the Company, and the Executive will surrender them upon the termination of the Employment Term, or upon the Company's request. The Executive irrevocably conveys, transfers and assigns to the Company the Inventions and all patents or other intellectual property rights that may issue thereon in any and all countries, whether during or subsequent to the Employment Term, together with the right to file, in the Executive's name or in the name of the Company (or its designee), applications for patents and equivalent rights (the "<u>Applications</u>"). The Executive will, at any time during and subsequent to the Employment Term, make such applications, sign such papers, take all rightful oaths, and perform all other acts as may be requested from time to time by the Company to perfect, record, enforce, protect, patent or register the Company's rights in the Inventions, all without additional compensation to the Executive from the Company but at the Company's sole expense. The Executive will also execute assignments to the Company (or its designee) of the Applications, and give the Company and its attorneys all reasonable

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assistance (including the giving of testimony) to obtain the Inventions for the Company's benefit, all without additional compensation to the Executive from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition, the Inventions will be deemed Work for Hire, as such term is defined under the copyright laws of the United States, on behalf of the Company and the Executive agrees that the Company will be the sole owner of the Inventions, and all underlying rights therein, in all media now known or hereinafter devised, throughout the universe and in perpetuity without any further obligations to the Executive. If the Inventions, or any portion thereof, are deemed not to be Work for Hire, or the rights in such Inventions do not otherwise automatically vest in the Company, the Executive hereby irrevocably conveys, transfers and assigns to the Company, all rights, in all media now known or hereinafter devised, throughout the universe and in perpetuity, in and to the Inventions, including, without limitation, all of the Executive's right, title and interest in the copyrights (and all renewals, revivals and extensions thereof) to the Inventions, including, without limitation, all rights of any kind or any nature now or hereafter recognized, including, without limitation, the unrestricted right to make modifications, adaptations and revisions to the Inventions, to exploit and allow others to exploit the Inventions and all rights to sue at law or in equity for any infringement, or other unauthorized use or conduct in derogation of the Inventions, known or unknown, prior to the date hereof, including, without limitation, the right to receive all proceeds and damages therefrom. In addition, the Executive hereby waives any so-called "moral rights" with respect to the Inventions. To the extent that the Executive has any rights in the results and proceeds of the Executive's service to the Company that cannot be assigned in the manner described herein, the Executive agrees to unconditionally waive the enforcement of such rights. The Executive hereby waives any and all currently existing and future monetary rights in and to the Inventions and all patents and other registrations for intellectual property that may issue thereon including, without limitation, any rights that would otherwise accrue to the Executive's benefit by virtue of the Executive being an employee of or other service provider to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **RETURN OF COMPANY PROPERTY**. Promptly following the Executive's termination of employment with the Company for any reason (or at any time prior thereto at the Company's request), the Executive shall return all property belonging to the Company or its Affiliates (including, but not limited to, any Company-provided laptops, computers, cell phones, wireless electronic mail devices or other equipment, or documents and property belonging to the Company). The Executive may retain the Executive's Outlook contacts and calendar (or similar items) provided that such items only include contact and calendar information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **REASONABLENESS OF COVENANTS**. In signing this Agreement, the Executive gives the Company assurance that the Executive has carefully read and considered all of the terms and conditions of this Agreement, including the restraints imposed under this <u>Section</u> <u>9</u> hereof. The Executive agrees that these restraints are necessary for the reasonable and proper protection of the Company and its Affiliates and their Confidential Information and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area, and that these restraints, individually or in the aggregate, will not prevent the Executive from obtaining other suitable employment during the period in which the Executive is bound by the restraints. The Executive agrees that, before providing services, whether as an employee or consultant, to any entity during the period of time that the Executive is subject to the constraints in <u>Section</u> <u>9(a)</u> hereof, the Executive will provide a copy of <u>Section</u> <u>9</u> of this

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Agreement to such entity. The Executive acknowledges that each of these covenants has a unique, very substantial and immeasurable value to the Company and its Affiliates and that the Executive has sufficient assets and skills to provide a livelihood while such covenants remain in force. The Executive further covenants that the Executive will not challenge the reasonableness or enforceability of any of the covenants set forth in this <u>Section</u> <u>9</u>, and that the Executive will reimburse the Company and its Affiliates for all costs (including reasonable attorneys' fees) incurred in connection with any action to enforce any of the provisions of this <u>Section</u> <u>9</u> if either the Company and/or its Affiliates prevails on any material issue involved in such dispute or if the Executive challenges the reasonableness or enforceability of any of the provisions of this <u>Section</u> <u>9</u>. It is also agreed that each of the Company's Affiliates will have the right to enforce all of the Executive's obligations to that Affiliate under this Agreement, including without limitation pursuant to this <u>Section</u> <u>9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **REFORMATION**. If it is determined by a court of competent jurisdiction in any state that any restriction in this <u>Section</u> <u>9</u> is excessive in duration or scope or is unreasonable or unenforceable under applicable law, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the laws of that state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **TOLLING**. In the event of any violation of the provisions of this <u>Section</u> <u>9</u>, the Executive acknowledges and agrees that the post-termination restrictions contained in this <u>Section</u> <u>9</u> shall be extended by a period of time equal to the period of such violation, it being the intention of the parties hereto that the running of the applicable post-termination restriction period shall be tolled during any period of such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **SURVIVAL OF PROVISIONS**. The obligations contained in <u>Sections 9</u> and <u>10</u> hereof shall survive the termination or expiration of the Employment Term and the Executive's employment with the Company and shall be fully enforceable thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **RESTRICTIONS ON RESALE**. In addition to any restrictions on transfer set forth in the Amended and Restated Agreement of Limited Partnership of OpCo (the "Operating Agreement"), without the prior written consent of a majority of independent directors of PubCo, the Executive shall not offer, sell, contract to sell or otherwise transfer or dispose of any of the Common Units (as defined in the Operating Agreement) or shares of Class A Common Stock (as defined in the Operating Agreement) received in exchange therefor, or securities convertible or exchangeable or exercisable for any of the Common Units or shares of Class A Common Stock, or enter into any swap, hedge, or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Units or shares of Class A Common Stock for a period of twelve (12) months commencing on the date of consummation of PubCo's initial public offering of shares of Class A Common Stock (the "IPO Date") (such period, the "Lockup Period"); provided, however, that nothing in this paragraph shall prohibit the Executive from (i) distributing Common Units to the Executive's Relatives (as defined in the Operating Agreement) received as consideration in connection with this Agreement or any other arrangement, provided such Relatives agree in writing to the restrictions of this Section 9(k), or (ii) pledging such Common Units or shares of Class A Common Stock, provided such pledgee agrees in writing to the restrictions of this Section 9(k). The foregoing restrictions shall not apply to transfers by the Executive to the Executive's Affiliates, successors or any trust, family partnership or family

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limited liability company established for the benefit of the Executive or the Executive's Relatives, so long as such transferee agrees in writing to be bound by the terms of this Section 9(k). Notwithstanding the foregoing or any other provision in this Agreement to the contrary, (i) the provisions of this Section 9(k) shall cease to be in effect upon the closing of a General Partner Change of Control (as defined in the Operating Agreement), and (ii) following the Lockup Period, in the event the Executive shall die while holding Common Units or shares of Class A Common Stock, such Common Units or shares of Class A Common Stock shall be immediately and freely transferable, subject to applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. COOPERATION**. Upon the receipt of reasonable notice from the Company or its outside counsel, the Executive agrees that while employed by the Company and thereafter, the Executive will respond and provide information with regard to matters in which the Executive has knowledge as a result of the Executive's employment with the Company, and will provide reasonable assistance to the Company, its Affiliates and their respective representatives in defense of any claims that may be made against the Company or its Affiliates (other than any claims asserted by the Executive), and will assist the Company and its Affiliates in the prosecution of any claims that may be made by the Company or its Affiliates (other than any claims that may be asserted against the Executive), to the extent that such claims may relate to the period of the Executive's employment with the Company (collectively, the "<u>Claims</u>"). The Executive agrees to promptly inform the Company if the Executive becomes aware of any lawsuits involving Claims that may be filed or threatened against the Company or its Affiliates. The Executive also agrees to promptly inform the Company (to the extent that the Executive is legally permitted to do so) if the Executive is asked to assist in any investigation of the Company or its Affiliates (or their actions) or another party attempts to obtain information or documents from the Executive (other than in connection with any litigation or other proceeding in which the Executive is a party-in-opposition) and the Executive shall not provide such information or documents except with the prior written consent of the Company or its counsel or as required by applicable law, regulation or legal process. If the Executive is required by law, regulation, or legal process to provide information or testimony, the Executive shall, unless prohibited by law, provide prompt written notice to the Company so that the Company may seek a protective order or other appropriate remedy. Upon presentation of appropriate documentation, the Company shall pay or reimburse the Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses and all reasonable legal expenses incurred by the Executive in complying with this <u>Section</u> <u>10</u>. To the extent such cooperation occurs subsequent to the termination of the Executive's employment (and, if the Executive received payment pursuant to <u>Section</u> <u>7(d)(iii)</u>, hereof, subsequent to the expiration of a number of years thereafter equal to the Severance Multiple), the Company shall compensate the Executive for such cooperation at a daily rate equal to (i) the sum of the Executive's final Base Salary divided by (ii) 365.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. PROTECTED ACTIVITY**. Notwithstanding anything to the contrary contained herein, no provision of this Agreement shall be interpreted so as to impede the Executive from (i) reporting possible violations of federal, state or local law or regulation (including, without limitation, laws relating to fraud, securities, harassment, discrimination, or retaliation) to, or discussing any possible violations with, any governmental agency or entity or self-regulatory organization, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, any agency Inspector General, and FINRA, or making other disclosures under the whistleblower provisions of federal law or regulation, without the prior

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authorization of the Company to make any such reports or disclosures and the Executive shall not be required to notify the Company that such reports or disclosures have been made; (ii) making truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings), (iii) any disclosure or communication made by the Executive in connection with any report or complaint to a federal, state or local governmental or law enforcement agency or body (including, but not limited to, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the Department of Justice), (iv) any disclosure or communication protected under whistleblower provisions of applicable federal, state or local law, or (v) any other disclosure or communication that is required by law. 18 U.S.C. § 1833(b) provides: "An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal." Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Accordingly, the parties to this Agreement have the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. The parties also have the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. EQUITABLE RELIEF AND OTHER REMEDIES**. The Executive acknowledges and agrees that the Company's remedies at law for a breach or threatened breach of any of the provisions of <u>Section</u> <u>9</u> or <u>Section</u> <u>10</u> hereof would be inadequate and, in recognition of this fact, the Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond or other security, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available, without the necessity of showing actual monetary damages. In the event of a violation by the Executive of <u>Section</u> <u>9</u> or <u>Section</u> <u>10</u> hereof, any severance being paid to the Executive pursuant to this Agreement or otherwise shall immediately cease, and any severance previously paid to the Executive shall be immediately repaid to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. NO ASSIGNMENTS**. This Agreement is personal to each of the parties hereto. Except as provided in this <u>Section</u> <u>13</u> hereof, no party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the other party hereto. The Company may assign this Agreement to any successor to all or substantially all of the business and/or assets of the Company, <u>provided</u> that the Company shall require such successor to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, "<u>Company</u>" shall mean the Company and any successor to its business and/or assets, which assumes and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. NOTICE**. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery, if delivered by hand, (b) on the date of transmission, if delivered by confirmed facsimile or electronic mail, (c) on the first business day following the date of deposit, if delivered by guaranteed overnight delivery service, or (d) on the fourth business day following the date delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Executive:

At the address (or to the e-mail address or facsimile number) shown in the books and records of the Company.

If to the Company:

2000 Market Street, Suite 910

Philadelphia, PA 19103

Attention: General Counsel

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. SECTION HEADINGS; INCONSISTENCY**. The section headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of the Company, the terms of this Agreement shall govern and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. SEVERABILITY**. The provisions of this Agreement shall be deemed severable. The invalidity or unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. COUNTERPARTS**. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. ARBITRATION**. Any dispute or controversy arising under or in connection with this Agreement or the Executive's employment with the Company shall be settled exclusively by confidential arbitration, conducted before a single arbitrator (as an individual, and not a class or collection action) in New York, New York in accordance with the American Arbitration Association Employment Arbitration Rules and Mediation Procedures (the "<u>Rules</u>") then in effect; provided, however, that the following claims are excluded from mandatory arbitration: (i) claims for injunctive or equitable relief under Section 12 hereof; (ii) claims of sexual assault, sexual harassment, or whistleblower retaliation under the Sarbanes-Oxley Act or the Dodd-Frank

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Act; and (iii) any other claim that cannot be subject to mandatory arbitration as a matter of law. A copy of the current version of the Rules is available at: https://www.adr.org/media/0vrpbnm0/2025_employment_arbitration_rules.pdf. To the fullest extent of the law, the arbitrator shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, formation, or enforceability of this Agreement, including but not limited to the arbitrability of any dispute between the parties. The decision of the arbitrator will be final and binding upon the parties hereto. Judgment may be entered on the arbitrator's award in any court having jurisdiction. The parties acknowledge and agree that in connection with any such arbitration, (a) the arbitration costs shall be borne entirely by the Company, (b) each party shall pay all of its own costs and expenses, except as otherwise required by applicable law, including, without limitation, its own legal fees and expenses, provided that the Company will reimburse the Executive for all costs (including reasonable attorneys' fees) incurred in a dispute if the Executive prevails on any material issue involved in such dispute, and (c) the arbitrator shall have no power to award punitive damages to either party, except where an applicable statute allows for punitive damages. The parties further agree that this arbitration provision is intended to be mutually binding and enforceable to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. INDEMNIFICATION**. The Company hereby agrees to indemnify the Executive and hold the Executive harmless to the greatest extent permitted by law or provided under the By-Laws of the Company against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including reasonable attorneys' fees), losses, and damages resulting from the Executive's good faith performance of the Executive's duties and obligations with the Company, and shall provide advancement of expenses to the greatest extent permitted under applicable law. This obligation shall survive the termination of the Executive's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. LIABILITY INSURANCE**. The Company shall purchase and maintain, at its own expense, directors' and officers' liability insurance and cover the Executive under such directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement which shall not be less favorable than the coverage provided to other senior executive officers and directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. GOVERNING LAW; WAIVER OF JURY TRIAL**. This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the State of New York (without regard to its choice of law provisions). **As a specifically bargained for inducement for each of the parties hereto to enter into this Agreement (after having the opportunity to consult with counsel), each party hereto expressly waives the right to trial by jury in any lawsuit or proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22. MISCELLANEOUS**. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer or director as may be designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or

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subsequent time. This Agreement together with all exhibits hereto sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes any and all prior agreements or understandings between the Executive and the Company with respect to the subject matter hereof. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23. REPRESENTATIONS**. The Executive represents and warrants to the Company that (a) the Executive has the legal right to enter into this Agreement and to perform all of the obligations on the Executive's part to be performed hereunder in accordance with its terms, and (b) the Executive is not a party to any agreement or understanding, written or oral, and is not subject to any restriction, which, in either case, could prevent the Executive from entering into this Agreement or impair in any way the performance of the Executive's duties and obligations hereunder. In addition, the Executive acknowledges that the Executive is aware of Section 304 (Forfeiture of Certain Bonuses and Profits) of the Sarbanes-Oxley Act of 2002 and the right of the Company to be reimbursed for certain payments to the Executive in compliance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24. TAX MATTERS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **WITHHOLDING**. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **DELIVERY OF SHARES ON NET BASIS**. In the event the Executive is to be issued shares of Class A common stock in accordance with any equity awards granted pursuant to this Agreement and the Executive is not able to sell a sufficient number of shares of Class A common stock to satisfy the Executive's applicable tax withholding obligations through a broker-assisted sale or other "sell-to-cover" mechanism, the Company shall, upon the Executive's election, retain a sufficient number of such shares to satisfy the Executive's tax withholding obligations and deliver the remaining shares on a net share settlement basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **SECTION 409A COMPLIANCE**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The intent of the parties is that payments and benefits under this Agreement be exempt from or otherwise comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively "<u>Code Section</u> <u>409A</u>"), and any ambiguity shall be interpreted in accordance with the foregoing to the maximum extent permitted. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Executive and the Company of the applicable provision without violating the provisions of Code Section 409A. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or

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benefits upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a "termination," "termination of employment" or like terms shall mean "separation from service." Notwithstanding anything to the contrary in this Agreement, if the Executive is deemed on the date of termination to be a "specified employee" within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a "separation from service," such payment or benefit shall not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such "separation from service" of the Executive, and (B) the date of the Executive's death, to the extent required under Code Section 409A to avoid imposition of any additional taxes or interest. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this <u>Section</u> <u>24(c)(ii)</u> (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. Any payments subject to Code Section 409A that are subject to execution of a waiver and release which may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such as termination of employment) occurs shall not commence payment prior to the calendar year in which the consideration period or, if applicable, release revocation period ends, as necessary to avoid additional taxes, penalties or interest under Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent that reimbursements or other in-kind benefits under this Agreement constitute "nonqualified deferred compensation" for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For purposes of Code Section 409A, the Executive's right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes "nonqualified deferred compensation" for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **EXCESS PARACHUTE PAYMENTS; LIMITATIONS ON PAYMENTS.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any other provision of this Agreement, if any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a termination of the Executive's employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, including the payments and benefits under <u>Section</u> <u>7</u>, being hereinafter referred to as the "<u>Total Payments</u>") would, but for this <u>Section</u> <u>24(d)</u>, be subject (in whole or part), to the excise tax imposed under Section 4999 of the Code (the "<u>Excise Tax</u>"), then, the Total Payments shall be reduced (but not below zero), to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). If the Total Payments are so reduced, the Company shall reduce or eliminate the Total Payments (A) by first reducing or eliminating the portion of the Total Payments which are not payable in cash (other than that portion of the Total Payments subject to clause (C)), (B) then by reducing or eliminating cash payments (other than that portion of the Total Payments subject to clause (C)) and (C) then by reducing or eliminating the portion of the Total Payments (whether payable in cash or not payable in cash) to which Treasury Regulation § 1.280G-1 Q/A 24(c) (or successor thereto) applies, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a "payment" within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of an independent, nationally recognized accounting firm (the "<u>Independent Advisors</u>") selected by the Company, does not constitute a "parachute payment" within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the "base amount" (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any determination required under this <u>Section</u> <u>24(d)</u>, including whether any payments or benefits are parachute payments, shall be made at the Company's expense by an independent public accounting firm that is mutually agreed by the Company and the Executive (the "<u>Accounting Firm</u>"), based upon reasonable, good faith assumptions and interpretations of Section 280G of the Code. The Executive and the Company shall provide the Accounting Firm

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with such information and documents as the Accounting Firm may reasonably request in order to make a determination under this <u>Section</u> <u>24(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25. SARBANES-OXLEY ACT OF 2002**. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that any transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section 13(k) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the "<u>Exchange Act</u>"), then such transfer or deemed transfer shall not be made to the extent necessary or appropriate so as not to violate the Exchange Act and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26. CLAWBACK**. Notwithstanding any other provisions in this Agreement, any payments made pursuant to this Agreement shall be subject to recovery or clawback by the Company under any applicable clawback policy adopted by the Company in accordance with the Securities and Exchange Commission regulations or other applicable law, and the Executive agrees to execute appropriate acknowledgements or other documentation as may be required pursuant to such policies from time to time.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement as of the date first written above.

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| |
|:---|
| **COMPANY** |
| By: |
| Name: |
| Title: |
| **EXECUTIVE** |

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**EXHIBIT A** 

**<u>GENERAL RELEASE</u>**

I, [___________], in consideration of and subject to the performance by WhiteHawk Minerals Corp., a Delaware incorporated company ("<u>PubCo</u>"), WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership ("<u>OpCo</u>" and together with PubCo and any subsidiaries or Affiliates as may employ Executive from time to time, the "<u>Company</u>"), of its obligations under the Employment Agreement dated as of [ • ], 2026 (the "Agreement") do hereby release and forever discharge as of the date hereof the Company and its respective Affiliates and all present, former and future managers, directors, officers, employees, agents, successors and assigns of the Company and its Affiliates and direct or indirect owners (collectively, the "<u>Released Parties</u>") to the extent provided below (this "<u>General Release</u>"). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1. My employment or service with the Company and its Affiliates terminated as of [ • ],
20[ • ], and I hereby resign from any position as an officer, member of the board of managers or directors (as applicable) or fiduciary of the Company or its Affiliates (or reaffirm any such resignation that may have already
occurred). I understand certain payments to me under <u>Section</u> <u>7</u> of the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I
understand and agree that I will not receive certain of the payments and benefits specified in <u>Section</u> <u>7</u> of the Agreement unless I execute this General Release and do not revoke this General Release within the time period
permitted hereafter. I understand and agree that such payments and benefits are subject to <u>Sections 9</u> and <u>10</u> of the Agreement, which (as noted below) expressly survive my termination of employment and the execution of this General
Release. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its Affiliates.

2. Except as provided in paragraphs 4 and 5 below and except for the provisions of the Agreement which
expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all
claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary
damages, other damages, claims for costs and attorneys' fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known
or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have against the Company or any of the Released Parties that arise out of or are
connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil

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Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys' fees incurred in these matters) (all of the foregoing collectively referred to herein as the "<u>Claims</u>"). <br>

3. I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or
other matter covered by paragraph 2 above.

4. I agree that this General Release does not waive or release any rights or claims that I may have under the
Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the
basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

5. I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or
all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am
not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; <u>provided</u>, <u>however</u>, that I disclaim and waive
any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Additionally, I am not waiving any claims or rights (i) to the Accrued Benefits or any severance benefits to
which I am entitled under the Agreement, (ii) relating to directors' and officers' liability insurance coverage or any right of indemnification or advancement of expenses under the Company's organizational documents, the
Agreement or otherwise, (iii) as an equity or security holder in the Company or its Affiliates, (iv) arising under <u>Section</u> <u>9(d)</u> of the Agreement, or (v) with respect to vested benefits under any of the
Company's benefit plans.

6. In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and
every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and
unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove
mentioned or implied. I

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acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described in paragraph 2 above as of the execution of this General Release. <br>

7. I agree that neither this General Release, nor the furnishing of the consideration for this General Release,
shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8. I agree that if I violate this General Release by suing the Company or the other Released Parties, I will
pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys' fees.

9. I agree that this General Release and the Agreement are confidential and agree not to disclose any
information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of
the foregoing not to disclose the same to anyone.

10. Any non-disclosure provision in this General Release does not
prohibit or restrict me (or my attorney) from discussing any issue with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self- regulatory
organization or any governmental entity.

11. I hereby acknowledge that <u>Sections</u> <u>7</u> through <u>14</u>, <u>19</u> through <u>22</u> and <u>24</u> through <u>26</u> of the Agreement shall survive my execution of this General Release.

12. I represent that I am not aware of any claim by me other than the claims that are released by this General
Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or
suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

13. Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish,
diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

14. Whenever possible, each provision of this General Release shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction, but this General Release

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shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

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BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I HAVE READ IT CAREFULLY;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO,
RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL
READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. I HAVE HAD AT LEAST **[21][45]** DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE
CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED [21][45]-DAY PERIOD;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS
RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO
ADVISE ME WITH RESPECT TO IT; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT
BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

SIGNED:     DATED:

## Exhibit 23.1

**Exhibit 23.1** 

**Consent of Independent Registered Public Accounting Firm** 

We consent to the use in this Amendment No. 2 to Registration Statement on Form S-1 of WhiteHawk Income Corporation (the "Company") of our report dated March 31, 2026, except for Note 3, as to which the date is May 6, 2026, relating to the consolidated financial statements of the Company (which report expresses an unqualified opinion and includes an explanatory paragraph relating to a restatement of the 2025 consolidated financial statements). We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Baker Tilly US, LLP

Dallas, Texas

May 26, 2026

## Exhibit 23.2

**Exhibit 23.2** 

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

We consent to the inclusion in this Registration Statement on Amendment No. 2 to Form S-1 of WhiteHawk Income Corporation and subsidiaries of our report dated March 31, 2025, relating to our audit of the consolidated financial statements of WhiteHawk Income Corporation and subsidiaries for the year ended December 31, 2024. We also consent to the reference to our firm under the heading "Experts" in this Registration Statement on Form S-1.

/s/ Whitley Penn LLP

Houston, Texas

May 26, 2026

## Exhibit 23.3

**Exhibit 23.3** 

**CONSENT OF INDEPENDENT AUDITOR** 

We consent to the use in this Registration Statement of our report dated January 20, 2026, relating to the financial statements of Three Rivers Royalty, LLC as of and for the years ended December 31, 2024 and 2023. We also consent to the reference to our firm under the caption "Experts" in this Prospectus.

/s/ Plante & Moran, PLLC

Denver, Colorado

May 26, 2026

## Exhibit 23.4

**Exhibit 23.4** 

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption "Experts" and to the use of our reports dated March 12, 2025, with respect to the financial statements of PHX Minerals, Inc. included in Amendment No. 2 to the Registration Statement (Form S-1) and related Prospectus of WhiteHawk Income Corporation for the registration of its common stock.

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| |
|:---|
|  /s/ Ernst & Young LLP |
|  Oklahoma City, Oklahoma |
|  May 26, 2026 |

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## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

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| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**WhiteHawk Income Corp**  |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Amount Registered**  | **Proposed Maximum Offering Price Per Unit**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A common stock | 457(a) | 4260046 | $27.00 | $115021242.00 | 0.0001381 | $15884.43 |
| Fees Previously Paid | 2 | Equity | Class A common stock | 457(a) | 3703704 | $27.00 | $100000008.00 |  | $13810.00 |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: |  | $215021250.00  |  | $29694.43  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  |  | $13810.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  |  | $15884.43  |

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 **Offering Note** <br>

<sup>1</sup> (a) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(a) under the Securities Act of 1933, as amended. (b) Includes the aggregate offering price of additional shares that the underwriters have the option to purchase.

<sup>2</sup> (a) The Registrant previously paid a registration fee of $13,810.00 in connection with the initial filing of the Registration Statement on Form S-1 on May 11, 2026. The fee was estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(o) under the Securities Act. This Maximum Aggregate Offering Price was originally registered under 457(o) and is now converted to 457(a). (b) See note 1(b) above.

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| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---