Our commitment to sustainability extends beyond our operations, as we strive to meet the intertwined global challenges of delivering a lower-carbon future while securing the growing global demand for reliable, cleaner energy. In 2022, we continued to execute on our strategy as we completed the integration of our Haynesville business, which we acquired in 2021. We now supply the largest volume of natural gas to LNG exporters, expanding our ability to support a lower-carbon future while bolstering the long-term resilience and value creation capacity of our business.

ONE TEAM
Driving the execution of our strategy is a high-performance, inclusive culture centered around our people who, as One Team, bring out the best in and look out for one another, based on our core values. We credit our One Team culture for driving near-record safety performance in 2022 and delivering Total Recordable Incident and Recordable Vehicle Incident rates that are among the lowest in the industry. And One Team means that both employees and contractors are counted in our safety performance metrics.

One Team also means we all play a part in fostering our winning culture. That’s why, in 2022, 100% of employees completed our annual ethics training, and why ownership, collaboration and integrity are among our core values.

ONE FOCUS
As One Team, we are focused on sustainable value creation. This means that, as we seek to create economic value from the development of our assets, we do so responsibly, mindful of how our operations might impact the environment locally and globally. In early 2022, building on nearly a decade of leadership in longer-term emissions reduction efforts, we announced a Scope 1 greenhouse gas (GHG) emissions reduction goal of 50% by 2035. This goal puts us on a path to achieve net-zero emissions by 2050, consistent with limiting the increase in average global temperature to 1.5 degrees Celsius. By tackling key projects that reduced emissions from combustion, venting and other activities, we made significant progress toward our goal, reducing Scope 1 emissions by 17% in 2022. In addition, we achieved our 2022 goal to have 100% of SWN wells certified as low-emissions, responsibly produced gas.

SWN also continues to be the first and only company in our industry to achieve and sustain freshwater neutral operations, meaning we return more freshwater back to the environment than we consume. In 2022, we achieved our seventh year of freshwater neutral operations, delivering nearly 17.1 billion gallons of freshwater to local communities – more than we used in our operations during the same time.

ONE FUTURE
We are focused on sustainability because we care about the future.

For our employees, this means a continued focus on providing strong career and development opportunities in an environment where all are treated with dignity and respect, and where diversity of thought and perspective are valued and prioritized. In 2022, 100% of senior management completed inclusion training, with the rest of the company expected to do so in 2023, and 32% of new employees were diverse, which helped SWN take an important step forward as we look to the next generation of leaders. We also launched a diversity and inclusion survey to hear directly from our employees about how we are doing. Our employees identified as strengths that
their managers provide a broad sense of belonging and inclusion, that they believe that SWN is open to diverse ideas, and that there is fair treatment in the workplace. As part of our commitment to assess and drive DE&I progress going forward, we are publishing our EEO-1 data for the first time this year.

We also work to bolster the future of our communities. Our approach to community engagement provides a proven process with built-in flexibility to respond to unique needs. SWN’s leaders partner closely with local officials, first responders, nonprofits, and schools in our communities to identify areas where we can have the most impact.

Our 2022 focus areas, paired with employee volunteer and giving opportunities, were education, safety, workforce development, and food insecurity. In 2022, we announced that we will more than double the amount of employee donations eligible for employee matching funds.

Finally, SWN’s strong governance systems incentivize a forward-thinking, steadfast commitment to ethics, integrity, transparency and model corporate citizenship. SWN’s Board of Directors works closely with our management team to oversee sustainability, including addressing related risks and opportunities. We tie accountability for sustainability performance improvements in safety, spills and emissions to our annual bonus plan, together representing 15% of the overall bonus.

We are grateful for the hard work and dedication our teams show every day. As One Team with one focus, we are continuously striving for one bright future as we create economic value and achieve our sustainability goals to benefit all SWN stakeholders.

Sincerely,

Bill Way
President & Chief Executive Officer