ITEM 1A. RISK FACTORS

Except as set forth herein, there have been no material changes to the risk factors disclosed in Part I, Item 1A-Risk Factors of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

RISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL RISKS

Changes to laws, regulations, guidance, and industry standards, or higher than anticipated costs, for asset retirement and decommissioning obligations could adversely affect the Company's results of operations and cash flows.

The Company is subject to extensive requirements governing the plugging, abandonment, and decommissioning of wells, facilities, sites, and related infrastructure. The cost and timing of these activities are uncertain and may be materially affected by changes in laws, regulations, guidance, or industry standards. Governments in key jurisdictions, including the United States and the United Kingdom, have increased focus on decommissioning requirements, financial assurance, and environmental remediation. New or revised rules or guidance could expand the scope of required activities, alter timelines, or increase financial security obligations, resulting in higher costs and greater cash flow demands.

Additionally, inflation, supply constraints, and limited contractor and vessel availability have also raised decommissioning costs. If decommissioning spending materially exceeds current estimates or the Company's joint venture partners or current owners of the Company's previous assets fail to meet their decommissioning obligations, the Company's cash flows, capital resources, and liquidity could be adversely affected.