The safety of our workforce, the community in which we operate and the general public is Freeport LNG’s top priority. We expect our employees to work safely each and every day. No exceptions. In 2023, Freeport LNG established several key safety processes and initiatives, with the goal of bolstering our safety culture. We also pursued significant operational reliability and efficiency improvements, including updated risk assessments and Pre-Start-Up Safety Reviews (PSSR) processes, the establishment of our Lost Production Opportunity (LPO) program to quantify production loss categories and drive RCA investigations, and modifications to our electric motors to enhance our ability to ride through voltage fluctuations in our power supply.

The key safety processes and initiatives we established in 2023 are categorized into three different areas:

• Safe Operations – Transitioning to a proactive safety culture.
• Organizational Capability – Strengthen organizational capacity and focus our resources on the most critical priorities.
• Strategic Initiatives – Developing our operations management systems, measuring performance, and continuously improving.

As it relates to Safe Operations, key priorities include:

• Implementing a robust Process Safety Management or PSM Program
• Strengthening leading indicator programs through behavioral based observations and near miss incident investigations to identify areas of high risk
• And reinforcing leadership accountability and expectations through the establishment of a company-wide Operations Integrity Committee or OIC.

Turning to Organizational Capability, included among the top priorities are:

Recruiting and retaining highly qualified talent to cover the breadth and depth of skills required for our business and establishing an operations-level risk management framework to ensure these resources are working on the most critical priorities and opportunities at any given time.

Lastly, as it relates to other strategic initiatives, key priorities include:

• Identifying and bridging gaps in critical business processes, systems, and procedures.
• Establishing an asset leadership team framework to ensure visibility and focus on operating performance metrics that contribute to overall production, reliability and efficiency.
• Improving maintenance planning and execution to ensure that work is completed effectively and in a timely matter.
• And developing a Reliability Centered Maintenance or RCM Program and identifying key areas of focus that will deliver the most value.

Alongside the safety, operations and strategic priorities we established in 2023, we also launched our Good Catch Program which recognizes employees who identify and report safety hazards. This important program reinforces with our employees “see something, say something” behaviors. Freeport LNG is committed to ensuring the highest-level focus on safety at all times. The mission is straight forward: Our safety culture is a core value that defines the way we conduct work as well as our commitment to the health and well-being of our employees, contractors, and communities. We must operate with discipline and vigilance, recognizing that when it comes to maintaining a strong safety culture, work is never done.

We strive to be a model employer. We believe employees should work under safe, healthy, respectful and fair conditions. We implement strategies that encourage and leverage the unique contributions of employees with diverse backgrounds, while also giving them opportunities to learn and grow. We believe this builds a collaborative culture that upholds the principles that define us as a company and drive our actions.

Freeport LNG believes that a well-trained workforce provided with the necessary tools and support, sets us up for success. Through a combination of work assignments, on-the-job experiences, and focused training and education, employees acquire the necessary skills and competencies to take on increasing levels of responsibility and job complexity.

We fund employees’ post-secondary educational goals up through the Master’s Degree level, as well as external professional certifications and continuing education requirements to support those certifications. We encourage attendance at professional conferences and targeted technical training.

Internally, employees adhere to a strict training schedule that helps to achieve safe, reliable and efficient operations that comply with regulatory requirements and industry best-practices. This training is conducted through hands-on, classroom and online coursework covering a wide variety of topics.

Freeport LNG employs highly qualified individuals and is continually investing in the development of their skill sets.

All employees undergo regular training in areas within and outside their job role based on their defined training plan. Through a combination of work assignments, on-the-job training, training simulation, professional development, and focused continuing education, employees perform their work competently and safely. They continue to acquire the necessary skills and competencies to take on increasing levels of responsibility and job complexity. As noted above, following the June 8^th incident we are significantly increasing Process Safety Management training, among others, to further reinforce a safe work environment.

We value the diverse strengths of our employees who each bring their unique skills and experience to our team. As part of the Freeport LNG team, employees work side by side with top performers in the LNG industry.

Freeport LNG is unique in terms of our location. With headquarters located in Houston, the global energy capital, and the Terminal facilities located on the Gulf Coast in Brazoria County, an epicenter of industrial, petrochemical, and natural gas-related activity, hiring local talent is a convenience we don’t take for granted.

We believe that when employees are fairly compensated, work in a safe environment, and are provided excellent benefits for them and their families, they have peace of mind.

We dedicate ourselves to developing our employees and preparing them for the next level of opportunity. When we must look outside of our workforce for talent, we offer referral bonuses to employees for referring highly qualified candidates.

As the demand for LNG talent in the United States has increased with recent new entrants into the market, Freeport LNG’s employees are natural targets of our competitors given their notable specialized LNG industry experience. While we have seen some employees leaving Freeport LNG for other opportunities, resulting in a slight year-over-year increase of our historically low turnover rate, we have had significant success in retaining the vast majority of our workforce.

To support our employees and their families, we provide a highly competitive compensation and benefits package. When employees know that their loved ones are cared for, they incur less stress and perform better.

We encourage our employees and their families to live an active and healthy lifestyle. Incentives include a reimbursement for memberships to fitness centers and classes, annual health assessments, and online educational resources related to health and nutrition.

In 2023, we continued to offer employees a variety of offerings through our company wellness program. Our wellness program is comprised of an overall point system that awards employees for participating various events.

Our 2023 wellness program offerings included:

• Monthly wellness webinar topics based on behavioral health and doctor’s visits
• Monthly Calendars available to employees with daily wellness tasks included
• Onsite biometrics screenings
• Employee participation in the Hess 5K
• Employee participation in the Susan G. Komen Race for the Cure
• Employee participation in Step Challenge
• Implementation of Rightway Health; a concierge service offered to direct hire employees to provide assistance with insurance coverage questions and billing

In 2023, we made a concerted effort to increase hiring across the organization, in order to allow for improved work-life balance for our employees, particularly for our LNG terminal operations, maintenance and engineering staff.

We also achieved in 2023, fully staffing our Training Department that works to deliver on training objectives required to develop and maintain a high performing and regulatory compliant workforce. As it relates to employee training, we launched a new Learning Management System (LMS) which now serves as the central hub for our training programs and aims to streamline employee training and record keeping.

Employee engagement is a key tenet of our organization. We conduct a monthly safety and communications meetings at both our Terminal and Headquarters locations that are open to all employees. Our CEO issues quarterly updates to all employees, and we maintain a well-updated website. We also conduct regular lunch and learns around IT, cybersecurity, and other topics and make significant additional employee investments in safety awards, employee accomplishments, training, etc.

We look forward to continuing all of our employee engagement activities in 2024 and beyond, bolstering our commitment to involving and educating our employees on key organizational events, initiatives and milestones.