April 24, 2026 – Surge Energy US Holdings Company (“Surge Energy” or the “Company”) today announced strong sustainability and financial achievements in 2025.

In 2025 the Company continued to deliver strong performance operationally by delivering record annual production and maintaining lease operating expenses unit costs at top tier levels.  This resulted in strong free cash flow and continued net debt reduction and de-leveraging.  On sustainability, the Company continues to deliver strong safety performance and continued leadership in water conservation and emissions reductions.

Highlights of Sustainability Performance:

• Delivered zero employee recordable injuries – for the fifth consecutive year.
• Conserved over 7 billion gallons of fresh water – since the inception of our recycling program in 2017 the Company continues to prioritize utilizing produced water for completion operations which conserves fresh water and reduces operating expenses.
• Eliminated ~4.2 million truck trips and ~ 124 thousand MT of CO2e emissions – through the Company’s significant water infrastructure investment and extensive use of our network of water pipelines these truck trips and emissions have been eliminated. In 2025 alone, utilization of pipelines has eliminated over 19 thousand MT of CO2e emissions.
• Prevented over 60 thousand MT of CO2e emissions – since the inception of the Company’s dual fuel completion fleet program, the Company has prevented these emissions from entering our atmosphere. In 2025 alone this program eliminated approximately 11 thousand MT of CO2e emissions.
• Focused Plug and Abandonment (P&A) program – Starting in 2023 the Company initiated a plug and abandonment program to reduce our inactive well count and the associated environmental liabilities.  Since 2023, the Company has P&A’d a total of 104 wells, reducing its inactive well count by 91% for the Moss Creek asset.

Highlights of 2025 Financial Performance:

• Delivered the highest annual production level in Company history at 64,403 net barrels of oil equivalent per day.
• Achieved record low and industry leading leverage as measured by our trailing twelve-month leverage ratio of 0.2x at year end 2025.
• Achieved sixth consecutive year of free cash flow generation in 2025. As a result of this cash generation our cash balance grew to $590 million and our net debt was reduced to $160 million at year end 2025.

“The Company had another record-breaking year in 2025 and continued to deliver impressive financial and operational results in a responsible manner,” stated Chief Executive Officer Linhua Guan. “I am proud of what the Surge team of over 200 Texans has achieved in 2025 and look forward to our continued responsible growth in our second decade as a company.”

About Surge Energy

Surge Energy is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas, one of three primary sub-basins of the Permian Basin.  The Company is headquartered in Houston, Texas, and currently holds approximately 180,000 net acres in the Permian Basin as of December 31, 2025.  For more information, visit our website at www.SurgeEnergyA.com.

Contact Information

Travis Guidry
Chief Financial Officer
Email: TGuidry@surgeenergya.com
Phone: 832-333-2339

Investor Relations
Email: InvestorRelations@SurgeEnergyA.com
Phone: 832-333-2400