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Ƶ Oil logo
Ƶ Oil logo

Human Capital Management

We are One Team
We foster an inclusive culture where employees are positioned to grow, thrive and strengthen our business.

Talent is one of the foundational components that allows us to deliver on our corporate strategy. Our intentional human capital management (HCM) strategies enable us to attract, develop, retain and reward our dedicated employees. Our vice president of Human Resources has leadership accountability for our workforce management policies and programs and reports directly to our CEO. She reviews quarterly talent data with our Executive Committee to assess the talent landscape and strengthen measurement and accountability for human capital outcomes.

Our board of directors provides oversight of our HCM strategies and receives regular updates, including a full HCM strategy presentation annually, as part of our overall Enterprise Risk Management process. Due to the importance of our workforce capabilities, the board also receives updates on HCM as topical matters arise, such as diversity and inclusion, employee engagement and succession.

Talent Development

We invest in comprehensive talent processes that drive high performance. We take a multi-pronged approach to organizational learning, which is driven through our centralized on-demand development hub and informed by our enterprise-wide talent assessment process. Our organizational learning approach blends online, on-the-job and classroom training with individual assessments and coaching so that employees receive the feedback, tools and time they need to reach their fullest potential.

In early 2022, we switched to LinkedIn Learning, providing employees with access to a larger number of business-focused and leadership development topics. Employees completed approximately 49,000 hours of annual computer-based training in 2022. In addition to LinkedIn Learning, our Educational Reimbursement Plan encourages employees to sign up for classes at approved educational institutions by helping to pay for the cost of eligible tuition, textbooks and fees. In addition, Ƶ Oil provides financial support to eligible employees in their pursuit of various certifications and licenses. Through employee, leadership and petrotechnical training, we invested more than $800,000 in employee training in 2022.

Leadership development is available to leaders throughout the year and content is intentionally focused on learning objectives. These programs range from new supervisor trainings to executive-level business simulations. We launched a new Leadership Development Program in early 2023 to provide current and future leaders with leadership capabilities that will empower them to thrive and make a difference in the company’s success. The six-month program features modules designed to enhance team collaboration, build more confidence in taking on challenges and equip participants to deliver results at a higher level.

We offer an employee mentoring program, which focuses on increasing communication, connection and trust to advance our company’s culture. In 2022, approximately 200 of our employees participated in the mentorship program. We also continued our board mentoring program, which pairs senior leaders with directors.

“As a mentor, I have really enjoyed building new relationships and getting to see the company through the lens of someone who works in a different function and can offer a different perspective. The insights I have gained from my mentees have made me a more well-rounded leader,” said Lacey Melancon, Vice President, Tax

Our annual Enterprise Risk Management process includes a multi-year view of potential talent risks, which proactively prepares us to respond to the macro-environment and set ourselves up for long-term success. Additionally, through our Talent Assessment process, we review talent across the enterprise, measuring both technical and leadership capabilities. We leverage these talent assessments to identify critical skill gaps, guide enterprise-wide and targeted skills trainings and effectively deploy talent.

Our talent planning processes are aligned and consistent across the organization. We review talent data on a quarterly basis, using this analysis to plan our talent program. Our succession process is designed to identify the experiences and exposures needed to set employees up for success in future senior leadership roles.

Rewarding Our Employees

We believe in rewarding performance and behaviors that exemplify our corporate values. In 2022, we centralized all our recognition programs (spot awards, non-monetary recognition and service awards) into our MarAwards platform. This program allows managers to deliver points to employees for exceptional achievement and behaviors, which can then be used to purchase items or gift cards. Employees remain eligible to receive monetary awards for extraordinary effort. Non-monetary recognition can also be given through the platform to celebrate events and life milestones or recognize peers who offer a helping hand, deliver results or exemplify our corporate values.

Growing a Highly Skilled Petrotechnical Workforce

At Ƶ Oil, we integrate the best people with the best technology to drive enterprise value, boost profitability and improve sustainability. Employees with strong petrotechnical skills are vital to Ƶ Oil’s resource exploration, development and production efforts. Our petrotechnical teams are focused on leveraging high-volume data analytics and pairing that with high-resolution advanced modeling to realize further gains in operational effectiveness.

To help ensure that we have the right technical capabilities needed to run the business today and in the future, we continue to leverage the partnership between our Human Resources professionals and our petrotechnical chiefs to manage discipline health and set technical direction. In 2021, we identified petrotechnical advisors who partner with the chiefs and managers to close technical knowledge gaps, drive best practices and create development opportunities. In 2022, 183 petrotechnical employees participated in training.

Compensation and Benefits

We offer benefit programs that are aligned with our company’s vision and strategies and provide market-competitive pay levels to attract and retain the best talent. Our compensation program is designed to reward employees for their performance and motivate them to continue to perform at a high level. We encourage continuous performance feedback conversations, as well as both annual absolute feedback and relative performance evaluations.

The annual cash bonus is our short-term incentive for eligible employees. It reinforces both corporate and individual annual performance and prioritizes financial and operational metrics. Eligible employees may also receive long-term incentives in the form of restricted stock awards. In 2022, in addition to the annual cash bonus, we provided a one-time cash payment to all employees to reward their invaluable contribution to our operational and financial success. Providing a consistent bonus to each employee demonstrates our One Team culture. In August 2022, we made the commitment to cover employee premiums under the Health Program through 2023 to help support them through ongoing inflationary pressures.

We continue to offer our Workplace Flexibility Program, which allows us to support flexibility and balance while preserving our collaborative culture and includes the option to work from home up to two days per week and a 9/80 flex schedule if the role and work location allows. We believe this flexibility supports the overall well-being of our employees and their families.

We also continued our “Are you Ok?” campaign, which is dedicated to educating and empowering our employees to talk about mental well-being at work and at home, decreasing the stigma around mental health concerns and promoting the resources available to our employees.

We continued our support of physical and mental health by providing new benefit offerings in 2022. These include an enhanced Employee Assistance Program (which offers more provider visits as well as coaching), free access to the Headspace app, financial wellness offerings through Fidelity and Blue Cross/Blue Shield weight management, physical therapy and heart health solutions. To further support physical health, we provide at-home biometrics screening kits to employees to allow them to identify and proactively address specific health-related issues. In addition to covering healthcare premiums, we also increased access to care by installing blood pressure cuffs throughout our building in Houston and offered onsite dental cleanings.

Additional benefits can include child care and elder care; relocation benefits; dedicated facilities for nursing mothers and quiet rooms for personal use for office employees; paid family leave; health, dental and vision assistance plans for employees and their families, including domestic partners and children of domestic partners in the United States; retirement savings plans; adoption assistance; vacation; paid holidays; sick pay; life and accident insurance; educational reimbursement; a volunteer incentive program; and more. To see a full list of benefits and eligibility requirements visit .

We regularly benchmark each component of our pay and benefit programs against our peers and a broader subset of the oil and gas industry to remain competitive. See the “Compensation Discussion and Analysis” section of our 2023 Proxy Statement for information on our Executive Officers.

Employee Engagement

In 2022, we conducted a company-wide employee value proposition review to capture the unique characteristics that attract people to Ƶ Oil and keep our employees engaged as part of our One Team culture. As a result of survey responses and targeted focus groups, we identified the key attributes of Connection, Collaboration, Challenge and Centered as the unique attributes and offerings we provide for new and existing employees.

We generally conduct a full employee engagement survey every two years and conducted one in mid-2022. We had a 75% response rate to this year’s survey and more than 2,900 comments were provided. Results of this survey showed that overall, employees believe we operate with strong values in place, have the flexibility they need to balance work and personal life and feel like they are part of something meaningful. Many also believe that their manager helps them learn and grow, and that they can express their thoughts and opinions to peers.

We continue to create more opportunities for employees to voice their opinions and to gain additional insight into important company decisions through informal engagement sessions. Examples include our “Investor Guy” series, where our head of Investor Relations discusses quarterly earnings with employees; all-employee company meetings; informal executive discussions and the events and activities hosted by our employee resource groups (ERGs). We also recently revamped our onboarding experience for more effective and seamless integration of new employees into the organization. In addition to a more fit-for-purpose employee orientation, we have included 30-, 60- and 90-day check-ins to support new hires through their early days with Ƶ Oil.

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