PSP 2022 Annual Report

Exponential Effect

The Permian Basin is one of the top oil-producing regions in the world, and its impact on the U.S. economy, energy independence, and national security is significant. To ensure the region’s continued prosperity and protect national interests, investments in education, healthcare, workforce development, road safety, and housing are essential. The members of the Permian Strategic Partnership have joined together, combining our resources to support the communities we serve. By collaborating with likeminded organizations, local and national leaders, and public partners, we are making the Permian Basin an even better place to live and work. Together, we have leveraged $125 million in PSP contributions into more than $1 billion in collaborative investments.

A LETTER FROM OUR CHAIRMAN

The Permian Basin is a unique and remarkable place with abundant resources, hardworking and patriotic citizens, and a thriving community. Today, the Permian contributes over $150 billion to the American economy and supports nearly 700,000 jobs. However, as our region continues to thrive and prosper, we encounter obstacles that call for innovative problem-solving.

Over the past year, the Permian Strategic Partnership (PSP) was committed to addressing these challenges and improving the quality of life for residents in the Permian Basin. Our investments in public education, healthcare, infrastructure, and workforce development, totaling over $32 million in 2022, have helped to create sustainable, long-term solutions that benefit everyone in the region. As discussions surrounding energy security continue, we acknowledge the vital role played by the Permian Basin in meeting the world’s energy demands. To support the demand of the energy industry’s continued growth, we must continue to invest in our crucial region.

We are fortunate to have strong partnerships with leaders such as Texas Governor Greg Abbott and New Mexico Governor Michelle Lujan Grisham, as well as Texas Department of Transportation Chairman Bruce Bugg and New Mexico Department of Transportation Cabinet Secretary Ricky Serna, who all share our vision of success for the Permian Basin. Together, we are working to deliver on the Permian Promise and build a brighter future for the entire region.

We are proud of our progress in 2022, and we remain committed to building on our success in the years to come. The future lies in the Permian, the world’s largest secure supply of energy. With production growing, so will dependence on this area for energy needs. It’s imperative that our community support systems grow, too. The need for continued public-private partnership has never been greater.

Thank you for your support.

With the release of our third annual report, we at the Permian Strategic Partnership (PSP) celebrate another year of growth for West Texas and Southeastern New Mexico communities. Since our founding, the PSP has committed $125 million and leveraged more than $1 billion in collaborative investments across the Permian Basin.

Our dedication to the communities we serve has never been more unwavering, and the commitment of our 20 member companies has allowed us to make significant progress towards a brighter future for the Permian Basin. Over the past year, we have prioritized investments in education, healthcare, road safety, and workforce development, enabling us to make significant strides in improving the well-being of our communities.

In 2022, the PSP launched a new initiative in partnership with the Cal Ripken Sr. Foundation, gifting state-of-theart science, technology, engineering, and math (STEM) centers to 134 schools across the Basin. To date, we have supported innovative healthcare programs that focus on behavioral health and wellness and provided over $36 million in partnerships with Texas Tech University Health Sciences Center, The University of Texas Permian Basin, and Odessa College to develop an educational pipeline for students seeking to become medical professionals. We also invested in critical infrastructure projects supporting the region’s economic growth and development.

As our communities continue to grow and evolve, we are excited to build on the progress we have made together with our partners in 2022, and continue to drive positive change. We remain committed to investing in the future of the Permian Basin and supporting the communities that make it such a special place to live and work.

I want to express my gratitude to our partners, stakeholders, and allies for their ongoing support. Together, we can continue to meet the challenges ahead and create lasting changes and opportunities in communities across the Permian Basin.

We invite you to join us in this transformative work to ensure the Permian remains equipped to deliver all that the region, the United States, and the world have come to rely on.

Together, we are stronger!

Housing Initiative Support Road Safety

$720,000 $1,800,000 $3,523,000 $4,300,000

The Permian Strategic Partnership has directly invested approximately $125 million in Permian Basin projects and contributed to collaborative investments totaling more than

$1,000,000,000

Working Together for a Greater Impact

Investing in the Permian is the right thing to do, for the future of our industry, for the vitality of the region’s communities, and for the country. The members of the Permian Strategic Partnership believe that it is vitally important to invest in this region that has given jobs, energy security, and economic stability to the U.S.

To strengthen and improve quality of life for Permian Basin residents by partnering with federal, state, and local leaders to develop and implement strategic plans that foster superior schools, quality healthcare, a trained workforce, safer roads, and affordable housing. The companies involved with the Permian Strategic Partnership bring people, expertise, resources, and leadership to develop solutions in partnership with local leaders and communities. Since our founding, we have also worked to expand broadband access, and have helped spearhead a number of community-focused studies and public interest campaigns.

Partnering for Success in Education

There are many important reasons to invest in education. Children must learn about science, technology, engineering, and math (STEM) in order to pave the way for a successful future and gain critical problem-solving skills. Schools need resources and equipment to provide enriched learning environments for students. Teachers need continuing education to advance their skills and increase their learning potential. And students need education and mentorship to connect with college and career opportunities.

The Permian Strategic Partnership invests in education throughout the Permian Basin, working to enhance teaching and learning, building our workforce pipeline, and strengthening community relationships. Over the past year, we have made progress on many important education initiatives. Together with our partners, we have funded National Board Certification for Permian teachers, developed STEM Centers at elementary schools across the Permian, educated high school students through energy internships, and invested in an energy curriculum initiative to grow our future workforce. Our member companies, as well as education and industry stakeholders, are making a difference through education in the Permian Basin.

INVESTMENT IN EDUCATION

A Home Run for STEM

Science, Technology, Engineering, and Math (STEM) careers are in high demand in the Permian Basin and across the U.S. These fields are essential to our energy future—and to the future of our young people. That’s why the Permian Strategic Partnership is committed to investing in STEM education. In 2022, we teamed up with the Cal Ripken, Sr. Foundation to provide 134 elementary schools in the Permian with fully-equipped STEM Centers, reaching over 60,000 students and 2,000 teachers in 22 counties. The Permian Strategic Partnership contributed $7.5 million to the project.

Each Center will be equipped with state-of-the-art STEM educational products, technology, furniture, and more, including a 3D printer, programmable classroom robot, coding robot, and electronic circuit-building sets. The first 50 STEM Centers were installed in 2022. By the end of 2024, all elementary schools in the Permian Basin will have access to a new STEM Center. Over a five-year period, the Cal Ripken, Sr. Foundation staff will train teachers to deliver a weekly, year-round STEM program with custom-designed STEM lessons, educational products, and technology to enhance the tools provided in the STEM Centers.

The Cal Ripken, Sr. Foundation is a national 501(c)(3) nonprofit organization founded in 2001 to honor the legend and spirit of Cal Ripken, Sr. Focused on the values that Cal, Sr. embodied as a devoted coach and mentor, the organization has opened 277 STEM Centers nationwide. Among its other programs, the organization helps strengthen America’s most underserved communities by supporting and advocating for children. By investing in STEM education, the Permian Strategic Partnership seeks to inspire local students to explore STEM concepts and develop the problem-solving skills needed for lifelong success.

“The Permian Strategic Partnership is a terrific partner with us, and we are grateful for their tremendous support. 134 schools in the Permian Basin receiving state-of-the-art STEM Centers is exciting and will make such a difference in these communities. STEM has become an integral part of our work and we will only continue to do more in this space working with dedicated organizations like PSP.” Cal Ripken, Jr.

More Permian Teachers Pursue National Board Certification

Students learn more from Board-Certified Teachers—and now, the Permian currently has over 247 teachers enrolled across 10 counties in West Texas and Southeast New Mexico. 42 have completed all four components of the certification program. National Board Certification is on the rise for educators in Texas and New Mexico, bolstered by support from the Permian Strategic Partnership, the National Board for Professional Teaching Standards, and the New Mexico National Board Certified Teacher Network. Considered the gold standard for teacher certification, National Board Certification is a voluntary, advanced professional certification for prekindergarten through 12th grade educators.

The Permian Strategic Partnership has pledged to provide nearly $4 million to support certification of up to 700 teachers in Texas and New Mexico, in partnership with the National Board for Professional Teaching Standards, and the New Mexico National Board Certified Teacher Network. We made this commitment because we believe in the power of education—for students and teachers. More than a decade of research confirms that students taught by Board-Certified teachers learn more than students taught by other teachers. Teachers benefit, too. When they become BoardCertified, they qualify for Teacher Incentive Allotment funds, leading to higher salaries.

The program launched with a focus on Eddy and Lea counties in New Mexico and Ector County in Texas. In 2022, it was expanded to cover Midland and Pecos school districts. A key goal of the initiative was to encourage more teachers in the Permian to pursue certification. So far, it has done exactly that. With a year of funding left, we expect to see many more teachers enroll in the program, expanding opportunities for students and teachers across the region.

as of Spring 2023, 247 Teachers Have Enrolled Across 10 Counties

Building Tomorrow’s Workforce Through a Comprehensive Energy Curriculum $4.5m

Energy is the number-one industry sector in the Permian Basin, yet energy-focused programs are only offered in a few West Texas high schools, and in one Southeast New Mexico high school. To support the creation of a comprehensive turn-key energy curriculum that provides resources to local students, builds our regional workforce, and aligns with industry needs, the Permian Strategic Partnership committed to an investment of $4,525,000 for Energy Education and Workforce Curriculum in 2022. The investment will take place over a three-year period, and will impact all K-12 districts and colleges in the Permian Basin across West Texas and Southeast New Mexico.

The program will draw on the Partnership’s previous education and workforce investments, including early childhood, Pre-K, elementary school, middle school, high school, and college and career programs. Energy Education and Workforce Innovation initiatives

will feature labor market–aligned programs of study, curriculum and resource development, and work-based learning. The curriculum will feature innovative industry practices, dual credits, and credential options for students. This initiative provides the opportunity to improve student achievement, strengthen interest in the energy industry, build the workforce pipeline, and enhance the economic vitality of the Permian Basin.

The PSP conducted a District Survey to identify key areas of opportunity for this program. Results of the study highlighted a Career and Technical Education (CTE) program, work-based learning opportunities, and identifying and incentivizing credentials that could lead to good careers and wages. Based on this input, we held discussions with energy companies to identify job positions deemed critical to the Permian Industry, along with skills key to all positions.

Inspiring High School Students to Pursue Energy Careers 12

The energy sector is an exciting industry, vital to our economy and brimming with potential career opportunities—so why don’t more high school students pursue energy careers? A recent assessment conducted by the Permian Strategic Partnership and the Education Strategy Group concluded that too few education programs in the region specifically address the energy sector at the high school level. To address the gap, the Permian Strategic Partnership (PSP) launched a summer energy internship for high school students in 2022, with support from many of its member energy companies. The PSP contributed funds to Loving Schools to support the internship program and impact the workforce pipeline for the Permian Basin.

Students from Loving Municipal Schools, ranging from sophomores to recently graduated seniors, completed the six-week program. Students learned about various career opportunities in the energy space, toured a rig, visited the offices of local energy companies, and engaged in real-world learning activities. The framework for the program was co-created with PSP’s member companies, who

also provided subject matter experts for in-person and virtual instruction. Students also attended the EnergyPlex Conference in Hobbs and actively participated in the sessions. The internship culminated in a final project that showcased student learning with presentations given at Loving High School.

The Permian Strategic Partnership is proud to partner with Loving Municipal Schools to educate students on the region’s highestimpact industry sector.

Students Completed the Permian Strategic Partnership’s Summer Energy Internship Program

Students learned about energy careers, participated in a rig tour, visited energy company offices, attended the EnergyPlex Conference in Hobbs, and created presentations to showcase their learning.

Working Together to Expand Healthcare Access

Thriving communities need strong healthcare support. The Permian Basin is home to many excellent hospitals and healthcare facilities—however, we need more resources to support our growing population. From investing in programs that serve patients to supporting training initiatives for healthcare professionals, the Permian Strategic Partnership is working to improve access to care across our region.

In 2022, we invested in a new behavioral health center serving our entire region. We are excited about the potential this initiative has to create better healthcare outcomes for patients, attract more healthcare providers in our region, and grow our region’s reputation as a healthcare leader.

Bringing Behavioral Health Services Closer to Home

According to a 2016 Meadows Mental Health Policy Institute assessment of Midland County, one in five residents is in need of mental health services. However, the region only has the capacity to serve about 10% of those needs. The PSP has been working to address this need for mental and behavioral health facilities, professionals, and services since we first received the report—and thanks to the hard work and dedication of our partners, we are excited to report significant progress on this front in 2022.

Over the past year, the Midland County and Ector County Hospital Districts joined together to plan for the establishment of a new behavioral health center for the Permian Basin region, with support from the Permian Strategic Partnership and other partners. During the 2021 Texas legislative session, $40 million of funding was appropriated for the center, with additional funding to be sourced locally. In 2022, the PSP pledged to invest $12.5 million to the center.

In order to qualify for state and federal funding, the center first needed to identify a site for construction. In 2022, PSP Member Company Diamondback Energy provided the land for the facility, designating 54 acres immediately south of the University of Texas Permian Basin’s Midland campus. The schematic design for the center has been completed and construction will soon begin, with a projected opening date of July 1, 2025.

The new Permian Basin Behavioral Health Center will comprise approximately 140,000 square feet, with 100 inpatient beds, outpatient services, crisis stabilization services, and professional offices. It will serve as the behavioral health teaching home of Texas Tech University Health Science Center (TTUHSC) Permian Basin, supporting the psychiatric residency program in Midland. The facility will treat patients of all ages, with a mission of raising awareness, reducing stigma, and facilitating collaboration among providers.

$12.5m

54

100

“We would love nothing better than to see behavioral health concerns treated as the equivalent of physical health concerns in our community. Our vision is to ensure that there is no difference in the access to care or the efficacy of care provided to patients, whether the concern is in their brain or in their body.”

new

Basin Behavioral Health Center will include inpatient beds, outpatient services, crisis stabilization services, and professional offices.

Partnering for a Safer Permian Basin

As the Permian Basin grows, investment in roads, infrastructure, and emergency services is essential to ensure safety for everyone who lives and works here. Our member companies’ partnership with local communities and organizations like the Permian Road Safety Coalition (PRSC) have enabled us to provide ongoing support for public safety initiatives, including first responder agencies and road safety infrastructure.

In 2022, we continued our investment in providing life-saving equipment to local police, sheriff, and fire departments. Over the past year, we nearly tripled our investment, allowing us to improve emergency services on roadways and provide specialized equipment to meet unique regional safety needs. We also invested in expanding the Odessa Truck Driving Academy in order to increase career training for commercial drivers in our region. Together with our partners, we are making Permian roadways and communities safer.

Investing in Training to Address Commercial Driver Shortage

Commercial drivers are a critical component of the Permian economy, but the region is facing a significant shortage of Commercial Driver’s License (CDL) certified drivers. According to the Department of Public Safety, 65% of commercial vehicles in the Permian Basin are out of compliance, and in 2022 alone, 4,000 new CDL job postings were created in the region. To help meet the demand for drivers, the Permian Strategic Partnership and Odessa College (OC) are investing over $3.5 million into the expansion of the Odessa College Truck Driving Academy.

This investment will lead to safer roads and a stronger workforce by expanding training for students who wish to pursue this essential, in-demand, high-paying career. The funds will support 94 more Odessa College students annually, providing scholarships, trucks, trailers, and instructors to the campuses in Odessa, Pecos, and Andrews.

The Odessa College Truck Driving Academy opened in 2018, and offers full- and part-time CDL training, which includes up to 200 hours of classroom and behind-the-wheel instruction. Since opening, the Academy has helped over 400 students receive their CDL. The program currently has a 99.9% graduation rate, averaging over 140 students each year.

Transporting goods to market is key to the energy sector, and to other industries in the Permian Basin. This important initiative will help provide safe, qualified drivers to fill these essential roles.

99.9% $3.5m

The investment will provide scholarships, trucks, trailers, and instructors to campuses in Odessa, Pecos, and Andrews.

“This is a wonderful moment for Odessa College, our students, and all of the Permian Basin. With this generous gift, we will be able to significantly grow the Truck Driving Academy’s capacity, with resources for nearly 100 additional students annually. I’d like to thank the Permian Strategic Partnership Board and each of their member companies for their continued commitment to improving the lives of Odessa College students and students across the Permian Basin.”

“PSP’s generous support and equipment donations have helped save lives in our community. When I arrive on a scene, I don’t know what I will find, but with the tools PSP and the Permian Road Safety Coalition have provided, like battery-operated jaws of life, mobile lights, and fire extinguishers, in addition to their ‘first on the scene training’, I know I’m prepared.”

Triple the Support for First Responders

The right tools are essential for any job—but when your job is saving lives, the stakes are much higher. First responders and law enforcement officers respond to emergencies every day, and in the Permian Basin, they often travel long distances to help those in need, with limited equipment available. To support our first responders and reduce vehicle crash fatalities across the Permian Basin, the Permian Strategic Partnership has partnered with the Permian Road Safety Coalition (PRSC) since 2020 to provide special equipment requested by our local fire, police, and other emergency providers. Our original donation of $1.1 million kicked off our efforts across West Texas and Southeast New Mexico. In 2022, we announced a second round of funding totaling $3.17 million. This nearly triples our funding and will allow us to provide even more equipment in the places that need it most.

$3.2m

Invested in the Second Round of Funding

22

Counties Across Texas and New Mexico will be Provided with LifeSaving Equipment

The funds will be used to provide 82 first responder departments with base-level equipment kits, and to purchase customized equipment and gear for unique needs that vary across the Permian Basin. This equipment will include medical supply kits, fire extinguishers, protective clothing, gas monitors, mobile lighting tools, and rescue helicopter landing zone kits. First responder agencies receiving this equipment are located in the Texas counties of Andrews, Borden, Brewster, Crane, Culberson, Dawson, Ector, Gaines, Glasscock, Howard, Jeff Davis, Loving, Martin, Midland, Pecos, Presidio, Reagan, Reeves, Terrell, Upton, Ward, Winkler, and Yoakum, and the New Mexico counties of Eddy, Lea and Chaves.

First responding agencies deserve the best equipment possible to protect our citizens and themselves. The Permian Strategic Partnership is honored to fund this important initiative, which helps our local heroes save even more lives.

Equipment Provided Includes:

● Medical Supply Kits

● Fire Extinguishers

● Protective Clothing

● Gas Monitors

● Mobile Lighting Tools

● Rescue Helicopter Landing Zone Kits

Providing Skills and Services to Accelerate Workforce Success

Strengthening our workforce in the Permian Basin is good for our economy, our community, and the people who live and work here. The energy industry needs skilled professionals in a wide variety of roles, and the Permian Strategic Partnership is committed to helping build and grow the workforce pipeline for our region. From education and training to community outreach, we have invested in a variety of career pathways over the past year.

We supported the American Warrior Partnership in launching its new Permian Warrior Partnership, which will connect local veterans with resources for education, healthcare, housing, and more. We also worked with Skillpoint Alliance to provide no-cost rapid skills training for individuals interested in pursuing careers in skilled trades like electrical, plumbing, and HVAC. We will continue to partner with local nonprofit organizations, school districts, community colleges, and state and local officials to attract, develop, and retain qualified employees and their families across the Permian Basin.

Linking Veterans with Support and Resources

There are at least 20,000 veterans in the Permian Basin—and each one is a valued member of our community. Veterans bring many skills to the workforce that are highly sought after in the energy industry, from technical experience and specialized training to leadership skills, work ethic, and teamwork. In an effort to make the Permian the most veteran-friendly region in the country, the Permian Strategic Partnership joined forces with America’s Warrior Partnership (AWP), a national veteran organization that connects veterans with local resources and opportunities, in 2021.

In 2022, AWP formally launched a new branch, the new Permian Warrior Partnership (PWP), funded by the Permian Strategic Partnership. PWP will improve the quality of life for veterans by coordinating local services and opportunities available to them,

including housing, employment, education, enrollment in VA e-benefits, healthcare, recreation, and more. AWP’s Community Integration model is a holistic, veteran-focused, community-led initiative to proactively connect and engage with all veterans in a given area to ensure they have access to all the quality resources and opportunities available in collaboration with their local community.

After serving our country with honor, veterans deserve our support—and we are proud to partner with the AWP in launching the new PWP branch, serving all veterans in our region.

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The PWP will help veterans in our region access housing, employment, education, VA e-benefits enrollment, healthcare, recreation, and more.

“Following a debilitating accident in 1985, I was diagnosed with several conditions that made it challenging to work and manage daily life. Despite receiving an incorrect disability rating of only 20%, PWP gave me the information and resources necessary to reapply for disability, securing me a 100% rating. Their support was invaluable, and I’m grateful for their assistance in getting me back on my feet.”

Supporting Growth through Skilled Trade Programs

Skilled professionals in electrical, plumbing, and HVAC are in high demand—but the number of skilled workers in these professions has been declining for decades. As a result, costs for these services have risen and so has worker pay. This change has brought a renewed focus on educating students in the trades, emphasizing the stability, high pay, and job security these careers can bring. Equally important is the value the trades provide to our communities.

In 2021, the Permian Strategic Partnership announced a partnership with Skillpoint Alliance, a nonprofit organization that provides fastpaced, no-cost job training in the skilled trades to lower-income, underserved, and under-accessed populations. PSP provided support for Skillpoint to expand its services to the Permian Basin, investing $2.64 million in workforce development.

According to the Permian Basin Workforce Solutions Targeted Occupations List and labor shortage numbers, the largest industry need was within the electrical trade. In response to this need, over the past year, Skillpoint successfully launched a four-week, preapprentice electrical program, which was provided to students at no cost. The PSP hosted four cohorts in 2022—three at Midland College Advanced Technology Center and one at Odessa College. Twenty-six students completed the program at Midland College, and seven completed the Odessa program, which graduated a record number of women—four of the students in their class were female. Students enrolled in the program learned about the basics of electricity, participated in hands-on learning experiences, and were educated about jobsite safety. Graduates earned certificates and college credit hours, received their OSHA 10 cards, and were equipped with tools to progress in the electrical industry.

“We’ve learned about how electricity works, how to create complete circuits, simple switches, and safety factors. I had never held a hand tool before this program, so they had to show me everything— this program is for sure the reason I got this job.”

Elizabeth Jones

Skillpoint Pre-Apprentice Graduate

$2.6m

4

33

Graduates earned certificates and college credit hours, received their OSHA 10 cards, and were equipped with tools to progress in the electrical industry.

“As Mayor of Carlsbad, New Mexico, I know that by partnering with the Permian Strategic Partnership, we can have an incredible impact on our region’s growth and prosperity. The City of Carlsbad is proud to support this public / private partnership between people who care about New Mexico’s people and are invested in our infrastructure, education, environment, health, and safety.”

“Healthy schools, workforce development, and public safety are among my foremost values as Mayor of Midland, Texas. As a wife, mother, and small-business owner, my goal is to ensure that every Midland family has the opportunity to grow and prosper. The Permian Strategic Partnership has proven a valuable partner in Midland, from supporting Board Certification for teachers, to purchasing equipment for our first responders, to funding workforce training and healthcare initiatives. I look forward to seeing the ongoing impact of their investment in Midland and across the Permian Basin.”

ABOUT THE PERMIAN STRATEGIC PARTNERSHIP

When we work together, we achieve a far greater impact than we can alone. The Permian Strategic Partnership is a unique alliance between 20 leading energy companies: Apache, BPX Energy, Chevron, ConocoPhillips, Coterra Energy, Devon Energy, Diamondback Energy, Endeavor Energy Resources, EOG Resources, ExxonMobil, Halliburton, Helmerich & Payne, Kinetik, Occidental Petroleum, Ovintiv, Permian Resources, Pioneer Natural Resources, Plains All American Pipeline, SLB, and WaterBridge Resources. Individually, each of our member organizations is a strong contributor to our global energy economy, and our local communities. While we are technically competitors, we choose to work together toward a common goal: to make a lasting impact in the Permian Basin.

With its vast reserves, the region has the potential to improve energy security for decades—but to keep pace with growth, investment in infrastructure is critical. Founded in 2018, the Permian Strategic Partnership focuses on addressing challenges to the responsible development of the Permian Basin in New Mexico and Texas. By fostering superior schools, quality healthcare, safer roads, a trained workforce, and affordable housing, we can strengthen the Permian today, and ensure its success well into the future.

OUR MEMBERS

Apache

BPX Energy

Chevron

ConocoPhillips

Coterra Energy

Devon Energy

Diamondback Energy

Endeavor Energy Resources

EOG Resources

ExxonMobil

Halliburton

Helmerich & Payne

Kinetik

Occidental Petroleum

Ovintiv

Permian Resources

Pioneer Natural Resources

Plains All American Pipeline

SLB

WaterBridge Resources