University Lands FY23 Annual Report

#1 well, marking the first time oil was produced on the PUF Lands. The anniversary was an appropriate time to reflect on the achievements of the past but also to consider what the next 100 years might bring. In the decades ahead, we expect there to be greater reliance on low-carbon energy sources. To prepare for that, we spent 2023 learning more about emerging and alternative energy sources. We developed strategies and created a plan and team dedicated to emerging energy. We are putting the structure and expertise in place to become a leader in the production of alternative and emerging energy in Texas, just as we are now leaders in the oil and gas business. As important as these internal efforts are, we know the success of our mission also depends on the knowledge and commitment of the lessors and operators working on the Lands. Their success is our success. The recent increase in industry mergers and acquisitions has resulted in new operators working on the Lands, joining a mix of companies that have different attributes and visions. One way we help all operators work more effectively together and with us is through our annual Energy Forum. In 2023, we again brought together hundreds of industry leaders and operators to learn from dynamic speakers about what is happening on the PUF Lands and across the industry. They had the opportunity to engage with one another and our team to discuss topics and share information that impact us all. We plan to continue growing the forum in the years to come, increasing both the number who participate and the value the event provides. Looking back and looking forward, it is clear our achievements depend on the people who work for and with University Lands. I am grateful for our team, the lessees and all who work on the Lands. Thanks to their stewardship, skills and dedication, FY 2023 was a remarkable year for the PUF Lands and the revenue generated. It is a unique privilege to work together for the benefit of The University of Texas and Texas A&M University Systems, their institutions, and the students, patients and researchers they support. That vital mission will continue to drive our success, in 2024 and beyond.

“Our people care for this land like it’s their own. We are constantly evaluating what is the highest and best use of the Lands, recognizing that many of the projects we are considering now will still be on the ground long after we’re gone.”

William R. “Billy” Murphy, Jr. Chief Executive Officer

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