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Investor Presentaiton

QuarterNorth Energy Top 10 Exposures 1. 2. NexPoint Storage Partners NexPoint Homes 3. NexPoint Real Estate Finance 4. EDS Legacy Partners INVESTMENT BACKGROUND QuarterNorth Energy Holding Inc. ("QNE") is one of the largest independent offshore exploration and production operators in the United States with a diverse footprint spanning the Gulf of Mexico. QNE was formed in August 2021 to purchase certain oil and natural gas properties from Fieldwood Energy Inc., which filed for bankruptcy in 2020. In managing its business, QNE is focused on optimizing production and increasing reserves in a profitable and prudent manner, while managing cash flows to meet its obligations and investment needs. The company's goal is to grow its production, reserves, and cash flow in a capital efficient manner by pursuing low-risk, high-return projects that organically enhance the value of its deepwater oil and gas assets. The company is based in Houston, Texas. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry 2021 4.50% $47.1M Debt, Private Equity Energy 5. IQHQ 6. QuarterNorth Energy 7. NexPoint Hospitality Trust INVESTMENT UPDATE In November, QNE reported strong operational and financial results for the fiscal quarter ended September 30, 2023. The key highlights for the quarter were record oil and gas production due to the successful completion of the Katmia West well. The company plans to drill another offsetting well in 2024 and upgrade the production platform. In addition, the company sold its Plugging & Abandonment business and closed on the sale of its shelf properties. 8. CCS Medical Freddie Mac 21K- 9. F103 10. Easton Village Ventures NOVEMBER 2023 12
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