Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Investor Presentation (August 2022)
21 slides from Chord Energy's investor presentation, Aug 3, 2022
Slide 1: Stronger Together: Positioned for Value Creation
August 3, 2022 Stronger Together Positioned for Value Creation
Slide 2: Chord Energy
Chord Energy Chord (noun) ̂ /kord/ 1. A straight line joining two points on a curve 2. Musical notes played in unison to produce harmony Striking a new chord and creating a new harmony in the industry. Chord Energy combines complementary, high -quality assets and outstanding talent and operational p
Slide 3: Important Disclosures
Important Disclosures Forward-Looking Statements Certain statements in this presentation concerning the merger between Oasis Petroleum Inc. (“Oasis”) and Whiting Petroleum Corporation (“Whiting”), including any statements regarding Chord Energy Corporation’s (“Chord”) expected credit facility, the r
Slide 4: Attractively Positioned / Compelling Valuation
Attractively Positioned / Compelling Valuation SUPERIOR RETURN OF CAPITAL Peer-leading1 return of capital program 75%+ of FCF Total Base dividend increased to $1.25/sh./Q ($5.00 annually) – 3.9% yield2 PEER-LEADING BASE DIVIDEND Designed to be resilient at low prices and sustainable through
Slide 5: Chord Energy is a Premier Williston Basin Company
Chord Energy is a Premier Williston Basin Company • ~$5.3B equity value Materially Enhanced Scale • ~168Mboepd1 forecasted production for FY22 972K 92% 68% • 972k net acres Net Acres Operated2 Working Interest3 High Quality Assets • ~$1.35B forecasted FCF for FY224 Generate Significant, • Inventory
Slide 6: History of Returning Capital
History of Returning Capital Approximately $1.1B of cash returned since 2021 Historical Dividends & Share Appreciation1 Balanced Approach: $160 Total: $156.37 Dividends (over $870MM returned 2021-current)2 $140 • Progressively increased base dividend (3.9% yield leads peers) • Variable dividends use
Slide 7: Chord's Return of Capital Program
Chord’s Return of Capital Program Peer-Leading Return of Capital Program1 FCF Yield2,4 Updated Framework: 26% 23% • Targets a minimum FCF percentage to return each quarter based 22% 22% on forward leverage at $65 WTI and $3 HH 18% — Below 0.5x leverage: 75%+ of FCF 16% 16% 14% — Below 1.0x leverage:
Slide 8: Expected Synergies Create Value
Expected Synergies Create Value On Track For Exceeding Announced Synergy Estimates PV-10 of Synergies vs. Market Cap $3,000 Announced $65MM of annualized synergies by 2H23: $2,639 G&A (~$35MM of savings) $2,500 • Efficient team structures, flatter organization • Increased span of control for manager
Slide 9: Premier Williston Operator with Top-Tier Assets
Premier Williston Operator with Top-Tier Assets Williston Net Acreage by Operator (‘000s) 972 772 560 480 Burke Renville 460 Sheridan Divide 255 239 85 Williams Chord CLR COP XOM HES MRO ERF DVN Roosevelt Mountrail Ward Williston Net Production by Operator1 Richland 191 171 159 McLean 124 95 69 McKe
Slide 10: Strong Asset Base
Strong Asset Base Excellent well performance: Recent Well Performance1 1100 80 • Recent wells outperforming expectations • Widened avg. well spacing from historical levels 1000 75 Avg. Oil Volumes (Barrels per Day) • Low base declines and downtime 900 70 • Continue to be in the original oil guidance
Slide 11: Attractive Position & Significant Upside Potential
Attractive Position & Significant Upside Potential 2022E NET PRODUCTION (MBOE/D; WALL ST. CONSENSUS ESTIMATES1,2) 239 168 162 149 122 104 98 74 Operator A Chord Operator B Operator C Operator D Operator E Operator F Operator G ENTERPRISE VALUE / 2022E EBITDAX WALL ST. CONSENSUS ESTIMATES1 TRADING AT
Slide 12: ESG: Key Tenets of ESG Philosophy
Key Tenets of ESG Philosophy Minimizing impact where we operate Safety always Reducing our land impact and water use through Maintaining the safety of employees, contractors, investment in infrastructure and optimized operations. and communities is of utmost importance and fundamental to our busines
Slide 13: Impressive Record of Emissions Reduction
Impressive Record of Emissions Reduction Chord GHG Emissions Intensity (TCO2E / MBOE) Reductions Since 20181 41.7 (28%) 30.2 (47%) 16.1 2018 2019 2022 2020 GHG Emission Intensity (TCO2E / MBOE) Top 15 Operators Based on Gross OP. Production 65.5 36.5 35.3 25.3 24.3 22.9 22.3 20.6 17.8 17 16.5 16.1 4
Slide 14: Chord Energy = Premier FCF Focused E&P
Chord Energy = Premier FCF Focused E&P Premier Williston Operator Significant and Resilient Capital Returns Program to with Top Tier Assets Free Cash Flow Generation Deliver Significant Value Enhances size and scale with high quality ~$1.35B of FCF1 expected in 2022 with a Peer leading return of cap
Slide 15: Appendix
Appendix
Slide 16: Premier Management Team Aligned with Shareholders
Premier Management Team Aligned with Shareholders • Strong strategic and cultural alignment • Talented team bring operating best practices • Management team with deep energy industry, M&A and operational Lynn A. Peterson Danny Brown backgrounds Executive Chair of the Board President & Chief Executiv
Slide 17: Short-tenured, Diverse, and Highly Capable Board of Directors
Short-tenured, Diverse, and Highly Capable Board of Directors Danny Brown Douglas Brooks Susan Cunningham Samantha Holroyd Lynn A. Peterson President & Chief Audit Committee / ESG Compensation & ESG Committees ESG Chair / Audit Committee Executive Chair of the Board Executive Officer Committee / Lea
Slide 18: Updated Guidance for Chord – 3Q22 & PF Combined 2022
Updated Guidance for Chord – 3Q22 & PF Combined 2022 HIGHLIGHTS GUIDANCE RANGES • Implied FY 2022 Metrics (actuals in 1H22 and $90/$6 in 3Q22 FY22 forecasted 2H22 at midpoint) Oil Volumes (Mbbl/d) 94.2 - 97.2 95.7 - 97.5 • EBITDA: ~$2.15B Total Volumes (Mboe/d)1 162.5 - 167.5 166.6 - 169.3 • FCF: ~$
Slide 19: Chord PF 1H22 Financial and Operational Results
Chord PF 1H22 Financial and Operational Results* Financial Highlights ($MM) 1Q22 2Q22 Key Operating Statistics 1Q22 2Q22 Oil Revenues $815.7 $902.4 Oil Production (Bopd) 97,419 89,991 Gas Revenues 198.0 218.8 Gas Production (Boepd) 73,693 68,651 Total Oil & Gas Revenue $1,013.7 $1,121.2 Total Produc
Slide 20: Chord Energy Hedge Book & Investment in CEQP
Chord Energy Hedge Book & Investment in CEQP Hedge Book Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 NYMEX WTI Swap volume (mbopd) 28.0 30.0 25.0 16.0 14.0 14.0 Oil Hedging Weighted avg. swap price $72.45 $72.32 $61.57 $53.69 $50.00 $50.00 Collar volume (mbopd) 43.2 42.0 36.0 24.1 14.0 12.0 Weighted avg. cei
Slide 21: Return of Capital – 3Q22 Illustrative Example
Return of Capital – 3Q22 Illustrative Example Key Points: Aim for peer-leading return of capital — Below 0.5x leverage: 75%+ of FCF — Below 1.0x leverage: 50%+ of FCF 3Q22 Return of Capital Example — >1.0x leverage: Base dividend+ Calculation $X 3Q22 Free Cash Flow1 • Target return of capital (RoC)