Whiting Petroleum — Merger or Acquisition (May 2022)
19 slides from Whiting Petroleum's merger presentation, May 5, 2022
Slide 1: Whiting & Oasis Strategic Merger Of Equals
Whiting & Oasis Strategic Merger Of Equals May 4, 2022
Slide 2: Important Disclosures
Important Disclosures No Offer or Solicitation Communications in this investor presentation do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor s
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Forward-Looking Statements Certain statements in this document concerning the transaction, including any statements regarding the expected timetable for completing the transaction, the results, effects, benefits and synergies of the transacti
Slide 4: Combined Company Will Be a Premier Williston Basin Company
Combined Company Will Be a Premier Williston Basin Company 972k 164.8 92% 68% • >$5B equity value 2 3 1 NET ACRES OPERATED WORKING INTEREST Mboepd 1 • 164.8 Mboe/d 1Q22 net production (3-stream) Materially Enhanced ✓ Scale • 97.8 Mbo/d 1Q22 net production • 972k net acres High-Quality Assets 4 • ~$1
Slide 5: Transaction Overview
Transaction Overview • 0.5774 OAS shares and $6.25 of cash per WLL share Transaction • Special dividend of $15.00 per share to OAS shareholders at close Structure 1 • Pro forma equity ownership: 53% WLL and 47% OAS • Lynn Peterson – Executive Chair • Danny Brown – President and CEO Leadership & Gove
Slide 6: Transaction Accretive on Key Metrics for Both Companies
Transaction Accretive on Key Metrics for Both Companies 1 E&P Cash Flow Per Share and Free Cash Flow Per Share ✓ Return of Capital Per Share ✓ Size and Scale ✓ Net Asset Value ✓ ✓ Credit Profile and Cost of Capital 6 1) Pro forma excluding Oasis ownership of CEQP units
Slide 7: Premier Management Team Aligned with Shareholders
Premier Management Team Aligned with Shareholders • Combines talented teams and operating best practices from both companies Lynn Peterson Danny Brown • Brings together management Executive Chair of the Board President & Chief Executive Officer teams with deep energy industry, M&A and operational ba
Slide 8: Premier Williston Operator with Top-Tier Assets
Premier Williston Operator with Top-Tier Assets W I L L I S T O N N E T A C R E A G E B Y O P E R A T O R ( ‘ 0 0 0 s ) 972 772 560 492 480 480 460 255 239 85 PF Combo CLR COP OAS WLL XOM HES MRO ERF DVN 1 W I L L I S T O N N E T P R O D U C T I O N B Y O P E R A T O R 191 168 159 124 95 93 75 69 55
Slide 9: Significant FCF Generation Accretive to Return of Capital Program in 2022
Significant FCF Generation Accretive to Return of Capital Program in 2022 AC C R E T IV E R E T UR N O F C A P I TA L 2 H 2 2E F C F G E N E R AT ION AT VA R I OUS W T I P R I C E S P R O G R A M FO R 2 0 22 • Pre-close: $1,200 1 • Current formally announced plans • Special OAS dividend of $15.00 pe
Slide 10: Key Tenets of ESG Philosophy
Key Tenets of ESG Philosophy Safety Always Minimizing impact where we operate Maintaining the safety of employees, Reducing our land impact and water use through contractors, and communities is of utmost investment in infrastructure and optimized operations. importance and fundamental to our busines
Slide 11: Impressive Record of Emissions Reduction
Impressive Record of Emissions Reduction WLL + OAS GHG EMISSIONS INTENSIT Y (TCO2E / MBOE)REDUCTIONS SINCE 1 2018 41.7 (28%) (47%) 30.2 16.1 2018 2019 2020 2020 GHG EMISSION INTENSIT Y (TCO2E / MBOE) Header TOP 1 5 OP E RATORS B A S E D ON G ROS S OP. P RODUC TI ON 65.5 36.5 35.3 25.3 24.3 22.9 22.3
Slide 12: Attractive Pro Forma Positioning
Attractive Pro Forma Positioning 1 2022E NET PRODUCTION ( MBOE/D AND MBO/D; WALL ST. CONSENSUS ESTIMATES ) 234 167 162 149 113 105 97 98 93 78 74 72 70 72 66 60 55 53 44 32 (2) (2) Peer A NewCo Peer B Peer C Peer D Peer E Peer F WLL OAS Peer G 1 2022E EBITDAX ($B; WALL ST. CONSENSUS ESTIMATES ) Head
Slide 13: Significant Upside Potential
Significant Upside Potential ENTERPRISE VALUE / 2022E EBITDAX 1 TRADING AT MEDIAN OF 3.3X WA L L S T. C O N S E NS US E S T I M AT E S WOULD EQUATE TO ~27% 4.2x UPLIFT IN NEWCO VALUE 3.5x 3.4x 3.3x 3.2x 3.0x 2.6x 2.5x (2) Peer A Peer B Peer C Peer D Peer E Peer F NewCo Peer G 3 2022E FCF YIELD WA L
Slide 14: Whiting + Oasis = Premier FCF Focused E&P
Whiting + Oasis = Premier FCF Focused E&P Capital Returns Program to Significant and Resilient Premier Williston Operator Deliver Significant Value Free Cash Flow Generation with Top Tier Assets 1 ~$1.4B of FCF expected in 2022 with a Targeting return of capital at 60% of FCF in Enhances size and sc
Slide 15: Appendix
Appendix 15
Slide 16: Combined 2022 Program Maximizes Returns
Combined 2022 Program Maximizes Returns 2 2022 GUIDANCE RANGES H I G H L I G H T S Oil Volumes (Mbbl/d) 94.0 - 100.0 • Investing $655-695MM in attractive • 3-stream volumes of 164-169 3 3 Total Volumes (Mboe/d) 164.0 - 169.0 projects across core of Williston Mboe/d (~58% oil cut ) Basin – Volumes an
Slide 17: Oasis Stand-Alone 1Q22 Highlights & 2Q22 Guidance
Oasis Stand-Alone 1Q22 Highlights & 2Q22 Guidance 2 2Q22 GUIDANCE RANGES Including Excluding Midpoint Weather Weather Dif ference 1 Q H I G H L I G H T S • Volumes exceeded high-end of guidance Oil Volumes (Mbbl/d) 36.0 – 39.0 41.0 – 44.0 (5.0) – 69.6 Mboepd vs. guidance of 66.5-67.5 Mboepd Total Vo
Slide 18: Oasis Financial and Operational Results
Oasis Financial and Operational Results Financial Highlights ($MM) Key Operating Statistics 4Q21 1Q22 4Q21 1Q22 Footnotes Oil Revenues 312.1 385.9 Oil Production (Boepd) 44,422 44,975 1) 4Q21/1Q22 excludes ~$1MM/~$4.1MM Gas Revenues 96.6 107.6 Gas Production (Mcfpd) 146,196 147,783 of legal and othe
Slide 19: Combined OAS & WLL Hedge Book & Investment in CEQP
Combined OAS & WLL Hedge Book & Investment in CEQP HEDGE Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 BOOK NYMEX WTI Oil Swap volume (mbopd) 28.0 28.0 30.0 25.0 16.0 14.0 14.0 Hedging Weighted avg. swap price $72.45 $72.45 $72.32 $61.57 $53.69 $50.00 $50.00 Collar volume (mbopd) 49.0 43.2 42.0 36.0 24.