Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Oasis Petroleum — Merger or Acquisition (May 2022)
19 slides from Chord Energy's merger presentation, May 4, 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 NET ACRES Mboepd1 OPERATED2 WORKING INTEREST3 164.8 Mboe/d 1Q22 net production (3-stream)1 ✓ Materially Enhanced • Scale • 97.8 Mbo/d 1Q22 net production • 972k net acres High-Quality Assets • ~$1.4B FC
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 • Pro forma equity ownership: 53% WLL and 47% OAS1 • Lynn Peterson – Executive Chair • Danny Brown – President and CEO Leadership & Gover
Slide 6: Transaction Accretive on Key Metrics for Both Companies
Transaction Accretive on Key Metrics for Both Companies ✓ E&P Cash Flow Per Share and Free Cash Flow Per Share1 Return of Capital Per Share ✓ ✓ Size and Scale ✓ Net Asset Value ✓ Credit Profile and Cost of Capital 1) Pro forma excluding Oasis ownership of CEQP units 6
Slide 7: Premier Management Team Aligned with Shareholders
Premier Management Team Aligned with Shareholders • Combines talented teams and operating best practices from both companies • Brings together management Lynn Peterson Danny Brown teams with deep energy industry, Executive Chair of the Board President & Chief Executive Officer M&A and operational ba
Slide 8: Premier Williston Operator with Top-Tier Assets
Premier Williston Operator with Top-Tier Assets WILLISTON NET ACREAGE BY OPERATOR (‘ 000s) 972 772 560 492 480 480 460 255 239 85 PF Combo CLR COP OAS WLL XOM HES MRO ERF DVN WILLISTON NET PRODUCTION BY OPERATOR 1 191 168 159 124 95 93 75 69 55 CLR PF Combo HES MRO COP WLL OAS ERF DVN ASSET HIGHLIGH
Slide 9: Significant FCF Generation Accretive to Return of Capital Program in 2022
Significant FCF Generation Accretive to Return of Capital Program in 2022 A C C R E T I V E R E T U R N O F C A P I TA L 2 H 2 2 E F C F G E N E R AT I O N AT VA R I O U S W T I P R I C E S PROGRAM FOR 2022 • Pre-close: $1,200 • Current formally announced plans1 • Special OAS dividend of $15.00 per
Slide 10: ESG
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, investment in infrastructure and optimized operations. contractors, and communities is of utmost importance and fundamental to our busines
Slide 11: Impressive Record of Emissions Reduction
Impressive Record of Emissions Reduction WLL + OAS G H G E M ISSION S IN TE N SIT Y ( TCO2 E / M B OE )RED U CTION S SIN CE 2 01 8 1 41.7 (28%) (47%) 30.2 16.1 2018 2019 2020 2 0 2 0 G H G E M ISSION IN TE N SIT Y ( TCO2 E / M B OE ) Header T O P 1 5 O P E R AT O R S B A S E D O N G R O S S O P. P R
Slide 12: Attractive Pro Forma Positioning
Attractive Pro Forma Positioning 2 0 2 2 E N E T P ROD UCTION ( M B OE/D AN D M B O/ D ; WALL ST. CON SE N SUS E STIM ATE S 1 ) 234 167 162 149 113 105 97 98 93 78 72 70 66 74 72 60 55 53 44 32 (2) Peer A NewCo (2) Peer B Peer C Peer D Peer E Peer F WLL OAS Peer G 2 0 2 2 E E B ITDAX ( $ B ; WALL ST
Slide 13: Significant Upside Potential
Significant Upside Potential E N TE RP RISE VALUE / 2 0 2 2 E E B ITDAX WA L L S T. C O N S E N S U S E S T I M AT E S 1 TRADING AT MEDIAN OF 3.3X 4.2x WOULD EQUATE TO ~27% 3.5x UPLIFT IN NEWCO VALUE 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 2 0 2 2 E F
Slide 14: Whiting + Oasis = Premier FCF Focused E&P
Whiting + Oasis = 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 ~$1.4B of FCF1 expected in 2022 with a Targeting return of capi
Slide 15: Appendix
Appendix 15
Slide 16: Combined 2022 Program Maximizes Returns
Combined 2022 Program Maximizes Returns 2022 GUIDANCE RANGE S 2 HIGHLIGHTS Oil Volumes (Mbbl/d) 94.0 - 100.0 • Investing $655-695MM in attractive • 3-stream volumes of 164-169 projects across core of Williston Mboe/d3 (~58% oil cut ) Total Volumes (Mboe/d)3 164.0 - 169.0 Basin – Volumes an output of
Slide 17: Oasis Stand-Alone 1Q22 Highlights & 2Q22 Guidance
Oasis Stand-Alone 1Q22 Highlights & 2Q22 Guidance 2 Q2 2 G UIDAN CE RAN G E S 2 I n c l ud i n g E x c l ud in g M i d p o in t 1Q HIGHLIGHTS We a t h e r We a t h e r D i f fe r e nc e • Volumes exceeded high-end of guidance Oil Volumes (Mbbl/d) 36.0 – 39.0 41.0 – 44.0 (5.0) – 69.6 Mboepd vs. guida
Slide 18: Oasis Financial and Operational Results
Oasis Financial and Operational Results Financial Highlights ($MM) 4Q21 1Q22 Key Operating Statistics 4Q21 1Q22 Oil Revenues 312.1 385.9 Oil Production (Boepd) 44,422 44,975 Footnotes Gas Revenues 96.6 107.6 Gas Production (Mcfpd) 146,196 147,783 1) 4Q21/1Q22 excludes ~$1MM/~$4.1MM of legal and othe
Slide 19: Combined OAS & WLL Hedge Book & Investment in CEQP
Combined OAS & WLL Hedge Book & Investment in CEQP H E D GE Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 B O OK 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.