Whiting Petroleum — Merger or Acquisition (March 2022)
17 slides from Whiting Petroleum's merger presentation, Mar 7, 2022
Slide 1: Whiting & Oasis Strategic Merger Of Equals
February 2022 Insert Title March 7, 2022 Whiting & Oasis Strategic Merger Of Equals Confidential Draft - 3/6
Slide 2: Important Disclosures
Important Disclosures 2 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
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward - Looking Statements 3 Forward - Looking Statements Certain statements in this document concerning the transaction, including any statements regarding the expected timetable for co mpleting the transaction, the results, effects, benefits and synergies of the tr
Slide 4: Combined Company Will Be a Premier Williston E&P
Materially Enhanced Scale • ~$6B equity value • 167.8 Mboe/d 4Q21 net production (3 - stream) 1 • 97.3 Mbo/d 4Q21 net production • 972k net acres High - Quality Assets Generate Significant, Sustainable Free Cash Flow • ~$1.2B FCF for full year 2022E 4 • Combined inventory supports ~10 years of devel
Slide 5: Transaction Overview
5 Transaction Overview Transaction Structure • 0.5774 OAS shares and $6.25 of cash per WLL share • Special dividend of $15.00 per share to OAS shareholders at close • Pro forma equity ownership: 53% WLL and 47% OAS 1 Leadership & Governance • Lynn Peterson – Executive Chair • Danny Brown – President
Slide 6: Transaction Accretive on Key Metrics for Both Companies
Transaction Accretive on Key Metrics for Both Companies 6 E&P Cash Flow Per Share and Free Cash Flow Per Share 1 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
Slide 7: Premier Management Team Aligned with Shareholders
Premier Management Team Aligned with Shareholders 7 Lynn Peterson Executive Chair of the Board • Current Whiting director, President & CEO since September 2020 • Former Chairman, CEO and President of SRC Energy and Co - founder, director, President & CEO of Kodiak Oil & Gas Corporation Danny Brown P
Slide 8: Premier Williston Operator with Top-Tier Assets
Sources: Company filings and Enverus 1) 4Q21 reported Williston production. Converted to 3 - stream for operators with 2 - stream reported production. 2) Economic locations (>30% IRR @ $60/Bbl WTI flat) and assuming 108 - 110 2022E TILs 8 Premier Williston Operator with Top - Tier Assets WILLISTON N
Slide 9: Significant FCF Generation Accretive to Return of Capital Program in 2022
- $200 $400 $600 $800 $1,000 $1,200 $50 $65 $85 $MM WTI Prices CFFO FCF Return of Capital Base Dividend 1) OAS expects $70MM per quarter return of capital through $0.585/share base dividend and balance with variable dividend. OA S d oes not expect to repurchase shares before close of transaction. WL
Slide 10: Key Tenets of ESG Philosophy
10 Header Key Tenets of ESG Philosophy ESG KEY TENETS Minimizing impact where we operate Reducing our land impact and water use through investment in infrastructure and optimized operations. Aligning incentives Aligning executive compensation with long term value creation and shareholder interests i
Slide 11: Impressive Record of Emissions Reduction
41.7 30.2 16.1 2018 2019 2020 11 Header Impressive Record of Emissions Reduction WLL + OAS GHG EMISSIONS INTENSITY (TCO2E / MBOE)REDUCTIONS SINCE 2018 1 2020 GHG EMISSION INTENSITY (TCO2E / MBOE) TOP 15 OPERATORS BASED ON GROSS OP. PRODUCTION Sources: EPA and Enverus. (1) Williston Basin - only, exc
Slide 12: Attractive Pro Forma Positioning
12 Header Attractive Pro Forma Positioning 2022E NET PRODUCTION ( MBOE/D AND MBO/D; WALL ST. CONSENSUS ESTIMATES 1 ) 2022E EBITDAX ($ B; WALL ST. CONSENSUS ESTIMATES 1 ) (2) (2) Source: FactSet as of 3/4/2022. Note: Peers include CIVI, CPE, ERF, MGY, MTDR, PDCE and SM. (1) OAS and WLL figures shown
Slide 13: Significant Upside Potential
13 Significant Upside Potential ENTERPRISE VALUE / 2022E EBITDAX WALL ST. CONSENSUS ESTIMATES 1 2022E FCF YIELD 3 WALL ST. CONSENSUS ESTIMATES TRADING AT MEDIAN OF 4.01X WOULD EQUATE TO ~25% UPLIFT IN NEWCO VALUE (2) (2) 6.1x 4.7x 4.3x 4.1x 3.9x 3.8x 3.2x 3.0x Peer A Peer B Peer C Peer D Peer E Peer
Slide 14: Whiting + Oasis = Premier FCF Focused E&P
Whiting + Oasis = Premier FCF Focused E&P Compelling Long Term Value Proposition Attractive pro forma valuation vs peers result in compelling investment opportunity Significant and Resilient Free Cash Flow Generation ~$1.2B of FCF 1 expected in 2022 with a combined reinvestment rate below 40% Experi
Slide 15: Appendix
Appendix 15
Slide 16: Combined 2022 Program Maximizes Returns
1) EBITDAX, reinvestment rate & FCF before dividends run at $85 WTI and $3.50 HH at approximately midpoint of guidance . 2) Excludes effective synergies. 3) Assumes Oasis volumes as 3 - stream using 9% uplift to volumes (mboepd) to convert from 2 to 3 stream. 4) Gas revenue ($/boe) represents estima
Slide 17: Combined Hedge Book & Investment in CEQP
17 Combined Hedge Book & Investment in CEQP HEDGE BOOK CEQP UNITS CEQP CASH FLOW IN 2022 CEQP Capital Structure MM 2022 Distribution per Unit 2022E PF Distribution (MM) Public Units 75.69 PF OAS/WLL Units 21.0 $2.59 $54.4 Total Units 96.75 Q1 - 22 Q2 - 22 Q3 - 22 Q4 - 22 Q1 - 23 Q2 - 23 Q3 - 23 Q4 -
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