Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Investor Presentation (July 2022)
19 slides from Chord Energy's investor presentation, Jul 1, 2022
Slide 1: Stronger Together: Positioned for Value Creation
July 1, 2022 Stronger Together Positioned for Value Creation
Slide 2: Welcome to Chord Energy
Welcome to Chord Energy Chord (noun) ̂ /kord/ 1. A straight line joining two points on a curve 2. Musical notes played in unison to produce harmony By bringing together Whiting and Oasis in a merger of equals, we joined two excellent oil and gas operators to strike a new chord and created a new harm
Slide 3: Important Disclosures
Important Disclosures Forward-Looking Statements Certain statements in this presentation concerning the Oasis Petroleum Inc. (“Oasis”) and Whiting Petroleum Corporation (“Whiting”) merger, including any statements regarding Chord Energy Corporation’s (“Chord”) expected credit facility, the results,
Slide 4: Chord Energy is a Premier Williston Basin Company
Chord Energy is a Premier Williston Basin Company • ~$5 B equity value Materially Enhanced Scale • 171.1 Mboe/d 1Q22 net production (3 stream)1 • 97.8 Mbo/d 1Q22 net production 972K 171.1 92% 68% • 972k net acres Net Acres Mboepd1 Operated2 Working Interest3 High Quality Assets • $1.4B FCF for full
Slide 5: 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 ownership of CEQP units 5
Slide 6: 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 7: 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 Williston Net Production by Operator1 Ward Richland 191 171 159 McLean 124 95 69 McKe
Slide 8: Significant FCF Generation Accretive to Return of Capital Program in 2022
Significant FCF Generation Accretive to Return of Capital Program in 2022 Accretive Return of Capital Program for 2022 2H22E FCF Generation at Various WTI Prices 1H22: $1,200 • ~$160MM of capital returned to shareholders through base and variable dividends1 $1,000 Merger Close: $800 • ~$540MM of cas
Slide 9: ESG Key Tenets
Key Tenets of ESG Philosophy Minimizing impact where we operate Safety always Reducing our land impact and water use through Maintaining the safety of employees, contractors, investment in infrastructure and optimized operations. and communities is of utmost importance and fundamental to our busines
Slide 10: Impressive Record of Emissions Reduction
Impressive Record of Emissions Reduction Chord GHG Emissions Intensity (TCO2E / MBOE) Reductions Since 20181 41.7 (28%) 30.2 (47%) 16.1 2018 2019 2022 2020 GHG Emission Intensity (TCO2E / MBOE) Top 15 Operators Based on Gross OP. Production 65.5 36.5 35.3 25.3 24.3 22.9 22.3 20.6 17.8 17 16.5 16.1 4
Slide 11: Short-tenured, Diverse, and Highly Capable Board of Directors
Short-tenured, Diverse, and Highly Capable Board of Directors Danny Brown Douglas Brooks Susan Cunningham Samantha Holroyd Lynn A. Peterson President & Chief Audit Committee / ESG Compensation & ESG Committees ESG Chair / Audit Committee Executive Chair of the Board Executive Officer Committee / Lea
Slide 12: Attractive Pro Forma Positioning
Attractive Pro Forma Positioning 2022E NET PRODUCTION (MBOE/D AND MBO/D; WALL ST. CONSENSUS ESTIMATES1,2) 240 173 162 149 122 104 98 73 Operator A Chord Operator B Operator C Operator D Operator E Operator F Operator G 2022E EBITDAX ($B; WALL ST. CONSENSUS ESTIMATES1) $3.1 $2.4 $2.2 $2.2 $2.2 $1.8 $
Slide 13: Significant Upside Potential
Significant Upside Potential ENTERPRISE VALUE / 2022E EBITDAX WALL ST. CONSENSUS ESTIMATES1 TRADING AT MEDIAN OF 2.8X WOULD 3.6x EQUATE TO ~22% UPLIFT IN NEWCO VALUE 3.2x 3.0x 2.8x 2.7x 2.5x 2.3x 2.0x (2) Operator A Operator B Operator C Operator D Operator E Operator F Chord Operator G 2022E FCF YI
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 ~$1.4B of FCF1 expected in 2022 with a Targeting return of capital
Slide 15: Appendix
Appendix
Slide 16: Combined 2022 Program Maximizes Returns
Combined 2022 Program Maximizes Returns HIGHLIGHTS 2022 GUIDANCE RANGES 2 Oil Volumes (Mbbl/d) 94.0 - 100.0 • Investing $655-695MM in • 3-stream volumes of 170-175 attractive projects across core Mboe/d3 (~56% oil cut ) Total Volumes (Mboe/d)3 170.0 - 175.0 of Williston Basin – Volumes an output of
Slide 17: Preliminary PF Chord 2Q22 Guidance
Preliminary PF Chord 2Q22 Guidance HIGHLIGHTS 2Q22 GUIDANCE RANGES 1 • Exceeded expected pace for bringing wells online that were down due to inclement weather in 2Q OAS WLL PF Chord • Internal process during 2Q to convert two stream to three stream at OAS resulted in updated view of shrink and yiel
Slide 18: Chord PF 1Q22 Financial and Operational Results
Chord PF 1Q22 Financial and Operational Results* Financial Highlights ($MM) OAS WLL PF Key Operating Statistics OAS WLL PF Oil Revenues 385.9 429.8 815.7 Oil Production (Bopd) 44,975 52,444 97,419 Gas Revenues 107.6 90.4 198.0 Gas Production (Boepd) 37,160 36,533 73,693 Total Oil & Gas Revenue 493.5
Slide 19: Chord Energy Hedge Book & Investment in CEQP
Chord Energy Hedge Book & Investment in CEQP Hedge Book Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 NYMEX WTI Swap volume (mbopd) 28.0 28.0 30.0 25.0 16.0 14.0 14.0 Oil 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 24.1 14.0