Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Q4 2023 Earnings Presentation
20 slides from Chord Energy's earnings presentation, Feb 21, 2024
Slide 1: Positive Rate of Change Continues
May 7, 2024 Positive Rate of Change Continues
Slide 2: Important Disclosures
Important Disclosures No Offer or Solicitation Communications in this document 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 pending arrangement between Chord and Enerplus (the “
Slide 3: Important Disclosures: Forward-Looking and Cautionary Statements
Important Disclosures Forward-Looking and Cautionary Statements Certain statements in this document concerning the proposed Arrangement, including any statements regarding the expected timetable for completing the Arrangement, the results, effects, benefits and synergies of the Arrangement, future o
Slide 4: Creating a Premier Williston Basin Oil Operator
Creating a Premier Williston Basin Oil Operator + Top Tier Asset & Operations Significant Scale, Synergies & Accretion • Chord ~$7.5B market cap1 Williston operator with a leading • Chord + Enerplus ~$11B market cap1 Williston operator and production profile: 99.0 MBopd / 168.4 Mboepd in 1Q24 larges
Slide 5: Positive Rate of Change Continues with Enerplus
Positive Rate of Change Continues with Enerplus Top-Tier Assets and Basin Expertise Premier Williston Acreage Position • ERF’s top-tier assets expected to “jump the s-curve” applying Chord’s technical knowledge • Low break-even drilling inventory and peer-leading oil-weighted production • Prioritize
Slide 6: Chord + Enerplus = Compelling Investment Opportunity
Chord + Enerplus = Compelling Investment Opportunity Highlights 2025E EBITDA Multiple1 4.8x 4.4x • Asset continues to outperform expectations 4.1x 4.2x 3.9x • Better performance with wider spacing • 3-mile laterals improving returns, upside with 4-mile laterals • Extensive analogs across basin impro
Slide 7: Chord's Leading Financial Position
Chord’s Leading Financial Position Credit Ratings • S&P BB- • Moody’s Ba2 • Positive outlooks issued in February 2024 • Enerplus combination strengthens financial profile Low Leverage • 0.2x pro forma estimated at close of Enerplus merger • Target sub-1x in normalized price environment1 • Financial
Slide 8: Chord's Stand-Alone Return of Capital Program
Chord’s Stand-Alone Return of Capital Program 2024 Capital Allocation1 2023 Return of Capital (“RoC”) $2,000 Significant Cash Generation 2024 EBITDA - $1.9B ~$1.8B Returned Since $1,728 July 2022 $1,500 $(955) ~$646MM $Millions Returned in $1,000 FY232 $773 $127 $905MM - $945MM ~$870MM 2024 FCF $151
Slide 9: Longer Laterals Improving Returns
Longer Laterals Improving Returns Longer Laterals Drive Better Economics Increasing 3-Mile TILs2 • ~25pt IRR increase: 40%+ higher EUR / ~20% increase in well costs 67% 70% o Economics in western acreage comparable to 2-mile basin core 60% Percentage of Gross • Estimating 80% productivity for 3rd mi
Slide 10: Committed to continuous improvement of ESG Performance
Committed to continuous improvement of ESG Performance Chord maintains sustainable energy practices that exemplify our commitment to energy security and availability Environmental Scope 1 Intensity Methane Reduction Spill Management Biodiversity 53% 47% 54% <1% Decrease in operated Decrease in opera
Slide 11: 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 ~$870MM1 FCF and ~50%1 reinvestment rate Peer leading return of ca
Slide 12: Supplementary Information
lf Supplementary-Information i
Slide 13: Chord + Enerplus Transaction Overview
Chord + Enerplus Transaction Overview • Combined >$11B enterprise value, inclusive of Enerplus’ net debt1 A Premier Williston Acreage Position • Each Enerplus common share will be exchanged for 0.10125 shares of Chord common stock and US$1.84 per share in cash, representing 90% stock / 10% cash cons
Slide 14: Premier Leadership Team Aligned with Shareholders
Premier Leadership Team Aligned with Shareholders Pro Forma Chord Leadership Team • Strong strategic and cultural alignment • Talented team brings operating best practices • Management team with deep energy industry, Danny Brown M&A and operational backgrounds Susan Cunningham Ian Dundas Director, P
Slide 15: Complementary Combination Results in Significant Synergies
Complementary Combination Results in Significant Synergies Combination drives >$750MM (After-Tax PV-10) of estimated synergies with $150MM+/year in expected cost savings After-Tax PV-10 > $750MM Initiates in late 2025, largely realized in 2026 Beginning in 2025 $55MM $150MM+ Beginning immediately an
Slide 16: Compelling Valuation and Returns Profile
Compelling Valuation and Returns Profile 2024 Free Cash Flow Outlook1 2024 Reinvestment Rate2 $1,400 16% 65% $1,200 13% 14% 60% 60% 11% 12% 55% Peer 58% $1,000 Average 58% Reinvestment Rate 10% 9% 55% $800 FCF ($MM) XOP 8.7% FCF Yield ($79 WTI) 8% 52% $600 50% 49% 6% $400 4% 45% $200 2% $- 0% 40% $7
Slide 17: Return of Capital
Return of Capital Aim for peer-leading return of capital 1Q24 Return of Capital ($MM, except per share) — Below 0.5x leverage: 75%+ of FCF — Below 1.0x leverage: 50%+ of FCF $204 1Q24 Free Cash Flow1,2 — >1.0x leverage: Base dividend+ ($5.00/sh annual) x 75% Target 75%+ at Current Leverage Calculati
Slide 18: 2024 Outlook (Chord Standalone)
2024 Outlook (Chord Standalone) Development Highlights Guidance Ranges 1 • Gross Operated TIL estimate 2Q24 FY24 • 103 –113 TILs,~76% WI Oil volumes (MBopd) 97.5 - 100.5 97.0 - 101.0 • ~2/3 3-mile laterals NGL volumes (MBblpd) 34.0 - 35.0 34.0 - 35.0 • 26 – 30 TILs in 2Q24 Natural gas volumes (MMcfp
Slide 19: Chord Financial and Operational Results
Chord Financial and Operational Results1 Financial Highlights ($MM) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Key Operating Statistics Q2 2023 Q3 2023 Q4 2023 Q1 2024 Oil Revenues $648 $776 $761 $679 Oil Production (MBopd) 96.4 101.4 106.2 99.0 NGL Revenues 29 41 46 47 NGL Production (MBoepd) 36.0 36.0 38.1 3
Slide 20: Chord Energy Hedges
Chord Energy Hedges1 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 FY24 FY25 FY26 Crude Oil - Collars Volume (Bbl/d) 16,000 21,000 19,000 16,000 5,000 5,000 3,000 - 17,997 3,236 - Floor ($/Bbl) $ 65.31 $ 66.90 $ 67.11 $ 65.94 $ 60.00 $ 60.00 $ 60.00 $ - $ 66.39 $ 60.00 $ - Cap ($/Bbl) $ 85.93 $ 84.86 $ 83