Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Q3 2022 Earnings Presentation
21 slides from Chord Energy's earnings presentation, Nov 3, 2022
Slide 1: Stronger Together, Positioned for Value Creation
November 2, 2022 Stronger Together Positioned for Value Creation
Slide 2: Chord (noun)
Chord Energy Chord (noun) ̂ /kord/ 1. A straight line joining two points on a curve 2. Musical notes played in unison to produce harmony Striking a new chord and creating a new harmony in the industry. Chord Energy combines complementary, high -quality assets and outstanding talent and operational p
Slide 3: Important Disclosures
Important Disclosures Forward-Looking Statements Certain statements in this presentation concerning the merger between Oasis Petroleum Inc. (“Oasis”) and Whiting Petroleum Corporation (“Whiting”), including any statements regarding Chord Energy Corporation’s (“Chord”) expected credit facility, the r
Slide 4: Attractively Positioned / Compelling Valuation
Attractively Positioned / Compelling Valuation SUPERIOR RETURN OF CAPITAL Peer-leading1 return of capital program ~85% of FCF in 3Q22 Expect 75%+ of FCF at current leverage levels Total Base dividend $1.25/sh./Q ($5.00 annually) – 3.2% yield2 PEER-LEADING BASE DIVIDEND Designed to be resil
Slide 5: Chord Energy is a Premier Williston Basin Company
Chord Energy is a Premier Williston Basin Company • ~$6.4B equity value Materially Enhanced Scale • ~169Mboepd1 forecasted production for FY22 972K 92% 68% • 972k net acres Net Acres Operated2 Working Interest3 High Quality Assets • ~$1.3B forecasted FCF for FY224 Generate Significant, • Inventory s
Slide 6: History of Returning Capital
History of Returning Capital Approximately $1.3B of cash returned since 2021 Historical Dividends & Share Appreciation1 Balanced Approach: $200 Total: $187.48 Dividends (~$1.1 B returned 2021-current)2 $180 • Progressively increased base dividend (3.2% yield leads peers) $160 • Variable dividends us
Slide 7: Chord's Return of Capital Program
Chord’s Return of Capital Program Peer-Leading Return of Capital Program1 Annualized Shareholder Return Yield2,4 20.0% Framework: 17.9% • Targets a minimum FCF percentage to return each quarter based 18.0% on forward leverage at $65 WTI and $3 HH 16.0% 16.0% — Below 0.5x leverage: 75%+ of FCF 14.0%
Slide 8: Expected Synergies Create Value
Expected Synergies Create Value On Track For Exceeding Announced Synergy Estimates PV-10 of Synergies vs. Market Cap $3,000 $100MM+ of annualized synergies: $2,639 G&A (~$35MM of savings) $2,500 • Efficient team structures, flatter organization • Increased span of control for managers $2,000 • Conso
Slide 9: Premier Williston Operator with Top-Tier Assets
Premier Williston Operator with Top-Tier Assets Williston Net Acreage by Operator (‘000s) 972 772 Divide Burke Renville 560 Sheridan 480 460 255 239 Williams 85 Chord CLR COP XOM HES MRO ERF DVN Roosevelt Mountrail Ward Williston Net Production by Operator1 Richland 192 147 140 McLean 114 91 59 McKe
Slide 10: Strong Asset Base
Strong Asset Base Excellent well performance: Recent Well Performance1 • Recent wells outperforming expectations allowing Company to 1100 100 exceed 3Q22 volume guidance with fewer completions than 1000 originally planned 90 900 • Widened avg. well spacing from historical levels Average Oil Volumes
Slide 11: ESG
Key Tenets of ESG Philosophy Minimizing impact where we operate Safety always Reducing our land impact and water use through effective Maintaining the safety of employees, contractors, utilization of infrastructure and optimized operations. and communities is of utmost importance and fundamental to
Slide 12: 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 2020 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 13: 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 ~$1.3B of FCF1 expected in 2022 with a Peer leading return of capi
Slide 14: Appendix
Appendix
Slide 15: Updated Guidance for Chord – 3Q22 & PF Combined 2022
Updated Guidance for Chord – 3Q22 & PF Combined 2022 HIGHLIGHTS GUIDANCE RANGES • Implied FY 2022 Metrics (actuals in YTD through 3Q22 4Q22 and $85/$5 in forecasted 4Q22 at midpoint) Oil Volumes (Mbbl/d) 97.5 - 100.5 Gas Volumes (MMcf/d) 217.0 - 223.0 • EBITDA: ~$2.1B NGL Volumes (Mbbl/d) 36.5 - 37.
Slide 16: Chord Financial and Operational Results
Chord Financial and Operational Results 90 91 92 Financial Highlights ($MM) 1Q22 2Q22 3Q22 Key Operating Statistics 1Q22 2Q22 3Q22 Oil Revenues $815.7 $902.4 $824.3 Oil Production (Bopd) 97,421 89,991 96,201 NGL Revenues $58.2 $51.2 $106.2 NGL Production (Boepd) 37,160 34,810 38,693 Gas Revenues $13
Slide 17: Chord Energy Hedge Book & Investment in CEQP
Chord Energy Hedge Book & Investment in CEQP Hedge Book Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 NYMEX WTI Swap volume (mbopd) 30.0 25.0 16.0 14.0 14.0 Oil Hedging Weighted avg. swap price $72.32 $61.57 $53.69 $50.00 $50.00 Collar volume (mbopd) 42.0 36.0 24.1 14.0 12.0 Weighted avg. ceiling price $60.00 $59.1
Slide 18: Return of Capital – 3Q22 Example
Return of Capital – 3Q22 Example Key Points: Aim for peer-leading return of capital — Below 0.5x leverage: 75%+ of FCF — Below 1.0x leverage: 50%+ of FCF 3Q22 Return of Capital — >1.0x leverage: Base dividend+ Calculation $326 3Q22 Free Cash Flow1 • Target return of capital (RoC) determined at quart
Slide 19: Strong Financial Position
Strong Financial Position 2023E LEVERAGE (CONSENSUS ESTIMATES1) 1.6 1.4 1.4 1.2 Current Net Debt / 2023E EBITDA 1.0 0.8 0.6 0.6 0.6 0.5 0.4 0.4 0.2 (0.1) (0.1) (0.0) 0.0 CHRD Operator A Operator B Operator C Operator D Operator E Operator F Operator G (0.2) (0.4) Best-in-class balance sheet 1) Peers
Slide 20: 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 21: 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