Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Q3 2024 Earnings Presentation
21 slides from Chord Energy's earnings presentation, Nov 7, 2024
Slide 1: Durable Free Cash Flow Generation with Improving Returns
November 6, 2024 Durable Free Cash Flow Generation with Improving Returns
Slide 2: Important Disclosures
Important Disclosures Forward-Looking and Cautionary Statements Certain statements in this presentation, other than statements of historical facts, that address activities, events or developments that Chord expects, believes or anticipates will or may occur in the future, including any statements re
Slide 3: Disciplined Williston, Oil-Focused Operator Delivering Strong Returns
Disciplined Williston, Oil-Focused Operator Delivering Strong Returns Premier Williston Operator Williston Basin Acreage Position Williston Commodity Mix4 • Size & scale with high quality assets • ~$8B market cap1 Production • ~1.3MM net acres • 280.8 MBoepd (~57% oil) in 3Q242 • ~10 years of low-br
Slide 4: Significant and Resilient Free Cash Flow Generation Drives Returns
Significant and Resilient Free Cash Flow Generation Drives Returns Highlights Cumulative Cash Returned to Shareholders2 >$4 Billion since 2021 • Track record of prudent capital allocation Cumulative Returns • Low reinvestment rate keeps volumes stable with high FCF • Enhancing capital efficiency thr
Slide 5: 2025 – 2027 Outlook: Positive Rate of Change Continues
2025 – 2027 Outlook: Positive Rate of Change Continues 2025 – 2027 Plan Highlights Long-Lateral Development2 • Holding oil volumes flat (152 – 153 MBopd) • Capital of $1.4B annually (~$100MM less than 2024) 50% • Enhanced scale, execution, and resource quality drive capital efficiency • Outlook supp
Slide 6: Balance Sheet Supports Leading Financial Position
Balance Sheet Supports Leading Financial Position Low Leverage Credit Rating Strong Liquidity • 0.3x leverage at 3Q24 • S&P BB- • Borrowing base $3B with $1.5B of elected • Target sub-1x in normalized price • Moody’s Ba2 commitments environment1 • Positive outlooks issued in Feb ‘24 • $1.1B of liqui
Slide 7: Delivering on Efficiencies From Longer Laterals
Delivering on Efficiencies From Longer Laterals Long Lateral Highlights Long Laterals Improve Capital Efficiency • Supports shallower declines and lower corporate reinvestment rate • Longer flat period/shallower decline results in 3-mile EUR/ft. = 2-mile • Western acreage 3-mile economics comparable
Slide 8: Long-Term Well Performance Delivering Strong Program Results
Long-Term Well Performance Delivering Strong Program Results 2023 vs. 2024 Program Highlights Oil Base Decline Rate Below Peer Average2 • Conservative spacing and longer laterals support low decline rate • Higher concentration of 3-mile wells in 2024 results in lower early time 44% per foot recovery
Slide 9: Wider Spacing Effective Across Basin
Wider Spacing Effective Across Basin Wider Spacing Highlights Cumulative Uplift (MBo/ft)1 • Spacing uplift demonstrated across Chord’s position • Consistently improves well productivity and predictability 1 Painted Woods 2 Wheelock • Improves capital productivity Cum. MBo/ft Cum. MBo/ft +72% +122% W
Slide 10: Improving Returns with Wider Spacing
Improving Returns with Wider Spacing Benefits of Wider Spacing Chord Well Spacing Conservative to Peers1 • Wider spacing results in similar DSU recovery with substantially less capital 10 10 9 • 10-year inventory life reflects conservative view on spacing Wells per DSU Avg. ~7 wells per DSU 7 • Lowe
Slide 11: Williston Basin – High Oil Cut and Strong Differentials
Williston Basin – High Oil Cut and Strong Differentials Williston Basin Leads with Highest Oil Cut1 Chord Leads Oil-Weighted Revenues by E&P2 91% 78% 77% Percent Oil Production 65% Oil Revenue (% sales) 62% 49% CHRD A B C D E F G H I J K L M N O P Q R Williston Midland DJ Delaware Eagle Ford Chord D
Slide 12: Williston Basin – Predictable and Consistent Delivery
Williston Basin – Predictable and Consistent Delivery Williston Basin Highlights Risk-Adjusted Well Productivity1 • Subsurface delivers reduced variability compared to other basins 2.9 12-mo Oil Cum. / Std. Dev. 2.6 • Risk-adjusted well productivity illustrates predictability of production 2.3 deliv
Slide 13: Continuous Improvement of ESG Performance
Continuous Improvement of ESG Performance Scope 1 Intensity Methane Reduction Spill Intensity Biodiversity Environmental 57% 70% 0.012 <1% Decrease in operated Decrease in operated Per gross annual Of Proved or Probable Scope 1 GHG emissions Scope 1 methane produced liquids, which reserves in or nea
Slide 14: Chord Energy = Premier Williston Operator
Chord Energy = Premier Williston Operator Top Tier Oil Assets in Operational Expertise Largest Producer in Oil- Williston Basin Improving Returns focused Basin • Williston size and scale with high quality • 3-mile leader in basin • Largest Williston producer by volumes and assets across ~1.3MM net a
Slide 15: Supplementary Information
Supplementary Information 15
Slide 16: Premier Leadership Team Aligned with Shareholders
Premier Leadership Team Aligned with Shareholders Chord Leadership Team • Strong strategic and cultural alignment • Talented team brings operating best practices • Management team with deep energy Danny Brown industry, M&A and operational backgrounds Susan Cunningham Ian Dundas Director, President &
Slide 17: Return of Capital
Return of Capital Aim for peer-leading return of capital 3Q24 Return of Capital ($MM, except per share) 1 — Below 0.5x leverage: 75%+ of Adjusted FCF — Below 1.0x leverage: 50%+ of Adjusted FCF $312 Adjusted Free Cash Flow2 — >1.0x leverage: Base dividend+ ($5.00/sh annual) x 75% Target 75%+ at Curr
Slide 18: 2024 Updated Outlook
2024 Updated Outlook Development Highlights 1 Guidance Highlights • Gross Operated TIL Estimate • Increasing FY24 oil volumes +0.6 MBopd (inclusive of 3Q24 A&D impacts) • 168 – 178 in FY24, ~76% WI • Decreasing FY24 CapEx -$10MM • ~40% 3-mile laterals in FY24 • Decreasing FY24 LOE -$0.13/Boe • 26 –
Slide 19: Non-Operated Marcellus Position
Non-Operated Marcellus Position Highlights Marcellus Production • Dry gas window in core of the Marcellus 180 160 155 • Strong operator with top-tier well productivity Deferred TILs and curtailed volumes impact 2024 140 Production (MMcfpd) • Large PDP base with low declines 117 114 116 120 • Deep in
Slide 20: Chord Financial and Operational Results
Chord Financial and Operational Results Pro Forma1 Pro Forma1 Financial Highlights ($MM) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Key Operating Statistics Q4 2023 Q1 2024 Q2 2024 Q3 2024 Oil Revenues $761 $993 $1,111 $1,074 Oil Production (MBopd) 106.2 145.3 154.5 158.8 NGL Revenues 46 43 33 30 NGL Productio
Slide 21: Chord Energy Hedges
Chord Energy Hedges1 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 FY25 FY26 Crude Oil Hedges Two-way Collars Volume (Bbl/d) 20,000 15,000 14,000 15,000 12,000 2,000 2,000 2,000 2,000 13,995 2,000 Floor ($/Bbl) $ 67.50 $ 64.33 $ 63.21 $ 64.00 $ 65.00 $ 65.00 $ 65.00 $ 65.00 $ 65.00 $ 64.11 $ 65.00 Ca