Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Merger or Acquisition (June 2024)
19 slides from Chord Energy's merger presentation, Jun 6, 2024
Slide 1: Positive Rate of Change Continues
Exhibit 99.2 May 31, 2024 Positive Rate of Change Continues
Slide 2: Important Disclosures: Forward-Looking and Cautionary Statements
Important Disclosures Forward-Looking and Cautionary Statements Certain statements in this presentation concerning the business combination transaction (the “Arrangement”) between Chord Energy Corporation (“Chord”) and Enerplus Corporation (“Enerplus”), including any statements regarding the results
Slide 3: Creating a Premier Williston Basin Oil Operator
Creating a Premier Williston Basin Oil Operator + Top Tier Asset & Operations Significant Scale, Synergies & Accretion 1 • Chord + Enerplus >$11B market cap Williston operator and 1 • Chord ~$7.5B market cap Williston operator with a leading largest producer in Williston Basin: 279Mboe/d (254Mboe/d
Slide 4: Positive Rate of Change Continues with Enerplus Top-Tier Assets and Basin Expertise
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 5: Chord + Enerplus = Compelling Investment Opportunity
Chord + Enerplus = Compelling Investment Opportunity 1 Highlights 2025E EBITDA Multiple 4.8x 4.4x 4.2x 4.1x • Asset continues to outperform expectations 3.9x • Better performance with wider spacing • 3-mile laterals improving returns, upside with 4-mile laterals • Extensive analogs across basin impr
Slide 6: 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 • 0.3x pro forma estimated at 2Q24 1 • Target sub-1x in normalized price environment • Financial strength supports r
Slide 7: Chord's Standalone Return of Capital Program
Chord’s Standalone Return of Capital Program 1 2024 Capital Allocation 2023 Return of Capital (“RoC”) $2,000 Significant Cash Generation ~$1.8B 2024 EBITDA - $1.9B Returned Since $1,728 July 2022 $1,500 $(955) ~$646MM Returned in $1,000 2 FY23 $127 $773 $151 $905MM - $945MM ~$870MM 2024 FCF $500 $49
Slide 8: Longer Laterals Improving Returns
Cumulative Oil Longer Laterals Improving Returns 2 Longer Laterals Drive Better Economics Increasing 3-Mile TILs • ~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% rd • Estimating 80% productivity for 3 mile
Slide 9: 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 10: Chord Energy = Premier FCF Focused E&P to Premier Williston Operator
Chord Energy = Premier FCF Focused E&P Capital Returns Program to Premier Williston Operator Significant and Resilient Free Cash Flow Generation Deliver Significant Value with Top Tier Assets 1 1 Peer leading return of capital program through Enhances size and scale with high quality ~$870MM FCF and
Slide 11: Supplementary information
“Supplementary information 2 a
Slide 12: Chord + Enerplus Transaction Overview
Chord + Enerplus Transaction Overview 1 • Combined ~$12B enterprise value, inclusive of Enerplus’ net debt A Premier Williston Acreage Position • Each Enerplus common share exchanged for 0.10125 shares of Chord common stock and US$1.84 per share in cash, representing 90% stock / 10% cash considerati
Slide 13: 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 14: Complementary Combination Results in Significant Synergies
Complementary Combination Results in Significant Synergies Combination drives $200MM+/year in expected cost savings $50MM increase from initial target Initiates in late 2025, largely realized in 2026 Current $200MM+ $70MM+ Beginning in 2025 View +$50MM Beginning immediately and $80MM+ growing in 202
Slide 15: Compelling Valuation and Returns Profile
Compelling Valuation and Returns Profile 1 2 2024 Free Cash Flow Outlook 2024 Reinvestment Rate $1,400 16% 65% 14% 13% $1,200 60% 60% 58% 55% Peer 11% 12% 58% Average $1,000 10% 55% 9% XOP 8.7% $800 ($79 WTI) 8% 52% $600 50% 49% 6% $400 4% 45% $200 2% $- 0% 40% $70/Bbl $80/Bbl $90/Bbl A CHRD B C D 1
Slide 16: Return of Capital
Return of Capital 1 Aim for peer-leading return of capital 1Q24 Return of Capital ($MM, except per share) — Below 0.5x leverage: 75%+ of FCF — Below 1.0x leverage: 50%+ of FCF 2,3 $204 1Q24 Free Cash Flow — >1.0x leverage: Base dividend+ ($5.00/sh annual) x 75% Target 75%+ at Current Leverage Calcul
Slide 17: 2024 Updated Outlook
2024 Updated Outlook 1 1,2 Development Highlights 2024 Pro Forma Outlook 1Q24A 2Q24E 2H24E FY24E • 6 Rigs Oil volumes (MBopd) 145.3 152.2 154.5 151.7 • Gross Operated TIL Estimate NGL volumes (MBblpd) 44.7 46.3 46.1 45.8 • 163 – 193 in FY24, ~75% WI Natural gas volumes (MMcfpd) 393.6 409.0 413.0 407
Slide 18: Chord Financial and Operational Results
1 Chord Financial and Operational Results Financial Highlights ($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 $679 Oil Production (MBopd) 96.4 101.4 106.2 99.0 NGL Revenues 29 41 46 47 NGL Production (MBoepd) 36.0 36.0 38.1
Slide 19: Chord Energy Hedges
1 Chord Energy Hedges 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 FY24 FY25 FY26 Crude Oil - Collars Volume (Bbl/d) 16, 000 21,000 19, 000 16,000 5, 000 5, 000 3, 000 - 17,997 3, 236 - Floor ($/Bbl) $ 65.31 $ 66.90 $ 67.11 $ 65. 94 $ 60. 00 $ 60. 00 $ 60. 00 $ - $ 66. 39 $ 60. 00 $ - Cap ($/Bbl) $ 85.93