Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Q2 2024 Earnings Presentation
21 slides from Chord Energy's earnings presentation, Aug 8, 2024
Slide 1: Positive Rate of Change Continues
August 7, 2024 Positive Rate of Change Continues
Slide 2: Important Disclosures
Important Disclosures Forward-Looking and Cautionary Statements Certain statements in this press release, 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 r
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 Mix3 • ~$10B market cap1 • ~1.3MM net acres Production • Size & scale with high quality assets • ~10 years of low-breakeven oil inventory2 19% 20% 61%
Slide 4: Sustainable Free Cash Flow Generation & Strong Balance Sheet
Sustainable Free Cash Flow Generation & Strong Balance Sheet Highlights Strong Balance Sheet2,3 1.7x • Compelling FCF yield supported by low-breakeven inventory • Low reinvestment rate keeps volumes stable with high FCF Net Leverage 1.1x • Attractive valuation vs. peers and broader market • Low leve
Slide 5: Chord's Disciplined Allocation of Capital
Chord’s Disciplined Allocation of Capital 2024 Sources & Uses1 Cumulative Cash Returned to Shareholders2 Significant Cash Generation ~$4 Billion since 2021 ~$2.9B EBITDA Cumulative Cash ~$1.2B FCF ~$1.5B CapEx Return of Capital / Debt Investment in Business Repayment / Enhanced D&C: 80% of total Fle
Slide 6: Delivering on Efficiencies From Longer Laterals
Delivering on Efficiencies From Longer Laterals Highlights Differential 3-Mile Productivity from CHRD2 +30% • Supports shallower declines and lower corporate reinvestment rate vs. avg. • 40%+ more EUR / ~20%-25% increase in well costs Oil Bbls per 1K’ • Western acreage economics comparable to 2-mile
Slide 7: Improving Returns with Wider Spacing
Improving Returns with Wider Spacing Highlights 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 • Lowers long-term base
Slide 8: Wider Spacing Effective Across Basin
Wider Spacing Effective Across Basin Highlights Cumulative Uplift (MBo/ft)1 • Spacing uplift demonstrated across Chord’s position • Consistently improves well productivity and predictability 1 Painted Woods 2 Wheelock Cum. MBo/ft Cum. MBo/ft +72% +122% Wild Woods Williams County Wheelock Red Bank 2
Slide 9: Williston Basin - High Oil Cut and Strong Differentials
Williston Basin - High Oil Cut and Strong Differentials High Oil Cut1 Oil-Weighted Revenues by E&P2 91% 78% 77% Percent Oil Production 65% Oil Revenue (% sales) 62% 49% Williston Midland DJ Delaware Eagle Ford CHRD A B C D E F G H I J K L M N O P Q R Strong Realizations vs. Peers3 Clearbrook Differe
Slide 10: Williston Basin – Predictable and Consistent Delivery
Williston Basin – Predictable and Consistent Delivery 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 2.3 2.1 production delivery with strong results
Slide 11: Enerplus Combination to Further Advance Efficiencies
Enerplus Combination to Further Advance Efficiencies Better Drilling Times1,2 Completion Efficiencies2 Downtime Improvement2 -16% Days Spud to Rig Release 40% Barrels Pumped Per Day Downtime % of Volume -11% Pre-close Post-close Zipper Simul-Frac CHRD 1H23 CHRD 1H24 ERF 1H24 Key Synergies Key Synerg
Slide 12: Balance Sheet Supports Leading Financial Position
Balance Sheet Supports Leading Financial Position Credit Rating Low Leverage Strong Liquidity • S&P BB- • 0.3x leverage at 2Q24 • Borrowing base $3B with $1.5B of • Moody’s Ba2 • Target sub-1x in normalized price elected commitments • Positive outlooks issued in Feb ‘24 environment1 • >$1B of liquid
Slide 13: Committed to continuous improvement of ESG Performance
Committed to continuous improvement of ESG Performance1 Chord maintains sustainable energy practices that exemplify our commitment to energy security and availability Environmental Scope 1 Intensity Methane Reduction Spill Management Biodiversity 53% 47% 54% <1% Decrease in operated Decrease in oper
Slide 14: Chord Energy = Premier Williston Operator
Chord Energy = Premier Williston Operator Top Tier Oil Assets in Operational Expertise Largest Producer in Oil- Williston Basin Improving Returns focused Basin • Williston size and scale with high quality • 3-mile leader in basin • Largest Williston producer by volumes and assets across 1.3MM net ac
Slide 15: Supplementary Information
Supplementary Information 15
Slide 16: Premier Leadership Team Aligned with Shareholders
Premier Leadership Team Aligned with Shareholders Chord Leadership Team • Strong strategic and cultural alignment • Talented team brings operating best practices • Management team with deep energy industry, Danny Brown M&A and operational backgrounds Susan Cunningham Ian Dundas Director, President &
Slide 17: Return of Capital
Return of Capital Aim for peer-leading return of capital 2Q24 Return of Capital ($MM, except per share) 1 — Below 0.5x leverage: 75%+ of FCF — Below 1.0x leverage: 50%+ of FCF $263 2Q24 Free Cash Flow2,3 — >1.0x leverage: Base dividend+ ($5.00/sh annual) x 75% Target 75%+ at Current Leverage Calcula
Slide 18: 2024 Updated Outlook
2024 Updated Outlook Development Highlights 1 Guidance Ranges 1 • 5 to 6 rigs 3Q24 FY24 • Gross Operated TIL Estimate Oil volumes (MBopd) 154.5 - 159.5 150.9 - 153.5 • 163 – 193 in FY24, ~75% WI NGL volumes (MBblpd) 47.3 - 48.8 46.4 - 47.1 • 30 – 40 in 3Q24 Natural gas volumes (MMcfpd) 418.5 - 431.5
Slide 19: Non-Operated Marcellus Position
Non-Operated Marcellus Position Highlights Marcellus Production • Dry gas window in core of the Marcellus 180 169 Deferred TILs and 153 158 155 curtailed volumes • Strong operator with top-tier well productivity 160 impact 2024 Production (MMcfpd) 140 • Large PDP base with low declines 117 120 • Dee
Slide 20: Chord Financial and Operational Results
Chord Financial and Operational Results Pro Forma1 Pro Forma1 Financial Highlights ($MM) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Key Operating Statistics Q3 2023 Q4 2023 Q1 2024 Q2 2024 Oil Revenues $776 $761 $993 $1,111 Oil Production (MBopd) 101.4 106.2 145.3 154.5 NGL Revenues 41 46 43 33 NGL Production
Slide 21: Chord Energy Hedges
Chord Energy Hedges1 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 2H24 FY25 FY26 Crude Oil Hedges Two-way Collars Volume (Bbl/d) 20,000 20,000 13,000 12,000 13,000 10,000 20,000 11,995 - Floor ($/Bbl) $ 67.25 $ 67.50 $ 64.23 $ 62.92 $ 63.85 $ 65.00 $ 67.38 $ 63.96 $ - Cap ($/Bbl) $ 83.15 $ 81.68 $ 79.55 $ 79.76 $