Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Merger or Acquisition (February 2024)
17 slides from Chord Energy's merger presentation, Feb 21, 2024
Slide 1: Strategic Combination with Enerplus
February 21, 2024 Strategic Combination with Enerplus 1
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 proposed transaction or otherwise, nor shall there be
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Forward-Looking Statements Certain statements in this document concerning the proposed transaction, including any statements regarding the expected timetable for completing the proposed transaction, the results, effects, benefits and synergie
Slide 4: Combination Creates a Premier Williston Basin Oil Operator
Combination Creates a Premier Williston Basin Oil Operator + Value Enhancing Scale Significant Synergies & Accretion on Key Metrics • $10B+ market cap Williston operator with a leading production • Expected to generate up to $150MM/year in cost savings from profile (~250 Mboe/d) supported by best pr
Slide 5: Transaction Overview
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$1.84 per share in cash, representing 90% stock / 10% cash consideration Transac
Slide 6: Enhanced Scale Delivering Williston Leading Production and Operations
Enhanced Scale Delivering Williston Leading Production and Operations Value Enhancing Scale Significant Synergies Financial Strength Shareholder Returns Pro Forma • Combined inventory supports ~10 years of development1 Market Cap ($B) $7.0 $3.4 $10.4 • Creates a leading Williston operator, combining
Slide 7: Chord Elevates Into Large-Cap Peer Group, with Highest Oil Weighting
Chord Elevates Into Large-Cap Peer Group, with Highest Oil Weighting Value Enhancing Scale Significant Synergies Financial Strength Shareholder Returns Market Capitalization New Large-Cap Peers1 Prior Peers ($B) $18.7 $13.7 $12.4 $11.5 $10.4 $7.0 $7.0 $6.4 $4.6 $4.5 $3.4 CTRA MRO OVV PR PF CHRD + ER
Slide 8: Combined Company = Single-Basin Focus, Top-Tier, High-Return Inventory
Combined Company = Single-Basin Focus, Top-Tier, High-Return Inventory Value Enhancing Scale Significant Synergies Financial Strength Shareholder Returns <$60 Breakeven Inventory | Number of Locations1 New Large-Cap Peers Prior Peers Enverus Data Pro Forma Chord Inventory Highlights 3,833 • Chord’s
Slide 9: Complementary Combination Results in Significant Synergies
Complementary Combination Results in Significant Synergies Value Enhancing Scale Significant Synergies Financial Strength Shareholder Returns Combination drives >$750MM (After-Tax PV-10) of estimated synergies, as a result of up to $150MM/year in expected cost savings After-Tax PV-10 > $750MM Initia
Slide 10: Combination Has Superior Profitability and Best-in-Class Balance Sheet
Combination Has Superior Profitability and Best-in-Class Balance Sheet Value Enhancing Scale Significant Synergies Financial Strength Shareholder Returns Superior Profitability Best-in-Class Balance Sheet • Premier, oil-weighted footprint drives superior EBITDA margins • Significant liquidity and mi
Slide 11: Chord Delivers for its Shareholders
Chord Delivers for its Shareholders Value Enhancing Scale Significant Synergies Financial Strength Shareholder Returns Combination Supports Chord’s Leading Return Framework Demonstrated History of Returning Capital to Shareholders Free Cash Flow (2024E)1 Total Shareholder Return Since January 2021 (
Slide 12: Transformational Value Proposition
Transformational Value Proposition Value Enhancing Scale Significant Synergies Financial Strength Shareholder Returns 2024E EBITDA Multiple 2024E Free Cash Flow Yield1 (x) (%) 5.0x 14% 12% 4.4x 11% 4.3x 4.1x 10% 3.8x 8% Pro Forma Chord represents a transformational value proposition that has signifi
Slide 13: Combination Creates a Premier Williston Basin Oil Operator
Combination Creates a Premier Williston Basin Oil Operator A Premier Williston Operator Enhances Position as Significant and Resilient with Top-Tier Assets Low-Cost Operator Free Cash Flow Generation Enhances size and scale with high quality assets across ~1.3MM net acres and low Expected to generat
Slide 14: Combination Creates a Premier Williston Basin Oil Operator
Combination Creates a Premier Williston Basin Oil Operator Value Enhancing Scale Significant Synergies & Accretion on Key Metrics Peer-Leading Financial Strength with Shareholder Returns Upside Potential 14
Slide 15: Appendix
Appendix
Slide 16: Premier Leadership Team Aligned with Shareholders
Premier Leadership Team Aligned with Shareholders Chord Leadership Team • Strong strategic and cultural alignment Danny Brown Susan Cunningham Ian Dundas • Talented team brings operating best Director, President & Chief Board Chair Director & Advisor to CEO practices Executive Officer • Former Whiti
Slide 17: Complementary Combination Results in Significant Synergies
Complementary Combination Results in Significant Synergies Expected to generate up to ~$150MM/year in cost savings, excluding additional improvements from pro forma cost of capital • Capitalize on each companies’ expertise to drive down drilling days by area • Development plan optimization and expan