Chord Energy Reports Fourth Quarter and Full-Year 2023 Financial and Operating Results, Declares Base and Variable Dividends and Issues 2024 Outlook

About this update from Chord Energy Corporation

HOUSTON , Feb. 21, 2024 /PRNewswire/ -- Chord Energy Corporation (NASDAQ: CHRD) ("Chord", " Chord Energy " or the "Company") today reported financial and operating results for the fourth quarter and full-year 2023 and announced its 2024 outlook. Operational and Financial Highlights: Oil volumes of 106.2 MBopd and total volumes of 183.8 MBoepd in 4Q23 both exceeded the high-end of guidance. FY23 oil volumes were 99.8 MBopd with total volumes of 173.4 MBoepd; E&P and other CapEx of $208 .8MM in 4Q23 (including $3 .5MM of reimbursed capital for divested non-operated assets) and $922 .3MM in FY23 (including $14 .5MM of reimbursed capital for divested non-operated assets) exceeded the high-end of guidance; 2023 volumes and capital reflect activity acceleration and higher working interest in operated wells, along with mild 4Q23 weather, lower downtime and strong well performance; 12 gross (9 net) operated turn-in-line ("TIL") wells in 4Q23 (~80% three-mile). Reached total depth on all three-mile cleanouts in 4Q23; Net cash provided by operating activities was $543 .3MM and net income was $301 .6MM in 4Q23; and Adjusted EBITDA(1) was $480 .9MM and Adjusted Free Cash Flow(1) was $247 .4MM. Shareholder Return Highlights: 4Q23 return of capital was set at $188MM, or 75% of Adjusted Free Cash Flow (excluding the $3 .5MM of reimbursed capital); Share repurchases totaled $82 .8MM (weighted average price of $162.20 per share), including $53 .0MM attributable to 4Q23 return of capital; Declared a base-plus-variable cash dividend of $3.25 per share of common stock. See "Return of Capital" below for additional information; and Return of capital paid in FY23 was approximately $646MM. 2024 Outlook Highlights: E&P and other CapEx between $905MM – $945MM (~80% drilling and completions); TIL 103 – 113 gross operated wells; Holding oil volumes flat between 97 – 101 MBopd; and Adjusted Free Cash Flow(1) of approximately $875MM at $79 /Bbl WTI and $2.50 /MMBtu Henry Hub using midpoint guidance. (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under United States generally accepted accounting principles ("GAAP"). "Chord closed 2023 on sound footing by executing on its program and delivering strong volume growth in the second half of the year," said Danny Brown , Chord Energy's President and Chief Executive Officer. "2023 was a pivotal year for the Company as three-mile wells were approximately 50% of the mix, and execution and well performance continue to meet or exceed expectations. Chord's deep inventory generates compelling economics and allows for low reinvestment rates, robust free cash flow and attractive return of capital. In 2023, Chord returned $646MM to shareholders through a mix of base and variable dividends supplemented by opportunistic share repurchases." Danny Brown continued, "As we look to this year, given the progress made and success achieved on extended laterals in 2023, three-mile wells will approximate two-thirds of the 2024 program. The Chord team will remain focused on driving continuous improvement and better efficiency throughout the organization. Our low-cost inventory, capital efficient development program and strong balance sheet continue to support sustainable free cash flow generation and high shareholder returns. At Chord, we remain excited about the oil and gas industry, the benefits we bring to the world, and are focused on sustainable value creation through responsible operations." 4Q23 Operational and Financial Update: The following table presents select 4Q23 operational and financial data compared to guidance released in November 2023 : Metric 4Q23 Actual 4Q23 Guidance Oil volumes (MBopd) 106.2 102.0 – 105.0 NGL volumes (MBblpd) 38.1 35.5 – 36.5 Natural gas volumes (MMcfpd) 236.5 224.0 – 230.0 Total volumes (MBoepd) 183.8 174.8 – 179.8 Oil premium (discount) to WTI ($/Bbl) $(0.52) $(0.85) – $1.15 NGL realization (% of WTI) 17 % 13% – 23% Residue gas realization (% of Henry Hub ) 37 % 50% – 60% LOE ($/Boe) $10.05 $10.00 – $10.80 Cash GPT ($/Boe)(1) $3.04 $2.75 – $3.35 Cash G&A ($MM)(1) $13.1 $14.9 – $17.9 Production Taxes (% of oil, NGL and gas sales) 8.3 % 8.4% – 8.8% E&P & Other CapEx ($MM)(2) $208.8 $147 – $177 Cash Interest ($MM)(1) $7.5 $7.0 – $8.0 Cash Tax (% of Adjusted EBITDA)(3) 3.6 % 0% – 10% (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP. (2) Includes $3 .5MM of reimbursed capital. (3) Chord paid $17 .2MM in cash taxes in 4Q23. Guidance based on $70 /Bbl – $90 /Bbl WTI. During the three months ended December 31, 2023 , net cash provided by operating activities was $543 .3MM and net income was $301 .6MM ( $6.93 /diluted share). Adjusted EBITDA was $480 .9MM, Adjusted Free Cash Flow was $247 .4MM and Adjusted Net Income was $228 .0MM ( $5.25 /diluted share). Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Net Income are non-GAAP financial measures. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP. Estimated Net Proved Reserves: During 2023, the Company added 78.6 million barrels of oil equivalent ("MMBoe") of net proved reserves as a result of successful drilling in the Williston Basin and 18.8 MMBoe from the purchase of reserves in place associated with the XTO bolt-on acquisition in June 2023 . Chord's estimated net proved reserves at December 31, 2023 were 636.2 MMBoe and consisted of 368.4 million barrels ("MMBbl") of crude oil, 138.2 MMBbl of NGLs and 777.9 billion cubic feet ("Bcf") of natural gas. The Company's estimated net proved reserves and PV-10 do not include probable or possible reserves and were determined using the preceding 12-month unweighted arithmetic average of the first-day-of-the-month index prices for crude oil and natural gas, which were held constant throughout the life of the properties. For the year ended December 31, 2023 , the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months were $78.22 per Bbl for crude oil and $2.64 per MMBtu for natural gas. These prices were adjusted for quality, energy content, transportation fees and market differentials. The information in the following table does not give any effect to or reflect our commodity derivatives. Future operating costs, production taxes, plugging and abandonment costs and capital costs were based on current costs as of year end. The Company's estimated net proved reserves and related PV-10 at December 31, 2023 were based on reports independently prepared by Netherland, Sewell & Associates, Inc. , the Company's independent reserve engineers. The table below summarizes the Company's estimated net proved reserves and related PV-10 at December 31, 2023 : Crude Oil (MMBbl) NGLs (MMBbl) Natural Gas (Bcf) Net EstimatedReserves (MMBoe) PV-10(1) (in millions) Developed 241.4 105.7 640.2 453.8 $ 6,572.4 Undeveloped 127.0 32.5 137.8 182.4 1,956.1 Total Proved 368.4 138.2 777.9 636.2 $ 8,528.5 (1) PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows. We believe PV-10 is a useful measure for investors when evaluating the relative monetary significance of our oil and gas properties and as a basis for comparison of the relative size and value of our proved reserves to our peers without regard to income taxes, which can vary between individual companies for various and unique factors. The PV-10 does not purport to present the fair value of our proved oil, NGL and natural gas reserves. 2024 Outlook : Chord constructed its 2024 program to focus on capital efficiency and maximizing cash flow generation with a low reinvestment rate. The 2024 reinvestment rate is expected to be approximately 50%. Chord expects to generate approximately $1.9B of Adjusted EBITDA and $875MM of Adjusted Free Cash Flow ( $79 /Bbl WTI and $2.50 /MMBtu Henry Hub) in 2024. Highlights of the 2024 plan include: E&P and other CapEx is expected to total approximately $905MM – $945MM. Approximately 80% of E&P and other CapEx is expected to be invested in drilling and completions; Chord plans to TIL 103 – 113 gross operated wells (approximately two-thirds 3-mile laterals) in 2024 with an average working interest of approximately 75%. Chord plans to TIL 26 – 30 gross operated wells in 1Q24; and 1Q24 volumes were impacted by downtime and deferred activity in January resulting from winter storms in North Dakota . Inclusive of downtime impacts from the January winter storms, 1Q24 oil volumes are expected to be 95 MBopd – 98 MBopd. FY24 oil volumes are expected to be 97 - 101 MBopd, with volumes highest in the second-half of 2024. Midpoint FY24 oil volumes of 99 MBopd are unchanged from the soft guidance announced during our 3Q23 earnings call, despite January winter storms. The following table presents select operational and financial guidance for 1Q24 and FY24: Metric 1Q24 Guidance FY24 Guidance Oil volumes (MBopd) 95.0 – 98.0 97.0 – 101.0 NGL volumes (MBblpd) 33.0 – 34.0 34.0 – 35.0 Natural gas volumes (MMcfpd) 217.0 – 223.0 217.5 – 223.5 Total volumes (MBoepd) 164.2 – 169.2 167.3 – 173.3 Oil premium (discount) to WTI ($/Bbl) $(2.30) – $(1.30) $(1.75) – $0.00 NGL realization (% of WTI) 15% – 25% 15% – 25% Residue gas realization (% of Henry Hub ) 55% – 65% 45% – 55% LOE ($/Boe) $10.70 – $11.50 $10.60 – $11.40 Cash GPT ($/Boe)(1) $2.80 – $3.40 $2.30 – $2.90 Cash G&A ($MM)(1) $16.5 – $19.5 $63.0 – $73.0 Production Taxes (% of oil, NGL and gas sales) 8.4% – 8.8% 8.4% – 8.8% E&P & Other CapEx ($MM) $230 – $260 $905 – $945 Cash Interest ($MM)(1) $7.0 – $8.0 $28.0 – $32.0 Cash Tax (% of Adjusted EBITDA)(2) 0% – 5% 3% – 9% (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP. (2) Based on $70 /Bbl – $90 /Bbl WTI. Select Operational and Financial Data: The following table presents select operational and financial data for the periods presented: 4Q23 3Q23 FY23 Production data: Crude oil (MBopd) 106.2 101.4 99.8 NGLs (MBblpd) 38.1 36.0 35.7 Natural gas (MMcfpd) 236.5 231.7 227.3 Total production (MBoepd) 183.8 176.0 173.4 Percent crude oil 57.8 % 57.6 % 57.6 % Average sales prices: Crude oil, without realized derivatives ($/Bbl) $ 77.88 $ 83.22 $ 77.85 Differential to NYMEX WTI ($/Bbl) (0.52) 0.69 0.07 Crude oil, with realized derivatives ($/Bbl) 72.72 76.45 70.92 Crude oil realized derivatives ($MM) (50.5) (63.1) (252.7) NGL, without realized derivatives ($/Bbl) 13.09 12.38 13.62 NGL, with realized derivatives ($/Bbl) 13.09 12.38 13.84 NGL realized derivatives ($MM) — — 2.9 Natural gas, without realized derivatives ($/Mcf) 1.06 1.11 1.43 Natural gas, with realized derivatives ($/Mcf) 1.06 1.11 1.35 Natural gas realized derivatives ($MM) — — (6.8) Selected financial data ($MM): Revenues: Crude oil revenues $ 761.2 $ 776.0 $ 2,836.0 NGL revenues 45.9 41.0 177.7 Natural gas revenues 23.0 23.6 118.7 Total oil, NGL and natural gas revenues $ 830.1 $ 840.6 $ 3,132.4 Cash flows: Net cash provided by operating activities: $ 543.3 $ 399.5 $ 1,819.9 Non-GAAP financial measures(1): Adjusted EBITDA $ 480.9 $ 469.1 $ 1,728.0 Adjusted Free Cash Flow(2) 247.4 207.4 758.7 Adjusted net income 228.0 220.2 801.1 Select operating expenses: Lease operating expenses ("LOE") $ 169.9 $ 177.1 $ 658.9 Gathering, processing and transportation expenses ("GPT") 47.5 52.3 180.2 Production taxes 68.5 72.5 260.0 Depreciation, depletion and amortization 167.4 160.3 598.6 Total select operating expenses $ 453.3 $ 462.2 $ 1,697.7 Earnings per share: Basic earnings per share $ 7.27 $ 5.01 $ 24.59 Diluted earnings per share 6.93 4.77 23.51 Adjusted diluted earnings per share (Non-GAAP)(1) 5.25 5.04 18.46 (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP. (2) 4Q23 and FY23 Adjusted Free Cash Flow were reduced for by $3 .5MM and $14 .5MM, respectively, for reimbursed capital. Capital Expenditures: The following table presents the Company's total capital expenditures ("CapEx") by category for the period presented: 1Q23 2Q23 3Q23 4Q23(1) FY23(1) CapEx ($MM): E&P $ 201.8 $ 256.6 $ 254.0 $ 208.4 $ 920.8 Other 0.5 0.4 0.1 0.5 1.5 Total E&P and other CapEx(1) 202.3 257.0 254.1 208.9 922.3 Capitalized interest 1.4 1.3 0.9 0.5 4.1 Acquisitions — 361.6 — — 361.6 Total CapEx $ 203.7 $ 619.9 $ 255.0 $ 209.4 $ 1,288.0 (1) 4Q23 and FY23 includes $3 .5MM and $14 .5MM of reimbursed capital, respectively. Return of Capital : Chord declared a base-plus-variable cash dividend of $3.25 per share of common stock, including a base dividend of $1.25 per share of common stock and a variable dividend of $2.00 per share of common stock. The dividends will be payable on March 19, 2024 to shareholders of record as of March 5, 2024 . Details regarding the calculation of the variable dividend can be found in the Company's most recent investor presentation located on its website at https://ir.chordenergy.com/presentations . In addition, during 4Q23 the Company repurchased 510,471 shares of common stock at a weighted average price of $162.20 per share totaling $82 .8MM. These share repurchases included $53 .0MM attributable to 4Q23 return of capital and $29 .8MM attributable to cash proceeds from warrants exercised. Hedging Update: The following table presents the Company's hedge portfolio as of February 20, 2024 : 1Q24 2Q24 3Q24 4Q24 FY24 FY25 FY26 NYMEX WTI Swaps Volume (Bopd) 1,000 1,000 1,000 1,000 1,000 — — Strike ($/Bbl) $ 69.27 $ 69.27 $ 69.27 $ 69.27 $ 69.27 $ — $ — Two-way collars Volume (Bopd) 16,000 19,000 13,000 12,000 14,986 3,236 — Floor ($/Bbl) $ 65.31 $ 66.05 $ 63.46 $ 62.92 $ 64.66 $ 60.00 $ — Ceiling ($/Bbl) $ 85.93 $ 85.25 $ 81.78 $ 79.90 $ 83.60 $ 79.05 $ — Three-way collars Volume (Bopd) — — 4,000 4,000 2,011 6,496 740 Sub-floor ($/Bbl) $ — $ — $ 55.00 $ 55.00 $ 55.00 $ 52.69 $ 50.00 Floor ($/Bbl) $ — $ — $ 71.25 $ 71.25 $ 71.25 $ 67.69 $ 65.00 Ceiling ($/Bbl) $ — $ — $ 92.14 $ 92.14 $ 92.14 $ 82.14 $ 83.70 NYMEX Henry Hub Swaps Volume (MMBtupd) — — — — — 1,785 — Strike ($/MMBtu) $ — $ — $ — $ — $ — $ 3.93 $ — Balance Sheet and Liquidity: The following table presents key balance sheet data and liquidity metrics as of December 31, 2023 (in millions): December 31, 2023 Revolving credit facility(1) $ 1,000.0 Revolver borrowings $ — Senior notes 400.0 Total debt $ 400.0 Cash and cash equivalents $ 318.0 Letters of credit 8.9 Liquidity $ 1,309.1 (1) $2.5B borrowing base and $1.0B of elected commitments. ESG Highlights: Strong gas capture in FY23; Chord has endorsed the World Bank Zero Routine Flaring by 2030 initiative; and Chord released its 2022 Sustainability Report in September 2023 , which highlights Chord's commitment to environmental stewardship, social responsibility and corporate governance. Chord remains committed to delivering affordable and reliable energy in a sustainable and responsible manner. The report can be accessed at www.chordenergy.com/sustainability/ Contact: Chord Energy Corporation Danny Brown , President and Chief Executive Officer Michael Lou , Executive Vice President and Chief Financial Officer Bob Bakanauskas , Managing Director, Investor Relations(281) 404-9600 [email protected] Conference Call Information Chord's fourth quarter 2023 earnings conference call originally scheduled for February 22, 2024 has been cancelled and replaced with a conference call today, February 21, 2024 at 5:00 p.m. Central. Conference call information for the February 21, 2024 event is provided below. Investors, analysts and other interested parties are invited to listen to the webcast: Date: Wednesday, February 21, 2024 Time: 5:00 p.m. Central Live Webcast: https://app.webinar.net/wELeOnm8d1Y To join the conference call by phone without operator assistance (including sell-side analysts wishing to ask a question), you may register and enter your phone number at https://emportal.ink/42KxiYW to receive an instant automated call back and be immediately placed into the call. You may also use the following dial-in information to join the conference call by phone with operator assistance: Dial-in: 888-664-6383 Intl. Dial-in: 1-617-892-4906 Conference ID: 51301393 A recording of the conference call will be available until Thursday, February 28, 2024 by dialing: Replay dial-in: 1-888-390-0541 Intl. Dial-in: 617-849-9026 Replay access: 301393 # The call will also be available for replay for approximately 30 days at https://www.chordenergy.com and https://www.enerplus.com/ Forward-Looking 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 regarding the benefits and synergies of the Whiting merger, future opportunities for Chord, future financial performance and condition, guidance and statements regarding Chord's expectations, beliefs, plans, financial condition, objectives, assumptions or future events or performance are forward-looking statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "probable," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "would," "potential," "may," "might," "anticipate," "likely," "plan," "positioned," "strategy" and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. Specific forward-looking statements include statements regarding Chord's plans and expectations with respect to the return of capital plan, production levels and reinvestment rates, anticipated financial and operating results and other guidance and the effects, benefits and synergies of the Whiting merger. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements are based on certain assumptions made by Chord based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chord, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, the ultimate results of integrating the operations of Chord, the effects of the business combination on Chord, including Chord's future financial condition, results of operations, strategy and plans, the ability of Chord to realize the anticipated benefits or synergies of the merger in the timeframe expected or at all, changes in crude oil, NGL and natural gas prices, war between Russia and Ukraine and the potential for escalation of hostilities between Israel and Hamas and surrounding countries in the Middle East and their effect on commodity prices, inflation rates and the impact of associated monetary policy responses, including increased interest rates, developments in the global economy, the impact of pandemics such as COVID-19, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as Chord's ability to access them, the proximity to and capacity of transportation facilities, the availability of midstream service providers, uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Chord's business and other important factors that could cause actual results to differ materially from those projected as described in Chord's reports filed with the U.S. Securities and Exchange Commission (the " SEC "). Any forward-looking statement speaks only as of the date on which such statement is made and Chord undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. Additional information concerning other risk factors is also contained in Chord's most recently filed Annual Report on Form 10-K for the year ended December 31, 2022 , subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other SEC filings. About Chord Energy Chord Energy Corporation is an independent exploration and production company with quality and sustainable long-lived assets in the Williston Basin . The Company is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely and responsibly to develop its unconventional onshore oil-rich resources in the continental United States . For more information, please visit the Company's website at www.chordenergy.com . Comparability of Financial Statements The results reported for the year ended December 31, 2023 reflect the consolidated results of Chord, while the results reported for the year ended December 31, 2022 reflect the consolidated results of legacy Oasis for the period from January 1 to June 30, 2022 and the consolidated results of Chord from July 1 to December 31, 2022 , unless otherwise noted. Chord Energy Corporation Consolidated Balance Sheets (Unaudited) (In thousands, except share data) December 31, 2023 December 31, 2022 ASSETS Current assets Cash and cash equivalents $ 317,998 $ 593,151 Accounts receivable, net 943,114 781,738 Inventory 72,565 54,411 Prepaid expenses 42,450 17,624 Derivative instruments 37,369 23,735 Other current assets 11,055 11,853 Total current assets 1,424,551 1,482,512 Property, plant and equipment Oil and gas properties (successful efforts method) 6,320,243 5,120,121 Other property and equipment 49,051 72,973 Less: accumulated depreciation, depletion and amortization (1,054,616) (481,751) Total property, plant and equipment, net 5,314,678 4,711,343 Derivative instruments 22,526 37,965 Investment in unconsolidated affiliate 100,172 130,575 Long-term inventory 22,936 22,009 Operating right-of-use assets 21,343 23,875 Deferred tax assets — 200,226 Other assets 19,944 22,576 Total assets $ 6,926,150 $ 6,631,081 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 34,453 $ 29,056 Revenues and production taxes payable 604,704 607,964 Accrued liabilities 493,381 362,454 Accrued interest payable 2,157 3,172 Derivative instruments 14,209 341,541 Advances from joint interest partners 2,381 3,736 Current operating lease liabilities 13,258 9,941 Other current liabilities 916 3,469 Total current liabilities 1,165,459 1,361,333 Long-term debt 395,902 394,209 Deferred tax liabilities 95,322 — Asset retirement obligations 155,040 146,029 Derivative instruments 717 2,829 Operating lease liabilities 18,667 13,266 Other liabilities 18,419 33,617 Total liabilities 1,849,526 1,951,283 Commitments and contingencies Stockholders' equity Common stock, $0.01 par value: 120,000,000 shares authorized, 45,032,537 shares issued and 41,249,658 shares outstanding at December 31, 2023 ; and 120,000,000 shares authorized, 43,726,181 shares issued and 41,477,093 shares outstanding at December 31, 2022 456 438 Treasury stock, at cost: 3,782,879 shares at December 31, 2023 and 2,249,088 shares at December 31, 2022 (493,289) (251,950) Additional paid-in capital 3,608,819 3,485,819 Retained earnings 1,960,638 1,445,491 Total stockholders' equity 5,076,624 4,679,798 Total liabilities and stockholders' equity $ 6,926,150 $ 6,631,081 Chord Energy Corporation Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended December 31 , Year Ended December 31 , 2023 2022 2023 2022 Revenues Oil, NGL and gas revenues $ 830,160 $ 888,081 $ 3,132,411 $ 2,976,296 Purchased oil and gas sales 134,525 127,522 764,230 670,174 Other services revenues — — — 324 Total revenues 964,685 1,015,603 3,896,641 3,646,794 Operating expenses Lease operating expenses 169,861 155,631 658,938 443,560 Gathering, processing and transportation expenses 47,513 41,885 180,219 141,644 Purchased oil and gas expenses 133,892 125,625 761,325 671,935 Production taxes 68,512 70,708 260,002 229,571 Depreciation, depletion and amortization 167,432 141,803 598,562 369,659 General and administrative expenses 25,545 58,084 126,319 209,299 Exploration and impairment 2,073 506 35,330 2,204 Total operating expenses 614,828 594,242 2,620,695 2,067,872 Gain (loss) on sale of assets, net (6,502) 2,272 (2,764) 4,867 Operating income 343,355 423,633 1,273,182 1,583,789 Other income (expense) Net gain (loss) on derivative instruments 51,935 (79,361) 63,182 (208,128) Net gain (loss) from investment in unconsolidated affiliate (91) (4,612) 21,330 34,366 Interest expense, net of capitalized interest (6,344) (6,539) (28,630) (29,349) Other income, net 827 915 9,964 2,901 Total other income (expense), net 46,327 (89,597) 65,846 (200,210) Income from continuing operations before income taxes 389,682 334,036 1,339,028 1,383,579 Income tax (expense) benefit (88,049) 43,532 (315,249) 46,884 Net income from continuing operations 301,633 377,568 1,023,779 1,430,463 Income from discontinued operations attributable to Chord, net of income tax — — — 425,696 Net income attributable to Chord $ 301,633 $ 377,568 $ 1,023,779 $ 1,856,159 Earnings attributable to Chord per share: Basic from continuing operations $ 7.27 $ 9.08 $ 24.59 $ 46.90 Basic from discontinued operations — — — 13.96 Basic total $ 7.27 $ 9.08 $ 24.59 $ 60.86 Diluted from continuing operations $ 6.93 $ 8.64 $ 23.51 $ 44.35 Diluted from discontinued operations — — — 13.20 Diluted total $ 6.93 $ 8.64 $ 23.51 $ 57.55 Weighted average shares outstanding: Basic 41,324 41,553 41,490 30,497 Diluted 43,378 43,667 43,398 32,251 Chord Energy Corporation Consolidated Statements of Cash Flows (Unaudited) (In thousands) Year Ended December 31 , 2023 2022 Cash flows from operating activities: Net income including non-controlling interests $ 1,023,779 $ 1,858,470 Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities: Depreciation, depletion and amortization 598,562 369,659 (Gain) loss on sale of assets 2,764 (523,767) Impairment 28,963 (344) Deferred income taxes 295,548 28,341 Net gain from investment in unconsolidated affiliate (21,330) (34,366) Net (gain) loss on derivative instruments (63,182) 208,128 Equity-based compensation expenses 46,108 61,269 Deferred financing costs amortization and other 505 3,194 Working capital and other changes: Change in accounts receivable, net (147,870) 84,041 Change in inventory (12,659) 8,756 Change in prepaid expenses (1,199) 3,423 Change in accounts payable, interest payable and accrued liabilities 78,267 (131,687) Change in other assets and liabilities, net (8,405) (11,091) Net cash provided by operating activities 1,819,851 1,924,026 Cash flows from investing activities: Capital expenditures (905,673) (531,327) Acquisitions, net of cash acquired (361,609) (148,144) Proceeds from divestitures, net of cash divested 54,445 169,198 Costs related to divestitures — (11,368) Derivative settlements (268,887) (633,025) Proceeds from sale of investment in unconsolidated affiliate 40,612 428,231 Distributions from investment in unconsolidated affiliate 10,806 43,873 Net cash used in investing activities (1,430,306) (682,562) Cash flows from financing activities: Proceeds from revolving credit facilities 260,000 1,035,000 Principal payments on revolving credit facilities (260,000) (1,020,000) Cash paid to settle Whiting debt — (2,154) Deferred financing costs — (5,997) Purchases of treasury stock (239,339) (151,950) Tax withholding on vesting of equity-based awards (14,604) (41,752) Dividends paid (500,304) (654,728) Payments on finance lease liabilities (1,702) (1,299) Proceeds from warrants exercised 91,251 19,784 Net cash used in financing activities (664,698) (823,096) Increase (decrease) in cash and cash equivalents (275,153) 418,368 Cash and cash equivalents: Beginning of period 593,151 174,783 End of period $ 317,998 $ 593,151 Supplemental cash flow information: Cash paid for interest, net of capitalized interest $ 26,371 $ 24,266 Cash paid for income taxes 17,195 10,000 Supplemental non-cash transactions: Change in accrued capital expenditures $ 45,513 $ (21,668) Change in asset retirement obligations 1,238 852 Non-cash consideration exchanged in Merger — 2,585,211 Investment in unconsolidated affiliate — 568,312 Dividends payable 37,553 30,630 Non-GAAP Financial Measures The following are non-GAAP financial measures not prepared in accordance with GAAP that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company believes that the foregoing are useful supplemental measures that provide an indication of the results generated by the Company's principal business activities. However, these measures are not recognized by GAAP and do not have a standardized meaning prescribed by GAAP. Therefore, these measures may not be comparable to similar measures provided by other issuers. From time to time, the Company provides forward-looking forecasts of these measures; however, the Company is unable to provide a quantitative reconciliation of the forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measures. The reconciling items in future periods could be significant. To see how the Company reconciles its historical presentations of these non-GAAP financial measures to the most directly comparable GAAP measures, please visit the Investors—Documents & Disclosures—Non-GAAP Reconciliation page on the Company's website at https://ir.chordenergy.com/non-gaap . Cash GPT The Company defines Cash GPT as total GPT expenses less non-cash valuation charges on pipeline imbalances and non-cash mark-to-market adjustments on transportation contracts accounted for as derivative instruments. Cash GPT is not a measure of GPT expenses as determined by GAAP. Management believes that the presentation of Cash GPT provides useful additional information to investors and analysts to assess the cash costs incurred to market and transport the Company's commodities from the wellhead to delivery points for sale without regard to the change in value of its pipeline imbalances, which vary monthly based on commodity prices, and without regard to the non-cash mark-to-market adjustments on transportation contracts classified as derivative instruments. The following table presents a reconciliation of the GAAP financial measure of GPT expenses to the non-GAAP financial measure of Cash GPT for the periods presented: Three Months Ended December 31 , Year Ended December 31 , 2023 2022 2023 2022 (In thousands) GPT $ 47,513 $ 41,885 $ 180,219 $ 141,644 Pipeline imbalances 135 (1,133) (7,768) (4,570) Gain on derivative transportation contracts 3,723 393 20,570 7,331 Cash GPT $ 51,371 $ 41,145 $ 193,021 $ 144,405 Cash G&A The Company defines Cash G&A as total G&A expenses less G&A expenses directly attributable to the merger of equals with Whiting, non-cash equity-based compensation expenses, G&A expenses attributable to shared service allocations and other non-cash charges. Cash G&A is not a measure of G&A expenses as determined by GAAP. Management believes that the presentation of Cash G&A provides useful additional information to investors and analysts to assess the Company's operating costs in comparison to peers without regard to the aforementioned charges, which can vary substantially from company to company. The following table presents a reconciliation of the GAAP financial measure of G&A expenses to the non-GAAP financial measure of Cash G&A for the periods presented: Three Months Ended December 31 , Year Ended December 31 , 2023 2022 2023 2022 (In thousands) General and administrative expenses $ 25,545 $ 58,084 $ 126,319 $ 209,299 Merger costs(1) — (13,360) (9,701) (97,739) Equity-based compensation expenses (8,849) (20,918) (46,108) (43,378) G&A expenses attributable to shared services — — — (1,624) Other non-cash adjustments (3,640) (1,446) (7,804) (3,330) Cash G&A $ 13,056 $ 22,360 $ 62,706 $ 63,228 (1) Includes costs directly attributable to the merger of equals with Whiting for the year ended December 31, 2023 and the year ended December 31, 2022 . Cash Interest The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on the Company's debt to finance its operating activities and the Company's ability to maintain compliance with its debt covenants. The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented: Three Months Ended December 31 , Year Ended December 31 , 2023 2022 2023 2022 (In thousands) Interest expense $ 6,344 $ 6,539 $ 28,630 $ 29,349 Capitalized interest 531 1,844 4,133 4,647 Amortization of deferred financing costs 610 (1,191) (3,023) (4,008) Cash Interest $ 7,485 $ 7,192 $ 29,740 $ 29,988 Adjusted EBITDA and Adjusted Free Cash Flow The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion and amortization ("DD&A"), merger costs, exploration expenses and impairment expenses and other similar non-cash or non-recurring charges. The Company defines Adjusted EBITDA from continuing operations as Adjusted EBITDA less Adjusted EBITDA from discontinued operations. The Company defines Adjusted Free Cash Flow as Adjusted EBITDA from continuing operations less Cash Interest and E&P and other capital expenditures (excluding capitalized interest and acquisition capital). Adjusted EBITDA and Adjusted Free Cash Flow are not measures of net income or cash flows from operating activities as determined by GAAP. Management believes that the presentation of Adjusted EBITDA and Adjusted Free Cash Flow provides useful additional information to investors and analysts for assessing the Company's results of operations, financial performance, ability to generate cash from its business operations without regard to its financing methods or capital structure and the Company's ability to maintain compliance with its debt covenants. The following table presents reconciliations of the GAAP financial measures of net income including non-controlling interests and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and Adjusted Free Cash Flow for the periods presented: Three Months Ended December 31 , Year Ended December 31 , 2023 2022 2023 2022 (In thousands) Net income including non-controlling interests $ 301,633 $ 377,568 $ 1,023,779 $ 1,858,470 Interest expense, net of capitalized interest 6,344 6,539 28,630 33,034 Income tax expense (benefit) 88,049 (43,532) 315,249 54,196 Depreciation, depletion and amortization 167,432 141,803 598,562 369,659 Merger costs(1) — 13,360 9,701 97,739 Exploration and impairment expenses 2,073 506 35,330 2,204 (Gain) loss on sale of assets 6,502 (2,272) 2,764 (523,767) Net (gain) loss on derivative instruments (51,935) 79,361 (63,182) 208,128 Realized loss on derivative commodity price derivatives (50,463) (129,772) (256,692) (561,105) Net (gain) loss from investment in unconsolidated affiliate 91 4,612 (21,330) (34,366) Distributions from investment in unconsolidated affiliate 2,307 3,266 10,806 43,873 Equity-based compensation expenses 8,849 20,918 46,108 43,426 Other non-cash adjustments 59 3,273 (1,753) 703 Adjusted EBITDA 480,941 475,630 1,727,972 1,592,194 Adjusted EBITDA from discontinued operations — — — (12,296) Adjusted EBITDA from continuing operations 480,941 475,630 1,727,972 1,579,898 Cash Interest (7,485) (7,192) (29,739) (29,988) E&P and other capital expenditures (208,846) (164,074) (922,338) (503,071) Cash taxes paid (17,195) — (17,195) — Adjusted Free Cash Flow $ 247,415 $ 304,364 $ 758,700 $ 1,046,839 Net cash provided by operating activities $ 543,334 $ 478,391 $ 1,819,851 $ 1,924,026 Changes in working capital 7,541 105,805 91,866 46,560 Interest expense, net of capitalized interest 6,344 6,539 28,630 33,034 Current income tax (benefit) expense (30,820) (5,205) 19,701 25,855 Merger costs(1) — 13,360 9,701 79,894 Exploration expenses 2,073 1,923 6,367 2,548 Realized loss on commodity price derivatives (50,463) (129,772) (256,692) (561,105) Distributions from investment in unconsolidated affiliate 2,307 3,266 10,806 43,873 Deferred financing costs amortization and other 566 (1,950) (505) (3,194) Other non-cash adjustments 59 3,273 (1,753) 703 Adjusted EBITDA 480,941 475,630 1,727,972 1,592,194 Adjusted EBITDA from discontinued operations — — — (12,296) Adjusted EBITDA from continuing operations 480,941 475,630 1,727,972 1,579,898 Cash Interest (7,485) (7,192) (29,739) (29,988) E&P and other capital expenditures(2) (208,846) (164,074) (922,338) (503,071) Cash taxes paid (17,195) — (17,195) — Adjusted Free Cash Flow $ 247,415 $ 304,364 $ 758,700 $ 1,046,839 (1) Includes costs directly attributable to the merger of equals with Whiting for the year ended December 31, 2023 and 2022. (2) The year ended December 31, 2023 includes $14 .5MM of E&P and other CapEx related to divested non-operated assets that will be reimbursed. Adjusted Net Income Attributable to Chord and Adjusted Diluted Earnings Attributable to Chord Per Share Adjusted Net Income Attributable to Chord and Adjusted Diluted Earnings Attributable to Chord Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income Attributable to Chord as net income attributable to Chord after adjusting for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, non-cash changes in the fair value of the Company's investment in an unconsolidated affiliate, impairment and other similar non-cash charges, (2) merger costs and (3) the impact of taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income Attributable to Chord is not a measure of net income as determined by GAAP. The Company calculates earnings per share under the two-class method in accordance with GAAP. The two-class method is an earnings allocation formula that computes earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Adjusted Diluted Earnings Attributable to Chord Per Share is calculated as (i) Adjusted Net Income Attributable to Chord (ii) less distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of diluted shares outstanding for the periods presented. The following table presents reconciliations of the GAAP financial measure of net income attributable to Chord to the non-GAAP financial measure of Adjusted Net Income Attributable to Chord and the GAAP financial measure of diluted earnings attributable to Chord per share to the non-GAAP financial measure of Adjusted Diluted Earnings Attributable to Chord Per Share for the periods presented: Three Months Ended December 31 , Year Ended December 31 , 2023 2022 2023 2022 (In thousands) Net income attributable to Chord $ 301,633 $ 377,568 $ 1,023,779 $ 1,856,159 Net (gain) loss on derivative instruments (51,935) 79,361 (63,182) 208,128 Realized loss on commodity price derivatives (50,463) (129,772) (256,692) (561,105) Net (gain) from investment in unconsolidated affiliate 91 4,612 (21,330) (34,366) Distributions from investment in unconsolidated affiliate 2,307 3,266 10,806 43,873 Impairment — (1,417) 28,964 (344) Merger costs(1) — 13,360 9,701 97,739 (Gain) loss on sale of assets 6,502 (2,272) 2,764 (523,767) Amortization of deferred financing costs (610) 1,191 3,023 4,177 Other non-cash adjustments 59 3,273 (1,753) 703 Tax impact(2) 21,250 6,901 67,520 187,403 Other tax adjustments(3) — (125,465) — (400,823) Adjusted net income attributable to Chord 228,834 230,606 803,600 877,777 Adjusted net income attributable to Chord from discontinued operations — — — (6,142) Distributed and undistributed earnings allocated to participating securities (842) (74) (2,482) (96) Adjusted net income from continuing operations attributable to common stockholders $ 227,992 $ 230,532 $ 801,118 $ 871,539 Diluted earnings attributable to Chord per share 6.95 $ 8.64 23.59 $ 57.55 Net (gain) loss on derivative instruments (1.20) 1.82 (1.46) 6.45 Realized loss on commodity price derivatives (1.16) (2.97) (5.91) (17.40) Net (gain) from investment in unconsolidated affiliate — 0.11 (0.49) (1.07) Distributions from investment in unconsolidated affiliate 0.05 0.07 0.25 1.36 Impairment — (0.03) 0.67 (0.01) Merger costs(1) — 0.31 0.22 3.03 (Gain) loss on sale of assets 0.15 (0.05) 0.06 (16.24) Amortization of deferred financing costs (0.01) 0.03 0.07 0.13 Other non-cash adjustments — 0.06 (0.04) 0.04 Tax impact(2) 0.49 0.16 1.56 5.81 Other tax adjustments(3) — (2.87) — (12.43) Adjusted Diluted Earnings Attributable to Chord Per Share 5.27 5.28 18.52 27.22 Less: Adjusted Diluted Earnings From Discontinued Operations Attributable to Chord Per Share — — — (0.19) Less: Distributed and undistributed earnings allocated to participating securities (0.02) — (0.06) — Adjusted Diluted Earnings From Continuing Operations Attributable to Chord Per Share $ 5.25 $ 5.28 $ 18.46 $ 27.03 Diluted weighted average shares outstanding 43,378 43,667 43,398 32,251 Effective tax rate applicable to adjustment items(2) 22.6 % 24.3 % 23.5 % 24.4 % (1) Includes costs directly attributable to the merger of equals with Whiting for the year ended December 31, 2023 and 2022. (2) The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. (3) Other tax adjustments relate to the change in the deferred tax asset valuation allowance, which was adjusted to reflect the tax impact of the other adjustments using an assumed effective tax rate that excludes its impact. View original content to download multimedia: https://www.prnewswire.com/news-releases/chord-energy-reports-fourth-quarter-and-full-year-2023-financial-and-operating-results-declares-base-and-variable-dividends-and-issues-2024-outlook-302068081.html SOURCE Chord Energy Corp.

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