Chord Energy Corp (CHRD) 2023 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Chord Energy analysis combination with Enerplus conference call. (Operator Instructions) This call is being recorded on Wednesday, February 21, 2024.

下午好，女士們先生們，歡迎參加 Chord Energy 分析組合與 Enerplus 電話會議。（操作員說明）此通話錄音時間為 2024 年 2 月 21 日星期三。

And I would now like to turn the conference over to Mr. Michael Lou. Please go ahead.

現在我想把會議交給盧先生。請繼續。

Thank you. Good evening, everyone. Thank you for joining the call. Today, we will be discussing the business combination between Chord Energy and Enerplus, and also touching on fourth-quarter 2023 financial and operational results.

謝謝。各位晚上好。感謝您加入通話。今天，我們將討論 Chord Energy 和 Enerplus 之間的業務合併，並討論 2023 年第四季的財務和營運表現。

With me on the call are Danny Brown, President and Chief Executive Officer of Chord Energy; as well as Ian Dundas, President and Chief Executive Officer of Enerplus, as well as other members of the team.

和我一起參加電話會議的是 Chord Energy 總裁兼執行長 Danny Brown；以及 Enerplus 總裁兼執行長 Ian Dundas 以及團隊的其他成員。

Please be advised that our remarks, including the answers to your questions, include statements that we believe to be forward-looking statements and forward-looking information within the meaning of applicable laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently disclosed in our earnings releases and conference calls. Those risks include, among others, matters that we have described in our joint press release announcing the transaction and quarterly earnings releases as well as in our filings with the Securities and Exchange Commission. We disclaim any obligation to update these forward-looking statements.

請注意，我們的言論，包括對您問題的回答，包括我們認為是適用法律含義內的前瞻性陳述和前瞻性資訊的陳述。這些前瞻性陳述存在風險和不確定性，可能導致實際結果與我們目前在收益發布和電話會議中揭露的結果有重大差異。這些風險包括我們在宣布交易的聯合新聞稿和季度收益發布以及我們向美國證券交易委員會提交的文件中描述的事項等。我們不承擔更新這些前瞻性陳述的義務。

During this conference call, we will make reference to non-GAAP measures and reconciliations to the applicable GAAP measures can be found in core earnings releases and on its website. We may also reference our current investor presentation, which you can also find on our website.

在本次電話會議期間，我們將參考非公認會計準則衡量標準，並可在核心收益發布及其網站上找到適用的公認會計準則衡量標準的調節表。我們也可以參考我們目前的投資者介紹，您也可以在我們的網站上找到該介紹。

With that, I'll turn the call over to Cord CEO, Danny Brown.

接下來，我會將電話轉給 Cord 執行長 Danny Brown。

Thanks, Michael, and thanks, everyone, for joining our call today on such short notice. We're very excited to announce that Chord Energy and Enerplus (technical difficulty) will combine with Enerplus to form a premier Williston basin company. We view today's announcement as the next logical step for both companies as we create a stronger, more sustainable organization that we believe is positioned for continued performance and long-term growth.

謝謝邁克爾，也謝謝大家今天在這麼短的時間內加入我們的電話會議。我們非常高興地宣布，Chord Energy 和 Enerplus（技術難度）將與 Enerplus 合併，組成首屈一指的威利斯頓盆地公司。我們認為今天的公告對兩家公司來說是下一個合乎邏輯的步驟，因為我們將創建一個更強大、更永續的組織，我們相信該組織能夠實現持續的業績和長期成長。

I plan to spend some time commenting on the merits of the deal before turning it over to Ian for some additional thoughts. To start, both Ian and I are proud of what our individual organizations have done over the years. Both companies have diligently worked to position their port portfolios in one of the premier oil basins in North America, resulting in top-tier assets spread across the Williston basin that are highly complementary.

我計劃花一些時間評論這筆交易的優點，然後再將其交給伊恩徵求一些額外的想法。首先，伊恩和我都為我們各個組織多年來所做的事情感到自豪。兩家公司都努力將其港口投資組合定位在北美主要石油盆地之一，從而使頂級資產遍布威利斯頓盆地，具有高度互補性。

Both companies have generated significant free cash flow and have returned a large amount of capital to shareholders. And our teams did this while being good stewards of our environment and the communities in which we operate. Both Chord and Enerplus have talented, hard-working people, and have accomplished a tremendous amount for which they should be extremely proud. Ian and I are certainly proud of them, and we look forward to getting the teams together to share best practices and drive continuous improvement.

兩家公司都產生了大量的自由現金流，並向股東返還了大量資本。我們的團隊在做到這一點的同時，也很好地管理了我們的環境和我們營運所在的社區。Chord 和 Enerplus 都擁有才華橫溢、勤奮的員工，並且取得了巨大的成就，他們應該為此感到非常自豪。伊恩和我當然為他們感到自豪，我們期待讓這些團隊聚集在一起分享最佳實踐並推動持續改進。

Slide 4 of our investor presentation gives a good summary of the merits of the deal. As you can see, this combination checks all the boxes between operating, financial, and strategic goals. It enhances scale and asset quality. Additionally, it delivers accretion on all key financial metrics, which is boosted by significant synergies that we'll get into. Additionally, the combination improves our financial strength and returns, which of course, supports our peer-leading return of capital profile.

我們的投資者簡報的幻燈片 4 很好地總結了該交易的優點。正如您所看到的，這種組合檢視了營運、財務和策略目標之間的所有方塊。它提高了規模和資產品質。此外，它還增加了所有關鍵財務指標，這將受到我們將進入的重大協同效應的推動。此外，此次合併提高了我們的財務實力和回報，這當然支持我們領先同行的資本回報率。

Turning to slide 5, you can see the terms of the combination. The merger consideration is structured as 90% stock and 10% cash. Each Enerplus common share will be exchanged for [0.10125] shares of Chord common stock and $1.84 per share in cash. At this exchange ratio and respective share prices on February 20, 2024, the combined company would have an enterprise value of approximately $11 billion, inclusive of Enerplus' net debt. Pro forma for the transaction, core shareholders will own approximately 67%, and Enerplus shareholders will own approximately 33% of the combined company on a fully diluted basis.

翻到投影片 5，您可以看到組合的條款。合併對價的結構為 90% 股票和 10% 現金。每股 Enerplus 普通股將兌換為 [0.10125] 股 Chord 普通股和每股 1.84 美元的現金。按照這一匯率和 2024 年 2 月 20 日的各自股價，合併後公司的企業價值約為 110 億美元，其中包括 Enerplus 的淨債務。預計此交易，核心股東將持有合併後公司約 67% 的股份，Enerplus 股東將持有合併後公司約 33% 的股份（以完全稀釋計算）。

Following close of the transaction, the Board of Directors will increase to 11 members, which will consist of seven representatives from Chord and four representatives from Enerplus. Ian will join the Board and serve as advisor to the CDO. The Chord executive leadership team will continue to run the combined company. The combination has been unanimously approved by the Board of Directors of both companies.

交易完成後，董事會成員將增至 11 名，其中包括 7 名 Chord 代表和 4 名 Enerplus 代表。Ian 將加入董事會並擔任 CDO 的顧問。Chord 執行領導團隊將繼續營運合併後的公司。此次合併已獲得兩家公司董事會的一致批准。

Currently, we are expecting to close by midyear 2024. Standard regulatory approvals are needed in both US and Canada, plus the shareholder vote, including HSR review. This is a deal that is good for our shareholders, good for consumers, as we should be able to access and ultimately produce more resource than either company would have otherwise been able to do standalone, and good for our communities since as a larger organization will be able to commit more time and resources to reducing our environmental footprint and focusing on local communities.

目前，我們預計在 2024 年年中之前關閉。美國和加拿大都需要標準監管部門的批准，再加上股東投票，包括 HSR 審查。這是一項對我們的股東、對消費者都有好處的交易，因為我們應該能夠獲得併最終生產比任何一家公司單獨都能做的更多的資源，並且對我們的社區也有好處，因為作為一個更大的組織，能夠投入更多時間和資源來減少我們的環境足跡並關注當地社區。

Turning to slide 6. We believe this transaction creates a combined company with meaningful scale. The combined organization will have approximately 1.3 million net acres with 98% of that in the Williston basin. Additionally, combined fourth quarter '23 production is 279,000 barrels of oil equivalent per day with over 90% of that in the Williston basin. The transaction also combines high-quality inventory, which supports sustainable free cash flow through the different commodity cycles.

轉到投影片 6。我們相信，此交易將創造一家具有一定規模的合併公司。合併後的組織將擁有約 130 萬英畝的淨面積，其中 98% 位於威利斯頓盆地。此外，23 年第四季的總產量為每天 279,000 桶油當量，其中 90% 以上產自威利斯頓盆地。該交易還結合了優質庫存，支援不同商品週期的可持續自由現金流。

We believe Chord and Enerplus have some of the best inventory in [Boston]. To illustrate the point since 2022, combined Chord and Enerplus have brought 30% of the top 100 wells online when looking at greater than six months of oil production, while bringing only 15% of the wells online over the same timeframe. Our combined position represents approximately 10 years of low-cost development at the current pace with significant upside beyond that.

我們相信 Chord 和 Enerplus 擁有一些最好的庫存[波士頓]。為了說明這一點，自2022 年以來，Chord 和Enerplus 合併後，在超過6 個月的石油產量中，排名前100 的油井中有30% 已上線，而在同一時間段內，只有15% 的油井上線。我們的合併部位代表著以目前的速度大約需要 10 年的低成本發展，除此之外還有顯著的上升空間。

While the standalone inventory of both companies has compelling returns, the combination expands our three-mile lateral opportunity, and we will continue to pursue additional longer laterals given the success we've had over the past two years. Just to flesh this 3-mile opportunity out a little more. Over the course of 2023, Chord made significant progress in drilling, completing, and cleaning out 3-mile wells. Drilling times have been reduced by roughly 25% since the beginning of 2023. With now only taking 10 to 11 days on average.

雖然兩家公司的獨立庫存具有令人矚目的回報，但合併擴大了我們的三英里橫向機會，鑑於我們在過去兩年取得的成功，我們將繼續尋求更多更長的橫向機會。只是為了讓這個 3 英里的機會更加充實。2023 年，Chord 在鑽探、完井和清理 3 英里井方面取得了重大進展。自 2023 年初以來，鑽井時間減少了約 25%。現在平均只需要10到11天。

On the cleanup side, we've made strong progress over the course of the year and reached [TD] and essentially all 30-plus 3-mile wells brought online in the second half. We get asked frequently if there could be upside to our implied 80% productivity assumption for the third mile. And we believe this is a possibility, especially in light of our progress on cleanouts over the past year.

在清理方面，我們在這一年中取得了巨大進展，並達到了 [TD]，基本上所有 30 多個 3 英里井都在下半年上線。我們經常被問到我們隱含的第三英里 80% 生產力假設是否還有上升空間。我們相信這是有可能的，特別是考慮到我們過去一年在清理方面取得的進展。

However, it will take a little more time likely until the end of this year to get sufficient production history to effectively analyze the three-mile declines and determine whether we can increase our EUR uplift assumptions from 140% to 150%.

然而，到今年年底，可能需要更多的時間才能獲得足夠的生產歷史來有效分析三英里的下降，並確定我們是否可以將歐元上漲假設從 140% 提高到 150%。

The Enerplus team is in the early innings of pivoting to 3-mile laterals and already have over 10% of their inventory set. We see meaningful opportunity to increase this percentage in Enerplus' high-quality acreage, which supports better economics and more free cash flow. Additionally, we're continuing to evaluate 4-mile laterals, and we expect to drill our first 4 milers at the end of this year. If successful, these initiatives should further improve returns.

Enerplus 團隊正處於轉向 3 英里橫向跑的早期階段，並且已經完成了超過 10% 的庫存設定。我們看到了提高 Enerplus 優質種植面積比例的有意義的機會，這將支持更好的經濟效益和更多的自由現金流。此外，我們正在繼續評估 4 英里支線，預計在今年年底鑽探首批 4 英里支線。如果成功，這些舉措將進一步提高回報。

On slide 7, you can see our pro forma market cap is over $10 billion, significantly increasing our size, positioning the combined company nicely within our new large-cap peer group. The combined oil cut is high at 56% and positions us well given the current commodity backdrop.

在投影片 7 上，您可以看到我們的預計市值超過 100 億美元，顯著擴大了我們的規模，使合併後的公司在我們新的大型同行集團中處於良好的位置。綜合石油減產幅度高達 56%，考慮到目前大宗商品的背景，我們處於有利地位。

Slide 8 shows inventory quality and depth as estimated by an independent research firm, which tries to use similar modeling methods across each company represented. The key takeaway is their analysis shows the pro forma quarter right in the mix with large cap names on inventory, depth and quality. While we evaluate our inventory differently than theirs, we believe that they are objective and tried to be consistent. With this in mind, the scale of the combined company is competitive with large-cap peers.

幻燈片 8 顯示了一家獨立研究公司估計的庫存品質和深度，該公司試圖在所代表的每家公司中使用類似的建模方法。關鍵的結論是他們的分析顯示預計季度與庫存、深度和品質方面的大盤股相匹配。雖然我們對我們的庫存的評估與他們的不同，但我們相信他們是客觀的，並試圖保持一致。考慮到這一點，合併後公司的規模與大型同業相比具有競爭力。

Moving to slide 9. As we think about potential synergies, the opportunity is significant. The combined company expects to benefit from administrative, capital, and operating synergies of up to $150 million per year. Administrative synergies are expected to begin immediately in 2024 an increase in 2025, up to $40 million. Capital synergies are expected to increase to up to $55 million during 2025 and operating synergies initiate in 2025 and are expected to increase up to $55 million in 2026.

轉到投影片 9。當我們考慮潛在的協同效應時，機會是巨大的。合併後的公司預計每年將受益於高達 1.5 億美元的管理、資本和營運綜效。行政綜效預計將於 2024 年立即開始，並於 2025 年增加至 4,000 萬美元。資本綜效預計將在 2025 年增加至 5,500 萬美元，營運綜效將於 2025 年啟動，預計 2026 年將增加至 5,500 萬美元。

The combined company will leverage best practices to further advance efficiencies across the business. The after-tax present value of synergies is expected to exceed $750 million.

合併後的公司將利用最佳實踐進一步提高整個業務的效率。協同效應的稅後現值預計將超過 7.5 億美元。

As you are aware, this is a cross-border transaction. The team has evaluated the tax ramifications and we do not expect it to be much tax leakage on a pro forma basis. To expand on this bit, the core team has made great progress reducing downtime through the course of 2023. As a combined company, we see additional opportunity to make progress on improving downtime, which is important given base production is the vast majority of any year's volumes.

如您所知，這是一筆跨境交易。團隊已經評估了稅收影響，我們預計預計不會有太多稅收流失。為了擴展這一點，核心團隊在 2023 年減少停機時間方面取得了巨大進展。作為一家合併後的公司，我們看到了在減少停機時間方面取得進展的更多機會，鑑於基礎產量佔任何年份產量的絕大多數，這一點非常重要。

Additionally, we'll be looking at ways to drive LOE down through field standardization, data analytics, lower failure rates, among other items. You can refer to the appendix for more detail on synergy potential. I should note, our respective teams have spent considerable time together, and look forward to digging in on further synergies. We are confident we can deliver based on the capability and level of rigor from both teams.

此外，我們將尋找透過現場標準化、數據分析、降低故障率等來降低 LOE 的方法。您可以參閱附錄以了解更多有關協同潛力的詳細資訊。我應該指出，我們各自的團隊一起度過了相當長的時間，並期待進一步發揮協同作用。我們有信心能夠根據兩個團隊的能力和嚴謹程度來交付。

Now turning to slide 10, we see our superior profitability. Our high oil cut of 56% underpins healthy cash margins. As we just discussed, we are focused on expanding margins further through a variety of initiatives. Additionally, the transaction is accretive to all financial metrics and accretion didn't come at the cost of financial strength. We maintain our best-in-class credit profile with net debt to EBITDA of 0.2 times at close and minimal near-term maturities. With leverage well below peers, we have additional flexibility for strategic initiatives and return of capital.

現在轉向投影片 10，我們看到了我們卓越的獲利能力。我們 56% 的高油價削減支撐著健康的現金利潤。正如我們剛才所討論的，我們致力於透過各種措施進一步擴大利潤。此外，這筆交易對所有財務指標都有增值作用，而且增值並不以犧牲財務實力為代價。我們維持一流的信用狀況，近期和最低期限的淨債務與 EBITDA 比率為 0.2 倍。由於槓桿率遠低於同行，我們在策略性舉措和資本回報方面擁有額外的靈活性。

Turning to slide 11, Chord has significantly outperformed our new large-cap peers over the past several years through a combination of mergers, acquisitions, and divestitures, focus on returns, and returning significant capital to shareholder. All of this was done while maintaining a healthy balance sheet. Notably, Chord has paid $45 per share in dividends since 2021, while the underlying equity has appreciated significantly as well.

轉向投影片 11，Chord 在過去幾年中透過合併、收購和剝離、注重回報以及向股東返還大量資本，其表現顯著優於我們新的大型同行。所有這一切都是在保持健康的資產負債表的同時完成的。值得注意的是，自 2021 年以來，Chord 已支付每股 45 美元的股息，而基礎股本也大幅升值。

So accretion is obviously important to shareholder returns. And as we discussed earlier, the outlook is strong on that front. The pro forma company expects approximately $1.2 billion of free cash flow and a reinvestment rate of approximately 51% in 2024 at $79 per barrel WTI and $250 per MMBtu NYMEX gas.

因此，增值對於股東回報顯然很重要。正如我們之前討論的那樣，這方面的前景十分強勁。該公司預計到 2024 年，WTI 原油每桶 79 美元，NYMEX 天然氣每桶 250 美元，自由現金流約 12 億美元，再投資率約 51%。

Return of capital following closing is expected to remain at Chord's pre combination level of 75% plus of free cash flow given the strong balance sheet. Chord's base dividend remains unchanged at $5 per year. The base dividend will continue to be supplemented by share repurchases and variable dividends.

鑑於強勁的資產負債表，交易完成後的資本回報率預計將保持在 Chord 合併前 75% 以上的水平，加上自由現金流。Chord 的基本股利維持每年 5 美元不變。基本股利將繼續透過股票回購和可變股利來補充。

Slide 12 shows our relative valuation and yield, which we view as attractive seeing is they are based on pro forma analyst consensus expectations and don't include the impact of synergies. And finally, slide 13 summarizes the merits of the deal, and I think it's important to note that both Chord and Enerplus have maintained a disciplined approach to M&A. We're confident the combination is the right move and will result in significant value creation for both of our respective shareholders.

投影片 12 顯示了我們的相對估值和收益率，我們認為這些估值和收益率很有吸引力，因為它們基於分析師的預估共識預期，並且不包括協同效應的影響。最後，投影片 13 總結了這筆交易的優點，我認為值得注意的是，Chord 和 Enerplus 都保持了嚴格的併購方式。我們相信這次合併是正確的舉措，將為我們各自的股東創造巨大的價值。

Additionally, both Chord and Enerplus have a tremendous track record of being responsible corporate citizens and respecting all of our stakeholders. We remain committed to ESG and sustainability and capitalizing on combined best practices. We also remain committed to supporting the communities where we operate and look forward to building on each company's relationship with the MHA Nation and their leadership.

此外，Chord 和 Enerplus 在成為負責任的企業公民和尊重所有利害關係人方面都擁有良好的記錄。我們仍然致力於 ESG 和永續發展，並利用綜合最佳實踐。我們也繼續致力於支持我們營運所在的社區，並期待加強每家公司與 MHA Nation 及其領導層的關係。

To sum things up, the combined company is expected to generate significant free cash flow from its low-cost asset base, improve efficiencies, and execute disciplined capital spending through business cycles.

總而言之，合併後的公司預計將從其低成本資產基礎中產生大量自由現金流，提高效率，並在整個商業週期中執行嚴格的資本支出。

With that, I'll turn the call over to Ian to provide some thoughts on the combination.

這樣，我會將電話轉給 Ian，以提供一些關於組合的想法。

Thanks, Danny.

謝謝，丹尼。

I believe the value-enhancing opportunities from this combination are compelling. This transaction represents a unique opportunity to drive meaningful cost and operational synergies, and improving profitability profile and will position the pro forma business to continue to deliver strong value creation on a sustainable basis over the long term.

我相信這種組合所帶來的增值機會是引人注目的。這項交易代表了一個獨特的機會，可以推動有意義的成本和營運協同效應，並提高盈利能力，並將使備考業務能夠在長期可持續的基礎上繼續創造強大的價值。

We are excited about the opportunities our combination creates for our shareholders, our people, and all of our other stakeholders. The combined footprint is remarkable and Enerplus' core inventory is a strong complement to Chord's position. Building on the success Chord has had with 3-mile laterals across our position should drive further upside to the premier -- to our premier Williston position.

我們對我們的合併為我們的股東、我們的員工和所有其他利益相關者創造的機會感到興奮。合併後的足跡非常引人注目，Enerplus 的核心庫存是對 Chord 地位的強大補充。以 Chord 在 3 英里橫向跑中取得的成功為基礎，我們的位置應該會進一步推動我們領先的威利斯頓位置的上升。

We see significant opportunity to expand to longer laterals and believe the combined company is in a strong position to be the basin leader on this front.

我們看到了向更長支管擴張的重大機會，並相信合併後的公司處於成為這方面盆地領導者的有利地位。

As Danny noted, we believe the transaction is very good for shareholders of both companies. It is an excellent strategic fit. It is accretive to key financial metrics while retaining a pristine balance sheet. The large stock component provides enterprise shareholders with a strong near-term return on their investment and further upside from ownership in the combined entity.

正如丹尼指出的那樣，我們相信這筆交易對兩家公司的股東都非常有利。這是一個極好的策略契合。它可以增加關鍵財務指標，同時保留原始的資產負債表。大量股票成分為企業股東提供了強勁的近期投資回報，並從合併後實體的所有權中獲得了進一步的上漲空間。

On the operational side, both companies have a strong execution track record. Over the last few years, drilling and completion times have improved for both companies and currently rank in the top tier for Williston operators. Additionally, the enhanced size and scale that comes with this combination supports more consistent activity, which lends itself to more efficient operations. You can see these benefits highlighted in the synergies announced.

在營運方面，兩家​​公司都擁有良好的執行記錄。在過去幾年中，兩家公司的鑽井和完井時間均有所改善，目前在威利斯頓營運商中名列前茅。此外，這種組合帶來的更大的規模和規模支持更一致的活動，這有助於更有效率的營運。您可以在宣布的協同效應中看到這些優勢的突出體現。

The Chord team has a proven track record of executing on integration and synergy capture as we saw with the integrations of [QEP], Whiting, Oasis, and last year's XTO acquisition.

正如我們在 [QEP]、Whiting、Oasis 的整合以及去年的 XTO 收購中所看到的那樣，Chord 團隊在執行整合和獲取協同效應方面擁有良好的記錄。

On the enterprise side, we've also been active in the A&D market in recent years and have a lot of integration experience to bring to bear. We look forward to working with Chord team to capture these savings and make our combined business better to deliver more value to shareholders.

在企業方面，我們近年來也活躍在A&D市場，有許多整合經驗可以發揮。我們期待與 Chord 團隊合作，實現這些節省，並使我們的合併業務更好，為股東創造更多價值。

And finally, on a personal note, it has been a privilege to lead Enerplus over the past 11 years. I want to thank our employees and their families for their dedication and all the hard work over the years that has allowed us to build such a great organization. We are now ready to get going on the integration with the goal of making an even stronger, more competitive company. Together, we will achieve things that neither company could on a standalone basis.

最後，就我個人而言，我很榮幸在過去 11 年裡領導 Enerplus。我要感謝我們的員工及其家人多年來的奉獻和辛勤工作，使我們能夠建立如此出色的組織。我們現在已準備好進行整合，目標是打造更強大、更具競爭力的公司。我們將共同實現任何一家公司都無法單獨實現的目標。

So with that, I will hand it back over to Danny.

所以，我會把它交還給丹尼。

Thank you, Ian. So in closing, I just want to say that we are very excited and happy to announce this transaction and believe the combination of the two companies' premier asset bases, operational ability, and technical acumen will drive further success and create a stronger, larger company positioned to deliver competitive returns in peer-leading shareholder distributions.

謝謝你，伊恩。最後，我只想說，我們非常興奮和高興地宣布這項交易，並相信兩家公司一流的資產基礎、營運能力和技術敏銳度的結合將推動進一步的成功，創建一家更強大、更大的公司定位於在同業領先的股東分配中提供具競爭力的回報。

Thanks for listening. And now we'll turn the call over to Q&A.

感謝收聽。現在我們將把通話轉入問答環節。

(Operator Instructions) Derrick Whitfield, Stifel.

（操作員說明）Derrick Whitfield，Stifel。

Good afternoon, all, and congrats to you both on the transaction.

大家下午好，恭喜你們兩個完成交易。

Thanks, Derrick.

謝謝，德里克。

For my first question, I wanted to lean in on operational synergies. Could you walk through some of the D&C synergy drivers on page 16 in cost per foot terms?

對於我的第一個問題，我想依靠營運協同效應。您能否以每英尺成本的形式詳細介紹第 16 頁上的一些 D&C 協同驅動因素？

Thanks for the question, Derrick. I think as we think about our opportunity to improve from a D&C standpoint, we're leaning a little bit on some of the experience we had with Oasis, Whiting where we were able to use some of the best combined practices of both organizations. And so we used Oasis practices in some areas. We used Whiting practices in other areas. And really, by having that open dialogue, we were able to just really glean and use different bit technology, use different casing profiles, and it really allowed us to get to improve there.

謝謝你的提問，德里克。我認為，當我們從 D&C 的角度考慮改進的機會時，我們稍微借鑒了 Oasis、Whiting 的一些經驗，我們能夠利用這兩個組織的一些最佳組合實踐。因此我們在某些​​領域採用了綠洲實踐。我們在其他地區使用了鱈魚做法。事實上，透過公開對話，我們能夠真正收集並使用不同的鑽頭技術，使用不同的套管輪廓，這確實使我們能夠在這方面進行改進。

So when we think about the D&C for this transaction, we've had the teams together at a very high level because we really haven't been able to involve too many people in this approach so far. But even through that very short period of time, we've been able to identify up to $55 million synergies associated with that. So some of this includes expanding into 3-mile laterals, and some of it improves just the overall process that we think we'll be able to drill and complete that.

因此，當我們考慮這筆交易的 D&C 時，我們的團隊在非常高的水平上聚集在一起，因為到目前為止我們確實無法讓太多的人參與這種方法。但即使在很短的時間內，我們也能夠確定與此相關的高達 5500 萬美元的協同效應。因此，其中一些包括擴展到 3 英里的支線，其中一些只是改進了我們認為能夠鑽探和完成的整個過程。

But I'm going to ask Darrin maybe to expand on it just a little more.

但我想請達林再擴展一下。

Yeah, thank you, Danny. I'm happy to expand further on that. When you look at Chord's performance in the first quarter, we've drilled our fastest 2-mile well spud-to-rig release in 7.4 days. We're averaging two-mile wells in 8.9 days spud-to-rig release.

是的，謝謝你，丹尼。我很高興能進一步擴展這一點。當您查看 Chord 第一季的表現時，您會發現我們在 7.4 天內就完成了最快的 2 英里井開鑽到鑽機釋放。我們平均在 8.9 天內從開鑽到鑽機釋放兩英里的油井。

Looking at 3-mile wells, we've drilled our fastest well at 9.5 days spud-to-rig release this quarter. And over the fourth quarter, we averaged 10.3 days spud-to-rig release. Those, in general, are 1.5 days to 2 days faster than what we were seeing on the Enerplus. And so that will be a synergy that we can capture just almost immediately.

就 3 英里井而言，本季我們鑽探速度最快的井為 9.5 天。在第四季度，我們平均從開端到鑽孔機的發佈時間為 10.3 天。一般來說，比我們在 Enerplus 上看到的快 1.5 天到 2 天。因此，這將是我們幾乎可以立即捕捉到的協同效應。

The fact that we're drilling 70% to 75% of the Chord's wells this year, we're planning to be 3-mile laterals. And we're also going to expand what Enerplus had planned this year. And it'll take time for us to do all the permitting work and regulatory work to make that happen. But clearly, Chord has demonstrated quite the ability on 3-mile wells. And you'll see us doing that going forward post-closing.

事實上，今年我們已經鑽探了 Chord 70% 至 75% 的井，我們計劃進行 3 英里的支管鑽探。我們也將擴展 Enerplus 今年的計畫。我們需要時間來完成所有許可工作和監管工作才能實現這一目標。但顯然，Chord 在 3 英里井上已經展示了相當的能力。你會看到我們在交易結束後繼續這樣做。

I think the other thing to mention on a DCE standpoint, Derrick, is we've also, just from a facilities perspective, one thing that we really did have, I think, maybe leading the basin in is the way we approach our facilities and doing a standardized modular facility approach. And so these end up being much less expensive than stick building your facilities on location. And it's also a lot safer, and it's a better environmental footprint as well. So that's another part, sort of a synergy that we'll roll through into the overall DC&E cost.

我認為，Derrick，從DCE 的角度來看，我們還需要提及的另一件事是，僅從設施的角度來看，我們確實擁有一件事，我認為，也許引導盆地的方式是我們處理設施的方式，採取標準化模組化設施方法。因此，這些最終比在現場建造設施便宜得多。而且它也更安全，對環境的影響也更好。這是另一部分，我們將把它納入 DC&E 總體成本中。

Thanks, guys. And then as my follow-up, with respect to the LOE synergy, could you talk to the delayed nature of implementation? I imagine, in part, it's when you're going to change out lift, but any other color you could add would be greatly appreciated.

多謝你們。然後，作為我的後續行動，關於 LOE 協同作用，您能否談談實施的延遲性質？我想，在某種程度上，這是當你要改變升力的時候，但你可以添加的任何其他顏色將不勝感激。

So I think you're hitting on it, Derrick. And our experience, again, we're able to lean a little bit on the recent transaction with Oasis, Whiting. What we saw there is it took about a year before we saw the operational synergies roll through. And part of that is, and I'll give an example, one of the legacy organizations in the previous transaction had a different rod installation practice and a different material practice than the other, which led to much longer run times on our rod pumps.

所以我認為你說得對，Derrick。我們的經驗再次可以藉鏡最近與 Oasis, Whiting 的交易。我們在那裡看到的是，我們花了大約一年的時間才看到營運協同效應的顯現。其中一部分是，我將舉一個例子，先前交易中的一個遺留組織與另一個組織有不同的桿安裝實踐和不同的材料實踐，這導致我們的桿泵的運行時間更長。

And so we had lower failure rate over time. So when you have that lower failure rate, you don't have to do the repair work, but that takes time to sort of bear fruit. And so as we think about these operational practices, some of it's about reducing future failure rate, and it's the lack of future workovers and future LOE that really rolls through. And so that's part of that delay is just you implement different operating practices, and then you see the benefit of it later. And that's certainly what we saw with Whiting and Oasis.

因此，隨著時間的推移，我們的故障率會降低。因此，當故障率較低時，您就不必進行維修工作，但這需要時間才能取得成果。因此，當我們考慮這些操作實踐時，其中一些是為了降低未來的故障率，並且真正實現的是未來修井和未來 LOE 的缺乏。因此，延遲的一部分是您實施不同的操作實踐，然後您稍後會看到它的好處。這當然就是我們在 Whiting 和 Oasis 中看到的情況。

Neal Dingmann, Truist Securities.

尼爾‧丁曼 (Neal Dingmann)，Truist 證券公司。

Hi, everybody. Guys, congrats. It certainly seems to make a lot of sense. Danny, my first question. You've definitely listed now a long list of potential savings. I'm curious about potential marketing or OFS opportunities given you all now will be the dominant player in the basin.

大家好。夥計們，恭喜。這看起來確實很合理。丹尼，我的第一個問題。您現在肯定已經列出了一長串潛在的節省費用的清單。我對潛在的營銷或 OFS 機會感到好奇，因為你們現在都將成為該盆地的主導者。

Well, Neil, I'd say when we probably won't get too much into marketing, we won't get the teams together to start talking about any of that until sometime post close. From an OFS perspective, I think both companies had good contracts with folks, and the basins both had premier programs. I think the real savings we may see from that sort of practice isn't so much through per-job savings, although, we could see some of that, but it's really about the operational efficiency we're going to pick up through the program.

好吧，尼爾，我想說的是，當我們可能不會過多地參與行銷時，我們不會讓團隊聚集在一起開始討論任何事情，直到結束後的某個時候。從 OFS 的角度來看，我認為兩家公司都與人們簽訂了良好的合同，並且流域都有一流的項目。我認為，我們從這種實踐中看到的真正節省並不是透過每項工作節省多少，儘管我們可以看到其中的一些，但這實際上與我們將透過該計劃獲得的營運效率有關。

And so you can imagine running one completion crew but not being able to run it through the course of the year. If you're able to sign a longer contract because you've got that program through the entire course of the year, you're going to do -- you're able to not only get contract -- see contract savings, but your operation is actually much more efficient, as well. So your per-job cost goes down on two fronts. So that's kind of how we're thinking about it.

因此，您可以想像運行一個完井小組，但無法在一年中運行它。如果你能夠簽署一份更長的合同，因為你在整個一年中都參加了該計劃，那麼你不僅能夠獲得合同，還能看到合同節省，而且你的操作實際上也更加高效。因此，您的每份工作成本在兩個方面都會下降。這就是我們的想法。

Yeah, it makes sense. And then can you just remind, would you all say kind of what you're anticipating for effective date and assumed close, and then if there -- what type of -- if any lockup there will be?

是的，這是有道理的。然後你能提醒一下，你們都說一下你們對生效日期和假設結束的預期是什麼，然後如果有的話，會是什麼類型的，如果有任何鎖定？

So looking at anticipated close of potentially by midyear.

因此，我們預計可能會在年中結束。

Okay, and then any lockup on the guys?

好吧，那這些傢伙有沒有被鎖定？

No.

不。

Oliver Huang, TPH.

奧利弗·黃，TPH。

Good afternoon, all, and congrats on the deal, and thanks for taking my questions. Just a quick question on the longer laterals. I know in the past, you all have highlighted 55% to 60% of remaining inventory being conducive to 3-mile lateral development on a Chord standalone basis, and it looks like you all are highlighting greater than 40% of pro-forma inventory in that bucket, which doesn't really imply that many Enerplus locations falling into that 3-mile lateral bucket. So just kind of wondering how much of that Enerplus plus inventory could be developed as 3-mile laterals, potentially, and if there are any sort of leasehold limitations that are preventing you all from doing so?

大家下午好，恭喜這筆交易，謝謝您回答我的問題。只是一個關於較長支線的簡單問題。我知道過去，你們都強調了 55% 到 60% 的剩餘庫存有利於 Chord 獨立基礎上的 3 英里橫向發展，而且看起來你們都強調了超過 40% 的預估庫存那個桶，這並不意味著很多Enerplus 地點都屬於這個3 英哩的橫向桶。因此，我想知道有多少 Enerplus plus 庫存可以開發為 3 英里的橫向幹線，以及是否有任何類型的租賃限制阻止你們這樣做？

Yeah, so the way I think about that is they just started on Enerplus to start thinking about getting 3-mile laterals. And so I think we mentioned in our prepared remarks, we're just over 10% set up for 3 miles, but we have not actually had the time to do the Tetris work to continue to figure out what that could look like on a pro-form basis combined. And on top of that, there's just a lot of permitting work that needs to be done.

是的，所以我的想法是他們剛開始使用 Enerplus 開始考慮獲得 3 英里的橫向行駛。因此，我想我們在準備好的演講中提到，我們剛剛完成了3 英里的10% 以上的設置，但實際上我們還沒有時間進行俄羅斯方塊工作，以繼續弄清楚在專業版上會是什麼樣子。- 形式基礎相結合。最重要的是，還有很多許可工作要完成。

So we actually think there's more upside to the 40% number we announced. We just wanted to start conservatively in order to be able to move that up over time.

所以我們實際上認為我們宣布的 40% 數字還有更多的上升空間。我們只是想保守地開始，以便能夠隨著時間的推移逐步提高。

Awesome. That's helpful. And just one other question on the completion side of things. I know you all have generally run more conservative spacing to maximize per-well IRRs. Are you all planning to make any changes with respect to the type of spacing that Enerplus had previously been running on their asset base? I think they were probably running a few extra well, including a couple in the three-fourths depending on where you are in the basin.

驚人的。這很有幫助。還有一個關於事情完成的問題。我知道你們通常都採用更保守的間距來最大化每口井的 IRR。你們是否都計劃對 Enerplus 之前在其資產基礎上運行的間距類型進行任何更改？我認為他們可能運行得特別好，包括四分之三的幾個，這取決於你在盆地的位置。

Yeah, I think as we get the teams together, we've got a spacing philosophy that's generally a little wider, has wells that are a little longer, somewhat due to the least geometry we have with some larger completions, and that's worked well for us over time.

是的，我認為當我們把團隊聚集在一起時，我們有一個間距理念，通常更寬一點，井更長一點，某種程度上是由於我們在一些較大的完井項目中擁有最少的幾何形狀，這對於隨著時間的推移我們。

I think as we get the teams together, we're going to evaluate on really a DSU and sort of a DSU-by-DSU basis, what's the appropriate development methodology for that specific area. And so we will -- one of the things we know is that if we don't want to overcapitalize areas, but by the same token, what we don't want to do is space out too wide so that we're missing high return opportunities within that DSU.

我認為，當我們將團隊聚集在一起時，我們將在真正的 DSU 以及逐個 DSU 的基礎上評估該特定領域的適當開發方法是什麼。因此，我們知道的一件事是，如果我們不想過度資本化區域，但出於同樣的原因，我們不想做的就是空間太寬，以至於我們錯過了高該 DSU 內的回報機會。

So I think you may see spacing a little wider as we move forward, but it's something we need to get the teams together and share best practices and share learnings, and it's one of the opportunities for actual value enhancement as we think about this deal.

因此，我認為，隨著我們前進，您可能會看到差距有點大，但這是我們需要將團隊聚集在一起並分享最佳實踐和分享經驗的事情，而且當我們考慮這筆交易時，這是實際價值提升的機會之一。

David Deckelbaum, TD Cowen.

大衛·德克爾鮑姆，TD·考恩。

Congrats on the deal, everyone. I appreciate the time tonight. I am curious just -- I know you said that you wouldn't issue pro forma guidance until the deal closes, but I guess can you sort of give us a sense of the appropriate rig and frack criteria? Are you baking in a better balance of rigs versus completion crews? I think you alluded to it in your last comments, Danny, on just having a dedicated crew for a longer duration time. Is that inherently what's driving that $55 million CapEx? And I guess, like, what does that balance look like between the two companies pro forma?

恭喜大家達成協議。我很珍惜今晚的時間。我很好奇——我知道您說過在交易完成之前您不會發布備考指南，但我想您能否讓我們了解適當的鑽機和壓裂標準？您是否在鑽孔機與完井人員之間取得了更好的平衡？丹尼，我想你在最近的評論中提到了這一點，即在更長的時間內擁有一支敬業的工作人員。這是否是推動 5,500 萬美元資本支出的本質原因？我想，兩家公司之間的平衡是什麼樣的呢？

Yeah, I think as we move forward, it's going to take -- as you can imagine, so there is an inertia to a development program, and so you've got to get all your permits done. You've got your infrastructure laid out. And so unfortunately, we can't -- they don't move really quickly, and so -- and we haven't been able to get the teams together to really work a pro forma development plan in detail, and we'll have some restrictions on doing that up until close.

是的，我認為隨著我們的前進，這將需要——正如你可以想像的那樣，因此開發計劃存在慣性，所以你必須完成所有許可。您已經佈置好了基礎設施。不幸的是，我們不能——他們行動得不太快，所以——我們無法讓團隊聚集在一起，真正詳細地制定一份備考開發計劃，我們將在交易結束之前這樣做有一些限制。

And so we will -- through the transition process, we'll develop a combined development program. Clearly, we've got assumptions we're using now, but we'll refine that as we move forward. And then post close, we'll roll out a full new development plan for the post-closed organization. And in that process, one of the advantages we will get with this is more continuous operations and a better balance of being able to run operations continuously.

因此，我們將在過渡過程中製定一個聯合開發計劃。顯然，我們已經有了現在正在使用的假設，但隨著我們的進展，我們將對其進行改進。然後，關閉後，我們將為關閉後的組織推出全新的發展計畫。在此過程中，我們將獲得的優勢之一是更連續的營運以及能夠連續運行營運的更好平衡。

And when I say better balance, just not the need to start and stop crews as the year moves on because the overall pro forma program will be larger, and we should be able to pick up some operational benefit as a result of that.

當我說更好的平衡時，只是隨著時間的推移不需要啟動和停止工作人員，因為整體備考計劃將會更大，我們應該能夠因此獲得一些營運效益。

If I appreciate the response and I know it's -- I'm just curious how you're thinking going forward now. With this deal, you guys both scale up. You're staying in base and consolidating this area, and there's obviously some ample synergies there. Does this change how you think about the company's position in the marketplace going forward? Or do you anticipate this being sort of the beginning of further consolidation in the basin that's been already fairly heavily consolidated.

如果我很欣賞你的回應並且我知道——我只是好奇你現在對未來的想法如何。透過這筆交易，你們雙方都擴大了規模。你留在基地並鞏固這個領域，顯然那裡有一些充足的協同作用。這是否會改變您對公司未來市場地位的看法？或者您是否預計這將是已經相當嚴重整合的盆地進一步整合的開始。

Well, I'd say it's hard to speculate on what happens moving forward. Really kind of focused on this deal and what this deal does for both of our respective organizations. Michael?

好吧，我想說很難推測未來會發生什麼事。真正關注的是這筆交易以及這筆交易對我們各自組織的影響。麥可？

Yeah. I think that another way to think about it, David, is like we've got about on the Chord side, 100 a day of production. With Enerplus we're adding, we're getting to about 150 a day of production. We're still only about 12% to 13% of the [Bakken]. It's not -- there's a lot of players still, and I get it that it's somewhat consolidated. We certainly have some big players in the basin.

是的。David，我認為換一種思考方式，就像我們在 Chord 方面的情況一樣，每天生產 100 個產品。借助 Enerplus，我們的日產量達到了約 150 個。我們仍然只佔到 12% 到 13% 左右[巴肯]。事實並非如此——仍然有很多玩家，而且我知道它在某種程度上是整合的。我們盆地裡當然有一些大玩家。

I think this just puts us in a really nice position now. We'll continue to look at what can further be done in the basin. But certainly, other people in other basins have consolidated way more than where the Bakken is. So we think there's still continued opportunities, and we're just in a good position overall.

我認為這讓我們現在處於一個非常好的位置。我們將繼續研究在該盆地可以進一步做些什麼。但可以肯定的是，其他盆地的其他人的鞏固程度比巴肯地區的要大得多。因此，我們認為仍然存在持續的機會，而且我們總體處於有利位置。

(Operator Instructions) John Abbott, Bank of America.

（操作員指示）John Abbott，美國銀行。

Thank you very much for taking our questions. Just to go back to David's question that was just asked on looking at potential opportunities to further consolidate in the Bakken. You did mention the fact that you have a strong balance sheet, post this via roughly about 0.2 times. Would you want some time -- would you be willing to act on -- if it came available, would you be willing to act on something sooner versus later, or do you want to see the synergies from this transaction?

非常感謝您接受我們的提問。回到大衛剛剛提出的關於尋找進一步鞏固巴肯的潛在機會的問題。您確實提到了您擁有強大的資產負債表這一事實，透過大約 0.2 次發布此資訊。您是否想要一些時間——您是否願意採取行動——如果有時間，您是否願意儘早或稍後採取行動，或者您是否希望看到此次交易的協同效應？

Again, John, I'd say it's kind of hard to speculate on sort of future hypothetical opportunities. I think the strong pro forma balance sheet we have is going to give us a lot of flexibility, and that could give us flexibility from a return of capital standpoint to whether resiliency with commodity price fluctuations, or to pursue different growth opportunities. And so I think we'll take those things as we see them in the future.

約翰，我再說一遍，很難推測未來的假設機會。我認為，我們擁有的強勁的備考資產負債表將為我們提供很大的靈活性，從資本回報的角度來看，這可以為我們提供靈活性，無論是對大宗商品價格波動的彈性，還是追求不同的成長機會。所以我認為我們將來會按照我們所看到的那樣對待這些事情。

But the number-one priority is going to be putting these companies together, really coming together to get the best out of both organizations. Both organizations have done an incredible job, and we can learn from each other and get better, though. So that's going to be the first and foremost is we're going to get the most out of putting these two companies together.

但首要任務是將這些公司整合在一起，真正走在一起，充分發揮兩個組織的作用。兩個組織都做了令人難以置信的工作，但我們可以互相學習並變得更好。因此，首先也是最重要的是，我們將充分利用這兩家公司的合併。

Absolutely. And just looking at the pro forma portfolio, I mean, there's a -- on Enerplus' side, there is a position in Appalachia. Will there be opportunities for divestitures coming out of this?

絕對地。只要看看預計的投資組合，我的意思是，在 Enerplus 方面，在阿巴拉契亞有一個職位。由此會帶來資產剝離的機會嗎？

Yeah, I think as we look at the Appalachian position, it represents about -- it's in a great spot in the basin, a core position in the basin with a good operator. It represents only about 2% of the pro forma EBITDA. So I think as we -- it's a very small part of the overall company. And as we look at what's sort of treated like other -- all aspects of our portfolio, we'll continually evaluate sort of all aspects of our portfolio on should they stay in or should they not stay in.

是的，我認為當我們觀察阿巴拉契亞位置時，它代表了——它位於盆地的一個好位置，是盆地的核心位置，有一個優秀的操作員。它僅佔預計 EBITDA 的 2% 左右。所以我認為，就我們而言，它只是整個公司的一小部分。當我們審視我們投資組合的所有方面的對待方式時，我們將不斷評估我們投資組合的各個方面是否應留在其中。

Kevin McCurdy, Pickering Energy Partners

凱文麥柯迪，皮克林能源合作夥伴

Hey. Good afternoon, and congratulations on potentially becoming the largest Williston producer. Just one question for me. We kind of expected you guys to have a mid-single-digit cash tax rate in 2024. Can you remind us where Enerplus is? And what -- if any, you would expect there to be a change after this transaction?

嘿。下午好，恭喜您有可能成為威利斯頓最大的生產商。只是問我一個問題。我們預計 2024 年你們的現金稅率將達到中個位數。你能提醒我們 Enerplus 在哪裡嗎？如果有的話，您預計這筆交易後會發生什麼變化？

Yeah, so we've done a bunch of work on that cash tax side. The combined entity is going to have a very similar type of cash tax profile going forward. We don't think that there's a lot of tax leakage in the transaction overall. So we'll continue to give a little bit more guidance on that going forward. But it's in a similar neighborhood to where -- what we've been talking about on the court side.

是的，我們在現金稅方面做了很多工作。合併後的實體未來將擁有非常相似的現金稅概況。我們認為整體交易中並沒有大量的稅收流失。因此，我們將繼續就此提供更多指導。但它與我們在球場邊談論的地方位於相似的街區。

Yeah, maybe a hair or less. But, yeah, it'll be similar on a pro forma basis.

是的，也許一根頭髮或更少。但是，是的，在形式上它會是相似的。

And is that going to continue out into past 2024?

這種情況會持續到 2024 年嗎？

Correct. That'll be continuing on past that.

正確的。這將繼續過去。

(Operator Instructions) There are no further questions at this time. Mr. Brown, please proceed.

（操作員說明） 目前沒有其他問題。布朗先生，請繼續。

I'd just like to thank everybody for joining the call today. It's an exciting day for both Chord and Enerplus shareholders as we are able to announce this very important transaction and a combination that we think is really going to benefit both of our shareholders as we move forward. So thank you for giving us your time this afternoon and for joining our call.

我只想感謝大家今天加入電話會議。對於 Chord 和 Enerplus 股東來說，這是令人興奮的一天，因為我們能夠宣布這項非常重要的交易以及我們認為在我們前進的過程中真正將使我們雙方股東受益的合併。感謝您今天下午抽出時間並加入我們的電話會議。

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may all disconnect.

謝謝。女士們、先生們，今天的會議到此結束。感謝大家的參與。你們都可以斷開連線。