New Houston Headquartered Oil Producer Established
Whiting Petroleum Corporation and Oasis Petroleum Inc have completed their combination, creating a new Houston headquartered company named Chord Energy Corporation (NASDAQ: CHRD).
Chord describes itself as a scaled unconventional U.S. oil producer with a premier Williston Basin position and “top tier” assets across approximately 972,000 net acres, combined first quarter production of 171,000 barrels of oil equivalent per day, and enhanced free cash flow generation.
In a company statement posted on its website, Chord noted that it is well positioned to drive “significant” shareholder value. The company said it has “significant” financial strength “anchored” by an attractive balance sheet and revealed that it expects to return 60 percent of its free cash flow to shareholders in the second half of 2022 through its base dividend, variable dividends, and share buybacks.
Former Whiting shareholders own approximately 53 percent and former Oasis shareholders own approximately 47 percent of Chord on a fully diluted basis, Chord highlighted in the statement.
“We are excited to establish Chord Energy, which will build on the proud legacies and extraordinary talent and capabilities of Whiting and Oasis,” Danny Brown, Chord’s President and Chief Executive Officer, said in a company statement.
“With a premier Williston Basin position, a peer-leading balance sheet, significant scale and enhanced free cash flow generation, Chord is positioned to succeed. Chord will execute a focused strategy to enhance value delivery to our shareholders and maintain a strong commitment to safety, gas capture and emissions reduction,” he added in the statement.
“I want to thank all of our talented employees for their dedication to operating safely and with integrity as we integrate our two companies,” Brown went on to say.
In addition to Brown, who was previously the Oasis CEO, Chord’s executive leadership team includes Chip Rimer, who is the company’s executive vice president and chief operating officer and was previously Whiting’s COO, Michael Lou, who is Chord’s executive vice president and chief financial officer and was previously Oasis’ CFO, and Scott Regan, Chord’s executive vice president, general counsel and secretary and previously Whiting’ GC.
Chord’s 10-member board of directors has equal representation from Whiting and Oasis and was selected to ensure that the company has the right mix of skills, experience and perspectives to provide strong corporate governance, Chord outlines on its website.
On March 7, Whiting and Oasis announced that they had entered into an agreement to combine in a “merger of equals” transaction. In a joint statement at the time, the companies noted that the combined company would have an enterprise value of around $6 billion based on the exchange ratio and the closing share prices for Whiting and Oasis as of March 4, 2022.
While headquartered in Houston, Texas, Chord also has several offices in North Dakota and one office in Colorado, according to its site.
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