Chord Energy (US:CHRD)2021-08-04 15:37Strategic Transformation & Financial Performance - Oasis is transforming into a dominant Williston Basin pure play, increasing asset size and scale[6] - The company exited the Permian Basin and is focused on the Williston Basin[8, 17] - Oasis has a best-in-class balance sheet with pro forma leverage of approximately 0.5x as of June 30, 2021[4, 11, 16] - The company is focused on generating free cash flow (FCF) and delivering competitive shareholder returns[6, 7] - Oasis estimates 2021 FCF of approximately $330 million and anticipates a reinvestment rate below 50%[13, 28] Capital Allocation & Shareholder Returns - A $400 per share special dividend was declared and paid in July[11, 15] - The company plans to increase the fixed dividend by 33% to $050 per share ($200 annualized) post-acquisition[11, 15, 28] - A $100 million share repurchase plan was instituted, with $146 million completed (191k shares)[11, 15] Operational Efficiency & Sustainability - The company is optimizing costs and efficiency, with over $30 million of estimated E&P savings compared to the original estimate of $20 to $25 million[17] - Oasis is committed to environmental, social, and governance (ESG) initiatives, including reducing flaring by over 50% less than peer average in North Dakota[6, 17, 25] Williston Basin Acquisition - The Williston acquisition adds scale at a compelling valuation of approximately $28k/Boepd (2 stream) or ~$26k/Boepd (3 stream)[11] - The acquisition is expected to generate over $550 million through 2024 at strip prices[19] - The company added 40+ Williston locations with an average IRR of approximately 100%[19] Midstream Strategy - Midstream simplification and OMP unit sell-down delivered $319 million of cash to Oasis[11] - Oasis owns approximately 696% of OMP LP Units[66]