Chord Energy Corp PREM14A, filed Mar 27, 2024

Chord Energy Corp (CHRD)

PREM14A 2024-03-27 For: 2024-03-27

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Added on October 19, 2026

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CERTAIN DEFINED TERMS			1
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS			4
QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING			6
SUMMARY			16
The Parties to the Arrangement			16
Special Meeting of Chord Stockholders			16
The Arrangement			18
Chord’s Reasons for the Arrangement			23
Recommendation of the Chord Board of Directors			24
Opinion of Financial Advisor to Chord			24
Board of Directors Following the Arrangement			24
Management Following the Arrangement			25
Interests of Chord Directors and Executive Officers in the Arrangement			25
Accounting Treatment			25
Court Approvals			25
Regulatory Approvals			26
No Appraisal Rights			26
Who Can Answer Your Questions About Voting Your Shares			27
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS			28
RISK FACTORS			43
Risk Factors Relating to the Arrangement			43
Risk Factors Relating to the Combined Company Following the Arrangement			49
Other Risk Factors Relating to Chord and Enerplus			54
THE SPECIAL MEETING			55
General			55
Date, Time and Place of the Special Meeting			55
Purpose of the Special Meeting			55
Board Recommendation			55
Record Date; Outstanding Shares; Shares Entitled to Vote			55
Quorum			56
Beneficial Ownership of Securities			56
Required Vote			58
Voting by Proxy			58
How to Vote			58
Revoking Your Proxy			59
Adjournments and Postponements			59
Householding			59
Solicitation of Proxies			60
Other Business			60
Assistance in Completing the Proxy Card			60
THE ARRANGEMENT			60
Structure of the Arrangement			60
Background of the Arrangement			61
Chord’s Reasons for the Arrangement			68
Recommendation of the Chord Board of Directors			71
Opinion of Financial Advisor to Chord			72
Certain Unaudited Prospective Financial and Operating Information			81
Board of Directors Following the Arrangement			85
Management Following the Arrangement			85
Interests of Chord Directors and Executive Officers in the Arrangement			85


Accounting Treatment			86
Federal Securities Laws Consequences; Stock Transfer Restrictions			86
Court Approvals			87
Regulatory Approvals			87
NYSE and TSX Delisting			89
Fees, Costs and Expenses			89
NO APPRAISAL RIGHTS			89
INFORMATION ABOUT THE PARTIES TO THE ARRANGEMENT			90
Chord			90
Canadian Sub			90
Enerplus			90
THE ARRANGEMENT AGREEMENT AND THE PLAN OF ARRANGEMENT			91
The Arrangement			91
Consideration Received Pursuant to the Arrangement			91
Dissent Rights of Enerplus Shareholders			94
Deposit of Consideration			95
Efforts to Obtain Required Enerplus Shareholder Approval			95
Efforts to Obtain Required Chord Stockholder Approval			96
Final Court Approval			96
Corporate Governance			96
Representations and Warranties			96
Covenants			98
Conditions to Completion of the Arrangement			114
Termination of the Arrangement Agreement			116
Amendments, Waivers, Governing Law			118
PROPOSAL NO. 1 – THE STOCK ISSUANCE PROPOSAL			119
PROPOSAL NO. 2 – THE CHARTER AMENDMENT PROPOSAL			120
PROPOSAL NO. 3 – THE ADJOURNMENT PROPOSAL			122
OTHER MATTERS			123
Other Matters For Action at the Special Meeting			123
WHERE YOU CAN FIND MORE INFORMATION			123
Where Stockholders Can Find More Information About Chord			123
Where Stockholders Can Find More Information About Enerplus			124

ANNEX A: Arrangement Agreement			A-1
ANNEX B: Charter Amendment			B-1
ANNEX C: Opinion of Citigroup Global Markets Inc.			C-1


	As Reported			Enerplus As Adjusted – Note 2			Transaction Accounting Adjustments – Note 3			Pro Forma Combined Chord
ASSETS
Current assets
Cash and cash equivalents	$	317,998		$	66,731		$	(540,329	) (a)	$	—
								155,600	(b)
Accounts receivable, net		943,114			268,433			1,074	(c)		1,212,621
Inventory		72,565			4,442			—			77,007
Prepaid expenses		42,450			15,175			(8,784	) (c)		48,841
Derivative instruments		37,369			3,161			—			40,530
Other current assets		11,055			25,342			—			36,397

Total current assets		1,424,551			383,284			(392,439	)		1,415,396
Property, plant and equipment
Oil and gas properties (successful efforts method)		6,320,243			7,758,278			(3,457,364	) (a)		10,621,157
								—	(c)
Other property and equipment		49,051			102,131			(92,585	) (a)		58,597
Less: accumulated depreciation, depletion and amortization		(1,054,616	)		(6,339,181	)		6,339,181	(a)		(1,054,616	)

Total property, plant and equipment, net		5,314,678			1,521,228			2,789,232			9,625,138

Derivative instruments		22,526			—			—			22,526
Investment in unconsolidated affiliate		100,172			—			—			100,172
Long-term inventory		22,936			5,257			—			28,193
Operating right-of-use assets		21,343			24,996			—			46,339
Deferred tax assets		—			133,023			(133,023	) (d)		—
Goodwill		—			—			793,586	(a)		793,586
Other assets		19,944			688			—			20,632

Total assets	$	6,926,150		$	2,068,476		$	3,057,356		$	12,051,982

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	34,453		$	27,724		$	—		$	62,177
Revenues and production taxes payable		604,704			210,152			—			814,856
Accrued liabilities		493,381			147,794			18,334	(a)		717,114
								40,000	(e)
								13,105	(f)
								4,500	(g)
Current portion of long-term debt		—			80,600			—			80,600
Accrued interest payable		2,157			—			—			2,157
Derivative instruments		14,209			—			—			14,209
Advances from joint interest partners		2,381			—			—			2,381
Current operating lease liabilities		13,258			12,087			—			25,345
Other current liabilities		916			—			—			916

Total current liabilities		1,165,459			478,357			75,939			1,719,755

Long-term debt		395,902			105,429			(70,629	) (a)		586,302
								155,600	(b)
Deferred tax liabilities		95,322			117,556			820,261	(d)		1,033,139
Asset retirement obligations		155,040			125,452			(32,434	) (a)		248,058
Derivative instruments		717			—			—			717
Operating lease liabilities		18,667			14,333			—			33,000
Other liabilities		18,419			—			—			18,419

Total liabilities		1,849,526			841,127			948,737			3,639,390

Commitments and contingencies
Stockholders’ equity
Common stock		456			2,692,053			(2,691,846	) (a)		663
Treasury stock		(493,289	)		—			—			(493,289	)
Additional paid-in capital		3,608,819			44,499			3,348,867	(a)		7,002,185
Retained earnings		1,960,638			(1,207,862	)		1,207,862	(a)		1,903,033
								(40,000	) (e)
								(13,105	) (f)
								(4,500	) (g)
Accumulated other comprehensive loss		—			(301,341	)		301,341	(a)		—

Total stockholders’ equity		5,076,624			1,227,349			2,108,619			8,412,592

Total liabilities and stockholders’ equity	$	6,926,150		$	2,068,476		$	3,057,356		$	12,051,982


	As Reported			Enerplus As Adjusted – Note 2			Transaction Accounting Adjustments – Note 3			Pro Forma Combined Chord
Revenues
Oil, NGL and gas revenues	$	3,132,411		$	1,663,016		$	—		$	4,795,427
Purchased oil and gas sales		764,230			—			—			764,230

Total revenues		3,896,641			1,663,016			—			5,559,657
Operating expenses
Lease operating expenses		658,938			272,747			—			931,685
Gathering, processing and transportation expenses		180,219			262,506			—			442,725
Purchased oil and gas expenses		761,325			—			—			761,325
Production taxes		260,002			135,131			—			395,133
Depreciation, depletion and amortization		598,562			377,495			274,631	(a)		1,250,688
General and administrative expenses		126,319			65,664			23,342	(b)		272,930
								40,000	(c)
								13,105	(d)
								4,500	(e)
Exploration and impairment		35,330			—			—			35,330

Total operating expenses		2,620,695			1,113,543			355,578			4,089,816
Gain (loss) on sale of assets, net		(2,764	)		—			—			(2,764	)

Operating income		1,273,182			549,473			(355,578	)		1,467,077
Other income (expense)
Net gain on derivative instruments		63,182			31,317			—			94,499
Net gain from investment in unconsolidated affiliate		21,330			—			—			21,330
Interest expense, net of capitalized interest		(28,630	)		(15,120	)		(2,039	) (f)		(45,789	)
Other income		9,964			1,760			—			11,724

Total other income (expense), net		65,846			17,957			(2,039	)		81,764

Income from continuing operations		1,339,028			567,430			(357,617	)		1,548,841
Income tax (expense)		(315,249	)		(111,354	)		85,828	(g)		(340,775	)

Net income from continuing operations	$	1,023,779		$	456,076		$	(271,789	)	$	1,208,066

Earnings from continuing operations per share:
Basic	$	24.59								$	19.43	(h)
Diluted	$	23.51								$	18.85	(h)
Weighted average shares outstanding:
Basic		41,490			—			—			62,170	(h)
Diluted		43,398			—			—			64,078	(h)


		As of December 31, 2023 (In thousands)
Enerplus Caption	Chord Caption	Enerplus Historical			Reclassification Adjustments			Ref.	Enerplus As Adjusted
Current Assets
Cash and cash equivalents	Cash and cash equivalents	$	66,731		$	—			$	66,731
Accounts receivable, net of allowance for doubtful accounts	Accounts receivable, net		268,433			—				268,433
	Inventory		—			4,442		(i)		4,442
	Prepaid expenses		—			15,175		(i)		15,175
Derivative financial assets	Derivative instruments (current asset)		3,161			—				3,161
Other current assets	Other current assets		44,959			(19,617	)	(i)		25,342

Total current assets			383,284			—				383,284

Property and equipment:
Crude oil and natural gas properties (full cost method)	Oil and gas properties (successful efforts method)		1,511,682			6,246,596		(ii)		7,758,278
Other capital assets	Other property and equipment		9,546			92,585		(iii)		102,131

Total property and equipment			1,521,228			6,339,181				7,860,409
	Less: accumulated depreciation, depletion and amortization		—			(6,339,181	)	(ii) (iii)		(6,339,181	)

Total property and equipment, net			1,521,228			—				1,521,228
	Derivative instruments		—			—				—
	Investment in unconsolidated affiliate		—			—				—
	Long-term inventory		—			5,257		(iv)		5,257
Right-of-use assets	Operating right-of-use assets		24,996			—				24,996
Deferred income tax asset	Deferred tax assets		133,023			—				133,023
Other long-term assets	Other assets		5,945			(5,257	)	(iv)		688

Total assets		$	2,068,476		$	—			$	2,068,476

Current liabilities
Accounts payable	Accounts payable	$	385,670		$	(357,946	)	(v)	$	27,724
	Revenues and production taxes payable		—			210,152		(v)		210,152
	Accrued liabilities		—			147,794		(v)		147,794
	Accrued interest payable		—			—				—
Derivative financial liabilities	Derivative instruments (current liability)		—			—				—
	Advances from joint interest partners		—			—				—
Current portion of lease liabilities	Current operating lease liabilities		12,087			—				12,087
Current portion of long-term debt	Other current liabilities		80,600			—				80,600

Total current liabilities			478,357			—				478,357

Long-term debt	Long-term debt		105,429			—				105,429
Deferred income tax liability	Deferred tax liabilities		117,556			—				117,556
Asset retirement obligation	Asset retirement obligations		125,452			—				125,452
	Derivative instruments (long-term liability)		—			—				—
Lease liabilities	Operating lease liabilities		14,333			—				14,333
	Other liabilities		—			—				—

Total liabilities			841,127			—				841,127

Equity
Share capital	Common stock		2,692,053			—				2,692,053
	Treasury stock		—			—				—
Paid-in capital	Additional paid-in capital		44,499			—				44,499
Accumulated deficit	Retained earnings		(1,207,862	)		—				(1,207,862	)
Accumulated other comprehensive loss	Accumulated other comprehensive loss		(301,341	)		—				(301,341	)

Total equity			1,227,349			—				1,227,349

Total liabilities and equity		$	2,068,476		$	—			$	2,068,476


		Year Ended December 31, 2023 (In thousands)
Enerplus Caption	Chord Caption	Enerplus Historical			Reclassification Adjustments			Ref.	Enerplus As Adjusted
Revenues
Crude oil and natural gas sales	Oil, NGL and gas revenues	$	1,663,016		$	—			$	1,663,016
	Purchased oil and gas sales		—			—				—
Commodity derivative instruments gain/(loss)	Other services revenues		31,317			(31,317	)	(i)		—

	Total operating revenues		1,694,333			(31,317	)			1,663,016

Expenses
Operating	Lease operating expenses		389,677			(116,930	)	(ii)		272,747
Transportation	Gathering, processing and transportation expenses		145,576			116,930		(ii)		262,506
	Purchased oil and gas expenses		—			—				—
Production taxes	Production taxes		135,131			—				135,131
General and administrative	General and administrative expenses		65,664			—				65,664
Depletion, depreciation, accretion, and impairment	Depreciation, depletion and amortization		377,495			—				377,495
Interest			17,597			(17,597	)	(iii)		—
Foreign exchange (gain)/loss			60			(60	)	(iv)		—
Transaction costs and other expense/(income)			(4,297	)		4,297		(v)		—
	Exploration and impairment		—			—				—

	Total operating expenses		1,126,903			(13,360	)			1,113,543

	Gain on sale of assets, net		—			—				—

	Operating income		567,430			(17,957	)			549,473

	Net gain (loss) on derivative instruments		—			31,317		(i)		31,317
	Net gain from investment in unconsolidated affiliate		—			—				—
	Interest expense, net of capitalized interest		—			(15,120	)	(iii) (v)		(15,120	)
	Other income (expense)		—			1,760		(iv) (v)		1,760

	Total other income (expense), net		—			17,957				17,957

Income/(Loss) Before Taxes	Income from continuing operations		567,430			—				567,430
Income tax expense (benefit)
Current income tax expense/(recovery)	Income tax (expense) benefit		27,183			84,171		(vi) (vii)		(111,354	)
Deferred income tax expense/(recovery)			84,171			(84,171	)	(vi)		—

	Total income tax expense (benefit)		111,354			—				(111,354	)

Net Income/(Loss)	Net income attributable to Chord	$	456,076		$	—			$	456,076


	Enerplus Shares Outstanding⁽¹⁾		Exchange Ratio			Chord Converted Shares		Per Share Price⁽²⁾		Purchase Price Consideration
Legacy Enerplus common shares issued and outstanding		204,246		x 0.10125	=		20,680	$	164.10	$	3,393,573
Plus: Cash consideration per eligible share of legacy Enerplus common shares issued and outstanding		204,246							1.84		375,813
Plus: Cash consideration to settle legacy Enerplus awards											92,775
Plus: Cash consideration to payoff legacy Enerplus debt contemporaneously with close											65,741
Plus: Cash consideration to pay a retention bonus to legacy Enerplus employees											6,000

Preliminary arrangement consideration										$	3,933,902


	Preliminary Purchase Price Allocation
Assets Acquired
Cash and cash equivalents	$	66,731
Accounts receivable, net		269,507
Inventory		4,442
Prepaid expenses		6,391
Derivative instruments (current asset)		3,161
Other current assets		25,342
Oil and gas properties (successful efforts method)		4,300,914
Other property and equipment		9,546
Long-term inventory		5,257
Operating right-of-use assets		24,996
Other assets		688

Total assets acquired		4,716,975

Liabilities Assumed
Accounts payable		27,724
Revenues and production taxes payable		210,152
Accrued liabilities		166,128
Current portion of long-term debt		80,600
Current operating lease liabilities		12,087
Long-term debt		34,800
Deferred tax liabilities		937,817
Asset retirement obligations		93,018
Operating lease liabilities		14,333

Total liabilities assumed		1,576,659

Net Assets Acquired	$	3,140,316
Goodwill Acquired		793,586

Purchase price consideration	$	3,933,902


	Year Ended December 31, 2023 (In thousands)
Elimination of interest expense on Enerplus’ bank credit facilities	$	10,078
Incremental interest expense for amortization of remeasurement of legacy Enerplus’ senior notes		(3,237	)
Reduction of interest expense related to capitalized interest to align with Chord’s accounting policy		2,168
Incremental interest expense for borrowings on Chord’s revolving credit facility		(11,048	)

Net transaction accounting adjustments to interest expense	$	(2,039	)


	Year Ended December 31, 2023
	(In thousands, except per share data)
Pro forma net income	$	1,208,066
Basic shares:
Chord shares outstanding (weighted average per statement of operations)		41,490
Chord shares issued in exchange for legacy Enerplus shares as part of consideration transferred		20,680

Pro forma weighted average common shares outstanding, basic		62,170

Diluted shares:
Pro forma weighted average shares outstanding, basic		62,170
Dilutive effect of shares convertible from Chord share based awards		944
Dilutive effect of shares convertible from Chord in-the-money warrants		964

Pro forma weighted average common shares outstanding, diluted		64,078

Earnings attributable to Chord per share, basic	$	19.43
Earnings attributable to Chord per share, diluted	$	18.85
Anti-dilutive weighted average common shares:
Potential common shares		3,709


	Crude Oil (MBbl)
	Chord Historical			Enerplus Historical			Pro Forma Combined
Proved reserves
Net proved reserves at December 31, 2022		381,288			148,953			530,241
Revision of previous estimates		(38,073	)		(14,905	)		(52,978	)
Extensions, discoveries and other additions		53,207			28,551			81,758
Sales of reserves in place		(3,999	)		(952	)		(4,951	)
Purchase of reserves in place		12,375			—			12,375
Production		(36,427	)		(18,532	)		(54,959	)

Net proved reserves at December 31, 2023		368,371			143,115			511,486

Proved developed reserves:
December 31, 2022		272,529			80,809			353,338
December 31, 2023		241,362			69,755			311,117
Proved undeveloped reserves:
December 31, 2022		108,759			68,144			176,903
December 31, 2023		127,009			73,360			200,369


	Natural Gas (MMcf)
	Chord Historical			Enerplus Historical			Pro Forma Combined
Proved reserves
Net proved reserves at December 31, 2022		814,926			877,468			1,692,394
Revision of previous estimates		(33,308	)		(168,462	)		(201,770	)
Extensions, discoveries and other additions		62,273			40,173			102,446
Sales of reserves in place		(3,067	)		(1,079	)		(4,146	)
Purchase of reserves in place		20,060			—			20,060
Production		(82,953	)		(82,775	)		(165,728	)

Net proved reserves at December 31, 2023		777,931			665,325			1,443,256

Proved developed reserves:
December 31, 2022		689,651			624,988			1,314,639
December 31, 2023		640,180			519,714			1,159,894
Proved undeveloped reserves:
December 31, 2022		125,275			252,480			377,755
December 31, 2023		137,751			145,611			283,362


	NGLs (MBbl)
	Chord Historical			Enerplus Historical			Pro Forma Combined
Proved reserves
Net proved reserves at December 31, 2022		138,451			27,100			165,551
Revision of previous estimates		(5,270	)		675			(4,595	)
Extensions, discoveries and other additions		15,046			4,303			19,349
Sales of reserves in place		(53	)		(119	)		(172	)
Purchase of reserves in place		3,052			—			3,052
Production		(13,047	)		(4,170	)		(17,217	)

Net proved reserves at December 31, 2023		138,179			27,789			165,968

Proved developed reserves:
December 31, 2022		115,227			16,342			131,569
December 31, 2023		105,702			15,038			120,740
Proved undeveloped reserves:
December 31, 2022		23,224			10,758			33,982
December 31, 2023		32,477			12,751			45,228


	Total (MBoe)
	Chord Historical			Enerplus Historical			Pro Forma Combined
Proved reserves
Net proved reserves at December 31, 2022		655,560			322,298			977,858
Revision of previous estimates		(48,894	)		(42,307	)		(91,201	)
Extensions, discoveries and other additions		78,632			39,550			118,182
Sales of reserves in place		(4,563	)		(1,251	)		(5,814	)
Purchase of reserves in place		18,770			—			18,770
Production		(63,300	)		(36,498	)		(99,798	)

Net proved reserves at December 31, 2023		636,205			281,792			917,997

Proved developed reserves:
December 31, 2022		502,698			201,316			704,014
December 31, 2023		453,760			171,412			625,172
Proved undeveloped reserves:
December 31, 2022		152,862			120,982			273,844
December 31, 2023		182,445			110,380			292,825


	As of December 31, 2023 (In thousands)
	Chord Historical			Enerplus Historical			Pro Forma Combined
Future cash inflows	$	31,882,940		$	10,888,013		$	42,770,953
Future production costs		(13,815,882	)		(3,824,062	)		(17,639,944	)
Future development costs		(3,055,823	)		(1,803,944	)		(4,859,767	)
Future income tax expense		(2,573,017	)		(1,078,714	)		(3,651,731	)

Future net cash flows		12,438,218			4,181,293			16,619,511
10% annual discount for estimating timing of cash flows		(5,447,578	)		(1,308,753	)		(6,756,331	)

Standardized measure of discounted future net cash flows	$	6,990,640		$	2,872,540		$	9,863,180


	Year Ended December 31, 2023 (In thousands)
	Chord Historical			Enerplus Historical			Pro Forma Combined
January 1, 2023	$	11,494,475		$	5,529,264		$	17,023,739
Net changes in prices and production costs		(6,138,846	)		(4,590,215	)		(10,729,061	)
Net changes in future development costs		(92,072	)		(505,114	)		(597,186	)
Sales of crude oil and natural gas, net		(2,033,251	)		(992,632	)		(3,025,883	)
Extensions		864,249			879,358			1,743,607
Purchases of reserves in place		373,913			—			373,913
Sales of reserves in place		(75,097	)		(24,617	)		(99,714	)
Revisions of previous quantity estimates		(1,142,960	)		648,098			(494,862	)
Previously estimated development costs incurred		574,607			531,061			1,105,668
Accretion of discount		1,445,215			588,421			2,033,636
Net change in income taxes		1,419,851			808,916			2,228,767
Changes in timing and other		300,556			—			300,556

December 31, 2023	$	6,990,640		$	2,872,540		$	9,863,180


Name of Person or Identity of Group	Number of CHRD Shares		Percent of Class(1)			Number of CHRD Warrants		Percent of Class(2)
*5% Stockholders:*
BlackRock, Inc.(3)		5,376,624		12.94	%		—		—
The Vanguard Group, Inc.(4)		4,343,891		10.45	%		—		—
Fidelity Management & Research Company LLC(5)		3,646,278		8.78	%		—		—
Wellington Management Group LLP(6)		2,511,603		6.04	%		—		—
*Directors and Named Executive Officers:*
Douglas E. Brooks		24,110			*		3		*
Daniel E. Brown		150,079			*		—		—
Susan M. Cunningham		10,225			*		—		—
Samantha F. Holroyd		12,875			*		—		—
Paul J. Korus		11,573			*		—		—
Kevin S. McCarthy		15,702			*		—		—
Anne Taylor		8,485			*		—		—
Cynthia L. Walker		16,885			*		—		—
Marguerite N. Woung-Chapman		6,041			*		—		—
Darrin J. Henke		—		—			—		—
Shannon B. Kinney		—		—			—		—
Michael H. Lou		33,255			*		557		*
Richard N. Robuck		—		—			12		*
All directors and executive officers as a group (13 persons)		289,230			*		572		*


Implied Exchange Ratio Reference Ranges Based On:		Exchange Ratio
CY2024E Adjusted EBITDA	CY2024E Free Cash Flow
0.0684x – 0.1206x	0.0713x – 0.1105x	0.10125x


Announced	Acquiror	Target
January 2024	• APA Corporation	• Callon Petroleum Company
August 2023	• Permian Resources Corporation	• Earthstone Energy, Inc.
May 2023	• Chevron Corporation	• PDC Energy, Inc.
February 2023	• Baytex Energy Corp.	• Ranger Oil Corporation
March 2022	• Oasis Petroleum Inc.	• Whiting Petroleum Corporation
May 2021	• Cabot Oil & Gas Corporation	• Cimarex Energy Co.
May 2021	• Bonanza Creek Energy, Inc.	• Extraction Oil & Gas, Inc.
December 2020	• Diamondback Energy, Inc.	• QEP Resources, Inc.
October 2020	• Pioneer Natural Resources Company	• Parsley Energy, Inc.
September 2020	• Devon Energy Corporation	• WPX Energy, Inc.
October 2019	• Parsley Energy, Inc.	• Jagged Peak Energy Inc.
August 2019	• PDC Energy, Inc.	• SRC Energy, Inc.
July 2019	• Callon Petroleum Company	• Carrizo Oil & Gas, Inc.


Implied Exchange Ratio Reference Ranges Based On:				Exchange Ratio
NYMEX Commodity Pricing (Excluding Potential Net Synergies)	NYMEX Commodity Pricing (Including Potential Net Synergies)	Wall Street Commodity Pricing (Excluding Potential Net Synergies)	Wall Street Commodity Pricing (Including Potential Net Synergies)
0.0810x – 0.1206x	0.0950x – 0.1384x	0.0834x – 0.1225x	0.0951x – 0.1376x	0.10125x


	Commodity Prices
	2024E		2025E		2026E+
NYMEX Strip
WTI Oil ($/Bbl)	$	75.76	$	71.43	$	71.50
Henry Hub Gas ($/MMBtu)	$	2.33	$	3.42	$	3.76
Wall Street Consensus
WTI Oil ($/Bbl)	$	79.00	$	75.60	$	78.00
Henry Hub Gas ($/MMBtu)	$	3.00	$	3.70	$	4.00


	Enerplus Stand-Alone(1)
	2024E		2025E		2026E		2027E		2028E
	($ in millions, except production)
NYMEX Strip
Average Daily Production (MBoe/d)		100		103		110		114		114
Adjusted EBITDA(2)	$	970	$	1,047	$	1,148	$	1,187	$	1,168
Capital expenditures	$	534	$	614	$	614	$	710	$	415
Free cash flow(3)	$	382	$	337	$	396	$	347	$	571
Wall Street Consensus
Average Daily Production (MBoe/d)		100		103		110		114		117
Adjusted EBITDA(2)	$	1,084	$	1,152	$	1,303	$	1,347	$	1,379
Capital expenditures	$	536	$	614	$	614	$	709	$	653
Free cash flow(3)	$	469	$	409	$	509	$	463	$	536


	Chord Stand-Alone(1)
	2024E		2025E		2026E		2027E		2028E
	($ in millions, except production)
NYMEX Strip
Average Daily Production (MBoe/d)		170		176		181		177		174
Adjusted EBITDA(2)	$	1,938	$	1,949	$	2,092	$	2,033	$	2,010
Capital expenditures	$	989	$	963	$	1,055	$	1,066	$	1,184
Free cash flow(3)	$	822	$	815	$	820	$	717	$	596
Wall Street Consensus
Average Daily Production (MBoe/d)		170		176		181		177		175
Adjusted EBITDA(2)	$	2,101	$	2,125	$	2,363	$	2,301	$	2,278
Capital expenditures	$	989	$	963	$	1,056	$	1,065	$	1,184
Free cash flow(3)	$	945	$	952	$	1,028	$	925	$	803


			Page

Article 1 THE ARRANGEMENT				A-1

	Section 1.1	Arrangement		A-1
	Section 1.2	Treatment of Company Awards		A-2
	Section 1.3	Company Implementation Steps		A-4
	Section 1.4	Parent Implementation Steps		A-7
	Section 1.5	Certain Adjustments		A-8
	Section 1.6	Dissenting Shares		A-8
	Section 1.7	Closing		A-9
	Section 1.8	Directors of Parent		A-9
	Section 1.9	U.S. Securities Act Matters		A-9
	Section 1.10	Canadian Securities Laws Matters		A-10
	Section 1.11	Payment of Consideration		A-10
	Section 1.12	Withholding Rights		A-10

Article 2 REPRESENTATIONS AND WARRANTIES OF COMPANY				A-11

	Section 2.1	Organization, Standing and Power		A-11
	Section 2.2	Capital Structure		A-12
	Section 2.3	Authority; No Violations		A-13
	Section 2.4	Consents		A-14
	Section 2.5	Securities Documents; Financial Statements		A-14
	Section 2.6	Absence of Certain Changes or Events		A-15
	Section 2.7	No Undisclosed Material Liabilities		A-15
	Section 2.8	Company Circular		A-15
	Section 2.9	Company Permits; Compliance with Applicable Law		A-15
	Section 2.10	Compensation; Benefits		A-16
	Section 2.11	Employment and Labor Matters		A-18
	Section 2.12	Taxes		A-19
	Section 2.13	Litigation		A-20
	Section 2.14	Intellectual Property and IT Assets		A-20
	Section 2.15	Real Property		A-21
	Section 2.16	Rights-of-Way		A-22
	Section 2.17	Oil and Gas Matters		A-22
	Section 2.18	Environmental Matters		A-24
	Section 2.19	Material Contracts		A-25
	Section 2.20	Insurance		A-27
	Section 2.21	Derivative Transactions and Hedging		A-27
	Section 2.22	Cultural Business		A-27
	Section 2.23	Opinion of Company’s Financial Advisor		A-27
	Section 2.24	Brokers		A-27
	Section 2.25	Related Party Transactions		A-28
	Section 2.26	Regulatory Matters		A-28
	Section 2.27	Corrupt Practices Legislation		A-28
	Section 2.28	No Additional Representations		A-29

Article 3 REPRESENTATIONS AND WARRANTIES OF PARENT AND PARENT CANADIAN SUB				A-29

	Section 3.1	Organization, Standing and Power		A-29
	Section 3.2	Capital Structure		A-30
	Section 3.3	Authority; No Violations		A-31
	Section 3.4	Consents		A-32


	Section 3.5	SEC Documents; Financial Statements	A-32
	Section 3.6	Absence of Certain Changes or Events	A-33
	Section 3.7	No Undisclosed Material Liabilities	A-33
	Section 3.8	Parent Proxy Statement	A-33
	Section 3.9	Parent Permits; Compliance with Applicable Law	A-33
	Section 3.10	Compensation; Benefits	A-34
	Section 3.11	Employment and Labor Matters	A-35
	Section 3.12	Taxes	A-36
	Section 3.13	Intellectual Property and IT Assets	A-37
	Section 3.14	Litigation	A-38
	Section 3.15	Real Property	A-38
	Section 3.16	Rights-of-Way	A-38
	Section 3.17	Oil and Gas Matters	A-38
	Section 3.18	Environmental Matters	A-40
	Section 3.19	Insurance	A-41
	Section 3.20	Opinion of Parent Financial Advisor	A-41
	Section 3.21	Brokers	A-41
	Section 3.22	Business Conduct	A-41
	Section 3.23	Related Party Transactions	A-41
	Section 3.24	Regulatory Matters	A-42
	Section 3.25	Takeover Laws	A-42
	Section 3.26	Corrupt Practices Legislation	A-42
	Section 3.27	Funds Available	A-42
	Section 3.28	No Additional Representations	A-43

Article 4 CERTAIN COVENANTS			A-43

	Section 4.1	Conduct of Company Business Pending the Arrangement	A-43
	Section 4.2	Conduct of Parent Business Pending the Arrangement	A-48
	Section 4.3	No Solicitation; Adverse Recommendation Change	A-51
	Section 4.4	Preparation of Company Circular and Parent Proxy Statement	A-55
	Section 4.5	Mutual Covenants of the Parties Relating to the Transactions	A-57
	Section 4.6	Meetings	A-58
	Section 4.7	Access to Information	A-60
	Section 4.8	Consummation of the Arrangement; Additional Agreements	A-61
	Section 4.9	Employee Matters	A-63
	Section 4.10	Indemnification; Directors’ and Officers’ Insurance	A-67
	Section 4.11	Transaction Litigation	A-69
	Section 4.12	Public Announcements	A-69
	Section 4.13	Control of Business	A-69
	Section 4.14	Pre-Acquisition Reorganization	A-69
	Section 4.15	Dissolution of Enerplus NS	A-70
	Section 4.16	Filings	A-71
	Section 4.17	Transfer Taxes	A-71
	Section 4.18	Section 16 Matters	A-71
	Section 4.19	Registration Status, Stock Exchange Listing and Deregistration	A-71
	Section 4.20	Tax Matters	A-72
	Section 4.21	Obligations of Parent Canadian Sub and Parent	A-72
	Section 4.22	Repayment of Company Credit Facilities; Offers for Company Senior Notes; Consents under Parent Credit Facility	A-72
	Section 4.23	Derivative Contracts; Hedging Matters	A-73
	Section 4.24	Dividends	A-73
	Section 4.25	Parent Cash Available	A-74
	Section 4.26	Privacy Matters	A-74



Article 5 CONDITIONS			A-75

	Section 5.1	Conditions to Obligation of Each Party	A-75
	Section 5.2	Additional Conditions to Obligation of Parent and Parent Canadian Sub	A-76
	Section 5.3	Additional Conditions to Obligation of Company	A-76
	Section 5.4	Frustration of Conditions	A-77
	Section 5.5	Merger of Conditions	A-77

Article 6 TERMINATION			A-77

	Section 6.1	Termination	A-77
	Section 6.2	Effect of Termination	A-79
	Section 6.3	Termination Fees	A-79

Article 7 MISCELLANEOUS			A-81

	Section 7.1	Schedule Definitions	A-81
	Section 7.2	Non-Survival of Representations, Warranties and Agreements	A-81
	Section 7.3	Expenses	A-82
	Section 7.4	Notices	A-82
	Section 7.5	Entire Agreement; No Third Party Beneficiaries	A-83
	Section 7.6	Assignment; Binding Effect	A-83
	Section 7.7	Governing Law; Jurisdiction and Venue	A-83
	Section 7.8	Severability	A-83
	Section 7.9	Amendment	A-84
	Section 7.10	Waiver of Jury Trial	A-84
	Section 7.11	Interpretation	A-84
	Section 7.12	Counterparts	A-85
	Section 7.13	No Recourse	A-85
	Section 7.14	Specific Performance	A-85
	Section 7.15	Extension; Waiver	A-85
	Section 7.16	Definitions	A-85


Exhibit A	–	Arrangement Resolution
Exhibit B	–	Plan of Arrangement


Defined Term		Section
ABCA		Recitals
Acceptable Confidentiality Agreement		Section 7.16
Acquisition Proposal		Section 7.16
Additional Dividend		Section 1.5(b)(iii)
Affected Person		Section 1.12
Affiliates		Section 7.16
Aggregated Group		Section 7.16
Agreement		Preamble
Announcement FMV		Section 1.2(a)(i)
Applicable Date		Section 2.5(a)
Applicable Proxy Statement / Circular		Section 7.16
Applicable Securities Laws		Section 7.16
Arrangement		Section 7.16
Arrangement Resolution		Recitals
Articles of Arrangement		Section 7.16
Boe		Section 7.16
Broker		Section 1.12(a)
Business Day		Section 7.16
Canadian Securities Authorities		Section 7.16
Canadian Securities Laws		Section 7.16
Cash Consideration		Section 1.1(b)
Cause		Section 7.16
Closing		Section 7.16
Closing Date		Section 7.16
Closing FMV		Section 1.2(a)(i)
Code		Section 7.16
Commissioner		Section 7.16
Company		Preamble
Company 401(k) Plan		Section 4.9(j)
Company Acquisition Proposal		Section 7.16
Company Adverse Recommendation Change		Section 4.3(b)
Company Benefit Plan		Section 7.16
Company Board		Recitals
Company Board Recommendation		Section 2.3(a)
Company Capital Stock		Section 2.2(a)
Company Circular		Section 7.16
Company Common Shares		Recitals
Company Compensatory Award		Section 1.2(b)
Company Contracts		Section 2.19(b)
Company Credit Facilities		Section 7.16
Company Data Room		Section 7.16
Company Designees		Section 1.8(a)
Company Disclosure Letter		Article 2
Company Employee Termination Payment		Section 4.9(e)
Company Employment Agreements		Section 7.16
Company First Quarter Dividend		Section 4.24
Company Insurance Policies		Section 2.20
Company Intellectual Property		Section 2.14
Company Intervening Event		Section 7.16


Defined Term		Section
Company Issued Securities		Section 1.9(d)
Company Marketing Contract		Section 2.19(a)(ii)
Company Material Adverse Effect		Section 2.1
Company Material Leased Real Property		Section 2.15
Company Material Real Property Lease		Section 2.15
Company Meeting		Section 7.16
Company Notice		Section 4.3(b)
Company Notice of Change		Section 4.3(c)
Company Officers		Section 4.9(a)
Company Owned Real Property		Section 2.15
Company Permits		Section 2.9(a)
Company Preferred Stock		Section 2.2(a)
Company PSU Award		Section 1.2(b)
Company Related Party Transaction		Section 2.25
Company Requisite Shareholder Vote		Section 1.3(a)(ii)
Company Reserve Engineers		Section 7.16
Company Reserve Reports		Section 2.17(a)
Company RSU Award		Section 1.2(a)
Company Securities Documents		Section 2.5(a)
Company Senior Note Agreements		Section 7.16
Company Senior Notes		Section 7.16
Company Superior Proposal		Section 7.16
Company Termination Fee		Section 6.3(g)
Competition Act Approval		Section 7.16
Confidentiality Agreement		Section 4.7(b)
Consent		Section 7.16
Consideration		Section 1.1(b)
Continuing Employees		Section 4.9(b)
Contract		Section 7.16
Court		Recitals
Creditors’ Rights		Section 2.3
D&O Insurance		Section 4.10(d)
Data Security Requirements		Section 7.16
Depositary		Section 7.16
Derivative Transaction		Section 7.16
Director Award		Section 1.2(d)
Director DSU Award		Section 1.2(d)
Director DSU Plan		Section 7.16
Director RSU Award		Section 1.2(c)
Director RSU Plan		Section 7.16
Dissent Rights		Section 7.16
EDGAR		Section 7.16
Effective Date		Section 7.16
Effective Time		Section 7.16
Employee Benefit Plans		Section 7.16
Employment Laws		Section 2.11(e)
Encumbrances		Section 7.16
Enerplus US		Section 7.16
Environmental Laws		Section 7.16
ERISA		Section 7.16
ERISA Affiliate		Section 7.16


Defined Term		Section
Evercore		Section 2.23
Exchange Act		Section 7.16
Exchanges		Section 7.16
Final Order		Section 7.16
GAAP		Section 2.5(b)
Good Reason		Section 7.16
Governmental Entity		Section 7.16
Hazardous Materials		Section 7.16
HSR Act		Section 7.16
HSR Clearance		Section 7.16
Hydrocarbons		Section 7.16
ICA Approval		Section 7.16
Indebtedness		Section 7.16
Indemnified Liabilities		Section 4.10(a)
Indemnified Persons		Section 4.10(a)
Intellectual Property		Section 7.16
Interim Order		Section 7.16
Investment Canada Act		Section 7.16
IT Assets		Section 7.16
knowledge		Section 7.16
Labor Agreement		Section 7.16
Law		Section 7.16
Legacy Parent Warrants		Section 7.16
Liens		Section 7.16
Material Adverse Effect		Section 7.16
Measurement Date		Section 2.2(a)
MI 61-101		Section 1.3(a)(ii)(B)
Minister		Section 7.16
Money Laundering Laws		Section 2.27(b)
Multiemployer Plan		Section 7.16
NASDAQ		Section 7.16
Named Executive Officer		Section 1.2(a)(i)
National Security Approval		Section 7.16
Net Benefit Approval		Section 7.16
New Hire		Section 4.9(e)(i)
No-Action Letter		Section 7.16
Non-Continuing Employee		Section 4.9(b)
NYSE		Section 7.16
OFAC		Section 2.27(c)
Oil and Gas Contracts		Section 7.16
Oil and Gas Interests		Section 7.16
Oil and Gas Leases		Section 7.16
Oil and Gas Properties		Section 7.16
Order		Section 7.16
Organizational Documents		Section 7.16
Parent		Preamble
Parent 401(k) Plan		Section 4.9(j)
Parent Acquisition Proposal		Section 7.16
Parent Adverse Recommendation Change		Section 4.3(e)
Parent Benefit Plan		Section 7.16
Parent Board		Recitals


Defined Term		Section
Parent Board Recommendation		Section 3.3(a)
Parent Canadian Sub		Preamble
Parent Canadian Sub Board		Recitals
Parent Capital Stock		Section 3.2(a)
Parent Chapter 11 Plan		Section 7.16
Parent Common Stock		Recitals
Parent Credit Facility		Section 7.16
Parent Data Room		Section 7.16
Parent Designees		Section 1.8(a)
Parent Disclosure Letter		Article 3
Parent Equity Plan		Section 3.2(b)
Parent First Quarter Dividend		Section 4.24
Parent Insurance Policies		Section 3.19
Parent Intervening Event		Section 7.16
Parent Issued Securities		Section 1.3(a)(xiii)
Parent LSU Awards		Section 7.16
Parent Material Adverse Effect		Section 7.16
Parent Material Leased Real Property		Section 3.15
Parent Material Real Property Lease		Section 3.15
Parent Meeting		Section 7.16
Parent Notice		Section 4.3(e)
Parent Notice of Change		Section 4.3(f)
Parent Owned Real Property		Section 3.15
Parent Permits		Section 3.9(a)
Parent Preferred Stock		Section 3.2(a)
Parent Proxy Statement		Section 7.16
Parent PSU Awards		Section 7.16
Parent Reserve Reports		Section 3.15
Parent Reserves Engineers		Section 7.16
Parent RSU Awards		Section 7.16
Parent SEC Documents		Section 3.5(a)
Parent Stockholder Approval		Section 7.16
Parent Superior Proposal		Section 7.16
Parent Termination Fee		Section 6.3(g)
Parent Warrant Agreements		Section 7.16
Party or Parties		Section 7.16
Permitted Encumbrance		Section 7.16
Permitted Company Acquisitions		Section 4.1(b)(iv)
Permitted Parent Acquisitions		Section 4.2(b)(ii)
Person		Section 7.16
Personal Information		Section 7.16
Plan of Arrangement		Recitals
Post-Closing Plans		Section 4.9(h)
Proceeding		Section 7.16
Production Burden		Section 7.16
Registrar		Section 7.16
Regulatory Approvals		Section 7.16
Regulatory Law		Section 7.16
Release		Section 7.16
Remedy Action		Section 4.8(g)
Representatives		Section 7.16


CHORD ENERGY CORPORATION

By:		/s/ Daniel E. Brown
Name:		Daniel E. Brown
Title:		President and Chief Executive Officer

SPARK ACQUISITION ULC

By:		/s/ Daniel E. Brown
Name:		Daniel E. Brown
Title:		Director


ENERPLUS CORPORATION

By:		/s/ Ian C. Dundas
Name:		Ian C. Dundas
Title:		President & Chief Executive Officer


CHORD ENERGY CORPORATION 1001 FANNIN STREET, SUITE 1500 HOUSTON, TX 77002		VOTE BY INTERNET Before the Meeting - Go to www.proxyvote.com or scan the QR Barcode above Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 PM Eastern Time on [_____], 2024. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

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		VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 PM Eastern Time on [_____], 2024. Have your proxy card in hand when you call and then follow the instructions.

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