Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| This transaction represents a unique opportunity to drive meaningful cost and operational synergies, an 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 |
| 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 company’s premier asset bases, operational abilities and technical acumen will drive further success and create a stronger, larger company positioned to deliver competitive returns and peer-leading shareholder distributions |
| 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 |
| I think as we look at the Appalachian position, it represents about, it's a great, it's in a great spot in the basin – core position in the basin with a good operator |
| 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 |
| We are excited about the opportunities our combination creates for our shareholders, our people and all of our other stakeholders |
| Both organizations have done an incredible job, and we can learn from each other and get better though |
| I think the strong pro forma balance sheet we got – we have is going to give us a lot of flexibility, and that could give us flexibility from a return on capital standpoint to weather resiliency with commodity price fluctuations or to pursue different growth opportunities |
| I believe the value-enhancing opportunities from this combination are compelling |
| Both Chord and Enerplus have talented, hardworking people that have accomplished a tremendous amount, for which they should be extremely proud |
| Additionally, both Chord and Enerplus have a tremendous track record of being responsible corporate citizens and respecting all of our stakeholders |
| 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 |
| 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, we'll be able to commit more time and resources to reducing our environmental footprint and focusing on local communities |
| We're confident the combination is the right move and will result in significant value creation for both of our respective shareholders |
| The combined footprint is remarkable |
| 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 |
| Our combined position represents approximately 10 years of low-cost development at the current pace with significant upside beyond that |
| 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 |
| 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 |
| On the cleanout side, we've made strong progress over the course of the year and reached TD in essentially all 30-plus 3-mile wells brought online in the second half |
| And that's worked well for us over time |
| So accretion is obviously important to shareholder returns, and as we discussed earlier, the outlook is strong on that front |
| We see meaningful opportunity to increase this percentage in Enerplus’ high-quality acreage, which supports better economics and more free cash flow |
| If successful, these initiatives should further improve returns |
| And Enerplus’ core inventory is a strong complement to Chord’s position |
| The combined oil cut is high at 56% and positions us well, given the current commodity backdrop |
| But certainly, other people in other basins have consolidated way more than where the Bakken is, and so we think there's still continued opportunities, and we're just in a good position overall |
| The combined company expects to benefit from administrative, capital and operating synergies of up to $150 million per year |
| Statement |
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| 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 |
| So your per job cost goes down on two fronts |
| Those risks include, among others, matters that we have described in our joint press release announcing the transaction and Chord's earnings releases as well as in our filings with the Securities and Exchange Commission |
| And so unfortunately, they don't move really quickly |
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