Executive Summary

Q2 2022 marked the formal combination of Whiting and Oasis to create Chord Energy; management announced a peer-leading return-of-capital framework, immediately lifting the base dividend to $1.25 per share and authorizing a new $300MM buyback, with $125MM repurchased in July at $106.25 per share .
Operationally, pro forma volumes were 158.6 Mboe/d (three‑stream) at the high end of the pre-announced range; LOE was $10.06/boe, CapEx $172.7MM, and pro forma free cash flow exceeded $300MM in Q2 .
Q2 costs were pressured by severe North Dakota weather (late April) and inflation; Chord raised full-year CapEx guidance to $730–$760MM (from $655–$695MM) and expects per-unit LOE to decline in 2H with less downtime and efficiency gains from scale (e.g., dual-fuel frac fleet) .
Liquidity remained strong post-close: $0 drawn on the $2.0B borrowing base (elected commitments $800MM) and ~$96MM cash as of July 31; production taxes stepped up given WTI >$95 for three consecutive months, with Q3 guidance 7.7–8.1% .

What Went Well and What Went Wrong

What Went Well

Integration and synergies: Management identified over $100MM per year of merger synergies across operations (workovers, drilling/completions, facilities), targeting improved uptime, lower costs, and ESG benefits (dual-fuel frac, modular facilities) .
Capital returns: Immediate increase of base dividend to $1.25/quarter and a new $300MM buyback authorization; ~$125MM repurchased in July (~2.7% of market cap) .
Operations outperformed post-storm: Volumes exceeded expectations; realizations were strong; per-unit costs better than expected; pro forma FCF >$300MM in Q2 .

What Went Wrong

Weather and inflation headwinds: Severe late‑April storms in North Dakota disrupted power, increased downtime and workovers, lifting LOE to $10.06/boe; inflation drove higher service pricing and shifted activity later in the year, necessitating a raise in 2022 CapEx guidance to $730–$760MM .
Production taxes increased: North Dakota oil tax thresholds triggered higher production taxes (~7.4% in Q2, with Q3 guidance 7.7–8.1%) due to WTI averaging above $95/bbl for three consecutive months .
Oil differentials volatility (prior quarter): Q1 oil differentials were wider than expected due to prior-period revenue adjustments near the Missouri River, highlighting continued basin-specific pricing dynamics .

Financial Results

Note: Q4 2021 and Q1 2022 reflect Whiting standalone; Q2 2022 reflects pro forma Chord Energy (three‑stream). Periods ordered oldest → newest.

Metric	Q4 2021	Q1 2022	Q2 2022
Revenue ($MM)	$473.4	$526.9	N/A (not disclosed in available documents)
Net Income ($MM)	$292.2	$(37.4)	N/A
Diluted EPS ($)	$7.34	$(0.95)	N/A
Adjusted Net Income ($MM)	$168.5	$184.7	N/A
Adjusted EBITDAX ($MM)	$226.4	$248.5	N/A
Cash from Operations ($MM)	$213.9	$208.6	N/A
Adjusted Free Cash Flow ($MM)	$156.3	$150.4	>$300.0 (pro forma)
Total Volumes (Mboe/d)	92.8	89.0	158.6 (pro forma)
LOE ($/boe)	$7.31	$9.05	$10.06
Cash G&A ($MM)	$15.3	$19.0	$32.6 ($23.6 ex. $9 merger costs)
CapEx ($MM)	$66	$91	$172.7

KPIs (Q2 2022 pro forma):

Production taxes ~7.4% of oil & gas revenue; Cash EPT $2.81/boe .
Liquidity: $0 drawn on revolver ($2.0B borrowing base; $800MM elected commitments), ~$96MM cash (as of July 31) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
CapEx ($MM)	FY 2022	$655–$695	$730–$760	Raised
Base Dividend ($/share/quarter)	Ongoing	$0.585	$1.25	Raised
Share Repurchase Authorization ($MM)	Ongoing	$150	$300 (plus $125 repurchased in July)	Raised
Pro Forma Total Volumes (Mboe/d)	Q2 2022	156.4–158.8	Actual 158.6	In line/high-end
LOE ($/boe)	Q2 2022	$9.85–$10.10	Actual $10.06	In line
Production Taxes (%)	Q3 2022	7.1–7.4 (Q2 prelim)	7.7–8.1 (Q3 guide)	Raised (price-triggered)
Reporting Basis (Oasis)	Q3 2022 onwards	2‑stream; 9% uplift assumption	3‑stream; uplift increased to 18%	Methodology change

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2021, Q1 2022)	Current Period (Q2 2022)	Trend
Merger/Integration	Merger announced Mar 7 (Q1 update); debt free at YE 2021	Merger closed July 1; identified >$100MM/yr synergies; leadership set	Positive execution and synergy uplift
Return of Capital	Initial fixed dividend instituted; capital return strategy evolving	Base dividend increased to $1.25; 75%+ FCF payout below 0.5x leverage; $300MM buyback; $125MM repurchased	Materially more shareholder-friendly
Operations & Uptime	Q1 production impacted by ethane recovery; LOE inflation	Storm-driven downtime in Q2 but faster recovery; higher volumes and better per-unit costs than expected	Resilient operations, faster recovery
Cost Inflation & CapEx	Inflation pressures emerging	FY22 CapEx raised to $730–$760 due to pricing and timing; efficiencies from scale (dual-fuel frac)	Higher costs offset by scale efficiencies
ESG & Technology	N/A	Dual-fuel frac fleet; modular facilities; emissions/safety improvements	ESG-positive operational changes
Taxes/Regulatory	N/A	ND oil tax rate increase triggered by WTI >$95	Higher tax take given price environment

Management Commentary

“We have now identified over $100 million per year of merger synergies… shortening well downtime… reducing drilling days… optimizing facility design…” .
“We expect to pay out 75% or more of free cash flow when projected normalized leverage is below 0.5x EBITDA… increasing the base dividend immediately to $1.25 per share per quarter…” .
“Severe winter weather hit North Dakota… however, actual performance during the quarter was stronger than originally expected… volumes exceeded expectations… capital was below expectations (timing)” .

Q&A Highlights

Synergies detail: Completion designs expected to reduce sand ingress and downtime; modular facilities cut labor ~50% and site size ~30%; ESG improvements via batteries and CNG dual‑fuel fleets .
Inventory depth and lateral strategy: ~10 years of inventory; shift from 2‑mile to 3‑mile laterals improves capital efficiency while maintaining lateral footage delivery .
M&A posture and leverage: Open to accretive consolidation even if leverage temporarily >0.5x or >1.0x; would prioritize rapid deleveraging post-deal .
Development cadence: Maintenance to maintenance‑plus program; three rigs with similar annual lateral footage as prior year; production seasonality around completion schedules .
Midstream coordination and ESG: Development plans balanced by takeaway; emphasis on capturing every molecule and aligning with third‑party providers .

Estimates Context

Wall Street consensus (S&P Global/Capital IQ) for Q2 2022 EPS and revenue could not be retrieved for WLLAW/CHRD in this session; as a result, explicit beat/miss vs consensus is not available. Values would normally be retrieved from S&P Global; consensus data unavailable at this time.
Management noted Q2 results were generally in line with ranges pre‑announced on July 1, with volumes at the high-end and better‑than‑expected per‑unit costs and realizations, suggesting a constructive setup for 2H 2022 .

Key Takeaways for Investors

Capital return step-change: Immediate dividend lift and sizable buyback authorization position the equity for yield and buyback support; payout policy (75%+ of FCF below 0.5x leverage) is a clear catalyst for capital return trajectory .
Integration delivering tangible value: >$100MM/year synergies plus operational best practices should reduce downtime and costs, underpinning sustainable FCF despite inflationary service pricing .
Near-term cost optics vs medium-term efficiency: FY22 CapEx raised to $730–$760MM on pricing/timing, but scale and technology (dual-fuel frac, modular facilities) support margin resilience into 2H/2023 .
Strong balance sheet optionality: $0 drawn, ~$96MM cash, upgraded ratings afford opportunistic M&A while maintaining dynamic capital return and deleveraging capacity .
Operational cadence: Expect production seasonality tied to completion schedules; volumes exceeded expectations post‑storm with LOE likely to decline in 2H as downtime normalizes .
Basin tax sensitivity: Elevated ND production taxes tied to WTI price triggers modestly weigh on netbacks; monitor WTI averages for tax resets .
Pre-merger trend context: Whiting’s Q1 revenue rose to $526.9MM (despite GAAP net loss from hedge impacts), with strong adjusted metrics; Q4 2021 cash generation and debt-free status provided a solid base entering the merger .

Sources: Q2 2022 8‑K and exhibits with guidance and merger details ; Q2 2022 earnings call transcript ; Whiting Q1 2022 press release ; Whiting Q4 2021 press release ; SEC Q2 2022 CHRD earnings press release .

Whiting Holdings LLC (WLLAW)·Q2 2022 Earnings Summary