Company’s unaudited historical condensed consolidated financial statements and related notes included in its Quarterly Report on Form 10-Q for the six months ended June 30, 2024, filed with the SEC on August 8, 2024; and

Enerplus’ unaudited historical condensed consolidated financial statements and related notes for the three months ended March 31, 2024 filed with SEDAR+ on May 8, 2024 and included on Form 6-K filed with the SEC on May 8, 2024.

Revenues

Oil, NGL and gas revenues

Purchased oil and gas sales

Total revenues

Operating expenses

Lease operating expenses

Gathering, processing and transportation expenses

Purchased oil and gas expenses

Production taxes

Depreciation, depletion and amortization

General and administrative expenses

Exploration and impairment

Total operating expenses

Gain on sale of assets, net

Operating income

Other income (expense)

Net gain (loss) on derivative instruments

Net gain from investment in unconsolidated affiliate

Interest expense, net of capitalized interest

Other income

Total other income (expense), net

Income before income taxes

Income tax expense

Net income

Earnings per share:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

Basis of Presentation

Common stock issued to Enerplus shareholders

Cash paid to Enerplus shareholders

Cash paid to settle Enerplus equity-based compensation awards

Cash paid to settle Enerplus credit facility

Cash paid to settle a retention bonus to Enerplus employees

Total consideration transferred

Assets Acquired

Cash and cash equivalents

Accounts receivable, net

Inventory

Prepaid expenses

Oil and gas properties (successful efforts method)

Other property and equipment

Long-term inventory

Operating right-of-use assets

Other assets

Total assets acquired

Liabilities Assumed

Accounts payable

Revenues and production taxes payable

Accrued liabilities

Current portion of long-term debt

Current operating lease liabilities

Deferred tax liabilities

Asset retirement obligations

Operating lease liabilities

Total liabilities assumed

Net Assets Acquired

Goodwill

Purchase price consideration

Arrangement Reclassification Adjustments

Enerplus Caption

Chord Caption

Ref.

Revenues

Crude oil and natural gas sales

(i) (v)

Commodity derivative instruments gain/(loss)

(ii)

Expenses

Operating

(i)

Transportation

Production taxes

General and administrative

(iii)

Depletion, depreciation and accretion

Interest

(iv)

Other expense/(income)

(v)

Transaction costs

(iii)

(ii)

(iv) (v)

(v)

Income/(Loss) Before Taxes

Income tax expense (benefit)

Current income tax expense/(recovery)

(vi) (vii)

Deferred income tax expense/(recovery)

(vi)

Net Income/(Loss)

Represents the reclassification of balances contained in “Operating” expenses on Enerplus’ historical statement of operations into “Oil, NGL and gas revenues” to conform to the Company’s accounting policy.

Represents the reclassification of balances contained in “Commodity derivative instruments gain/(loss)” on Enerplus’ historical statement of operations into “Net gain (loss) on derivative instruments” to conform to the Company’s statement of operations presentation.

Represents the reclassification of balances contained in “Transaction costs” on Enerplus’ historical statement of operations into “General and administrative expenses” to conform to the Company’s statement of operations presentation.

Represents the reclassification of balances contained in “Interest” on Enerplus’ historical statement of operations into “Interest expense, net of capitalized interest” to conform to the Company’s statement of operations presentation.

Represents the reclassification of balances contained in “Crude oil and natural gas sales” and “Other income, net” on Enerplus’ historical statement of operations into “Interest expense, net of capitalized interest” and “Other income, net” to conform to the Company’s statement of operations presentation.

Represents the reclassification of balances contained in “Deferred income tax expense/(recovery)” on Enerplus’ historical statement of operations into “Income tax (expense) benefit” to conform to the Company’s statement of operations presentation.

Represents the presentation of balances contained in “Current income tax expense/(recovery)” and “Deferred income tax expense/(recovery)” on Enerplus’ historical statement of operations as a negative value within “Income tax (expense) benefit” to conform to the Company’s statement of operations presentation.

Arrangement Acquisition Accounting and Pro Forma Adjustments and Assumptions

Represents the incremental depreciation, depletion and amortization expense related to the assets acquired in the Arrangement, which is based on the purchase price allocation. Depletion was calculated using the unit-of-production method under the successful efforts method of accounting. The depletion expense was adjusted for (i) the revision to the depletion rate reflecting the acquisition costs and the reserves volumes attributable to the acquired oil and gas properties and (ii) the difference in depletion methodology under the successful efforts method of accounting applied by Chord compared to the full cost method of accounting applied by Enerplus. The pro forma depletion rate attributable to the Arrangement was $12.57 per barrel of oil equivalent. This adjustment also includes an increase in accretion expense attributable to asset retirement obligations of $1.5 million for the six months ended June 30, 2024 due to Chord’s higher credit-adjusted risk-free rate as compared to Enerplus.

Represents the adjustment to expense certain historical costs originally capitalized by Enerplus under the full cost method of accounting to align with Chord’s accounting policy under the successful efforts method of accounting.

Represents the net increase to interest expense resulting from the (i) elimination of interest expense on Enerplus’ bank credit facilities, (ii) incremental interest expense for the amortization of the fair value adjustment to Enerplus’ senior notes assumed by Chord, (iii) reduction of interest expense to align with Chord’s capitalized interest accounting policy, (iv) incremental interest expense for borrowings on Chord’s existing credit facility to finance the closing of the Arrangement and (v) incremental interest expense for the amortization of deferred financing costs related to the amendment entered into by Chord on the closing date of the Arrangement to increase the borrowing base capacity and commitment amounts on Chord’s revolving credit facility as follows:

Elimination of interest expense on Enerplus’ bank credit facilities

Incremental interest expense for amortization of remeasurement of legacy Enerplus’ senior notes

Reduction of interest expense related to capitalized interest to align with Chord’s accounting policy

Incremental interest expense for borrowings on Chord’s revolving credit facility

Incremental interest expense for amortization of deferred financing costs

Net transaction accounting adjustments to interest expense

Represents the income tax impact of the pro forma adjustments from the Arrangement at the blended federal and state statutory rate of approximately 24% for the six months ended June 30, 2024.

The table below represents the calculation of the weighted average shares outstanding and earnings per share included in the unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2024. As the Arrangement is being reflected in the unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2024 as if it had occurred on January 1, 2024, the calculation of weighted average shares outstanding for basic and diluted earnings per share assumes that the shares issuable related to the Arrangement have been outstanding for the entire period.

Pro forma net income

Basic shares:

Chord shares outstanding (weighted average per statement of operations)

Chord shares issued in exchange for legacy Enerplus shares as part of consideration transferred

Pro forma weighted average common shares outstanding, basic

Diluted shares:

Pro forma weighted average shares outstanding, basic

Dilutive effect of shares convertible from Chord share based awards

Dilutive effect of shares convertible from Chord in-the-money warrants

Pro forma weighted average common shares outstanding, diluted

Earnings attributable to Chord per share, basic

Earnings attributable to Chord per share, diluted

Anti-dilutive weighted average common shares:

Potential common shares