Chord Energy Corporation

What they do

Chord Energy explores for, develops and produces crude oil, NGLs and natural gas, primarily in the Williston Basin, with limited non-operated interests in the Marcellus Shale. As of December 31, 2025, it held 1,302,921 net leasehold acres in the Williston Basin and 5,025 gross (3,937.3 net) operated producing wells. It is developing the Middle Bakken and Three Forks formations. Average daily production for 2025 was 276,620 net Boepd.

Revenue drivers

• Crude oil — Crude oil is the core revenue driver; 56% of estimated net proved reserves at December 31, 2025 were crude oil. In 2Q26, oil volumes were 165.4 MBopd at a $1.27/Bbl premium to WTI.
• Natural gas — Natural gas is a secondary revenue stream. 2Q26 natural gas volumes were 408.0 MMcfpd with realizations at 32% of Henry Hub.
• NGLs — NGLs contribute additional revenue. 2Q26 NGL volumes were 53.0 MBblpd, realizing 10% of WTI.
• Total production — Total 2Q26 volumes were 286.4 MBoepd, above the high end of guidance of 279.7-285.0 MBoepd.

Recent performance

In 2Q26, Chord reported net income of $525.2MM and Adjusted Net Income of $361.7MM, or $6.44 per diluted share. Net cash provided by operating activities was $1,116.2MM, Adjusted EBITDA was $923.5MM and Adjusted Free Cash Flow was $414.1MM. Quarterly revenue rose to $2.17B in the quarter ended June 30, 2026, up from $1.67B in the prior quarter. CapEx of $416MM was below the midpoint of guidance. Oil volumes of 165.4 MBopd were at the high end of guidance.

Strategy

Chord's stated strategy emphasizes capital discipline and generating sustainable free cash flow. It has a return of capital program consisting of a $1.30 per share quarterly base dividend ($5.20 annualized) and a $1 billion share repurchase program authorized in the third quarter of 2025, with $952.2MM remaining as of December 31, 2025. It expects to return a targeted percentage of Adjusted Free Cash Flow each quarter based on prior-quarter free cash flow and projected leverage. The company is continuing its 4-mile lateral program and base production enhancement initiatives, including a chemical workover program.

Risks

• Commodity price risk — Realized prices for crude oil, NGL and natural gas are volatile and directly affect revenue and cash flow; the company uses derivative contracts to partially manage this risk.
• Geographic concentration — Operations are concentrated in the Williston Basin, so regional disruptions, infrastructure constraints, or regulatory changes could disproportionately affect results.
• Dakota Access Pipeline shutdown — A possible shutdown of the Dakota Access Pipeline could disrupt crude oil transportation and marketing in the Williston Basin.
• Integration and acquisition risk — The company may not realize the anticipated benefits from acquisitions, including the May 31, 2024 Enerplus acquisition.

Outlook

Management stated that Adjusted Free Cash Flow exceeded expectations in 2Q26, supported by oil volumes at the high end of guidance and capital expenditures below midpoint. Chord expects to increase shareholder returns to 75% of free cash flow in the third quarter as leverage fell below half a turn at quarter-end. The company continues to test multiple new opportunities in its chemical workover program and is executing its 4-mile lateral program. Management said disciplined capital allocation and a strong balance sheet position Chord to navigate the volatile macro environment.