Chord Energy Corporation

Chord Energy Corporation produces oil, natural gas and natural-gas liquids, primarily in the Williston Basin. Its results depend on production, commodity prices, hedging, operating costs and investment in new wells. It trades on Nasdaq under CHRD and has a December 31 fiscal year-end.

Quarterly operating and financial results

Quarterly oil production exceeded the original August range of 161,500 to 164,500 barrels a day, a result already substantially announced in the October 19 preliminary update. Average oil prices before hedges were $85.80 a barrel versus $63.59; after realized hedges, $81.95 versus $64.16. Production comparisons also include the Williston assets acquired from XTO in late 2025.

Net income included $246.002 million of derivative losses. Adjusted income removes the $197.349 million unrealized component while retaining $48.653 million of realized commodity-contract losses. Adjusted common-stockholder income was $332.912 million, versus $134.469 million. Other adjustments include specified noncash items, investment-value changes, impairment, acquisition costs and related tax effects.

Outlook and cost programs

Annual oil-production guidance rose to 162,000 to 163,000 barrels a day, from August's 160,200 to 161,800. Fourth-quarter guidance is 159,500 to 162,500, up from 156,000 to 159,000. Annual capital spending is now $1.435 billion to $1.485 billion, compared with $1.360 billion to $1.440 billion. The updated range excludes specified reimbursable non-operated and excess Marcellus spending.

The capital-budget midpoint increased $60 million to $1.46 billion, including $20 million more for gathering and related infrastructure. Planned midstream investment is now approximately $50 million, compared with $30 million in the original February plan, mainly for water gathering and disposal.

New 2026 marketing and handling agreements are expected to generate $35 million to $55 million of annualized adjusted cash savings over time. The broader $65 million to $105 million presentation range includes both 2025 and 2026 agreements and builds over several years. Expected combined annual savings across drilling, production and marketing are $225 million once fully implemented.

The current annual forecast is approximately $3.4 billion of adjusted EBITDA and $1.6 billion of adjusted free cash flow, using fourth-quarter WTI oil of $90 a barrel and Henry Hub gas of $3 per million Btu. August's $3.0 billion and $1.3 billion forecasts used $75 WTI and $3 gas for the second half. These are different commodity-price paths, alongside changes in operating expectations.

Cash generation and returns to shareholders

For the first nine months, operating cash flow was $2.405 billion, compared with $1.636 billion. Cash capital expenditures were $1.097 billion; another $117.331 million of derivative cash settlements was reported in investing activities. Chord's adjusted free cash flow was $1.166 billion, compared with $649.978 million.

Adjusted free cash flow starts from adjusted EBITDA, then deducts cash interest, accrual capital expenditures excluding capitalized interest and acquisition capital, and cash taxes. The full Q3 reconciliation is $431.485 million. The $442 million headline additionally excludes $4.5 million of reimbursable non-operated spending and $6 million of excess Marcellus spending. It is a different measure from simply deducting cash capital expenditure from operating cash flow.

First-nine-month buyback cash was $418.662 million and dividends paid were $219.074 million. Q3 repurchases were approximately $205 million before excise tax. Subsequent repurchases reached $91 million through November 4, compared with $78 million through October 30 in the earnings release. Approximately $529.049 million of the existing repurchase authorization remained at September 30.

The newly declared base dividend is $1.30 a share, payable December 7 to holders on November 19. With forward normalized leverage below 0.5 times, the framework targets returns of at least 75% of adjusted free cash flow after acquisition and leasehold capital. The timing of dividends and buybacks varies; the company says repurchases may slow at higher oil prices.

Debt and transactions

Cash was $804.713 million at September 30. Senior notes had $1.5 billion of face value and $1.482 billion of carrying value after financing costs. The revolver was undrawn, with $2 billion of elected commitments and approximately $1.970 billion available after letters of credit. The larger $2.75 billion borrowing base is separate from the elected commitment.

An October 30 amendment extended the revolver to October 2031. An earlier maturity can apply if more than $100 million of 2030 notes remains outstanding and pro forma revolver use exceeds 80%. Asset-retirement, lease and volume commitments are separate from the senior-note debt total.

The sale of non-operated Marcellus interests to a POSCO International subsidiary remains pending, with fourth-quarter closing expected for approximately $550 million gross, subject to adjustments. The $55 million refundable deposit is already included in cash and accrued liabilities. Production guidance assumes a mid-quarter closing.

The XTO Williston acquisition closed October 31, 2025. Its final net cash consideration was $540.353 million, funded with note proceeds and cash. The main developments to follow are savings from the new agreements, spending and well performance, realized commodity prices after hedges, completion of the Marcellus sale and the pace of shareholder returns.