Company Overview - Chord Energy (NASDAQ: CHRD) is engaged in oil and gas exploration and production in the United States, with a focus on the Williston Basin [1] Investment Focus - The company is not part of the integrated oil and gas industry, indicating a specialized operational focus [1] - The investment strategy emphasizes value companies linked to commodity production, particularly those with sustained free cash flows, low leverage, and sustainable debt [1] Market Positioning - Chord Energy targets companies that are in distress but have high recovery potential, particularly in sectors not widely considered by the market, such as oil & gas, metals, and mining [1] - The company is interested in emerging markets that exhibit high margins and present good medium to long-term investment opportunities [1] Shareholder Value - Chord Energy maintains a solid pro-shareholder attitude, with a focus on sustained buyback programs and dividend distributions over time [1]

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Saturn Oil & Gas Announces Corporate Update Highlighted by Increased 2025 Forecast Production, Reduced Capital Expenditures, Strategic Tuck-In Activity and Appointment of Independent Board Member, Lynn PetersonSeptember 08, 2025 7:00 AM EDT | Source: Saturn Oil & Gas Inc.Year-to-date asset outperformance, opportunistic tuck-in acquisitions and land expansion in southeast Saskatchewan drove capital expenditure reduction and increased 2025 forecast production, with no impact to previously guided ...

Core Viewpoint - Chord Energy Corporation (CHRD) shares have declined 2.6% following the release of second-quarter 2025 results, primarily due to weaker-than-expected earnings and a significant $539 million goodwill impairment overshadowing production growth and guidance [1][8]. Q2 Results - The company reported adjusted earnings of $1.79 per share, missing the Zacks Consensus Estimate of $1.88, and a significant decline from $4.69 in the same quarter last year [2][8]. - On a GAAP basis, the company recorded a net loss of $6.77 per share due to a $539 million non-cash goodwill impairment charge [2][8]. - Total quarterly revenues were $1,181 million, falling short of the Zacks Consensus Estimate of $1,295 million and down from $1,261 million in the prior year [2]. Operational Performance - Oil production averaged 156.7 thousand barrels per day (MBopd), an increase from 118.1 MBopd in the prior-year quarter [4]. - Total production reached 281.9 thousand barrels of oil equivalent per day (MBoepd), up from 207.2 MBoepd a year ago [4]. - Natural gas production was 425.9 million cubic feet per day (MMcf/D), up from 291.5 MMcf/D in the previous year [4]. - Natural gas liquids production totaled 54.1 MBbls/d, higher than 40.5 MBbls/d a year ago [4]. Realized Prices - The average realized crude oil price was $61.62 per barrel, down from $78.89 in the prior year [5]. - The average realized natural gas price increased to $1.10 per thousand cubic feet from 67 cents a year ago [5]. - Realized natural gas liquids price decreased to $5.80 per barrel from $9.99 in the same quarter last year [5]. Total Expenses - Lease operating expenses totaled $257 million, up from $176.6 million in the prior-year quarter [6]. - Gathering, processing, and transportation expenses increased to $74.1 million from $63.1 million in the comparable period of 2024 [6]. - Total operating expenses reached $1,583.3 million, up from $987.1 million in the previous year [6]. Balance Sheet & Liquidity - As of June 30, 2025, Chord Energy held cash and cash equivalents of $40.5 million, with long-term debt at $918.9 million [7]. - Liquidity stood at $1.83 billion, including credit facility availability [7]. - Capital expenditure amounted to $355.6 million, at the low end of the expected range [7]. Outlook for 2025 - Chord Energy expects oil production of 151.8-154.1 MBopd and total production of 272.5-278.3 MBoepd for 2025 [9]. - The company anticipates adjusted EBITDA of $2.4 billion and adjusted free cash flow of $850 million for the year [9]. - Capital expenditures for exploration and production are projected between $1.32 billion and $1.38 billion, with plans to complete 115-135 gross operated wells in Q3 2025 [9].

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20%E2%80%94%20Financial%20Statements%20%28Unaudited%29) The unaudited financial statements for Q2 2025 reflect a significant net loss driven by a **$539.3 million goodwill impairment**, decreasing total assets to **$12.55 billion** [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$12.55 billion** as of June 30, 2025, primarily due to the complete write-off of **$530.6 million** in goodwill Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$12,546,596** | **$13,032,007** | **($485,411)** | | Cash and cash equivalents | $40,487 | $36,950 | $3,537 | | Total property, plant and equipment, net | $10,810,484 | $10,686,169 | $124,315 | | Goodwill | $— | $530,616 | ($530,616) | | **Total Liabilities** | **$4,450,372** | **$4,329,745** | **$120,627** | | Long-term debt | $918,901 | $842,600 | $76,301 | | **Total Stockholders' Equity** | **$8,096,224** | **$8,702,262** | **($606,038)** | - Goodwill was reduced to **zero** as of June 30, 2025, from **$530.6 million** at the end of 2024, due to a non-cash impairment charge[23](index=23&type=chunk)[43](index=43&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a Q2 2025 net loss of **$389.9 million**, primarily driven by a **$541.9 million impairment charge**, despite **$1.18 billion** in total revenues Key Operating Results (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,180,560 | $1,260,680 | $2,395,606 | $2,345,940 | | Operating Income (Loss) | ($403,215) | $289,021 | ($65,222) | $561,960 | | Impairment and Exploration | $541,940 | $1,485 | $543,923 | $7,639 | | **Net Income (Loss)** | **($389,905)** | **$213,361** | **($170,068)** | **$412,715** | | Diluted EPS | ($6.77) | $4.25 | ($2.93) | $8.87 | - A significant non-cash impairment charge of **$539.3 million** related to goodwill was recognized in the three and six months ended June 30, 2025, leading to a substantial **net loss**[27](index=27&type=chunk)[43](index=43&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$1.08 billion** for the first half of 2025, with significant cash used in investing and financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,076,703 | $867,574 | | Net cash used in investing activities | ($677,782) | ($1,150,576) | | Net cash provided by (used in) financing activities | ($395,384) | $162,393 | | **Increase (decrease) in cash** | **$3,537** | **($120,609)** | - Major uses of cash in financing activities for the first six months of 2025 included **$274.0 million** for common stock repurchases and **$168.8 million** for dividend payments[33](index=33&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the Enerplus acquisition, a **$539.3 million** goodwill impairment, debt refinancing, and significant shareholder returns - The acquisition of Enerplus Corporation was completed on May 31, 2024, and accounted for under the acquisition method, with the purchase price allocation finalized as of June 30, 2025[40](index=40&type=chunk)[41](index=41&type=chunk) - A goodwill impairment test on June 30, 2025, triggered by a decrease in the company's stock price and commodity prices, resulted in a non-cash impairment charge of **$539.3 million**, reducing goodwill to **zero**[43](index=43&type=chunk)[60](index=60&type=chunk) - In March 2025, the company issued **$750.0 million** of 6.750% senior unsecured notes due 2033 and used the proceeds to redeem its **$400.0 million** of 6.375% senior notes due 2026[91](index=91&type=chunk)[94](index=94&type=chunk) - During the first six months of 2025, the company repurchased **2.6 million shares** for **$271.5 million** and declared total dividends of **$2.60 per share**[114](index=114&type=chunk)[117](index=117&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q2 2025 net loss to a **$539.3 million** goodwill impairment, despite increased production and strong **$1.83 billion** liquidity [Overview and Recent Developments](index=32&type=section&id=Overview%20and%20Recent%20Developments) Chord Energy experienced a **$539.3 million** goodwill impairment in Q2 2025 due to volatile commodity prices, while maintaining capital discipline - The company's revenue and profitability are substantially dependent on fluctuating crude oil, NGL, and natural gas prices, which are beyond its control[133](index=133&type=chunk) - Due to market volatility and a decrease in crude oil prices during Q2 2025, the company assessed goodwill for impairment and recognized a non-cash charge of **$539.3 million**[134](index=134&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q2 2025 revenues decreased due to lower commodity prices, despite higher production, with operating expenses dominated by a **$539.3 million** goodwill impairment Production and Realized Prices (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Avg. Daily Production (Boepd) | 281,858 | 270,855 | +4.1% | | Avg. Crude Oil Sales Price (/Bbl) | $61.62 | $69.11 | -10.8% | | Avg. NGL Sales Price (/Bbl) | $5.80 | $14.18 | -59.1% | | Avg. Natural Gas Sales Price (/Mcf) | $1.10 | $2.30 | -52.2% | - The decrease in Q2 2025 revenue compared to Q1 2025 was primarily driven by lower realized commodity prices, which offset the increase in production volumes[143](index=143&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - General and administrative expenses decreased in Q2 2025 compared to Q1 2025, mainly due to lower employee compensation and a reduction in merger-related costs from the Enerplus Arrangement[157](index=157&type=chunk) - Compared to the first six months of 2024, DD&A expense for the same period in 2025 increased by **$330.0 million**, primarily due to a higher depletion rate and increased production volumes following the Enerplus acquisition[169](index=169&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Chord Energy maintained **$1.83 billion** in liquidity as of June 30, 2025, with cash used for capital expenditures, share repurchases, and debt refinancing - The company maintained a strong liquidity position with **$1,830.6 million** available as of June 30, 2025[178](index=178&type=chunk) - In August 2025, the Board of Directors authorized a new **$1.0 billion** share repurchase program, replacing the previous **$750.0 million** program[199](index=199&type=chunk)[119](index=119&type=chunk) Six Months 2025 Cash Flow Summary (in thousands) | Category | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,076,703 | | Net cash used in investing activities | ($677,782) | | Net cash used in financing activities | ($395,384) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity price, interest rate, and counterparty risks using derivatives and fixed-rate debt, with a **10%** crude oil price change impacting derivative fair value by **$55 million** - The company uses derivative instruments to partially reduce the risk of volatile commodity prices for crude oil, NGLs, and natural gas[205](index=205&type=chunk) - A **10%** increase in crude oil prices would reduce the fair value of the company's unrealized derivative asset position by approximately **$54.5 million**, while a **10%** decrease would increase it by **$56.4 million**[206](index=206&type=chunk) - Interest rate risk exists on the **$180.0 million** of borrowings under the variable-rate Credit Facility as of June 30, 2025, while **$750.0 million** of senior notes carry a fixed interest rate[208](index=208&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20%E2%80%94%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, while integrating Enerplus's internal controls post-acquisition - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter, June 30, 2025[213](index=213&type=chunk) - Following the acquisition of Enerplus on May 31, 2024, the company is in the process of incorporating Enerplus's controls and procedures into its own system of internal control over financial reporting[214](index=214&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20%E2%80%94%20Legal%20Proceedings) The company refers to Note 16 for material legal proceedings, with no new significant updates in this section - For discussion of material legal proceedings, the company refers to Note 16 in the financial statements[217](index=217&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20%E2%80%94%20Risk%20Factors) No material changes to risk factors were reported from the 2024 Annual Report on Form 10-K - There have been no material changes in risk factors from those described in the 2024 Annual Report[219](index=219&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Chord Energy repurchased **605,621 shares** for **$55.0 million** in Q2 2025 under its program, with no unregistered equity sales Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | April 2025 | 573,025 | $90.68 | 494,344 | | May 2025 | 116,455 | $89.91 | 111,277 | | June 2025 | — | — | — | | **Total** | **689,480** | **$90.55** | **605,621** | - In August 2025, the Board authorized a new **$1.0 billion** share repurchase program, which replaces the previous **$750 million** program[221](index=221&type=chunk)

Financial Data and Key Metrics Changes - The company reported adjusted free cash flow for Q2 2025 of approximately $141 million, returning 92% of this to shareholders [6][25] - Oil volumes exceeded guidance, reflecting strong execution and well performance, while capital expenditures were reduced by $50 million compared to the original budget [6][7] - The company's net debt as of July 31 was approximately $810 million, a decline of almost $80 million from June 30 [30] Business Line Data and Key Metrics Changes - The company has reduced its share count by approximately 10% since closing the Enerplus transaction [6] - Lease operating expenses (LOE) were reported at $10.2 per BOE, at the higher end of the guidance range due to increased workover costs [27] - The company achieved notable improvements in drilling efficiency, with spud to rig release times down about a day year over year [18] Market Data and Key Metrics Changes - Oil differentials in Q2 averaged $2.15 below WTI, slightly improving from the prior quarter [25] - NGL realizations were 9% of WTI, while natural gas realizations were 32% of Henry Hub [26] - Production taxes averaged 7.3% of commodity sales in Q2, which was below expectations due to non-recurring refunds for stripper wells [27] Company Strategy and Development Direction - The company intends to redeploy a second frac crew in Q4 2025, aiming for increased production in 2026 [8][9] - Continuous improvement initiatives are focused on increasing free cash flow through data analytics, machine learning, and artificial intelligence [12][13] - The company is committed to sustainability, emphasizing safety and minimizing environmental impact [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate substantial value in the coming years, citing strong operational performance and shareholder returns [15] - The company is focused on strong capital allocation decisions to enhance free cash flow per share rather than absolute production growth [66] - Management noted that the fourth quarter of 2025 will be a trough for production, with expectations for growth in early 2026 [68] Other Important Information - The company has made progress in reducing controllable costs across various operational areas, with a 20% improvement in free cash flow outlook since February [11] - The company plans to publish an updated sustainability report in the fall, reflecting the integration of Chord and Enerplus [14] Q&A Session Summary Question: Context on Fourmile Wells Investment - Management confirmed that permitting activity for four mile wells is well underway and they are preparing for various options [34] Question: Update on Marcellus Asset - Management stated that while Marcellus is a great asset, it is not core to their portfolio, and they will focus on maximizing its value [37] Question: Rysted Well Performance - The Rysted well has outperformed its type curve by 30%, with drilling performance exceeding expectations [42] Question: Cost of Implementing AI Initiatives - Management indicated that the cost of implementing AI initiatives is low, primarily due to having clean and organized data [60] Question: Future Production and Capital Allocation - Management emphasized that the focus is on generating strong free cash flow per share rather than absolute production growth [66] Question: Four Mile Lateral Program Milestones - The company is monitoring mechanical execution and performance of the four mile wells before scaling up the program [92]

Company Strategy & Performance - Chord Energy is positioned as a premier Williston Basin operator focused on enhancing free cash flow generation[1,9] - The company emphasizes a disciplined return of capital and balance sheet management[10] - Chord Energy has returned >$5 billion to shareholders since 2021, representing >50% of the current enterprise value[17,24] - The company is driving per share growth across key metrics, including a 12% CAGR in oil production per share since 2021[36,38] Operational Efficiency & Cost Reduction - Continuous improvements are driving approximately 20% free cash flow growth versus original guidance[25] - Capital expenditure is ~$50 million (~4%) below the original outlook due to faster cycle times and increased pumping hours[26,32] - The company is implementing 4-mile laterals, which are expected to improve inventory quality and lower breakevens, with seven TILs planned in FY25[47,51] Financial Strength & Capital Allocation - Chord Energy maintains a strong balance sheet with 0.3x leverage[15,70] - The company has >$1.8 billion of liquidity as of 2Q25[70,73] - The company aims for peer-leading return of capital, targeting 75%+ of adjusted free cash flow at current leverage[126,127]

Core Insights - Chord Energy Corporation reported a revenue of $1.18 billion for the quarter ended June 2025, reflecting a year-over-year decline of 6.4% and an EPS of $1.79 compared to $4.69 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.3 billion, resulting in a surprise of -8.87%, while the EPS also missed the consensus estimate of $1.88 by -4.79% [1] Financial Performance - The company’s shares have returned -1.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change, and currently holds a Zacks Rank 3 (Hold) [3] - Key production metrics include oil production at 156,700 BBL/D, natural gas at 425,900 Mcf/D, and NGL at 54,100 Bbls, all exceeding analyst estimates [4] - Total average daily production reached 281,900 BOE/D, surpassing the four-analyst average estimate of 272,529.70 BOE/D [4] Pricing Metrics - Average sales prices for natural gas without realized derivatives were $1.10, slightly above the $1.04 average estimate [4] - Average sales prices for NGL without realized derivatives were $5.80, below the $5.90 average estimate [4] - Average sales prices for crude oil without realized derivatives were $61.62, closely aligning with the two-analyst average estimate of $61.66 [4]

[Key Highlights and Updates](index=1&type=section&id=Key%20Highlights%20and%20Updates) Chord Energy exceeded Q2 2025 production guidance, managed capital efficiently, delivered strong shareholder returns, and improved its full-year outlook - **Q2 2025 Financial Highlights** | Metric | Value | Per Share | | :--- | :--- | :--- | | Net Cash from Operating Activities | $419.8MM | - | | Net Loss | ($389.9MM) | ($6.77)/diluted share | | Adjusted EBITDA (Non-GAAP) | $547.2MM | - | | Adjusted FCF (Non-GAAP) | $140.8MM | - | | Adjusted Net Income (Non-GAAP) | $103.2MM | $1.79/diluted share | - Returned over **90%** of Adjusted Free Cash Flow to shareholders via a **$1.30 per share** base dividend and share repurchases[6](index=6&type=chunk) - Repurchased **$55.0 million** of common stock in Q2 2025 and an additional **$45.2 million** subsequent to the quarter end through August 1, 2025[6](index=6&type=chunk) - The company updated its FY25 outlook, raising oil production guidance by **500 Bopd** and reducing capital expenditure guidance by **$20 million** at the midpoint[6](index=6&type=chunk) [Q2 2025 Operational and Financial Performance](index=2&type=section&id=Q2%202025%20Operational%20and%20Financial%20Performance) Chord Energy surpassed Q2 2025 production targets and managed capital efficiently, despite reporting a GAAP net loss due to a goodwill impairment [Performance vs. Guidance](index=2&type=section&id=Performance%20vs.%20Guidance) Q2 2025 production exceeded guidance across all commodities, with total volumes reaching **281.9 MBoepd**, while capital expenditures were at the low end of the forecast - **Q2 2025 Actuals vs. Guidance** | Metric | 2Q25 Actual | 2Q25 Guidance | | :--- | :--- | :--- | | Total Volumes (MBoepd) | 281.9 | 268.3 – 275.0 | | Oil Volumes (MBopd) | 156.7 | 153.0 – 156.0 | | E&P & Other CapEx ($MM) | $355.6 | $355 – $385 | - The company turned-in-line (TIL) **37 gross (29.3 net)** operated wells during the second quarter of 2025[8](index=8&type=chunk) [Key Financial Metrics](index=3&type=section&id=Key%20Financial%20Metrics) Q2 2025 revenues decreased to **$950.3 million** due to lower commodity prices, resulting in a **$389.9 million** GAAP net loss, while Adjusted Net Income was **$103.2 million** - **Selected Financial Data Comparison ($MM)** | Metric | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Total Revenues | $950.3 | $1,103.3 | $902.7 | | Net Cash from Ops | $1,076.7 | $656.9 | $460.9 | | Adjusted EBITDA | $547.2 | $695.5 | $567.9 | | Adjusted FCF | $140.8 | $290.5 | $216.1 | | Diluted EPS (GAAP) | $(6.77) | $3.66 | $4.25 | | Adjusted Diluted EPS | $1.79 | $4.04 | $4.69 | - **Production and Pricing Comparison** | Metric | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Total Production (MBoepd) | 281.9 | 270.9 | 207.2 | | Crude Oil Production (MBopd) | 156.7 | 153.7 | 118.1 | | Avg. Crude Oil Price ($/Bbl) | $61.62 | $69.11 | $78.89 | [Goodwill Impairment](index=4&type=section&id=Goodwill%20Impairment) A **$539.3 million** non-cash goodwill impairment charge was recognized in Q2 2025, reducing the goodwill balance to zero due to market capitalization decline - A non-cash impairment charge of **$539.3 million** was recognized to reduce the carrying value of goodwill to zero as of June 30, 2025[20](index=20&type=chunk) [Capital Expenditures](index=4&type=section&id=Capital%20Expenditures) Total capital expenditures for Q2 2025 were **$365.0 million**, with E&P capital expenditures remaining consistent at **$354.5 million** - **Capital Expenditures by Category ($ millions)** | Category | 2Q25 | 1Q25 | 1H25 | | :--- | :--- | :--- | :--- | | E&P | $354.5 | $354.8 | $709.3 | | Other | $1.1 | $0.6 | $1.7 | | **Total E&P and other CapEx** | **$355.6** | **$355.4** | **$711.0** | | Acquisitions | $8.3 | $17.9 | $26.2 | | **Total CapEx** | **$365.0** | **$374.4** | **$739.4** | [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) Chord Energy declared a **$1.30 per share** base dividend, repurchased **$55.0 million** in Q2, and authorized a new **$1 billion** share repurchase program - Declared a base dividend of **$1.30 per share**, payable on September 8, 2025, to shareholders of record as of August 21, 2025[9](index=9&type=chunk) - Repurchased **605,621 shares** for **$55.0 million** in Q2 2025 and an additional **423,902 shares** for **$45.2 million** subsequent to the quarter end[10](index=10&type=chunk) - The Board of Directors has authorized a new **$1 billion** share repurchase program, which replaces the existing program[11](index=11&type=chunk) [Updated 2025 Outlook](index=2&type=section&id=Updated%202025%20Outlook) Chord Energy updated its FY25 guidance, raising oil production by **500 Bopd** and reducing capital expenditures by **$20 million**, projecting a **20%** increase in Adjusted FCF - **Updated FY25 Guidance Highlights** | Metric | Change from Previous Guidance | New Midpoint | | :--- | :--- | :--- | | Oil Volumes | Raised +500 Bopd | 153.0 MBopd | | E&P and Other CapEx | Lowered -$20MM | $1.35B | | Cash Taxes (% of Adj. EBITDA) | Lowered to 3.5% - 6.5% | 5.0% | - The updated guidance implies a **~$120 million (~20%)** increase in FY25 Adjusted FCF compared to the original plan, driven by improved capital efficiency and lower operating costs[17](index=17&type=chunk) - **FY25 Guidance Details** | Metric | FY25 Guidance | | :--- | :--- | | Total Volumes (MBoepd) | 272.5 – 278.3 | | E&P & Other CapEx ($MM) | $1,320 – $1,380 | | LOE ($/Boe) | $9.35 – $9.85 | [Financial Position](index=5&type=section&id=Financial%20Position) As of June 30, 2025, Chord Energy reported over **$1.8 billion** in liquidity, with total debt at **$930.0 million** and cash of **$40.5 million** - **Balance Sheet and Liquidity as of June 30, 2025 ($ millions)** | Metric | Value | | :--- | :--- | | Revolving Credit Facility | $2,000.0 | | Revolver Borrowings | $180.0 | | Senior Notes | $750.0 | | **Total Debt** | **$930.0** | | Cash and Cash Equivalents | $40.5 | | **Liquidity** | **$1,830.6** | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Unaudited consolidated financial statements for Q2 2025 show total assets of **$12.5 billion**, a net loss of **$389.9 million**, and **$1.08 billion** in operating cash flow for the first half [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets were **$12.55 billion** as of June 30, 2025, with total liabilities at **$4.45 billion** and stockholders' equity at **$8.10 billion** - **Balance Sheet Summary (in thousands)** | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,523,685 | $1,579,118 | | Total Assets | $12,546,596 | $13,032,007 | | Total Current Liabilities | $1,576,635 | $1,683,978 | | Total Liabilities | $4,450,372 | $4,329,745 | | Total Stockholders' Equity | $8,096,224 | $8,702,262 | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues were **$1.18 billion**, resulting in a net loss of **$389.9 million** due to a **$541.9 million** impairment charge - **Statement of Operations Summary (in thousands)** | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $1,180,560 | $1,260,680 | | Total Operating Expenses | $1,583,253 | $987,145 | | Operating Income (Loss) | $(403,215) | $289,021 | | Net Income (Loss) | $(389,905) | $213,361 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash from operations was **$1.08 billion**, with **$677.8 million** used in investing and **$395.4 million** in financing activities - **Cash Flow Summary (Six Months Ended June 30, in thousands)** | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,076,703 | $867,574 | | Net Cash used in Investing Activities | $(677,782) | $(1,150,576) | | Net Cash from (used in) Financing Activities | $(395,384) | $162,393 | [Non-GAAP Financial Measures](index=13&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP measures like Adjusted EBITDA, Adjusted Free Cash Flow, and Adjusted Net Income, providing insight into core operational performance [Adjusted EBITDA and Adjusted Free Cash Flow](index=14&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20Free%20Cash%20Flow) Q2 2025 Adjusted EBITDA was **$547.2 million**, and Adjusted Free Cash Flow was **$140.8 million**, reflecting operational cash generation after key adjustments - **Reconciliation of Net Income to Adjusted EBITDA and Adjusted FCF (Q2 2025, in thousands)** | Metric | Value | | :--- | :--- | | Net Income (Loss) | $(389,905) | | Adjustments (Interest, Tax, DD&A, Impairment, etc.) | $937,131 | | **Adjusted EBITDA** | **$547,226** | | Cash Interest | $(18,642) | | E&P and other capital expenditures | $(355,589) | | Cash taxes paid | $(32,148) | | **Adjusted Free Cash Flow** | **$140,847** | [Adjusted Net Income and Adjusted Diluted Earnings Per Share](index=16&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20Earnings%20Per%20Share) Q2 2025 Adjusted Net Income was **$103.2 million** (**$1.79 per diluted share**), contrasting with a GAAP net loss of **$389.9 million** due to impairment - **Reconciliation of Net Income to Adjusted Net Income (Q2 2025, in thousands)** | Metric | Value | | :--- | :--- | | Net Income (Loss) | $(389,905) | | Impairment | $539,317 | | Net (gain) loss on derivative instruments | $(82,231) | | Other Adjustments & Tax Impact | $36,587 | | **Adjusted Net Income** | **$103,768** | - **Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q2 2025)** | Metric | Value | | :--- | :--- | | Diluted earnings (loss) per share | $(6.75) | | Impairment per share | $9.33 | | Other Adjustments per share | $(0.79) | | **Adjusted Diluted Earnings Per Share** | **$1.79** | [Other Non-GAAP Reconciliations](index=13&type=section&id=Other%20Non-GAAP%20Reconciliations) Q2 2025 cash-based metrics include Cash GPT of **$71.8 million**, Cash G&A of **$21.7 million**, and Cash Interest of **$18.6 million** - **Q2 2025 Cash-Based Metrics (in thousands)** | Metric | GAAP Value | Adjustments | Non-GAAP Value | | :--- | :--- | :--- | :--- | | GPT | $74,100 | $(2,270) | $71,830 | | G&A | $32,540 | $(10,840) | $21,700 | | Interest Expense | $18,788 | $(146) | $18,642 |

Core Insights - Chord Energy Corporation reported strong operational and financial results for Q2 2025, exceeding expectations in free cash flow and production volumes, while maintaining a focus on capital discipline and shareholder returns [4][7][12]. Operational and Financial Highlights - Oil production volumes reached 156.7 MBopd, exceeding guidance of 153.0 – 156.0 MBopd [6] - NGL volumes were 54.1 MBblpd, surpassing guidance of 47.3 – 48.8 MBblpd [6] - Natural gas volumes were 425.9 MMcfpd, above the guidance range of 408.5 – 421.5 MMcfpd [6] - Total production volumes were 281.9 MBoepd, exceeding the guidance of 268.3 – 275.0 MBoepd [6] - Adjusted EBITDA for Q2 2025 was $547.2 million, while adjusted free cash flow was $140.8 million [7][15] - The company returned over 90% of adjusted free cash flow to shareholders through dividends and share repurchases [7] Shareholder Returns - A base dividend of $1.30 per share was declared, payable on September 8, 2025 [9] - The company repurchased $55.0 million of common stock at an average price of $90.80 per share during Q2 2025 [10] - A new share repurchase program totaling $1 billion was authorized, replacing the existing program [11] Updated Outlook - Full-year 2025 oil production guidance was raised by 500 Bopd, with a reduction in capital expenditures by $20 million at the midpoint of guidance [12][14] - The company expects to generate approximately $2.4 billion in adjusted EBITDA and $850 million in adjusted free cash flow for the second half of 2025 [12] - The updated guidance reflects improved capital efficiency and lower operating costs, with a projected 20% increase in adjusted free cash flow compared to earlier forecasts [14] Financial Performance - Total revenues for Q2 2025 were $950.3 million, compared to $902.7 million in Q2 2024 [15] - The company reported a net loss of $389.9 million for Q2 2025, with diluted earnings per share of $(6.77) [15] - Goodwill impairment of $539.3 million was recognized due to a decline in market capitalization [17] Capital Expenditures and Liquidity - E&P and other capital expenditures for Q2 2025 were $355.6 million, at the low end of guidance [7] - As of June 30, 2025, total debt was $930 million, with cash and cash equivalents of $40.5 million [21]