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]

Core Insights - Chord Energy Corporation (CHRD) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025 [1][3] - The earnings report is expected to be released on August 6, and the actual results will significantly influence the stock price [2][3] - The consensus EPS estimate for Chord Energy is $1.88 per share, reflecting a decline of 59.9% year-over-year, while revenues are projected to be $1.37 billion, an increase of 9% from the previous year [3] Estimate Revisions Trend - The consensus EPS estimate has been revised 10.71% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Chord Energy matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [11] Earnings Surprise History - In the last reported quarter, Chord Energy exceeded the expected earnings of $3.6 per share by delivering $4.04, resulting in a surprise of +12.22% [13] - Over the past four quarters, the company has beaten consensus EPS estimates two times [14] Bottom Line - Chord Energy does not appear to be a strong candidate for an earnings beat based on current estimates and rankings [17] - Investors are advised to consider other factors beyond earnings results when making investment decisions regarding this stock [15][17]

Core Viewpoint - Chord Energy Corp. is set to announce its second quarter 2025 financial and operating results on August 6, 2025, followed by a live webcast and conference call on August 7, 2025 [1] Financial Results Announcement - The financial results will be announced after market close on August 6, 2025 [1] - A live webcast and conference call will take place on August 7, 2025, at 10:00 a.m. Central [1] Conference Call Details - Investors can join the conference call via phone or webcast [1][2] - Dial-in information includes a toll-free number (1-800-836-8184) and an international number (1-646-357-8785) [2] - A recording of the conference call will be available for replay starting at 1:00 p.m. Central on the day of the call until August 14, 2025 [2] Upcoming Events - Chord Energy plans to participate in several energy conferences and investor events from August to September 2025, including: - Citi 2025 Global Power & Energy Conference on August 14, 2025 [3] - Wolfe Research Fall Energy Summit on August 20, 2025 [3] - Barclays CEO Energy-Power Conference on September 3, 2025 [3] Company Overview - Chord Energy Corp. is an independent exploration and production company with a focus on the Williston Basin [4] - The company emphasizes capital discipline and aims to generate free cash flow through efficient and responsible operations [4]

Core Insights - Chord Energy Corporation (CHRD) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 19.57% [1][5] - The company reported earnings of $3.6 per share for the most recent quarter, which was below the expected $4.04, resulting in a surprise of 12.22% [2] - In the previous quarter, Chord Energy exceeded expectations by reporting $3.49 per share against a consensus estimate of $2.75, achieving a surprise of 26.91% [2] Earnings Estimates and Predictions - Chord Energy's earnings estimates have been trending higher, supported by its history of earnings surprises [5] - The company currently has a positive Earnings ESP of +8.80%, indicating bullish sentiment among analysts regarding its near-term earnings potential [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [8] Earnings ESP and Market Behavior - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - A negative Earnings ESP does not necessarily indicate an earnings miss, but it can reduce predictive power [8]

Group 1 - Chord Energy Corporation (CHRD) is experiencing significant activity in the options market, particularly with the Sep 19, 2025 $65 Call option showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts currently rate Chord Energy as a Zacks Rank 3 (Hold) within the Oil and Gas - Exploration and Production - United States industry, which is in the bottom 36% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, no analysts have raised their earnings estimates for Chord Energy, while four have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate for the current quarter from $2.68 to $1.77 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the stock does not move as much as expected by expiration [4]

Core Viewpoint - Chord Energy Corporation has experienced a 2.7% increase in share price over the past month, underperforming the S&P 500, with expectations of a potential pullback ahead of its next earnings release [1] Group 1: Earnings Estimates - Estimates for Chord Energy Corporation have trended downward over the past month, with a consensus estimate shift of -29.36% [2] - The overall direction and magnitude of estimate revisions have led to a Zacks Rank of 5 (Strong Sell) for Chord Energy Corporation, indicating expectations of below-average returns in the coming months [4] Group 2: VGM Scores - Chord Energy Corporation holds a Growth Score of B, a Momentum Score of F, and a Value Score of B, resulting in an aggregate VGM Score of B, which is relevant for investors not focused on a single strategy [3] Group 3: Industry Performance - Chord Energy Corporation is part of the Zacks Oil and Gas - Exploration and Production - United States industry, where Magnolia Oil & Gas Corp has gained 7.9% over the past month [5] - Magnolia Oil & Gas Corp reported revenues of $350.3 million for the last quarter, reflecting a year-over-year increase of +9.7%, with an EPS of $0.55 compared to $0.49 a year ago [6] - For the current quarter, Magnolia Oil & Gas Corp is expected to post earnings of $0.39 per share, indicating a year-over-year change of -30.4%, with a Zacks Consensus Estimate change of -8.3% over the last 30 days [6][7]

Market Overview - Volatile markets are prompting investors to seek stability through dividend stocks, which offer both upside potential and solid income [1] - Recent U.S.-China tariff agreement provides some relief, but concerns about steep duties under the Trump administration persist [1] Chord Energy (CHRD) - Chord Energy is highlighted as a top dividend pick, reporting solid Q1 2025 results due to better-than-expected well performance and strong cost control [3][4] - The company returned 100% of its adjusted free cash flow to shareholders through share repurchases and declared a base dividend of $1.30 per share, resulting in a 6.8% dividend yield [4] - Analyst Gabriele Sorbara from Siebert Williams Shank maintains a buy rating and raises the price target to $125, citing attractive assets and strong free cash flow [5][8] - Chord Energy reduced its 2025 capital expenditure outlook by $30 million while maintaining production guidance, supported by operational efficiencies [6][7] Chevron (CVX) - Chevron reported Q1 results reflecting lower oil prices, with a slowdown in stock buybacks expected in Q2 2025 due to tariff issues and OPEC+ supply increases [9][12] - The company returned $6.9 billion to shareholders in Q1 through share repurchases of $3.9 billion and dividends of $3.0 billion, offering a 4.8% dividend yield [11] - Analyst Neil Mehta from Goldman Sachs trimmed the price target to $174 but reaffirmed a buy rating, highlighting strong free cash flow generation from major projects [12][13] EOG Resources (EOG) - EOG Resources reported strong Q1 2025 earnings, returning $1.3 billion to shareholders, including $538 million in dividends and $788 million in share repurchases [15][16] - The company declared a dividend of $0.975 per share, resulting in a 3.4% dividend yield, and plans to continue returning at least 100% of free cash flow to shareholders [16][19] - Analyst Scott Hanold from RBC Capital reaffirmed a buy rating with a price target of $145, noting a 3% reduction in capital budget and a 0.6% decrease in organic oil production [17][20]