[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]

Group 1 - Chord Energy (NASDAQ: CHRD) was formed from the merger of Whiting Petroleum and Oasis Petroleum, and it has since acquired Bakken assets from Exxon Mobil (XOM) [1] - In the previous year, Chord Energy acquired Enerplus for $3.8 billion, which also had significant assets in the US Bakken region [1] - Laura Starks, founder and CEO of Starks Energy Economics, has extensive experience in energy investments and covers various sectors including oil and natural gas [1]

[PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20%E2%80%94%20Financial%20Statements%20%28Unaudited%29) For Q1 2025, Chord Energy reported total revenues of **$1.22 billion** and net income of **$219.8 million**, reflecting the significant impact of the Enerplus acquisition on financial performance and asset base [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$13.06 billion**, with total liabilities at **$4.44 billion** and stockholders' equity at **$8.62 billion**, reflecting minor shifts from year-end 2024 due to share repurchases and dividends Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,597,288 | $1,579,118 | | **Total Property, Plant and Equipment, net** | $10,714,708 | $10,686,169 | | **Total Assets** | **$13,058,608** | **$13,032,007** | | **Total Current Liabilities** | $1,803,199 | $1,683,978 | | **Long-Term Debt** | $798,824 | $842,600 | | **Total Liabilities** | **$4,439,944** | **$4,329,745** | | **Total Stockholders' Equity** | **$8,618,664** | **$8,702,262** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues increased to **$1.22 billion** with net income of **$219.8 million**, driven by the Enerplus acquisition, though diluted EPS decreased to **$3.66** due to higher shares outstanding Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $1,215,047 | $1,085,260 | | Oil, NGL and gas revenues | $1,103,425 | $748,162 | | **Total Operating Expenses** | $882,567 | $813,623 | | **Operating Income** | $337,996 | $272,939 | | **Net Income** | **$219,837** | **$199,353** | | **Diluted EPS** | **$3.66** | **$4.65** | | Weighted Average Diluted Shares | 59,665 | 42,747 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$656.9 million** in Q1 2025, while investing and financing activities resulted in net cash outflows primarily for capital expenditures, debt repayments, and share repurchases Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $656,893 | $406,698 | | **Net cash used in investing activities** | ($292,270) | ($204,887) | | **Net cash used in financing activities** | ($365,819) | ($223,455) | | **Decrease in cash and cash equivalents** | ($1,196) | ($21,644) | | **Cash and cash equivalents, end of period** | $35,754 | $296,354 | [Note 8: Acquisitions](index=19&type=section&id=Note%208.%20Acquisitions) The company completed the Enerplus Corporation acquisition on May 31, 2024, for approximately **$4.61 billion**, primarily allocating **$5.25 billion** to oil and gas properties and recognizing **$530.6 million** in goodwill Enerplus Acquisition Purchase Price Consideration (in thousands) | Component | Amount | | :--- | :--- | | Common stock issued to Enerplus shareholders | $3,732,137 | | Cash paid to Enerplus shareholders | $375,813 | | Cash paid to settle Enerplus equity-based awards | $102,393 | | Cash paid to settle Enerplus credit facility | $395,000 | | Cash paid for retention bonus to Enerplus employees | $5,920 | | **Total consideration transferred** | **$4,611,263** | - The acquisition was accounted for using the acquisition method, with assets and liabilities recorded at fair value, and the purchase price allocation remains preliminary and subject to change for up to one year[71](index=71&type=chunk)[72](index=72&type=chunk) - Unaudited pro forma results for Q1 2024, assuming the acquisition occurred on January 1, 2023, show revenues of **$1.42 billion** and net income of **$259.0 million**[75](index=75&type=chunk)[76](index=76&type=chunk) [Note 10: Long-Term Debt](index=21&type=section&id=Note%2010.%20Long-Term%20Debt) In March 2025, the company issued **$750.0 million** of 6.750% senior notes due 2033, using proceeds to repurchase **$400.0 million** of 2026 notes and repay credit facility borrowings, resulting in total long-term debt of **$798.8 million** - Issued **$750.0 million** of 6.750% senior unsecured notes due 2033 in a private placement on March 13, 2025[85](index=85&type=chunk) - Concurrently, the company purchased and satisfied its **$400.0 million** of 6.375% senior notes due 2026, resulting in a loss on debt extinguishment of **$3.5 million**[88](index=88&type=chunk) - As of March 31, 2025, the company had **$60.0 million** in borrowings outstanding under its credit facility and an unused borrowing capacity of **$1.9 billion**[81](index=81&type=chunk) [Note 14: Stockholders' Equity](index=24&type=section&id=Note%2014.%20Stockholders%27%20Equity) In Q1 2025, the company declared a **$1.30 per share** base cash dividend and repurchased **1,994,496 shares** for **$216.5 million** under its **$750.0 million** share repurchase program, with **$376.1 million** remaining Dividends Declared per Share | Period | Base Dividend | Variable Dividend | Total Dividend | | :--- | :--- | :--- | :--- | | Q1 2025 | $1.30 | $— | $1.30 | | Q1 2024 | $1.25 | $2.00 | $3.25 | - During Q1 2025, the company repurchased **1,994,496 shares** of common stock for a total cost of **$216.5 million**[110](index=110&type=chunk) - As of March 31, 2025, **$376.1 million** remained available under the **$750.0 million** share repurchase program authorized in October 2024[109](index=109&type=chunk)[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant impact of the May 2024 Enerplus acquisition on financial comparability, highlighting expanded Q1 2025 operations with **270,855 Boepd** production, strong **$1.9 billion** liquidity, and successful debt refinancing [Overview and Recent Developments](index=30&type=section&id=Overview%20and%20Recent%20Developments) The company, an independent E&P firm in the Williston Basin, averaged **270,855 Boepd** production in Q1 2025, issued **$750 million** in new senior notes, paid a **$1.30 per share** dividend, and repurchased **$216.5 million** of common stock - Production volumes averaged **270,855 Boepd** (57% oil) in Q1 2025[134](index=134&type=chunk) - Net cash from operations was **$656.9 million** and net income was **$219.8 million** in Q1 2025[134](index=134&type=chunk) - Key shareholder return activities in Q1 2025 included paying a **$1.30 per share** base dividend and repurchasing **$216.5 million** of common stock[134](index=134&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q1 2025 revenues increased to **$1.22 billion** from **$1.09 billion** YoY due to higher production volumes from the Enerplus acquisition, despite lower realized crude oil prices, while operating expenses increased but LOE per Boe decreased to **$9.56** Production and Revenue Summary | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Total Revenues (in thousands)** | $1,215,047 | $1,454,674 | $1,085,260 | | **Average Daily Production (Boepd)** | 270,855 | 273,546 | 168,424 | | **Avg. Crude Oil Sales Price ($/Bbl)** | $69.11 | $68.79 | $75.32 | | **Avg. NGL Sales Price ($/Bbl)** | $14.18 | $10.07 | $15.09 | | **Avg. Natural Gas Sales Price ($/Mcf)** | $2.30 | $1.21 | $1.16 | Key Expenses per Boe | Expense per Boe | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Lease operating expenses | $9.56 | $9.60 | $10.39 | | Gathering, processing & transportation | $3.01 | $2.90 | $3.52 | | Production taxes | $3.06 | $3.54 | $4.17 | - The increase in revenues and expenses in Q1 2025 compared to Q1 2024 is primarily due to the expanded operations following the Enerplus acquisition[131](index=131&type=chunk)[133](index=133&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintained **$1.94 billion** in available liquidity, including **$35.8 million** in cash and **$1.91 billion** in unused credit capacity, and successfully refinanced debt by issuing **$750 million** in 2033 Senior Notes - Total available liquidity was **$1,944.9 million** as of March 31, 2025, including **$35.8 million** in cash and **$1,909.2 million** of unused borrowing capacity[171](index=171&type=chunk) - In March 2025, the company issued **$750.0 million** of 6.750% senior notes due 2033 and used the proceeds to retire its 2026 senior notes and repay credit facility borrowings[180](index=180&type=chunk)[181](index=181&type=chunk) Capital Expenditures - Q1 2025 (in thousands) | Category | Amount | | :--- | :--- | | E&P | $354,781 | | Other capital expenditures | $658 | | Capitalized interest | $1,079 | | Acquisitions | $17,876 | | **Total capital expenditures** | **$374,394** | - Net cash from operating activities increased by **$250.2 million** YoY to **$656.9 million**, primarily due to expanded operations from the Enerplus acquisition[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces primary market risks from commodity price fluctuations, interest rate changes, and counterparty credit risk, which are managed through hedging and dealing with high-credit-quality institutions - The company's primary market risks are commodity price fluctuations, interest rate changes, and counterparty credit risk[195](index=195&type=chunk) - A **10%** increase in crude oil prices would reduce the fair value of the unrealized derivative asset position by approximately **$63.5 million**, while a **10%** decrease would increase it by **$62.3 million**[198](index=198&type=chunk) - Interest rate risk is mainly tied to the variable-rate Credit Facility, as the **$750.0 million** in senior notes have a fixed rate, and a **100 basis point** increase in rates would not materially impact annual interest expense based on current borrowings[200](index=200&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20%E2%80%94%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, and is currently integrating the internal controls of the recently acquired Enerplus Corporation - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[205](index=205&type=chunk) - Following the Enerplus acquisition on May 31, 2024, the company is in the process of incorporating Enerplus's controls into its internal control over financial reporting[206](index=206&type=chunk) [PART II — OTHER INFORMATION](index=43&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Risk Factors](index=43&type=section&id=Item%201A.%20%E2%80%94%20Risk%20Factors) The company reports no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in risk factors from those described in the 2024 Annual Report[210](index=210&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **1,994,496 shares** of common stock for **$216.5 million** under its publicly announced share repurchase program, with no unregistered equity securities sales Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Jan 2025 | 364,624 shares | $122.29 per share | 282,869 shares | | Feb 2025 | 309,524 shares | $111.74 per share | 275,416 shares | | Mar 2025 | 1,436,771 shares | $105.49 per share | 1,436,211 shares | | **Total** | **2,110,919 shares** | **$109.31 per share** | **1,994,496 shares** | - In Q1 2025, a total of **1,994,496 shares** were repurchased for **$216.5 million** under the share repurchase program[212](index=212&type=chunk)