Chord Energy (CHRD)2024-11-07 20:34Financial Performance - Oil, NGL, and gas revenues for Q3 2024 reached $1,121,012 thousand, a 33.4% increase from $840,625 thousand in Q3 2023[15] - Total revenues for Q3 2024 were $1,450,467 thousand, up 29.1% from $1,123,368 thousand in Q3 2023[15] - Operating income for Q3 2024 was $272,893 thousand, a decrease of 22.6% compared to $352,737 thousand in Q3 2023[15] - Net income for Q3 2024 was $225,316 thousand, compared to $209,076 thousand in Q3 2023, reflecting an increase of 7.8%[15] - Basic earnings per share for Q3 2024 were $3.63, down from $5.01 in Q3 2023, representing a decline of 27.5%[15] - Total revenues for the nine months ended September 30, 2024, were $3,796,408 thousand, up 29.5% from $2,931,956 thousand in the same period of 2023[31] - Net income for the nine months ended September 30, 2024, was $638,030 thousand, a decrease of 12% compared to $722,146 for the same period in 2023[21] - The company’s net income per share for the nine months ended September 30, 2024, was $13.13, compared to $14.50 for the same period in 2023[57] Assets and Liabilities - Total assets increased to $13,034,163 thousand as of September 30, 2024, compared to $6,926,150 thousand on December 31, 2023, representing an increase of approximately 88%[10] - Current assets rose to $1,552,136 thousand, up from $1,424,551 thousand, reflecting a growth of about 9%[10] - Oil and gas properties increased significantly to $12,434,669 thousand from $6,320,243 thousand, marking an increase of approximately 97%[10] - Total liabilities reached $4,257,249 thousand, compared to $1,849,526 thousand, indicating an increase of around 130%[10] - Stockholders' equity grew to $8,776,914 thousand from $5,076,624 thousand, which is an increase of approximately 73%[12] - Current liabilities increased to $1,661,780 thousand from $1,165,459 thousand, reflecting a growth of approximately 43%[10] - Long-term debt rose to $867,173 thousand from $395,902 thousand, representing an increase of about 119%[10] - Total accrued liabilities increased to $738,991 thousand as of September 30, 2024, compared to $493,381 thousand at December 31, 2023, indicating a 49.9% increase[33] Acquisitions and Investments - The company completed the acquisition of Enerplus Corporation on May 31, 2024, impacting financial results from that date forward[9] - The total consideration for the acquisition of Enerplus was $4,611.26 million, which included 20,680,097 shares of common stock and $375.8 million in cash[51] - Goodwill recognized from the Enerplus acquisition totaled $539.8 million, primarily due to expected operational and financial synergies[50] - The net assets acquired from Enerplus amounted to $4,071.47 million after accounting for liabilities assumed[53] - The company recorded total assets acquired from Enerplus at an estimated fair value of $5,856.75 million[53] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to $1,530,772, up 20% from $1,276,517 in the prior year[21] - Capital expenditures for the nine months ended September 30, 2024, were $877,381, an increase of 37% compared to $642,584 in 2023[21] - The company experienced a net cash used in investing activities of $1,494,111, an increase from $1,112,318 in the previous year[21] - Total capital expenditures for the nine months ended September 30, 2024, amounted to $904.95 million, with $328.43 million in E&P expenditures for the third quarter[119] Shareholder Returns - Total dividends declared for the nine months ended September 30, 2024, amounted to $419.3 million, compared to $400.8 million for the same period in 2023[74] - The company repurchased 1,509,996 shares of common stock at a weighted average price of $157.47 per share for a total cost of $237.8 million during the nine months ended September 30, 2024[75] - The company declared a base-plus-variable cash dividend of $1.44 per share on November 6, 2024, payable on December 12, 2024[74] Operational Efficiency - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[15] - Production volumes averaged 280,815 Boepd, with crude oil volumes of 158,793 Bopd in Q3 2024, representing a significant increase from 207,187 Boepd in Q2 2024[95] - Lease operating expenses (LOE) were $9.56 per Boe in Q3 2024, reflecting operational efficiency[95] - The company is focused on optimizing transportation and processing costs through long-term contracts in oversupplied areas[81] Derivative Instruments and Risk Management - The company reported a net gain on derivative instruments of $52,721 thousand in Q3 2024, compared to a loss of $85,205 thousand in Q3 2023[15] - The Company reported a net gain on commodity derivatives of $54,143 thousand for the three months ended September 30, 2024, compared to a loss of $91,483 thousand for the same period in 2023[46] - The Company has fixed-price swaps for crude oil volumes totaling 460,000 Bbls at an average price of $73.82 for 2024[42] - As of September 30, 2024, total derivative assets amounted to $123,697 thousand, with $86,654 thousand net after offsets[48] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2024, was 26.1%, higher than the statutory federal rate of 21% due to state income taxes[67] - The company is currently evaluating the impact of new accounting standards and SEC rules on its financial statements and disclosures[30] Market Commitments - The company has volume commitment agreements requiring the delivery of approximately 49.7 million barrels of crude oil, 8.6 million barrels of NGLs, and 492.4 billion cubic feet of natural gas[80] - Future commitments under these agreements total approximately $629.1 million over the next five years, with the highest commitment of $158.2 million in Year 2[81]