Chord Energy (CHRD)2025-02-27 21:12Production and Financial Performance - Production volumes averaged 232,737 Boepd (57% oil) for the year ended December 31, 2024[367]. - Total revenues for the year ended December 31, 2024, increased to $5.25 billion, up from $3.90 billion in 2023, representing a 34.8% increase[369]. - Crude oil revenues rose by $735.4 million to $3.57 billion, primarily due to higher production volumes from expanded operations[370]. - Average daily production increased to 232,737 Boepd in 2024, compared to 173,425 Boepd in 2023, marking a 34.2% increase[369]. - NGL revenues decreased by $15.7 million to $162.1 million, primarily due to lower realized prices, despite higher production volumes[371]. - Natural gas revenues fell by $16.0 million to $102.8 million, driven by lower realized prices, offset by increased production volumes[372]. - Total operating expenses rose to $4.17 billion in 2024, up from $2.62 billion in 2023, reflecting a 59.1% increase[375]. - Net income for the year ended December 31, 2024, was $848.6 million, down from $1.02 billion in 2023, a decrease of 16.9%[375]. - Operating income for 2024 was $1,100,067, a decrease of 14% compared to $1,273,182 in 2023[478]. - Net income from continuing operations was $848,627, down 17% from $1,023,779 in 2023[478]. - Basic earnings per share from continuing operations decreased to $16.32, down 34% from $24.59 in 2023[478]. Capital Expenditures and Investments - E&P and other capital expenditures were $1.2 billion for the year ended December 31, 2024[367]. - Capital expenditures for 2024 were $1,179,075, an increase from $905,673 in 2023[483]. - The company incurred merger-related costs of $89.3 million during the year ended December 31, 2024, primarily for legal and advisory services[392]. - Total capital expenditures from continuing operations for the year ended December 31, 2024, were $1.252 billion, slightly down from $1.288 billion in 2023[413]. - The company completed the acquisition of Enerplus Corporation on May 31, 2024, with Enerplus shareholders receiving 0.10125 shares of Chord common stock and $1.84 in cash per share[488][490]. - The company recorded $5.3 billion related to oil and gas properties in the acquisition of Enerplus, with fair value calculated using an income approach based on net discounted cash flows[468]. Dividends and Share Repurchase - Paid $10.15 per share base-plus-variable cash dividend for the year ended December 31, 2024[367]. - Declared a base cash dividend of $1.30 per share of common stock on February 25, 2025, payable on March 26, 2025[367]. - The company declared base-plus-variable cash dividends of $10.15 per share, totaling $507.6 million for the year ended December 31, 2024[415]. - Repurchased $442.8 million of common stock during the year ended December 31, 2024, with $592.6 million remaining under the new $750 million share repurchase program[367]. - During the year ended December 31, 2024, the company repurchased 3,114,007 shares at a weighted average price of $142.20 per share, totaling $442.8 million[418]. Liquidity and Debt - As of December 31, 2024, the company had $1.1 billion in liquidity, including $37.0 million in cash and cash equivalents and $1.0 billion in unused borrowing capacity[389]. - The company had $400.0 million of 6.375% senior unsecured notes maturing on June 1, 2026, as of December 31, 2024[402]. - As of December 31, 2024, the company had a senior secured revolving credit facility with a borrowing base of $3.0 billion and net borrowings of $445.0 million[400]. - The company’s long-term debt increased to $842.6 million in 2024 from $395.9 million in 2023, indicating increased leverage[474]. - Cash and cash equivalents at the end of 2024 were $36,950,000, down from $317,998,000 at the end of 2023[484]. Operating Costs and Expenses - Lease operating expenses ("LOE") were $9.68 per Boe for the year ended December 31, 2024[367]. - Depreciation, depletion, and amortization expenses increased to $1.11 billion, up from $598.6 million, primarily due to expanded operations[380]. - Interest expense increased by $27.9 million to $56.5 million for the year ended December 31, 2024, primarily due to higher borrowings under the Credit Facility[386]. - Total operating expenses rose to $4,168,103, a 59% increase from $2,620,695 in 2023[478]. - Cash paid for interest in 2024 was $49,509,000, significantly higher than $26,371,000 in 2023[484]. Reserves and Production Metrics - Estimated net proved reserves were 883.0 MMBoe as of December 31, 2024, with a Standardized Measure of $8.4 billion and PV-10 of $10.3 billion[367]. - TIL'd 142 gross (93 net) operated wells for the year ended December 31, 2024[367]. - The production tax rate increased to 8.7% in 2024 from 8.3% in 2023, driven by new wells with higher associated oil production tax rates[379]. - The SEC Price for crude oil was $75.48 per Bbl and $2.13 per MMBtu for natural gas for the year ended December 31, 2024[424]. Market and Credit Risks - The Company faces market and credit risks related to crude oil, NGLs, and natural gas prices, which can be volatile and affect financial performance[543]. - The Company believes credit-related losses from economic fluctuations will remain immaterial to its long-term results[544]. - The Company manages market and counterparty credit risk, maintaining high credit quality among its customers and limiting exposure to any single financial institution[545]. Internal Controls and Reporting - The company’s internal control over financial reporting was assessed with Enerplus excluded due to its acquisition, highlighting the impact of significant acquisitions on financial reporting processes[460]. - The Company accounts for business combinations under the acquisition method, recognizing identifiable assets and liabilities at estimated acquisition date fair value[522]. - The Company recognizes revenue in accordance with FASB ASC 606, with revenues predominantly derived from contracts for the sale of crude oil, NGLs, and natural gas[530].