Chord Energy (CHRD) - 2025 Q2 - Quarterly Results

Key Highlights and Updates 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] - 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] - The company updated its FY25 outlook, raising oil production guidance by 500 Bopd and reducing capital expenditure guidance by $20 million at the midpoint[6] Q2 2025 Operational and Financial Performance Chord Energy surpassed Q2 2025 production targets and managed capital efficiently, despite reporting a GAAP net loss due to a goodwill impairment Performance vs. Guidance Q2 2025 production exceeded guidance across all commodities, with total volumes reaching 281.9 MBoepd, while capital expenditures were at the low end of the forecast - Q2 2025 Actuals vs. Guidance | Metric | 2Q25 Actual | 2Q25 Guidance | | :--- | :--- | :--- | | Total Volumes (MBoepd) | 281.9 | 268.3 – 275.0 | | Oil Volumes (MBopd) | 156.7 | 153.0 – 156.0 | | E&P & Other CapEx ($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] Key Financial Metrics 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 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] Capital Expenditures 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 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] - 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] - The Board of Directors has authorized a new $1 billion share repurchase program, which replaces the existing program[11] Updated 2025 Outlook 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 ~$120 million (~20%) increase in FY25 Adjusted FCF compared to the original plan, driven by improved capital efficiency and lower operating costs[17] - FY25 Guidance Details | Metric | FY25 Guidance | | :--- | :--- | | Total Volumes (MBoepd) | 272.5 – 278.3 | | E&P & Other CapEx ($MM) | $1,320 – $1,380 | | LOE ($/Boe) | $9.35 – $9.85 | Financial Position 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 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 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 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 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 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 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 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 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 |