Chord Energy (US:CHRD)2025-11-04 21:45Production and Guidance - Chord Energy reported Q3 2025 oil production of 155.7 MBopd, exceeding the guidance range of 153.5 – 157.5 MBopd[7] - The company raised its FY25 oil volume guidance to 153.3 MBopd, excluding the impact of the recent XTO acquisition, which is expected to contribute approximately 4.0 MBopd in Q4 2025[18] - The company plans to TIL 115 – 125 gross operated wells in FY25, with 23 – 33 gross operated TILs planned for Q4 2025[17] Financial Performance - Total revenues for Q3 2025 were $966.8 million, a decrease of 13.7% compared to $1,121.0 million in Q3 2024[22] - Adjusted EBITDA for Q3 2025 was $577.8 million, down from $674.5 million in Q3 2024, reflecting a decline of 14.3%[22] - Net cash provided by operating activities decreased to $559.0 million in Q3 2025 from $663.2 million in Q3 2024, a decline of 15.7%[22] - Operating income for Q3 2025 was $170,790,000, down from $272,893,000 in Q3 2024, reflecting a decline of 37.5%[39] - Net income for the three months ended September 30, 2025, was $130,111 thousand, compared to $225,316 thousand in 2024, indicating a decline[59] Cash Flow and Shareholder Returns - Chord returned 69% of adjusted free cash flow to shareholders through a base dividend of $1.30 per share and $83.0 million in share repurchases[6] - Adjusted free cash flow for Q3 2025 was $218.6 million, compared to $312.5 million in Q3 2024, reflecting a decline of 30%[22] - The company executed marketing agreements expected to deliver annualized free cash flow savings of $30 million to $50 million[11] Capital Expenditures and Debt - Chord's capital expenditures for FY25 are maintained at $1.35 billion, with an additional $15 million allocated to support XTO volumes in 2026[18] - Capital expenditures (CapEx) for Q3 2025 totaled $336.3 million, a decrease from $374.4 million in Q1 2025 and $365.0 million in Q2 2025[24] - As of September 30, 2025, total debt stood at $1,500.0 million, with cash and cash equivalents of $142.0 million, resulting in total liquidity of $2,109.9 million[26] - Long-term debt increased significantly to $1,478,827,000 as of September 30, 2025, from $842,600,000 at the end of 2024[39] Asset Performance and Expenses - Chord's lease operating expenses (LOE) for Q3 2025 were reported at $9.62 per Boe, towards the high end of guidance due to curtailment of Marcellus volumes[6] - The company reported a depreciation, depletion, and amortization expense of $1,101,725,000 for the nine months ended September 30, 2025, up from $757,036,000 in 2024[41] - General and administrative expenses for the three months ended September 30, 2025, were $21,861 thousand, compared to $52,115 thousand in 2024, reflecting a significant reduction[50] Earnings and Share Metrics - Basic earnings per share for Q3 2025 were $2.26, compared to a loss of $6.71 in Q2 2025 and $3.63 in Q3 2024[22] - Diluted earnings per share for Q3 2025 decreased to $2.28 from $3.60 in Q3 2024, representing a decline of 36.8%[67] - Adjusted diluted earnings per share for the nine months ended September 30, 2025, was $8.38, down from $12.93 in the same period of 2024, a decrease of 35.0%[67] Market and Impairment Charges - The company reported a non-cash goodwill impairment charge of $539.3 million for the nine months ended September 30, 2025, due to a decline in market capitalization[58] - The company incurred merger costs of $77 thousand for the three months ended September 30, 2025, compared to $17,503 thousand in 2024[65] Other Financial Metrics - Cash and cash equivalents increased to $629,208,000 as of September 30, 2025, from $36,950,000 at the end of 2024[39] - Total current assets rose to $2,064,152,000 as of September 30, 2025, compared to $1,579,118,000 at the end of 2024, marking an increase of 30.7%[39] - The total liabilities increased to $5,023,373,000 as of September 30, 2025, compared to $4,329,745,000 at the end of 2024[39]