Chord Energy (US:CHRD)2025-11-06 19:44Revenue and Production - Crude oil, NGL, and natural gas revenues for the nine months ended September 30, 2025, increased due to the Arrangement with Enerplus, which expanded operations primarily in the Williston Basin[134] - Production volumes averaged 280,857 Boepd (55% oil), including crude oil volumes of 155,698 Bopd in the third quarter of 2025[135] - Crude oil revenues increased by $31.9 million to $910.8 million for the three months ended September 30, 2025, primarily due to higher realized prices and production volumes sold[138] - NGL revenues decreased by $3.7 million to $24.8 million for the three months ended September 30, 2025, mainly due to lower realized prices[140] - Natural gas revenues decreased by $11.6 million to $31.2 million for the three months ended September 30, 2025, primarily due to lower realized prices and production volumes sold[141] - For the nine months ended September 30, 2025, crude oil revenues increased by $145.0 million to $2,745.9 million, with $491.4 million attributed to expanded operations[143] - Natural gas revenues increased by $103.0 million to $159.9 million for the nine months ended September 30, 2025, with $69.0 million attributed to expanded operations[145] Financial Performance - Net cash provided by operating activities was $559.0 million, and net income was $130.1 million in the third quarter of 2025[135] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,635.7 million, an increase of $104.9 million compared to the same period in 2024[184] - The effective tax rate was 131.3% for the nine months ended September 30, 2025, significantly impacted by a goodwill impairment charge[168] Expenses and Costs - E&P and other capital expenditures (excluding capitalized interest) were $333.7 million in the third quarter of 2025[135] - Lease operating expenses ("LOE") were $9.62 per Boe in the third quarter of 2025[135] - Total operating expenses for the nine months ended September 30, 2025, were $3,606.7 million, an increase from $2,975.4 million in the prior year[147] - Lease operating expenses decreased by $8.4 million to $248.6 million for the three months ended September 30, 2025, due to reduced workover activity[148] - Purchased oil and gas expenses increased by $109.2 million to $340.9 million for the three months ended September 30, 2025, due to higher volumes and prices[149] - Production taxes increased by $10.5 million to $79.5 million for the three months ended September 30, 2025, with a production tax rate of 8.2%, up from 7.3% in the previous quarter[150] - General and administrative expenses decreased by $10.7 million to $21.9 million for the three months ended September 30, 2025, primarily due to lower corporate and merger-related costs[151] - Lease operating expenses increased by $155.7 million to $738.6 million for the nine months ended September 30, 2025, driven by expanded operations and increased workover costs[156] - Gathering, processing, and transportation expenses rose by $26.0 million to $220.5 million for the nine months ended September 30, 2025, primarily due to expanded operations[157] - Purchased oil and gas expenses decreased by $337.7 million to $684.1 million for the nine months ended September 30, 2025, attributed to lower crude oil prices and volumes[158] - Production taxes decreased by $21.3 million to $223.1 million for the nine months ended September 30, 2025, with a production tax rate of 7.4%, down from 8.8% in the previous year[159] - Depreciation, depletion, and amortization expenses increased by $344.7 million to $1,101.7 million for the nine months ended September 30, 2025, due to higher production volumes and depletion rates[160] Capital Expenditures and Financing - Issued $750.0 million 6.000% senior unsecured notes due October 1, 2030, in September 2025[135] - Completed the 2025 Williston Basin Acquisition for total cash consideration of $542.2 million, funded by proceeds from the issuance of senior notes and cash on hand[131] - The company incurred capital expenditures of $1,044.8 million for the development of oil and gas properties during the nine months ended September 30, 2025[187] - Total capital expenditures for the nine months ended September 30, 2025, were approximately $1,044.8 million, primarily for oil and gas property development[187] - Capital expenditures for the nine months ended September 30, 2025, totaled $1,075.8 million, with $1,042.9 million allocated to exploration and production (E&P) activities[189] - The company issued the 2030 Senior Notes resulting in net proceeds of $739.6 million, which were used for the Williston Basin Acquisition and general corporate purposes[180] - The company recorded deferred financing costs of $10.4 million in connection with the issuance of the 2030 Senior Notes[180] Shareholder Returns - Paid a base cash dividend of $1.30 per share on September 8, 2025, and declared another dividend of the same amount payable on December 5, 2025[135] - A base cash dividend of $1.30 per share was declared on November 4, 2025, payable on December 5, 2025[190] - The company repurchased 3,388,561 shares of common stock at a weighted average price of $104.61 per share, totaling $354.5 million during the nine months ended September 30, 2025[193] - The share repurchase program authorized in August 2025 allows for up to $1.0 billion in common stock repurchases, replacing a previous $750 million program[193] - During the nine months ended September 30, 2025, the company repurchased 3,388,561 shares at an average price of $104.61 per share, costing a total of $354.5 million[193] - As of September 30, 2025, there was $962.2 million remaining under the $1.0 billion share repurchase program[193] - Future dividend payments will depend on the company's earnings, financial condition, and other relevant considerations[192] Liquidity and Financial Position - As of September 30, 2025, the company had $2,597.1 million in liquidity, including $1,967.9 million in unused borrowing capacity under the Credit Facility[169] - As of September 30, 2025, the company had a senior secured revolving credit facility with a borrowing base of $2.75 billion and unused borrowing capacity of $1,967.9 million[178] - The company maintained compliance with the financial covenants under the Credit Facility as of September 30, 2025[178] - The company has commodity derivative contracts covering 3,128 MBbls of crude oil and 12,420,000 MMBtu of natural gas production for 2025[176] - The company recorded merger-related costs of $8.1 million during the nine months ended September 30, 2025, primarily related to severance and legal services[174] - The company had estimated future commitments under contracts of $464.0 million as of September 30, 2025[177] Accounting and Compliance - There have been no material changes in critical accounting policies and estimates from the previous annual report[196]