Here's the $37 Million Energy Bet That One Fund Dumped as Shares Sit 50% Below Last Year’s Highs

Company Overview - Chord Energy Corporation produces and sells crude oil, natural gas, and natural gas liquids primarily from assets in the Williston Basin [9] - The company generates revenue through the exploration, development, and sale of hydrocarbons, leveraging operational expertise in upstream energy production [9] - It serves customers in the energy sector, including refiners, marketers, and utility companies seeking reliable oil and gas supply in North America [10] - Chord Energy's business model centers on efficient resource extraction and disciplined capital allocation to support long-term growth [10] Recent Developments - SIR Capital Management reported a complete exit from its holding in Chord Energy Corporation, selling all 377,585 shares for $36.57 million, which accounted for 3.26% of the fund's assets last quarter [2][3][7] - As of the latest filing, Chord Energy shares were priced at $90.91, down 20% over the past year, underperforming the S&P 500, which is up about 15% in the same period [4] - The company has a market capitalization of $5.21 billion, with a revenue of $5.16 billion and a net income of $170.64 million for the trailing twelve months [5] Operational Performance - In the most recent quarter, Chord Energy delivered solid production above the midpoint of guidance, generating more than $575 million in adjusted EBITDA [11] - The company returned a meaningful share of free cash flow to shareholders through dividends and buybacks, indicating a liquid balance sheet [11] - Management continues to emphasize capital discipline and efficiency gains, suggesting that the fundamentals do not indicate a distressed asset [11] Market Context - The exit by SIR Capital Management suggests that the opportunity cost of staying invested in Chord Energy has grown too high, particularly in light of ongoing commodity volatility and the stock's struggle to regain momentum [12]