Chord Energy (US:CHRD)2023-02-23 19:28Financial Data and Key Metrics Changes - In 2022, Chord Energy generated approximately $1.3 billion of adjusted free cash flow and returned over $1.2 billion to shareholders, representing about 93% of the free cash flow [11][24] - The company reported a variable dividend of $3.55 per share for Q4 2022, combined with a base dividend of $1.25 per share, yielding a total quarterly dividend of $4.80 per share [40] - Cash G&A expense for Q4 was $22.4 million, slightly higher than expected due to the merger accounting policies [22] Business Line Data and Key Metrics Changes - The company plans to complete and deliver 90 to 94 gross operated wells in 2023, with an average working interest of approximately 73% [14] - Completions activity is expected to be concentrated in the second and third quarters of 2023, with production anticipated to increase sequentially each quarter [41] Market Data and Key Metrics Changes - Crude realizations remained at a premium to WTI, averaging $0.99 premium over the quarter [46] - NGL prices fell more than WTI sequentially, resulting in lower NGL realizations as a percentage of crude [47] Company Strategy and Development Direction - The merger created a company with substantial scale in the Williston Basin, focusing on operational and corporate synergies to enhance value [4][10] - Chord Energy aims to maintain a strong return of capital framework, with a focus on shareholder returns and sustainable free cash flow [8][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration process and the company's future, highlighting a strong financial outlook capable of supporting high levels of sustainable free cash flow [10][34] - The company expects to invest approximately $825 million to $865 million in capital in 2023, accounting for inflation and previous capital pushed from Q4 2022 [17] Other Important Information - Chord plans to resume publishing a full sustainability report in 2023, focusing on GHG intensity and freshwater intensity improvements [19] - The company has approximately $593 million in cash as of December 31, 2022, with nothing drawn on its $2.75 billion borrowing base [50] Q&A Session Summary Question: What are your thoughts on the productivity of refracs in the Sanish area? - Management is exploring refracs and believes new technologies will allow them to gain value from these opportunities [28] Question: Can you provide insight on the Bakken takeaway and marketing group changes? - Management noted strong differentials in the basin and emphasized their large takeaway capacity, indicating a robust crude market [58] Question: How does the move to more 3-mile laterals impact your decline rate? - The transition to 3-mile laterals is expected to result in flatter decline rates and improved production delivery [64][66] Question: What is the rationale behind the year-over-year difference in Q4 2022 versus Q4 2023? - The difference is attributed to operational planning and the desire to avoid weather-related issues, leading to a more concentrated completion schedule [92] Question: What are the potential bolt-on opportunities in the Bakken? - Management sees a mix of opportunities in the basin and is open to accretive bolt-ons that enhance the organization [98]