Chord Energy (CHRD)2024-11-07 19:30Financial Data and Key Metrics Changes - Chord Energy reported adjusted free cash flow of approximately 9.56 per BOE, reflecting better downtime and lower workover costs [42] - Capital expenditures for the quarter were 1.50 below WTI, while natural gas realizations were below the low end of the guidance at 20% of Henry Hub [40] - The company noted that AECO pricing dislocation negatively impacted natural gas realizations, which are expected to improve with recent pricing trends [41][46] Company Strategy and Development Direction - Chord Energy aims to hold oil volumes steady at 152,000 to 153,000 barrels per day from 2025 through 2027, with annual capital expenditures of 200 million in annual synergies [15][35] - Chord is committed to sustainable energy production and has published its 2023 sustainability report, highlighting efforts in emissions reduction and corporate governance [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational performance and the ability to deliver on its three-year plan, emphasizing continuous improvement and efficiency gains [50] - The management acknowledged the impact of recent wildfires in North Dakota but indicated that production curtailments were short-lived [8][7] - The company is optimistic about the Williston Basin's investment attractiveness, countering misconceptions about the Bakken's cost of supply [17][16] Other Important Information - Chord repurchased $146 million of shares during the quarter, representing 93% of capital return, and plans to continue buybacks in the current valuation environment [11] - The company has shifted to longer laterals and wider spacing, which has improved capital efficiency and reduced decline rates [34][30] Q&A Session Summary Question: Are there various commodity price scenarios where you would alter the suggested spend? - Management indicated that the plan is geared around the current commodity price environment and would respond to market signals accordingly [54][55] Question: How do you see well breakeven across different regions? - Management noted similar returns and investment opportunities across different regions, with a focus on wider spacing and longer laterals [58] Question: Can you provide color on updated 3-mile EURs? - Management expressed confidence in the performance of 3-mile laterals, attributing improvements to successful cleaning out to the toe of the wells [60][62] Question: How do you think about the mix of properties across the Bakken? - Management expects a mix of operated and non-operated wells, with a slight decrease in operated well count due to increased lateral lengths [76] Question: What percent of the program will simul-frac migrate towards? - Management indicated that simul-frac will be a significant part of the next year's plan, enhancing efficiency [80] Question: How do you think about spacing on Enerplus acreage? - Management stated that spacing will be similar to current practices but may vary based on subsurface geology [88][87]