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Chord Energy (CHRD)
NASDAQ:CHRD
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Chord Energy
(NASDAQ:CHRD)
78Outperform
Positive Factors
Earnings
CHRD reported positive 4Q24 results with higher oil production, better realized pricing, lower capex and a lower overall operating cost structure.
Financial Performance
The company's 1Q25 oil volume guidance was approximately 2% better than consensus expectations, which is considered a solid start for the year.
Shareholder Returns
A share buyback of $205 million in 4Q was above expectations, indicating a commitment to returning capital to shareholders.
Valuation
Chord Energy Corporation is valued at $178 per share, and its shares trade at an attractive discount compared to peers, suggesting potential investment opportunities.
Negative Factors
Operational Challenges
Lease operating expenses are expected to trend modestly higher, presenting a potential headwind for the company.
Production Challenges
A significant decline in the number of TILs is expected to lead to lower oil production in the fourth quarter.
Chord Energy (CHRD) vs. S&P 500 (SPY)
Market Cap
$6.71B
Dividend Yield4.43%
Average Volume (3M)1.02M
Price to Earnings (P/E)6.8
Beta (1Y)0.72
Revenue Growth34.76%
EPS Growth-34.10%
CountryUS
Employees762
SectorEnergy
Sector Strength87
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)15.91
Shares Outstanding59,489,483
10 Day Avg. Volume1,135,999
30 Day Avg. Volume1,023,476
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.31
Price to Cash Flow (P/CF)2.90
P/FCF Ratio6.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$160.62Price Target Upside42.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Chord Energy Business Overview & Revenue Model
Company DescriptionChord Energy (CHRD) is an independent energy company primarily engaged in the exploration, development, and production of oil and natural gas. The company operates within the energy sector, focusing on leveraging advanced technologies and efficient operational practices to maximize resource extraction and production efficiency. Chord Energy is committed to maintaining a sustainable approach to resource management while meeting the global demand for energy.
How the Company Makes MoneyChord Energy generates revenue through the sale of oil and natural gas produced from its exploration and production activities. The company's key revenue streams include the direct sale of crude oil and natural gas to various markets including domestic and international buyers. Chord Energy may also engage in hedging activities to manage commodity price risks, which can impact its revenue positively or negatively depending on market conditions. Strategic partnerships and joint ventures with other energy companies can also contribute to its earnings by expanding its operational capabilities and market reach.
Chord Energy Financial Statement Overview
Summary
Chord Energy demonstrates strong financial health with significant revenue growth, robust profitability, and solid cash flow generation. The company maintains low leverage and effective cash management, though operational efficiency could be improved.Income Statement
Chord Energy's income statement reflects a strong financial performance over the TTM period. The company has achieved a Gross Profit Margin of 46.47% and a Net Profit Margin of 16.16%, indicating efficient cost management and robust profitability. The Revenue Growth Rate of 34.73% from the previous year highlights significant expansion. However, a slight decline in EBIT Margin from 32.66% to 21.77% suggests some operational challenges. Overall, the company demonstrates healthy revenue growth and profitability, though attention to operational efficiency is warranted.85
Very Positive
Balance Sheet
The balance sheet of Chord Energy shows a solid financial foundation with a Debt-to-Equity Ratio of 0.10, reflecting low leverage and financial stability. The Return on Equity (ROE) stands at 9.75%, indicating efficient use of equity to generate profits. The Equity Ratio of 66.76% suggests a strong reliance on equity financing, which enhances financial stability. While the company's low debt levels are a positive, the moderate ROE implies room for improvement in generating returns for shareholders.78
Positive
Cash Flow
Chord Energy's cash flow statement is robust, with a Free Cash Flow Growth Rate of 33.68%, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 2.48 demonstrates efficient conversion of income to cash, supporting liquidity and operational resilience. Furthermore, the Free Cash Flow to Net Income Ratio of 1.44 highlights effective cash management. Despite strong cash flows, maintaining these levels while managing capital expenditures remains crucial.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.25B | 3.90B | 3.65B | 1.58B | 1.08B | Gross Profit |
| 1.31B | 1.44B | 1.79B | 670.09M | 240.05M | EBIT |
| 1.10B | 1.27B | 1.58B | 571.90M | 70.68M | EBITDA |
| 2.28B | 1.97B | 1.74B | 123.44M | -3.77B | Net Income Common Stockholders |
| 848.63M | 1.02B | 1.43B | 188.96M | -3.77B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.95M | 318.00M | 593.15M | 172.11M | 15.86M | Total Assets |
| 13.03B | 6.93B | 6.63B | 3.03B | 2.16B | Total Debt |
| 895.42M | 430.62M | 417.42M | 407.14M | 733.60M | Net Debt |
| 858.47M | 112.63M | -175.74M | 235.03M | 717.75M | Total Liabilities |
| 4.33B | 1.85B | 1.95B | 1.81B | 1.15B | Stockholders Equity |
| 8.70B | 5.08B | 4.68B | 1.03B | 915.94M |
| Cash Flow | Free Cash Flow | |||
| 918.15M | 914.18M | 1.39B | 698.39M | -43.62M | Operating Cash Flow |
| 2.10B | 1.82B | 1.92B | 914.14M | 298.19M | Investing Cash Flow |
| -1.75B | -1.43B | -682.56M | -920.77M | -102.28M | Financing Cash Flow |
| -624.46M | -664.70M | -823.10M | 161.19M | -195.70M |
Chord Energy Technical Analysis
Neutral
112.78
Price Trends
111.58
Positive
116.23
Negative
131.24
Negative
Market Momentum
0.26
Negative
57.89
Neutral
84.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHRD, the sentiment is Neutral. The current price of 112.78 is above the 20-day moving average (MA) of 107.15, above the 50-day MA of 111.58, and below the 200-day MA of 131.24, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 84.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHRD.
Chord Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.71B | 6.85 | 12.27% | 4.43% | 34.76% | -34.10% | |
76 Outperform | $69.33B | 11.12 | 22.29% | 2.89% | 0.88% | -13.66% | |
74 Outperform | $23.99B | 7.93 | 21.77% | 3.92% | 3.00% | -21.63% | |
72 Outperform | $46.06B | 19.60 | 8.88% | 1.84% | -4.35% | -37.69% | |
68 Neutral | $7.50B | 9.05 | 20.26% | 4.85% | 17.61% | -75.78% | |
64 Neutral | $46.60B | 10.20 | 12.20% | 5.15% | 31.55% | -9.00% | |
58 Neutral | $9.23B | 5.67 | -5.93% | 7.47% | -0.22% | -73.66% |
* Energy Sector Average
Performance Comparison
CHRD
Chord Energy
112.60
-53.43
-32.18%
APA
APA
20.89
-11.62
-35.74%
DVN
Devon Energy
36.97
-10.92
-22.80%
EOG
EOG Resources
127.38
4.47
3.64%
OXY
Occidental Petroleum
49.01
-14.07
-22.31%
FANG
Diamondback
161.60
-28.39
-14.94%
Chord Energy Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 5.21% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in operational efficiency, shareholder returns, and strategic advancements, while acknowledging some potential challenges related to oil differentials and gas price volatility. The overall sentiment is positive due to the strong financial performance and strategic positioning.Highlights
Record Shareholder Returns
Chord Energy returned $944 million to shareholders in 2024 and repurchased over 5% of its shares outstanding, with plans to continue share repurchases in 2025.
Operational Efficiency and Cost Management
Chord achieved a 12% compounded annual growth rate in oil production per share over the last three years while maintaining a strong balance sheet and paying $2 billion in dividends.
Strong Fourth Quarter Performance
Fourth quarter free cash flow was $282 million, with oil volumes exceeding guidance and operating expenses below expectations.
Capital Efficiency and Long Laterals Strategy
Chord has improved capital efficiency with longer laterals, achieving 50% more EUR for only 20% more capital in three-mile laterals compared to two-mile wells.
Commitment to Sustainability
Chord continues to focus on sustainability, minimizing environmental impact, and being a good community partner.
Lowlights
Potential Oil Differential Widening
Oil differentials are expected to widen in the first quarter of 2025 due to increased basin production growth.
Gas and NGL Price Volatility
Realized gas prices are subject to seasonal volatility, affecting NGL and natural gas realizations.
Uncertain Impact of Tariffs
The potential imposition of tariffs introduces uncertainty regarding oil and gas NGL realizations.
Company Guidance
During the Chord Energy Corporation Fourth Quarter 2024 Earnings Call, CEO Danny Brown provided guidance for 2025, highlighting a commitment to maintaining a capital-efficient development program. The company plans to run a maintenance capital program with five rigs, decreasing to four by midyear, and aims to turn in line 130 to 150 gross wells. Chord expects to invest between $205 million and $225 million on non-operated opportunities, primarily in the Williston Basin, with production anticipated to be similar to the pro forma 2024 at 152,000 to 153,000 barrels of oil per day. Capital investment for 2025 is projected at $1.4 billion, with an expected free cash flow of approximately $860 million based on benchmark prices of $70 per barrel of oil and $3.50 per MMBtu of natural gas. The reinvestment rate is expected to be around 60% for the year, with continued focus on improving capital efficiency and delivering strong investment returns.Chord Energy Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Chord Energy Completes $750 Million Notes Offering
Neutral
Mar 14, 2025
Chord Energy Corporation, on March 13, 2025, completed its offering of $750 million in senior unsecured notes due 2033, guaranteed by its subsidiaries. The proceeds were used to purchase and redeem existing notes, repay credit facility borrowings, and cover related expenses, impacting the company’s debt structure and financial strategy.
Private Placements and FinancingBusiness Operations and Strategy
Chord Energy Announces $750 Million Notes Offering
Positive
Mar 4, 2025
On March 3, 2025, Chord Energy Corporation announced the pricing of a $750 million offering of 6.750% senior unsecured notes due 2033. The proceeds from this offering will be used to finance a tender offer for outstanding 2026 notes, repay borrowings under the company’s credit facility, and cover associated fees and expenses. This strategic financial move aims to strengthen Chord Energy’s balance sheet and operational flexibility.
Private Placements and FinancingBusiness Operations and Strategy
Chord Energy Announces $750 Million Notes Offering
Positive
Mar 3, 2025
On March 3, 2025, Chord Energy Corporation announced a $750 million offering of new senior unsecured notes due 2033 in a private placement, alongside a cash tender offer to purchase its outstanding $400 million senior unsecured notes due 2026. The proceeds from the new notes will be used to finance the tender offer, redeem any remaining 2026 notes, repay a portion of its credit facility borrowings, and cover associated fees and expenses. This strategic financial maneuver aims to optimize the company’s debt structure and enhance its financial flexibility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.