Chord Energy (CHRD) Q2 2025 earnings summary

Executive summary

• Delivered strong Q2 2025 results with oil volumes and free cash flow exceeding expectations, supporting robust shareholder returns and a 10% share count reduction since the Enerplus transaction.

• Completed the Enerplus acquisition on May 31, 2024, expanding Williston Basin operations and finalizing a $4.1 billion purchase price allocation, with $539.3 million goodwill fully impaired in Q2 2025.

• Over $5 billion returned to shareholders since 2021, with aggressive share repurchases and a $1.30/share base dividend declared for Q3 2025.

• Continuous operational improvements, including long-lateral drilling, data analytics, and AI, are driving efficiency, margin gains, and lower breakevens.

• Net cash from operating activities and Adjusted Free Cash Flow exceeded expectations, with over 90% of Adjusted FCF returned to shareholders.

Financial highlights

• Q2 2025 oil production reached 156.7 MBopd, total production 281.9 MBoepd, and adjusted free cash flow was $141 million.

• Q2 2025 total revenues were $1.18 billion; net loss was $389.9 million due to a $539.3 million goodwill impairment.

• Lease operating expenses for Q2 2025 were $10.02/boe; FY25 guidance midpoint at $9.60/boe.

• Liquidity at June 30, 2025 was $1.83 billion, including $40.5 million cash and $1.79 billion available under the credit facility.

• Net leverage at 0.3x as of Q2 2025; $930 million total debt at quarter-end.

Outlook and guidance

• FY25 oil production guidance raised to 153.0 MBopd midpoint; CapEx lowered by $50 million to $1.35 billion, with improved capital efficiency from long-lateral development.

• FY25 Adjusted FCF expected to increase by ~$120 million (~20%) from original plan; Adjusted EBITDA projected at ~$2.4 billion.

• Free cash flow per share up 25% since February and 35% since Enerplus transaction announcement.

• Cash tax range for FY25 lowered to 3.5%-6.5% of Adjusted EBITDA.

• Preliminary 2026 program details to be provided in November.