Chord Energy (CHRD) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational and financial results, with oil volumes and total production at the high end of guidance, capital spending below expectations, and robust cash flow generation.

• Completed and integrated the Enerplus acquisition, expanding Williston Basin operations, targeting over $200 million in annual synergies, and enhancing scale and efficiency.

• Returned over $4 billion to shareholders since 2021 through dividends and buybacks, with $146 million in Q3 2024 repurchases and a new $750 million share repurchase program authorized.

• Announced a three-year plan (2025–2027) to hold oil volumes flat at 152,000–153,000 bbl/d with $1.4B annual capex, focusing on longer laterals and operational efficiencies.

• Divested DJ Basin assets for $36.1 million and acquired additional Williston Basin interests for $7 million.

Financial highlights

• Q3 2024 total revenues were $1.45 billion, adjusted EBITDA was $675 million, and adjusted free cash flow was $312 million.

• Q3 2024 oil production averaged 158,793 Bopd; total production was 280,815 Boepd (57% oil).

• Lease operating expenses were $9.56/Boe; Q3 capex was $329 million, below guidance.

• Net leverage was 0.3x at quarter-end; liquidity stood at $1.1 billion, including $52 million cash and $1 billion undrawn credit.

• Q3 share repurchases totaled $146 million, buying back over 1.5% of shares outstanding.

Outlook and guidance

• FY24 oil volume guidance raised to 152.7 MBopd midpoint, with capital guidance reduced by $10 million to $1.48B due to efficiencies.

• Three-year plan targets flat oil production at 152,000–153,000 bbl/d and $1.4B annual capex, with further upside from longer laterals and operational improvements.

• FY24 Adjusted EBITDA expected at $2.7 billion and Adjusted Free Cash Flow at $1.1 billion.

• 4Q24 oil volumes impacted by North Dakota wildfires and A&D activity, reducing volumes by about 1.3 MBopd.

• Share repurchases remain a key capital return mechanism, especially at current valuations.