Chord Energy (CHRD) Q4 2024 earnings summary

Executive summary

• Completed a transformational merger with Enerplus in May 2024, enhancing scale, efficiency, and a leading position in the Williston Basin, with significant operational and corporate synergies.

• Delivered strong 4Q24 and FY24 results, with oil volumes and cash flow exceeding guidance, driven by operational efficiency and synergy capture.

• Maintained disciplined capital allocation, focusing on share repurchases, increased dividends, and robust returns to shareholders, returning $944MM in 2024.

• Entered 2025 with a strong balance sheet, robust free cash flow, and a focus on capital efficiency and shareholder returns.

• Premier Williston Basin operator with ~1.3MM net acres and a ~$7B market cap, supported by a deep, low-cost inventory and attractive valuation versus peers.

Financial highlights

• FY24 revenues reached $5.25B, adjusted EBITDA $2.7B, and adjusted free cash flow $1.1B; 4Q24 adjusted free cash flow was $276.9MM.

• FY24 oil production averaged 153 MBopd, total production 270.7 MBoepd; 4Q24 oil volumes reached 153.3 MBopd.

• FY24 return of capital totaled $944MM, including $297MM in base dividends and $438MM in share repurchases.

• Maintained low leverage at 0.3x net debt to annualized adjusted EBITDA and year-end liquidity of $1.6B.

• Operating costs per boe were $17.79 for FY24, with LOE at $9.49/boe and cash G&A at $1.20/boe.

Outlook and guidance

• 2025–2027 plan targets flat oil volumes (152–153 MBopd) with annual CapEx of $1.4B, about $90MM below 2024 on a comparable basis.

• 2025 guidance: $1.4B CapEx, $2.5B adjusted EBITDA, ~$860MM free cash flow at $70/Bbl WTI, $3.50/MMBtu gas.

• 1Q25 oil volumes guided at 149.5–152.5 MBopd; plans to TIL 130–150 gross operated wells in 2025, with ~40% being 3-mile laterals.

• Over 50% of inventory positioned for 3-mile+ laterals, with ongoing conversion of Enerplus acreage.

• Continued focus on capital efficiency, with potential for further improvements not yet included in guidance.