Piper Sandler's Mark Lear raised their price target on Chord Energy (NASDAQ: CHRD) by 6.3% from $205 to $218 on 2024/02/26. The analyst maintained their Strong Buy rating on the stock.

Lear's optimism stems from Chord Energy's recent acquisition of Enerplus for $4.2 billion, which includes debt. This deal represents a 15% premium to Enerplus, according to the analyst. Lear acknowledges that Chord Energy paid a full price for the acquisition but believes that the company is gaining access to some of the best inventory in the Bakken.

While the acquisition is expected to have a positive impact on Chord Energy's financials, Lear cautions that it is not a steal. However, the analyst predicts that optimized allocation and increased adoption of three-mile wells will drive upside to the merger.

Chord Energy recently reported its financial results for the fourth quarter of 2023. The company's earnings per share (EPS) of $5.25 beat the Zacks Consensus Estimate of $5.04. However, it was slightly lower than the EPS of $5.28 reported in the fourth quarter of 2022.

Revenue for the quarter came in at $964.69 million, surpassing the Zacks Consensus Estimate by 8.19%. However, it fell short of the $1.02 billion revenue reported in the same quarter of the previous year. Chord Energy also generated free cash flow of $247.4 million during the quarter.

For the full year 2023, Chord Energy reported EPS of $18.46, a 31.7% decrease compared to the previous year. However, the company's revenue increased by 6.9% to $3.897 billion. Chord Energy also generated free cash flow of $758.7 million for the full year.

Looking ahead to 2024, Chord Energy's management has provided guidance. The company expects E&P and other capital expenditures to range from $905 million to $945 million, with approximately 80% allocated to drilling and completions. Additionally, Chord Energy anticipates generating free cash flow of $875 million for the year.

Chord Energy's President and CEO, Danny Brown, expressed confidence in the company's performance. He highlighted the strong volume growth achieved in the second half of 2023 and the successful execution of the company's program. Brown emphasized the company's deep inventory, which generates compelling economics and allows for robust free cash flow.

According to WallStreetZen, 100% of top-rated analysts currently rate CHRD as a Strong Buy or Buy, with none considering it a Hold or recommending selling the stock. The consensus forecast among analysts is that CHRD's upcoming year will deliver earnings per share (EPS) of $42.62. If the analysts' predictions hold true, CHRD's next yearly EPS will see a significant increase of 73.3% year-over-year.

Since Chord Energy's latest quarterly report on 2024/02/21, the stock price has declined by 4.8%. However, on a year-over-year basis, the stock has shown positive growth of 18.5%. During this period, CHRD has lagged behind the S&P 500, which has seen a 27.3% increase.

Piper Sandler analyst Mark Lear, who raised Chord Energy's price target, is ranked in the top 6% of Wall Street analysts by WallStreetZen. Lear specializes in the Energy and Consumer Cyclical sectors and has an impressive average return of 9.6% with a win rate of 58.9%.

Chord Energy Corporation is an independent exploration and production company focused on crude oil, natural gas, and natural gas liquids in the Williston Basin. The company, founded in 2007, is headquartered in Houston, Texas.