HOUSTON, Aug. 5, 2026 /PRNewswire/ -- Chord Energy Corporation $(CHRD)$ ("Chord," "Chord Energy," or the "Company") today reported financial and operating results for the second quarter 2026.
Key Takeaways and Updates:
-- Operational Strength: Cash Flow from Operations and Adjusted Free Cash
Flow exceeded expectations in 2Q26, supported by oil volumes at the
high-end of guidance, and capital expenditures ("CapEx") modestly below
midpoint guidance;
-- Shareholder Returns: Returned 54% of Adjusted Free Cash Flow(1) to
shareholders through the base dividend of $1.30 per share and $147.4MM of
share repurchases;
-- Executing 4-Mile Laterals: Successfully executed and turned in line
("TIL") four additional 4-mile pads; and
-- Enhancing Base Production: Continuing to benefit from strength in base
production performance which is driving volumes above the initial 2026
plan. Broadening scope of chemical workover program to test multiple new
opportunities.
2Q26 Operational and Financial Highlights:
-- Strong Volumes: Oil volumes of 165.4 MBopd were at the high-end of
guidance;
-- Capital Discipline: CapEx of $416MM (excluding $0.7MM of reimbursable
non-op CapEx) was modestly below midpoint guidance;
-- Realizations: Oil, natural gas and NGL realizations were favorable vs.
midpoint guidance;
-- Profitability: Net income was $525.2MM and Adjusted Net Income(1) was
$361.7MM ($6.44/diluted share); and
-- Cash Generation: Net cash provided by operating activities was $1,116.2MM,
Adjusted EBITDA(1) was $923.5MM and Adjusted Free Cash Flow(1) was
$414.1MM (excluding $0.7MM of reimbursable non-op CapEx).
(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under United States generally accepted accounting principles ("GAAP").
"Chord delivered another quarter of strong operational and financial performance, reflecting the continued execution of our strategy," said Danny Brown, Chord Energy's President and Chief Executive Officer. "Adjusted free cash flow came in above expectations driven by oil production at the high end of guidance and capital spending below midpoint guidance. Shareholder returns continue to be robust with Chord returning 54% of free cash flow in the second quarter, and Chord is expected to increase returns to 75% of free cash flow in the third quarter as leverage fell below half a turn at quarter-end. Operationally, the Chord team continues to demonstrate progress on the four-mile lateral program as well as our base production enhancement initiatives. Disciplined capital allocation, operational efficiency, and a peer-leading balance sheet position Chord to navigate the volatile macro environment and generate strong, sustainable free cash flow. I want to thank the entire Chord team for their continued commitment to safe, efficient operations and for their focus on creating long-term value for our shareholders."
2Q26 Operational and Financial Update:
The following table presents select 2Q26 operational and financial data compared to guidance released on May 5, 2026:
Metric 2Q26 Actual 2Q26 Guidance
-------------------------------------------- ----------- --------------
Oil Volumes (MBopd) 165.4 162.5 - 165.5
NGL Volumes (MBblpd) 53.0 50.5 - 51.5
Natural Gas Volumes (MMcfpd) 408.0 400.0 - 408.0
Total Volumes (MBoepd) 286.4 279.7 - 285.0
CapEx ($MM)(1) $416.7 $410 - $440
Oil Premium to WTI ($/Bbl) $1.27 $0.50 - $1.50
NGL Realization (% of WTI) 10 % 4% - 10%
Natural Gas Realization (% of Henry Hub) 32 % 25% - 35%
LOE ($/Boe) $10.28 $9.70 - $10.70
Cash GPT ($/Boe)(2) $2.83 $2.70 - $3.20
Cash G&A ($MM)(2) $21.1 $24 - $26
Production Taxes (% of Oil, NGL and Natural
Gas Sales) 8.4 % 7.9% - 8.3%
Cash Interest ($MM)(2) $26.0 $25 - $27
Cash Tax ($MM)(3) $67.4 -
Cash Tax (% of Adjusted EBITDA) 7.3 % 2% - 8%
___________________
(1) 2Q26 includes $0.7MM of reimbursable non-op CapEx.
(2) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures under
GAAP.
(3) Represents actual cash taxes paid in 2Q26 presented on a cash basis and
does not include changes in accrued tax amounts included in working
capital and deferred taxes within our condensed consolidated financial
statements.
Chord had 66 gross (47 net) operated TILs in 2Q26.
Return of Capital:
Chord declared a base dividend of $1.30 per share of common stock. The dividend will be payable on September 4, 2026 to shareholders of record as of August 20, 2026.
The Company repurchased 1,104,346 shares of common stock at a weighted average price of $133.47 per share totaling $147.4MM in 2Q26. Shares issued and outstanding were 55.2MM (56.0MM on a fully-diluted basis) as of June 30, 2026, compared to 56.3MM (57.1MM on a fully-diluted basis) as of March 31, 2026. Details regarding the Return of Capital calculation can be found in the Company's most recent investor presentation located on its website at https://ir.chordenergy.com/presentations.
Operations Update:
-- 4-Mile Laterals: Since Chord's last update, the Company TIL'd four
additional 4-mile pads. As of early 3Q26, the Company has executed 26
total 4-mile wells. Capital costs continue to be in line with
expectations, supported by multi-well efficiencies. Drilling and
completion execution and early performance of the 4-mile program is in
line with expectations. Chord is scaling its 4-mile program and
management expects 4-mile laterals to become a larger part of our
program.
-- Execution: Chord continues to demonstrate strong operational execution
and improving cycle times across its Williston Basin program. The Company
drilled the deepest measured depth well in the Basin at 33,810ft. The
team executed the Basin's first trimulfrac completion, furthering cost
efficiencies on 4-mile developments. Chord expects to continue
implementing this technology in certain areas. Cleanouts continue to
reach total depth, ensuring contribution from the toe. Additionally, the
Company continues to benefit from reduced facilities-related capital
through equipment re-use and scalable facility design.
-- Production/LOE: Chord continues to deliver on base production, focusing
on initiatives with favorable risk/reward and attractive return
potential. Key areas of focus include the continued application of AI to
optimize artificial lift, expanding workover activity, various chemical
treatment programs, logistics optimization, reducing cycle times to
return non-producing wells, as well as other initiatives. Chord is
broadening the scope of its chemical workover program to test multiple
new opportunities.
2026 Outlook Update:
Chord is updating its 2026 guidance to reflect 1H26 performance and its latest forecasts. In 2026, Chord expects to generate approximately $3.0B of Adjusted EBITDA and $1.3B of Adjusted Free Cash Flow including the impact of derivatives ($75/Bbl WTI and $3.00/MMBtu Henry Hub for 2H26).
Key Update Summary:
-- Volumes: FY26 oil volume midpoint guidance unchanged at 161 MBopd;
-- 3Q26 oil volume midpoint guidance of 163.0 MBopd reflects
continued positive impacts from production optimization
initiatives and an acceleration of TILs into 2Q26;
-- 4Q26 oil volumes expected to decline from 3Q26 levels reflecting
fewer TILs and the acceleration of completions activity and
volumes into 2Q26;
-- Capital: FY26 CapEx midpoint guidance remains unchanged at $1.4B;
-- 3Q26 CapEx midpoint guidance of $375MM reflects a decline
in activity from 2Q26 and plans to drop the second frac
crew in 3Q26;
-- 4Q26 CapEx is expected to fall from 3Q26 levels reflecting lower
activity;
-- Realizations: Adjusting realization guidance to reflect the current
market outlook;
-- LOE: FY26 LOE midpoint increased to $10.30/BOE, reflecting additional
production enhancement initiatives discussed above, higher workover costs
and higher non-operated LOE;
-- Production Taxes: Slightly increasing guidance reflecting higher oil
revenue (oil production tax is a higher percentage than gas and NGLs);
-- Cash Taxes: FY26 midpoint guidance remains unchanged assuming
$70-$100/bbl WTI in 2H26; and
-- Activity: Chord plans to TIL 140 -- 160 gross operated wells with an
average working interest of 75%.
The following table presents select operational and financial guidance for the periods presented:
Metric 3Q26 Guidance 4Q26 Guidance FY26 Guidance
------------------- --------------- --------------- ----------------
Oil Volumes (MBopd) 161.5 - 164.5 156.0 - 159.0 160.2 - 161.8
NGL Volumes
(MBblpd) 50.0 - 52.0 49.0 - 51.0 50.2 - 51.4
Natural Gas Volumes
(MMcfpd) 397.0 - 405.0 410.0 - 418.0 406.6 - 410.6
Total Volumes
(MBoepd) 277.7 - 284.0 273.3 - 279.7 278.2 - 281.8
CapEx ($MM) $360 - $390 $242 - $292 $1,360 - $1,440
Oil
Premium/(Discount) $(0.80) -
to WTI ($/Bbl) $(0.70) - $0.30 $(1.50) - $0.50 $(0.00)
NGL Realization (%
of WTI) 4% - 10% 4% - 14% 7% - 11%
Natural Gas
Realization (% of
Henry Hub) 20% - 30% 35% - 45% 38% - 44%
LOE ($/Boe) $10.00 - $11.00 $10.00 - $11.00 $10.05 - $10.55
Cash GPT ($/Boe)(1) $2.75 - $3.15 $2.80 - $3.20 $2.80 - $3.00
Cash G&A ($MM)(1) $25 - $27 $25 - $27 $98 - $103
Production Taxes (%
of Oil, NGL and
Natural Gas Sales) 8.0% - 8.4% 8.0% - 8.4% 8.0% - 8.2%
Cash Interest
($MM)(1) $25 - $27 $25 - $27 $102 - $106
Cash Tax (% of
Adjusted
EBITDA)(2) 3% - 9% 4% - 12% 5% - 8%
___________________
(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures under
GAAP.
(2) 2H26 reflects $70/Bbl -- $100/Bbl WTI.
Select Operational and Financial Data:
The following table presents select operational and financial data for the periods presented:
2Q26 1Q26 2Q25
--------------- --------------- ----------------
Production data:
Crude oil (MBopd) 165.4 158.0 156.7
NGL (MBblpd) 53.0 49.0 54.1
Natural gas
(MMcfpd)(1) 408.0 411.4 425.9
Total production
(MBoepd) 286.4 275.6 281.9
Percent crude oil 57.8 % 57.3 % 55.6 %
Average sales prices:
Crude oil, without
realized derivatives
($/Bbl) $ 93.99 $ 70.05 $ 61.62
Differential to NYMEX
WTI ($/Bbl) 1.27 (2.35) (2.15)
Crude oil, with
realized derivatives
($/Bbl) 86.94 69.57 62.58
Crude oil realized
derivatives gain
(loss) ($MM) (106.2) (6.9) 13.7
NGL, without realized
derivatives ($/Bbl) 9.25 8.66 5.80
NGL, with realized
derivatives ($/Bbl) 9.25 8.66 5.80
Natural gas, without
realized derivatives
($/Mcf)(2) 0.94 3.14 1.10
Natural gas, with
realized derivatives
($/Mcf) 1.29 2.82 1.11
Natural gas realized
derivatives gain
(loss) ($MM) 13.0 (11.6) 0.4
Selected financial
data ($MM):
Revenues:
Crude oil revenues $ 1,415.0 $ 996.3 $ 878.9
NGL revenues 44.6 38.2 28.6
Natural gas revenues 34.7 116.1 42.8
--------------- --------------- ----------------
Total oil, NGL
and natural gas
revenues $ 1,494.3 $ 1,150.6 $ 950.3
=============== =============== ================
Cash flows:
Net cash provided by
operating
activities: $ 1,116.2 $ 507.5 $ 419.8
Non-GAAP financial
measures(3) :
Adjusted EBITDA $ 923.5 $ 713.0 $ 547.2
Adjusted Free Cash
Flow(4) 413.4 321.2 140.8
Adjusted Net Income
Attributable to
Common Stockholders 361.7 258.9 103.2
Select operating
expenses:
LOE $ 267.8 $ 244.9 $ 257.0
Gathering, processing
and transportation
expenses ("GPT") 62.8 67.0 74.1
Production taxes 125.9 86.7 69.0
Depreciation,
depletion and
amortization 409.2 384.2 377.0
--------------- --------------- ----------------
Total select
operating
expenses $ 865.7 $ 782.8 $ 777.1
=============== =============== ================
Select operating
expenses ($/Boe):
LOE $ 10.28 $ 9.87 $ 10.02
GPT 2.41 2.70 2.89
Production taxes 4.83 3.50 2.69
Depreciation,
depletion and
amortization 15.70 15.49 14.70
--------------- --------------- ----------------
Total select
operating
expenses $ 33.22 $ 31.56 $ 30.30
=============== =============== ================
Earnings (loss) per
share:
Basic earnings (loss)
per share $ 9.30 $ 1.90 $ (6.71)
Diluted earnings
(loss) per share 9.28 1.90 (6.77)
Adjusted diluted
earnings per share
(Non-GAAP)(3) 6.44 4.56 1.79
___________________
(1) Marcellus natural gas volumes were 116.9 MMcfpd in 2Q26, 130.5 MMcfpd in
1Q26 and 129.9 MMcfpd in 2Q25.
(2) Marcellus natural gas realized prices were $2.10/Mcf in 2Q26, $6.40/Mcf
in 1Q26 and $2.49/Mcf in 2Q25.
(3) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures under
GAAP.
(4) 2Q26 and 1Q26 include $0.7MM and $3.0MM of reimbursable non-op CapEx,
respectively. 2Q25 includes no reimbursable non-op CapEx.
Capital Expenditures:
The following table presents the Company's CapEx by category for the period presented (in millions):
1Q26 2Q26 1H26
----------------- ----------------- -----------------
CapEx ($MM):
E&P(1) $ 330.6 $ 402.3 $ 732.9
Midstream 14.2 14.2 28.4
Other 0.1 0.2 0.3
----------------- ----------------- -----------------
Total CapEx(2) $ 344.9 $ 416.7 $ 761.6
================= ================= =================
__________________
(1) 1H26 includes $3.7MM of reimbursable non-op CapEx.
(2) 1H26 excludes capitalized interest costs of $1.8MM.
Acquisitions:
Acquisition and leasehold costs were $3.7MM in 2Q26.
Balance Sheet and Liquidity:
The following table presents key balance sheet data and liquidity metrics as of June 30, 2026 (in millions):
June 30, 2026
-------------------------
Revolving credit facility(1) $ 2,000.0
Revolver borrowings $ --
Senior notes 1,500.0
-------------------------
Total debt $ 1,500.0
Cash and cash equivalents $ 611.6
Letters of credit 30.4
Liquidity $ 2,581.2
___________________
(1) $2.75B borrowing base and $2.0B of elected commitments.
Contact:
Chord Energy Corporation
Bob Bakanauskas, VP, Finance
(281) 404-9600
ir@chordenergy.com
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the webcast:
Date: Thursday, August 6, 2026 Time: 10:00 a.m. Central Live Webcast: https://app.webinar.net/7OwnJBaGA4P
You may use the following dial-in information to join the conference call by phone with operator assistance:
Dial-in: 1-800-836-8184 Intl. Dial-in: 1-646-357-8785 Conference ID: 34285
A recording of the conference call will be available beginning at 1:00 p.m. Central on the day of the call and will be available until Thursday, August 13, 2026 by dialing:
Replay dial-in: 1-888-660-6345 Intl. replay: 1-646-517-4150 Replay access: 34285 #
The call will also be available for replay for approximately 30 days at https://www.chordenergy.com
Forward-Looking Statements and Cautionary Statements
Certain statements in this press release, other than statements of historical facts, that address activities, events or developments that Chord expects, believes or anticipates will or may occur in the future, including any statements regarding future opportunities for Chord, future financial performance and condition, guidance and statements regarding Chord's expectations, beliefs, plans, financial condition, objectives, assumptions or future events or performance are forward-looking statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "probable," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "would," "potential," "may," "might," "likely," "plan," "positioned," "strategy" and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. Specific forward-looking statements include statements regarding Chord's plans and expectations with respect to the return of capital plan, advancement of its extended lateral program and production levels, anticipated financial and operating results and other guidance. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on certain assumptions made by Chord based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chord, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in crude oil, NGL and natural gas realized prices, uncertainty regarding the future actions of foreign oil producers and the related impacts such actions have on the balance between the supply of and demand for crude oil, NGLs, and natural gas, the actions taken by OPEC+ with respect to oil production levels and announcements of potential changes in such levels, including the ability of the OPEC+ countries to agree on and comply with production levels, changes in trade policies and regulations, including increases or change in duties, current and potentially new tariffs or quotas and other similar measures, as well as the potential impact of retaliatory tariffs and other actions, war between Russia and Ukraine, military conflicts in the Red Sea Region, Iran, and the wider Middle East and their effect on commodity prices, changes or uncertainty in general economic and geopolitical conditions, inflation rates and the impact of associated monetary policy responses, including fluctuating interest rates, logistical challenges and supply chain disruptions, including as a result of conflicts, our business strategy, including the continued implementation of our 4-mile well program, the geographic concentration of our operations, uncertainties in estimating proved reserves and forecasting production results, drilling and completion of wells, operational factors affecting the commencement or maintenance of producing wells, the availability of infrastructure and midstream service providers, our ability to realize the anticipated benefits from acquisitions, the condition of the capital markets generally, as well as Chord's ability to access them, the proximity to and capacity of transportation facilities, uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Chord's business and other important factors that could cause actual results to differ materially from those projected as described in Chord's reports filed with the U.S. Securities and Exchange Commission (the "SEC").
Any forward-looking statement speaks only as of the date on which such statement is made and Chord undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. Additional information concerning other risk factors is also contained in Chord's most recently filed Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other SEC filings.
About Chord Energy
Chord Energy Corporation is an independent exploration and production company with quality and sustainable long-lived assets primarily in the Williston Basin. The Company is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely and responsibly to develop its unconventional onshore oil-rich resources in the continental United States. For more information, please visit the Company's website at www.chordenergy.com.
Chord Energy Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)
June 30, 2026 December 31, 2025
------------------ ------------------
ASSETS
Current assets
Cash and cash equivalents $ 611,568 $ 189,531
Accounts receivable, net 1,338,031 1,116,685
Inventory 121,409 115,713
Prepaid expenses 29,201 33,767
Derivative instruments 49,588 77,312
Other current assets 5,274 5,061
------------------ ------------------
Total current assets 2,155,071 1,538,069
------------------ ------------------
Property, plant and equipment
Oil and gas properties
(successful efforts method) 15,627,693 14,848,968
Other property and equipment 60,493 60,395
Less: accumulated depreciation,
depletion and amortization (4,349,525) (3,572,834)
------------------ ------------------
Total property, plant and
equipment, net 11,338,661 11,336,529
------------------ ------------------
Derivative instruments 10,091 8,366
Investment in equity securities 138,789 119,698
Long-term inventory 26,073 30,759
Operating right-of-use assets 10,463 12,749
Other assets 38,240 28,104
------------------ ------------------
Total assets $ 13,717,388 $ 13,074,274
================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 151,908 $ 41,795
Revenues and production taxes
payable 817,402 618,258
Accrued liabilities 706,836 735,386
Accrued interest payable 28,193 28,594
Derivative instruments 16,070 --
Current operating lease
liabilities 7,589 14,656
Other current liabilities 36,670 11,898
------------------ ------------------
Total current liabilities 1,764,668 1,450,587
------------------ ------------------
Long-term debt 1,481,357 1,479,581
Deferred tax liabilities 1,656,962 1,615,850
Asset retirement obligations 432,030 432,802
Derivative instruments 2,786 --
Operating lease liabilities 13,854 10,518
Other liabilities 8,392 4,982
------------------ ------------------
Total liabilities 5,360,049 4,994,320
------------------ ------------------
Commitments and contingencies
Stockholders' equity
Common stock, $0.01 par value:
240,000,000 shares authorized,
67,249,231 shares issued and
55,197,317 shares outstanding at
June 30, 2026; and 240,000,000
shares authorized, 67,150,747
shares issued and 56,762,243
shares outstanding at
December 31, 2025 676 675
Treasury stock, at cost:
12,051,914 shares at June 30,
2026 and 10,388,504 shares at
December 31, 2025 (1,524,300) (1,304,092)
Additional paid-in capital 7,351,992 7,339,735
Retained earnings 2,528,971 2,043,636
------------------ ------------------
Total stockholders' equity 8,357,339 8,079,954
------------------ ------------------
Total liabilities and
stockholders' equity $ 13,717,388 $ 13,074,274
================== ==================
Chord Energy Corporation
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
----------------------------------- ----------------------------------
2026 2025 2026 2025
---------------- ----------------- --------------- -----------------
Revenues
Oil, NGL and
gas revenues $ 1,494,284 $ 950,266 $ 2,644,873 $ 2,053,690
Purchased oil
and gas sales 678,401 230,294 1,193,447 341,916
---------------- ----------------- --------------- -----------------
Total
revenues 2,172,685 1,180,560 3,838,320 2,395,606
---------------- ----------------- --------------- -----------------
Operating expenses
Lease operating
expenses 267,839 256,966 512,748 490,040
Gathering,
processing and
transportation
expenses 62,765 74,100 129,783 147,415
Purchased oil
and gas
expenses 671,661 231,745 1,181,493 343,113
Production
taxes 125,878 68,965 212,589 143,607
Depreciation,
depletion and
amortization 409,237 376,997 793,452 726,806
General and
administrative
expenses 29,894 32,540 67,402 70,917
Impairment and
exploration 2,687 541,940 5,250 543,923
---------------- ----------------- --------------- -----------------
Total
operating
expenses 1,569,961 1,583,253 2,902,717 2,465,821
---------------- ----------------- --------------- -----------------
Gain (loss) on
sale of assets,
net (4) (522) 339 4,993
---------------- ----------------- --------------- -----------------
Operating income
(loss) 602,720 (403,215) 935,942 (65,222)
---------------- ----------------- --------------- -----------------
Other income
(expense)
Net gain (loss)
on derivative
instruments 107,866 82,231 (133,605) 61,950
Net gain (loss)
from
investment in
equity
securities 1,143 (962) 23,972 (5,862)
Interest
expense, net
of capitalized
interest (26,663) (18,788) (53,259) (34,606)
Loss on debt
extinguishment -- -- -- (3,494)
Other income,
net 2,186 5,045 8,515 4,546
---------------- ----------------- --------------- -----------------
Total other
income
(expense),
net 84,532 67,526 (154,377) 22,534
---------------- ----------------- --------------- -----------------
Income (loss)
before income
taxes 687,252 (335,689) 781,565 (42,688)
Income tax expense (162,066) (54,216) (147,771) (127,380)
---------------- ----------------- --------------- -----------------
Net income (loss) $ 525,186 $ (389,905) $ 633,794 $ (170,068)
================ ================= =============== =================
Earnings (loss)
per share:
Basic $ 9.30 $ (6.71) $ 11.17 $ (2.89)
Diluted $ 9.28 $ (6.77) $ 11.14 $ (2.93)
Weighted average
shares
outstanding:
Basic 56,010 57,786 56,361 58,420
Diluted 56,605 57,786 56,909 58,501
Chord Energy Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Six Months Ended June 30,
-------------------------------
2026 2025
-------------- ---------------
Cash flows from operating activities:
Net income (loss) $ 633,794 $ (170,068)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation, depletion and
amortization 793,452 726,806
Loss on debt extinguishment -- 3,494
Gain on sale of assets (339) (4,993)
Impairment 30 539,318
Deferred income taxes 41,113 49,050
Net (gain) loss on derivative
instruments 133,605 (61,950)
Net (gain) loss from investment in
equity securities (23,972) 5,862
Equity-based compensation expenses 16,814 12,997
Settlement of asset retirement
obligations (17,935) (13,671)
Deferred financing costs amortization
and other (12,048) 2,374
Working capital and other changes:
Change in accounts receivable, net (243,018) 4,479
Change in inventory (5,866) (5,738)
Change in prepaid expenses 4,092 5,463
Change in accounts payable, interest
payable and accrued liabilities 284,756 (20,031)
Change in other assets and
liabilities, net 19,143 3,311
-------------- ---------------
Net cash provided by operating
activities 1,623,621 1,076,703
-------------- ---------------
Cash flows from investing activities:
Capital expenditures (755,502) (704,388)
Acquisitions (8,680) (26,191)
Proceeds from divestitures 326 6,921
Derivative settlements (88,750) 14,090
Contingent consideration received 25,000 25,000
Distributions from investment in
equity securities 4,882 6,786
Contributions to investments (7,851) --
-------------- ---------------
Net cash used in investing
activities (830,575) (677,782)
Cash flows from financing activities:
Proceeds from revolving credit
facility 85,000 2,435,000
Principal payments on revolving credit
facility (85,000) (2,700,000)
Repayment and discharge of senior
notes -- (401,432)
Issuance of senior notes -- 750,000
Deferred financing costs -- (13,443)
Repurchases of common stock (217,677) (274,014)
Tax withholding on vesting of
equity-based awards (4,557) (21,793)
Dividends paid (147,683) (168,846)
Payments on finance lease liabilities (1,092) (856)
-------------- ---------------
Net cash used in financing
activities (371,009) (395,384)
-------------- ---------------
Increase in cash and cash equivalents 422,037 3,537
Cash and cash equivalents:
Beginning of period 189,531 36,950
-------------- ---------------
End of period $ 611,568 $ 40,487
============== ===============
Supplemental cash flow information:
Cash paid for income taxes $ 88,382 $ 66,098
Supplemental non-cash transactions:
Change in accrued capital expenditures $ 3,380 $ (3,950)
Change in asset retirement obligations 3,491 100,632
Change in dividends payable 776 973
Non-GAAP Financial Measures
The following are non-GAAP financial measures not prepared in accordance with GAAP that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company believes that the foregoing are useful supplemental measures that provide an indication of the results generated by the Company's principal business activities. However, these measures are not recognized by GAAP and do not have a standardized meaning prescribed by GAAP. Therefore, these measures may not be comparable to similar measures provided by other issuers. From time to time, the Company provides forward-looking forecasts of these measures; however, the Company is unable to provide a quantitative reconciliation of the forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measures. The reconciling items in future periods could be significant. To see how the Company reconciles its historical presentations of these non-GAAP financial measures to the most directly comparable GAAP measures, please visit the Investors--Documents & Disclosures--Non-GAAP Reconciliation page on the Company's website at https://ir.chordenergy.com/non-gaap.
Cash GPT
The Company defines Cash GPT as total GPT expenses less non-cash valuation charges on pipeline imbalances. Cash GPT is not a measure of GPT expenses as determined by GAAP. Management believes that the presentation of Cash GPT provides useful additional information to investors and analysts to assess the cash costs incurred to market and transport the Company's commodities from the wellhead to delivery points for sale without regard to the change in value of its pipeline imbalances, which vary monthly based on commodity prices.
The following table presents a reconciliation of the GAAP financial measure of GPT expenses to the non-GAAP financial measure of Cash GPT for the periods presented:
Three Months Ended June 30, Six Months Ended June 30,
------------------------------
2026 2025 2026 2025
-------------- -------------- -------------- --------------
(In thousands)
GPT $ 62,765 $ 74,100 $ 129,783 $ 147,415
Pipeline
imbalances 11,060 (2,270) 13,367 (1,722)
-------------- -------------- -------------- --------------
Cash GPT $ 73,825 $ 71,830 $ 143,150 $ 145,693
============== ============== ============== ==============
Cash G&A
The Company defines Cash G&A as total G&A expenses less G&A expenses directly attributable to certain merger and acquisition activity, non-cash equity-based compensation expenses and other non-cash charges. Cash G&A is not a measure of G&A expenses as determined by GAAP. Management believes that the presentation of Cash G&A provides useful additional information to investors and analysts to assess the Company's operating costs in comparison to peers without regard to the aforementioned charges, which can vary substantially from company to company.
The following table presents a reconciliation of the GAAP financial measure of G&A expenses to the non-GAAP financial measure of Cash G&A for the periods presented:
Three Months Ended June 30, Six Months Ended June 30,
------------------------------
2026 2025 2026 2025
-------------- -------------- -------------- --------------
(In thousands)
General and
administrative
expenses $ 29,894 $ 32,540 $ 67,402 $ 70,917
Merger and
acquisition
costs(1) -- (2,929) -- (8,064)
Equity-based
compensation
expenses (8,772) (6,121) (16,814) (12,997)
Other non-cash
adjustments -- (1,790) (2,534) 193
-------------- -------------- -------------- --------------
Cash G&A $ 21,122 $ 21,700 $ 48,054 $ 50,049
============== ============== ============== ==============
___________________ (1) 2Q25 and 1H25 primarily includes costs directly
attributable to the arrangement with Enerplus.
Cash Interest
The Company defines Cash Interest as interest expense plus capitalized interest less amortization of deferred financing costs. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on the Company's debt to finance its operating activities and the Company's ability to maintain compliance with its debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
-------------- -------------- -------------- --------------
(In thousands)
Interest
expense $ 26,663 $ 18,788 $ 53,259 $ 34,606
Capitalized
interest 899 1,109 1,832 2,188
Amortization
of deferred
financing
costs (1,589) (1,255) (3,120) (2,526)
-------------- -------------- -------------- --------------
Cash Interest $ 25,973 $ 18,642 $ 51,971 $ 34,268
============== ============== ============== ==============
Adjusted EBITDA and Adjusted Free Cash Flow
The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion and amortization ("DD&A"), merger costs, exploration expenses, impairment expenses, loss on debt extinguishment and other similar non-cash or non-recurring charges. The Company defines Adjusted Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx (excluding capitalized interest and acquisition capital).
Adjusted EBITDA and Adjusted Free Cash Flow are not measures of net income or cash flows from operating activities as determined by GAAP. Management believes that the presentation of Adjusted EBITDA and Adjusted Free Cash Flow provides useful additional information to investors and analysts for assessing the Company's results of operations, financial performance, its ability to generate cash from its business operations without regard to its financing methods or capital structure and the Company's ability to maintain compliance with its debt covenants.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and Adjusted Free Cash Flow for the periods presented:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
-------------- -------------- -------------- --------------
(In thousands)
Net income (loss) $ 525,186 $ (389,905) $ 633,794 $ (170,068)
Interest
expense, net
of capitalized
interest 26,663 18,788 53,259 34,606
Loss on debt
extinguishment -- -- -- 3,494
Income tax
expense 162,066 54,216 147,771 127,380
Depreciation,
depletion and
amortization 409,237 376,997 793,452 726,806
Merger and
acquisition
costs(1) -- 2,929 -- 8,064
Impairment and
exploration
expenses(2) 2,687 541,940 5,250 543,923
(Gain) loss on
sale of
assets, net 4 522 (339) (4,993)
Net (gain) loss
on derivative
instruments (107,866) (82,231) 133,605 (61,950)
Realized gain
(loss) on
commodity
price
derivative
contracts (93,126) 14,090 (111,626) 13,839
Net (gain) loss
from
investment in
equity
securities (1,143) 962 (23,972) 5,862
Distributions
from
investment in
equity
securities 2,450 2,377 4,882 4,736
Equity-based
compensation
expenses 8,772 6,121 16,814 12,997
Other non-cash
adjustments (11,456) 420 (16,370) (1,960)
-------------- -------------- -------------- --------------
Adjusted EBITDA 923,474 547,226 1,636,520 1,242,736
Cash interest (25,973) (18,642) (51,971) (34,268)
CapEx(3) (416,748) (355,589) (761,634) (711,028)
Cash taxes paid (67,382) (32,148) (88,382) (66,098)
-------------- -------------- -------------- --------------
Adjusted Free Cash
Flow $ 413,371 $ 140,847 $ 734,533 $ 431,342
============== ============== ============== ==============
Net cash provided
by operating
activities $ 1,116,154 $ 419,810 $ 1,623,621 $ 1,076,703
Changes in
working
capital (224,776) 49,725 (59,107) 12,516
Interest
expense, net
of capitalized
interest 26,663 18,788 53,259 34,606
Current income
tax expense 87,825 34,931 106,658 78,331
Merger and
acquisition
costs(1) -- 2,929 -- 8,064
Exploration
expenses 2,663 2,623 5,220 4,605
Realized gain
(loss) on
commodity
price
derivative
contracts (93,126) 14,090 (111,626) 13,839
Distributions
from
investment in
equity
securities 2,450 2,377 4,882 4,736
Settlement of
asset
retirement
obligations 8,102 5,150 17,935 13,671
Deferred
financing
costs
amortization
and other 8,975 (3,617) 12,048 (2,375)
Other non-cash
adjustments (11,456) 420 (16,370) (1,960)
-------------- -------------- -------------- --------------
Adjusted EBITDA 923,474 547,226 1,636,520 1,242,736
Cash interest (25,973) (18,642) (51,971) (34,268)
CapEx(3) (416,748) (355,589) (761,634) (711,028)
Cash taxes paid (67,382) (32,148) (88,382) (66,098)
-------------- -------------- -------------- --------------
Adjusted Free Cash
Flow $ 413,371 $ 140,847 $ 734,533 $ 431,342
============== ============== ============== ==============
___________________
(1) 2Q25 and 1H25 primarily include costs directly attributable to the
arrangement with Enerplus.
(2) Includes non-cash goodwill impairment charge of $539.3 million for the
three and six months ended June 30, 2025, as a result of the decline in
the Company's market capitalization during 2Q25.
(3) 2Q26, 1H26 and 1H25 include $0.7MM, $3.7MM and $3.7MM of reimbursable
non-op CapEx, respectively, and exclude capitalized interest costs. 2Q25
includes no reimbursable non-op CapEx and excludes capitalized interest
costs.
Adjusted Net Income and Adjusted Diluted Earnings Per Share
Adjusted Net Income and Adjusted Diluted Earnings Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income as net income after adjusting for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, non-cash changes in the fair value of the Company's investment in equity securities, impairment, loss on debt extinguishment and other similar non-cash charges (2) merger and acquisition costs and (3) the impact of taxes based on an estimated tax rate applicable to those adjusting items in the same period. Adjusted Net Income is not a measure of net income as determined by GAAP.
The Company calculates earnings per share under the two-class method in accordance with GAAP. The two-class method is an earnings allocation formula that computes earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Adjusted Diluted Earnings Per Share is calculated as (i) Adjusted Net Income (ii) less distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of diluted shares outstanding for the periods presented.
The following table presents reconciliations of the GAAP financial measure of net income to the non-GAAP financial measure of Adjusted Net Income and the GAAP financial measure of diluted earnings per share to the non-GAAP financial measure of Adjusted Diluted Earnings Per Share for the periods presented:
Three Months Ended June 30, Six Months Ended June 30,
---------------------------
2026 2025 2026 2025
------------ ------------- ------------ -------------
(In thousands)
Net income (loss) $ 525,186 $ (389,905) $ 633,794 $ (170,068)
Net (gain) loss
on derivative
instruments (107,866) (82,231) 133,605 (61,950)
Realized gain
(loss) on
commodity
price
derivative
contracts (93,126) 14,090 (111,626) 13,839
Net (gain) loss
from
investment in
equity
securities (1,143) 962 (23,972) 5,862
Distributions
from
investment in
equity
securities 2,450 2,377 4,882 4,736
Impairment(1) 24 539,317 30 539,318
Merger and
acquisition
costs(2) -- 2,929 -- 8,064
(Gain) loss on
sale of
assets, net 4 522 (339) (4,993)
Amortization of
deferred
financing
costs 1,589 1,255 3,120 2,526
Loss on debt
extinguishment -- -- -- 3,494
Other non-cash
adjustments (11,456) 420 (16,370) (1,960)
Tax impact(3) 49,013 14,032 2,496 7,140
------------ ------------- ------------ -------------
Adjusted Net
Income 364,675 103,768 625,620 346,008
Distributed and
undistributed
earnings
allocated to
participating
securities (2,939) (614) (4,946) (1,436)
------------ ------------- ------------ -------------
Adjusted Net
Income
attributable to
common
stockholders $ 361,736 $ 103,154 $ 620,674 $ 344,572
============ ============= ============ =============
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- ---------------------------
2026 2025 2026 2025
------------ ------------- ------------ -------------
Diluted earnings
(loss) per share $ 9.35 $ (6.75) $ 11.23 $ (2.91)
Net (gain) loss
on derivative
instruments (1.92) (1.42) 2.37 (1.06)
Realized gain
(loss) on
commodity
price
derivative
contracts (1.66) 0.24 (1.98) 0.24
Net (gain) loss
from
investment in
equity
securities (0.02) 0.02 (0.42) 0.10
Distributions
from
investment in
equity
securities 0.04 0.04 0.09 0.08
Impairment(1) -- 9.33 -- 9.22
Merger and
acquisition
costs(2) -- 0.05 -- 0.14
(Gain) loss on
sale of
assets, net -- 0.01 (0.01) (0.09)
Amortization of
deferred
financing
costs 0.03 0.02 0.06 0.04
Loss on debt
extinguishment -- -- -- 0.06
Other non-cash
adjustments (0.20) 0.02 (0.29) (0.03)
Tax impact(3) 0.87 0.24 0.03 0.12
------------ ------------- ------------ -------------
Adjusted Diluted
Earnings Per
Share 6.49 1.80 11.08 5.91
Less: Distributed
and undistributed
earnings
allocated to
participating
securities (0.05) (0.01) (0.09) (0.02)
------------ ------------- ------------ -------------
Adjusted Diluted
Earnings Per
Share $ 6.44 $ 1.79 $ 10.99 $ 5.89
============ ============= ============ =============
Diluted weighted
average shares
outstanding (in
thousands) 56,148 57,786 56,459 58,501
Tax rate
applicable to
adjustment
items(3) 23.4 % 23.5 % 23.4 % 23.5 %
_____________________
(1) Includes non-cash goodwill impairment charge of $539.3 million for the
three and six months ended June 30, 2025, as a result of the decline in
the Company's market capitalization during 2Q25.
(2) 2Q25 and 1H25 primarily include costs directly attributable to the
arrangement with Enerplus.
(3) The tax impact is computed by applying an estimated tax rate to the
adjustments for certain non-cash and non-recurring items.
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SOURCE Chord Energy