HOUSTON, Feb. 25, 2026 /PRNewswire/ -- Chord Energy Corporation $(CHRD)$ ("Chord", "Chord Energy" or the "Company") today reported financial and operating results for the fourth quarter and full-year 2025 and announced its 2026 outlook.
Key Takeaways and Updates:
-- Strong Execution: Cash Flow from Operations and Adjusted Free Cash Flow
exceeded expectations in 4Q25, supported by oil volumes at the high-end
of guidance and capital below expectations;
-- FY25 Improving Efficiency: FY25 CapEx was more than $100MM below pro
forma FY24 with pro forma oil volumes 1% higher year-over-year;
-- FCF Enhancements: Generated approximately $160MM in incremental run-rate
free cash flow in FY25 through continuous improvement initiatives;
-- Driving Per-Share Value: In FY25, Chord continued its multi-year track
record of growing production per share while paying out significant cash
to shareholders and maintaining a strong balance sheet;
-- FY26 Plan: 2026 volume and capital guidance consistent with November
outlook;
-- 4-Mile Lateral Update: Successful turn-in-line ("TIL") of seven 4-mile
wells in FY25, with three of the seven TIL'd after 3Q25. Production
continues to be at or above expectations, with average well costs below
budget. Chord expects 40% of wells TIL'd in FY26 to be 4-mile laterals;
-- Low-Breakeven Inventory: Improved inventory quality by lowering weighted
average breakeven >10% year-over-year;
-- XTO Acquisition: Completed acquisition of core Williston Basin assets
from XTO Energy Inc. ("XTO");
-- LOE Improved: FY25 Lease Operating Expenses ("LOE") of $9.73/Boe was
below initial expectations, despite lower FY25 gas volumes; and
-- Shareholder Payouts: Declared aggregate base dividends of $5.20/share and
repurchased 3.5MM shares of common stock. Chord's fully-diluted share
count was 57.2MM at YE25, reduced by >5% year-over-year.
4Q25 Operational and Financial Highlights:
-- Strong Volumes: Oil volumes of 153.0 MBopd was at the high-end of
guidance;
-- Capital Discipline: CapEx of $305.2MM (excluding $8.0MM of reimbursable
non-op CapEx) was below the low-end of guidance;
-- Cost Control: LOE of $9.72/Boe was in-line with the midpoint of guidance;
-- Profitability: Net income was $84.4MM and Adjusted Net Income(1) was
$72.7MM ($1.28/diluted share);
-- Cash Generation: Net cash provided by operating activities was $405.0MM,
Adjusted EBITDA(1) was $506.4MM and Adjusted Free Cash Flow(1) was
$175.0MM (excluding $8.0MM of reimbursable non-op CapEx); and
-- Shareholder Returns: Approximately 50% of Adjusted Free Cash Flow(1) was
returned to shareholders in 4Q25 through the base dividend of $1.30 per
share and share repurchases of $10.0MM.
(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").
"2025 was an outstanding year for Chord," said Danny Brown, Chord Energy's President and Chief Executive Officer. "We demonstrated consistent execution, both increasing volumes and lowering capital relative to original expectations. Importantly, Chord also significantly enhanced its cost structure through multiple initiatives, which resulted in improved free cash flow while increasing and improving the quality of our inventory. The company made significant progress derisking its extended lateral program and is hitting the ground running in 2026."
Mr. Brown continued, "Fourth quarter results continue our pattern of strong performance, with higher than expected production supported by solid execution and well results, all while maintaining our focus on cost control. Chord also guided to a strong first quarter, despite challenging weather in December and January. Chord's outlook is compelling, supported by deep, low-cost, oil-weighted inventory, a strong balance sheet, excellent track record on execution, and a relentless focus on continuous improvement. I'd like to express my deepest appreciation to the Chord team for their continued efforts to achieve, and exceed, our goals and for their focus on making our organization better. Chord is well positioned to handle the ongoing volatility with commodity prices, generating solid free cash flow at current prices, with notable upside to the next upcycle. We look forward to continuing to execute and deliver value for our shareholders."
4Q25 Operational and Financial Update:
The following table presents select 4Q25 operational and financial data compared to guidance released on November 4, 2025:
Metric 4Q25 Actual 4Q25 Guidance
---------------------------------------- ----------- ------------------
Oil Volumes (MBopd) 153.0 149.0 -- 153.0
NGL Volumes (MBblpd) 52.4 49.5 -- 53.5
Natural Gas Volumes (MMcfpd) 404.2 421.0 -- 433.0
Total Volumes (MBoepd) 272.8 268.7 -- 278.7
CapEx ($MM)(1) $313.2 $315 -- $345
Oil Discount to WTI ($/Bbl) $(2.24) $(2.80) -- $(0.80)
NGL Realization (% of WTI) 8 % 5% -- 15%
Natural Gas Realization (% of Henry Hub) 39 % 30% -- 40%
LOE ($/Boe) $9.72 $9.20 -- $10.20
Cash GPT ($/Boe)(2) $2.82 $2.70 -- $3.00
Cash G&A ($MM)(2) $26.8 $20.0 -- $25.0
Production Taxes (% of Oil, NGL and
Natural Gas Sales) 7.8 % 8.3% -- 8.8%
Cash Interest ($MM)(2) $26.3 $25.0 -- $27.0
Cash Tax (% of Adjusted EBITDA) -- % 0% -- 3%
(1) 4Q25 includes $8.0MM 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.
Chord had 30 gross (27 net) operated TILs in 4Q25 and 122 gross (99 net) operated TILs in FY25.
Estimated Net Proved Reserves:
During 2025, the Company added 103.8 million barrels of oil equivalent ("MMBoe") of estimated net proved reserves as a result of successful drilling in the Williston Basin and 38.0 MMBoe from the purchase of reserves in place associated with the acquisition of Williston Basin assets from XTO in 4Q25. Chord's estimated net proved reserves at December 31, 2025 were 917.5 MMBoe and consisted of 514.7 million barrels ("MMBbl") of crude oil, 174.1 MMBbl of NGL and 1,372.1 billion cubic feet ("Bcf") of natural gas. The Company's estimated net proved reserves and PV-10 do not include probable or possible reserves and were determined using the preceding 12-month unweighted arithmetic average of the first-day-of-the-month index prices for crude oil and natural gas, which were held constant throughout the life of the properties. For the year ended December 31, 2025, the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months were $65.34 per Bbl for crude oil and $3.39 per MMBtu for natural gas. These prices were adjusted for quality, energy content, transportation fees and market differentials. The information in the following table does not give any effect to or reflect our commodity derivatives. Future operating costs, production taxes, plugging and abandonment costs and capital costs were based on current costs as of year-end. The Company's estimated net proved reserves and related PV-10 at December 31, 2025 were based on reports independently prepared by Netherland, Sewell & Associates, Inc., the Company's independent reserve engineers.
The table below summarizes the Company's estimated net proved reserves and related PV-10 at December 31, 2025:
Net
Crude Natural Estimated
Oil NGL Gas Reserves
(MMBbl) (MMBbl) (Bcf) (MMBoe) PV-10(1) ($MM)
------- ------- ------- --------- ------------------------
Developed 314.5 127.1 1,127.9 629.5 $ 6,409.1
Undeveloped 200.2 47.0 244.2 288.0 2,663.3
------- ------- ------- --------- ------------------------
Total Proved 514.7 174.1 1,372.1 917.5 $ 9,072.4
======= ======= ======= ========= ========================
(1) PV-10 is a non-GAAP financial measure and generally differs from
Standardized Measure, the most directly comparable GAAP financial
measure, because it does not include the effect of income taxes on
discounted future net cash flows. We believe PV-10 is a useful measure
for investors when evaluating the relative monetary significance of our
oil and gas properties and as a basis for comparison of the relative size
and value of our proved reserves to our peers without regard to income
taxes, which can vary between individual companies for various and unique
factors. The PV-10 does not purport to present the fair value of our
proved oil, NGL and natural gas reserves.
Return of Capital:
Chord declared a base dividend of $1.30 per share of common stock. The dividend will be payable on March 27, 2026 to shareholders of record as of March 12, 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.
The Company repurchased 103,057 shares of common stock at a weighted average price of $97.01 per share totaling $10.0MM in 4Q25, representing 100% of shareholder returns after the base dividend. Shares issued and outstanding as of December 31, 2025 were 56.8MM (57.2MM on a fully-diluted basis), compared to 56.9MM (57.3MM on a fully-diluted basis) as of September 30, 2025.
Operations Update:
-- 4-Mile Laterals: Chord continues to advance its 4-mile lateral program.
In 2025, Chord TIL'd seven 4-mile wells including three incremental TILs
since Chord's last update in November. Initial well performance across
the 4-mile program is meeting or exceeding expectations, and average well
costs have been below budget. For all seven 4-mile wells, tracer data is
indicating contribution from the full lateral. Chord has reduced 4-mile
well costs by more than 10% versus 2025 initial budget designs, supported
by strong performance and efficient execution, including single-run
cleanouts. Chord's first 4-mile DSU development, the Toonie pad, has
commenced fracking and will be brought online in 1Q26.
-- Execution: Chord's drilling, completions and facilities teams continue to
drive operational improvement while achieving strong safety performance.
In 2025, the team drove efficiencies that delivered production volumes
above expectations on lower capital spending. The drilling team led the
Williston Basin in total lateral footage drilled in 2025, while
successfully offsetting the cost impacts of higher steel prices through
improved execution. The completions team was a basin leader in 4-mile
cleanout times in 2025 and continues to improve performance while
lowering costs with more reliance on simulfrac, expanded dual fuel
utilization to reduce diesel consumption and implementation of continuous
pumping. The facilities team continues to innovate while lowering costs
through design optimization, including larger facilities and expanded
re-utilization efforts.
-- Production/LOE: Chord continues to enhance base production, while
lowering costs. Improved runtimes and base production enhancements
supported Chord's ability to exceed production expectations in 2025. With
a focus on artificial lift optimization, the production team has achieved
a >50% improvement in ESP replacement cycle times and a >25% improvement
in failure rates since the beginning of 2025. In 2025, Chord scaled
AI-driven machine learning to approximately 99% of wells on rod lift to
optimize pumping operations, with early performance delivering a 25%
improvement in rod pump run times. Optimization improvements have reduced
failures, resulting in approximately 1,200 fewer workover rig days in
2025 and improved safety performance.
2026 Outlook:
Chord's 2026 program seeks to maintain stable production levels, while maximizing free cash flow. The February 2026 outlook is consistent with Chord's preliminary outlook discussed in November, which estimated 2026 oil volumes of 157 -- 161 MBopd for approximately $1.4B of CapEx. In 2026, Chord expects to generate approximately $2.3B of Adjusted EBITDA and $700MM of Adjusted Free Cash Flow ($64/Bbl WTI and $3.75/MMBtu Henry Hub).
Highlights of Chord's FY26 guidance include:
-- Volumes: Oil volumes are expected to be 159 MBopd at the midpoint of
guidance. Chord expects 1Q26 volumes to be 154 MBopd at midpoint,
reflecting 1 MBopd of weather-related impacts. Oil volumes in 2Q26 are
expected to increase sequentially, with further growth into 3Q26. Chord
will continue to monitor non-operated activity and evaluate higher
operated activity if non-op activity decreases;
-- Capital: CapEx is expected to total $1.4B at the midpoint of guidance,
with 90% related to operated and non-operated drilling and completion
activity. Chord expects 80% of FY26 CapEx to be incurred 1Q26 - 3Q26.
-- Midstream: Chord plans $30MM of midstream projects (vs. $18MM in
FY25) that are included in the $1.4B midpoint CapEx guidance.
These projects are small-scale, primarily focused on water
disposal, enabling Chord to achieve better economics compared to
third-party providers;
-- Realizations: NGL and natural gas realizations are expected to be above
the FY26 midpoint in 1Q26 and 4Q26 and below the FY26 midpoint in 2Q26
and 3Q26, reflecting pricing seasonality;
-- Cash Taxes: Expected to range between 1% and 5% of EBITDA at
$55/Bbl-$70/Bbl WTI with 1H26 lower than 2H26; and
-- Activity: Chord plans to TIL 135 -- 165 gross operated wells (40% 3-mile
laterals and 40% 4-mile laterals) with an average working interest of
75%.
The following table presents select operational and financial guidance for the periods presented:
Metric 1Q26 Guidance FY26 Guidance
--------------------------------- ------------------ ------------------
Oil Volumes (MBopd) 152.5 -- 155.5 157.0 -- 161.0
NGL Volumes (MBblpd) 48.0 -- 49.0 49.5 -- 50.5
Natural Gas Volumes (MMcfpd) 401.0 -- 409.0 403.0 -- 413.0
Total Volumes (MBoepd) 267.3 -- 272.7 273.7 -- 280.3
CapEx ($MM) $325 -- $355 $1,350 -- $1,450
Oil Discount to WTI ($/Bbl) $(1.60) -- $(2.60) $(1.50) -- $(2.50)
NGL Realization (% of WTI) 5% -- 15% 5% -- 15%
Natural Gas Realization (% of
Henry Hub) 50% -- 60% 35% -- 45%
LOE ($/Boe) $9.40 -- $10.40 $9.30 -- $10.30
Cash GPT ($/Boe)(1) $2.75 -- $3.25 $2.65 -- $3.15
Cash G&A ($MM)(1) $23 -- $28 $90 -- $100
Production Taxes (% of Oil, NGL
and Natural Gas Sales) 7.5% -- 7.9% 7.7% -- 8.1%
Cash Interest ($MM)(1) $25 -- $27 $100 -- $110
Cash Tax (% of Adjusted EBITDA)(2) 0% -- 3% 1% -- 5%
(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for
more information.
(2) 1Q26 and FY26 reflect $55/Bbl -- $70/Bbl WTI.
Select Operational and Financial Data:
The following table presents select operational and financial data for the periods presented:
4Q25 3Q25 FY25
------------------- ------------------- -------------------
Production data:
Crude oil
(MBopd) 153.0 155.7 154.8
NGL (MBblpd) 52.4 55.1 52.5
Natural gas
(MMcfpd)(1) 404.2 420.1 416.2
Total
production
(MBoepd) 272.8 280.9 276.6
Percent crude
oil 56.1 % 55.4 % 56.0 %
Average sales
prices:
Crude oil,
without
realized
derivatives
($/Bbl) $ 56.90 $ 63.59 $ 62.78
Differential to
NYMEX WTI
($/Bbl) (2.24) (1.41) (2.02)
Crude oil, with
realized
derivatives
($/Bbl) 58.62 64.16 63.59
Crude oil
realized
derivatives
gain ($MM) (24.3) (8.3) (45.9)
NGL, without
realized
derivatives
($/Bbl) 4.88 4.89 7.22
NGL, with
realized
derivatives
($/Bbl) 4.88 4.89 7.22
Natural gas,
without
realized
derivatives
($/Mcf)(2) 1.40 0.81 1.40
Natural gas,
with realized
derivatives
($/Mcf) 1.56 1.11 1.51
Natural gas
realized
derivatives
gain ($MM) (5.9) (11.5) (17.9)
Selected
financial data
($MM):
Revenues:
Crude oil
revenues $ 801.0 $ 910.8 $ 3,546.9
NGL revenues 23.5 24.8 138.2
Natural gas
revenues 52.1 31.2 212.0
------------------- ------------------- -------------------
Total oil,
NGL and
natural
gas
revenues $ 876.6 $ 966.8 $ 3,897.1
=================== =================== ===================
Cash flows:
Net cash
provided by
operating
activities: $ 405.0 $ 559.0 $ 2,040.7
Non-GAAP
financial
measures(3) :
Adjusted EBITDA $ 506.4 $ 577.8 $ 2,327.0
Adjusted FCF(4) 167.0 218.6 816.9
Adjusted Net
Income
Attributable
to Common
Stockholders 72.7 134.5 551.2
Select operating
expenses:
LOE $ 244.0 $ 248.6 $ 982.6
Gathering,
processing and
transportation
expenses
("GPT") 70.5 73.1 290.9
Production
taxes 68.8 79.5 291.9
Depreciation,
depletion and
amortization 368.4 374.9 1,470.2
------------------- ------------------- -------------------
Total
select
operating
expenses $ 751.7 $ 776.1 $ 3,035.6
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