CHRD · Chord Energy Corporation

Chord Energy Corporation delivered exceptional Q1 2026 performance, with oil production of 158.0 MBopd surpassing the high end of prior guidance (152.5-155.5 MBopd), supported by operational efficiencies in drilling, completions, and base production optimization initiatives like AI-driven artificial lift and workovers. This outperformance, alongside CapEx of $344.9MM in line with guidance midpoint and LOE of $9.87/Boe, generated powerful cash flows: $507.5MM operating cash flow, $713.0MM Adjusted EBITDA, and $324.0MM Adjusted Free Cash Flow (adjusted for non-op CapEx). Profitability shone through with GAAP net income of $108.6MM and Non-GAAP Adjusted Net Income of $258.9MM ($4.56/share), bolstered by favorable gas realizations from strong regional benchmarks and Marcellus production at $6.40/Mcf. Management, led by President and CEO Danny Brown, highlighted the milestone first full 4-mile DSU pad (Toonie 5-well), executed efficiently with simulfrac and in-line performance, signaling scaled adoption (~40% of 2026 TILs). Shareholder returns remained prioritized, with $145MM deployed via a $1.30/share base dividend (payable June 5) and repurchases of 559k shares at $126.53 average. Balance sheet strength persisted with zero revolver borrowings, $225.8MM cash, and $2.2B liquidity against $1.5B senior notes. Looking forward, Chord raised FY2026 oil guidance to 160-162 MBopd (midpoint 161, +2 MBopd) via production enhancements and faster cycle times, maintaining $1.355-1.445B CapEx, targeting ~$3.1B Adjusted EBITDA and $1.4B Adjusted FCF at $80/bbl WTI strip. Q2 oil midpoint of 164 MBopd reflects optimizations, with volumes stable into Q3 before Q4 decline. This positions Chord to maximize free cash flow from its oil-weighted Bakken assets while advancing extended-reach laterals and cost controls like dual-fuel fracs.