In This Article:
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Adjusted Free Cash Flow: Approximately $263 million on a pro forma basis.
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Base Dividend: $1.25 per share.
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Variable Dividend: $1.27 per share.
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Share Repurchases: $41 million in the second quarter.
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Lease Operating Expense (LOE): $9.37 per boe in the second quarter.
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Cash G&A (excluding merger-related costs): $21.8 million in the second quarter.
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Merger Costs: $54.7 million during the second quarter.
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Production Taxes: Averaged 8.8% of commodity sales in the second quarter.
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Liquidity as of June 30: Approximately $1.1 billion, including $197 million of cash.
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Net Leverage: Consistent with expectations set in May.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Chord Energy Corp (NASDAQ:CHRD) delivered strong shareholder returns with oil volumes at the top end of guidance due to strong well performance and reduced downtime.
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Free cash flow exceeded expectations, with adjusted free cash flow approximately $263 million, including a full quarter of Enerplus' results.
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The integration with Enerplus is progressing well, with expected synergies increased to over $200 million from the original estimate of $150 million.
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Chord Energy Corp (NASDAQ:CHRD) is a leader in three-mile lateral development, which has shown improved well productivity and capital efficiency.
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The company is committed to sustainable and responsible energy delivery, with plans to publish a sustainability report reflecting the combined company in 2025.
Negative Points
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The timing of share repurchases was impacted by the possession of material non-public information related to the Enerplus acquisition.
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Certain reclassifications in Enerplus' financial statements to align with Chord Energy Corp (NASDAQ:CHRD)'s accounting policies resulted in lower LOE, lower gas and NGL revenues, and slightly higher capital and G&A expenses.
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Weaker-than-expected pricing, especially for natural gas and NGLs, offset some of the financial gains.
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The company had to slow frac activity, reducing from three frac crews to one, which may impact production in the short term.
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There are risks and uncertainties associated with forward-looking statements, which could cause actual results to differ materially from current expectations.
Q & A Highlights
Q: Can you discuss the strategy for 2025 development, particularly regarding the integration of Enerplus assets and the use of longer laterals and wider spacing? A: Daniel Brown, CEO, explained that Chord Energy is currently developing its 2025 plan, focusing on spreading development geographically to avoid overloading systems. The Enerplus assets are core and will benefit from longer laterals and wider spacing, which are expected to show positive results in 2025. The company is working on respacing and anticipates incremental benefits from these changes.