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• Adjusted Free Cash Flow: Approximately $312 million for the third quarter.

• Shareholder Returns: 75% of adjusted free cash flow returned to shareholders.

• Base Dividend: $1.25 per share.

• Variable Dividend: $0.19 per share.

• Share Repurchases: $146 million, representing 93% of capital return for the quarter.

• Oil Volumes: Toward the top end of guidance, driven by strong execution and well performance.

• Operating Expenses: Below expectations, contributing to improved operating margins.

• Capital Expenditures: $329 million, below the low end of guidance due to program efficiencies.

• Liquidity: $1.1 billion as of September 30, including $52 million of cash.

• Net Leverage: 0.3x as of September 30.

• Oil Realizations: Averaged about $1.50 below WTI.

• LOE (Lease Operating Expense): $9.56 per BOE.

• Cash GPT (Gathering, Processing, and Transportation): $2.91 per BOE.

• Cash G&A (General and Administrative): $27.9 million, excluding merger-related costs.

• Production Taxes: Averaged 9% of commodity sales.

• Cash Taxes: $13 million, below expectations.

• Fourth Quarter Oil Guidance: Midpoint of 152,000 barrels of oil per day.

• Full Year Capital Guidance: Trimmed due to improved program efficiencies.

• Warning! GuruFocus has detected 3 Warning Sign with CHRD.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chord Energy Corp (NASDAQ:CHRD) delivered strong third-quarter results with oil volumes at the top end of guidance, driven by strong execution and well performance.

• The company generated adjusted free cash flow of approximately $312 million, exceeding expectations and supporting robust shareholder returns.

• Chord Energy Corp (NASDAQ:CHRD) announced the divestiture of DJ Basin assets, with plans to use proceeds for acquisitions and share repurchases, enhancing capital allocation flexibility.

• Operational efficiencies led to lower-than-expected capital expenditures and operating expenses, improving margins and capital efficiency.

• The company has successfully integrated Enerplus assets, capturing over $200 million in annual synergies, and is confident in its three-year plan to maintain steady oil volumes with controlled capital expenditures.

Negative Points

• Chord Energy Corp (NASDAQ:CHRD) experienced production curtailments due to wildfires in North Dakota, impacting fourth-quarter oil volumes by approximately 900 barrels per day.

• Natural gas realizations were below expectations due to depressed AECO pricing, impacting overall financial performance.

• The company faces challenges in maintaining production guidance due to variability in early production data and differences in flowback methodologies across the basin.

• There is uncertainty regarding the impact of potential changes in commodity prices on the company's three-year plan and capital allocation decisions.

• Chord Energy Corp (NASDAQ:CHRD) acknowledges that its current well spacing may be conservative, potentially limiting inventory expansion opportunities.