Chord Energy Reports Second Quarter 2024 Financial and Operating Results, Declares Base and Variable Dividends and Issues an Updated Outlook
Chord Energy (NASDAQ: CHRD) reported strong Q2 2024 results, with oil volumes of 118.1 MBopd at the high end of guidance. Total production reached 207.2 MBoepd, exceeding guidance. The company generated $460.9 million in net cash from operations and $213.4 million in net income. Adjusted EBITDA was $567.9 million and Adjusted Free Cash Flow was $216.1 million.
Chord completed its combination with Enerplus on May 31, 2024, creating a premier Williston Basin operator. The company expects to achieve over $200 million in annual synergies from the integration. Chord declared a base-plus-variable cash dividend of $2.52 per share and repurchased $61.7 million of shares in Q2.
For full-year 2024, Chord projects Adjusted EBITDA of $2.9 billion and Adjusted Free Cash Flow of $1.2 billion on a pro forma basis. The company updated its FY2024 guidance, increasing midpoint oil production slightly while maintaining capital expenditure targets.
Chord Energy (NASDAQ: CHRD) ha riportato risultati solidi per il secondo trimestre del 2024, con volumi di petrolio pari a 118,1 MBopd, al livello massimo delle previsioni. La produzione totale ha raggiunto 207,2 MBoepd, superando le attese. L'azienda ha generato 460,9 milioni di dollari di flusso di cassa netto dalle operazioni e 213,4 milioni di dollari di utile netto. L'EBITDA rettificato è stato di 567,9 milioni di dollari e il flusso di cassa libero rettificato è ammontato a 216,1 milioni di dollari.
Chord ha completato la sua fusione con Enerplus il 31 maggio 2024, creando un operatore di primo piano nella Basina di Williston. L'azienda si aspetta di realizzare oltre 200 milioni di dollari in sinergie annuali grazie all'integrazione. Chord ha dichiarato un dividendo in contante base più variabile di 2,52 dollari per azione e ha riacquistato azioni per 61,7 milioni di dollari nel secondo trimestre.
Per l'intero anno 2024, Chord prevede un EBITDA rettificato di 2,9 miliardi di dollari e un flusso di cassa libero rettificato di 1,2 miliardi di dollari su base pro forma. L'azienda ha aggiornato le sue previsioni per l'anno fiscale 2024, aumentando leggermente la produzione di petrolio prevista mantenendo gli obiettivi di spesa in conto capitale.
Chord Energy (NASDAQ: CHRD) reportó resultados sólidos para el segundo trimestre de 2024, con volúmenes de petróleo de 118,1 MBopd en el extremo superior de las proyecciones. La producción total alcanzó 207,2 MBoepd, superando las expectativas. La compañía generó y 213.4 millones de dólares en ingresos netos. El EBITDA ajustado fue de 567,9 millones de dólares y el flujo de efectivo libre ajustado fue de 216,1 millones de dólares.
Chord completó su combinación con Enerplus el 31 de mayo de 2024, creando un operador destacado en la Cuenca Williston. La compañía espera lograr más de 200 millones de dólares en sinergias anuales a partir de la integración. Chord declaró un dividendo en efectivo base más variable de 2,52 dólares por acción y recompró acciones por 61,7 millones de dólares en el segundo trimestre.
Para todo el año 2024, Chord proyecta EBITDA ajustado de 2,9 mil millones de dólares y flujo de efectivo libre ajustado de 1,2 mil millones de dólares en una base pro forma. La empresa actualizó su guía para el año fiscal 2024, incrementando ligeramente la producción de petróleo prevista mientras mantiene los objetivos de gasto de capital.
Chord Energy (NASDAQ: CHRD)는 2024년 2분기 실적이 강력하다고 보고하며, 유가가 가이던스의 상단 범위인 118.1 MBopd에 도달했다고 발표했습니다. 총 생산량은 가이던스를 초과하여 207.2 MBoepd에 도달했습니다. 이 회사는 영업 활동으로부터 4억6090만 달러의 순 현금을 생성했으며 2억1340만 달러의 순이익을 기록했습니다. 조정된 EBITDA는 5억6790만 달러였고, 조정된 자유 현금 흐름은 2억1610만 달러였습니다.
Chord는 2024년 5월 31일 Enerplus와의 합병을 완료하여 윌리스턴 분지의 주요 운영자가 되었습니다. 회사는 통합으로 연간 2억 달러 이상의 시너지를 기대하고 있습니다. Chord는 주당 2.52달러의 기본+변동 현금 배당금을 선언하고 2분기 동안 6170만 달러의 자사주 매입을 실시했습니다.
2024년 전체적으로 Chord는 조정 EBITDA 29억 달러 및 조정 자유 현금 흐름 12억 달러를 예측하고 있습니다. 회사는 FY2024 가이던스를 업데이트하여 중간 유가 생산량을 약간 증가시키면서 자본 지출 목표를 유지하고 있습니다.
Chord Energy (NASDAQ: CHRD) a annoncé des résultats solides pour le deuxième trimestre 2024, avec des volumes de pétrole de 118,1 MBopd, au sommet des prévisions. La production totale a atteint 207,2 MBoepd, dépassant les prévisions. L'entreprise a généré 460,9 millions de dollars de flux de trésorerie net provenant de ses opérations et 213,4 millions de dollars de résultat net. L'EBITDA ajusté s'élevait à 567,9 millions de dollars et le flux de trésorerie disponible ajusté à 216,1 millions de dollars.
Chord a finalisé sa combinaison avec Enerplus le 31 mai 2024, créant ainsi un opérateur de premier plan dans le bassin de Williston. L'entreprise s'attend à réaliser plus de 200 millions de dollars de synergies annuelles grâce à cette intégration. Chord a déclaré un dividende en espèces de base plus variable de 2,52 dollars par action et a racheté pour 61,7 millions de dollars d'actions au deuxième trimestre.
Pour l'année 2024 dans son intégralité, Chord prévoit un EBITDA ajusté de 2,9 milliards de dollars et un flux de trésorerie libre ajusté de 1,2 milliard de dollars sur une base pro forma. L'entreprise a mis à jour ses prévisions pour l'exercice 2024, augmentant légèrement la production pétrolière tout en maintenant les objectifs de dépenses en capital.
Chord Energy (NASDAQ: CHRD) berichtete über starke Ergebnisse für das zweite Quartal 2024, mit Ölvolumina von 118,1 MBopd am oberen Ende der Prognose. Die Gesamterzeugung erreichte 207,2 MBoepd und übertraf die Erwartungen. Das Unternehmen generierte 460,9 Millionen US-Dollar an Nettogeldfluss aus dem operativen Geschäft und 213,4 Millionen US-Dollar Nettogewinn. Das bereinigte EBITDA betrug 567,9 Millionen US-Dollar und der bereinigte freie Cashflow lag bei 216,1 Millionen US-Dollar.
Chord schloss am 31. Mai 2024 die Fusion mit Enerplus ab und schuf damit einen führenden Betreiber im Williston-Becken. Das Unternehmen erwartet, über 200 Millionen US-Dollar jährlich aus der Integration zu erzielen. Chord erklärte eine Basis- zu variablen Bardividende von 2,52 US-Dollar je Aktie und kaufte im 2. Quartal Aktien für 61,7 Millionen US-Dollar zurück.
Für das gesamte Jahr 2024 prognostiziert Chord ein bereinigtes EBITDA von 2,9 Milliarden US-Dollar und einen bereinigten freien Cashflow von 1,2 Milliarden US-Dollar auf Basis der Pro-Forma-Daten. Das Unternehmen aktualisierte seine Prognose für das Geschäftsjahr 2024 und erhöhte leicht den mittelwertigen Ölproduktionsausblick, während es die Investitionsziele beibehielt.
- Oil volumes of 118.1 MBopd at high end of guidance, total production of 207.2 MBoepd above guidance
- Generated $460.9 million net cash from operations and $213.4 million net income in Q2
- Adjusted EBITDA of $567.9 million and Adjusted Free Cash Flow of $216.1 million in Q2
- Completed combination with Enerplus, expecting over $200 million in annual synergies
- Declared $2.52 per share base-plus-variable cash dividend
- Projects $2.9 billion Adjusted EBITDA and $1.2 billion Adjusted Free Cash Flow for FY2024 pro forma
- Increased FY2024 midpoint oil production guidance while maintaining capital expenditure targets
- Current portion of long-term debt increased to $60.1 million
- Revolver borrowings of $575 million as of June 30, 2024
2Q24 Operational and Financial Highlights:
- Oil volumes of 118.1 MBopd were at the high-end of guidance reflecting strong well performance and lower downtime;
- Total volumes of 207.2 MBoepd were above the high-end of guidance;
- E&P and other CapEx was
.3MM ($314 .2MM, excluding$298 .1MM of capital incurred related to divested non-operated assets that will be reimbursed and was not in guidance), below the low-end of guidance reflecting program timing;$16 - Lease Operating Expense ("LOE") was
per Boe. LOE performance was favorable to expectations and benefited from lower maintenance associated with improved downtime;$9.37 - Net cash provided by operating activities was
.9MM and net income was$460 .4MM;$213 - Adjusted EBITDA(1) was
.9MM and Adjusted Free Cash Flow(1) was$567 .1MM;$216 - Enerplus combination closed May 31, 2024, creating a premier Williston Basin operator; and
- ESG and sustainability initiatives progressing with a focus on continually improving safety and emissions.
2Q24 Shareholder Return Highlights:
- Return of capital set at
$197M M(2), or75% of Adjusted Free Cash Flow on a pro forma basis of .8MM(1,2);$262 - Share repurchases totaled
.7MM (weighted average price of$61 per share), of which$169.01 .1MM was repurchased with cash proceeds from warrants exercised during 1H24; and$21 - Declared a base-plus-variable cash dividend of
per share of common stock. See "Return of Capital" below for additional information.$2.52
(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under |
(2) Reflects Chord and Enerplus on a pro-forma basis for the three months ended June 30, 2024. Also excludes |
"Chord's strong second quarter performance benefited from both solid well performance and lower levels of downtime," said Danny Brown, Chord Energy's President and Chief Executive Officer. "Production levels and cost control drove free cash flow above expectations. In addition, the combination with Enerplus closed during the quarter, creating a premier Williston Basin operator with enhanced scale, significant low-cost inventory, financial strength, and peer-leading shareholder returns. I'm grateful for the dedication and hard work of both the Chord and Enerplus teams, as we have made substantial progress on the integration and continue to see over
Mr. Brown continued, "Chord's outlook is compelling as the combination with Enerplus significantly accelerates our rate of change as it relates to improving economic returns and value creation. Chord has been a leader in wider spacing and extending lateral length, which has improved both the predictability and economic returns of its inventory. By maintaining capital discipline and an attractive reinvestment rate, the Company has improved the capital efficiency of its program, reduced its corporate decline rate, and been a leader in returning cash to shareholders while operating in a safe and sustainable manner."
2Q24 Operational and Financial Update:
The following table presents select 2Q24 operational and financial data compared to guidance released on May 31, 2024:
Metric | Actual | Guidance(1) | ||
Oil Volumes (MBopd) | 118.1 | 115.6 – 118.6 | ||
NGL Volumes (MBblpd) | 40.5 | 37.9 – 38.9 | ||
Natural Gas Volumes (MMcfpd) | 291.5 | 280.6 – 286.6 | ||
Total Volumes (MBoepd) | 207.2 | 199.5 – 206.1 | ||
E&P & Other CapEx ($MM)(1) |
(1) | 2Q24 actual includes |
On a pro forma basis Chord had 58 gross (42.9 net) operated turn-in-line ("TIL") wells in 2Q24.
During the three months ended June 30, 2024, net cash provided by operating activities was
Enerplus Integration Update:
On May 31, 2024, Chord and Enerplus completed their previously announced combination, establishing Chord as a premier operator in the Williston Basin with enhanced size and scale. Chord has a proven track record of successfully integrating assets in the Williston Basin and anticipates implementation of best practices and operating efficiencies from the combination with Enerplus to further enhance Chord's positive rate of change. Chord continues to make substantial progress integrating the Enerplus assets and remains on pace to achieve its target of over
Updated Outlook:
Chord is updating its FY24 guidance to reflect the completion of the combination with Enerplus and remains on target with its 2024 plan. Chord expects to generate approximately
Certain reclassifications have been made to the historical presentation of Enerplus' financial statements to conform to Chord's accounting policies and presentation. Enerplus expensed certain items through LOE that Chord will deduct through gas and NGL revenues or charge through capital. Additionally, Enerplus capitalized certain G&A charges that Chord will expense. The net impact of these changes relative to Enerplus' standalone reporting is lower LOE, lower gas and NGL revenues and slightly higher capital. The impact of these changes is expected to be neutral to Adjusted Free Cash Flow before factoring in synergies. For more information, please reference Chord's August 7, 2024 presentation at https://ir.chordenergy.com/presentations.
- Full year volume projections updated to account for strong 1H24 performance and the latest development schedule. 2H24 oil volumes are unchanged from the May outlook. Pro forma FY24 midpoint oil volumes increased 0.5 MBopd;
- FY24 capital expenditures are unchanged from the May outlook (other than the impact of aligning Enerplus' accounting policies to Chord), while 2H24 capital reflects program timing and some spending deferred from 2Q24;
- LOE reflects the benefits of effective cost control and lower downtime;
- Overall combined cost structure favorable to expectations of each company entering the year; and
- Adjusting oil differentials, gas realizations, and Cash GPT to reflect current market prices, the alignment of Enerplus' accounting policies to Chord's accounting policies and the incorporation of Enerplus' cost structure.
The following table presents select operational and financial guidance for 3Q24 and FY24:
Metric | 3Q24 Guidance | FY24 Guidance | ||||
Combined1 | Pro Forma2 | |||||
Oil volumes (MBopd) | 154.5 – 159.5 | 130.4 – 132.9 | 150.9 – 153.5 | |||
NGL volumes (MBblpd) | 47.3 – 48.8 | 41.9 – 42.6 | 46.4 – 47.1 | |||
Natural gas volumes (MMcfpd) | 418.5 – 431.5 | 331.3 – 337.8 | 408.8 – 415.3 | |||
Total volumes (MBoepd) | 271.5 – 280.2 | 227.5 – 231.8 | 265.4 – 269.8 | |||
Oil discount to WTI ($/Bbl) | ||||||
NGL realization (% of WTI) | ||||||
Residue gas realization (% of Henry Hub) | ||||||
LOE ($/Boe) | ||||||
Cash GPT ($/Boe)(3) | ||||||
Cash G&A ($MM)(3) | ||||||
Production Taxes (% of oil, NGL and gas sales) | ||||||
E&P & Other CapEx ($MM) | ||||||
Cash Interest ($MM)(3) |
(1) | Excludes the results of Enerplus prior to May 31, 2024. | ||||||||||
(2) | Includes the results of Enerplus for the full year, including the impact of aligning Enerplus' accounting policies to Chord. | ||||||||||
(3) | Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measure under GAAP. |
Cash taxes in 2H24 are expected to be
Select Operational and Financial Data:
The following table presents select operational and financial data for the periods presented:
2Q24 | 1Q24 | 2Q23 | |||
Production data: | |||||
Crude oil (MBopd) | 118.1 | 99.0 | 96.4 | ||
NGLs (MBblpd) | 40.5 | 34.4 | 36.0 | ||
Natural gas (MMcfpd) | 291.5 | 209.8 | 219.3 | ||
Total production (MBoepd) | 207.2 | 168.4 | 169.0 | ||
Percent crude oil | 57.0 % | 58.8 % | 57.0 % | ||
Average sales prices: | |||||
Crude oil, without realized derivatives ($/Bbl) | $ 78.89 | $ 75.32 | $ 73.89 | ||
Differential to NYMEX WTI ($/Bbl) | (1.71) | (1.71) | 0.14 | ||
Crude oil, with realized derivatives ($/Bbl) | 78.53 | 75.17 | 68.03 | ||
Crude oil realized derivatives ($MM) | (3.9) | (1.4) | (51.4) | ||
NGL, without realized derivatives ($/Bbl) | 9.99 | 15.09 | 8.70 | ||
NGL, with realized derivatives ($/Bbl) | 9.99 | 15.09 | 8.70 | ||
NGL realized derivatives ($MM) | — | — | — | ||
Natural gas, without realized derivatives ($/Mcf) | 0.67 | 1.16 | 0.95 | ||
Natural gas, with realized derivatives ($/Mcf) | 0.67 | 1.16 | 0.96 | ||
Natural gas realized derivatives ($MM) | — | — | 0.1 | ||
Selected financial data ($MM): | |||||
Revenues: | |||||
Crude oil revenues | $ 848.1 | $ 678.9 | $ 647.9 | ||
NGL revenues | 36.8 | 47.3 | 28.5 | ||
Natural gas revenues | 17.8 | 22.1 | 19.0 | ||
Total oil, NGL and natural gas revenues | $ 902.7 | $ 748.3 | $ 695.4 | ||
Cash flows: | |||||
Net cash provided by operating activities: | $ 460.9 | $ 406.7 | $ 408.2 | ||
Non-GAAP financial measures(1): | |||||
Adjusted EBITDA | $ 567.9 | $ 464.8 | $ 369.6 | ||
Adjusted Free Cash Flow(2) | 216.1 | 199.6 | 105.3 | ||
Adjusted Net Income | 234.9 | 218.1 | 158.4 | ||
Select operating expenses: | |||||
LOE | $ 176.6 | $ 159.2 | $ 158.6 | ||
Gathering, processing and transportation expenses ("GPT") | 63.1 | 54.0 | 43.4 | ||
Production taxes | 79.5 | 63.9 | 58.5 | ||
Depreciation, depletion and amortization | 227.9 | 168.9 | 137.0 | ||
Total select operating expenses | $ 547.1 | $ 446.0 | $ 397.5 | ||
Earnings per share: | |||||
Basic earnings per share | $ 4.36 | $ 4.79 | $ 5.19 | ||
Diluted earnings per share | 4.25 | 4.65 | 4.96 | ||
Adjusted diluted earnings per share (Non-GAAP)(1) | 4.69 | 5.10 | 3.65 |
(1) | Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP. | ||||||||||||
(2) | 2Q24 Adjusted Free Cash Flow includes |
For the three months ended June 30, 2024, Marcellus natural gas volumes were 117.4 MMcfpd, and the realized natural gas price was
Capital Expenditures:
The following table presents the Company's total capital expenditures ("CapEx") by category for the periods presented:
1Q24 | 2Q24 | 1H24 | |||
CapEx ($MM): | |||||
E&P | $ 257.7 | $ 312.9 | $ 570.6 | ||
Other | — | 1.4 | 1.4 | ||
Total E&P and other CapEx(1) | 257.7 | 314.3 | 572.0 | ||
Capitalized interest | 0.7 | 1.2 | 1.9 | ||
Acquisitions | — | 6.6 | 6.6 | ||
Total CapEx | $ 258.4 | $ 322.1 | $ 580.5 |
(1) | 2Q24 and 1H24 include |
Return of Capital:
Chord declared a base-plus-variable cash dividend of
During 2Q24, the Company repurchased 365,310 shares of common stock at a weighted average price of
Balance Sheet and Liquidity:
The following table presents key balance sheet data and liquidity metrics as of June 30, 2024 (in millions):
June 30, 2024 | |
Revolving credit facility(1) | $ 1,500.0 |
Revolver borrowings | $ 575.0 |
Current portion of long-term debt(2) | 60.1 |
Senior notes | 400.0 |
Total debt | $ 1,035.1 |
Cash and cash equivalents | $ 197.4 |
Letters of credit | 30.2 |
Liquidity | 1,092.2 |
(1) | |||||||||||||
(2) | Balance represents legacy Enerplus senior notes repaid in full on July 2, 2024. |
NI 51-101 Exemption:
The Canadian securities regulatory authorities have issued a decision document (the "Decision") granting Chord exemptive relief from the requirements contained in
Contact:
Chord Energy Corporation
Bob Bakanauskas, Managing Director, Investor Relations
(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 8, 2024 | |
Time: | 9:00 a.m. Central | |
Live Webcast: |
To join the conference call by phone without operator assistance (including sell-side analysts wishing to ask a question), you may register and enter your phone number at https://emportal.ink/3zNnvXS to receive an instant automated call back and be immediately placed into the call.
You may also 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: | 52762 |
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 15, 2024 by dialing:
Replay dial-in: | 1-888-660-6345 |
Intl. replay: | 1-646-517-4150 |
Replay access: | 52762 # |
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 the benefits and synergies of the Enerplus combination, 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," "anticipate," "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, production levels and reinvestment rates, anticipated financial and operating results and other guidance and the effects, benefits and synergies of the Enerplus combination. 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 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, the ultimate results of integrating the operations of Chord, the effects of the Enerplus combination on Chord, including Chord's future financial condition, results of operations, strategy and plans, the ability of Chord to realize the anticipated benefits or synergies of the Enerplus combination in the timeframe expected or at all, changes in crude oil, NGL and natural gas prices, war between
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, 2023, 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
Comparability of Financial Statements
The results reported for the three and six months ended June 30, 2024 reflect the consolidated results of Chord, including combined operations with Enerplus beginning on May 31, 2024, while the results reported for the three and six months ended June 30, 2023 reflect the consolidated results of Chord, excluding the impact from the business combination with Enerplus and the 2023 acquisition of acreage in the Williston Basin, unless otherwise noted.
Chord Energy Corporation Consolidated Balance Sheets (Unaudited) (In thousands, except share data) | |||
June 30, 2024 | December 31, 2023 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 197,389 | $ 317,998 | |
Accounts receivable, net | 1,275,934 | 943,114 | |
Inventory | 79,905 | 72,565 | |
Prepaid expenses | 23,827 | 42,450 | |
Derivative instruments | 25,292 | 37,369 | |
Other current assets | 2,044 | 11,055 | |
Total current assets | 1,604,391 | 1,424,551 | |
Property, plant and equipment | |||
Oil and gas properties (successful efforts method) | 12,137,734 | 6,320,243 | |
Other property and equipment | 57,327 | 49,051 | |
Less: accumulated depreciation, depletion and amortization | (1,442,011) | (1,054,616) | |
Total property, plant and equipment, net | 10,753,050 | 5,314,678 | |
Derivative instruments | 22,542 | 22,526 | |
Investment in unconsolidated affiliate | 117,738 | 100,172 | |
Long-term inventory | 27,619 | 22,936 | |
Operating right-of-use assets | 58,724 | 21,343 | |
Goodwill | 539,793 | — | |
Other assets | 23,481 | 19,944 | |
Total assets | $ 13,147,338 | $ 6,926,150 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable | $ 38,189 | $ 34,453 | |
Revenues and production taxes payable | 772,565 | 604,704 | |
Accrued liabilities | 714,427 | 493,381 | |
Current portion of long-term debt, net | 60,063 | — | |
Accrued interest payable | 4,891 | 2,157 | |
Derivative instruments | 13,943 | 14,209 | |
Advances from joint interest partners | 2,473 | 2,381 | |
Current operating lease liabilities | 39,914 | 13,258 | |
Other current liabilities | 31,650 | 916 | |
Total current liabilities | 1,678,115 | 1,165,459 | |
Long-term debt | 971,746 | 395,902 | |
Deferred tax liabilities | 1,345,220 | 95,322 | |
Asset retirement obligations | 275,817 | 155,040 | |
Derivative instruments | 1,428 | 717 | |
Operating lease liabilities | 29,114 | 18,667 | |
Other liabilities | 4,748 | 18,419 | |
Total liabilities | 4,306,188 | 1,849,526 | |
Commitments and contingencies | |||
Stockholders' equity | |||
Common stock, | 668 | 456 | |
Treasury stock, at cost: 4,341,458 shares at June 30, 2024 and 3,782,879 shares at | (585,035) | (493,289) | |
Additional paid-in capital | 7,314,414 | 3,608,819 | |
Retained earnings | 2,111,103 | 1,960,638 | |
Total stockholders' equity | 8,841,150 | 5,076,624 | |
Total liabilities and stockholders' equity | $ 13,147,338 | $ 6,926,150 |
Chord Energy Corporation Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues | |||||||
Oil, NGL and gas revenues | $ 902,667 | $ 695,426 | $ 1,650,829 | $ 1,461,626 | |||
Purchased oil and gas sales | 358,013 | 216,645 | 695,111 | 346,962 | |||
Total revenues | 1,260,680 | 912,071 | 2,345,940 | 1,808,588 | |||
Operating expenses | |||||||
Lease operating expenses | 176,647 | 158,554 | 335,853 | 311,962 | |||
Gathering, processing and transportation expenses | 63,130 | 43,397 | 117,114 | 80,412 | |||
Purchased oil and gas expenses | 356,356 | 216,226 | 692,118 | 345,819 | |||
Production taxes | 79,522 | 58,488 | 143,433 | 119,005 | |||
Depreciation, depletion and amortization | 227,928 | 137,046 | 396,822 | 270,837 | |||
General and administrative expenses | 82,077 | 42,174 | 107,789 | 74,658 | |||
Exploration and impairment | 1,485 | 6,782 | 7,639 | 31,646 | |||
Total operating expenses | 987,145 | 662,667 | 1,800,768 | 1,234,339 | |||
Gain on sale of assets, net | 15,486 | 1,613 | 16,788 | 2,840 | |||
Operating income | 289,021 | 251,017 | 561,960 | 577,089 | |||
Other income (expense) | |||||||
Net gain (loss) on derivative instruments | 4,608 | 29,518 | (22,969) | 96,452 | |||
Net gain from investment in unconsolidated affiliate | 5,862 | 10,126 | 22,158 | 7,910 | |||
Interest expense, net of capitalized interest | (12,208) | (7,228) | (19,800) | (14,363) | |||
Other income | 4,081 | 2,293 | 6,907 | 7,486 | |||
Total other income (expense), net | 2,343 | 34,709 | (13,704) | 97,485 | |||
Income before income taxes | 291,364 | 285,726 | 548,256 | 674,574 | |||
Income tax expense | (78,003) | (69,655) | (135,541) | (161,504) | |||
Net income | $ 213,361 | $ 216,071 | $ 412,715 | $ 513,070 | |||
Earnings per share: | |||||||
Basic | $ 4.36 | $ 5.19 | $ 9.12 | $ 12.32 | |||
Diluted | $ 4.25 | $ 4.96 | $ 8.87 | $ 11.83 | |||
Weighted average shares outstanding: | |||||||
Basic | 48,665 | 41,494 | 45,048 | 41,531 | |||
Diluted | 49,916 | 43,386 | 46,313 | 43,267 |
Chord Energy Corporation Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||
Six Months Ended June 30, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 412,715 | $ 513,070 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 396,822 | 270,837 | |
Gain on sale of assets | (16,788) | (2,840) | |
Impairment | 3,919 | 28,964 | |
Deferred income taxes | 70,699 | 145,857 | |
Net (gain) loss on derivative instruments | 22,969 | (96,452) | |
Net gain from investment in unconsolidated affiliate | (22,158) | (7,910) | |
Equity-based compensation expenses | 10,130 | 27,181 | |
Deferred financing costs amortization and other | 7,343 | (4,035) | |
Working capital and other changes: | |||
Change in accounts receivable, net | (69,496) | 5,564 | |
Change in inventory | (5,557) | (3,526) | |
Change in prepaid expenses | 17,262 | 317 | |
Change in accounts payable, interest payable and accrued liabilities | 3,065 | (11,084) | |
Change in other assets and liabilities, net | 36,649 | 11,104 | |
Net cash provided by operating activities | 867,574 | 877,047 | |
Cash flows from investing activities: | |||
Capital expenditures | (538,733) | (407,773) | |
Acquisitions, net of cash acquired | (645,971) | (361,609) | |
Proceeds from divestitures, net of cash divested | 20,876 | 59,219 | |
Derivative settlements | (16,339) | (154,110) | |
Contingent consideration received | 25,000 | — | |
Distributions from investment in unconsolidated affiliate | 4,591 | 5,984 | |
Net cash used in investing activities | (1,150,576) | (858,289) | |
Cash flows from financing activities: | |||
Proceeds from revolving credit facilities | 825,000 | — | |
Principal payments on revolving credit facilities | (250,000) | — | |
Repurchases of common stock | (93,745) | (45,818) | |
Tax withholding on vesting of equity-based awards | (57,357) | (13,631) | |
Chord dividends paid | (281,681) | (337,747) | |
Payments on finance lease liabilities | (834) | (933) | |
Proceeds from warrants exercised | 21,010 | 1,007 | |
Net cash provided by (used in) financing activities | 162,393 | (397,122) | |
Decrease in cash and cash equivalents | (120,609) | (378,364) | |
Cash and cash equivalents: | |||
Beginning of period | 317,998 | 593,151 | |
End of period | $ 197,389 | $ 214,787 | |
Supplemental non-cash transactions(1): | |||
Change in accrued capital expenditures | $ 24,389 | $ 74,114 | |
Change in asset retirement obligations | 3,476 | 547 | |
Dividends payable | 19,502 | 35,321 |
(1) | Amounts exclude non-cash consideration transferred and balances acquired on May 31, 2024 in respect of the arrangement with Enerplus. |
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 and non-cash mark-to-market adjustments on transportation contracts accounted for as derivative instruments. 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, and without regard to the non-cash mark-to-market adjustments on transportation contracts classified as derivative instruments.
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
GPT | $ 63,130 | $ 43,397 | $ 117,114 | $ 80,412 | |||
Pipeline imbalances | (488) | (2,133) | (681) | (8,137) | |||
Gain (loss) on derivative transportation contracts | (2,647) | 7,123 | (5,877) | 18,279 | |||
Cash GPT | $ 59,995 | $ 48,387 | $ 110,556 | $ 90,554 |
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
General and administrative expenses | $ 82,077 | $ 42,174 | $ 107,789 | $ 74,658 | |||
Merger costs(1) | (54,687) | (6,908) | (62,794) | (9,701) | |||
Equity-based compensation expenses | (5,359) | (15,327) | (10,130) | (27,181) | |||
Other non-cash adjustments | (199) | (2,284) | 1,461 | (1,873) | |||
Cash G&A | $ 21,832 | $ 17,655 | $ 36,326 | $ 35,903 |
(1) | Includes costs directly attributable to the arrangement with Enerplus for the three and six months ended June 30, 2024 and the costs directly attributable to the merger of equals with Whiting Petroleum Corporation ("Whiting") for the three and six months ended June 30, 2023. |
Cash Interest
The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs 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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
Interest expense | $ 12,208 | $ 7,228 | $ 19,800 | $ 14,363 | |||
Capitalized interest | 1,158 | 1,323 | 1,867 | 2,744 | |||
Amortization of deferred financing costs | (1,366) | (1,211) | (2,258) | (2,409) | |||
Cash Interest | $ 12,000 | $ 7,340 | $ 19,409 | $ 14,698 |
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 and other similar non-cash or non-recurring charges. The Company defines Adjusted Free Cash Flow as Adjusted EBITDA less Cash Interest and E&P and other capital expenditures (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, 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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
Net income | $ 213,361 | $ 216,071 | $ 412,715 | $ 513,070 | |||
Interest expense, net of capitalized interest | 12,208 | 7,228 | 19,800 | 14,363 | |||
Income tax expense | 78,003 | 69,655 | 135,541 | 161,504 | |||
Depreciation, depletion and amortization | 227,928 | 137,046 | 396,822 | 270,837 | |||
Merger costs(1) | 54,687 | 6,908 | 62,794 | 9,701 | |||
Exploration and impairment expenses | 1,485 | 6,782 | 7,639 | 31,646 | |||
Gain on sale of assets | (15,486) | (1,613) | (16,788) | (2,840) | |||
Net (gain) loss on derivative instruments | (4,608) | (29,518) | 22,969 | (96,452) | |||
Realized loss on commodity price derivative contracts | (3,896) | (51,241) | (5,257) | (143,099) | |||
Net gain from investment in unconsolidated affiliate | (5,862) | (10,126) | (22,158) | (7,910) | |||
Distributions from investment in unconsolidated affiliate | 2,305 | 2,969 | 4,591 | 5,984 | |||
Equity-based compensation expenses | 5,359 | 15,327 | 10,130 | 27,181 | |||
Other non-cash adjustments | 2,455 | 154 | 3,919 | (6,059) | |||
Adjusted EBITDA | 567,939 | 369,642 | 1,032,717 | 777,926 | |||
Cash Interest | (12,000) | (7,340) | (19,409) | (14,698) | |||
E&P and other capital expenditures | (314,311) | (257,012) | (572,059) | (459,308) | |||
Cash taxes paid | (25,500) | — | (25,500) | — | |||
Adjusted Free Cash Flow | $ 216,128 | $ 105,290 | $ 415,749 | $ 303,920 | |||
Net cash provided by operating activities | $ 460,875 | $ 408,235 | $ 867,574 | $ 877,047 | |||
Changes in working capital | 8,229 | (3,700) | 18,078 | (2,376) | |||
Interest expense, net of capitalized interest | 12,208 | 7,228 | 19,800 | 14,363 | |||
Current income tax expense | 34,271 | (2,280) | 64,841 | 15,647 | |||
Merger costs(1) | 54,687 | 6,908 | 62,794 | 9,701 | |||
Exploration expenses | 1,485 | 1,124 | 3,720 | 2,683 | |||
Realized loss on commodity price derivative contracts | (3,896) | (51,241) | (5,257) | (143,099) | |||
Distributions from investment in unconsolidated affiliate | 2,305 | 2,969 | 4,591 | 5,984 | |||
Deferred financing costs amortization and other | (4,680) | 245 | (7,343) | 4,035 | |||
Other non-cash adjustments | 2,455 | 154 | 3,919 | (6,059) | |||
Adjusted EBITDA | 567,939 | 369,642 | 1,032,717 | 777,926 | |||
Cash Interest | (12,000) | (7,340) | (19,409) | (14,698) | |||
E&P and other capital expenditures(2) | (314,311) | (257,012) | (572,059) | (459,308) | |||
Cash taxes paid | (25,500) | — | (25,500) | — | |||
Adjusted Free Cash Flow | $ 216,128 | $ 105,290 | $ 415,749 | $ 303,920 |
(1) | Includes costs directly attributable to the arrangement with Enerplus for the three and six months ended June 30, 2024 and the costs directly attributable to the merger of equals with Whiting for the three and six months ended June 30, 2023. | ||||||
(2) | The three and six months ended June 30, 2024 includes approximately |
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 an unconsolidated affiliate, impairment and other similar non-cash charges, (2) merger costs and (3) the impact of taxes based on the Company's effective 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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
Net income | $ 213,361 | $ 216,071 | $ 412,715 | $ 513,070 | |||
Net (gain) loss on derivative instruments | (4,608) | (29,518) | 22,969 | (96,452) | |||
Realized loss on commodity price derivative contracts | (3,896) | (51,241) | (5,257) | (143,099) | |||
Net gain from investment in unconsolidated affiliate | (5,862) | (10,126) | (22,158) | (7,910) | |||
Distributions from investment in unconsolidated affiliate | 2,305 | 2,969 | 4,591 | 5,984 | |||
Impairment | — | 5,660 | 3,919 | 28,964 | |||
Merger costs(1) | 54,687 | 6,908 | 62,794 | 9,701 | |||
Gain on sale of assets | (15,486) | (1,613) | (16,788) | (2,840) | |||
Amortization of deferred financing costs | 1,366 | 1,211 | 2,258 | 2,409 | |||
Other non-cash adjustments | 2,455 | 154 | 3,919 | (6,059) | |||
Tax impact(2) | (8,288) | 18,429 | (13,952) | 50,012 | |||
Adjusted net income | 236,034 | 158,904 | 455,010 | 353,780 | |||
Distributed and undistributed earnings allocated to | (1,121) | (526) | (1,494) | (954) | |||
Adjusted net income attributable to common | $ 234,913 | $ 158,378 | $ 453,516 | $ 352,826 | |||
Diluted earnings per share | $ 4.25 | $ 4.98 | $ 8.87 | $ 11.86 | |||
Net (gain) loss on derivative instruments | (0.09) | (0.68) | 0.50 | (2.23) | |||
Realized loss on commodity price derivative contracts | (0.08) | (1.18) | (0.11) | (3.31) | |||
Net gain from investment in unconsolidated affiliate | (0.12) | (0.23) | (0.48) | (0.18) | |||
Distributions from investment in unconsolidated affiliate | 0.05 | 0.07 | 0.10 | 0.14 | |||
Impairment | — | 0.13 | 0.08 | 0.67 | |||
Merger costs(1) | 1.10 | 0.16 | 1.36 | 0.22 | |||
Gain on sale of assets | (0.31) | (0.04) | (0.36) | (0.07) | |||
Amortization of deferred financing costs | 0.03 | 0.03 | 0.05 | 0.06 | |||
Other non-cash adjustments | 0.05 | — | 0.08 | (0.14) | |||
Tax impact(2) | (0.17) | 0.42 | (0.30) | 1.16 | |||
Adjusted Diluted Earnings Per Share | 4.71 | 3.66 | 9.79 | 8.18 | |||
Less: Distributed and undistributed earnings allocated to | (0.02) | (0.01) | (0.03) | (0.02) | |||
Adjusted Diluted Earnings Per Share | $ 4.69 | $ 3.65 | $ 9.76 | $ 8.16 | |||
Diluted weighted average shares outstanding | 49,916 | 43,386 | 46,313 | 43,267 | |||
Effective tax rate applicable to adjustment items(2) | 26.8 % | 24.4 % | 24.7 % | 23.9 % |
(1) | Includes costs directly attributable to the arrangement with Enerplus for the three and six months ended June 30, 2024 and the costs directly attributable to the merger of equals with Whiting for the three and six months ended June 30, 2023. | |||||
(2) | The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
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SOURCE Chord Energy
FAQ
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