Chord Energy Reports Strong Fourth Quarter and Full-Year 2024 Financial and Operating Results, Issues 2025 Outlook and Increases Base Dividend

2025-02-25

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States

PR Newswire

HOUSTON , Feb. 25, 2025 /PRNewswire/ -- Chord Energy Corporation (NASDAQ: CHRD) ("Chord", "Chord Energy" or the "Company") today reported financial and operating results for the fourth quarter and full-year 2024 and announced its 2025 outlook. The results for the year ended December 31, 2024 include the results of Enerplus Corporation ("Enerplus") for the period subsequent to May 31, 2024 , unless otherwise noted.

[](https://mma.prnewswire.com/media/149734/Chord_Energy_Logo_NEW.html)

Key Takeaways and Updates:

Cash Flow from Operations and Adjusted Free Cash Flow exceeded expectations in 4Q24, supported by oil volumes near the high-end of guidance and strong cost control; Returning 100% of Adjusted Free Cash Flow (1)(2) to shareholders in 4Q24 with $205 .0MM, or 73%, in the form of share repurchases; Since closing the Enerplus combination, Chord has repurchased 3.5MM shares of common stock through February 21, 2025 , representing >5% of shares outstanding; Increasing 4Q24 base dividend to $1.30 per share, representing an increase of 4%; FY25 midpoint volume and capital expenditures ("CapEx") guidance matches three-year outlook announced in November 2024 , with midpoint CapEx of $1.4B to deliver midpoint oil volumes of 152.5 MBopd; FY24 CapEx was $1 ,470MM on a pro forma basis, $20MM below Chord's original full-year outlook after close of the Enerplus combination; FY24 oil volumes were 153.0 MBopd on a pro forma basis (152.4 MBopd excluding DJ Basin assets), exceeding Chord's original full-year outlook after close of the Enerplus combination by 700 Bopd; and Successfully drilled first four-mile lateral in 4Q24 with completion operations commencing 1Q25.

4Q24 Operational and Financial Highlights:

Oil volumes of 153.3 MBopd were above midpoint guidance, reflecting strong well performance; Total volumes of 273.5 MBoepd exceeded the high-end of guidance; E&P and other CapEx of $330 .3MM ( $325 .1MM excluding $5 .2MM of reimbursed non-op CapEx) was below midpoint guidance; Lease Operating Expense ("LOE") of $9.60 per Boe was below midpoint guidance; Net cash provided by operating activities was $566 .5MM and net income was $210 .6MM; and Adjusted EBITDA (1) was $640 .1MM and Adjusted Free Cash Flow (1) was $276 .9MM ( $282 .1MM, excluding $5 .2MM of reimbursed non-op CapEx).

| (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"). |

"I'm very pleased with Chord's positioning as we enter 2025," said Danny Brown , Chord Energy's President and Chief Executive Officer. "Chord's significant synergy capture from the Enerplus transaction, our utilization of longer laterals and wider spacing, and our strong operational performance has delivered highly efficient capital investment opportunities, strong economic returns, and has placed us in a leadership position in the Williston Basin. As I look forward, our substantial, low-cost inventory continues to generate compelling economics at low reinvestment rates and yields robust free cash-flow and attractive return of capital options. In 2024, on a pro forma basis, Chord returned $944 million to shareholders, representing approximately 14% of our current market capitalization. We believe Chord is a compelling investment opportunity and expect share repurchases to comprise a significant portion of future shareholder returns, particularly at current prices."

Mr. Brown continued, "Fourth quarter performance was the latest in a series of strong quarters, with higher than expected production supported by solid execution and excellent well results, all while maintaining a focus on cost control. Robust first quarter guidance reflects a strong start to the 2025 program and positions us well for this year and beyond. And while I am proud of what we've accomplished, we remain focused as an organization on driving continuous improvement through the business and delivering even better efficiency. In summary, our low-cost inventory, capital efficient development program, and strong balance sheet support sustainable free cash flow generation and high shareholder returns. My thanks and congratulations to the Chord team for continuing to execute well, making our organization better, and operating in a safe and sustainable manner."

4Q24 Operational and Financial Update:

The following table presents select 4Q24 operational and financial data compared to guidance released on November 6, 2024 :

| Metric | | 4Q24 Actual | | 4Q24 Guidance | | Oil Volumes (MBopd) | | 153.3 | | 149.5 – 154.5 | | NGL Volumes (MBblpd) | | 51.8 | | 46.1 – 47.6 | | Natural Gas Volumes (MMcfpd) | | 410.5 | | 395.5 – 408.5 | | Total Volumes (MBoepd) | | 273.5 | | 261.5 – 270.1 | | E&P & Other CapEx ($MM) (1) | | $330.3 | | $315 – $355 | | Oil Discount to WTI ($/Bbl) | | $(1.49) | | $(2.00) – $0.00 | | NGL Realization (% of WTI) | | 14 % | | 5% – 15% | | Natural Gas Realization (% of Henry Hub) | | 43 % | | 25% – 35% | | LOE ($/Boe) | | $9.60 | | $9.25 – $10.25 | | Cash GPT ($/Boe) (2) | | $2.86 | | $2.60 – $3.20 | | Cash G&A ($MM) (2) | | $31.2 | | $29.0 – $31.0 | | Production Taxes (% of Oil, NGL and Natural Gas Sales) | | 8.4 % | | 8.7% – 9.1% | | Cash Interest ($MM) (2) | | $17.6 | | $18.0 – $20.0 |

| | | | | | | | | | (1) | 4Q24 includes $5.2MM of capital incurred related to divested non-operated assets that was reimbursed. | | | | | | | | (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 36 gross (26.2 net) operated turn-in-line ("TIL") wells in 4Q24.

During the three months ended December 31, 2024 , net cash provided by operating activities was $566 .5MM and net income was $210 .6MM ( $3.43 /diluted share).

Adjusted EBITDA was $640 .1MM, Adjusted Free Cash Flow was $276 .9MM and Adjusted Net Income was $213 .5MM ( $3.49 /diluted share). Cash taxes paid during the three months ended December 31, 2024 were $15 .2MM, or 2.4% of Adjusted EBITDA, compared to the 4Q24 guidance range of 0% - 5% of Adjusted EBITDA at WTI prices of $60 /Bbl – $80 /Bbl. Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Net Income are non-GAAP financial measures. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP.

Estimated Net Proved Reserves:

During 2024, the Company added 63.7 million barrels of oil equivalent ("MMBoe") of net proved reserves as a result of successful drilling in the Williston Basin and 315.3 MMBoe from the purchase of reserves in place associated with the Enerplus Acquisition in May 2024 . Chord's estimated net proved reserves at December 31, 2024 were 883.0 MMBoe and consisted of 503.4 million barrels ("MMBbl") of crude oil, 167.2 MMBbl of NGLs and 1,274.7 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, 2024 , the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months were $75.48 per Bbl for crude oil and $2.13 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, 2024 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, 2024 :

(in millions) | | Developed | | 317.7 | | 125.8 | | 1,053.3 | | 619.0 | | $ 7,519.9 | | Undeveloped | | 185.7 | | 41.4 | | 221.4 | | 264.0 | | 2,742.7 | | Total Proved | | 503.4 | | 167.2 | | 1,274.7 | | 883.0 | | $ 10,262.6 |

| | | | | | | | | | | | | (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, representing an increase of approximately 4% from the base dividend declared in November 2024 . The dividend will be payable on March 26, 2025 to shareholders of record as of March 11, 2025. 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 1,604,011 shares of common stock at a weighted average price of $127.82 per share totaling $205 .0MM in 4Q24, representing 100% of shareholder returns after the base dividend. Shares issued and outstanding as of February 21, 2025 were 59.6MM (60.3MM on a fully diluted basis) compared to 60.1MM as of December 31 , 2024.

2025 Outlook:

Chord's 2025 program focuses on maximizing free cash flow generation through strong capital efficiency. The 2025 outlook is consistent with Chord's three-year outlook that was announced in November 2024 to deliver oil volumes of 152 MBopd – 153 MBopd for $1.4B of CapEx annually. Chord expects to generate approximately $2.5B of Adjusted EBITDA and $860MM of Adjusted Free Cash Flow in 2025 ( $70 /Bbl WTI and $3.50 /MMBtu Henry Hub).

Highlights of the 2025 plan include:

E&P and other CapEx is expected to total $1.4B at the midpoint of guidance, representing a decrease of $90MM from the original pro forma 2024 outlook. Approximately 80% of E&P and other CapEx is expected to be invested in drilling and completions. FY25 non-operated CapEx is expected to total $215MM at midpoint (~80% Williston) and is included in FY25 midpoint CapEx guidance of $1.4B . E&P and other CapEx is expected to be weighted towards 1H25; FY24 oil volumes are expected to be 152.5 MBopd at the midpoint of guidance. Chord was on track to deliver approximately 153 MBopd – 154 MBopd of production in 1Q25 before recent winter storms with temperatures below negative 30 degrees. Chord is monitoring production as temperatures improve and currently expects 1Q25 volumes to range from 149.5 – 152.5 MBopd. Oil volumes in 2Q25 are expected to be slightly up compared to 1Q25 with further growth into 3Q25; NGL and natural gas realizations are expected to be above the FY25 midpoint in 1Q25 and 4Q25 and below the FY25 midpoint in 2Q25 and 3Q25 reflecting the price seasonality of the respective commodities; and Chord plans to TIL 130 – 150 gross operated wells (approximately 40% 3-mile laterals) in 2025 with an average working interest of approximately 80%. Chord plans to TIL 22 – 32 gross operated wells in 1Q25.

The following table presents select operational and financial guidance for 1Q25 and FY25:

| Metric | | 1Q25 Guidance | | FY25 Guidance | | Oil Volumes (MBopd) | | 149.5 – 152.5 | | 150.3 – 154.8 | | NGL Volumes (MBblpd) | | 46.8 – 48.3 | | 47.8 – 49.3 | | Natural Gas Volumes (MMcfpd) | | 402.0 – 415.0 | | 415.5 – 428.5 | | Total Volumes (MBoepd) | | 263.3 – 269.9 | | 267.3 – 275.5 | | E&P & Other CapEx ($MM) | | $350 – $380 | | $1,340 – $1,460 | | Oil Discount to WTI ($/Bbl) | | $(3.00) – $(1.00) | | $(2.75) – $(0.75) | | NGL Realization (% of WTI) | | 13% – 23% | | 9% – 19% | | Natural Gas Realization (% of Henry Hub) | | 45% – 55% | | 35% – 45% | | LOE ($/Boe) | | $9.40 – $10.40 | | $9.40 – $10.40 | | Cash GPT ($/Boe) (1) | | $2.65 – $3.15 | | $2.65 – $3.15 | | Cash G&A ($MM) (1) | | $29.0 – $31.0 | | $97.0 – $107.0 | | Production Taxes (% of Oil, NGL and Natural Gas Sales) | | 8.3% – 8.7% | | 8.4% – 8.8% | | Cash Interest ($MM) (1) | | $15.0 – $17.0 | | $51.0 – $59.0 | | Cash Tax (% of Adjusted EBITDA) (2) | | 1% – 7% | | 3% – 10% |

| | | | | | | | | | | (1) | Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measure under GAAP. | | | | | | | | | (2) | Cash Tax guidance reflects WTI prices between $60/Bbl – $80/Bbl. | | | | | | | |

Select Operational and Financial Data:

The following table presents select operational and financial data for the periods presented:

| | 4Q24 | | 3Q24 | | FY24 | | Production data: | | | | | | | Crude oil (MBopd) | 153.3 | | 158.8 | | 132.5 | | NGLs (MBblpd) | 51.8 | | 51.7 | | 44.6 | | Natural gas (MMcfpd) | 410.5 | | 421.8 | | 333.9 | | Total production (MBoepd) | 273.5 | | 280.8 | | 232.7 | | Percent crude oil | 56.1 % | | 56.6 % | | 56.9 % | | Average sales prices: | | | | | | | Crude oil, without realized derivatives ($/Bbl) | $ 68.79 | | $ 73.51 | | $ 73.67 | | Differential to NYMEX WTI ($/Bbl) | (1.49) | | (1.51) | | (1.52) | | Crude oil, with realized derivatives ($/Bbl) | 69.16 | | 73.58 | | 73.69 | | Crude oil realized derivatives ($MM) | (5.2) | | (1.0) | | (0.9) | | NGL, without realized derivatives ($/Bbl) | 10.07 | | 6.31 | | 9.92 | | NGL, with realized derivatives ($/Bbl) | 10.07 | | 6.31 | | 9.92 | | Natural gas, without realized derivatives ($/Mcf) | 1.21 | | 0.44 | | 0.84 | | Natural gas, with realized derivatives ($/Mcf) | 1.21 | | 0.44 | | 0.84 | | Selected financial data ($MM): | | | | | | | Revenues: | | | | | | | Crude oil revenues | $ 970.4 | | $ 1,073.9 | | $ 3,571.3 | | NGL revenues | 48.0 | | 30.0 | | 162.1 | | Natural gas revenues | 45.9 | | 17.1 | | 102.8 | | Total oil, NGL and natural gas revenues | $ 1,064.3 | | $ 1,121.0 | | $ 3,836.2 | | Cash flows: | | | | | | | Net cash provided by operating activities: | $ 566.5 | | $ 663.2 | | $ 2,097.2 | | Non-GAAP financial measures (1) : | | | | | | | Adjusted EBITDA | $ 640.1 | | $ 674.5 | | $ 2,347.3 | | Adjusted Free Cash Flow (2) | 276.9 | | 312.5 | | 1,005.1 | | Adjusted Net Income Attributable to Common Stockholders | 213.5 | | 212.8 | | 879.4 | | Select operating expenses: | | | | | | | LOE | $ 241.5 | | $ 247.1 | | $ 824.4 | | Gathering, processing and transportation expenses ("GPT") | 73.1 | | 77.4 | | 267.6 | | Production taxes | 89.0 | | 101.0 | | 333.4 | | Depreciation, depletion and amortization | 350.7 | | 360.2 | | 1,107.8 | | Total select operating expenses | $ 754.3 | | $ 785.7 | | $ 2,533.2 | | Earnings per share: | | | | | | | Basic earnings per share | $ 3.45 | | $ 3.63 | | $ 16.32 | | Diluted earnings per share | 3.43 | | 3.59 | | 16.02 | | Adjusted diluted earnings per share (Non-GAAP) (1) | 3.49 | | 3.40 | | 16.67 |

| | | | | | | | | (1) | Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP. | | | | | | | (2) | 4Q24 and FY24 Adjusted Free Cash Flow includes $5.2MM and $25.2MM, respectively, of capital incurred related to divested non-operated assets that was reimbursed. | | | | | |

Marcellus natural gas volumes and realized natural gas prices were 113.7 MMcfpd and $2.29 /Mcf, respectively, in 4Q24. For the year ended December 31, 2024 (including a full-year of Enerplus), Marcellus natural gas volumes and realized natural gas prices were 115.4 MMcfpd and $1.84 /Mcf, respectively.

Capital Expenditures:

The following table presents the Company's total CapEx by category for the periods presented:

| | 1Q24 | | 2Q24 | | 3Q24 | | 4Q24 | | YTD24 | | CapEx ($MM): | | | | | | | | | | | E&P | $ 257.7 | | $ 312.9 | | $ 328.4 | | $ 330.2 | | $ 1,229.2 | | Other | — | | 1.4 | | 0.8 | | 0.1 | | 2.3 | | Total E&P and other CapEx (1) | 257.7 | | 314.3 | | 329.2 | | 330.3 | | 1,231.5 | | Capitalized interest | 0.7 | | 1.2 | | 1.8 | | 1.2 | | 4.9 | | Acquisitions | — | | 6.6 | | 7.0 | | 2.4 | | 16.0 | | Total CapEx | $ 258.4 | | $ 322.1 | | $ 338.0 | | $ 333.9 | | $ 1,252.4 |

| | | | | | | | | (1) | 4Q24 and FY24 includes $5.2MM and $25.2MM, respectively, of capital incurred related to divested non-operated assets that was reimbursed. | | | | | |

Balance Sheet and Liquidity:

In February 2025 , the Company completed its semi-annual borrowing base redetermination, setting the borrowing base at $2.75 billion and increasing the aggregate amount of elected commitments to $2.0 billion . The next scheduled redetermination is expected to occur in or around October 2025 .

The following table presents key balance sheet data and liquidity metrics as of December 31, 2024 (in millions) after taking into account the February 2025 redetermination:

| | December 31, 2024 | | Revolving credit facility (1) | $ 2,000.0 | | | | | Revolver borrowings | $ 445.0 | | Senior notes | 400.0 | | Total debt | $ 845.0 | | | | | Cash and cash equivalents | $ 37.0 | | Letters of credit | 30.8 | | Liquidity | 1,561.2 |

| | | | | | | | (1) | $2.75B borrowing base and $2.0B of elected commitments after annual borrowing base completed in February 2025. | | | | |

Contact:

Chord Energy Corporation Bob Bakanauskas , Vice President, Investor Relations (281) 404-9600 ir@chordenergy.com

Conference Call Information

Investors, analysts and other interested parties are invited to listen to the 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/41Y07CR 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: | | 11874 |

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 Wednesday, March 5, 2025 by dialing:

| Replay dial-in: | | 1-888-660-6345 | | Intl. replay: | | 1-646-517-4150 | | Replay access: | | 11874 # |

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.