Chord Energy (CHRD) Q4 2023 & Business Combination earnings summary

Executive summary

• 4Q23 oil volumes of 106.2 MBopd and total volumes of 183.8 MBoepd exceeded the high end of guidance; FY23 volumes were 99.8 MBopd and 173.4 MBoepd, respectively.

• FY23 execution included strong second-half volume growth and 3-mile wells at ~50% of the mix; 2024 plans raise that share to ~two-thirds.

• 2023 proved reserves reached 636.2 MMBoe, including additions from successful Williston Basin drilling and the June XTO bolt-on acquisition.

Financial highlights

• 4Q23 net income was $301.6MM, or $6.93/diluted share; Adjusted Net Income was $228.0MM, or $5.25/adjusted diluted share.

• 4Q23 operating cash flow was $543.3MM, Adjusted EBITDA $480.9MM and Adjusted Free Cash Flow $247.4MM.

• FY23 revenue was $3.132B, net income $377.6MM, Adjusted EBITDA $1.728B and Adjusted Free Cash Flow $758.7MM.

• FY23 E&P and other CapEx was $922.3MM, above guidance; 4Q23 CapEx was $208.8MM, including reimbursed capital of $3.5MM and $14.5MM for the respective periods.

Outlook and guidance

• FY24 guidance: oil 97–101 MBopd, total production 167.3–173.3 MBoepd, E&P and other CapEx $905–$945MM, and 103–113 gross operated TIL wells.

• At midpoint guidance and $79/Bbl WTI and $2.50/MMBtu Henry Hub, FY24 Adjusted EBITDA is expected at ~$1.9B and Adjusted Free Cash Flow at ~$875MM; reinvestment rate ~50%.

• About 80% of FY24 CapEx is planned for drilling and completions; average working interest is expected at ~75%.

• 1Q24 oil guidance is 95–98 MBopd, including January winter-storm downtime and deferred activity; FY24 volumes are expected highest in 2H.