Chord Energy (CHRD) Q4 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in 2025, exceeding oil volume guidance, reducing capital by $60 million, and achieving over $160 million in free cash flow improvements from controllable items.

• Premier Williston Basin operator with over 1.3 million net acres, enhanced scale through disciplined M&A, including XTO and Enerplus acquisitions, and maintained a peer-leading balance sheet with low leverage (~0.6x) and $2.2B liquidity at 4Q25.

• Aggressive capital return program, with $6.7 billion returned to shareholders since 2021, including significant share buybacks and a $5.20/share base dividend.

• Completed the acquisition of core Williston Basin assets from XTO Energy, adding 38 MMBoe of reserves.

• Implemented continuous improvement initiatives and AI-driven optimization, delivering $160 million annual run-rate savings and operational enhancements.

Financial highlights

• FY25 total revenues reached $3.9 billion, with adjusted EBITDA of $2.33 billion and adjusted free cash flow of $837 million.

• 2025 oil production averaged 154.8 MBopd; total production 276.6 MBoepd; 4Q25 oil volumes were 153.0 MBopd, at the high end of guidance.

• FY25 CapEx was $1.36 billion, with acquisition and leasehold costs of $576.5 million, including $542.2 million for the XTO acquisition.

• Over $700 million returned to shareholders in 2025, with a 12% reduction in share count since YE23.

• Maintained strong credit ratings (Moody's Ba1, S&P BB) and no near-term debt maturities.

Outlook and guidance

• 2026 oil volumes guided at 157,000–161,000 barrels/day, with CapEx of $1.35–$1.45 billion and ~80% long-lateral wells.

• Free cash flow for 2026 projected at ~$700 million at $64/bbl oil and $3.75/MMBtu gas.

• 1Q26 oil volumes expected at 152.5–155.5 MBopd, reflecting weather-related impacts.

• Plans to TIL 135–165 gross operated wells in FY26, with ~40% being 4-mile laterals.

• Free cash flow yield projected at 16%–30% depending on oil price scenarios.