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Sep 30, 2024
Chord Energy Q3 2024 Earnings Report
Chord Energy reported strong financial and operating results for Q3 2024, including $146MM in share repurchases, and issued a 2025-2027 outlook.
Key Takeaways
Chord Energy Corporation reported strong third quarter 2024 financial and operating results. Oil volumes were near the high end of guidance, and capital expenditures were below the low end of guidance. The company repurchased $146MM of shares and issued a three-year outlook (2025-2027) to hold oil volumes flat with $1.4B annual capital spending.
Cash Flow from Operations and Adjusted Free Cash Flow exceeded expectations in 3Q24, supported by oil volumes near the high-end of guidance and capital below the low-end of guidance.
Lowering FY24 capital guidance, while raising FY24 oil volumes guidance.
Share repurchases increased to $146MM in 3Q24 or over 1.5% of shares outstanding.
Third-mile productivity factor increased to 100%, reflecting full contribution from last mile.
Chord Energy
Chord Energy
Chord Energy Revenue by Segment
Revenue by Segment
Crude Oil Revenue
CapyFin.comNGL Revenue
CapyFin.comNatural Gas Revenue
CapyFin.com Forward Guidance
Chord expects to spend $1.4B of capital per year for each of the next three years (2025 – 2027) to maintain flat pro forma FY24 oil volumes of 152 MBopd – 153 MBopd.
Positive Outlook
- Chord's three-year outlook reflects the improving capital efficiency of its program.
- Supported by high-quality inventory.
- Enhanced operational efficiencies.
- Over $200MM of synergies from the combination with Enerplus.
- Expects to generate approximately $2.7B of Adjusted EBITDA and $1.1B of Adjusted Free Cash Flow on a pro forma basis in FY24, with a reinvestment rate less than 60%.
Challenges Ahead
- Full year oil volumes updated to account for strong 3Q24 performance and the latest 4Q24 outlook, which includes the impact of October wildfires and recent A&D activity.
- FY24 pro forma capital guidance reduced $10MM to $1.48B, reflecting program efficiencies and lower spending. 4Q24 capital reflects program timing and some deferred spending from 3Q24.
- Full year natural gas and NGL volumes adjusted to reflect latest estimates on volume mix and activity deferrals in the Marcellus shale.
- Lowering 4Q24 oil differentials to reflect continued pricing improvement in the Williston Basin. Adjusting 4Q24 natural gas and NGL realizations to reflect current market conditions.
- Lowering FY24 LOE to reflect better than expected 3Q24 performance and improved 4Q24 outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income