NASDAQ$CHRD

Chord Energy Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Chord's second quarter performance benefited from solid well performance and lower downtime, with the Enerplus combination closing during the quarter, creating a premier Williston Basin operator.

Chord Energy reported strong second quarter 2024 results, driven by solid well performance and lower downtime, which led to free cash flow exceeding expectations. The combination with Enerplus closed during the quarter, establishing Chord as a premier Williston Basin operator. The company is on pace to achieve over $200MM in annual synergies, surpassing original expectations.

  • Oil volumes of 118.1 MBopd were at the high-end of guidance.
  • Total volumes of 207.2 MBoepd were above the high-end of guidance.
  • E&P and other CapEx was $314.3MM, below the low-end of guidance.
  • Net cash provided by operating activities was $460.9MM and net income was $213.4MM.

Headline financials

Total Revenue

$1.26B

Previous: $912M+38.2%
EPS

$4.25

Previous: $3.65+16.4%
Crude oil production (Bopd)

118.1K

Previous: 96.4+122410.4%
NGL production (Bblpd)

40.5K

Previous: 36+112400.0%
Natural gas production (cfpd)

291.5M

Previous: 219.3+132922836.6%
Total production (Boe/d)

207.2K

Previous: 169+122503.6%
Capital Expenditures

-$539M

Previous: -$408M-32.1%
Free Cash Flow

-$325M

Previous: -$192M-69.7%
Net Income

$213M

Previous: $216M-1.3%
Operating Income

$289M

Previous: $251M+15.1%
Cash & Equivalents

$197M

Previous: $215M-8.1%
Total Assets

$13.1B

Previous: $6.56B+100.4%
Stock-Based Comp

$5.36M

Previous: $15.3M-65.0%

Revenue & EPS history

Chord Energy · Revenue · Quarterly

$1.26B

Q2 2024+38.2%vs Q2 2023
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Revenue by segment

Chord Energy · $841M total across 3 segments · Q3 2023

  • Crude oil revenues
    $776M-5.9%
  • NGL revenues
    $41M-61.4%
  • Natural gas revenues
    $23.6M-81.2%

Forward guidance

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 $2.9B of Adjusted EBITDA and $1.2B of Adjusted Free Cash Flow on a pro forma basis in FY24, with a reinvestment rate of approximately 55%.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Cash taxes in 2H24 are expected to be 6% – 12% of Adjusted EBITDA at WTI prices of $70/Bbl – $90/Bbl, below the range of 8% – 14% referenced in May.
  • Full-year cash taxes are trending slightly below original expectations.
  • Uncertainties in estimating proved reserves and forecasting production results.
  • Changes in crude oil, NGL and natural gas prices

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+408.4%

Avg return

Earnings day

+674.7%

Avg return

5 days after

+805.2%

Avg return

30 days after

51%

32 / 63 earnings

Positive

+25733.3%

Q4 2020

Best reaction

-48.8%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%+0.8%-4.3%
Q4 2025+1.5%+8.3%+40.2%
Q3 2025-4.4%-1.9%+9.8%
Q1 2025-0.5%+7.7%+4.7%
Q4 2024+4.4%-2.3%+2.9%
Q3 2024+4.9%+4.0%-7.5%
Q2 2024-1.3%+0.2%-12.2%
Q1 2024+1.1%+0.7%-5.8%
Q4 2023-0.5%-2.4%+3.2%
Q3 2023+5.1%+1.4%-2.0%
Q2 2023-0.8%+2.1%+5.3%
Q1 2023-1.9%+3.6%+9.6%
Q4 2022+5.1%+4.4%-3.3%
Q3 2022-0.4%+3.8%-4.5%
Q2 2022-5.7%-1.1%+10.7%
Q1 2022+1.1%-3.1%-10.5%
Q4 2021+5.3%+8.2%+26.3%
Q3 2021+0.9%+2.3%-4.7%
Q2 2021+3.1%+4.1%+3.3%
Q1 2021-2.8%+2.2%+10.1%
Q4 2020+25733.3%+26983.3%+32116.7%
Q3 2020-48.8%-56.1%-73.2%
Q2 2020-3.8%-6.3%-15.0%
Q1 2020-3.3%+26.7%+133.3%
Q4 2019-0.6%-12.8%-81.9%
Q3 2019+3.1%+5.1%-9.6%
Q2 2019+4.2%+1.4%+18.0%
Q1 2019+2.5%+6.0%+1.0%
Q4 2018+1.3%-3.0%+8.1%
Q4 2015+1.3%-3.0%+8.1%
Q4 2017+1.3%-3.0%+8.1%
Q4 2016+1.3%-8.5%-1.3%
Q3 2018+0.5%-8.3%-32.8%
Q2 2018+0.2%+3.5%-1.9%
Q1 2018+1.1%+2.4%+14.4%
Q3 2017+0.5%-6.4%-6.2%
Q2 2017+9.4%+9.1%+0.4%
Q1 2017+1.9%+0.6%-14.0%
Q3 2016+13.0%+8.1%+43.2%
Q2 2016-5.3%+4.9%+21.8%
Q1 2016-2.5%
Q3 2015+4.5%
Q2 2015+16.9%
Q1 2015+3.7%
Q4 2014-8.9%
Q3 2014-2.9%
Q2 2014-9.8%
Q1 2014-0.1%
Q4 2013+3.4%
Q3 2013-2.5%
Q2 2013-3.6%
Q1 2013-1.4%
Q4 2012-2.4%
Q3 2012-0.3%
Q2 2012+7.6%
Q1 2012-7.1%
Q4 2011-6.9%
Q3 2011-2.2%
Q2 2011+16.6%
Q1 2011-1.1%
Q4 2010-3.0%
Q3 2010+6.8%
Q2 2010-0.2%
Q1 2010

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