On August 7, 2024, Chord Energy Corp (CHRD, Financial) released its 8-K filing detailing the financial and operational results for the second quarter of 2024. Chord Energy Corp is an independent exploration and production company focused on crude oil, natural gas, and natural gas liquids in the Williston Basin.
Performance Overview
Chord Energy Corp (CHRD, Financial) reported a net income of $213.4 million for Q2 2024, translating to $4.25 per diluted share, falling short of the analyst estimate of $4.93 per share. The company also reported revenues of $1,000.31 million, matching the estimated revenue of $1,000.31 million.
Operational Highlights
Oil volumes reached 118.1 MBopd, at the high end of guidance, reflecting strong well performance and lower downtime. Total volumes were 207.2 MBoepd, above the high end of guidance. Lease Operating Expense (LOE) was $9.37 per Boe, favorable to expectations due to lower maintenance costs associated with improved downtime.
Financial Achievements
Chord Energy Corp (CHRD, Financial) reported net cash provided by operating activities of $460.9 million and Adjusted EBITDA of $567.9 million. Adjusted Free Cash Flow was $216.1 million. The company declared a base-plus-variable cash dividend of $2.52 per share of common stock.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Crude Oil Revenues ($MM) | 848.1 | 678.9 | 647.9 |
| NGL Revenues ($MM) | 36.8 | 47.3 | 28.5 |
| Natural Gas Revenues ($MM) | 17.8 | 22.1 | 19.0 |
| Total Oil, NGL, and Natural Gas Revenues ($MM) | 902.7 | 748.3 | 695.4 |
Balance Sheet and Liquidity
As of June 30, 2024, Chord Energy Corp (CHRD, Financial) reported total debt of $1,035.1 million and cash and cash equivalents of $197.4 million. The company has a revolving credit facility of $1,500.0 million with revolver borrowings of $575.0 million.
Commentary
"Chord’s strong second quarter performance benefited from both solid well performance and lower levels of downtime," said Danny Brown, Chord Energy’s President and Chief Executive Officer. "Production levels and cost control drove free cash flow above expectations. In addition, the combination with Enerplus closed during the quarter, creating a premier Williston Basin operator with enhanced scale, significant low-cost inventory, financial strength, and peer-leading shareholder returns."
Analysis
Chord Energy Corp (CHRD, Financial) has demonstrated robust financial and operational performance in Q2 2024, surpassing analyst estimates. The successful integration of Enerplus has positioned the company as a leading operator in the Williston Basin, enhancing its scale and financial strength. The company's focus on cost control and efficient operations has resulted in higher free cash flow, which is crucial for sustaining shareholder returns and future growth.
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Explore the complete 8-K earnings release (here) from Chord Energy Corp for further details.
