Q1 2024 Chord Energy Corp Earnings Call Transcript
Key Points
- Chord Energy Corp (CHRD) reported strong operational performance with oil volumes exceeding expectations due to improved well performance and accelerated activity.
- The company generated $204 million in adjusted free cash flow during the quarter, surpassing expectations and allowing for a substantial return of 75% of this cash flow to shareholders.
- Chord Energy Corp (CHRD) announced a strategic combination with Enerplus, expected to close on May 31, 2024, which is anticipated to bring significant synergies and enhance asset quality.
- Operational improvements have led to a faster development program, maintaining full-year oil volume and capital guidance despite running ahead of schedule in the second quarter.
- Chord Energy Corp (CHRD) has successfully integrated multiple transactions in the past, applying these learnings to potentially exceed synergy targets with the Enerplus integration.
- Despite strong performance, Chord Energy Corp (CHRD) experienced significant downtime due to unusually cold weather in North Dakota, impacting production.
- The company's share repurchases were limited during the quarter due to possession of material non-public information related to the pending combination with Enerplus.
- Natural gas realizations fell below the company's forecast projections, impacted by lower market prices and fixed marketing fees.
- Chord Energy Corp (CHRD) anticipates higher capital expenditure in the second quarter as the development program proceeds faster than originally planned.
- While synergies from the Enerplus combination are expected, the full integration and realization of these benefits will require careful management and could present execution risks.
Good morning, ladies and gentlemen, and welcome to the Chord Energy first-quarter 2024 earnings call. (Operator Instructions) This call is being recorded on Wednesday, May 8, 2024.
And I would now like to turn the conference over to Mr. Richard Robuck, Chief Financial Officer. Thank you. Please go ahead.
Thanks, Ina. Good morning, everyone. This is Richard Robuck. Today, we're reporting on our first-quarter 2024 financial and operating results. We're delighted to have you on our call.
I'm joined today by Danny Brown, our CEO; Michael Lou, our Chief Strategy Officer and Chief Commercial Officer; Darrin Henke, our COO; and other members of the team.
Please be advised that our remarks, including the answers to your questions, include statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different
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