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Chord Energy Reports Fourth Quarter and Full-Year 2025 Results

Chord Energy Corporation (NASDAQ: CHRD) has recently disclosed its financial and operational achievements for both the fourth quarter and the entirety of 2025. With a remarkable year behind them, Chord has issued an encouraging outlook for 2026, which includes declaring a base dividend.

Financial Highlights of 2025

During the fourth quarter of 2025, Chord Energy showcased a solid performance, with cash flow from operations and adjusted free cash flow surpassing expectations. The company reported oil production volumes approaching the upper limits of their guidance, contributing to a strong financial outcome.

Throughout the fiscal year of 2025, Chord achieved a capital expenditure level that was significantly below expectations, alongside an oil production rate that indicated a year-over-year increase of approximately 1%. Notably, continuous improvement initiatives led to an increment in free cash flow, generating around $160 million in additional run-rate cash flow.

The company's commitment to enhancing shareholder values was demonstrated through the payment of substantial dividends and stock buybacks. Chord declared a base dividend of $5.20 per share while repurchasing approximately 3.5 million shares, reflecting its robust financial health and a desire to return capital to shareholders.

Operational Achievements

In 2025, Chord progressed significantly in its operational capabilities, particularly with its lateral well program. The successful turn-in-line of seven four-mile wells was notable, alongside an effort to maintain production costs well below budget. The company anticipates that about 40% of wells turned in line in 2026 will be four-mile laterals, driving further efficiency in their operations.

The reported Lease Operating Expense (LOE) for FY25 was lower than expected at $9.73 per barrel of oil equivalent, emphasizing Chord's effectiveness in controlling costs despite facing challenges in related gas volumes.

Additionally, Chord completed an acquisition of core assets in the Williston Basin from XTO Energy, further strengthening its market position in the region.

Looking Ahead: 2026 Plans and Expectations

Looking forward to 2026, Chord has laid out clear objectives to sustain stable production levels while maximizing free cash flow. The projected oil volumes are set at a midpoint of 159 MBopd for the year, with expectations of generating around $2.3 billion in Adjusted EBITDA and $700 million in Adjusted Free Cash Flow at forecasted commodity prices.

The company’s operational plans for 2026 include approximately $1.4 billion in capital expenditures primarily directed toward drilling and completion activities. Chord is also focusing on midstream projects aimed at improving water disposal, further enhancing their operational efficiency.

With a solid foundation built over the past year and a strategic outlook for 2026, Chord Energy is poised for continued growth, capable of navigating the complexities of the oil market and delivering value to its shareholders.

As CEO Danny Brown remarked, “Our successful execution over 2025 sets us firmly on a path for an equally strong 2026, demonstrating our capability to generate significant free cash flow while maintaining a focus on cost discipline.”

Conclusion

In summary, Chord Energy's operational execution and strong financial results from 2025 underline its capability to drive future growth and consistently return value to its shareholders. With a promising 2026 ahead, the company is strategically positioned to capitalize on opportunities within the energy sector.