TD Cowen analyst David Deckelbaum maintained a Hold rating on Chord Energy yesterday and set a price target of $105.00.
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David Deckelbaum has given his Hold rating due to a combination of factors influencing Chord Energy’s performance. The company reported a slight improvement in oil production and reduced capital expenditure, which were positive signs. However, operating expenses were higher than expected, even though overall operational costs were below projections, leading to a modest EBITDAX beat.
Despite the raised production guidance and cost efficiencies, the pricing pressure on natural gas liquids and a conservative outlook for future oil volumes contributed to a cautious stance. Additionally, while Chord Energy has been proactive in managing its hedge book and capital returns, including dividends and share buybacks, these actions were not enough to warrant a more bullish rating. The company’s strategic moves, such as bringing back a second frac crew, suggest a focus on long-term growth, but the immediate outlook remains balanced, justifying the Hold recommendation.
Deckelbaum covers the Energy sector, focusing on stocks such as California Resources Corp, Sable Offshore, and Coterra Energy. According to TipRanks, Deckelbaum has an average return of 4.6% and a 41.06% success rate on recommended stocks.