Siebert Williams Shank & Co analyst Gabriele Sorbara reiterated a Buy rating on Chord Energy today and set a price target of $140.00.
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Gabriele Sorbara has given his Buy rating due to a combination of factors including Chord Energy’s strategic acquisition of Williston Basin assets from XTO Energy Inc. This acquisition is expected to enhance operational efficiency and increase inventory, which aligns with Chord Energy’s strong execution track record in the basin. The deal is anticipated to be accretive to cash flow and free cash flow per share, with a neutral impact on pro forma EV/EBITDA and FCF yield.
Additionally, despite a slight increase in net-debt/EBITDA, the ratio remains low compared to peers, supporting Chord Energy’s robust capital returns framework. The potential divestment of non-core Appalachia assets could further improve liquidity, offsetting the acquisition cost. Sorbara reaffirms the Buy rating based on valuation, underpinned by a stable free cash flow yield and superior capital returns, maintaining a price target of $140.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $113.00 price target.