Record Free Cash Flow and Shareholder Returns
Chord Energy reported adjusted free cash flow of approximately $141 million for Q2 2025, with 92% of this free cash flow returned to shareholders. After the base dividend of $1.30 per share, all incremental capital return was utilized for share repurchases, reducing the share count by approximately 10% as of early August.
Operational Excellence and Cost Efficiency
Oil volumes for the second quarter exceeded the top end of guidance due to strong execution, well performance, and less downtime. The company also reduced full-year capital by $50 million versus the original budget and improved free cash flow by 20% since February 2025.
Successful 4-Mile Lateral Program
Encouraging results from the 4-mile lateral program, with the Rystedt well outperforming its type curve by 30%. These wells are expected to recover 90% to 100% more EUR for only 40% to 60% more CapEx compared to 2-mile wells, translating to an $8 to $12 per barrel cost of supply reduction.
Leverage and Liquidity Position
Chord maintained a peer-leading leverage and liquidity position with net debt at approximately $810 million, a decline of almost $80 million from June 30, and a net leverage of approximately 0.3x on a trailing 12-month basis.
AI and Machine Learning Integration
Chord is using AI and machine learning to optimize various operations, including production profiles, gas lift efficiency, and reservoir analysis, supporting improved value delivery and efficiency.