Chord Energy Reports Strong Q4 and Full-Year 2025 Financial Results, Provides 2026 Outlook

Key Financial and Operating Highlights

• Oil Volumes: Q4 2025 oil volumes reached 153.0 MBopd, at the high end of guidance, demonstrating robust production performance.
• Capital Expenditures (CapEx): Q4 CapEx was \$305.2 million (excluding \$8.0 million of reimbursable non-op CapEx), which came in below the low end of guidance, reflecting disciplined capital management and operational efficiency.
• Profitability: The company posted net income of \$84.4 million for Q4, with Adjusted Net Income of \$72.7 million (\$1.28 per diluted share). Net cash provided by operating activities for the quarter was \$405.0 million, and Adjusted EBITDA stood at \$506.4 million.
• Shareholder Returns: Chord Energy returned approximately 50% of Adjusted Free Cash Flow to shareholders. In Q4 2025, the company repurchased 103,057 shares at a weighted average price of \$97.01 per share, totaling \$10.0 million, representing 100% of shareholder returns after the base dividend was paid.
• Financial Strength: The company maintained a strong liquidity position with \$189.5 million in cash and cash equivalents and access to a \$2.0 billion revolving credit facility (with a \$2.75 billion borrowing base). Revolver borrowings stood at \$1.5 billion at the end of 2025.
• Stock and Equity: Shares outstanding as of December 31, 2025, were 56.8 million (57.2 million on a fully diluted basis), down from 56.9 million (57.3 million fully diluted) at the end of Q3 2025. The company’s total stockholders’ equity was \$8.08 billion at year-end 2025.
• 2026 Outlook: The company provided guidance for Q1 and full-year 2026, including oil volume forecasts, CapEx projections, and operating expense targets (see tables in the full report for details).

Price-Sensitive and Shareholder-Relevant Information

• Capital Discipline & Cash Flow: CapEx coming in below guidance and the high conversion of Adjusted EBITDA to free cash flow are positive signals for investors, as they indicate efficient operations and potential for continued capital returns.
• Shareholder Returns: The company’s commitment to returning 50% of Adjusted Free Cash Flow, through buybacks and dividends, is likely to support the share price and may be price sensitive, especially given the scale of buybacks in Q4 and a continuing base dividend policy.
• Liquidity and Leverage: With \$2.16 billion in liquidity and moderate leverage (revolver borrowings of \$1.5 billion against a \$2.0 billion facility), the company is well-positioned to manage volatility and capitalize on opportunities, which may reassure investors.
• Operational Execution: Strong Q4 oil production volumes (at the high end of guidance) and disciplined cost control suggest ongoing operational excellence, which may positively influence investor sentiment.
• 2026 Guidance: The company’s forward guidance sets expectations for investors on production, capital spending, and cost structure, all of which are critical to future share price performance.
• Stock Repurchases and Treasury Stock: The reduction in shares outstanding and increase in treasury stock underscore the company’s active capital management and support for share value.
• Balance Sheet Strength: With over \$8 billion in equity and a substantial asset base, Chord Energy remains financially robust, which can be a key factor supporting share price stability.

Detailed Financial and Operating Data

Other Noteworthy Items

• Derivatives: The company reported a gain on derivatives in Q4, contributing positively to other income. However, full-year results included both gains and losses on derivatives and investment in equity securities.
• No Major Impairments: Q4 2025 impairments and exploration charges were modest (\$5.45 million).
• Low Taxes: Cash taxes as a percentage of Adjusted EBITDA remain low, enhancing free cash flow conversion.
• Balance Sheet: The company’s total assets at year-end were \$13.07 billion, underscoring its scale and resource base.

Conclusion

Chord Energy delivered a solid close to 2025, with high oil production, disciplined capital spending, strong free cash flow, and significant shareholder returns. The company’s balance sheet remains robust, and its 2026 guidance suggests continued operational strength and capital discipline. These results and outlook are likely to be price-sensitive and may positively influence the company’s share value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should review the full financial statements and disclosures before making any investment decisions. Market conditions and company-specific factors can change rapidly, and past performance is not indicative of future results.