Chord Energy — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported net income of $525.2 million and adjusted net income of $361.7 million ($6.44 per diluted share) for the quarter.
• Net cash provided by operating activities was $1,116.2 million, compared to $419.8 million in the second quarter of 2025.
• Adjusted EBITDA reached $923.5 million, up from $547.2 million in the second quarter of 2025.
• Adjusted Free Cash Flow was $414.1 million (excluding $0.7 million of reimbursable non-op CapEx), compared to $140.8 million in the second quarter of 2025.
• Total oil, NGL, and natural gas revenues were $1,494.3 million, compared to $950.3 million in the second quarter of 2025.
• Lease operating expenses (LOE) were $10.28 per Boe, compared to $10.02 per Boe in the second quarter of 2025.
• Cash taxes paid were $67.4 million, representing 7.3% of Adjusted EBITDA.
• Cash interest expense was $26.0 million.

Guidance and Future Outlook

• Updated 2026 full-year guidance to expect approximately $3.0 billion in Adjusted EBITDA and $1.3 billion in Adjusted Free Cash Flow, including the impact of derivatives ($75/Bbl WTI and $3.00/MMBtu Henry Hub for the second half of 2026).
• Maintained full-year 2026 oil volume midpoint guidance at 161 MBopd.
• Raised third-quarter 2026 oil volume midpoint guidance to 163.0 MBopd, reflecting production optimization and accelerated completions.
• Projected fourth-quarter 2026 oil volumes to decline from third-quarter levels due to fewer turns-in-line (TILs) and volume acceleration into the second quarter.
• Maintained full-year 2026 capital expenditure (CapEx) midpoint guidance at $1.4 billion.
• Set third-quarter 2026 CapEx guidance at $375 million and fourth-quarter guidance to fall from third-quarter levels.
• Increased full-year 2026 LOE midpoint guidance to $10.30/Boe, citing higher workover costs and non-operated LOE.
• Plans to turn in line 140–160 gross operated wells in 2026 with an average working interest of approximately 75%.
• Management expects to increase shareholder returns to 75% of free cash flow in the third quarter as leverage fell below half a turn at quarter-end.

Business Segments and Product Lines

• Oil volumes averaged 165.4 MBopd in the second quarter, hitting the high-end of guidance.
• NGL volumes averaged 53.0 MBblpd and natural gas volumes averaged 408.0 MMcfpd.
• Successfully executed and turned in line four additional 4-mile pads; total 4-mile wells executed reached 26 as of early third quarter.
• Drilled the Williston Basin's deepest measured depth well at 33,810 feet.
• Executed the Basin's first trimulfrac completion to enhance cost efficiencies on 4-mile developments.
• Broadened the scope of the chemical workover program to test multiple new opportunities for base production enhancement.
• Utilized AI to optimize artificial lift and reduced cycle times to return non-producing wells.
• Acquisitions and leasehold costs totaled $3.7 million in the second quarter.

Market and Competitive Landscape

• Oil, natural gas, and NGL realizations were favorable versus midpoint guidance.
• Oil premium to WTI averaged $1.27 per barrel in the second quarter.
• NGL realization averaged 10% of WTI, and natural gas realization averaged 32% of Henry Hub.
• Production taxes averaged 8.4% of oil, NGL, and natural gas sales.
• The company maintains a peer-leading balance sheet position to navigate the volatile macro environment.

Risks and Challenges

• Forward-looking statements are subject to risks including changes in commodity prices, OPEC+ production levels, trade policies, tariffs, and geopolitical conflicts (e.g., Russia-Ukraine, Middle East).
• Risks include logistical challenges, supply chain disruptions, uncertainties in estimating proved reserves, and operational factors affecting well commencement or maintenance.
• Potential impacts from environmental regulations, litigation, and capital market conditions are noted.

Management Commentary and Tone

• Danny Brown, President and CEO, stated the company delivered another quarter of strong operational and financial performance reflecting continued strategy execution.
• Management highlighted that adjusted free cash flow exceeded expectations due to high-end oil production and capital spending below midpoint guidance.
• The tone emphasized disciplined capital allocation, operational efficiency, and the ability to generate strong, sustainable free cash flow.
• Management thanked the team for their commitment to safe, efficient operations and long-term shareholder value creation.

Other Key Points

• Declared a base dividend of $1.30 per share, payable on September 4, 2026, to shareholders of record as of August 20, 2026.
• Repurchased 1,104,346 shares of common stock at a weighted average price of $133.47 per share, totaling $147.4 million in the second quarter.
• Returned 54% of Adjusted Free Cash Flow to shareholders in the second quarter through dividends and share repurchases.
• Shares issued and outstanding were 55.2 million as of June 30, 2026, down from 56.3 million as of March 31, 2026.
• Total debt was $1.5 billion (all senior notes) with no revolver borrowings as of June 30, 2026.
• Cash and cash equivalents were $611.6 million, resulting in total liquidity of $2.58 billion.
• The company has a $2.75 billion borrowing base on its revolving credit facility with $2.0 billion of elected commitments.
• 66 gross (47 net) operated wells were turned in line during the second quarter.