Chord Energy Reports Third-Quarter Production Above Guidance and Announces $550 Million Asset Sale

Chord Energy Corporation (NASDAQ:CHRD) reported preliminary third-quarter 2026 production volumes above the upper end of its previous guidance and announced an agreement to divest its non-operated Marcellus assets for total gross consideration of $550 million.

The US oil and gas producer reported total production of between 290,500 and 290,900 barrels of oil equivalent per day (boepd), compared with its guidance range of 277,700 to 284,000 boepd.

Oil production also exceeded expectations, while capital expenditure remained within the company’s previously announced range.

Chord additionally disclosed $205 million in share repurchases during the quarter and reported cash and cash equivalents of $804.7 million as of 30 September 2026.

The company emphasised that its third-quarter financial statements have not yet been finalised and that actual results may differ materially from the preliminary figures.

Third-Quarter Production Exceeds Guidance

Chord Energy reported preliminary total production of 290,500 to 290,900 boepd during the third quarter.

The reported range exceeded the upper end of the company’s previous guidance of 284,000 boepd by approximately 2.3% to 2.4%.

Oil production reached between 165,400 and 165,600 barrels per day, compared with guidance of 161,500 to 164,500 barrels per day.

The figures indicate that both total production and oil output were above the company’s earlier expectations.

Chord attributed the difference to production from new and existing wells and lower-than-anticipated operational downtime.

Michael Lou, President and Chief Executive Officer of Chord Energy, commented on the operational results.

“Strong performance across new and existing wells and better than expected downtime performance drove volumes above the top-end of guidance,” Lou said.

The company also reported that natural gas and natural gas liquids production exceeded the upper end of their respective guidance ranges, although separate volume figures for those products were not included in the supplied announcement.

Capital Expenditure Remains Within Forecast Range

Chord reported preliminary third-quarter capital expenditure of between $379 million and $385 million.

This compared with its previous guidance range of $360 million to $390 million.

The reported spending was therefore within the company’s expected range despite production exceeding guidance.

Capital expenditure in the oil and gas sector typically includes spending on drilling, well completions, production infrastructure and other development activities.

The company did not provide a detailed breakdown of third-quarter capital spending by project or operating area in the preliminary announcement.

The final expenditure figures will be confirmed when Chord completes its financial reporting for the period.

Chord Announces $550 Million Marcellus Asset Divestiture

Chord Energy announced the divestiture of its non-operated Marcellus assets for total gross consideration of $550 million.

The assets represent interests in oil and gas operations where Chord holds an ownership position but does not act as the operator.

The company reported receiving a $55 million deposit associated with the transaction during the third quarter.

The announced consideration reflects the gross value of the divestiture and should not be interpreted as the final net cash proceeds available to the company.

The information provided did not specify the expected closing date, transaction-related adjustments or the intended allocation of the remaining proceeds.

The disposal represents a change to Chord’s asset portfolio, although the company did not provide details about the production or earnings contribution of the assets being sold.

Share Repurchases Total $205 Million During Third Quarter

Chord continued repurchasing its common shares during the reporting period.

The company bought back $205 million of shares in the third quarter at an average purchase price of $135.74 per share.

Based on the reported expenditure and average price, the purchases represented approximately 1.51 million shares.

Chord also disclosed additional repurchases during the fourth quarter to date.

These amounted to $44.3 million at an average price of $142.32 per share, equivalent to approximately 311,000 shares.

Combined, the disclosed third-quarter and subsequent fourth-quarter repurchases totalled $249.3 million.

The company did not provide updated information about the remaining capacity under its share repurchase authorisation in the supplied announcement.

Cash Balance Reaches $804.7 Million at Quarter-End

As of 30 September 2026, Chord reported cash and cash equivalents of $804.7 million.

Total debt stood at $1.48 billion.

Based on these preliminary figures, net debt, calculated as total debt less cash and cash equivalents, was approximately $677.5 million.

The company also reported cash tax payments of $32.0 million during the third quarter.

Chord’s reported cash position reflects the balance at the end of September and includes the $55 million deposit received in connection with the Marcellus asset sale.

The preliminary announcement did not include a complete cash flow statement or detailed information about other changes in working capital and financing activities during the period.

Commodity Prices and Hedging Results

Chord reported that NYMEX West Texas Intermediate (WTI) crude oil averaged $85.69 per barrel during the third quarter.

NYMEX Henry Hub natural gas prices averaged $2.96 per million British thermal units (MMBtu).

These benchmark prices provide context for the commodity market conditions during the reporting period, although the prices realised by Chord may differ because of transportation costs, regional pricing adjustments and other factors.

The company recorded a $48.7 million loss on realised commodity hedges during the quarter.

Commodity hedging arrangements are used by oil and gas producers to manage exposure to fluctuations in market prices.

A realised hedging loss can occur when the terms of a hedging contract result in payments or settlements that are unfavourable relative to prevailing market prices.

Chord also reported receiving between $2.3 million and $2.5 million in distributions from equity investments.

The company did not provide additional details about the underlying investments in the preliminary update.

Preliminary Results Remain Subject to Finalisation

Chord stated that its consolidated financial statements for the quarter ended 30 September 2026 have not yet been finalised.

The reported production, capital expenditure and other financial figures are preliminary and may be revised before the publication of the company’s completed quarterly results.

The company cautioned that actual results could differ materially from the estimates included in its announcement.

The update did not provide final third-quarter revenue, net income, adjusted earnings or operating cash flow figures.

These measures will be relevant to assessing the financial effects of higher production, commodity prices, hedging settlements and capital spending during the quarter.

Investors Await Final Third-Quarter Results

Chord Energy’s preliminary third-quarter update showed production above guidance, capital expenditure within expectations and continued share repurchases.

Total production reached approximately 290,500 to 290,900 boepd, while oil output was between 165,400 and 165,600 barrels per day.

The company also announced a $550 million gross divestiture of non-operated Marcellus assets and reported approximately $804.7 million in cash against $1.48 billion in total debt at quarter-end.

Investors will be monitoring the final financial results, the completion of the asset sale and the company’s subsequent capital allocation decisions.

The final quarterly report will provide additional information about earnings, cash generation and the financial impact of the operational performance disclosed in the preliminary announcement.

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