Key Takeaways and Updates:
Operational Strength: Cash Flow from Operations and Adjusted Free Cash Flow exceeded expectations in 1Q26, supported by oil volumes above the high-end of guidance and capital in line with expectations;
Improving Efficiency: Strong drilling and completions ("D&C") and production operations led Chord to increase FY26 oil volumes by 2 MBopd to 161 MBopd while keeping capital unchanged;
4-Mile Lateral Update: Successfully executed and turned in line ("TIL") the Toonie 5-well pad, representing Chord's first full 4-mile DSU development. Execution and performance are in line with expectations;
Shareholder Returns: Returned $145MM to shareholders through a base dividend of $1.30 per share and $71MM of share repurchases.
1Q26 Operational and Financial Highlights:
Strong Volumes: Oil volumes of 158.0 MBopd exceeded the high-end of guidance and were 2.6% above the midpoint of guidance;
Capital Discipline: CapEx of $342MM (excluding $3.0MM of reimbursable non-op CapEx) was in-line with the midpoint of guidance;
Cost Control: LOE of $9.87/Boe was in-line with the midpoint of guidance;
Realizations: Gas realizations were favorable, reflecting seasonally strong regional benchmark prices;
Profitability: Net income was $108.6MM and Adjusted Net Income(1) was $258.9MM ($4.56/diluted share); and
Cash Generation: Net cash provided by operating activities was $507.5MM, Adjusted EBITDA(1) was $713.0MM and Adjusted Free Cash Flow(1) was $324.0MM (excluding $3.0MM of reimbursable non-op CapEx).
(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under United States generally accepted accounting principles ("GAAP").
"Chord delivered strong first quarter execution, demonstrated efficient operations, and generated free cash flow above expectations," said Danny Brown, Chord Energy's President and Chief Executive Officer. "Oil volumes exceeded the high-end of guidance with capital and operating expenses in line. This strong operational performance supported robust free cash flow, enabling high return of capital to shareholders. The Chord team also achieved a key operational milestone, with the successful delivery of our first four-mile pad during the quarter. Additionally, D&C cycle times continue to show positive trends. Separately, Chord has identified and is implementing multiple base production enhancement initiatives that are expected to grow volumes with a minimal increase to costs, further improving our free cash flow outlook. Chord's high-quality, oil-weighted asset base combined with our relentless focus on continuous improvement position us well to maximize free cash flow and deliver long-term value for shareholders. I want to thank the entire Chord team for their continued focus on safe, efficient execution and their commitment to making our company better every day."
1Q26 Operational and Financial Update:
The following table presents select 1Q26 operational and financial data compared to guidance released on February 25, 2026:
Metric
1Q26 Actual
1Q26 Guidance
Oil Volumes (MBopd)
158.0
152.5, 155.5
NGL Volumes (MBblpd)
49.0
48.0, 49.0
Natural Gas Volumes (MMcfpd)
411.4
401.0, 409.0
Total Volumes (MBoepd)
275.6
267.3, 272.7
CapEx ($MM)(1)
$344.9
$325, $355
Oil Discount to WTI ($/Bbl)
$(2.35)
$(1.60), $(2.60)
NGL Realization (% of WTI)
12 %
5%, 15%
Natural Gas Realization (% of Henry Hub)
64 %
50%, 60%
LOE ($/Boe)
$9.87
$9.40, $10.40
Cash GPT ($/Boe)(2)
$2.79
$2.75, $3.25
Cash G&A ($MM)(2)
$26.9
$23, $28
Production Taxes (% of Oil, NGL and Natural Gas Sales)
7.5 %
7.5%, 7.9%
Cash Interest ($MM)(2)
$26.0
$25, $27
Cash Tax (% of Adjusted EBITDA)
2.9 %
0%, 3%
____________________
(1)
1Q26 includes $3.0MM of reimbursable non-op CapEx.
(2)
Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP.
Chord had 37 gross (30 net) operated TILs in 1Q26.
Return of Capital:
Chord declared a base dividend of $1.30 per share of common stock. The dividend will be payable on June 5, 2026 to shareholders of record as of May 20, 2026.
The Company repurchased 559,064 shares of common stock at a weighted average price of $126.53 per share totaling $70.7MM in 1Q26. Shares issued and outstanding were 56.3MM (57.1MM on a fully-diluted basis) as of March 31, 2026, compared to 56.8MM (57.2MM on a fully-diluted basis) as of December 31, 2025. Details regarding the Return of Capital calculation can be found in the Company's most recent investor presentation located on its website at https://ir.chordenergy.com/presentations.
Operations Update:
4-Mile Laterals: At the end of the first quarter, Chord brought online the five-well Toonie pad, representing the Company's first full 4-mile DSU development. Capital costs were in line with expectations, supported by multi-well efficiencies, including simulfrac operations. Early performance is in line with expectations. Chord is scaling its 4-mile development in 2026, with approximately 40% of TILs and 60% of spuds expected to be 4-mile laterals. The broader program is expected to benefit from continued multi-well execution efficiencies.
Execution: Chord continues to demonstrate strong operational execution and improving cycle times across its Williston Basin program. The Company remains the most active operator in the Bakken and the leader in the development of extended-reach laterals, including 4-mile wells. Drilling performance continues to improve, with the majority of 4-mile laterals successfully drilled in a single run, minimizing cycle times and driving cost efficiencies. Chord is also realizing cost savings from operating both its frac fleets on dual fuel, significantly reducing exposure to diesel price volatility. Completions execution remains strong, with consistent cleanout performance to total depth. Additionally, the Company continues to reduce facilities-related capital through infrastructure optimization, with the majority of the development program benefiting from equipment re-use and scalable facility design.
Production/LOE: Chord delivered strong production above expectations in 1Q26 through its disciplined base optimization efforts, focused on low-cost, high-return initiatives. Key areas of focus include the application of AI to optimize artificial lift, expanding workover activity, various chemical treatment programs, logistics optimization, reducing cycle times to return non-producing wells, as well as other initiatives.
2026 Outlook Update:
Chord is updating its 2026 guidance to reflect 1Q26 performance, production optimization initiatives, faster cycle times, and its latest forecasts. Chord is driving base production higher through various initiatives discussed above, resulting in a higher volume outlook with minimal impact on costs. In 2026, Chord expects to generate approximately $3.1B of Adjusted EBITDA and $1.4B of Adjusted Free Cash Flow including the impact of derivatives ($80/Bbl WTI and $3.25/MMBtu Henry Hub for 2Q26-4Q26).
Key Update Summary:
Volumes: FY26 oil volumes increased 2 MBopd at midpoint to 161 MBopd;
2Q26 midpoint oil volume guidance of 164.0 MBopd reflects positive impacts from production optimization initiatives and faster D&C cycle times. 3Q26 volumes are expected to be similar levels to 2Q26 before declining in 4Q26;
Capital: FY26 CapEx remains unchanged from the February 2026 guidance of $1.4B at midpoint;
2Q26 CapEx guidance of $425MM at midpoint reflects faster D&C cycle times. CapEx is expected to decline in 3Q26 and fall further in 4Q26;
Realizations: FY26 oil realization outlook improved to reflect current market premiums to WTI. FY26 NGL realizations adjusted to reflect higher absolute pricing, but a lower percentage of WTI. FY26 natural gas realizations are essentially unchanged from February 2026 guidance;
LOE: Midpoint FY26 LOE increased $0.15/BOE to $9.95/BOE reflecting various production enhancement initiatives; and
Activity: Chord continues to plan to TIL 135, 165 gross operated wells (~40% 3-mile laterals and ~40% 4-mile laterals) with an average working interest of ~75%.
The following table presents select operational and financial guidance for the periods presented:
Metric
2Q26 Guidance
FY26 Guidance
Oil Volumes (MBopd)
162.5 - 165.5
160.0 - 162.0
NGL Volumes (MBblpd)
50.5 - 51.5
49.5 - 50.5
Natural Gas Volumes (MMcfpd)
400.0 - 408.0
401.0 - 407.0
Total Volumes (MBoepd)
279.7 - 285.0
276.4 - 280.3
CapEx ($MM)
$410 - $440
$1,355 - $1,445
Oil Premium/(Discount) to WTI ($/Bbl)
$0.50 - $1.50
$(0.50) - $0.50
NGL Realization (% of WTI)
4% - 10%
4% - 12%
Natural Gas Realization (% of Henry Hub)
25% - 35%
36% - 44%
LOE ($/Boe)
$9.70 - $10.70
$9.55 - $10.35
Cash GPT ($/Boe)(1)
$2.70 - $3.20
$2.70 - $3.10
Cash G&A ($MM)(1)
$24 - $26
$98 - $103
Production Taxes (% of Oil, NGL and Natural Gas Sales)
7.9% - 8.3%
7.8% - 8.1%
Cash Interest ($MM)(1)
$25 - $27
$100 - $108
Cash Tax (% of Adjusted EBITDA)(2)
2% - 8%
4% - 9%
___________________
(1)
Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the most directly comparable financial measures under GAAP.
(2)
2Q26-4Q26 reflects $70/Bbl, $100/Bbl WTI.
Select Operational and Financial Data:
The following table presents select operational and financial data for the periods presented:
1Q26
4Q25
1Q25
Production data:
Crude oil (MBopd)
158.0
153.0
153.7
NGL (MBblpd)
49.0
52.4
48.1
Natural gas (MMcfpd)(1)
411.4
404.2
414.5
Total production (MBoepd)
275.6
272.8
270.9
Percent crude oil
57.3 %
56.1 %
56.7 %
Average sales prices:
Crude oil, without realized derivatives ($/Bbl)
$ 70.05
$ 56.90
$ 69.11
Differential to NYMEX WTI ($/Bbl)
(2.35)
(2.24)
(2.30)
Crude oil, with realized derivatives ($/Bbl)
69.57
58.62
69.08
Crude oil realized derivatives gain (loss) ($MM)
6.9
(24.3)
0.4
NGL, without realized derivatives ($/Bbl)
8.66
4.88
14.18
NGL, with realized derivatives ($/Bbl)
8.66
4.88
14.18
Natural gas, without realized derivatives ($/Mcf)(2)
3.14
1.40
2.30
Natural gas, with realized derivatives ($/Mcf)
2.82
1.56
2.31
Natural gas realized derivatives gain (loss) ($MM)
11.6
(5.9)
(0.1)
Selected financial data ($MM):
Revenues:
Crude oil revenues
$ 996.3
$ 801.0
$ 956.1
NGL revenues
38.2
23.5
61.3
Natural gas revenues
116.1
52.1
85.9
Total oil, NGL and natural gas revenues
$ 1,150.6
$ 876.6
$ 1,103.3
Cash flows:
Net cash provided by operating activities:
$ 507.5
$ 405.0
$ 656.9
Non-GAAP financial measures(3):
Adjusted EBITDA
$ 713.0
$ 506.4
$ 695.5
Adjusted FCF(4)
321.2
167.0
290.5
Adjusted Net Income Attributable to Common Stockholders
258.9
72.7
240.9
Select operating expenses:
LOE
$ 244.9
$ 244.0
$ 233.1
Gathering, processing and transportation expenses ("GPT")
67.0
70.5
73.3
Production taxes
86.7
68.8
74.6
Depreciation, depletion and amortization
384.2
368.4
349.8
Total select operating expenses
$ 782.8
$ 751.7
$ 730.8
Select operating expenses ($/Boe):
LOE
$ 9.87
$ 9.72
$ 9.56
GPT
2.70
2.81
3.01
Production taxes
3.50
2.74
