Chord Energy 2025 Q2 Earnings Misses Targets with Net Income Decline of 282.7%

Chord Energy reported its fiscal 2025 Q2 earnings on Aug 7th, 2025. The results missed expectations, with the company swinging to a loss of $6.71 per share, a significant drop from a profit of $4.36 per share in the same period last year. The net loss of $389.90 million reflects a 282.7% deterioration compared to the net income of $213.36 million in 2024 Q2. The company has also raised FY25 oil production guidance by 500 Bopd and reduced capital spending by $20MM at the midpoint.

Revenue
Chord Energy's total revenue for Q2 2025 declined by 6.4% to $1.18 billion, compared to $1.26 billion in Q2 2024. This decline was primarily driven by a reduction in Oil, NGL, and gas revenues, which together accounted for $950.27 million of the total. Additionally, Purchased oil and gas sales contributed $230.29 million to the company’s revenue. The performance of these revenue streams illustrates the challenges Chord Energy faced in maintaining its previous levels of income.

Earnings/Net Income
The earnings results for Chord Energy were sharply negative in Q2 2025, with a loss of $6.71 per share compared to a profit of $4.36 per share in Q2 2024. This represents a 253.9% negative change in EPS. The net loss was also significant, amounting to $389.90 million, a 282.7% deterioration compared to a net income of $213.36 million in the same period last year. This indicates a substantial decline in profitability and operational performance for the company.

Price Action
The stock price of Chord Energy experienced a mixed performance, with a 2.00% decline during the latest trading day and a more pronounced 6.31% drop over the most recent full trading week. However, the company's stock showed a modest improvement with a 1.66% increase month-to-date. Despite these fluctuations, the company's post-earnings price action strategy demonstrated strong results, with a 203.01% return.

Post Earnings Price Action Review
The post-earnings price action strategy for Chord Energy proved to be highly effective, delivering a return of 203.01%. This performance significantly outperformed the benchmark return of 73.83%, highlighting the strategy's ability to capitalize on positive earnings surprises. The excess return of 129.18% underscored the potential for substantial gains, while a Sharpe ratio of 0.64 and a maximum drawdown of 0.00% indicated that the strategy carried relatively low risk. These metrics suggest that the company's stock is a compelling investment opportunity, especially for those willing to take on a moderate level of risk.

CEO Commentary
Danny Brown, President and Chief Executive Officer of Chord Energy, emphasized the company’s operational excellence and strategic focus on disciplined capital allocation. He highlighted strong asset performance and efficient execution as key factors in achieving above-expected free cash flow. Brown also expressed confidence in the company’s position in the Williston Basin, which he believes enables continuous improvement despite ongoing commodity volatility. The leadership team remains committed to optimizing capital allocation and enhancing Adjusted Free Cash Flow, with an optimistic outlook reflecting improved guidance and execution efficiency.

Guidance
Chord Energy has raised its FY25 oil production guidance by 500 Bopd and reduced capital spending by $20MM at the midpoint. This updated outlook implies a ~20% improvement in Adjusted Free Cash Flow and a ~25% improvement in Adjusted Free Cash Flow per share compared to the February guidance, normalized for commodity pricing. The company is on schedule to return a second completions crew in 4Q25 and is accelerating 4-mile lateral drilling, now projecting seven TILs in FY25. These adjustments reflect the company's commitment to enhancing operational efficiency and maximizing shareholder returns.

Additional News
Chord Energy has implemented significant measures to enhance shareholder value, including a robust dividend and share repurchase program. The company declared a base dividend of $1.30 per share and repurchased $55.0 million of common stock in Q2 2025 at an average price of $90.80 per share. Additionally, the company has authorized a new $1 billion share repurchase program, further demonstrating its commitment to returning capital to shareholders. The Board of Directors remains focused on optimizing capital allocation and operating sustainably, with an emphasis on disciplined capital expenditures and strategic M&A activities. The company's recent operational achievements, including the successful drilling of four 4-mile laterals and improved production volumes, underscore its ability to deliver strong performance amidst challenging market conditions.