Chord Energy Corp will trade ex-dividend on 8/21/25 for its quarterly dividend of $1.30, payable on 9/8/25. The dividend represents a 1.28% decrease in stock price and an annualized yield of 5.11%. Shares are currently trading at $101.71.
Chord Energy Corp (NASDAQ: CHRD) will trade ex-dividend on August 21, 2025, for its quarterly dividend of $1.30, payable on September 8, 2025. The upcoming dividend represents a 1.28% decrease in stock price and an annualized yield of 5.11%. As of the current date, shares are trading at $101.71.
Investors should be aware of the ex-dividend date, which occurs one day before the record date. To be eligible for the dividend, investors must purchase shares before the ex-dividend date to ensure they are on the company's books by the record date. Chord Energy's next dividend payment will be $1.30 per share, following a total distribution of $5.39 to shareholders last year.
The company's trailing yield of 5.3% is based on the current share price of $102.11. While dividends are an important source of income for shareholders, the health of the business is crucial to maintaining those dividends. Chord Energy has a history of growing its dividends, with earnings per share increasing by 29% annually over the past five years. However, the company distributed an unsustainably high 118% of its profit as dividends last year, which is a concern for investors [1].
Chord Energy's dividend sustainability can be evaluated by examining its free cash flow. The company distributed 43% of its free cash flow as dividends, which is a comfortable payout level for most companies. While the dividend was not covered by profits, the company generated enough cash to fund its dividend payments [1].
Investors should also consider Chord Energy's operational efficiency and financial performance. The company has made significant strides in its operational efficiency, particularly with its 4-mile lateral drilling program. This has led to a reduction in sustaining capital expenditure and potential long-term growth opportunities [2].
However, recent analyst reports highlight both promising developments and potential challenges. The company's financial metrics show a mixed picture, with projected declines in several key financial indicators over the coming years. The company's return on capital employed is expected to decrease from 18.0% in 2023 to an estimated 5.0% by 2027. Free cash flow is anticipated to decline significantly from $914 million in 2023 to $493 million in 2026 before rebounding to $711 million in 2027 [2].
In response to current market conditions, Chord Energy's management is actively pursuing several strategic initiatives, including an aggressive stock buyback program and potential asset monetization in the Marcellus shale region. These initiatives aim to capitalize on the perceived undervaluation of CHRD shares and provide additional capital for core operations or further shareholder returns [2].
The energy sector, and Chord Energy in particular, faces several industry-wide challenges, including the volatility of oil prices and the economics of the Bakken region compared to the Permian basin. A prolonged period of sub-$60/bbl oil prices could lead to reduced activity levels and impact the company's financial performance [2].
Investors should carefully consider these factors before making a decision. While Chord Energy presents an interesting case for investors, the uncertain oil price environment and declining financial metrics present significant hurdles. Analysts are also closely watching for potential mergers and acquisitions opportunities that could reshape the company's market position.
References:
[1] https://finance.yahoo.com/news/worth-considering-chord-energy-corporation-125221808.html
[2] https://za.investing.com/news/swot-analysis/chord-energys-swot-analysis-oil-producers-stock-faces-price-pressures-93CH-3843904
Comments
No comments yet