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- **Free Cash Flow Dominance**: $230M Q3 FCF, 69% returned to shareholders. Pro forma free cash flow per share up 35% since Enerplus combo.
- **4-Mile Well Breakthrough**: 7 wells online, 40% of 2026 program. EUR estimates 90-100% of 2-mile wells, with 2026 benefits materializing late 2026/2027.
- **Cost Efficiency Record**: $120M savings in 2025, targeting $30-50M annual marketing cost savings. 2026 CapEx flat vs 2025 + $40M for XTO.
- **XTO Synergy**: 4,000 bbls/day added, with 2026 program incorporating XTO acreage. 2026 oil volumes 157-161k bbls/day, up 4% vs 2024 pro forma.
- **AI-Driven Optimization**: 5,000 wells under AI automation, reducing downtime. Workover rig efficiency improved 23x with 24/7 operations.

**【Management Opening Remarks】**
- Bob Bakanauskas provided standard forward-looking statements and referenced the Q3 2025 press release and investor presentation.

**【CEO Commentary】**
- **Free Cash Flow & Shareholder Returns**: Q3 2025 free cash flow of $230M, with 69% returned to shareholders via dividends and buybacks. Base dividend of $1.30/share, with incremental capital returned to share repurchases.
- **4-Mile Well Program**: 7 wells turned-in-line by year-end, targeting 40% of 2026 program. Early wells under budget, with EUR estimates 90-100% of 2-mile wells despite assumed 20% degradation in 4th mile.
- **Alternative Shaped Wells**: 11 drilled, 8 online, with costs ~2-3% higher than straight wells but no material EUR difference. Expected to make up ~10% of long-term inventory.
- **Marketing Cost Efficiency**: $30-50M annual savings, with ~$120M improvement in 2025 from production, LOE, capital, and marketing cost reductions.
- **XTO Acquisition**: Added 4,000 bbls/day production, with $15M capital added to 2025 budget. 2026 CapEx guidance of $1.4B (flat vs 2025 + $40M for XTO). 2026 oil volumes expected at 157-161k bbls/day.
- **2026 Outlook**: Capital efficiency improved by ~$100M vs 2024, with focus on longer laterals and cost derisking.

**【CFO Commentary】**
- **Financial Performance**: GAAP net income $420M, Non-GAAP EPS $1.08 (vs $0.95 consensus). Free cash flow per share up 20% YoY, 35% since Enerplus combo.
- **Cost Savings**: $30-50M annual marketing cost savings, with ~$40M realized in 2025. LOE and capital efficiency improvements driving $120M total savings.

**【Q&A Highlights】**
- **4-Mile Well Timeline**: Benefits expected in late 2026/2027 due to longer decline curves. 2027 CapEx impact TBD.
- **Marketing Savings**: $20M impact in 2025, $40M midpoint in 2026. Gas price volatility expected to moderate in 2026.
- **Alternate Shapes**: Execution success with <5% cost premium, no EUR penalty. Concentrated in legacy-constrained areas but broadly applicable.
- **Artificial Lift**: 5,000 wells under AI automation, reducing downtime and workover frequency. ESP conversion to rodless systems in pilot.
- **XTO Integration**: Minimal execution risk, with 2026 program incorporating XTO acreage in late 2026. 2027+ potential for longer laterals.
- **Dividend Policy**: Base dividend defendable at low oil prices, with share buybacks for incremental returns. No immediate plans for dividend growth.

Chord Energy Corporation (CHRD) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

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Operating Income

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Income (Loss) from Associates

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Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

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Net Income

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Total Comprehensive Income Attributable to Owners of the Company

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CHRD

CHRD fundamentals

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