Chord Energy’s Investor Meeting Takeaways
RBC Capital analysts provided their key takeaways from Investor Meetings with Chord Energy Corporation (NASDAQ:CHRD) CFO Michael Lou. According to the analysts, the focus shift to maximizing returns and free cash flow (FCF) from total oil-in-place recovery provides more visibility to FCF sustainability. There is high confidence in maintaining this output for several years with the improvements seen in its good performance. The analysts said the company has the land position to continue extending lateral lengths and replenish its drilling inventory.
At strip commodity prices, the analysts estimate 2023 FCF at $600 million or a 12% FCF yield. The leverage ratio (net debt-to-EBITDA) remains at sub-zero and should stay well below the 0.5x threshold where the company's FCF payout is at least 75%.
Management has utilized a fixed dividend (4+%) in addition to buybacks and special dividends. According to the analysts, the robust fixed dividend shows management's confidence in its outlook and there is more room to increase that moving forward. The analysts believe the plan is to be balanced with dividends and buybacks over time.
| Symbol | Price | %chg |
|---|---|---|
| MEDC.JK | 1245 | 0 |
| ENRG.JK | 336 | 0 |
| NVTK.ME | 993 | 0 |
| 1605.T | 2053.5 | 0 |
Enerplus Shares Jump 10% on Chord Energy's Acquisition Announcement
Chord Energy (NASDAQ:CHRD) disclosed on Wednesday its intention to acquire Canadian energy company Enerplus (NYSE:ERF), marking a significant move that will form a new powerhouse in the Williston basin with an enterprise value estimated at $11 billion. This strategic acquisition aligns with the ongoing consolidation trend in the U.S. oil and gas industry, positioning the combined entity as a dominant force in the Williston basin of North Dakota. The merged company will manage approximately 1.3 million net acres and have a production capacity of about 287,000 barrels of oil equivalent per day.
Following the announcement, Enerplus shares surged over 10% intra-day today.
The acquisition agreement stipulates that Enerplus shareholders will get 0.10125 shares of Chord Energy common stock and $1.84 in cash for each share of Enerplus they own. Given Chord Energy's stock price at the close of the announcement day, the equity value of this deal is projected to be around $3.8 billion.
Enerplus Shares Jump 10% on Chord Energy's Acquisition Announcement
Chord Energy (NASDAQ:CHRD) disclosed on Wednesday its intention to acquire Canadian energy company Enerplus (NYSE:ERF), marking a significant move that will form a new powerhouse in the Williston basin with an enterprise value estimated at $11 billion. This strategic acquisition aligns with the ongoing consolidation trend in the U.S. oil and gas industry, positioning the combined entity as a dominant force in the Williston basin of North Dakota. The merged company will manage approximately 1.3 million net acres and have a production capacity of about 287,000 barrels of oil equivalent per day.
Following the announcement, Enerplus shares surged over 10% intra-day today.
The acquisition agreement stipulates that Enerplus shareholders will get 0.10125 shares of Chord Energy common stock and $1.84 in cash for each share of Enerplus they own. Given Chord Energy's stock price at the close of the announcement day, the equity value of this deal is projected to be around $3.8 billion.
Enerplus Shares Jump 10% on Chord Energy's Acquisition Announcement
Chord Energy (NASDAQ:CHRD) disclosed on Wednesday its intention to acquire Canadian energy company Enerplus (NYSE:ERF), marking a significant move that will form a new powerhouse in the Williston basin with an enterprise value estimated at $11 billion. This strategic acquisition aligns with the ongoing consolidation trend in the U.S. oil and gas industry, positioning the combined entity as a dominant force in the Williston basin of North Dakota. The merged company will manage approximately 1.3 million net acres and have a production capacity of about 287,000 barrels of oil equivalent per day.
Following the announcement, Enerplus shares surged over 10% intra-day today.
The acquisition agreement stipulates that Enerplus shareholders will get 0.10125 shares of Chord Energy common stock and $1.84 in cash for each share of Enerplus they own. Given Chord Energy's stock price at the close of the announcement day, the equity value of this deal is projected to be around $3.8 billion.
Chord Energy Buys Williston Basin Assets from Exxon for $375 million
Chord Energy (NASDAQ:CHRD) announced on Monday that it will acquire Williston Basin assets from the subsidiaries of Exxon Mobil for $375 million.
The deal will be funded with cash on hand, which stood at $592 million on March 31. The properties include 62,000 net acres around the company's near-term development activity and now produce 6 Mboe/d (62% oil). The transaction is anticipated to close at the end of June.
An important aspect of the transaction besides financial/free cash flow accretion is to maintain or improve its drilling inventory. Analysts at RBC Capital think Chord Energy has over 10-year drilling inventory at maintenance levels, but the new properties should add a year to that view.
Chord Energy Buys Williston Basin Assets from Exxon for $375 million
Chord Energy (NASDAQ:CHRD) announced on Monday that it will acquire Williston Basin assets from the subsidiaries of Exxon Mobil for $375 million.
The deal will be funded with cash on hand, which stood at $592 million on March 31. The properties include 62,000 net acres around the company's near-term development activity and now produce 6 Mboe/d (62% oil). The transaction is anticipated to close at the end of June.
An important aspect of the transaction besides financial/free cash flow accretion is to maintain or improve its drilling inventory. Analysts at RBC Capital think Chord Energy has over 10-year drilling inventory at maintenance levels, but the new properties should add a year to that view.
Chord Energy’s Review Following Q1 Earnings
Chord Energy Corporation (NASDAQ:CHRD) shares rose around 11% since the company’s reported Q1 results earlier this month, with revenue of $943.9 million coming in significantly above the Street estimate of $714.49 million. EPS was ($0.24), compared to the Street estimate of $4.30.
According to the analysts at RBC Capital, the company’s leading free cash flow profile and cash position should provide strong return along with the ability to compete for accretive M&A opportunities.
The analysts believe shareholder returns could start to be more balanced with buybacks, but a leading dividend likely remains the case as well. The analysts see a nice path during H2/23 where capital spending tapers as production ramps higher.
Chord Energy’s Review Following Q1 Earnings
Chord Energy Corporation (NASDAQ:CHRD) shares rose around 11% since the company’s reported Q1 results earlier this month, with revenue of $943.9 million coming in significantly above the Street estimate of $714.49 million. EPS was ($0.24), compared to the Street estimate of $4.30.
According to the analysts at RBC Capital, the company’s leading free cash flow profile and cash position should provide strong return along with the ability to compete for accretive M&A opportunities.
The analysts believe shareholder returns could start to be more balanced with buybacks, but a leading dividend likely remains the case as well. The analysts see a nice path during H2/23 where capital spending tapers as production ramps higher.
