Earnings release
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Chord Energy Investor Relations Chord Energy Reports Third Quarter 2026 Financial and Operating Results,Declares Base Dividend, and Updates 2026 Outlook HOUSTON, Nov. 4, 2026 /PRNewswire/ -- Chord Energy Corporation (NASDAQ: CHRD) ("Chord," "ChordEnergy," or the "Company") today reported financial and operating results for the third quarter 2026. Key Takeaways and Updates: Operational Strength: Cash Flow from Operations and Adjusted Free Cash Flow(1) exceeded expectations in3Q26, supported by production volumes above the high-end of guidance and strong price realizations;Raising Volumes & Adjusted Free Cash Flow Estimates: Strong operational performance led Chord to increaseFY26 oil volumes ~1% to 162.5 MBopd and FY26 Adjusted Free Cash Flow expectations increased by~$200MM since the August outlook;Shareholder Returns: Returned capital through the $1.30/share base dividend and $205MM of share repurchasesat an average price of $135.74/share during 3Q26 with another $78MM repurchased in 4Q26 as of October 30,2026 at an average price of $146.84/share;Marketing Optimization: Executed numerous third-party marketing agreements YTD, which are expected todeliver $35MM-$55MM annualized Adjusted Free Cash Flow savings over time, and also identified additionalsmall-scale midstream investment opportunities. See "Marketing Update" below for additional information;Executing 4-Mile Laterals: Successfully executed and turned in line ("TIL") 24 additional 4-mile wells acrossfive pads;Enhancing Base Production: Continuing to benefit from strength in base production performance which isdriving volumes above the initial 2026 plan;Driving Run-Rate Savings: Expected annual run-rate savings now $225MM, more than double the amountexpected in the initial 2025 update, with the recent increase driven by base production optimization and furthermarketing improvements; andMarcellus Divestiture: Announced divestiture of non-operated Marcellus assets for total gross consideration of$550.0 million, including $55.0 million deposit received during 3Q26. Closing is expected in 4Q26. 3Q26 Operational and Financial Highlights: Strong Volumes: Oil volumes of 165.5 MBopd were above the top-end of guidance. Natural gas and NGLvolumes were also above the top-end of guidance;Capital Discipline: CapEx of $371MM, after excluding $4.5MM of reimbursable non-op CapEx and $6.0MMof reimbursable Marcellus CapEx that exceeded expectations, was slightly below midpoint of guidance;Realizations: Oil differentials were favorable to expectations as were natural gas and NGL realizations; Profitability: Net income was $181.6MM ($3.29/diluted share) and Adjusted Net Income(1) was $332.9MM($6.08/diluted share); and Cash Generation: Net cash provided by operating activities was $781.4MM, Adjusted EBITDA(1) was $871.3MM and Adjusted Free Cash Flow(1) was $442MM (excluding $4.5MM of reimbursable non-op CapExand $6.0MM of reimbursable Marcellus CapEx that exceeded expectations). "Chord's operational momentum continues and the team delivered solid results in the third quarter," said Michael Lou,Chord Energy's President and Chief Executive Officer. "Third quarter volumes were above the top-end of guidanceand Chord raised FY26 oil volume guidance for the second time this year. We continue to execute on our strategy andmake further progress on key projects, including our 4-mile program and base production enhancement. Chord alsoexecuted several third-party marketing agreements that, alongside other initiatives implemented over the past twoyears, increased annual run-rate savings to $225 million. Chord continues to drive efficiency through every aspect ofthe business, which puts the Company in a strong position to enhance economics and benefit from higher prices whileimproving our resiliency to create value through the commodity cycle." Mr. Lou continued, "As I step into the CEO role, I'm honored to lead Chord through our next chapter. We have built atop-tier organization with talented leaders and employees who are passionate about executing on our strategy anddriving long-term value for our shareholders. I'm proud of the tremendous progress Chord has made over the pastseveral years and look forward to driving further improvements. I am eager to work with the Chord team as well asour communities and other stakeholders to build upon our strong operational and financial performance, while safelyproducing the affordable and reliable energy the world needs." 3Q26 Operational and Financial Update: The following table presents select 3Q26 operational and financial data compared to guidance released on August 5,2026 and the Preliminary 3Q26 results released on October 19, 2026: Metric 3Q26 ActualPreliminary 3Q26 Results3Q26 GuidanceOil Volumes (MBopd) 165.5 165.4 - 165.6161.5 - 164.5NGL Volumes (MBblpd) 55.1 55.0 - 55.2 50.0 - 52.0
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Natural Gas Volumes (MMcfpd) 420.6 420.4 - 420.8397.0 - 405.0Total Volumes (MBoepd) 290.8 290.5 - 290.9277.7 - 284.0 CapEx ($MM)(1) $381.8 $379 - $385 $360 - $390Oil Premium/(Discount) to WTI ($/Bbl) $0.11 $0.06 - $0.16$(0.70) - $0.30NGL Realization (% of WTI) 14 % 13% - 15% 4% - 10%Natural Gas Realization (% of Henry Hub)36 % 35% - 37% 20% - 30%LOE ($/Boe) $10.56 $10.51 - $10.61$10.00 - $11.00 Cash GPT ($/Boe)(2) $2.77 — $2.75 - $3.15 Cash G&A ($MM)(2) $25.5 — $25 - $27Production Taxes (% of Oil, NGL and Natural Gas Sales)8.2 % 8.1% - 8.3% 8.0% - 8.4% Cash Interest ($MM)(2) $26.0 — $25 - $27 Cash Tax ($MM)(3) $32.0 $32.0 — Cash Tax (% of Adjusted EBITDA(2)) 3.7 % — 3% - 9%___________________(1)3Q26 includes $4.5MM of reimbursable non-op CapEx and $6.0MM of reimbursable Marcellus CapEx thatexceeded expectations.(2)Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the mostdirectly comparable financial measures under GAAP.(3)Represents actual cash taxes paid in 3Q26 presented on a cash basis and does not include changes in accrued taxamounts included in working capital and deferred taxes within our condensed consolidated financial statements. Chord had 29 gross (22 net) operated TILs in 3Q26. Return of Capital: Chord declared a base dividend of $1.30 per share of common stock. The dividend will be payable on December 7,2026 to shareholders of record as of November 19, 2026. The Company repurchased 1,510,156 shares of common stock at a weighted average price of $135.74/share totaling$205.0MM in 3Q26. Shares outstanding were 53.7MM (54.4MM on a fully-diluted basis) as of September 30, 2026,compared to 55.2MM (56.0MM on a fully-diluted basis) as of June 30, 2026. Additionally, Chord repurchased another$78MM of shares in 4Q26 as of October 30, 2026 at an average price of $146.84/share. Details regarding the Returnof Capital calculation can be found in the Company's most recent investor presentation located on its websiteat https://ir.chordenergy.com/presentations. Marketing Update: Chord has executed numerous third-party marketing agreements year-to-date, which are expected to deliver$35MM-$55MM of annualized Adjusted Free Cash Flow savings. These agreements encompass crude oil, natural gasand water marketing and midstream services across the Company's Williston Basin acreage position, reflectingChord's ongoing commitment to continuous improvement, cost efficiency and value creation. Additionally, Chord has identified additional small-scale midstream investment opportunities with competitiveeconomics. These projects are largely focused on water gathering and disposal and are expected to lead to total FY26midstream CapEx of $50MM vs. $30MM in February guidance. Operations Update: 4-Mile Laterals: As of 3Q26, the Company has turned in line 47 total 4-mile wells. Execution and productionresults continue to be in line with expectations, supported by multi-well efficiencies. Chord has scaled its 4-mileprogram throughout 2026, with 70% of its lateral footage drilled as 4-mile wells, as of September 30, 2026.Execution: Chord continues to demonstrate strong operational execution and improved cycle times across itsWilliston Basin program. The Company continues to drive 4-mile efficiencies, with 70% of its laterals beingdrilled in a single run. As compared to 2025, Chord's 2026 frac productivity has improved by over 20%,achieving a mile per day of completed lateral length in 3Q26. Cleanouts continue to reach total depth, ensuringcontribution from the toe.Production/LOE: Continued execution improvements on base production helped drive production above thehigh-end of guidance. This has been driven by a broad set of initiatives across logistics, mechanicaloptimization, returning shut-in wells to production, and various chemical treatments. The team continues togenerate new ideas, aided by AI screening tools, and Chord is testing multiple new approaches within itschemical workover program. 2026 Outlook Update: Chord is updating its 2026 guidance to reflect 3Q26 performance and its latest forecasts, which assumes the Marcellusdivestiture closes mid-4Q26. In 2026, Chord expects to generate approximately $3.4B of Adjusted EBITDA and$1.6B of Adjusted Free Cash Flow, including the impact of derivatives ($90/Bbl WTI and $3.00/MMBtu Henry Hubfor 4Q26).
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Key Update Summary: Volumes: FY26 oil volume midpoint guidance increased ~1% from 161.0 MBopd to 162.5 MBopd; 4Q26 oil volume midpoint guidance of 161.0 MBopd reflects continued strong operational performancefrom production optimization and the development program; Capital: FY26 CapEx midpoint guidance increasing from $1.4B to $1.46B; FY26 CapEx range includes ~$20MM in incremental midstream spending vs. August guidance;4Q26 CapEx midpoint guidance of $330MM reflects higher midstream spending and higher operated andnon-operated activity;FY26 CapEx excludes ~$10MM of 2H26 Marcellus CapEx that exceeded expectations vs. originalguidance, which will be fully reimbursed at closing; Realizations: Adjusting realization guidance to reflect the current market outlook and for the Marcellusdivestiture;LOE: Adjusting for impacts of the Marcellus divestiture;Cash GPT: Lowering Cash GPT guidance reflecting the impact of marketing optimization discussed above andthe Marcellus divestiture;Cash Taxes: Adjusting FY26 for YTD performance. Cash Tax (% of Adjusted EBITDA) FY26 midpointguidance remains essentially unchanged vs. August guidance; andActivity: Chord plans to TIL 149–155 gross operated wells in FY26 with an average working interest of ~75%.4Q26 volumes and 4Q26 CapEx reflect a sequential decline in activity as a result of dropping the second fraccrew in July, with plans to reinstate the second crew in late 2026 or early 2027. The following table presents select operational and financial guidance for the periods presented. Guidance includesMarcellus through anticipated mid 4Q26 close. Metric 4Q26 GuidanceFY26 GuidanceOil Volumes (MBopd) 159.5 - 162.5162.0 - 163.0NGL Volumes (MBblpd) 53.0 - 55.052.5 - 53.0Natural Gas Volumes (MMcfpd) 351.0 - 359.0398.0 - 400.0Total Volumes (MBoepd) 271.0 - 277.3280.9 - 282.7 CapEx ($MM)(1) $305 - $355$1,435 - $1,485Oil Premium/(Discount) to WTI ($/Bbl) $0.50 - $1.50$(0.09) - $0.16NGL Realization (% of WTI) 15% - 25%13% - 15%Natural Gas Realization (% of Henry Hub)30% - 40%41% - 43%LOE ($/Boe) $10.50 - $11.50$10.31 - $10.55 Cash GPT ($/Boe)(2) $2.40 - $2.80$2.70 - $2.80 Cash G&A ($MM)(2) $25 - $29 $99 - $103Production Taxes (% of Oil, NGL and Natural Gas Sales)8.0% - 8.4%8.1% - 8.2% Cash Interest ($MM)(2) $25 - $27 $103 - $105 Cash Tax (% of Adjusted EBITDA(2))(3) 5% - 11% 5% - 6%___________________(1)FY26 CapEx excludes $8.2MM of reimbursable non-op CapEx YTD and ~$10MM of 2H26 Marcellus CapExthat exceeded expectations vs. original guidance, which will be fully reimbursed at closing;(2)Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the mostdirectly comparable financial measures under GAAP.(3)4Q26 reflects $70/Bbl – $100/Bbl WTI. Select Operational and Financial Data: The following table presents select operational and financial data for the periods presented: 3Q26 2Q26 3Q25Production data:Crude oil (MBopd) 165.5 165.4 155.7NGL (MBblpd) 55.1 53.0 55.1 Natural gas (MMcfpd)(1) 420.6 408.0 420.1Total production (MBoepd) 290.8 286.4 280.9 Average sales prices:Crude oil, without realized derivatives ($/Bbl)$ 85.80$ 93.99$ 63.59Differential to NYMEX WTI ($/Bbl) 0.11 1.27 (1.41)Crude oil, with realized derivatives ($/Bbl)81.95 86.94 64.16Crude oil realized derivatives gain (loss) ($MM)(58.6) (106.2) 8.3
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NGL, without realized derivatives ($/Bbl)11.92 9.25 4.89NGL, with realized derivatives ($/Bbl) 11.92 9.25 4.89 Natural gas, without realized derivatives ($/Mcf)(2) 1.07 0.94 0.81Natural gas, with realized derivatives ($/Mcf)1.32 1.29 1.11Natural gas realized derivatives gain (loss) ($MM)10.0 13.0 11.5Selected financial data ($MM):Revenues:Crude oil revenues $ 1,306.6$ 1,415.0$ 910.8NGL revenues 60.5 44.6 24.8Natural gas revenues 41.3 34.7 31.2 Total oil, NGL and natural gas revenues$ 1,408.4$ 1,494.3$ 966.8 Cash flows:Net cash provided by operating activities:$ 781.4$ 1,116.2 $ 559.0Net income:Net income $ 181.6$ 525.2$ 130.1 Non-GAAP financial measures(3):Adjusted EBITDA $ 871.3$ 923.5$ 577.8 Adjusted Free Cash Flow(4) 431.5 413.4 218.6Adjusted Net Income Attributable to Common Stockholders332.9 361.7 134.5Select operating expenses:LOE $ 282.5$ 267.8$ 248.6Gathering, processing and transportation expenses ("GPT")81.6 62.8 73.1Production taxes 115.8 125.9 79.5Depreciation, depletion and amortization390.7 409.2 374.9 Total select operating expenses $ 870.6$ 865.7$ 776.1 Select operating expenses ($/Boe):LOE $ 10.56$ 10.28$ 9.62GPT 3.05 2.41 2.83Production taxes 4.33 4.83 3.08Depreciation, depletion and amortization14.61 15.70 14.51 Total select operating expenses $ 32.55$ 33.22$ 30.04 Earnings per share:Basic earnings per share $ 3.30$ 9.30$ 2.26Diluted earnings per share 3.29 9.28 2.26 Adjusted diluted earnings per share (Non-GAAP)(3) 6.08 6.44 2.35___________________(1)Marcellus natural gas volumes were 118.6 MMcfpd in 3Q26, 116.9 MMcfpd in 2Q26 and 117.5 MMcfpd in3Q25.(2)Marcellus natural gas realized prices were $2.03/Mcf in 3Q26, $2.10/Mcf in 2Q26 and $2.16/Mcf in 3Q25.(3)Non-GAAP financial measure. See "Non-GAAP Financial Measures" below for a reconciliation to the mostdirectly comparable financial measures under GAAP.(4)3Q26, 2Q26 and 3Q25 include $4.5MM, $0.7MM and $11.7MM of reimbursable non-op CapEx, respectively. Capital Expenditures: The following table presents the Company's CapEx by category for the periods presented (in millions): 1Q26 2Q26 3Q26 YTD26CapEx ($MM): E&P(1) $ 330.6$ 402.3$ 370.6$ 1,103.5Midstream 14.2 14.2 10.0 38.4Other 0.1 0.2 1.2 1.5 Total CapEx(2) $ 344.9$ 416.7$ 381.8$ 1,143.4 __________________ (1)YTD26 includes $8.2MM of reimbursable non-op CapEx and $6.0MM of reimbursable Marcellus CapEx thatexceeded expectations.(2)YTD26 excludes capitalized interest costs of $2.7MM. Acquisitions: Acquisition and leasehold costs were $3.5MM in 3Q26. Balance Sheet and Liquidity:
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The following table presents key balance sheet data and liquidity metrics as of September 30, 2026 (in millions): September 30, 2026 Revolving credit facility(1) $ 2,000.0 Revolver borrowings$ —Senior notes 1,500.0Total debt $ 1,500.0 Cash and cash equivalents$ 804.7Letters of credit 30.3Liquidity $ 2,774.4___________________(1)$2.75B borrowing base and $2.0B of elected commitments. Contact: Chord Energy CorporationBob Bakanauskas, VP, Finance(281) 404-9600ir@chordenergy.com Conference Call Information Investors, analysts and other interested parties are invited to listen to the webcast: Date: Thursday, November 5, 2026Time: 10:00 a.m. CentralLive Webcast:https://app.webinar.net/eyOML5z9GVX You may use the following dial-in information to join the conference call by phone with operator assistance: Dial-in: 1-800-836-8184Intl. Dial-in:1-646-357-8785Conference ID:92041 A recording of the conference call will be available beginning at 1:00 p.m. Central on the day of the call and will beavailable until Thursday, November 12, 2026 by dialing: Replay dial-in:1-888-660-6345Intl. replay:1-646-517-4150Replay access:92041 # The call will also be available for replay for approximately 30 days at https://www.chordenergy.com Forward-Looking Statements and Cautionary Statements Certain statements in this press release, other than statements of historical facts, that address activities, events ordevelopments that Chord expects, believes or anticipates will or may occur in the future, including any statementsregarding future opportunities for Chord, future financial performance and condition, guidance and statementsregarding Chord's expectations, beliefs, plans, financial condition, objectives, assumptions or future events orperformance are forward-looking statements based on assumptions currently believed to be valid. Forward-lookingstatements are all statements other than statements of historical facts. The words "anticipate," "believe," "ensure,""expect," "if," "intend," "estimate," "probable," "project," "forecasts," "predict," "outlook," "aim," "will," "could,""should," "would," "potential," "may," "might," "likely," "plan," "positioned," "strategy" and similar expressions orother words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements.Specific forward-looking statements include statements regarding Chord's plans and expectations with respect to thereturn of capital plan, production levels, anticipated financial and operating results, other guidance, and the effects andanticipated benefits of the Marcellus divestiture. The forward-looking statements are intended to be subject to the safeharbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on certain assumptions made by Chord based on management'sexperience and perception of historical trends, current conditions, anticipated future developments and other factorsbelieved to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many ofwhich are beyond the control of Chord, which may cause actual results to differ materially from those implied orexpressed by the forward-looking statements. These include, but are not limited to, the ability to complete or realizethe anticipated benefits from the Marcellus divestiture, changes in crude oil, NGL and natural gas realized prices,uncertainty regarding the future actions of foreign oil producers and the related impacts such actions have on thebalance between the supply of and demand for crude oil, NGLs, and natural gas, the actions taken by OPEC+ with
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respect to oil production levels and announcements of potential changes in such levels, including the ability of theOPEC+ countries to agree on and comply with production levels, changes in trade policies and regulations, includingincreases or change in duties, current and potentially new tariffs or quotas and other similar measures, as well as thepotential impact of retaliatory tariffs and other actions, war between Russia and Ukraine, military conflicts in the RedSea Region, Iran, and the wider Middle East and their effect on commodity prices, changes or uncertainty in generaleconomic and geopolitical conditions, inflation rates and the impact of associated monetary policy responses,including fluctuating interest rates, logistical challenges and supply chain disruptions, including as a result ofconflicts, our business strategy, including the continued implementation of our 4-mile well program, the geographicconcentration of our operations, uncertainties in estimating proved reserves and forecasting production results, drillingand completion of wells, operational factors affecting the commencement or maintenance of producing wells, theavailability of infrastructure and midstream service providers, our ability to realize the anticipated benefits fromacquisitions, the condition of the capital markets generally, as well as Chord's ability to access them, the proximity toand capacity of transportation facilities, uncertainties regarding environmental regulations or litigation and other legalor regulatory developments affecting Chord's business and other important factors that could cause actual results todiffer materially from those projected as described in Chord's reports filed with the U.S. Securities and ExchangeCommission (the "SEC"). Any forward-looking statement speaks only as of the date on which such statement is made and Chord undertakes noobligation to correct or update any forward-looking statement, whether as a result of new information, future events orotherwise, except as required by applicable law. As forward-looking statements involve significant risks anduncertainties, caution should be exercised against placing undue reliance on such statements. Additional informationconcerning other risk factors is also contained in Chord's most recently filed Annual Report on Form 10-K for the yearended December 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other SECfilings. About Chord Energy Chord Energy Corporation is an independent exploration and production company with quality and sustainable long-lived assets primarily in the Williston Basin. The Company is uniquely positioned with a best-in-class balance sheetand is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely andresponsibly to develop its unconventional onshore oil-rich resources in the continental United States. For moreinformation, please visit the Company's website at www.chordenergy.com. Chord Energy CorporationCondensed Consolidated Balance Sheets (Unaudited)(In thousands, except share data) September 30, 2026December 31, 2025 ASSETSCurrent assetsCash and cash equivalents $ 804,713$ 189,531Accounts receivable, net 1,448,229 1,116,685Inventory 111,978 115,713Prepaid expenses 32,453 33,767Derivative instruments 281 77,312Other current assets 5,640 5,061Current assets held for sale 444,421 — Total current assets 2,847,715 1,538,069Property, plant and equipmentOil and gas properties (successful efforts method) 15,441,121 14,848,968Other property and equipment 61,740 60,395Less: accumulated depreciation, depletion and amortization(4,599,957) (3,572,834) Total property, plant and equipment, net 10,902,904 11,336,529Derivative instruments — 8,366Investment in equity securities 143,507 119,698Long-term inventory 26,042 30,759Operating right-of-use assets 14,141 12,749Other assets 36,967 28,104 Total assets $ 13,971,276$ 13,074,274 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilitiesAccounts payable $ 106,525$ 41,795Revenues and production taxes payable 824,478 618,258Accrued liabilities 920,542 735,386Accrued interest payable 4,237 28,594Derivative instruments 163,505 —
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Current operating lease liabilities 10,565 14,656Other current liabilities 45,883 11,898Current liabilities held for sale 52,862 — Total current liabilities 2,128,597 1,450,587Long-term debt, net 1,482,245 1,479,581Deferred tax liabilities 1,667,325 1,615,850Asset retirement obligations 389,037 432,802Derivative instruments 13,373 —Operating lease liabilities 13,562 10,518Other liabilities 10,516 4,982 Total liabilities 5,704,655 4,994,320Commitments and contingenciesStockholders' equityCommon stock, $0.01 par value: 240,000,000 shares authorized, 67,253,511shares issued and 53,691,441 shares outstanding at September 30, 2026; and240,000,000 shares authorized, 67,150,747 shares issued and 56,762,243 sharesoutstanding at December 31, 2025 676 675Treasury stock, at cost: 13,562,070 shares at September 30, 2026 and 10,388,504shares at December 31, 2025 (1,731,331) (1,304,092)Additional paid-in capital 7,358,236 7,339,735Retained earnings 2,639,040 2,043,636 Total stockholders' equity 8,266,621 8,079,954 Total liabilities and stockholders' equity $ 13,971,276$ 13,074,274 Chord Energy CorporationCondensed Consolidated Statements of Operations (Unaudited)(In thousands, except per share data) Three Months Ended September 30,Nine Months Ended September 30,2026 2025 2026 2025 RevenuesOil, NGL and gas revenues $ 1,408,368$ 966,847$ 4,053,241$ 3,020,537Purchased oil and gas sales 297,533 345,234 1,490,980 687,150 Total revenues 1,705,901 1,312,081 5,544,221 3,707,687Operating expensesLease operating expenses 282,461 248,604 795,209 738,644Gathering, processing and transportation expenses81,587 73,052 211,370 220,467Purchased oil and gas expenses 296,191 340,947 1,477,684 684,060Production taxes 115,829 79,509 328,418 223,116Depreciation, depletion and amortization390,749 374,919 1,184,201 1,101,725General and administrative expenses 32,009 21,861 99,411 92,778Impairment and exploration 2,030 2,034 7,280 545,957 Total operating expenses 1,200,856 1,140,926 4,103,573 3,606,747 Gain (loss) on sale of assets, net (28) (365) 311 4,628 Operating income 505,017 170,790 1,440,959 105,568Other income (expense)Net gain (loss) on derivative instruments(246,002) 20,724 (379,607) 82,674Net gain (loss) from investment in equity securities7,186 (4,646) 31,158 (10,507)Interest expense, net of capitalized interest(26,747) (18,717) (80,006) (53,324)Loss on debt extinguishment — — — (3,494)Other income, net 6,189 2,146 14,704 6,692 Total other income (expense), net(259,374) (493) (413,751) 22,041Income before income taxes 245,643 170,297 1,027,208 127,609Income tax expense (64,081) (40,186) (211,852) (167,566) Net income (loss) $ 181,562$ 130,111 $ 815,356$ (39,957) Earnings (loss) per share:Basic $ 3.30$ 2.26$ 14.51$ (0.72)Diluted $ 3.29$ 2.26$ 14.47$ (0.72)Weighted average shares outstanding:Basic 54,583 57,157 55,762 57,141Diluted 54,745 57,157 56,329 57,195
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Chord Energy CorporationCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands) Nine Months Ended September 30,2026 2025 Cash flows from operating activities:Net income (loss) $ 815,356$ (39,957)Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation, depletion and amortization 1,184,201 1,101,725Loss on debt extinguishment — 3,494Gain on sale of assets (311) (4,628)Impairment 37 539,323Deferred income taxes 51,475 106,699Net (gain) loss on derivative instruments 379,607 (82,674)Net (gain) loss from investment in equity securities (31,158) 10,507Equity-based compensation expenses 23,448 19,464Settlement of asset retirement obligations (27,747) (21,163)Deferred financing costs amortization and other (3,289) 1,881Working capital and other changes:Change in accounts receivable, net (360,346) 71,401Change in inventory 3,640 (12,343)Change in prepaid expenses 4,077 4,686Change in accounts payable, interest payable and accrued liabilities338,767 (56,034)Change in other assets and liabilities, net 27,248 (6,711) Net cash provided by operating activities 2,405,005 1,635,670Cash flows from investing activities:Capital expenditures (1,097,275)(1,044,820)Acquisitions (10,697) (27,434)Acquisition deposit — (55,000)Proceeds from divestitures 298 10,735Deposit received for assets held for sale 55,000 —Derivative settlements (117,331) 31,954Contingent consideration received 25,000 25,000Distributions from investment in equity securities 7,350 9,182Contributions to investments (7,851) —Net cash used in investing activities (1,145,506)(1,050,383)Cash flows from financing activities:Proceeds from revolving credit facility 85,000 3,687,000Principal payments on revolving credit facility (85,000) (4,132,000)Repayment and discharge of senior notes — (401,432)Issuance of senior notes — 1,500,000Deferred financing costs — (21,881)Repurchases of common stock (418,662) (357,837)Tax withholding on vesting of equity-based awards (4,947) (22,100)Dividends paid (219,074) (243,418)Payments on finance lease liabilities (1,634) (1,384)Proceeds from warrants exercised — 23 Net cash provided by (used in) financing activities (644,317) 6,971Increase in cash and cash equivalents 615,182 592,258Cash and cash equivalents:Beginning of period 189,531 36,950 End of period $ 804,713$ 629,208 Supplemental cash flow information:Cash paid for income taxes $ 119,192 $ 73,099Supplemental non-cash transactions:Change in accrued capital expenditures $ 47,576$ (252)Change in asset retirement obligations 4,900 102,364Change in dividends payable 879 1,173 Non-GAAP Financial Measures
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The following are non-GAAP financial measures included in this press release and are not prepared in accordancewith GAAP and are used by management and external users of the Company's financial statements, such as industryanalysts, investors, lenders and rating agencies. The Company believes that the foregoing are useful supplementalmeasures that provide an indication of the results generated by the Company's principal business activities. However,these measures are not recognized by GAAP and do not have a standardized meaning prescribed by GAAP. Therefore,these measures may not be comparable to similar measures provided by other issuers. From time to time, theCompany provides forward-looking forecasts of these measures; however, the Company is unable to provide aquantitative reconciliation of the forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because management cannot reliably quantify certain of the necessary components of suchforward-looking GAAP measures without unreasonable efforts. The reconciling items in future periods could besignificant. To see how the Company reconciles its historical presentations of these non-GAAP financial measures tothe most directly comparable GAAP measures, please visit the Investors—Documents & Disclosures—Non-GAAPReconciliation page on the Company's website at https://ir.chordenergy.com/non-gaap. Cash GPT The Company defines Cash GPT as total GPT expenses less non-cash valuation charges on pipeline imbalances. CashGPT is not a measure of GPT expenses as determined by GAAP. Management believes that the presentation of CashGPT provides useful additional information to investors and analysts to assess the cash costs incurred to market andtransport the Company's commodities from the wellhead to delivery points for sale without regard to the change invalue of its pipeline imbalances, which vary monthly based on commodity prices. The following table presents a reconciliation of the GAAP financial measure of GPT expenses to the non-GAAPfinancial measure of Cash GPT for the periods presented: Three Months Ended September 30,Nine Months Ended September 30,2026 2025 2026 2025 (In thousands)GPT $ 81,587$ 73,052$ 211,370 $ 220,467Pipeline imbalances(7,397) 734 5,970 (988) Cash GPT $ 74,190$ 73,786$ 217,340$ 219,479 Cash G&A The Company defines Cash G&A as total G&A expenses less G&A expenses directly attributable to certain mergerand acquisition costs, non-cash equity-based compensation expenses and other non-cash charges. Cash G&A is not ameasure of G&A expenses as determined by GAAP. Management believes that the presentation of Cash G&Aprovides useful additional information to investors and analysts to assess the Company's operating costs incomparison to peers without regard to the aforementioned charges, which can vary substantially from company tocompany. The following table presents a reconciliation of the GAAP financial measure of G&A expenses to the non-GAAPfinancial measure of Cash G&A for the periods presented: Three Months Ended September 30,Nine Months Ended September 30,2026 2025 2026 2025 (In thousands)General and administrative expenses$ 32,009$ 21,861$ 99,411 $ 92,778 Merger and acquisition costs(1) — (77) — (8,141)Non-cash equity-based compensation expenses(6,634) (6,464) (23,448) (19,461)Other non-cash adjustments 164 1,215 (2,369) 1,408 Cash G&A $ 25,539$ 16,535$ 73,594$ 66,584 ___________________(1)3Q25 and YTD25 primarily include merger and acquisition costs directly attributable to the arrangement withEnerplus. Cash Interest The Company defines Cash Interest as total interest expense plus capitalized interest less amortization of deferredfinancing costs. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes thatthe presentation of Cash Interest provides useful additional information to investors and analysts for assessing theinterest charges incurred on the Company's debt to finance its operating activities and the Company's ability tomaintain compliance with its debt covenants. The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAPfinancial measure of Cash Interest for the periods presented: Three Months Ended September 30,Nine Months Ended September 30,
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2026 2025 2026 2025 (In thousands)Interest expense $ 26,747$ 18,717$ 80,006$ 53,324Capitalized interest 863 1,128 2,695 3,316Amortization of deferred financing costs(1,597) (1,359) (4,717) (3,885) Cash Interest $ 26,013$ 18,486$ 77,984$ 52,755 Adjusted EBITDA and Adjusted Free Cash Flow The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletionand amortization ("DD&A"), merger and acquisition costs, exploration expenses, impairment expenses, loss on debtextinguishment and other similar non-cash or non-recurring charges. The Company defines Adjusted Free Cash Flowas Adjusted EBITDA less Cash Interest, CapEx (excluding capitalized interest and acquisition capital) and cash taxespaid. Adjusted EBITDA and Adjusted Free Cash Flow are not measures of net income or cash flows from operatingactivities as determined by GAAP. Management believes that the presentation of Adjusted EBITDA and Adjusted FreeCash Flow provides useful additional information to investors and analysts for assessing the Company's results ofoperations, financial performance, its ability to generate cash from its business operations without regard to itsfinancing methods or capital structure and the Company's ability to maintain compliance with its debt covenants. The following table presents reconciliations of the GAAP financial measures of net income and net cash provided byoperating activities to the non-GAAP financial measures of Adjusted EBITDA and Adjusted Free Cash Flow for theperiods presented: Three Months Ended September 30,Nine Months Ended September 30,2026 2025 2026 2025 (In thousands)Net income (loss) $ 181,562$ 130,111 $ 815,356$ (39,957)Interest expense, net of capitalized interest26,747 18,717 80,006 53,324Loss on debt extinguishment — — — 3,494Income tax expense 64,081 40,186 211,852 167,566Depreciation, depletion and amortization390,749 374,919 1,184,201 1,101,725 Merger and acquisition costs(1) — 77 — 8,141 Impairment and exploration expenses(2) 2,030 2,034 7,280 545,957(Gain) loss on sale of assets, net 28 365 (311) (4,628)Net (gain) loss on derivative instruments246,002 (20,724) 379,607 (82,674)Realized gain (loss) on commodity price derivativecontracts (48,653) 19,770 (160,278) 33,609Net (gain) loss from investment in equity securities(7,186) 4,646 (31,158) 10,507Distributions from investment in equity securities2,468 2,395 7,350 7,132Non-cash equity-based compensation expenses6,634 6,464 23,448 19,461Other non-cash adjustments 6,843 (1,185) (9,528) (3,145)Adjusted EBITDA 871,305 577,775 2,507,825 1,820,512Cash Interest (26,013) (18,486) (77,984) (52,755) CapEx(3) (381,807) (333,652) (1,143,442)(1,044,680)Cash taxes paid (32,000) (7,000) (120,382) (73,099) Adjusted Free Cash Flow $ 431,485$ 218,637$ 1,166,017$ 649,978 Net cash provided by operating activities$ 781,384$ 558,967$ 2,405,005$ 1,635,670Changes in working capital 45,722 (13,515) (13,385) (999)Interest expense, net of capitalized interest26,747 18,717 80,006 53,324Current income tax expense (benefit)53,719 (17,463) 160,377 60,868 Merger and acquisition costs(1) — 77 — 8,141Exploration expenses 2,022 2,026 7,242 6,630Realized gain (loss) on commodity price derivativecontracts (48,653) 19,770 (160,278) 33,609Distributions from investment in equity securities2,468 2,395 7,350 7,132Settlement of asset retirement obligations9,812 3,228 27,747 21,163Deferred financing costs amortization and other(8,759) 4,758 3,289 (1,881)Other non-cash adjustments 6,843 (1,185) (9,528) (3,145)Adjusted EBITDA 871,305 577,775 2,507,825 1,820,512Cash Interest (26,013) (18,486) (77,984) (52,755)
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CapEx(3) (381,807) (333,652) (1,143,442)(1,044,680) Cash taxes paid(4) (32,000) (7,000) (120,382) (73,099) Adjusted Free Cash Flow $ 431,485$ 218,637$ 1,166,017$ 649,978 ___________________(1)3Q25 and YTD25 primarily include merger and acquisition costs directly attributable to the arrangement withEnerplus.(2)YTD25 includes non-cash goodwill impairment charge of $539.3 million as a result of the decline in theCompany's market capitalization during 2Q25.(3)3Q26, 3Q25, YTD26 and YTD25 include $4.5MM, $11.7MM, $8.2MM, and $15.4MM of reimbursable non-opCapEx, respectively, and exclude capitalized interest costs. 3Q26 and YTD26 also includes $6.0MM ofreimbursable Marcellus CapEx that exceeded expectations.(4)Represents actual cash taxes paid presented on a cash basis and does not include changes in accrued taxamounts included in working capital and deferred taxes within our condensed consolidated financial statements. Adjusted Net Income and Adjusted Diluted Earnings Per Share Adjusted Net Income and Adjusted Diluted Earnings Per Share are supplemental non-GAAP financial measures thatare used by management and external users of the Company's financial statements, such as industry analysts,investors, lenders and rating agencies. The Company defines Adjusted Net Income as net income after adjusting for(1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, non-cash changes in the fair value of the Company's investment in equity securities, impairment, loss on debtextinguishment and other similar non-cash charges (2) merger and acquisition costs and (3) the impact of taxes basedon an estimated tax rate applicable to those adjusting items in the same period. Adjusted Net Income is not a measureof net income as determined by GAAP. The Company calculates earnings per share under the two-class method in accordance with GAAP. The two-classmethod is an earnings allocation formula that computes earnings per share for each class of common stock andparticipating security according to dividends declared (or accumulated) and participation rights in undistributedearnings. Adjusted Diluted Earnings Per Share is calculated as (i) Adjusted Net Income (ii) less distributed andundistributed earnings allocated to participating securities (iii) divided by the weighted average number of dilutedshares outstanding for the periods presented. The following table presents reconciliations of the GAAP financial measure of net income to the non-GAAP financialmeasure of Adjusted Net Income and the GAAP financial measure of diluted earnings per share to the non-GAAPfinancial measure of Adjusted Diluted Earnings Per Share for the periods presented: Three Months Ended September 30,Nine Months Ended September 30,2026 2025 2026 2025 (In thousands)Net income (loss) $ 181,562 $ 130,111 $ 815,356 $ (39,957)Net (gain) loss on derivative instruments246,002 (20,724) 379,607 (82,674)Realized gain (loss) on commodity price derivativecontracts (48,653) 19,770 (160,278) 33,609Net (gain) loss from investment in equity securities(7,186) 4,646 (31,158) 10,507Distributions from investment in equity securities2,468 2,395 7,350 7,132 Impairment(1) 8 5 37 539,323 Merger and acquisition costs(2) — 77 — 8,141(Gain) loss on sale of assets, net 28 365 (311) (4,628)Amortization of deferred financing costs1,597 1,359 4,717 3,885Loss on debt extinguishment — — — 3,494Other non-cash adjustments 6,843 (1,185) (9,528) (3,145) Tax impact(3) (47,062) (1,570) (44,548) 5,572Adjusted Net Income 335,607 135,249 961,244 481,259Less: Distributed and undistributed earnings allocatedto participating securities (2,695) (780) (7,640) (2,004)Adjusted Net Income attributable to commonstockholders $ 332,912$ 134,469$ 953,604$ 479,255 Three Months Ended September 30,Nine Months Ended September 30,2026 2025 2026 2025 Diluted earnings (loss) per share $ 3.32 $ 2.28 $ 14.59 $ (0.70)
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Net (gain) loss on derivative instruments4.49 (0.36) 6.79 (1.45)Realized gain (loss) on commodity price derivativecontracts (0.89) 0.35 (2.87) 0.59Net (gain) loss from investment in equity securities(0.13) 0.08 (0.56) 0.18Distributions from investment in equity securities0.05 0.04 0.13 0.12 Impairment(1) — — — 9.43 Merger and acquisition costs(2) — — — 0.14(Gain) loss on sale of assets, net — 0.01 (0.01) (0.08)Amortization of deferred financing costs0.03 0.02 0.08 0.07Loss on debt extinguishment — — — 0.06Other non-cash adjustments 0.12 (0.02) (0.17) (0.05) Tax impact(3) (0.86) (0.04) (0.78) 0.11Adjusted Diluted Earnings Per Share 6.13 2.36 17.20 8.42Less: Distributed and undistributed earnings allocatedto participating securities (0.05) (0.01) (0.14) (0.04) Adjusted Diluted Earnings Per Share $ 6.08 $ 2.35 $ 17.06 $ 8.38 Diluted weighted average shares outstanding (inthousands) 54,745 57,157 55,881 57,195 Tax rate applicable to adjustment items(3) 23.4 % 23.5 % 23.4 % 23.5 %_____________________(1)YTD25 includes non-cash goodwill impairment charge of $539.3 million as a result of the decline in theCompany's market capitalization during 2Q25.(2)3Q25 and YTD25 primarily include merger and acquisition costs directly attributable to the arrangement withEnerplus.(3)The tax impact is computed by applying an estimated tax rate to the adjustments for certain non-cash and non-recurring items. SOURCE Chord Energy https://ir.chordenergy.com/2026-11-04-Chord-Energy-Reports-Third-Quarter-2026-Financial-and-Operating-Results,-Declares-Base-Dividend,-and-Updates-2026-Outlook