Nasdaq:CHRD
Chord Energy Corp
An independent Canadian upstream energy producer with substantial receivables and a recent decline in profitability to $44.5M net income.
Key Metrics
Investment Thesis
Bull Case
Chord Energy offers exposure to the energy transition via its Canadian upstream assets while maintaining strong operating cash flows of $2.04B that could support future growth or debt reduction if commodity prices remain favorable. The company's substantial gross profit of $3.90B indicates high operational efficiency and potential for margin expansion as market conditions normalize.
Bear Case
The balance sheet shows dangerous liquidity stress with current liabilities at $1.45B while accounts receivable balloon to $1.12B, suggesting severe collection issues or inventory valuation concerns that could impair solvency. The dramatic collapse in net income from over $1B annually to just $44.5M signals deteriorating operational performance that may not be sustainable without a major strategic shift.
About Chord Energy Corp
Chord Energy Corp is a leading independent exploration and production company focused on the upstream oil and gas sector, primarily operating in Canada's Western Canada Sedimentary Basin. The company generates revenue through crude oil and natural gas sales while managing significant working capital dynamics typical of E&P operations.
Analysis
Management Discussion
The company reported a significant contraction in profitability with net profit dropping to $44.5M in 2025 from $848.6M the prior year, despite revenue stabilizing at $4.88B after a peak of $5.25B. Operational cash flow generation remains robust at $2.04B, partially offset by massive capital expenditures and debt servicing reflected in financing cash outflows of -$82.1M.
Industry Overview
The global oil and gas industry is currently navigating a transition period where independent producers must optimize capital discipline while maintaining production levels despite volatile commodity prices. Companies with strong cash flow generation like Chord Energy are better positioned to survive downturns, though high leverage and working capital constraints remain critical challenges in the current macro environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.65B | $3.90B | $5.25B | $4.88B |
| Cost of Revenue | $0 | $0 | $0 | $975.1M |
| Gross Profit | $3.65B | $3.90B | $5.25B | $3.90B |
| Operating Expenses | $2.06B | $2.62B | $4.15B | $3.70B |
| Operating Income | $1.58B | $1.27B | $1.10B | $197.4M |
| G&A | $209.3M | $126.3M | $205.6M | $126.3M |
| Stock-Based Comp | $61.3M | $46.1M | $23.0M | $25.7M |
| D&A | $369.7M | $598.6M | $1.11B | $1.47B |
| Other OpEx | $1.85B | $2.50B | $3.95B | $3.58B |
| Non-Operating Income | $-200.2M | $65.8M | $12.4M | $46.1M |
| Interest Expense | $29.3M | $28.6M | — | — |
| Pre-Tax Income | $1.38B | $1.34B | $1.11B | $243.5M |
| Income Tax | $-46.9M | $315.2M | $263.8M | $199.0M |
| Continuing Ops | $1.43B | $1.02B | $848.6M | $44.5M |
| Discontinued Ops | $425.7M | $0 | $0 | $0 |
| Net Income | $1.86B | $1.02B | $848.6M | $44.5M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.86B | $1.02B | $848.6M | $44.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.48B | $1.42B | $1.58B | $1.54B |
| Cash & Equivalents | $593.2M | $318.0M | $37.0M | $189.5M |
| Accounts Receivable | $781.7M | $943.1M | $1.30B | $1.12B |
| Inventory | $54.4M | $72.6M | $94.3M | $115.7M |
| Other Current Assets | $53.2M | $90.9M | $148.9M | $116.1M |
| Long-Term Assets | $5.15B | $5.50B | $11.45B | $11.54B |
| PP&E (Net) | $4.71B | $5.31B | $10.69B | $11.34B |
| Goodwill | — | — | $530.6M | $0 |
| Operating Leases | $23.9M | $21.3M | $38.0M | $12.7M |
| Other LT Assets | $282.8M | $65.4M | $55.9M | $67.2M |
| Total Assets | $6.63B | $6.93B | $13.03B | $13.07B |
| Current Liabilities | $1.36B | $1.17B | $1.68B | $1.45B |
| Accounts Payable | $29.1M | $34.5M | $68.8M | $41.8M |
| Current Leases | $9.9M | $13.3M | $37.6M | $14.7M |
| Other Current Liab | $954.0M | $599.2M | $829.2M | $657.9M |
| Long-Term Liabilities | $590.0M | $684.1M | $2.65B | $3.54B |
| Long-Term Debt | $394.2M | $395.9M | $842.6M | $1.48B |
| LT Operating Leases | $13.3M | $18.7M | $15.2M | $10.5M |
| Other LT Liab | $182.5M | $269.5M | $1.79B | $2.05B |
| Total Liabilities | $1.95B | $1.85B | $4.33B | $4.99B |
| Shareholders' Equity | $4.68B | $5.08B | $8.70B | $8.08B |
| Paid-In Capital | — | $3.61B | $7.34B | $7.34B |
| Retained Earnings | $1.45B | $1.96B | $2.30B | $2.04B |
| Total L&E | $6.63B | $6.93B | $13.03B | $13.07B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.86B | $1.02B | $848.6M | $44.5M |
| Non-Cash Adjustments | $2.79B | $-780.1M | $1.39B | $1.45B |
| Working Capital Changes | $-2.72B | $1.58B | $-139.8M | $544.5M |
| Cash from Operations | $1.92B | $1.82B | $2.10B | $2.04B |
| Cash from Investing | $-682.6M | $-1.43B | $-1.75B | $-1.81B |
| Share Buybacks | $151.9M | $239.3M | $444.2M | $364.9M |
| Dividends Paid | $654.7M | $500.3M | $529.9M | $317.8M |
| Cash from Financing | $-823.1M | $-664.7M | $-624.5M | $-82.1M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $418.4M | $-275.2M | $-281.0M | $152.6M |
| Beginning Cash | $174.8M | $593.2M | $318.0M | $37.0M |
| Ending Cash | $593.2M | $318.0M | $37.0M | $189.5M |
Frequently Asked Questions
How does Chord Energy Corp make money?
Crude Oil Production and Sales, Natural Gas Exploration and Marketing, Midstream Asset Operations, and Corporate/Other Activities.
What are the main risks for CHRD?
Extreme concentration in Accounts Receivable of $1.12B representing nearly 23% of total assets creating liquidity pressure, sharp year-over-year decline in net income from $848.6M to $44.5M, and heavy capital outflows with investing cash flow of -$1.81B impacting balance sheet stability.
What is CHRD's competitive advantage?
Access to high-quality reserves in the Western Canada Sedimentary Basin with established production infrastructure, significant gross profit margins relative to revenue, and a diversified asset base providing operational resilience.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.