HOUSTON, Nov. 1, 2023
/PRNewswire/ -- Chord Energy Corporation (NASDAQ: CHRD)
("Chord", "Chord Energy" or the "Company") today reported third
quarter 2023 financial and operating results and announced an
increase to its share repurchase authorization.
Operational and Financial Highlights:
- Oil volumes of 101.4 MBopd and total volumes of 176.0 MBoepd
both exceeded the high-end of guidance;
- E&P and other CapEx of $254.2MM was below the midpoint of guidance;
- Net cash provided by operating activities was $399.5MM and net income was $209.1MM;
- Adjusted EBITDA(1) was $469.1MM and Adjusted Free Cash
Flow(1) was $207.4MM;
- Total return of capital was set at $156MM, or 75% of Adjusted
Free Cash Flow;
- Share repurchases totaled $112.3MM (weighted average price of $159.57 per share), including $52.0MM attributable to 3Q23 return of
capital;
- New $750MM share repurchase program (~10% of market
capitalization2);
- Declared a base-plus-variable cash dividend of $2.50 per share of common stock. The dividend
will be payable on November 28, 2023
to shareholders of record as of November 14,
2023;
- Record gas capture rate in 3Q23;
- Released 2022 Sustainability Report highlighting Chord's
commitment to environmental stewardship, social responsibility and
corporate governance. Chord remains committed to delivering
affordable and reliable energy in a sustainable and responsible
manner. The report can be accessed at
www.chordenergy.com/sustainability/
|
(1) Non-GAAP
financial measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures
under United States generally accepted accounting principles
("GAAP").
|
|
(2) Market
capitalization as of October 31, 2023.
|
"Chord's third quarter performance benefited from exceptional
execution and continued strong well performance," said Danny Brown, Chord Energy's President and Chief
Executive Officer. "The Chord team rose to the challenge and placed
45 wells (56% three-mile) online in the third quarter compared to
37 wells (19% three-mile) in the entire first half of the year.
This was an extraordinary achievement and I'm proud of the Chord
team for putting the Company in a strong position as we exit the
year. During the third quarter, we increased share repurchases 68%
sequentially and, subsequent to the third quarter, increased the
authorization to $750MM to take advantage of market opportunities.
Our low-cost inventory, capital efficient development program and
strong balance sheet continue to support sustainable free cash flow
generation. This sustainable free cash generation coupled with a
peer-leading return of capital program supports a compelling
investment opportunity. At Chord, we remain excited about the oil
and gas industry, the benefits we bring to the world, and are
focused on sustainable value creation through responsible
operations."
3Q23 Operational and Financial Update:
The following table presents select 3Q23 operational and
financial data compared to guidance released in August 2023:
|
Metric
|
|
3Q23 Actual
|
|
3Q23 Guidance
|
|
Oil volumes
(MBopd)
|
|
101.4
|
|
95.5 – 98.5
|
|
NGL volumes
(MBblpd)
|
|
36.0
|
|
34.5 – 35.5
|
|
Natural gas volumes
(MMcfpd)
|
|
231.7
|
|
222.0 –
228.0
|
|
Total volumes
(MBoepd)
|
|
176.0
|
|
167.0 –
172.0
|
|
Oil premium to WTI
($/Bbl)
|
|
$0.69
|
|
$(0.40) –
$1.60
|
|
NGL realization (% of
WTI)
|
|
15 %
|
|
10% – 20%
|
|
Residue gas realization
(% of Henry Hub)
|
|
43 %
|
|
40% – 50%
|
|
LOE ($/Boe)
|
|
$10.94
|
|
$10.20 –
$11.00
|
|
Cash GPT
($/Boe)(1)
|
|
$3.16
|
|
$2.80 –
$3.40
|
|
Cash G&A
($MM)(1)
|
|
$13.7
|
|
$14.6 –
$17.6
|
|
Production Taxes (% of
oil, NGL and gas sales)
|
|
8.6 %
|
|
8.6% – 9.0%
|
|
E&P & Other
CapEx ($MM)
|
|
$254.2
|
|
$245 – $275
|
|
Cash Interest
($MM)(1)
|
|
$7.6
|
|
$7.7 – $8.7
|
|
___________________
|
|
(1)
|
Non-GAAP financial
measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures
under GAAP.
|
During the three months ended September
30, 2023, net cash provided by operating activities was
$399.5MM and net income was
$209.1MM ($4.77/diluted share). Adjusted EBITDA was
$469.1MM, Adjusted Free Cash Flow was
$207.4MM and Adjusted Net Income was
$220.2MM ($5.04/diluted share). Adjusted EBITDA, Adjusted
Free Cash Flow and Adjusted Net Income are non-GAAP financial
measures. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures
under GAAP.
Chord had 45 gross (32 net) turn-in-line ("TIL") operated wells
in 3Q23 (56% three-mile).
Updated Outlook:
For the full-year 2023, Chord expects to generate approximately
$1.73B of Adjusted EBITDA and $800MM
of Adjusted Free Cash Flow, with a reinvestment rate of
approximately 50% ($80/Bbl WTI and
$3.00/MMBtu Henry Hub in 4Q23).
Changes to the Company's outlook since August 2023 include:
- Increasing FY23E volume projections to reflect accelerated TIL
timing, strong well performance and slightly higher working
interest;
- E&P and other CapEx expected at the high-end of the $850MM
– $880MM guidance range, reflecting activity acceleration and
slightly higher working interest (~$10MM);
- Adjusting commodity price differentials to reflect current
market prices;
- Increasing LOE per BOE to account for higher workover
expense;
- Lowering Cash G&A to reflect the Company's latest G&A
estimates;
- Chord expects cash taxes to range between 0% – 10% of Adjusted
EBITDA in 4Q23 with NYMEX WTI between $70/Bbl – $90/Bbl.
Chord paid no cash taxes in 3Q23.
The following table presents select operational and financial
guidance for 4Q23 and FY23:
|
Metric
|
|
4Q23
Guidance
(November 1, 2023)
|
|
FY23 Guidance
(November 1, 2023)
|
|
FY23 Guidance
(August 2, 2023)
|
|
Oil volumes
(MBopd)
|
|
102.0 –
105.0
|
|
98.7 – 99.5
|
|
97.0 – 99.0
|
|
NGL volumes
(MBblpd)
|
|
35.5 – 36.5
|
|
35.1 – 35.3
|
|
34.7 – 35.2
|
|
Natural gas volumes
(MMcfpd)
|
|
224.0 –
230.0
|
|
224.0 –
226.0
|
|
222.0 –
225.0
|
|
Total volumes
(MBoepd)
|
|
174.8 –
179.8
|
|
171.1 –
172.5
|
|
168.7 –
171.7
|
|
Oil premium (discount)
to WTI ($/Bbl)
|
|
$(0.85) –
$1.15
|
|
$(0.01) –
$0.51
|
|
$(0.66) –
$1.34
|
|
NGL realization (% of
WTI)
|
|
13% – 23%
|
|
16% – 19%
|
|
13% – 23%
|
|
Residue gas realization
(% of Henry Hub)
|
|
50% – 60%
|
|
56% – 59%
|
|
54% – 64%
|
|
LOE ($/Boe)
|
|
$10.00 –
$10.80
|
|
$10.40 –
$10.60
|
|
$9.95 –
$10.75
|
|
Cash GPT
($/Boe)(1)
|
|
$2.75 –
$3.35
|
|
$2.97 –
$3.13
|
|
$2.75 –
$3.35
|
|
Cash G&A
($MM)(1,2)
|
|
$14.9 –
$17.9
|
|
$64.5 –
$67.5
|
|
$63.0 –
$73.0
|
|
Production Taxes (% of
oil, NGL and gas sales)
|
|
8.4% – 8.8%
|
|
8.3% – 8.5%
|
|
8.2% – 8.6%
|
|
E&P & Other
CapEx ($MM)(3)
|
|
$147 – $177
|
|
$850 – $880
|
|
$850 – $880
|
|
Cash Interest
($MM)(1)
|
|
$7.0 – $8.0
|
|
$29.0 –
$30.0
|
|
$29.5 –
$31.5
|
|
___________________
|
|
(1)
|
Non-GAAP financial
measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures
under GAAP.
|
|
(2)
|
Excludes cash-related
costs attributable to the merger.
|
|
(3)
|
FY23 E&P and other
CapEx excludes $10.9MM related to divested non-operated assets that
will be reimbursed.
|
Select Operational and Financial Data:
The following table presents select operational and financial
data from continuing operations for the periods presented:
|
3Q23
|
|
2Q23
|
|
3Q22
|
|
Production
data:
|
|
|
|
|
|
|
Crude oil
(MBopd)
|
101.4
|
|
96.4
|
|
96.2
|
|
NGLs
(MBblpd)
|
36.0
|
|
36.0
|
|
38.7
|
|
Natural gas
(MMcfpd)
|
231.7
|
|
219.3
|
|
225.5
|
|
Total production
(MBoepd)
|
176.0
|
|
169.0
|
|
172.5
|
|
Percent crude
oil
|
57.6 %
|
|
57.0 %
|
|
55.8 %
|
|
Average sales
prices:
|
|
|
|
|
|
|
Crude oil, without
realized derivatives ($/Bbl)
|
$
83.22
|
|
$
73.89
|
|
$
93.13
|
|
Differential to NYMEX
WTI ($/Bbl)
|
0.69
|
|
0.14
|
|
1.63
|
|
Crude oil, with
realized derivatives ($/Bbl)
|
76.45
|
|
68.03
|
|
73.34
|
|
Crude oil realized
derivatives ($MM)
|
(63.1)
|
|
(51.4)
|
|
(175.2)
|
|
NGL, without realized
derivatives ($/Bbl)
|
12.38
|
|
8.70
|
|
29.82
|
|
NGL, with realized
derivatives ($/Bbl)
|
12.38
|
|
8.70
|
|
29.71
|
|
NGL realized
derivatives ($MM)
|
—
|
|
—
|
|
(0.4)
|
|
Natural gas, without
realized derivatives ($/Mcf)
|
1.11
|
|
0.95
|
|
6.06
|
|
Natural gas, with
realized derivatives ($/Mcf)
|
1.11
|
|
0.96
|
|
4.39
|
|
Natural gas realized
derivatives ($MM)
|
—
|
|
0.1
|
|
(34.7)
|
|
Selected financial
data ($MM):
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Crude oil
revenues
|
$
776.0
|
|
$
647.9
|
|
$
824.3
|
|
NGL
revenues
|
41.0
|
|
28.5
|
|
106.2
|
|
Natural gas
revenues
|
23.6
|
|
19.0
|
|
125.7
|
|
Total oil, NGL and
natural gas revenues
|
$
840.6
|
|
$
695.4
|
|
$
1,056.2
|
|
Cash
flows:
|
|
|
|
|
|
|
Net cash provided by
operating activities:
|
$
399.5
|
|
$
408.2
|
|
$
783.6
|
|
Non-GAAP financial
measures(1):
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
469.1
|
|
$
369.6
|
|
$
564.6
|
|
Adjusted Free Cash
Flow(2)
|
207.4
|
|
105.3
|
|
325.7
|
|
Adjusted net income
attributable to Chord from continuing operations
|
220.2
|
|
158.4
|
|
310.4
|
|
Select operating
expenses:
|
|
|
|
|
|
|
Lease operating
expenses ("LOE")
|
$
177.1
|
|
$
158.6
|
|
$
156.4
|
|
Gathering, processing
and transportation expenses ("GPT")
|
52.3
|
|
43.4
|
|
35.5
|
|
Production
taxes
|
72.5
|
|
58.5
|
|
83.5
|
|
Depreciation,
depletion and amortization
|
160.3
|
|
137.0
|
|
141.0
|
|
Total select operating
expenses
|
$
462.2
|
|
$
397.5
|
|
$
416.4
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic earnings per
share
|
$
5.01
|
|
$
5.19
|
|
$
21.34
|
|
Diluted earnings per
share
|
4.77
|
|
4.96
|
|
20.45
|
|
Adjusted diluted
earnings per share (Non-GAAP)(1)
|
5.04
|
|
3.65
|
|
7.20
|
|
___________________
|
|
(1)
|
Non-GAAP financial
measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures
under GAAP.
|
|
(2)
|
2Q23 Adjusted Free Cash
Flow was reduced by $10.1MM for E&P and other CapEx related to
divested non-operated assets that will be reimbursed.
|
Capital Expenditures:
The following table presents the Company's total capital
expenditures ("CapEx") by category for the period presented:
|
1Q23
|
|
2Q23
|
|
3Q23
|
|
YTD23
|
|
CapEx
($MM):
|
|
|
|
|
|
|
|
|
E&P
|
$
201.8
|
|
$
256.6
|
|
$
254.0
|
|
$
712.4
|
|
Other
|
0.5
|
|
0.4
|
|
0.1
|
|
1.0
|
|
Total E&P and other
CapEx(1)
|
202.3
|
|
257.0
|
|
254.1
|
|
713.4
|
|
Capitalized
interest
|
1.4
|
|
1.3
|
|
0.9
|
|
3.6
|
|
Acquisitions
|
—
|
|
361.6
|
|
—
|
|
361.6
|
|
Total
CapEx
|
$
203.7
|
|
$
619.9
|
|
$
255.0
|
|
$
1,078.6
|
|
___________________
|
|
(1)
|
YTD23 includes $10.9MM
of E&P and other CapEx related to divested non-operated assets
that will be reimbursed.
|
Return of Capital:
Chord declared a base-plus-variable cash dividend of
$2.50 per share of common stock,
including a base dividend of $1.25
per share of common stock and a variable dividend of $1.25 per share of common stock. The dividend
will be payable on November 28, 2023 to shareholders of record
as of November 14, 2023. Details regarding the calculation of
the variable dividend can be found in the Company's most recent
investor presentation located on its website at
https://ir.chordenergy.com/presentations.
In addition, the Company repurchased 703,862 shares of common
stock at a weighted average price of $159.57 per share during the third quarter. Share
repurchases totaled $112.3MM,
including $52.0MM as third quarter
return of capital. During the third quarter, the Company received
total cash proceeds from warrant exercises of $73.4MM, and the Company repurchased $60.3MM in the third quarter and the remaining
$13.1MM in the fourth quarter to
offset shareholder dilution.
Share Repurchase Authorization:
Chord's Board of Directors has authorized a new $750MM share
repurchase program, which replaces the existing $300MM program. As
of September 30, 2023, there was
$114.8MM of capacity remaining under
the previous $300MM program.
Balance Sheet and Liquidity:
On October 31, 2023, the Company
completed its semi-annual borrowing base redetermination and
entered into the Fourth Amendment to Amended and Restated Credit
Agreement. The borrowing base was reaffirmed at $2.5 billion, and the aggregate amount of elected
commitments were maintained at $1.0
billion. The next scheduled redetermination is expected to
occur in or around April 2024.
The following table presents key balance sheet data and
liquidity metrics as of September 30,
2023 (in millions):
|
September 30,
2023
|
|
Revolving credit
facility(1)
|
$
1,000.0
|
|
|
|
Revolver
borrowings
|
$
—
|
|
Senior notes
|
400.0
|
|
Total debt
|
$
400.0
|
|
|
|
Cash and cash
equivalents
|
$
265.0
|
|
Letters of
credit
|
6.4
|
|
Liquidity
|
$
1,258.6
|
|
___________________
|
|
(1)
|
$2.5B borrowing base
and $1.0B of elected commitments.
|
Conference Call Information
Investors, analysts and other interested parties are invited to
listen to the webcast:
|
Date:
|
Thursday, November 2,
2023
|
|
Time:
|
8:00 a.m.
Central
|
|
Live
Webcast:
|
https://app.webinar.net/LvOWwnJwZlP
|
Sell-side analysts wishing to ask a question may use the
following dial-in:
|
Dial-in:
|
888-317-6003
|
|
Intl.
Dial-in:
|
412-317-6061
|
|
Conference
ID:
|
5238861
|
|
Website:
|
www.chordenergy.com
|
A recording of the conference call will be available beginning
at 1:00 p.m. Central on the day of
the call and will be available until Thursday, November 9, 2023 by dialing:
|
Replay
dial-in:
|
877-344-7529
|
|
Intl.
replay:
|
412-317-0088
|
|
Replay
access:
|
9393038
|
The call will also be available for replay for approximately 30
days at https://www.chordenergy.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical facts,
included in this press release that address activities, events or
developments that Chord expects, believes or anticipates will or
may occur in the future, including any statements regarding the
benefits and synergies of the merger, future opportunities for
Chord, future financial performance and condition, guidance and
statements regarding Chord's expectations, beliefs, plans,
objectives, assumptions or future events or performance are
forward-looking statements. The words "anticipate," "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 or other 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 the return of capital plan, production
levels and reinvestment rates, anticipated financial and operating
results and other guidance and the effects, benefits and synergies
of the merger.
These statements are based on certain assumptions made by Chord
based on management's experience and perception of historical
trends, current conditions, anticipated future developments and
other factors believed to be appropriate. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of Chord, which may cause actual
results to differ materially from those implied or expressed by the
forward-looking statements. These include, but are not limited to,
the ultimate results of integrating the operations of Chord, the
effects of the business combination on Chord, including Chord's
future financial condition, results of operations, strategy and
plans, the ability of Chord to realize the anticipated benefits or
synergies of the merger in the timeframe expected or at all,
changes in crude oil, NGL and natural gas prices, war between
Russia and Ukraine and the potential for escalation of
hostilities between Israel and
Hamas and surrounding countries in the Middle East and their effect on commodity
prices, inflation rates and the impact of associated monetary
policy responses, including increased interest rates, developments
in the global economy, the impact of pandemics such as COVID-19,
weather and environmental conditions, the timing of planned capital
expenditures, availability of acquisitions, uncertainties in
estimating proved reserves and forecasting production results,
operational factors affecting the commencement or maintenance of
producing wells, the condition of the capital markets generally, as
well as Chord's ability to access them, the proximity to and
capacity of transportation facilities, the availability of
midstream service providers, uncertainties regarding environmental
regulations or litigation and other legal or regulatory
developments affecting Chord's business and other important factors
that could cause actual results to differ materially from those
projected as described in Chord's reports filed with the U.S.
Securities and Exchange Commission (the "SEC").
Any forward-looking statement speaks only as of the date on
which such statement is made and Chord undertakes no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise, except as
required by applicable law. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance on such statements. Additional
information concerning other risk factors is also contained in
Chord's most recently filed Annual Report on Form 10-K for the year
ended December 31, 2022, subsequent
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
other SEC filings.
About Chord Energy
Chord Energy Corporation is an independent exploration and
production company with quality and sustainable long-lived assets
in the Williston Basin. The Company is uniquely positioned with a
best-in-class balance sheet and is focused on rigorous capital
discipline and generating free cash flow by operating efficiently,
safely and responsibly to develop its unconventional onshore
oil-rich resources in the continental United States. For more information, please
visit the Company's website at www.chordenergy.com.
Comparability of Financial Statements
The results reported for the three and nine months ended
September 30, 2023 reflect the
consolidated results of Chord, while the results reported for the
nine months ended September 30, 2022
reflect the consolidated results of legacy Oasis for the period
from January 1 to June 30, 2022 and
the consolidated results of Chord from July
1 to September 30, 2022, unless otherwise noted.
|
Chord Energy
Corporation
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share
data)
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
264,966
|
|
$
593,151
|
|
Accounts receivable,
net
|
1,031,542
|
|
781,738
|
|
Inventory
|
64,852
|
|
54,411
|
|
Prepaid
expenses
|
20,485
|
|
17,624
|
|
Derivative
instruments
|
26,776
|
|
23,735
|
|
Other current
assets
|
595
|
|
11,853
|
|
Current assets held
for sale
|
10,726
|
|
—
|
|
Total current
assets
|
1,419,942
|
|
1,482,512
|
|
Property, plant and
equipment
|
|
|
|
|
Oil and gas properties
(successful efforts method)
|
6,097,747
|
|
5,120,121
|
|
Other property and
equipment
|
48,605
|
|
72,973
|
|
Less: accumulated
depreciation, depletion and amortization
|
(890,323)
|
|
(481,751)
|
|
Total property, plant
and equipment, net
|
5,256,029
|
|
4,711,343
|
|
Derivative
instruments
|
43,610
|
|
37,965
|
|
Investment in
unconsolidated affiliate
|
102,571
|
|
130,575
|
|
Long-term
inventory
|
22,426
|
|
22,009
|
|
Operating right-of-use
assets
|
24,858
|
|
23,875
|
|
Deferred tax
assets
|
23,548
|
|
200,226
|
|
Other assets
|
19,554
|
|
22,576
|
|
Total
assets
|
$
6,912,538
|
|
$
6,631,081
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
2,603
|
|
$
29,056
|
|
Revenues and
production taxes payable
|
627,202
|
|
607,964
|
|
Accrued
liabilities
|
571,318
|
|
362,454
|
|
Accrued interest
payable
|
8,600
|
|
3,172
|
|
Derivative
instruments
|
114,598
|
|
341,541
|
|
Advances from joint
interest partners
|
2,526
|
|
3,736
|
|
Current operating
lease liabilities
|
13,543
|
|
9,941
|
|
Other current
liabilities
|
42,025
|
|
3,469
|
|
Current liabilities
held for sale
|
13,332
|
|
—
|
|
Total current
liabilities
|
1,395,747
|
|
1,361,333
|
|
Long-term
debt
|
395,475
|
|
394,209
|
|
Asset retirement
obligations
|
130,015
|
|
146,029
|
|
Derivative
instruments
|
7,125
|
|
2,829
|
|
Operating lease
liabilities
|
22,141
|
|
13,266
|
|
Other
liabilities
|
21,021
|
|
33,617
|
|
Total
liabilities
|
1,971,524
|
|
1,951,283
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $0.01
par value: 120,000,000 shares authorized; 44,645,418
shares issued and 41,373,010 shares outstanding at September 30,
2023; and
120,000,000 shares authorized, 43,726,181 shares issued and
41,477,093 shares
outstanding at December 31, 2022
|
448
|
|
438
|
|
Treasury stock, at
cost: 3,272,408 shares at September 30, 2023 and 2,249,088
shares at December 31, 2022
|
(410,272)
|
|
(251,950)
|
|
Additional paid-in
capital
|
3,583,966
|
|
3,485,819
|
|
Retained
earnings
|
1,766,872
|
|
1,445,491
|
|
Total stockholders'
equity
|
4,941,014
|
|
4,679,798
|
|
Total liabilities and
stockholders' equity
|
$
6,912,538
|
|
$
6,631,081
|
|
Chord Energy
Corporation
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share
data)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Oil, NGL and gas
revenues
|
$
840,625
|
|
$ 1,056,146
|
|
$ 2,302,251
|
|
$ 2,088,215
|
|
Purchased oil and gas
sales
|
282,743
|
|
132,697
|
|
629,705
|
|
542,653
|
|
Other services
revenues
|
—
|
|
—
|
|
—
|
|
324
|
|
Total
revenues
|
1,123,368
|
|
1,188,843
|
|
2,931,956
|
|
2,631,192
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
177,115
|
|
156,397
|
|
489,077
|
|
287,318
|
|
Gathering, processing
and transportation expenses
|
52,294
|
|
35,549
|
|
132,706
|
|
99,759
|
|
Purchased oil and gas
expenses
|
281,615
|
|
132,625
|
|
627,433
|
|
546,310
|
|
Production
taxes
|
72,485
|
|
83,535
|
|
191,490
|
|
159,473
|
|
Depreciation, depletion
and amortization
|
160,293
|
|
141,047
|
|
431,131
|
|
227,856
|
|
General and
administrative expenses
|
26,117
|
|
102,226
|
|
100,775
|
|
151,415
|
|
Exploration and
impairment
|
1,611
|
|
910
|
|
33,257
|
|
1,698
|
|
Total operating
expenses
|
771,530
|
|
652,289
|
|
2,005,869
|
|
1,473,829
|
|
Gain on sale of assets,
net
|
899
|
|
755
|
|
3,739
|
|
2,595
|
|
Operating
income
|
352,737
|
|
537,309
|
|
929,826
|
|
1,159,958
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Net gain (loss) on
derivative instruments
|
(85,205)
|
|
337,409
|
|
11,247
|
|
(128,766)
|
|
Net gain from
investment in unconsolidated affiliate
|
13,512
|
|
75,093
|
|
21,421
|
|
38,977
|
|
Interest expense, net
of capitalized interest
|
(7,923)
|
|
(8,645)
|
|
(22,286)
|
|
(22,810)
|
|
Other income
(expense)
|
1,651
|
|
(864)
|
|
9,137
|
|
2,186
|
|
Total other income
(expense), net
|
(77,965)
|
|
402,993
|
|
19,519
|
|
(110,413)
|
|
Income from continuing
operations before income taxes
|
274,772
|
|
940,302
|
|
949,345
|
|
1,049,545
|
|
Income tax (expense)
benefit
|
(65,696)
|
|
1,307
|
|
(227,199)
|
|
3,352
|
|
Net income from
continuing operations
|
209,076
|
|
941,609
|
|
722,146
|
|
1,052,897
|
|
Income (loss) from
discontinued operations attributable
to Chord, net of income tax
|
—
|
|
(59,858)
|
|
—
|
|
425,696
|
|
Net income
attributable to Chord
|
$
209,076
|
|
$
881,751
|
|
$
722,146
|
|
$ 1,478,593
|
|
Earnings attributable
to Chord per share:
|
|
|
|
|
|
|
|
|
Basic from continuing
operations
|
$
5.01
|
|
$
22.79
|
|
$
17.28
|
|
$
39.28
|
|
Basic from discontinued
operations
|
—
|
|
(1.45)
|
|
—
|
|
15.88
|
|
Basic total
|
$
5.01
|
|
$
21.34
|
|
$
17.28
|
|
$
55.16
|
|
Diluted from continuing
operations
|
$
4.77
|
|
$
21.84
|
|
$
16.54
|
|
$
37.02
|
|
Diluted from
discontinued operations
|
—
|
|
(1.39)
|
|
—
|
|
14.97
|
|
Diluted
total
|
$
4.77
|
|
$
20.45
|
|
$
16.54
|
|
$
51.99
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
41,563
|
|
41,318
|
|
41,670
|
|
26,806
|
|
Diluted
|
43,662
|
|
43,107
|
|
43,527
|
|
28,438
|
|
Chord Energy
Corporation
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income including
non-controlling interests
|
$
722,146
|
|
$
1,480,904
|
|
Adjustments to
reconcile net income including non-controlling interests to net
cash
provided by operating activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
431,131
|
|
227,856
|
|
Gain on sale of
assets
|
(3,739)
|
|
(521,495)
|
|
Impairment
|
28,964
|
|
1,073
|
|
Deferred income
taxes
|
176,678
|
|
66,668
|
|
Net (gain) loss on
derivative instruments
|
(11,247)
|
|
128,766
|
|
Net gain from
investment in unconsolidated affiliate
|
(21,421)
|
|
(38,977)
|
|
Equity-based
compensation expenses
|
37,260
|
|
40,351
|
|
Deferred financing
costs amortization and other
|
1,072
|
|
1,241
|
|
Working capital and
other changes:
|
|
|
|
|
Change in accounts
receivable, net
|
(258,175)
|
|
(13,007)
|
|
Change in
inventory
|
(4,945)
|
|
2,199
|
|
Change in prepaid
expenses
|
430
|
|
7,708
|
|
Change in accounts
payable, interest payable and accrued liabilities
|
135,880
|
|
57,581
|
|
Change in other assets
and liabilities, net
|
42,483
|
|
4,766
|
|
Net cash provided by
operating activities
|
1,276,517
|
|
1,445,634
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(642,584)
|
|
(303,140)
|
|
Acquisitions, net of
cash acquired
|
(361,609)
|
|
(148,363)
|
|
Proceeds from
divestitures, net of cash divested
|
46,002
|
|
155,728
|
|
Costs related to
divestitures
|
—
|
|
(11,368)
|
|
Derivative
settlements
|
(203,238)
|
|
(487,394)
|
|
Proceeds from sale of
investment in unconsolidated affiliate
|
40,612
|
|
428,231
|
|
Distributions from
investment in unconsolidated affiliate
|
8,499
|
|
40,607
|
|
Net cash used in
investing activities
|
(1,112,318)
|
|
(325,699)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
revolving credit facilities
|
135,000
|
|
1,035,000
|
|
Principal payments on
revolving credit facilities
|
(135,000)
|
|
(1,020,000)
|
|
Cash paid to settle
Whiting debt
|
—
|
|
(2,154)
|
|
Deferred financing
costs
|
—
|
|
(3,938)
|
|
Repurchases of common
stock
|
(157,122)
|
|
(124,845)
|
|
Tax withholding on
vesting of equity-based awards
|
(13,823)
|
|
(36,768)
|
|
Dividends
paid
|
(394,652)
|
|
(500,106)
|
|
Payments on finance
lease liabilities
|
(1,398)
|
|
(570)
|
|
Proceeds from warrants
exercised
|
74,611
|
|
17,520
|
|
Net cash used in
financing activities
|
(492,384)
|
|
(635,861)
|
|
Increase (decrease) in
cash and cash equivalents
|
(328,185)
|
|
484,074
|
|
Cash and cash
equivalents:
|
|
|
|
|
Beginning of
period
|
593,151
|
|
174,783
|
|
End of
period
|
$
264,966
|
|
$
658,857
|
|
Supplemental
non-cash transactions:
|
|
|
|
|
Change in accrued
capital expenditures
|
$
77,091
|
|
$
41,348
|
|
Change in asset
retirement obligations
|
1,057
|
|
412
|
|
Non-cash consideration
exchanged in Merger
|
—
|
|
2,585,211
|
|
Investment in
unconsolidated affiliate
|
—
|
|
568,312
|
|
Dividends
payable
|
36,044
|
|
27,256
|
Non-GAAP Financial Measures
The following are non-GAAP financial measures not prepared in
accordance with GAAP that are used by management and external users
of the Company's financial statements, such as industry analysts,
investors, lenders and rating agencies. The Company believes that
the foregoing are useful supplemental measures 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, the Company provides
forward-looking forecasts of these measures; however, the Company
is unable to provide a quantitative 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 such
forward-looking GAAP measures. The reconciling items in future
periods could be significant. To see how the Company reconciles its
historical presentations of these non-GAAP financial measures to
the most directly comparable GAAP measures, please visit the
Investors—Documents & Disclosures—Non-GAAP Reconciliation 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 and non-cash
mark-to-market adjustments on transportation contracts accounted
for as derivative instruments. Cash GPT is not a measure of GPT
expenses as determined by GAAP. Management believes that the
presentation of Cash GPT provides useful additional information to
investors and analysts to assess the cash costs incurred to market
and transport the Company's commodities from the wellhead to
delivery points for sale without regard to the change in value of
its pipeline imbalances, which vary monthly based on commodity
prices, and without regard to the non-cash mark-to-market
adjustments on transportation contracts classified as derivative
instruments.
The following table presents a reconciliation of the GAAP
financial measure of GPT expenses to the non-GAAP financial measure
of Cash GPT for the periods presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
GPT
|
$
52,294
|
|
$
35,549
|
|
$
132,706
|
|
$
99,759
|
|
Pipeline
imbalances
|
234
|
|
(4,582)
|
|
(7,902)
|
|
(3,439)
|
|
(Gain) loss on
derivative transportation contracts
|
(1,432)
|
|
6,939
|
|
16,847
|
|
6,939
|
|
Cash
GPT
|
$
51,096
|
|
$
37,906
|
|
$
141,651
|
|
$
103,259
|
Cash G&A
The Company defines Cash G&A as total G&A expenses less
G&A expenses directly attributable to the merger of equals with
Whiting, non-cash equity-based compensation expenses, G&A
expenses attributable to shared service allocations and other
non-cash charges. Cash G&A is not a measure of G&A expenses
as determined by GAAP. Management believes that the presentation of
Cash G&A provides useful additional information to investors
and analysts to assess the Company's operating costs in comparison
to peers without regard to the aforementioned charges, which can
vary substantially from company to company.
The following table presents a reconciliation of the GAAP
financial measure of G&A expenses to the non-GAAP financial
measure of Cash G&A for the periods presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
General and
administrative expenses
|
$
26,117
|
|
$
102,226
|
|
$
100,775
|
|
$
151,415
|
|
Merger
costs(1)
|
—
|
|
(73,443)
|
|
(9,701)
|
|
(82,817)
|
|
Equity-based
compensation expenses
|
(10,082)
|
|
(12,844)
|
|
(37,260)
|
|
(22,460)
|
|
G&A expenses
attributable to shared services
|
—
|
|
—
|
|
—
|
|
(1,624)
|
|
Other non-cash
adjustments
|
(2,292)
|
|
369
|
|
(4,165)
|
|
(1,884)
|
|
Cash
G&A
|
$
13,743
|
|
$
16,308
|
|
$
49,649
|
|
$
42,630
|
|
___________________
|
|
(1)
|
Includes costs directly
attributable to the merger of equals with Whiting for the nine
months ended September 30, 2023 and the three and nine months ended
September 30, 2022.
|
Cash Interest
The Company defines Cash Interest as interest expense plus
capitalized interest less amortization and write-offs of deferred
financing costs. Cash Interest is not a measure of interest expense
as determined by GAAP. Management believes that the presentation of
Cash Interest provides useful additional information to investors
and analysts for assessing the interest charges incurred on the
Company's debt to finance its operating activities and the
Company's ability to maintain compliance with its debt
covenants.
The following table presents a reconciliation of the GAAP
financial measure of interest expense to the non-GAAP financial
measure of Cash Interest for the periods presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Interest
expense
|
$
7,923
|
|
$
8,645
|
|
$
22,286
|
|
$
22,810
|
|
Capitalized
interest
|
857
|
|
1,323
|
|
3,601
|
|
2,803
|
|
Amortization of
deferred financing costs
|
(1,224)
|
|
(1,097)
|
|
(3,633)
|
|
(2,816)
|
|
Cash
Interest
|
$
7,556
|
|
$
8,871
|
|
$
22,254
|
|
$
22,797
|
Adjusted EBITDA and Adjusted Free Cash
Flow
The Company defines Adjusted EBITDA as earnings before interest
expense, income taxes, depreciation, depletion and amortization
("DD&A"), merger costs, exploration expenses and impairment
expenses and other similar non-cash or non-recurring charges. The
Company defines Adjusted EBITDA from continuing operations as
Adjusted EBITDA less Adjusted EBITDA from discontinued operations.
The Company defines Adjusted Free Cash Flow as Adjusted EBITDA from
continuing operations less Cash Interest and E&P and other
capital expenditures (excluding capitalized interest and
acquisition capital).
Adjusted EBITDA and Adjusted Free Cash Flow are not measures of
net income or cash flows from operating activities as determined by
GAAP. Management believes that the presentation of Adjusted EBITDA
and Adjusted Free Cash Flow provides useful additional information
to investors and analysts for assessing the Company's results of
operations, financial performance, ability to generate cash from
its business operations without regard to its financing 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 including non-controlling
interests and net cash provided by operating activities to the
non-GAAP financial measures of Adjusted EBITDA and Adjusted Free
Cash Flow for the periods presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
thousands)
|
|
Net income including
non-controlling interests
|
$
209,076
|
|
$
881,751
|
|
$
722,146
|
|
$ 1,480,904
|
|
Interest expense, net
of capitalized interest
|
7,923
|
|
8,645
|
|
22,286
|
|
26,495
|
|
Income tax
expense
|
65,696
|
|
58,551
|
|
227,199
|
|
97,728
|
|
Depreciation,
depletion and amortization
|
160,293
|
|
141,047
|
|
431,131
|
|
227,856
|
|
Merger
costs(1)
|
—
|
|
73,443
|
|
9,701
|
|
82,817
|
|
Exploration and
impairment expenses
|
1,611
|
|
910
|
|
33,257
|
|
1,698
|
|
Gain on sale of
assets
|
(899)
|
|
(755)
|
|
(3,739)
|
|
(521,495)
|
|
Net (gain) loss on
derivative instruments
|
85,205
|
|
(337,409)
|
|
(11,247)
|
|
128,766
|
|
Realized loss on
derivative instruments
|
(63,131)
|
|
(210,228)
|
|
(206,229)
|
|
(431,332)
|
|
Net gain from
investment in unconsolidated affiliate
|
(13,512)
|
|
(75,093)
|
|
(21,421)
|
|
(38,977)
|
|
Distributions from
investment in unconsolidated affiliate
|
2,515
|
|
13,746
|
|
8,499
|
|
40,607
|
|
Equity-based
compensation expenses
|
10,082
|
|
12,844
|
|
37,260
|
|
22,507
|
|
Other non-cash
adjustments
|
4,246
|
|
(2,842)
|
|
(1,813)
|
|
(2,570)
|
|
Adjusted
EBITDA
|
469,105
|
|
564,610
|
|
1,247,030
|
|
1,115,004
|
|
Adjusted EBITDA from
discontinued operations
|
—
|
|
—
|
|
—
|
|
(12,296)
|
|
Adjusted EBITDA from
continuing operations
|
469,105
|
|
564,610
|
|
1,247,030
|
|
1,102,708
|
|
Cash
Interest
|
(7,556)
|
|
(8,871)
|
|
(22,254)
|
|
(22,797)
|
|
E&P and other
capital expenditures
|
(254,183)
|
|
(230,069)
|
|
(713,491)
|
|
(338,997)
|
|
Adjusted Free Cash
Flow
|
$
207,366
|
|
$
325,670
|
|
$
511,285
|
|
$
740,914
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
399,470
|
|
$
783,643
|
|
$ 1,276,517
|
|
$ 1,445,634
|
|
Changes in working
capital
|
86,704
|
|
(77,718)
|
|
84,328
|
|
(59,245)
|
|
Interest expense, net
of capitalized interest
|
7,923
|
|
8,645
|
|
22,286
|
|
26,495
|
|
Current income tax
(benefit) expense
|
34,874
|
|
(8,125)
|
|
50,521
|
|
31,059
|
|
Merger
costs(1)
|
—
|
|
55,600
|
|
9,701
|
|
64,973
|
|
Exploration
expenses
|
1,611
|
|
(163)
|
|
4,292
|
|
625
|
|
Realized loss on
derivative instruments
|
(63,131)
|
|
(210,228)
|
|
(206,229)
|
|
(431,332)
|
|
Distributions from
investment in unconsolidated affiliate
|
2,515
|
|
13,746
|
|
8,499
|
|
40,607
|
|
Deferred financing
costs amortization and other
|
(5,107)
|
|
2,052
|
|
(1,072)
|
|
(1,242)
|
|
Other non-cash
adjustments
|
4,246
|
|
(2,842)
|
|
(1,813)
|
|
(2,570)
|
|
Adjusted
EBITDA
|
469,105
|
|
564,610
|
|
1,247,030
|
|
1,115,004
|
|
Adjusted EBITDA from
discontinued operations
|
—
|
|
—
|
|
—
|
|
(12,296)
|
|
Adjusted EBITDA from
continuing operations
|
469,105
|
|
564,610
|
|
1,247,030
|
|
1,102,708
|
|
Cash
Interest
|
(7,556)
|
|
(8,871)
|
|
(22,254)
|
|
(22,797)
|
|
E&P and other
capital expenditures(2)
|
(254,183)
|
|
(230,069)
|
|
(713,491)
|
|
(338,997)
|
|
Adjusted Free Cash
Flow
|
$
207,366
|
|
$
325,670
|
|
$
511,285
|
|
$
740,914
|
|
___________________
|
|
(1)
|
Includes costs directly
attributable to the merger of equals with Whiting for the nine
months ended September 30, 2023 and the three and nine months ended
September 30, 2022.
|
|
(2)
|
The nine months ended
September 30, 2023 includes $10.9MM of E&P and other CapEx
related to divested non-operated assets that will be
reimbursed.
|
Adjusted Net Income Attributable to Chord and
Adjusted Diluted Earnings Attributable to Chord Per
Share
Adjusted Net Income Attributable to Chord and Adjusted Diluted
Earnings Attributable to Chord Per Share are supplemental non-GAAP
financial measures that are 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 Attributable to Chord as net income
attributable to Chord 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 an unconsolidated affiliate,
impairment and other similar non-cash charges, (2) merger costs and
(3) the impact of taxes based on the Company's effective tax rate
applicable to those adjusting items in the same period. Adjusted
Net Income Attributable to Chord is not a measure of net income as
determined by GAAP.
The Company calculates earnings per share under the two-class
method in accordance with GAAP. The two-class method is an earnings
allocation formula that computes earnings per share for each class
of common stock and participating security according to dividends
declared (or accumulated) and participation rights in undistributed
earnings. Adjusted Diluted Earnings Attributable to Chord Per Share
is calculated as (i) Adjusted Net Income Attributable to Chord (ii)
less distributed and undistributed earnings allocated to
participating securities (iii) divided by the weighted average
number of diluted shares outstanding for the periods presented.
The following table presents reconciliations of the GAAP
financial measure of net income attributable to Chord to the
non-GAAP financial measure of Adjusted Net Income Attributable to
Chord and the GAAP financial measure of diluted earnings
attributable to Chord per share to the non-GAAP financial measure
of Adjusted Diluted Earnings Attributable to Chord Per Share for
the periods presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
thousands)
|
|
Net income
attributable to Chord
|
$ 209,076
|
|
$ 881,751
|
|
$ 722,146
|
|
$ 1,478,593
|
|
Net (gain) loss on
derivative instruments
|
85,205
|
|
(337,409)
|
|
(11,247)
|
|
128,766
|
|
Realized loss on
derivative instruments
|
(63,131)
|
|
(210,228)
|
|
(206,229)
|
|
(431,332)
|
|
Net gain from
investment in unconsolidated affiliate
|
(13,512)
|
|
(75,093)
|
|
(21,421)
|
|
(38,977)
|
|
Distributions from
investment in unconsolidated affiliate
|
2,515
|
|
13,746
|
|
8,499
|
|
40,607
|
|
Impairment
|
—
|
|
1,073
|
|
28,964
|
|
1,073
|
|
Merger
costs(1)
|
—
|
|
73,443
|
|
9,701
|
|
82,817
|
|
Gain on sale of
assets
|
(899)
|
|
(755)
|
|
(3,739)
|
|
(521,495)
|
|
Amortization of
deferred financing costs
|
1,224
|
|
1,097
|
|
3,633
|
|
2,986
|
|
Other non-cash
adjustments
|
4,246
|
|
(2,842)
|
|
(1,813)
|
|
(2,570)
|
|
Tax
impact(2)
|
(3,742)
|
|
131,708
|
|
46,270
|
|
180,502
|
|
Other tax
adjustments(3)
|
—
|
|
(166,041)
|
|
—
|
|
(275,358)
|
|
Adjusted net income
attributable to Chord
|
220,982
|
|
310,450
|
|
574,764
|
|
645,612
|
|
Adjusted net income
attributable to Chord from
discontinued operations
|
—
|
|
—
|
|
—
|
|
(6,142)
|
|
Distributed and
undistributed earnings allocated to
participating securities
|
(817)
|
|
(43)
|
|
(1,674)
|
|
(24)
|
|
Adjusted net income
from continuing operations
attributable to common stockholders
|
$ 220,165
|
|
$ 310,407
|
|
$ 573,090
|
|
$ 639,446
|
|
|
|
|
|
|
|
|
|
Diluted earnings
attributable to Chord per share
|
4.79
|
|
$
20.45
|
|
16.59
|
|
$
51.99
|
|
Net (gain) loss on
derivative instruments
|
1.95
|
|
(7.83)
|
|
(0.26)
|
|
4.53
|
|
Realized loss on
derivative instruments
|
(1.45)
|
|
(4.88)
|
|
(4.74)
|
|
(15.17)
|
|
Net gain from
investment in unconsolidated affiliate
|
(0.31)
|
|
(1.74)
|
|
(0.49)
|
|
(1.37)
|
|
Distributions from
investment in unconsolidated affiliate
|
0.06
|
|
0.32
|
|
0.20
|
|
1.43
|
|
Impairment
|
—
|
|
0.02
|
|
0.67
|
|
0.04
|
|
Merger
costs(1)
|
—
|
|
1.70
|
|
0.22
|
|
2.91
|
|
Gain on sale of
assets
|
(0.02)
|
|
(0.02)
|
|
(0.09)
|
|
(18.34)
|
|
Amortization of
deferred financing costs
|
0.03
|
|
0.03
|
|
0.08
|
|
0.11
|
|
Other non-cash
adjustments
|
0.10
|
|
(0.06)
|
|
(0.04)
|
|
(0.09)
|
|
Tax
impact(2)
|
(0.09)
|
|
3.06
|
|
1.06
|
|
6.35
|
|
Other tax
adjustments(3)
|
—
|
|
(3.85)
|
|
—
|
|
(9.68)
|
|
Adjusted Diluted
Earnings Attributable to Chord Per
Share
|
5.06
|
|
7.20
|
|
13.20
|
|
22.71
|
|
Less: Adjusted Diluted
Earnings From Discontinued
Operations Attributable to Chord Per Share
|
—
|
|
—
|
|
—
|
|
(0.22)
|
|
Less: Distributed and
undistributed earnings allocated to
participating securities
|
(0.02)
|
|
—
|
|
(0.04)
|
|
—
|
|
Adjusted Diluted
Earnings From Continuing Operations
Attributable to Chord Per Share
|
$
5.04
|
|
$
7.20
|
|
$
13.16
|
|
$
22.49
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
43,662
|
|
43,107
|
|
43,527
|
|
28,438
|
|
|
|
|
|
|
|
|
|
Effective tax rate
applicable to adjustment items(2)
|
23.9 %
|
|
24.5 %
|
|
23.9 %
|
|
24.5 %
|
|
_____________________
|
|
(1)
|
Includes costs directly
attributable to the merger of equals with Whiting for the nine
months ended September 30, 2023 and the three and nine months ended
September 30, 2022.
|
|
(2)
|
The tax impact is
computed utilizing the Company's effective tax rate applicable to
the adjustments for certain non-cash and non-recurring
items.
|
|
(3)
|
Other tax adjustments
relate to the change in the deferred tax asset valuation allowance,
which was adjusted to reflect the tax impact of the other
adjustments using an assumed effective tax rate that excludes its
impact.
|
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SOURCE Chord Energy Corp.
