Chord Energy Lifts 2026 Free Cash Flow Outlook To $1.6 Billion, About $200 Million Above August
The Williston Basin producer also raised its oil volume guidance about 1% and set $225 million in annual run-rate savings.
Chord Energy, an independent oil and gas company focused on the Williston Basin, now expects about $1.6 billion of adjusted free cash flow in 2026, roughly $200 million more than it projected in August. The Wednesday earnings release also lifted full-year oil volume guidance about 1% to 162.5 thousand barrels a day, after third-quarter output beat the top of the range.
Volumes above the top of guidance
Third-quarter oil volumes averaged 165.5 thousand barrels a day, above the 161.5 to 164.5 guidance range. Natural gas and NGL volumes also topped guidance. Full-year oil guidance rises from 161.0 thousand barrels a day, and the company expects about $3.4 billion of adjusted EBITDA for 2026.
Adjusted free cash flow for the quarter was $431.5 million, up from $218.6 million a year earlier and $413.4 million in the second quarter. Net income was $181.6 million, or $3.29 per diluted share, down from $525.2 million in the second quarter. Adjusted net income was $332.9 million, or $6.08 per share.
The company's net loss on derivative instruments was $246.0 million in the quarter, versus a $20.7 million gain a year earlier. Oil sold for $85.80 a barrel before derivatives, down from $93.99 in the second quarter.
Cost savings and a bigger budget
Chord said annual run-rate savings are now $225 million, more than double the amount expected in its initial 2025 update. New third-party marketing agreements are expected to deliver $35 million to $55 million of annualized adjusted free cash flow savings over time.
The full-year capital spending midpoint rises to $1.46 billion from $1.4 billion. The full-year range includes about $20 million of added midstream spending versus August, chiefly water gathering and disposal projects. Fourth-quarter spending guidance, with a $330 million midpoint, reflects higher midstream spending and more operated and non-operated activity.
Chord has turned 47 four-mile wells in line, and 70% of its lateral footage was drilled as four-mile wells as of September 30.
Buybacks, dividend and the Marcellus sale
Chord bought back $205 million of stock at an average $135.74 a share in the third quarter, and another $78 million at $146.84 through October 30. It declared a $1.30 base dividend, payable December 7 to holders of record on November 19.
The company is selling its non-operated Marcellus assets for $550 million in gross consideration, including a $55 million deposit already received. Closing is expected in the fourth quarter. Cash stood at $804.7 million on September 30, with nothing drawn on its $2.0 billion revolver and $1.5 billion of senior notes outstanding.
CEO Michael Lou said the efficiency push leaves Chord "in a strong position to enhance economics and benefit from higher prices."
Management hosts its earnings call Thursday at 10:00 a.m. Central.
Sources
- 8-K Filing — Chord Energy Corp (CHRD) — SEC EDGAR
- Exhibit chrd-q32026earningsrelease.htm — Chord Energy Corp 8-K exhibit — SEC EDGAR
- Chord Energy (NASDAQ:CHRD) reports Q3 2026 earnings — Yahoo Finance
- Chord Energy (CHRD) Stock Fair Value Edges Higher After Marcellus Sale And Analyst Revisions — Yahoo Finance
