chrd-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-34776


Chord Energy Corporation (Exact name of registrant as specified in its charter)



Delaware						80-0554627
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1001 Fannin Street, Suite 1500
Houston, Texas						77002
(Address of principal executive offices)						(Zip Code)


(281) 404-9500 (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

CHRD

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ý No ¨

Number of shares of the registrant’s common stock outstanding at May 1, 2025: 57,754,754 shares.

Table of Contents

TABLE OF CONTENTS


			Page
Glossary of Terms			1
PART I — FINANCIAL INFORMATION			3
Item 1. — Financial Statements (Unaudited)			4
Condensed Consolidated Balance Sheets at March 31, 2025 and December 31, 2024			4
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024			6
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2025 and 2024			7
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024			8
Notes to Condensed Consolidated Financial Statements			10



1. Organization and Summary of Significant Accounting Policies			10

2. Revenue Recognition			11
3. Inventory			12
4. Additional Balance Sheet Information			12
5. Fair Value Measurements			12
6. Derivative Instruments			14
7. Property, Plant and Equipment			16
8. Acquisitions			17

9. Investment in Unconsolidated Affiliate			19
10. Long-Term Debt			19
11. Asset Retirement Obligations			20
12. Income Taxes			20
13. Equity-Based Compensation			20
14. Stockholders’ Equity			22
15. Earnings Per Share			23
16. Commitments and Contingencies			23

17. Leases			23

Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of Operations			24
Overview and Recent Developments			27
Results of Operations			28
Liquidity and Capital Resources			34
Fair Value of Financial Instruments			37
Critical Accounting Policies and Estimates			37
Item 3. — Quantitative and Qualitative Disclosures About Market Risk			38
Item 4. — Controls and Procedures			39
PART II — OTHER INFORMATION			40
Item 1. — Legal Proceedings			40
Item 1A. — Risk Factors			40
Item 2. — Unregistered Sales of Equity Securities and Use of Proceeds			41

Item 5.— Other Information			41
Item 6. — Exhibits			42
SIGNATURES			43

GLOSSARY OF TERMS

The terms defined in this section are used throughout this Quarterly Report on Form 10-Q:

“ABR.” Alternate base rate.

“ARO.” Asset retirement obligations.

“ASC.” Accounting Standards Codification.

“ASU.” Accounting Standards Update.

“Basin.” A large natural depression on the earth’s surface in which sediments generally brought by water accumulate.

“Bbl.” One stock tank barrel, of 42 U.S. gallons liquid volume, used herein in reference to crude oil, condensate, natural gas liquids or fresh water.

“Boe.” Barrels of oil equivalent, with 6,000 cubic feet of natural gas being equivalent to one barrel of crude oil.

“Boepd.” Barrels of oil equivalent per day.

“Bopd.” Barrels of oil per day.

“British thermal unit.” The heat required to raise the temperature of a one-pound mass of water from 58.5 to 59.5 degrees Fahrenheit.

“Completion.” The process of treating a drilled well followed by the installation of permanent equipment for the production of natural gas or oil, or in the case of a dry hole, the reporting of abandonment to the appropriate agency.

“DD&A.” Depreciation, depletion and amortization.

“Dry hole.” A well found to be incapable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of such production would exceed production expenses and taxes.

“Economically producible.” A resource that generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation.

“ESG.” Environmental, social and governance.

“FASB.” Financial Accounting Standards Board.

“Field.” An area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations.

“Formation.” A layer of rock which has distinct characteristics that differ from nearby rock.

“G&A.” General and administrative.

“GAAP.” Generally accepted accounting principles in the United States.

“GPT.” Gathering, processing and transportation.

“MBbl.” One thousand barrels of crude oil, condensate, natural gas liquids or fresh water.

“MBoe.” One thousand barrels of oil equivalent.

“Mcf.” One thousand cubic feet of natural gas.

“MMBtu.” One million British thermal units.

“MMcf.” One million cubic feet of natural gas.

“Net acres.” The percentage of total acres an owner has out of a particular number of acres, or a specified tract. An owner who has 50% interest in 100 acres owns 50 net acres.

“NGL.” Natural gas liquids.

“NYMEX.” The New York Mercantile Exchange.

“NYMEX WTI.” The New York Mercantile Exchange West Texas Intermediate crude oil price index.

“OPEC+.” The Organization of Petroleum Exporting Countries and other oil exporting nations.

“Plug.” A down-hole packer assembly used in a well to seal off or isolate a particular formation for testing, acidizing, cementing, etc.; also a type of plug used to seal off a well temporarily while the wellhead is removed.

Table of Contents

“Productive well.” A well that is found to be capable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of the production would exceed production expenses and taxes.

“Proved reserves.” Those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible — from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations — prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. The area of the reservoir considered as proved includes (i) the area identified by drilling and limited by fluid contacts, if any, and (ii) adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible crude oil or gas on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons, as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty. Where direct observation from well penetrations has defined a highest known oil, elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty. Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when (i) successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and (ii) the project has been approved for development by all necessary parties and entities, including governmental entities. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.

“Reasonable certainty.” If deterministic methods are used, reasonable certainty means a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90 percent probability that the quantities actually recovered will equal or exceed the estimate. A high degree of confidence exists if the quantity is much more likely to be achieved than not, and, as changes due to increased availability of geoscience (geological, geophysical and geochemical) engineering, and economic data are made to estimated ultimate recovery with time, reasonably certain estimated ultimate recovery is much more likely to increase or remain constant than to decrease.

“Reserves.” Estimated remaining quantities of crude oil and natural gas and related substances anticipated to be economically producible as of a given date by application of development prospects to known accumulations.

“Reservoir.” A porous and permeable underground formation containing a natural accumulation of producible natural gas and/or crude oil that is confined by impermeable rock or water barriers and is separate from other reservoirs.

“SEC.” The U.S. Securities and Exchange Commission.

“SOFR.” Secured overnight financing rate as administered by the Federal Reserve Bank of New York.

“Unit.” The joining of all or substantially all interests in a reservoir or field, rather than a single tract, to provide for development and operation without regard to separate property interests. Also, the area covered by a unitization agreement.

“Wellbore.” The hole drilled by the bit that is equipped for crude oil or gas production on a completed well. Also called well or borehole.

“Workover.” The repair or stimulation of an existing productive well for the purpose of restoring, prolonging or enhancing the production of hydrocarbons.

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PART I — FINANCIAL INFORMATION

Item 1. — Financial Statements (Unaudited)

Chord Energy Corporation

Condensed Consolidated Balance Sheets (Unaudited)


	March 31, 2025		December 31, 2024

	(In thousands, except share data)
ASSETS
Current assets
Cash and cash equivalents	$	35,754	$	36,950
Accounts receivable, net	1,318,383		1,298,973
Inventory	103,798		94,299
Prepaid expenses	24,453		30,875
Derivative instruments	32,754		35,944
Other current assets	82,146		82,077

Total current assets	1,597,288		1,579,118
Property, plant and equipment
Oil and gas properties (successful efforts method)	13,142,962		12,770,786
Other property and equipment	58,932		58,158
Less: accumulated depreciation, depletion and amortization	(2,487,186)		(2,142,775)
Total property, plant and equipment, net	10,714,708		10,686,169
Derivative instruments	4,900		5,629
Investment in unconsolidated affiliate	134,942		142,201
Long-term inventory	26,365		25,973
Operating right-of-use assets	28,185		38,004

Goodwill	530,616		530,616
Other assets	21,604		24,297
Total assets	$	13,058,608	$	13,032,007

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	89,924	$	68,751
Revenues and production taxes payable	788,609		752,742
Accrued liabilities	775,858		732,296

Accrued interest payable	4,128		4,693
Derivative instruments	16,279		1,230
Advances from joint interest partners	2,730		2,434
Current operating lease liabilities	32,003		37,629
Other current liabilities	93,668		84,203

Total current liabilities	1,803,199		1,683,978
Long-term debt	798,824		842,600
Deferred tax liabilities	1,526,207		1,496,442
Asset retirement obligations	292,405		282,369
Derivative instruments	3,300		1,016
Operating lease liabilities	10,558		15,190
Other liabilities	5,451		8,150
Total liabilities	4,439,944		4,329,745

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	March 31, 2025	December 31, 2024

	(In thousands, except share data)
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, $0.01 par value: 240,000,000 shares authorized, 67,088,756 shares issued and 58,197,374 shares outstanding at March 31, 2025; and 240,000,000 shares authorized, 66,967,779 shares issued and 60,070,893 shares outstanding at December 31, 2024	674	673
Treasury stock, at cost: 8,891,382 shares at March 31, 2025 and 6,896,886 shares at December 31, 2024	(1,154,684)

SEC Form 10-Q filed by Chord Energy Corporation