stockrowWhat it does
Chord Energy is an independent oil and gas exploration and production company. It acquires acreage, drills and operates wells, and sells crude oil, natural gas liquids (NGL) and natural gas. Its operations are concentrated in the Williston Basin, where it targets the Middle Bakken and Three Forks formations. It also has limited interests in Marcellus Shale wells operated by other companies and expects a sale of non-core Marcellus assets to close later in 2026.
The company sells its production mainly to refiners, marketers and other purchasers with access to pipeline and rail facilities. It also buys and resells oil and gas in marketing transactions, including to manage transportation costs or cover production shortfalls. Chord manages its commodity marketing in-house.
Chord holds leasehold acreage in the Williston Basin and operates producing wells there. Net acreage and wells reflect Chord’s ownership interest rather than the full area or production shared with partners. Its production includes oil, gas and NGL.
Chord is headquartered in Denver. Michael H. Lou is its chief executive officer.
How it makes money
Chord earns revenue by producing and selling crude oil, NGL and natural gas. Revenue from its own production changes with the amount sold and the prices received. Oil and gas are commodities, so those prices depend largely on market supply and demand rather than on prices set by Chord.
Crude oil revenues were $3.5 billion in FY2025, or 72.7% of revenue. Purchased crude oil sales were $952.7 million. Chord records revenue from most purchases and resales on a gross basis because it takes control of the oil or gas before transferring it to a buyer; the revenue is therefore not the profit on those transactions. Some related purchases and sales with the same counterparty are recorded net.
A significant amount of Chord’s crude production is sold in bulk at gathering-system delivery points under short-term contracts. These contracts normally use market-based prices that reflect regional differentials, including transportation costs. Chord also uses some fixed-differential sales contracts and commodity derivatives to manage price exposure. Derivatives can reduce the effect of price declines but can also limit cash flow when prices rise.
Producing wells provide an ongoing stream of sales, while development spending is needed to drill and complete additional wells. Chord generates cash from operating activities and spends on capital expenditures. Its crude oil, NGL and natural gas revenues exclude the effects of derivative instruments.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Crude oil revenues | $3.5 billion | 72.7% | −0.68% |
| Purchased crude oil sales | $952.7 million | 19.5% | −30.8% |
| NGL and natural gas revenues | $350.3 million | 7.18% | 32.3% |
| Purchased NGL and natural gas sales | $27.2 million | 0.56% | −28.5% |
Customers and how it sells
Chord’s customers are principally refiners, marketers and other purchasers able to use nearby pipeline and rail facilities. The company sells much of its crude through gathering systems connected to multiple transportation outlets. As of December 31, 2025, substantially all of its gross operated crude oil and natural gas production was connected to gathering systems.
The company manages marketing itself and sells to a variety of purchasers. Chord believes losing any individual purchaser would not have a long-term material adverse effect on its financial position or results because alternative customers and markets are available in its operating areas. It also uses purchases and resales to blend crude to pipeline specifications, optimize transportation costs or cover production shortfalls.
Chord’s operations are focused in the North Dakota and Montana areas of the Williston Basin. It also owns limited non-operated interests in the Marcellus Shale, where another company controls the operations. Chord expects its sale of non-core Marcellus assets to close later in 2026. As of December 31, 2025, nearly all of its Williston Basin acreage was held by production, meaning the leases continued through production rather than relying on an undeveloped lease term.
Suppliers and costs
Chord relies on drilling rigs, completion crews, equipment and other oilfield services to develop its wells. It also needs materials and transportation infrastructure. Chord has contracted a second hydraulic fracturing crew, and availability depends on service-provider capacity in a tight market.
Its costs include drilling and completing wells, operating producing leases, gathering and processing production, transportation and production taxes. It also spends on capital expenditures.
Chord uses longer horizontal wells, multiple wells from a single pad and centralized facilities to develop its acreage. The company says these arrangements can reduce rig mobilization time and costs. In Q3 2026, Chord said it had experienced inflation year to date and had offset it with efficiency gains. It also said drilling costs on its longer wells had declined since the beginning of the year.
- Revenue$4.9B
- Cost of revenue−$2.2B
- Research and development−$551.4M
- Selling, general and administrative−$417.2M
- Other operating costs−$1.5B
- Operating income$197.4M
Competitive position
Chord competes with other oil and gas companies for properties, capital, oilfield goods and services, customers and qualified employees. Some competitors have greater financial, technical and personnel resources, allowing them to bid for more properties or better sustain production when commodity prices are low. The oil and gas industry also competes with other energy sources, including wind, solar, nuclear, coal, hydrogen and biofuels.
Chord has acreage and production in the Williston Basin, and approximately all of its acreage there was held by production at December 31, 2025. The company says its concentrated acreage permits longer laterals, multiwell pads and shared facilities. Our reading: acreage concentration provides a meaningful operating advantage through shared infrastructure and development flexibility, although it does not remove exposure to commodity prices or competition for properties.
At December 31, 2025, most of Chord’s estimated net proved reserves were attributable to properties it operated. Operating control lets Chord determine the pace of development and manage costs across those properties. Our reading: that control supports execution but is not exclusive to Chord, and larger competitors can still bring more resources to a bid.
No competing company is named as a competitor.
Growth opportunities
Chord’s growth plans center on developing its Williston Basin acreage, improving existing production and evaluating acquisitions. Its development program uses horizontal wells in the Middle Bakken and Three Forks formations. Most of its estimated net proved reserves at December 31, 2025 were classified as proved developed. Proved reserves are estimates of quantities considered economically producible under specified conditions, not a guarantee of future production.
Chord completed a Williston Basin asset acquisition in October 2025. The company has said it intends to pursue acquisitions that add to or lengthen its inventory while maintaining a balance sheet able to support its plans. It also expects its non-core Marcellus asset sale to close later in 2026.
Chord is testing chemical treatments across producing wells and expects to determine which treatments to include in its full year 2027 program by early 2027. As of the end of Q3 2026, it had brought longer wells into production and said their execution and production results were in line with expectations. The company said it would provide details of its next year’s program in February.
Chord also plans to return capital through its base dividend, supplemented by opportunistic share repurchases and variable dividends. Its targeted return of adjusted free cash flow depends on projected leverage and cash flow generated during the previous quarter.
- $1.6BFY2021
- $3.6BFY2022
- $3.9BFY2023
- $5.3BFY2024
- $4.9BFY2025
Structural risks
- Commodity prices: Chord’s revenue and cash flow depend on oil, NGL and natural gas prices, which can change with global supply, demand, geopolitical events and transportation availability. Prolonged low prices can also reduce economically producible reserves or lead to asset write-downs.
- Geographic and transport exposure: Operations are concentrated in the Williston Basin. Access to pipelines, rail and other regional outlets affects the company’s ability to move and sell production, while winter weather can delay drilling, completion and production.
- Development and services: Drilling and completion involve geological, mechanical and operational risks. Shortages or higher costs for rigs, crews, equipment, water and other supplies can delay projects or raise costs.
- Environmental and regulatory requirements: Permitting, emissions, water management and waste rules can increase costs or restrict operations. Spills and other releases may also create cleanup costs and liabilities.
- Reserves and hedging: Reserve estimates depend on assumptions about prices, production and development costs. Commodity derivatives can soften the impact of falling prices but may limit cash flow when prices rise.
Bottom line
Our reading
Chord is an oil-weighted producer whose business depends on developing and marketing production from a concentrated Williston Basin position. [item1] Its acreage and operating control give it scope to organize development and share infrastructure, but commodity prices, regional transportation and the cost and availability of services remain central exposures. [item1] [item1a] The planned Marcellus sale would leave the company with less geographic diversification. [facts]