HOUSTON, Aug. 2, 2023
/PRNewswire/ -- Chord Energy Corporation (NASDAQ: CHRD) ("Chord",
"Chord Energy" or the "Company") today reported second quarter 2023
financial and operating results. On July 1,
2022, the Company completed the merger of equals transaction
between Oasis Petroleum Inc. ("Oasis") and Whiting Petroleum
Corporation ("Whiting"). The results reported for the three and six
months ended June 30, 2023 reflect
the consolidated results of Chord, while the results reported for
the three and six months ended June 30,
2022 reflect legacy Oasis, unless otherwise noted.
2Q23 Operational and Financial Highlights:
- 2Q23 oil volumes of 96.4 MBopd were at the high-end of
guidance;
- Total 2Q23 volumes of 169.0 MBoepd were above the high-end of
guidance;
- E&P and other CapEx was $257.0MM in 2Q23 and $459.3MM in 1H23. E&P and other CapEx in 2Q23
and 1H23 includes $10.1MM and
$10.9MM, respectively, related to
divested non-operated assets that will be reimbursed and was not in
guidance;
- 2Q23 oil, NGL and gas revenue of $695.4MM impacted by lower realized gas and NGL
pricing;
- Net cash provided by operating activities was $408.2MM and net income was $216.1MM in 2Q23;
- Adjusted EBITDA(1) was $369.6MM and Adjusted Free Cash
Flow(1) was $105.3MM in
2Q23. Adjusted Free Cash Flow was reduced by the $10.1MM of E&P and other CapEx related to
divested non-operated assets that will be reimbursed;
- Total return of capital for 2Q23 of $87MM was set at 75% of
Adjusted Free Cash Flow(1), plus the $10.9MM of E&P and other CapEx incurred in
1H23 related to divested non-operated assets that will be
reimbursed. Return of capital for 2Q23 includes share repurchases
of $31MM during 2Q23 at a weighted average price of $147.59 per share;
- Declared a base-plus-variable cash dividend of $1.36 per share of common stock. The dividend
will be payable on August 29, 2023 to
shareholders of record as of August 15,
2023;
- Completed the acquisition of assets in the Williston Basin from XTO Energy Inc. and
affiliates (collectively, "XTO"), subsidiaries of Exxon Mobil
Corporation, for total cash consideration of $361.6MM, subject to customary post-closing
adjustments;
- Announced $29MM of non-core asset sales incremental to those
announced in May 2023. 2H23 volumes
associated with the divested assets are approximately 0.5 MBopd.
All transactions have closed or are expected to close during 3Q23.
Total non-core asset sales are approximately $64MM, which includes
$35MM announced in May 2023 and the
$10.9MM of E&P and other CapEx
incurred in 1H23 that will be reimbursed;
- ESG and sustainability initiatives progressing with a focus on
continually improving safety and emissions. Sustainability report
to be released in 3Q23. Chord is committed to continuous
improvement across ESG and delivering the energy the world
needs.
|
(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").
|
"Chord's second quarter performance benefited from strong well
performance as we continue to see positive results from our
three-mile lateral program," said Danny
Brown, Chord Energy's President and Chief Executive Officer.
"In addition, the acquisition of certain XTO assets closed at the
end of the quarter and extends our inventory runway in core
areas while making legacy Chord areas more capital efficient
through the conversion of two-mile DSUs to three-mile DSUs.
Concurrently, Chord continues to optimize its portfolio through the
divestment of non-core assets. Our substantial low-cost inventory
and capital efficiency support sustainable free cash generation and
Chord continued to return high amounts of free cash flow to
shareholders including increasing the percentage returned through
share repurchases. 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 disciplined capital
allocation, responsible operations, and maintaining a strong
balance sheet."
2Q23 Operational and Financial Update:
The following table presents select 2Q23 operational and
financial data compared to guidance released in May 2023:
|
Metric
|
|
2Q23
Actual
|
|
2Q23
Guidance
|
|
Oil volumes
(MBopd)
|
|
96.4
|
|
93.5 – 96.5
|
|
NGL volumes
(MBblpd)
|
|
36.0
|
|
33.5 – 34.5
|
|
Natural gas volumes
(MMcfpd)
|
|
219.3
|
|
217.0 –
223.0
|
|
Total volumes
(MBoepd)
|
|
169.0
|
|
163.2 –
168.2
|
|
Oil premium to WTI
($/Bbl)
|
|
$0.14
|
|
$(0.60) –
$1.40
|
|
NGL realization (% of
WTI)
|
|
12 %
|
|
23% – 33%
|
|
Residue gas realization
(% of Henry Hub)
|
|
45 %
|
|
55% – 65%
|
|
LOE ($/Boe)
|
|
$10.31
|
|
$10.00 –
$10.80
|
|
Cash GPT
($/Boe)(1)
|
|
$3.15
|
|
$2.50 –
$3.10
|
|
Cash G&A
($MM)(1,2)
|
|
$17.7
|
|
$15.1 –
$18.1
|
|
Production Taxes (% of
oil, NGL and gas sales)
|
|
8.4 %
|
|
8.0% – 8.4%
|
|
E&P & Other
CapEx ($MM)(3)
|
|
$257.0
|
|
$235 – $265
|
|
Cash Interest
($MM)(1)
|
|
$7.3
|
|
$7.0 – $8.0
|
|
|
|
(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 of $6.9MM incurred in
2Q23.
|
|
(3)
|
Includes $10.1MM for
E&P and other CapEx related to divested non-operated assets
that will be reimbursed and excludes capitalized interest of
$1.3MM.
|
During the three months ended June 30,
2023, net cash provided by operating activities was
$408.2MM and net income was
$216.1MM ($4.96/diluted share). Adjusted EBITDA was
$369.6MM, Adjusted Free Cash Flow was
$105.3MM and Adjusted Net Income was
$158.4MM ($3.65/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 turned in line 22 gross (18 net) operated wells in
2Q23.
Updated Outlook:
Chord is updating its outlook to reflect its latest projections,
including the impact of the acquisition of assets in the
Williston Basin from XTO, which
closed June 30, 2023, and additional
non-core divestitures which closed in 2Q23 or are expected to close
in 3Q23. Assuming pricing of $75/Bbl
WTI and $2.75/MMBtu Henry Hub for the
remainder of 2023, Chord expects to generate approximately
$1.7B of Adjusted EBITDA and
approximately $735MM of Adjusted Free Cash Flow in 2023, including
the impact of derivatives but excluding dividends. The reinvestment
rate is expected to be approximately 50% in 2H23. Changes to the
Company's outlook since May 2023
include:
- Updating volume projections to account for the latest
development schedule and the production impact from the acquisition
and non-core divestitures in 1H23. Excluding the impacts of
acquisitions and divestitures, FY23 oil volumes are in-line with
May guidance;
- Lowering NGL realizations and residue gas realizations to
account for current market prices versus WTI. Current guidance
assumes elevated levels of ethane rejection;
- GPT per BOE adjusted to reflect the conversion of a marketing
agreement from a sales contract to a transportation contract;
- Increasing production tax as a percentage of revenue to reflect
an escalation of the North Dakota
gas extraction tax effective in July; and
- FY23 E&P and other CapEx increasing to $850MM – $880MM,
which excludes the $10.9MM of E&P
and other CapEx incurred in 1H23 related to divested non-operated
assets that will be reimbursed. E&P and other CapEx was
increased to reflect incremental 4Q23 activity associated with the
acquisition of assets in the Williston Basin from XTO.
The following table presents select operational and financial
guidance for 3Q23 and FY23:
|
Metric
|
|
3Q23 Guidance
(August 2, 2023)
|
|
FY23 Guidance
(August 2, 2023)
|
|
FY23 Guidance
(May 3, 2023)
|
|
Oil volumes
(MBopd)
|
|
95.5 – 98.5
|
|
97.0 – 99.0
|
|
95.0 – 98.0
|
|
NGL volumes
(MBblpd)
|
|
34.5 – 35.5
|
|
34.7 – 35.2
|
|
33.0 – 34.0
|
|
Natural gas volumes
(MMcfpd)
|
|
222.0 –
228.0
|
|
222.0 –
225.0
|
|
216.0 –
220.5
|
|
Total volumes
(MBoepd)
|
|
167.0 –
172.0
|
|
168.7 –
171.7
|
|
164.0 –
168.5
|
|
Oil premium (discount)
to WTI ($/Bbl)
|
|
$(0.40) –
$1.60
|
|
$(0.66) –
$1.34
|
|
$(0.50) –
$1.50
|
|
NGL realization (% of
WTI)
|
|
10% – 20%
|
|
13% – 23%
|
|
23% – 33%
|
|
Residue gas realization
(% of Henry Hub)
|
|
40% – 50%
|
|
54% – 64%
|
|
56% – 66%
|
|
LOE ($/Boe)
|
|
$10.20 –
$11.00
|
|
$9.95 –
$10.75
|
|
$9.75 –
$10.60
|
|
Cash GPT
($/Boe)(1)
|
|
$2.80 –
$3.40
|
|
$2.75 –
$3.35
|
|
$2.50 –
$3.10
|
|
Cash G&A
($MM)(1,2)
|
|
$14.6 –
$17.6
|
|
$63.0 –
$73.0
|
|
$63.0 –
$73.0
|
|
Production Taxes (% of
oil, NGL and gas sales)
|
|
8.6% – 9.0%
|
|
8.2% – 8.6%
|
|
7.9% – 8.3%
|
|
E&P & Other
CapEx ($MM)(3)
|
|
$245 – $275
|
|
$850 – $880
|
|
$825 – $865
|
|
Cash Interest
($MM)(1)
|
|
$7.7 – $8.7
|
|
$29.5 –
$31.5
|
|
$28.0 –
$32.0
|
|
|
|
(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-core assets that
will be reimbursed and excludes capitalized interest of $1.4MM and
$5.1MM in 3Q23 and FY23, respectively.
|
Chord expects cash taxes to range between 0% – 10% of Adjusted
EBITDA in 2H23 with NYMEX WTI between $70/Bbl – $90/Bbl.
Select Operational and Financial Data:
The following table presents select operational and financial
data from continuing operations for the periods presented:
|
2Q23
|
|
1Q23
|
|
2Q22
|
|
Production
data:
|
|
|
|
|
|
|
Crude oil
(MBopd)
|
96.4
|
|
95.1
|
|
41.2
|
|
NGLs
(MBblpd)(1)
|
36.0
|
|
32.7
|
|
—
|
|
Natural gas
(MMcfpd)(1)
|
219.3
|
|
221.4
|
|
137.4
|
|
Total production
(MBoepd)(1)
|
169.0
|
|
164.7
|
|
64.1
|
|
Percent crude
oil
|
57.0 %
|
|
57.7 %
|
|
64.3 %
|
|
Average sales
prices:
|
|
|
|
|
|
|
Crude oil, without
realized derivatives ($/Bbl)
|
$
73.89
|
|
$
76.04
|
|
$ 111.79
|
|
Differential to NYMEX
WTI ($/Bbl)
|
0.14
|
|
—
|
|
2.82
|
|
Crude oil, with
realized derivatives ($/Bbl)
|
68.03
|
|
65.79
|
|
78.71
|
|
Crude oil realized
derivatives ($MM)
|
(51.4)
|
|
(87.7)
|
|
(124.0)
|
|
NGL, without realized
derivatives ($/Bbl)(1)
|
8.70
|
|
21.13
|
|
—
|
|
NGL, with realized
derivatives ($/Bbl)(1)
|
8.70
|
|
22.10
|
|
—
|
|
NGL realized
derivatives ($MM)
|
—
|
|
2.9
|
|
—
|
|
Natural gas, without
realized derivatives ($/Mcf)(1)
|
0.95
|
|
2.66
|
|
9.57
|
|
Natural gas, with
realized derivatives ($/Mcf)(1)
|
0.96
|
|
2.31
|
|
8.62
|
|
Natural gas realized
derivatives ($MM)
|
0.1
|
|
(7.0)
|
|
(11.9)
|
|
Selected financial
data ($MM):
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Crude oil
revenues
|
$
647.9
|
|
$
650.9
|
|
$
418.9
|
|
NGL
revenues(1)
|
28.5
|
|
62.2
|
|
—
|
|
Natural gas
revenues(1)
|
19.0
|
|
53.1
|
|
119.7
|
|
Total oil, NGL and
natural gas revenues
|
$
695.4
|
|
$
766.2
|
|
$
538.6
|
|
Cash
flows:
|
|
|
|
|
|
|
Net cash provided by
operating activities:
|
$
408.2
|
|
$
468.8
|
|
$
396.4
|
|
Non-GAAP financial
measures(2):
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
369.6
|
|
$
408.3
|
|
$
255.9
|
|
Adjusted Free Cash
Flow(3)
|
105.3
|
|
198.6
|
|
202.9
|
|
Adjusted net income
attributable to Chord from continuing operations
|
158.4
|
|
194.4
|
|
153.5
|
|
Select operating
expenses:
|
|
|
|
|
|
|
Lease operating
expenses ("LOE")
|
$
158.6
|
|
$
153.4
|
|
$
67.7
|
|
Gathering, processing
and transportation expenses ("GPT")
|
43.4
|
|
37.0
|
|
31.8
|
|
Production
taxes
|
58.5
|
|
60.5
|
|
40.1
|
|
Depreciation,
depletion and amortization
|
137.0
|
|
133.8
|
|
42.1
|
|
Total select operating
expenses
|
$
397.5
|
|
$
384.7
|
|
$
181.7
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic earnings per
share
|
$
5.19
|
|
$
7.13
|
|
$
6.69
|
|
Diluted earnings per
share
|
4.96
|
|
6.87
|
|
6.23
|
|
Adjusted diluted
earnings per share (Non-GAAP)(2)
|
3.65
|
|
4.49
|
|
7.30
|
|
|
|
(1)
|
Beginning in 3Q22, the
Company reported crude oil, NGLs and natural gas on a three-stream
basis. Prior to 3Q22, the Company reported crude oil and natural
gas (including NGLs) on a two-stream basis. This change impacts
comparability between periods.
|
|
(2)
|
Non-GAAP financial
measure. See "Non-GAAP Financial Measures" below for a
reconciliation to the most directly comparable financial measures
under GAAP.
|
|
(3)
|
2Q23 Adjusted Free Cash
Flow was reduced by $10.1MM for E&P and other CapEx related to
divested non-operated assets that will be reimbursed.
|
Capital Expenditures:
The following table presents the Company's total capital
expenditures ("CapEx") by category for the period presented:
|
1Q23
|
|
2Q23
|
|
YTD23
|
|
CapEx
($MM):
|
|
|
|
|
|
|
E&P
|
$
201.8
|
|
$
256.6
|
|
$
458.4
|
|
Other
|
0.5
|
|
0.4
|
|
0.9
|
|
Total E&P and other
CapEx(1)
|
202.3
|
|
257.0
|
|
459.3
|
|
Capitalized
interest
|
1.4
|
|
1.3
|
|
2.7
|
|
Acquisitions
|
—
|
|
361.6
|
|
361.6
|
|
Total
CapEx
|
$
203.7
|
|
$
619.9
|
|
$
823.6
|
|
|
|
(1)
|
2Q23 and 1H23 includes
$10.1MM and $10.9MM of E&P and other CapEx, respectively,
related to divested non-operated assets that will be
reimbursed.
|
Dividend Declaration:
Chord declared a base-plus-variable cash dividend of
$1.36 per share of common stock. The
dividend will be payable on August 29, 2023 to shareholders of
record as of August 15, 2023. The base-plus-variable dividend
was declared in connection with Chord's return of capital plan.
Additional 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.
Balance Sheet and Liquidity:
The following table presents key balance sheet data and
liquidity metrics as of June 30, 2023
(in millions):
|
June 30,
2023
|
|
Revolving credit
facility(1)
|
$
1,000.0
|
|
|
|
Revolver
borrowings
|
$
—
|
|
Senior notes
|
400.0
|
|
Total debt
|
$
400.0
|
|
|
|
Cash and cash
equivalents
|
$
214.8
|
|
Letters of
credit
|
6.1
|
|
Liquidity
|
$
1,208.7
|
|
|
(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, August 3,
2023
|
|
Time:
|
10:00 a.m. Central
Time
|
|
Live Webcast:
|
https://app.webinar.net/WQ0moR76zLP
|
|
|
|
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:
|
3688881
|
|
|
|
A recording of the
conference call will be available beginning at 1:00 p.m. Central
Time on the day of the call and will be available until Thursday,
August 10, 2023 by dialing:
|
|
|
Replay dial-in:
|
(877)
344-7529
|
|
Intl. replay:
|
(412)
317-0088
|
|
Replay access:
|
8715992
|
|
|
|
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 and political
instability in Ukraine and the
effect on commodity prices due to the ongoing conflict in
Ukraine, 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 Reports 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.
|
Chord Energy
Corporation
Consolidated
Balance Sheets (Unaudited)
(In thousands,
except share data)
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
214,787
|
|
$
593,151
|
|
Accounts receivable,
net
|
770,099
|
|
781,738
|
|
Inventory
|
63,439
|
|
54,411
|
|
Prepaid
expenses
|
36,162
|
|
17,624
|
|
Derivative
instruments
|
28,972
|
|
23,735
|
|
Other current
assets
|
338
|
|
11,853
|
|
Current assets held
for sale
|
10,726
|
|
—
|
|
Total current
assets
|
1,124,523
|
|
1,482,512
|
|
Property, plant and
equipment
|
|
|
|
|
Oil and gas properties
(successful efforts method)
|
5,850,189
|
|
5,120,121
|
|
Other property and
equipment
|
52,338
|
|
72,973
|
|
Less: accumulated
depreciation, depletion and amortization
|
(734,618)
|
|
(481,751)
|
|
Total property, plant
and equipment, net
|
5,167,909
|
|
4,711,343
|
|
Derivative
instruments
|
38,527
|
|
37,965
|
|
Investment in
unconsolidated affiliate
|
115,763
|
|
130,575
|
|
Long-term
inventory
|
17,848
|
|
22,009
|
|
Operating right-of-use
assets
|
19,848
|
|
23,875
|
|
Deferred tax
assets
|
54,369
|
|
200,226
|
|
Other assets
|
20,903
|
|
22,576
|
|
Total
assets
|
$
6,559,690
|
|
$
6,631,081
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
13,879
|
|
$
29,056
|
|
Revenues and
production taxes payable
|
534,190
|
|
607,964
|
|
Accrued
liabilities
|
507,980
|
|
362,454
|
|
Accrued interest
payable
|
2,215
|
|
3,172
|
|
Derivative
instruments
|
81,181
|
|
341,541
|
|
Advances from joint
interest partners
|
3,018
|
|
3,736
|
|
Current operating
lease liabilities
|
10,400
|
|
9,941
|
|
Other current
liabilities
|
7,198
|
|
3,469
|
|
Current liabilities
held for sale
|
13,332
|
|
—
|
|
Total current
liabilities
|
1,173,393
|
|
1,361,333
|
|
Long-term
debt
|
395,049
|
|
394,209
|
|
Asset retirement
obligations
|
127,338
|
|
146,029
|
|
Derivative
instruments
|
145
|
|
2,829
|
|
Operating lease
liabilities
|
20,544
|
|
13,266
|
|
Other
liabilities
|
23,651
|
|
33,617
|
|
Total
liabilities
|
1,740,120
|
|
1,951,283
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $0.01
par value: 120,000,000 shares authorized; 43,958,610
shares issued and 41,390,064 shares outstanding at June 30, 2023;
and
120,000,000 shares authorized, 43,726,181 shares issued and
41,477,093
shares outstanding at December 31, 2022
|
441
|
|
438
|
|
Treasury stock, at
cost: 2,568,546 shares at June 30, 2023 and 2,249,088
shares at December 31, 2022
|
(297,768)
|
|
(251,950)
|
|
Additional paid-in
capital
|
3,500,727
|
|
3,485,819
|
|
Retained
earnings
|
1,616,170
|
|
1,445,491
|
|
Total stockholders'
equity
|
4,819,570
|
|
4,679,798
|
|
Total liabilities and
stockholders' equity
|
$
6,559,690
|
|
$
6,631,081
|
|
Chord Energy
Corporation
Consolidated
Statements of Operations (Unaudited)
(In thousands,
except per share data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Oil, NGL and gas
revenues
|
$
695,426
|
|
$
538,567
|
|
$ 1,461,626
|
|
$ 1,032,069
|
|
Purchased oil and gas
sales
|
216,645
|
|
250,489
|
|
346,962
|
|
409,956
|
|
Other services
revenues
|
—
|
|
324
|
|
—
|
|
324
|
|
Total
revenues
|
912,071
|
|
789,380
|
|
1,808,588
|
|
1,442,349
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
158,554
|
|
67,734
|
|
311,962
|
|
130,921
|
|
Gathering, processing
and transportation expenses
|
43,397
|
|
31,813
|
|
80,412
|
|
64,210
|
|
Purchased oil and gas
expenses
|
216,226
|
|
252,058
|
|
345,819
|
|
413,684
|
|
Production
taxes
|
58,488
|
|
40,081
|
|
119,005
|
|
75,938
|
|
Depreciation, depletion
and amortization
|
137,046
|
|
42,136
|
|
270,837
|
|
86,809
|
|
General and
administrative expenses
|
42,174
|
|
24,822
|
|
74,658
|
|
49,189
|
|
Exploration and
impairment
|
6,782
|
|
278
|
|
31,646
|
|
788
|
|
Total operating
expenses
|
662,667
|
|
458,922
|
|
1,234,339
|
|
821,539
|
|
Gain on sale of assets,
net
|
1,613
|
|
319
|
|
2,840
|
|
1,840
|
|
Operating
income
|
251,017
|
|
330,777
|
|
577,089
|
|
622,650
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Net gain (loss) on
derivative instruments
|
29,518
|
|
(98,253)
|
|
96,452
|
|
(466,175)
|
|
Net gain (loss) from
investment in unconsolidated affiliate
|
10,126
|
|
(96,253)
|
|
7,910
|
|
(36,116)
|
|
Interest expense, net
of capitalized interest
|
(7,228)
|
|
(6,949)
|
|
(14,363)
|
|
(14,165)
|
|
Other income
|
2,293
|
|
1,298
|
|
7,486
|
|
3,050
|
|
Total other income
(expense), net
|
34,709
|
|
(200,157)
|
|
97,485
|
|
(513,406)
|
|
Income from continuing
operations before income taxes
|
285,726
|
|
130,620
|
|
674,574
|
|
109,244
|
|
Income tax (expense)
benefit
|
(69,655)
|
|
219
|
|
(161,504)
|
|
2,044
|
|
Net income from
continuing operations
|
216,071
|
|
130,839
|
|
513,070
|
|
111,288
|
|
Income from
discontinued operations attributable to Chord, net of income
tax
|
—
|
|
—
|
|
—
|
|
485,554
|
|
Net income
attributable to Chord
|
$
216,071
|
|
$
130,839
|
|
$
513,070
|
|
$
596,842
|
|
Earnings attributable
to Chord per share:
|
|
|
|
|
|
|
|
|
Basic from continuing
operations
|
$
5.19
|
|
$
6.69
|
|
$
12.32
|
|
$
5.73
|
|
Basic from discontinued
operations
|
—
|
|
—
|
|
—
|
|
24.99
|
|
Basic total
|
$
5.19
|
|
$
6.69
|
|
$
12.32
|
|
$
30.72
|
|
Diluted from continuing
operations
|
$
4.96
|
|
$
6.23
|
|
$
11.83
|
|
$
5.30
|
|
Diluted from
discontinued operations
|
—
|
|
—
|
|
—
|
|
23.14
|
|
Diluted
total
|
$
4.96
|
|
$
6.23
|
|
$
11.83
|
|
$
28.44
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
41,494
|
|
19,553
|
|
41,531
|
|
19,430
|
|
Diluted
|
43,386
|
|
20,990
|
|
43,267
|
|
20,983
|
|
Chord Energy
Corporation
Consolidated
Statements of Cash Flows (Unaudited)
(In thousands)
|
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income including
non-controlling interests
|
$
513,070
|
|
$
599,153
|
|
Adjustments to
reconcile net income including non-controlling interests to net
cash provided by operating activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
270,837
|
|
86,809
|
|
Gain on sale of
assets
|
(2,840)
|
|
(520,740)
|
|
Impairment
|
28,964
|
|
—
|
|
Deferred income
taxes
|
145,857
|
|
(7)
|
|
Net (gain) loss on
derivative instruments
|
(96,452)
|
|
466,175
|
|
Net (gain) loss from
investment in unconsolidated affiliate
|
(7,910)
|
|
36,116
|
|
Equity-based
compensation expenses
|
27,181
|
|
9,663
|
|
Deferred financing
costs amortization and other
|
(4,035)
|
|
3,294
|
|
Working capital and
other changes:
|
|
|
|
|
Change in accounts
receivable, net
|
5,564
|
|
(112,688)
|
|
Change in
inventory
|
(3,526)
|
|
(14,040)
|
|
Change in prepaid
expenses
|
317
|
|
1,035
|
|
Change in accounts
payable, interest payable and accrued liabilities
|
(11,084)
|
|
96,141
|
|
Change in other assets
and liabilities, net
|
11,104
|
|
11,080
|
|
Net cash provided by
operating activities
|
877,047
|
|
661,991
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(407,773)
|
|
(114,325)
|
|
Acquisitions
|
(361,609)
|
|
—
|
|
Proceeds from
divestitures, net of cash divested
|
59,219
|
|
148,818
|
|
Costs related to
divestitures
|
—
|
|
(11,368)
|
|
Derivative
settlements
|
(154,110)
|
|
(201,668)
|
|
Distributions from
investment in unconsolidated affiliate
|
5,984
|
|
26,862
|
|
Net cash used in
investing activities
|
(858,289)
|
|
(151,681)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
revolving credit facilities
|
—
|
|
15,000
|
|
Deferred financing
costs
|
—
|
|
(9)
|
|
Repurchases of common
stock
|
(45,818)
|
|
—
|
|
Tax withholding on
vesting of equity-based awards
|
(13,631)
|
|
(4,789)
|
|
Dividends
paid
|
(337,747)
|
|
(139,860)
|
|
Payments on finance
lease liabilities
|
(933)
|
|
(229)
|
|
Proceeds from warrants
exercised
|
1,007
|
|
15,908
|
|
Net cash used in
financing activities
|
(397,122)
|
|
(113,979)
|
|
Increase (decrease) in
cash and cash equivalents
|
(378,364)
|
|
396,331
|
|
Cash and cash
equivalents:
|
|
|
|
|
Beginning of
period
|
593,151
|
|
174,783
|
|
End of
period
|
$
214,787
|
|
$
571,114
|
|
|
|
|
|
|
|
|
|
Supplemental
non-cash transactions:
|
|
|
|
|
Change in accrued
capital expenditures
|
$
74,114
|
|
$
(806)
|
|
Change in asset
retirement obligations
|
547
|
|
(428)
|
|
Investment in
unconsolidated affiliate
|
—
|
|
568,312
|
|
Dividends
payable
|
35,321
|
|
317,530
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
GPT
|
$
43,397
|
|
$
31,813
|
|
$
80,412
|
|
$
64,210
|
|
Pipeline
imbalances
|
(2,133)
|
|
827
|
|
(8,137)
|
|
1,143
|
|
Mark-to-market
adjustments on derivative transportation contracts
|
7,123
|
|
—
|
|
18,279
|
|
—
|
|
Cash
GPT
|
$
48,387
|
|
$
32,640
|
|
$
90,554
|
|
$
65,353
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
General and
administrative expenses
|
$
42,174
|
|
$
24,822
|
|
$
74,658
|
|
$
49,189
|
|
Merger
costs(1)
|
(6,908)
|
|
—
|
|
(9,701)
|
|
—
|
|
Equity-based
compensation expenses
|
(15,327)
|
|
(4,815)
|
|
(27,181)
|
|
(9,616)
|
|
G&A expenses
attributable to shared services
|
—
|
|
—
|
|
—
|
|
(1,624)
|
|
Other non-cash
adjustments
|
(2,284)
|
|
(35)
|
|
(1,873)
|
|
(2,253)
|
|
Cash
G&A
|
$
17,655
|
|
$
19,972
|
|
$
35,903
|
|
$
35,696
|
|
|
(1)
Includes costs directly attributable to the merger of equals with
Whiting for the three and six months ended June 30,
2023.
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Interest
expense
|
$
7,228
|
|
$
6,949
|
|
$
14,363
|
|
$
14,165
|
|
Capitalized
interest
|
1,323
|
|
879
|
|
2,744
|
|
1,480
|
|
Amortization of
deferred financing costs
|
(1,211)
|
|
(864)
|
|
(2,409)
|
|
(1,719)
|
|
Cash
Interest
|
$
7,340
|
|
$
6,964
|
|
$
14,698
|
|
$
13,926
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
thousands)
|
|
Net income including
non-controlling interests
|
$
216,071
|
|
$
130,839
|
|
$
513,070
|
|
$
599,153
|
|
Interest expense, net
of capitalized interest
|
7,228
|
|
6,949
|
|
14,363
|
|
17,850
|
|
Income tax (benefit)
expense
|
69,655
|
|
(219)
|
|
161,504
|
|
39,178
|
|
Depreciation,
depletion and amortization
|
137,046
|
|
42,136
|
|
270,837
|
|
86,809
|
|
Merger
costs(1)
|
6,908
|
|
—
|
|
9,701
|
|
—
|
|
Exploration and
impairment expenses
|
6,782
|
|
278
|
|
31,646
|
|
788
|
|
Gain on sale of
assets
|
(1,613)
|
|
(319)
|
|
(2,840)
|
|
(520,740)
|
|
Net (gain) loss on
derivative instruments
|
(29,518)
|
|
98,253
|
|
(96,452)
|
|
466,175
|
|
Realized loss on
derivative instruments
|
(51,241)
|
|
(135,840)
|
|
(143,099)
|
|
(221,104)
|
|
Net (gain) loss from
investment in unconsolidated affiliate
|
(10,126)
|
|
96,253
|
|
(7,910)
|
|
36,116
|
|
Distributions from
investment in unconsolidated affiliate
|
2,969
|
|
13,746
|
|
5,984
|
|
26,862
|
|
Equity-based
compensation expenses
|
15,327
|
|
4,815
|
|
27,181
|
|
9,663
|
|
Other non-cash
adjustments
|
154
|
|
(988)
|
|
(6,059)
|
|
272
|
|
Adjusted
EBITDA
|
369,642
|
|
255,903
|
|
777,926
|
|
541,022
|
|
Adjusted EBITDA from
discontinued operations
|
—
|
|
—
|
|
—
|
|
(12,296)
|
|
Adjusted EBITDA from
continuing operations
|
369,642
|
|
255,903
|
|
777,926
|
|
528,726
|
|
Cash
Interest
|
(7,340)
|
|
(6,964)
|
|
(14,698)
|
|
(13,926)
|
|
E&P and other
capital expenditures
|
(257,012)
|
|
(46,014)
|
|
(459,308)
|
|
(108,928)
|
|
Adjusted Free Cash
Flow
|
$
105,290
|
|
$
202,925
|
|
$
303,920
|
|
$
405,872
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
408,235
|
|
$
396,411
|
|
$
877,047
|
|
$
661,991
|
|
Changes in working
capital
|
(3,700)
|
|
(24,573)
|
|
(2,376)
|
|
18,473
|
|
Interest expense, net
of capitalized interest
|
7,228
|
|
6,949
|
|
14,363
|
|
17,850
|
|
Current income tax
(benefit) expense
|
(2,280)
|
|
(219)
|
|
15,647
|
|
39,184
|
|
Merger
costs(1)
|
6,908
|
|
—
|
|
9,701
|
|
—
|
|
Exploration
expenses
|
1,124
|
|
278
|
|
2,683
|
|
788
|
|
Realized loss on
derivative instruments
|
(51,241)
|
|
(135,840)
|
|
(143,099)
|
|
(221,104)
|
|
Distributions from
investment in unconsolidated affiliate
|
2,969
|
|
13,746
|
|
5,984
|
|
26,862
|
|
Deferred financing
costs amortization and other
|
245
|
|
139
|
|
4,035
|
|
(3,294)
|
|
Other non-cash
adjustments
|
154
|
|
(988)
|
|
(6,059)
|
|
272
|
|
Adjusted
EBITDA
|
369,642
|
|
255,903
|
|
777,926
|
|
541,022
|
|
Adjusted EBITDA from
discontinued operations
|
—
|
|
—
|
|
—
|
|
(12,296)
|
|
Adjusted EBITDA from
continuing operations
|
369,642
|
|
255,903
|
|
777,926
|
|
528,726
|
|
Cash
Interest
|
(7,340)
|
|
(6,964)
|
|
(14,698)
|
|
(13,926)
|
|
E&P and other
capital expenditures(2)
|
(257,012)
|
|
(46,014)
|
|
(459,308)
|
|
(108,928)
|
|
Adjusted Free Cash
Flow
|
$
105,290
|
|
$
202,925
|
|
$
303,920
|
|
$
405,872
|
|
|
|
(1)
|
Includes cash-related
costs directly attributable to the merger of equals with Whiting
that were incurred during the three and six months ended June 30,
2023.
|
|
(2)
|
The three and six
months ended June 30, 2023 includes $10.1MM and $10.9MM of E&P
and other CapEx, respectively, 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
thousands)
|
|
Net income
attributable to Chord
|
$
216,071
|
|
$
130,839
|
|
$
513,070
|
|
$
596,842
|
|
Net (gain) loss on
derivative instruments
|
(29,518)
|
|
98,253
|
|
(96,452)
|
|
466,175
|
|
Realized loss on
derivative instruments
|
(51,241)
|
|
(135,840)
|
|
(143,099)
|
|
(221,104)
|
|
Net (gain) loss from
investment in unconsolidated affiliate
|
(10,126)
|
|
96,253
|
|
(7,910)
|
|
36,116
|
|
Distributions from
investment in unconsolidated affiliate
|
2,969
|
|
13,746
|
|
5,984
|
|
26,862
|
|
Impairment
|
5,660
|
|
—
|
|
28,964
|
|
—
|
|
Merger
costs(1)
|
6,908
|
|
—
|
|
9,701
|
|
—
|
|
Gain on sale of
assets
|
(1,613)
|
|
(319)
|
|
(2,840)
|
|
(520,740)
|
|
Amortization of
deferred financing costs
|
1,211
|
|
864
|
|
2,409
|
|
1,888
|
|
Other non-cash
adjustments
|
154
|
|
(988)
|
|
(6,059)
|
|
272
|
|
Tax
impact(2)
|
18,429
|
|
(18,166)
|
|
50,012
|
|
45,851
|
|
Other tax
adjustments(3)
|
—
|
|
(31,157)
|
|
—
|
|
(109,466)
|
|
Adjusted net income
attributable to Chord
|
158,904
|
|
153,485
|
|
353,780
|
|
322,696
|
|
Adjusted net income
attributable to Chord from discontinued operations
|
—
|
|
—
|
|
—
|
|
(6,142)
|
|
Distributed and
undistributed earnings allocated to participating
securities
|
(526)
|
|
—
|
|
(954)
|
|
—
|
|
Adjusted net income
from continuing operations attributable to common
stockholders
|
$
158,378
|
|
$
153,485
|
|
$
352,826
|
|
$
316,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
attributable to Chord per share
|
4.98
|
|
$
6.23
|
|
11.86
|
|
$
28.44
|
|
Net (gain) loss on
derivative instruments
|
(0.68)
|
|
4.68
|
|
(2.23)
|
|
22.22
|
|
Realized loss on
derivative instruments
|
(1.18)
|
|
(6.47)
|
|
(3.31)
|
|
(10.54)
|
|
Net (gain) loss from
investment in unconsolidated affiliate
|
(0.23)
|
|
4.59
|
|
(0.18)
|
|
1.72
|
|
Distributions from
investment in unconsolidated affiliate
|
0.07
|
|
0.65
|
|
0.14
|
|
1.28
|
|
Impairment
|
0.13
|
|
—
|
|
0.67
|
|
—
|
|
Merger
costs(1)
|
0.16
|
|
—
|
|
0.22
|
|
—
|
|
Gain on sale of
assets
|
(0.04)
|
|
(0.02)
|
|
(0.07)
|
|
(24.82)
|
|
Amortization of
deferred financing costs
|
0.03
|
|
0.04
|
|
0.06
|
|
0.09
|
|
Other non-cash
adjustments
|
—
|
|
(0.05)
|
|
(0.14)
|
|
0.01
|
|
Tax
impact(2)
|
0.42
|
|
(0.87)
|
|
1.16
|
|
2.19
|
|
Other tax
adjustments(3)
|
—
|
|
(1.48)
|
|
—
|
|
(5.22)
|
|
Adjusted Diluted
Earnings Attributable to Chord Per Share
|
3.66
|
|
7.30
|
|
8.18
|
|
15.37
|
|
Less: Adjusted Diluted
Earnings From Discontinued Operations Attributable to Chord Per
Share
|
—
|
|
—
|
|
—
|
|
(0.29)
|
|
Less: Distributed and
undistributed earnings allocated to participating
securities
|
(0.01)
|
|
—
|
|
(0.02)
|
|
—
|
|
Adjusted Diluted
Earnings From Continuing Operations Attributable to Chord Per
Share
|
$
3.65
|
|
$
7.30
|
|
$
8.16
|
|
$
15.08
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
43,386
|
|
20,990
|
|
43,267
|
|
20,983
|
|
|
|
|
|
|
|
|
|
Effective tax rate
applicable to adjustment items(2)
|
24.4 %
|
|
25.2 %
|
|
23.9 %
|
|
21.8 %
|
|
|
|
(1)
|
Includes cash-related
costs directly attributable to the merger of equals with Whiting
that were incurred during the three and six months ended June 30,
2023.
|
|
(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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/chord-energy-corporation-reports-financial-and-operating-results-for-second-quarter-2023-declares-base-and-variable-dividends-and-issues-updated-outlook-301892052.html
SOURCE Chord Energy Corp.
