Chord Energy combines Williston scale, 48% EBITDA margins, low leverage, and at least 75% FCF returns, creating attractive upside despite substantial oil-price and long-lateral execution risk.
Overview
Chord Energy is a U.S. independent E&P focused on crude oil, NGLs, and natural gas, with 100% of production sourced from the Williston Basin after its planned Marcellus divestiture. Crude represents 58% of volume and more than 80% of revenue, giving the company strong exposure to higher-value liquids. **Operational scale and four-mile lateral execution are the central competitive advantages**: roughly 80% of TIL wells use three- or four-mile laterals, F&D costs have declined 22% since 2023, and the company controls over 10,000 net operated locations. Q2 2026 revenue rose 128.6% year over year to $2,172.7 million, with $923.5 million of Adjusted EBITDA and $414.1 million of Adjusted FCF. Management maintained 2026 oil guidance at 161.0 MBopd and CapEx at a $1.40 billion midpoint, while guiding to approximately $3.0 billion of EBITDA and $1.3 billion of FCF at $75 WTI and $3.00 Henry Hub. **The key valuation support is a 15–16% FCF yield, approximately 3.2x EV/EBITDA, and a new commitment to return at least 75% of FCF.** Near-term catalysts are the Marcellus sale, buybacks, lateral productivity, and favorable analyst revisions.