Chord Energy delivered strong Q1 2026 results with EPS $4.56 on adjusted basis and total revenues of $1.67 billion, significantly above expectations, while net income was $108.6 million. The stock was little changed around $149 in regular and after hours trading, indicating a measured market reaction.
About Chord Energy
Chord Energy Corporation (NASDAQ: CHRD) is an independent oil and gas exploration and production company focused on unconventional, oil weighted assets in the Williston Basin in the United States. The company is headquartered in Houston, Texas and operates as one of the most active producers in the Bakken, with a strategy centered on extended reach laterals and capital discipline.
Chord reported cash and cash equivalents of $225.8 million and total assets of $13.24 billion as of March 31, 2026, supported by a revolving credit facility with $2.0 billion of elected commitments and no revolver borrowings. Long term debt stood at about $1.5 billion, implying a conservative leverage profile, while the company continued to return capital through base dividends and share repurchases. Chord traces its roots to legacy Bakken operators; while the current corporate configuration dates from recent mergers, it effectively operates as a mid cap E&P with an equity value in the multi billion dollar range.
Top Financial Highlights
- Total oil, NGL and natural gas revenues were $1.15 billion in Q1 2026, with total company revenues including purchased oil and gas sales reaching $1.67 billion.
- Net income was $108.6 million in Q1 2026, compared with $219.8 million in the prior year quarter, reflecting higher derivative losses despite stronger operating results.
- Diluted EPS came in at $1.90 on a GAAP basis and $4.56 on an adjusted diluted basis, with adjusted net income attributable to common stockholders of $258.9 million.
- Adjusted EBITDA was $713.0 million, supported by oil volumes of 158.0 MBopd and total production of 275.6 MBoepd.
- Net cash provided by operating activities was $507.5 million, and adjusted free cash flow was $321.2 million after capex and cash interest.
- Capital expenditures totaled $344.9 million in Q1 2026, including $330.6 million for E&P and $14.2 million for midstream projects.
- Lease operating expense was $244.9 million, or $9.87 per Boe, broadly in line with guidance and reflecting disciplined cost control.
- Production mix remained oil weighted, with crude oil accounting for 57.3% of total volumes; NGL volumes were 49.0 MBblpd and gas volumes 411.4 MMcfpd.
- Cash on hand was $225.8 million, and total liquidity was $2.19 billion including undrawn revolver capacity and letters of credit.
- Chord returned $145 million to shareholders in the quarter through a $1.30 per share base dividend and $70.7 million of share repurchases (559,064 shares at an average price of $126.53).
- FY 2026 guidance now calls for oil volumes of 160.0 to 162.0 MBopd, up 2 MBopd at the midpoint to 161 MBopd, while keeping full year capex unchanged at about $1.4 billion.
- Management expects to generate approximately $3.1 billion of adjusted EBITDA and $1.4 billion of adjusted free cash flow for 2026 at assumed benchmark prices.
- LOE guidance midpoint increased slightly to $9.95 per Boe for FY 2026, reflecting production enhancement initiatives that lift volumes with modest cost impact.
- Balance sheet remained strong, with net debt around $1.3 billion and no outstanding borrowings under the revolving credit facility.
Beat or Miss?
| Metric | Reported | Difference or analysis |
| Total revenue | $1.67 billion | Beat some third party expectations citing about $1.21 billion, indicating strong top line. |
| Oil, NGL and gas revenue | $1.15 billion | Reflects higher production and improved realizations versus prior year. |
| GAAP diluted EPS | $1.90 | Below prior year EPS of $3.66, pressured by derivative losses. |
| Adjusted diluted EPS | $4.56 | Above several consensus estimates in the mid $3 range, implying an earnings beat. |
| Adjusted EBITDA | $713.0 million | Supported by volume outperformance and cost discipline, in line to above internal expectations. |
| Net cash from operations | $507.5 million | Strong cash generation with free cash flow above internal expectations. |
What Leadership Is Saying?
“Chord delivered strong first quarter execution, demonstrated efficient operations, and generated free cash flow above expectations. Oil volumes exceeded the high end of guidance with capital and operating expenses in line. This strong operational performance supported robust free cash flow, enabling high return of capital to shareholders.”
The company highlighted that net cash provided by operating activities of $507.5 million, adjusted EBITDA of $713.0 million, and adjusted free cash flow of $324.0 million reflected disciplined capital spending and efficient operations, supporting continued dividends and buybacks as part of its financial strategy.
Historical Performance
| Category | Q1 2026 | Q1 2025 | Change % |
| Revenue (total) | $1,665.6 million | $1,215.0 million | +37.1% revenue growth YoY. |
| Net income | $108.6 million | $219.8 million | About 49% decline, driven mainly by larger derivative losses. |
| Operating expenses | $1,332.8 million | $882.6 million | Around 51% increase, reflecting higher purchased volumes and DD&A. |
How the Market Reacted
Chord Energy’s stock closed around $149.16 on May 5, 2026, down a modest 0.06% on the day, with extended hours trading slipping a further 0.17% to about $148.90. The muted price move, despite significant beats on revenue and EPS, suggests that much of the strength was anticipated or already reflected in the share price after a strong prior rally. Overall sentiment from the release reads as constructive, with higher 2026 volume guidance, stable CapEx and strong free cash flow pointing to a broadly bullish fundamental backdrop for the name.
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