CHRD

Chord Energy is a Williston Basin (Bakken) crude oil and natural gas producer whose FY2025 results split sharply between the income statement and the cash flow statement. GAAP earnings collapsed — net income fell 94.8% to $44.5M ($0.74 EPS) and operating income dropped 82.1% to $197M — driven by a 7.1% revenue decline to $4.88B on softer commodity prices and a 32.7% jump in depreciation, depletion and amortization to $1.47B (largely non-cash, reflecting the enlarged asset base post-Enerplus). The 166.4x P/E is therefore meaningless; for a commodity E&P, the operating cash flow of $2.04B (down just 2.7%) and the 1.4x P/S are the relevant measures, and they show the underlying cash machine remained intact.

The balance sheet is reasonable: long-term debt rose 75.6% to $1.48B (the $750M 6.750% and $750M 6.000% senior unsecured notes), but leverage is still moderate at 0.62x liabilities/equity with no Credit Facility borrowings drawn and cash up over 400% to $190M. Management continued returning capital — $365M of buybacks and $318M in dividends — though both were cut from the prior year as cash flow eased, a sensible response to lower prices.