Chord Energy Corp. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Chord Energy Corporation is an independent exploration and production (E&P) company focused on the Williston Basin, with limited non-operated interests in the Marcellus Shale. The company operates under a strategy of capital discipline, operational efficiency, and significant capital return to shareholders through dividends and share repurchases.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Total Revenues | $2,172.7 million | $3,838.3 million | $2,395.6 million |
| Net Income | $525.2 million | $633.8 million | $(170.1) million |
| Diluted EPS | $9.28 | $11.14 | $(2.93) |
| Operating Cash Flow | $1,116.2 million | $1,623.6 million | $1,076.7 million |
| Capital Expenditures | $416.7 million | $755.5 million | $704.4 million |
| Long-Term Debt | $1,481.4 million | $1,481.4 million | $1,479.6 million |
| Cash & Equivalents | $611.6 million | $611.6 million | $40.5 million |
| Liquidity (Total) | $2,581.2 million | $2,581.2 million | N/A |
Note: Liquidity includes $1,969.6 million in unused borrowing capacity under the Credit Facility and cash on hand.
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 60% year-over-year (YTD) to $3.84 billion, driven by a 31% increase in crude oil revenues due to higher realized prices ($82.36/bbl vs. $65.31/bbl) and increased production volumes.
- Profitability Turnaround: The company reported net income of $633.8 million for the first six months of 2026, a stark contrast to the $170.1 million net loss in the same period in 2025. The 2025 loss was primarily driven by a $539.3 million non-cash goodwill impairment charge, which did not recur in 2026.
- Derivative Impact: While Q2 2026 saw a $107.9 million net gain on derivatives, the YTD 2026 period recorded a $133.6 million net loss on derivatives due to an upward shift in the futures curve, compared to a $62.0 million gain in YTD 2025.
- Production: Average daily production increased to 286,447 Boepd in Q2 2026, with crude oil comprising 58% of total production.
Guidance, Outlook, and Risks
Management Commentary: Management highlighted strong free cash flow generation and a commitment to returning capital to shareholders. The company declared a base cash dividend of $1.30 per share for Q3 2026. Capital expenditures for Q2 were $416.7 million, consistent with the company's disciplined investment approach.
Risks and Contingencies:
- Geopolitical Volatility: Significant market volatility in H1 2026 was driven by conflict in the Middle East, specifically the closure of the Strait of Hormuz, and the withdrawal of the UAE from OPEC+ in May 2026.
- Commodity Price Risk: Revenue and profitability remain highly dependent on crude oil, NGL, and natural gas prices. The company utilizes derivative instruments to hedge price risk, which can limit upside potential during price surges.
- Volume Commitments: The company has $553.3 million in undiscounted future commitments for volume delivery, transport, or purchase agreements.
- Interest Rates: While the company has no variable rate borrowings outstanding as of June 30, 2026, rising interest rates could impact future borrowing costs and economic activity.
Investor Verification Checklist
- Derivative Exposure: Verify the net unrealized asset position of $35.3 million on crude oil derivatives and the sensitivity of this position to a 10% price change (approx. $105.5 million reduction in value).
- Debt Structure: Confirm the maturity profile of the $1.5 billion in senior unsecured notes (2030 and 2033) and the status of the $2.75 billion borrowing base redetermination scheduled for October 2026.
- Share Repurchase Capacity: Note that $734.0 million remains available under the $1.0 billion share repurchase program authorized in August 2025.
- Tax Adjustments: Review the $41.8 million out-of-period tax benefit recognized in Q1 2026 related to a prior period error regarding goodwill impairment and deferred taxes.
- Production Mix: Monitor the 58% crude oil mix and the impact of seasonal natural gas price fluctuations on overall realized pricing.