Chord Energy Cuts FY25 CapEx by $100M, Achieves $175M Q4 FCF and $1.30 Dividend
Chord Energy cut FY25 CapEx by more than $100MM while boosting oil volumes 1% year-over-year and generating $160MM in incremental free cash flow. In 4Q25 it produced 153 MBopd at upper guidance, earned $175MM adjusted FCF and declared a $1.30 per-share dividend.
1. FY25 Efficiency and FCF Improvements
Chord reduced FY25 capital expenditures by over $100 million versus pro forma FY24 and boosted oil production per share by 1% year-over-year. Continuous improvement initiatives delivered approximately $160 million in incremental run-rate free cash flow while lowering the weighted average breakeven cost by more than 10%.
2. Fourth Quarter Operational and Financial Results
In 4Q25 Chord achieved oil volumes of 153.0 MBopd at the top of guidance and generated $175 million in adjusted free cash flow on $506.4 million of adjusted EBITDA. Capital spending of $305.2 million remained below guidance and lease operating expenses held at $9.72 per boe, supporting net income of $84.4 million ($1.28 per share).
3. 2026 Outlook and Drilling Update
The company maintained its 2026 volume and capital guidance issued in November, planning for roughly 40% of TIL completions to utilize four-mile laterals. Chord expects continued low-breakeven inventory and stable execution to deliver free cash flow resilience through commodity price volatility.
4. Shareholder Returns and Balance Sheet
Chord declared $5.20 in annualized base dividends, including a $1.30 per share quarterly payout, and repurchased 3.5 million shares in 4Q25, reducing fully diluted share count by over 5% to 57.2 million. A strong balance sheet combined with the acquisition of Williston Basin assets from XTO underpins the company's commitment to per-share value creation.