Chord Energy Corp

Results of Operations

Comparability of Financial Statements

On May 31, 2024, we acquired Enerplus Corporation (“Enerplus”) in a stock-and-cash transaction (“the “Arrangement”). Enerplus was an independent North American oil and gas E&P company domiciled in Canada with substantially all of its producing assets in the Williston Basin of North Dakota, with limited non-operated interests in the Marcellus Shale. The results of operations presented below relate to the three months ended March 31, 2025, December 31, 2024 and March 31, 2024. The results reported for the three months ended March 31, 2025 and December 31, 2024 reflect the consolidated results of Chord, including combined operations with Enerplus, while the results reported for the three months ended March 31, 2024 reflect the consolidated results of Chord, excluding the impact from the business combination with Enerplus, unless otherwise noted.

Operational and Financial Highlights

•Production volumes averaged 270,855 Boepd (57% oil), including crude oil volumes of 153,720 Bopd in the first quarter of 2025.

•E&P and other capital expenditures (excluding capitalized interest) were $355.4 million in the first quarter of 2025.

•Lease operating expenses (“LOE”) were $9.56 per Boe in the first quarter of 2025.

•Net cash provided by operating activities was $656.9 million and net income was $219.8 million in the first quarter of 2025.

•Issued $750.0 million 6.750% senior unsecured notes due March 15, 2033 (the “2033 Senior Notes”) in March 2025.

Shareholder Return Highlights

•Paid $1.30 per share base cash dividend on March 26, 2025.

•Repurchased $216.5 million of common stock in the first quarter of 2025 with $376.1 million remaining under our $750 million share repurchase program.

•Declared a base cash dividend of $1.30 per share of common stock. The dividend will be payable on June 9, 2025 to shareholders of record as of May 21, 2025.

Revenues

Our crude oil, NGL and natural gas revenues are derived from the sale of crude oil, NGL and natural gas production. These revenues do not include the effects of derivative instruments and may vary significantly from period to period as a result of changes in volumes of production sold and/or changes in commodity prices. Our revenues for the three months ended March 31, 2025 increased compared to the three months ended March 31, 2024 due to the Arrangement, which expanded our operations primarily in the Williston Basin. Our purchased oil and gas sales are derived from the sale of crude oil, NGLs and natural gas purchased through our marketing activities primarily to optimize transportation costs, for blending to meet pipeline specifications or to cover production shortfalls. Revenues and expenses from crude oil, NGL and natural gas sales and purchases are generally recorded on a gross basis, as we act as a principal in these transactions by assuming control of the purchased crude oil or natural gas before it is transferred to the counterparty. In certain cases, we enter into sales and purchases with the same counterparty in contemplation of one another, and these transactions are recorded on a net basis.

The following table summarizes our revenues, production and average realized prices for the periods presented:

(1)For the three months ended March 31, 2025 and December 31, 2024, natural gas production volume from the Marcellus Shale was 11,563 MMcf and 10,454 MMcf, respectively. The realized natural gas price related to this production, prior to the effect of derivative settlements, was $4.71 per Mcf and $2.29 per Mcf for the three months ended March 31, 2025 and December 31, 2024, respectively.

(2)The effect of derivative settlements includes the gains or losses on commodity derivatives for contracts ending in the periods presented. Our commodity derivatives do not qualify for or were not designated as hedging instruments for accounting purposes.

Three months ended March 31, 2025 as compared to three months ended December 31, 2024

Crude oil revenues. Our crude oil revenues decreased $14.3 million to $956.1 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The decrease was primarily due to a decrease in crude oil production volumes sold quarter over quarter resulting in a $18.8 million decrease, partially offset by an increase of $4.5 million due to higher crude oil realized prices quarter over quarter. Average crude oil sales prices, without derivative settlements, increased by $0.32 per barrel quarter over quarter to an average of $69.11 per barrel for the three months ended March 31, 2025 primarily due to an increase in NYMEX WTI.

NGL revenues. Our NGL revenues increased $13.3 million to $61.3 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The increase was primarily due to higher realized NGL prices quarter over quarter resulting in a $19.5 million increase, partially offset by a decrease of $6.2 million due to lower NGL production volumes sold quarter over quarter. Average NGL sales prices, without derivative settlements, increased by $4.11 per barrel quarter over quarter to an average of $14.18 per barrel for the three months ended March 31, 2025 primarily due to increases in the corresponding NGL product index prices.

Natural gas revenues. Our natural gas revenues increased $40.1 million to $85.9 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The increase was primarily due to higher natural gas realized prices quarter over quarter. Average natural gas sales prices, without derivative settlements, increased by $1.09 per Mcf quarter over quarter to $2.30 per Mcf for the three months ended March 31, 2025 primarily due to the seasonality of colder weather resulting in higher index prices quarter over quarter.

Purchased oil and gas sales. Purchased oil and gas sales decreased $278.8 million to $111.6 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. This decrease was primarily due to a decrease in the volume of crude oil purchased and subsequently sold quarter over quarter.

Three months ended March 31, 2025 as compared to three months ended March 31, 2024

Crude oil revenues. Our crude oil revenues increased $277.3 million to $956.1 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Our crude oil revenues increased $318.5 million due to our expanded operations as a result of the Arrangement. Excluding the increase from the Arrangement, crude oil revenues decreased $55.2 million due to lower crude oil realized prices, partially offset by an increase of $14.1 million due to higher crude oil production volumes sold. Average crude oil sales prices, without derivative settlements, decreased by $6.13 per barrel period over period to an average of $69.11 per barrel for the three months ended March 31, 2025 due to decreases in NYMEX WTI and widening in-basin differentials period over period.

NGL revenues. Our NGL revenues increased $14.1 million to $61.3 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Our NGL revenues increased $5.7 million due to our expanded operations as a result of the Arrangement. Excluding the increase from the Arrangement, NGL revenues increased $6.6 million due to higher realized NGL prices period over period, coupled with an increase of $1.4 million due to higher NGL production volumes sold. Average NGL sales prices, without derivative settlements, increased by $2.12 per barrel period over period to an average of $17.21 per barrel for the three months ended March 31, 2025 primarily due to increases in the corresponding NGL product index prices and improved differentials period over period.

Natural gas revenues. Our natural gas revenues increased $63.9 million to $85.9 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Our natural gas revenues increased $51.0 million due to our expanded operations as a result of the Arrangement. Excluding the increase from the Arrangement, natural gas revenues increased $13.2 million primarily due to higher average natural gas sales prices. Average natural gas sales prices, without derivative settlements, increased by $0.69 per Mcf period over period to $1.85 per Mcf for the three months ended March 31, 2025 primarily due to increases in index prices period over period.

Purchased oil and gas sales. Purchased oil and gas sales decreased $225.5 million to $111.6 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. This decrease was prim arily due to a decrease in the volume of crude oil purchased and subsequently sold period over period.

Expenses and other income (expense)

The following table summarizes our operating expenses and other income (expense) for the periods presented:

Three months ended March 31, 2025 as compared to three months ended December 31, 2024

Lease operating expenses. LOE decreased $8.4 million to $233.1 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The decrease was primarily due to lower variable and fixed costs quarter over quarter of $12.3 million primarily resulting from continued execution and operational improvements, offset by higher workover costs of $3.9 million quarter over quarter. LOE per Boe decreased $0.04 per Boe quarter over quarter to $9.56 per Boe for the three months ended March 31, 2025.

Purchased oil and gas expenses. Purchased oil and gas expenses decreased $279.3 million to $111.4 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024 primarily due to a decrease in the volume of crude oil purchased and subsequently sold quarter over quarter.

Production taxes. Production taxes decreased $14.3 million to $74.6 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The decrease was primarily due to a non-recurring refund related to certain North Dakota wells receiving an extraction tax exemption, which reduces the overall production tax rate, coupled with the impact of slightly lower crude oil sales quarter over quarter. The production tax rate as a percentage of crude oil, NGL and natural gas sales of 6.8% for the three months ended March 31, 2025 decreased from 8.4% for the three months ended December 31, 2024 primarily as a result of the extraction tax exemption for certain wells within the current quarter coupled with natural gas comprising a larger percentage of total sales relative to the prior quarter.

Depreciation, depletion and amortization. DD&A expense decreased $0.9 million to $349.8 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The decrease was primarily driven by lower production volumes of $14.0 million quarter over quarter, offset by $14.3 million related to a higher depletion rate quarter over quarter. The depletion rate increased $0.46 per Boe quarter over quarter to $14.09 per Boe for the three months ended March 31, 2025 primarily due to downward revisions to our proved reserves at December 31, 2024 largely driven by lower crude oil prices.

General and administrative expenses. G&A expenses decreased $7.3 million to $38.4 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The decrease was primarily attributable to various cost savings related to other G&A expenses of $5.6 million, coupled with a decrease in merger-related costs of $3.8 million. Merger-related costs for the three months ended March 31, 2025 and December 31, 2024 were $5.1 million and $9.0 million, respectively, and were primarily comprised of severance, legal and advisory expenses related to the Arrangement in both periods.

Gain on sale of assets, net. During the three months ended March 31, 2025 and December 31, 2024, we recorded a net gain on sale of assets of $5.5 million and $3.3 million, respectively, primarily related to the divestiture of certain oil and gas properties within each quarter.

Derivative instruments. We recorded a $20.3 million net loss on derivative instruments for the three months ended March 31, 2025, which was comprised of a net loss of $21.0 million associated with our commodity derivative contracts, offset by an unrealized gain of $0.7 million associated with a contract that includes contingent consideration. The net loss of $21.0 million on commodity derivative contracts included an unrealized loss of $20.7 million related to the change in fair value of our commodity derivative contracts primarily driven by an upward shift in the futures curve for forecasted commodity prices and a realized loss of $0.3 million on settled commodity derivative contracts. During the three months ended December 31, 2024, we recorded a $17.2 million net loss on derivative instruments, which was comprised of a net loss of $19.7 million associated with our commodity derivative contracts, partially offset by a gain of $2.5 million associated with a contract that includes contingent consideration. The net loss of $19.7 million on commodity derivative contracts included an unrealized loss of $24.8 million related to the change in fair value of our commodity derivative contracts primarily driven by an upward shift in the futures curve for forecasted commodity prices, partially offset by a realized gain of $5.1 million on settled commodity derivative contracts.

Investment in unconsolidated affiliate. We recorded a $4.9 million net loss related to our investment in Energy Transfer LP (“Energy Transfer”) for the three months ended March 31, 2025, which includedan unrealized loss of$7.3 million as a result of adecrease in the fair value of the investment during the quarter, partially offset by a gain of$2.4 million for a cash distribution from Energy Transfer during the quarter. During the three months ended December 31, 2024, we recorded a $28.0 million gain related to our investment in Energy Transfer due to an unrealized gain of $25.7 million as a result of an increase in the fair value of the investment during the quarter, coupled with a gain of $2.3 million for a cash distribution from Energy Transfer during the quarter.

Interest expense, net of capitalized interest. Interest expense decreased $1.8 million to $15.8 million for the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. The decrease was primarily due to lower borrowings on the Credit Facility (defined below) during the quarter, and the purchase and satisfaction and discharge of the $400.0 million 6.375% senior unsecured notes outstanding due June 1, 2026 (the “2026 Senior Notes”), partially offset by the issuance of the 2033 Senior Notes in March 2025. For the three months ended March 31, 2025, the weighted average borrowings outstanding under the Credit Facility were $383.4 million, and the weighted average interest rate incurred on the outstanding borrowings was 6.4%. For the three months ended December 31, 2024, the weighted average borrowings outstanding under the Credit Facility were $573.6 million, and the weighted average interest rate incurred on the outstanding borrowings was 6.9%. Interest capitalized during the three months ended March 31, 2025 and December 31, 2024 was $1.1 million and $1.2 million, respectively.

Loss on debt extinguishment. On March 13, 2025, we paid an aggregate of $409.1 million to purchase and satisfy and discharge the 2026 Senior Notes, resulting in a loss on debt extinguishment of $3.5 million for the three months ended March 31, 2025. The loss primarily included the write-off of unamortized debt issuance costs of $2.1 million and a premium paid to redeem a portion of the 2026 Senior Notes of $1.1 million.

Income tax expense. Our effective tax rate was recorded at 25.0% and 18.8% of pre-tax income for the three months ended March 31, 2025 and December 31, 2024, respectively. The effective tax rate for the three months ended March 31, 2025 was higher than the statutory federal rate of 21% primarily as a result of the impact of state income taxes and deferred taxes on unremitted earnings. The effective tax rate for the three months ended December 31, 2024 was lower than the statutory federal rate of 21% primarily as a result of reducing the blended state tax rate at which our deferred tax assets and liabilities were recorded, coupled with recognizing a benefit for transaction costs recorded during the three months ended December 31, 2024.

Three months ended March 31, 2025 as compared to three months ended March 31, 2024

Lease operating expenses. LOE increased $73.9 million to $233.1 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily driven by our expanded operations after the Arrangement contributing $62.8 million of additional LOE period over period, increased fixed costs of $8.8 million and increased workover costs of $6.4 million. LOE per Boe decreased $0.83 per Boe period over period to $9.56 per Boe for the three months ended March 31, 2025 primarily due to operational synergies achieved through the Arrangement.

Gathering, processing and transportation expenses. GPT expenses increased $19.3 million to $73.3 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to our expanded operations after the Arrangement contributing $29.5 million of additional GPT expenses. This increase was partially offset by lower transportation rates of $5.6 million, primarily due to several contracts expiring during the year ended December 31, 2024, and lower fair value losses of $3.2 million attributable to the completion of a derivative transportation contract in June 2024. This net increase resulted in an increase in GPT expenses of $0.51 per Boe period over period to $3.01 per Boe for the three months ended March 31, 2025.

Purchased oil and gas expenses. Purchased oil and gas expenses decreased $224.4 million to $111.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to a decrease in the volume of crude oil purchased and subsequently sold period over period.

Production taxes. Production taxes increased $10.7 million to $74.6 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to an overall increase in crude oil sales period over period and included a $29.9 million increase in production taxes attributable to our expanded operations after the Arrangement. This increase was partially offset by lower crude oil prices period over period and a reduction in the production tax rate during the three months ended March 31, 2025 primarily due to a non-recurring refund related to certain North Dakota wells receiving an extraction tax exemption. The production tax rate as a percentage of crude oil, NGL and natural gas sales decreased from 8.5% for the three months ended March 31, 2024 to 6.8% for the three months ended March 31, 2025 primarily due to a non-recurring refund related to the extraction tax exemption for certain wells within the current quarter coupled with natural gas comprising a larger percentage of total sales relative to the prior period.

Depreciation, depletion and amortization. DD&A expense increased $180.9 million to $349.8 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to $106.5 million of additional depletion expense due to a higher depletion rate period over period, coupled with $74.1 million of additional DD&A expense related to an overall increase in production volumes, mainly due to our expanded operations after the Arrangement. The depletion rate increased $3.47 per Boe period over period to $14.09 per Boe for the three months ended March 31, 2025 primarily due to the purchase consideration allocated to the fair value of the oil and gas properties acquired in the Arrangement.

General and administrative expenses. G&A expenses increased $12.7 million to $38.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to an increase in costs associated with a larger organization after the Arrangement of $15.7 million, partially offset by decreased merger-related costs of $3.0 million. Merger-related costs for the three months ended March 31, 2025 and 2024 were $5.1 million and $8.1 million, respectively, and were primarily comprised of severance, legal and advisory expenses related to the Arrangement in both periods.

Exploration and impairment. Exploration and impairment expenses decreased $4.2 million to $2.0 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to a lower of cost or net realizable value write down of oil-in-tank inventory recorded during the three months ended March 31, 2024.

Gain on sale of assets, net. During the three months ended March 31, 2025 and 2024, we recorded a net gain on sale of assets of $5.5 million and $1.3 million, respectively, primarily related to the divestiture of certain oil and gas properties within each period.

Derivative instruments. During the three months ended March 31, 2025, we recorded a $20.3 million net loss on derivative instruments, which was comprised of a net loss of $21.0 million associated with our commodity derivative contracts and an unrealized gain of $0.7 million associated with a contract that includes contingent consideration. The net loss of $21.0 million on commodity derivative contracts included an unrealized loss of $20.7 million related to the change in fair value of our commodity derivative contracts primarily driven by an upward shift in the futures curve for forecasted commodity prices and a realized loss of $0.3 million on settled commodity derivative contracts. During the three months ended March 31, 2024, we recorded a $27.6 million net loss on derivative instruments, which was comprised of a net loss of $31.0 million associated with our commodity derivative contracts, partially offset by an unrealized gain of $3.4 million associated with a contract that includes contingent consideration. The net loss of $31.0 million on commodity derivative contracts included an unrealized loss of $29.6 million related to the change in fair value of our commodity derivative contracts primarily driven by an upward shift in the futures curve for forecasted commodity prices and a realized loss of $1.4 million on settled commodity derivative contracts.

Investment in unconsolidated affiliate. We recorded a $4.9 million net loss related to our investment in Energy Transfer for the three months ended March 31, 2025, which included an unrealized loss of $7.3 million as a result of a decrease in the fair value of the investment during the period, offset by a gain of $2.4 million for cash distributions from Energy Transfer during the period. During the three months ended March 31, 2024, we recorded a gain of $16.3 million related to our investment in Energy Transfer, which primarily included an unrealized gain of $14.0 million as a result of an increase in the fair value of the investment during the period, coupled with a gain of $2.3 million for cash distributions from Energy Transfer during the period.

Interest expense, net of capitalized interest. Interest expense increased $8.2 million to $15.8 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase is primarily due to higher borrowings outstanding on the Credit Facility (defined below) period over period and the issuance of the 2033 Senior Notes in March 2025, partially offset by the purchase and satisfaction and discharge of the 2026 Senior Notes in March 2025. For the three months ended March 31, 2025, the weighted average borrowings outstanding under the Credit Facility were $383.4 million, and the weighted average interest rate incurred on the outstanding borrowings was 6.4%. During the three months ended March 31, 2024, we incurred no borrowings under the Credit Facility, resulting in a weighted average interest rate of 0.0%. Interest capitalized during the three months ended March 31, 2025 and March 31, 2024 was $1.1 million and $0.7 million, respectively.

Loss on debt extinguishment. On March 13, 2025, we paid an aggregate of $409.1 million to purchase and satisfy and discharge the 2026 Senior Notes, resulting in a loss on debt extinguishment of $3.5 million for the three months ended March 31, 2025. The loss primarily included the write-off of unamortized debt issuance costs of $2.1 million and a premium paid to redeem a portion of the 2026 Senior Notes of $1.1 million.

Income tax expense. Our effective tax rate was recorded at 25.0% and 22.4% of pre-tax income for the three months ended March 31, 2025 and March 31, 2024, respectively. Our effective tax rate for the three months ended March 31, 2025 was higher than the statutory federal rate of 21% primarily as a result of the impact of state income taxes and deferred taxes on unremitted earnings. The effective tax rate for the three months ended March 31, 2024 was higher than the statutory federal rate of 21% primarily as a result of the impact of state income taxes.