Chord Energy Corp

As of March 31, 2025, we had $1,944.9 million of liquidity available, including $35.8 million in cash and cash equivalents and $1,909.2 million of aggregate unused borrowing capacity available under the Credit Facility (defined below). Our primary sources of liquidity were from cash on hand, cash flows from operations, available borrowing capacity under the Credit Facility and proceeds from the issuance of the 2033 Senior Notes. Our primary liquidity requirements were capital expenditures for the development of oil and gas properties, dividend payments, debt repayments, share repurchases and working capital requirements.

Our cash flows depend on many factors, including the price of crude oil, NGLs and natural gas and the success of our development and exploration activities as well as future acquisitions. Our material cash requirements from known obligations include repayment of outstanding borrowings and interest payment obligations related to our long-term debt, obligations to plug, abandon and remediate our oil and gas properties at the end of their productive lives, payment of income taxes, obligations associated with outstanding commodity derivative contracts that settle in a loss position, obligations to pay dividends on vested equity awards that include dividend equivalent rights and obligations associated with our leases. In addition, we have announced a return of capital plan pursuant to which we intend to return capital to stockholders through dividend payouts, supplemented by opportunistic share repurchases. On a quarterly basis, we pay a commitment fee on the average amount of borrowing base capacity not utilized during the quarter and fees calculated on the average amount of letter of credit balances outstanding during the quarter.

Capital availability will be affected by prevailing conditions in our industry, the global economy, the global banking and financial markets, stakeholder scrutiny of sustainability matters and other factors, many of which are beyond our control. The U.S. Federal Reserve recently decreased interest rates, however the potential for such rates to decrease further or to remain elevated for an extended period of time has created additional economic uncertainty. Although we are unable to predict future interest rates, this disruption to the broader economy and financial markets may reduce our ability to access capital or result in such capital being available on less favorable terms, which could in the future negatively affect our liquidity. We believe, however, we have adequate liquidity to fund our capital expenditures and meet our contractual obligations during the next 12 months and the foreseeable future.

Enerplus Arrangement. In connection with the consummation of the Arrangement on May 31, 2024, we paid $375.8 million, or $1.84 per Enerplus common share, to Enerplus shareholders. In addition, we paid $395.0 million to settle Enerplus’ revolving bank credit facility balance and $102.4 million to settle all outstanding Enerplus equity-based compensation awards, as well as $5.9 million in retention bonuses paid to Enerplus employees.

Also in connection with the Arrangement, we incurred certain costs for advisory, legal and other third-party fees which were recorded to G&A expenses on the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2025, we incurred merger-related costs of $5.1 million, primarily related to severance costs and legal and advisory services.

Commodity derivative contracts. We actively manage our exposure to commodity price fluctuations by executing derivative transactions to mitigate the impact of changes in crude oil, NGL and natural gas prices on our production, which mitigates our exposure to crude oil, NGL and natural gas price declines; however, these transactions may also limit our cash flow in periods of rising crude oil, NGL and natural gas prices.

As of March 31, 2025, our commodity derivative contracts cover 8,979 MBbls of our crude oil production and 26,077,600 MMBtu of our natural gas production for 2025, 5,181 MBbls of our crude oil production and 25,935,000 MMBtu of our natural gas production for 2026 and 180 MBbls of our crude oil production for 2027. See “Item 3. Quantitative and Qualitative Disclosures about Market Risk” for additional information.

Commitments. We also have contracts which include provisions for the delivery, transport or purchase of a minimum volume of crude oil, NGLs, natural gas and water within specified time frames, the majority of which are five years or less. Under the terms of these contracts, if we fail to deliver, transport or purchase the committed volumes we will be required to pay a deficiency payment for the volumes not tendered over the duration of the contract. The estimable future commitments under these agreements were $526.6 million as of March 31, 2025. We believe that for the substantial majority of these agreements our future production will be adequate to meet our delivery commitments or that we will be able to purchase sufficient volumes of crude oil, NGLs and natural gas from third parties to satisfy our minimum volume commitments. See “Item 8. Financial Statements and Supplementary Data—Note 21—Commitments and Contingencies” in our 2024 Annual Reportfor additional information on our volume delivery commitments.

Long-term debt

Revolving credit facility. As of March 31, 2025, we had a senior secured revolving credit facility (the “Credit Facility”) with a borrowing base of $2.75 billion and elected commitments of $2.0 billion that is due July 1, 2027. As of March 31, 2025, we had $60.0 million borrowings outstanding and $30.8 million of outstanding letters of credit, resulting in an unused borrowing capacity of $1.9 billion. Additionally, we are permitted to incur term loans in addition to the revolving loans provided under the Credit Facility. We were in compliance with the financial covenants under the Credit Facility as of March 31, 2025. See “Item 1. Financial Statements (Unaudited)—Note 10—Long-Term Debt” for additional information.

2033 Senior Notes. On March 13, 2025, we issued in a private placement $750.0 million of 6.750% senior unsecured notes due March 15, 2033 (the “2033 Senior Notes”). Interest on the 2033 Senior Notes is payable semi-annually on March 15 and September 15 of each year. The 2033 Senior Notes were issued at par and resulted in proceeds of $738.8 million, after deducting underwriters’ discounts, commissions and other expenses. The proceeds were used to repurchase the 2026 Senior Notes (defined below) tendered in a concurrent tender offer, to satisfy and discharge the remaining 2026 Senior Notes not tendered in the concurrent tender offer (which will be redeemed on or about June 1, 2025) and to repay a portion of the borrowings outstanding under the Credit Facility. In connection with the issuance of the 2033 Senior Notes, we recorded deferred financing costs of $11.2 million.

2026 Senior Notes. As of December 31, 2024, we had $400.0 million of 6.375% 2026 Senior Notes outstanding that mature on June 1, 2026 (the “2026 Senior Notes”). Interest on the 2026 Senior Notes was payable semi-annually on June 1 and December 1 of each year. Concurrent with the issuance of the 2033 Senior Notes on March 13, 2025, we paid an aggregate of $409.1 million, including $7.7 million of accrued interest, to purchase $366.3 million of outstanding 2026 Senior Notes tendered in a concurrent tender offer and to satisfy and discharge the remaining $33.7 million of outstanding 2026 Senior Notes, which will be redeemed on or about June 1, 2025. See “Item 1. Financial Statements (Unaudited)—Note 10—Long-Term Debt” for additional information.

Cash Flows

Our cash flows for the three months ended March 31, 2025 and 2024 are presented below:

Cash flows provided by operating activities

Our net cash flows from operating activities are primarily impacted by commodity prices, production volumes and operating costs. Net cash provided by operating activities was $656.9 million for the three months ended March 31, 2025. The increase in net cash provided by operating activities of $250.2 million as compared to the three months ended March 31, 2024 was primarily due to our expanded operations due to the Arrangement, including an increase in oil revenues, offset by increases in LOE, GPT expenses, G&A expenses and production taxes, as well as changes in our working capital. See “Results of Operations” above for additional information.

Working Capital. Our working capital is primarily impacted by the factors discussed above, coupled with the timing of cash receipts and disbursements. Changes in working capital (as reflected in the Condensed Consolidated Statements of Cash Flows) increased net cash flows from operating activities by $37.2 million during the three months ended March 31, 2025 and decreased net cash flows from operating activities by $9.8 million during the three months ended December 31, 2024. Changes in working capital associated with our capital expenditure activities and settlement of outstanding commodity derivative instruments impact our cash flows from investing activities.

The Credit Facility includes a requirement that we maintain a Current Ratio (as defined in the Credit Facility) of no less than 1.0 to 1.0 as of the last day of any fiscal quarter. For purposes of the Current Ratio, the Credit Facility’s definition of total current assets includes unused commitments under the Credit Facility, which were $1.9 billion at March 31, 2025, and excludes current hedge assets, which were $32.8 million at March 31, 2025. For purposes of the Current Ratio, the Credit Facility’s definition of total current liabilities excludes current hedge liabilities, which were $16.3 million at March 31, 2025.

Cash flows used in investing activities

For the three months ended March 31, 2025, net cash used in inve sting activities of $292.3 million was primarily attributable to capital expenditures incurred to develop our oil and gas properties of $308.9 million and $17.9 million paid primarily for acreage in the Williston Basin, partially offset by the receipt of the 2024 contingent consideration earn-out payment of $25.0 million. Net cash used in investing activities for the three months ended March 31, 2024 of $204.9 million was primarily attributable tocapital expenditures of $222.1 million and the settlement of derivative contracts of $12.1 million, partially offset by the receipt of the 2023 contingent consideration earn-out payment of $25.0 million.

Cash flows used in financing activities

For the three months ended March 31, 2025, net cash used in finan cing activities of $365.8 million was primarily attributable to repayments of 2026 Senior Notes totaling $401.4 million, payments to repurchase our common stock of $215.2 million, dividends paid to shareholders of $86.5 million, payments for income tax withholdings on vested equity-based compensation awards of $14.4 million, payment of debt issuance costs of $13.0 million primarily in connection with the issuance of the 2033 Senior Notes and repayments under the Credit Facility of $1.4 billion, partially offset by borrowings $1.1 billion, resulting in net repayments under the Credit Facility of $385.0 million. These uses of cash were partially offset by proceeds from the issuance of the 2033 Senior Notes of $750.0 million. Net cash used in financing activities for the three months ended March 31, 2024 of $223.5 million was primarily attributable to dividends paid to shareholders of $152.4 million, income tax withholdings on vested equity-based compensation awards of $46.1 million andpayments torepurchase our common stockof$32.0 million, partially offset by proceeds from the exercise of outstanding warrants of $7.4 million.

Capital Expenditures

Expenditures for the acquisition and development of oil and gas properties are the primary use of our capital resources. Our capital expenditures are summarized in the following table for the period presented:

(1)Total capital expenditures reflected in the table above differs from the amounts shown in the statements of cash flows in our unaudited condensed consolidated financial statements because amounts reflected in the table include changes in accruals, while the amounts presented in the statements of cash flows are presented on a cash basis.

Dividends

On May 6, 2025, we 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. See “Item 1. Financial Statements (Unaudited)—Note 14—Stockholders’ Equity” for additional information.

See “Part I. Item 1.—Business—Business Strategy” in our 2024 Annual Report for additional information regarding our strategy on future dividend payments. Future dividend payments will depend on the Company’s earnings, financial condition, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends and other considerations that the Board of Directors deems relevant.

Share Repurchase Program

During the three months ended March 31, 2025, we repurchased 1,994,496 shares of common stock at a weighted average price of $108.54 per common share for a total cost of $216.5 million under our $750.0 million share repurchase program authorized by our Board of Directors in October 2024. As of March 31, 2025, there was $376.1 million of capacity remaining under our $750.0 million share repurchase program.

During the three months ended March 31, 2024, we repurchased 193,269 shares of common stock under our previous share repurchase program, which was replaced by our current $750.0 million share repurchase program in October 2024.