Chord Energy stock maintains Buy rating at UBS with $113 price target

Published 01/07/2025, 12:46
Chord Energy stock maintains Buy rating at UBS with $113 price target

Investing.com - UBS maintained its Buy rating and $113.00 price target on Chord Energy Corp (NASDAQ:CHRD) in a research note released Tuesday. According to InvestingPro analysis, the stock appears undervalued, with a P/E ratio of just 6.29 and an attractive dividend yield of 6.88%.

UBS analyst Josh Silverstein forecasts second-quarter 2025 adjusted EBITDA of $527 million, slightly below the Street consensus of $537 million. For context, Chord Energy’s last twelve months EBITDA stands at $2.54 billion, with InvestingPro data showing the company maintains a GREAT financial health score and has been aggressively buying back shares. The firm projects total production of approximately 273,000 barrels of oil equivalent per day (mboepd), which aligns with Street estimates and represents less than 1% quarter-over-quarter growth.

The production forecast falls within Chord Energy’s guidance range of 268,000-275,000 mboepd. Oil production specifically is projected at approximately 155,000 barrels per day, also in line with Street expectations.

UBS anticipates capital expenditures of $370 million for the quarter, which hits the midpoint of the company’s guidance and represents the highest quarterly spending level for fiscal year 2025. The second quarter of 2025 includes plans for 45 turn-in-line (TIL) wells, the most of any period this year.

The projected capital intensity aligns with Chord Energy’s development schedule, which features the highest number of wells being brought online during the second quarter compared to other periods in the fiscal year.

In other recent news, Chord Energy Corp reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $4.04, which exceeded analyst expectations of $3.38. However, the company reported a revenue of $1.1 billion, falling short of the forecasted $1.16 billion. Despite the revenue miss, Chord Energy maintained leverage at 0.3x and reduced its full-year capital guidance by $30 million. The company has expanded its four-mile lateral program, achieving cost savings, which is part of its strategy to enhance operational efficiency. Chord Energy also reported adjusted free cash flow of $291 million and repurchased $216.5 million in shares during the quarter. Analysts have noted the company’s strategic focus on innovation and operational efficiency as a positive sign. The oil price environment remains challenging, and Chord Energy continues to adopt a conservative hedging strategy. These developments underscore the company’s efforts to manage costs and improve efficiency amid a volatile market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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