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Investing.com - BofA Securities has raised its price target on Chord Energy Corp (NASDAQ:CHRD) to $123.00 from $112.00 while maintaining a Buy rating on the stock. The $6.06 billion market cap company, which currently trades at $106.54, has earned a "GREAT" financial health rating according to InvestingPro analysis, with notably strong profitability and cash flow metrics.
The price target increase follows Chord Energy’s September 15 announcement of plans to acquire a $550 million bolt-on from XTO Energy, with an effective date of September 1 and expected closing by year-end.
The acquisition will add 90 net 10,000 lateral foot equivalent locations and 9 mboed (78% oil) of low decline (23%) production to Chord Energy’s portfolio, according to BofA Securities.
Chord Energy plans to finance the transaction with cash on hand and capacity on its revolver, with post-transaction adjusted net leverage expected to be between 0.5x and 0.6x.
The acquisition will shift Chord Energy’s capital return strategy from 75%+ to 50%+, BofA Securities noted in its analysis while reiterating its Buy rating on the stock.
In other recent news, Chord Energy Corporation reported mixed financial results for the second quarter of 2025. The company’s revenue exceeded expectations, reaching $1.18 billion compared to the anticipated $1.05 billion, representing a 12.38% positive surprise. However, earnings per share (EPS) fell short, posting $1.79 against a forecast of $1.94, marking a 7.73% negative surprise. In addition to its financial performance, Chord Energy announced a significant acquisition, agreeing to purchase Williston Basin assets from XTO Energy, a subsidiary of Exxon Mobil, for $550 million. This acquisition includes 48,000 net acres and production of approximately 9,000 barrels of oil equivalent per day, with a high percentage of oil production. Analyst firms have responded to these developments, with UBS raising its price target for Chord Energy to $130 and maintaining a Buy rating, while Piper Sandler increased its target to $169 with an Overweight rating. Meanwhile, TD Cowen reiterated a Hold rating and a price target of $105. These recent developments highlight Chord Energy’s strategic moves and financial performance.
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