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Investing.com - UBS raised its price target on Chord Energy Corp (NASDAQ:CHRD) to $130.00 from $122.00 on Tuesday, maintaining a Buy rating following the company’s acquisition announcement. The company, currently trading at $105.96 with a market capitalization of $6.03 billion, appears undervalued according to InvestingPro analysis. With a strong dividend yield of 5.27% and impressive revenue growth of 19.7%, Chord Energy maintains a GREAT financial health score.
Chord Energy has agreed to purchase Williston assets from Exxon Mobil for $550 million, a move UBS describes as "opportunistic" and "strategic" for the company’s operations.
The acquisition will enable Chord Energy to further scale its transition to 3- and 4-mile laterals, which UBS identifies as a key component of the company’s forward outlook.
UBS projects the deal will be approximately 5% accretive to Chord’s fiscal year 2026 cash flow per share at a $61 per barrel WTI price deck, while maintaining leverage near 0.5x.
The transaction will temporarily reduce shareholder returns to 50% of free cash flow from the previous 75+% until leverage declines below 0.5x, according to UBS’s analysis.
In other recent news, Chord Energy Corporation has reported mixed financial results for the second quarter of 2025. The company exceeded revenue expectations with $1.18 billion, surpassing the anticipated $1.05 billion by 12.38%. However, its earnings per share (EPS) fell short, posting $1.79 against a forecast of $1.94, marking a 7.73% negative surprise. In a significant strategic move, Chord Energy announced a $550 million acquisition of Williston Basin assets from XTO Energy, a subsidiary of Exxon Mobil . This acquisition will be funded entirely through available cash and debt, adding 48,000 net acres and approximately 9,000 barrels of oil equivalent per day to Chord’s portfolio. Analysts have responded to these developments, with Piper Sandler raising its price target for Chord Energy to $169 while maintaining an Overweight rating. Meanwhile, TD Cowen reiterated its Hold rating with a price target of $105. These recent developments highlight Chord Energy’s efforts to expand its asset base while navigating mixed financial performance.
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