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Investing.com - Piper Sandler has reduced its price target on Chord Energy Corp (NASDAQ:CHRD) to $159.00 from $161.00 while maintaining an Overweight rating on the stock. With the current stock price at $97.12, analyst targets ranging from $100 to $163 suggest significant upside potential. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate.
The adjustment comes as Chord Energy reported stronger production and lower capital expenditure in Q1 2025, leading the company to reduce its full-year 2025 capital expenditure guidance to $1.37 billion from $1.40 billion while maintaining volume guidance. The company maintains a strong financial position with a "GREAT" health score from InvestingPro, offering an attractive 6.88% dividend yield while operating with moderate debt levels.
Piper Sandler noted that Chord Energy’s three-mile laterals, which comprised 61% of year-to-date completions (up from 21% in 2023 and 42% in 2024), are showing consistent oil cumulative production despite an overall weakness in cumulative production timing related to ERF wells. With robust cash flows and strong profitability metrics, including a 52.88% gross profit margin, the company demonstrates operational efficiency. Discover more insights with InvestingPro, which offers 8 additional key tips about Chord Energy’s performance and prospects.
The research firm’s analysis indicates that three-mile laterals, expected to make up approximately two-thirds of future activity, have maintained stable three-month oil cumulative production of around 61,000 barrels (normalized to 15,000 feet) in 2025, consistent with recent years.
At current strip pricing, Piper Sandler models Chord Energy’s three-mile laterals at a 46% internal rate of return with a $4.6 million net present value per well and a $45 per barrel WTI breakeven, compared to two-mile laterals which show a 68% IRR, $6.4 million NPV per well, and a lower $31 per barrel breakeven.
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 revenue of $1.1 billion, falling short of the forecasted $1.16 billion. Additionally, Chord Energy reduced its full-year capital guidance by $30 million, reflecting improved program efficiencies. In terms of future projections, UBS maintained a Buy rating on Chord Energy, with a price target of $113, and forecasted a second-quarter 2025 adjusted EBITDA of $527 million. The firm also expects total production to be approximately 273,000 barrels of oil equivalent per day, aligning with Street estimates. UBS anticipates capital expenditures of $370 million for the quarter, marking the highest quarterly spending level for fiscal year 2025. These developments highlight the company’s strategic focus on efficiency and cost management amid a challenging oil price environment.
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