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Investing.com - Piper Sandler has raised its price target on Chord Energy Corp (NASDAQ:CHRD) to $169.00 from $166.00 while maintaining an Overweight rating following the company’s acquisition announcement. The company, currently trading at $102.31, appears undervalued according to InvestingPro’s Fair Value model, with 4 analysts recently revising earnings estimates upward.
Chord Energy has agreed to acquire Williston Basin assets from XOM for $550 million, adding 48,000 net acres in the FBIR, 9 mboe/d of low-decline production, and 90 net two-mile equivalent locations. The company expects approximately 80% of these locations to be developed with three- and four-mile laterals. With a market capitalization of $5.82 billion and operating with moderate debt levels, Chord Energy maintains a strong financial health score of "GREAT" according to InvestingPro’s comprehensive analysis.
The acquisition will be funded through a combination of cash and debt, with the transaction expected to close by year-end 2025. Chord projects it is paying over $300 million for the PDP, implying less than $3 million per undeveloped location with inventory delivering a WTI break-even in the $40s. The company’s strong financial position is reflected in its impressive 5.27% dividend yield and robust annual revenue of nearly $5 billion.
As part of the transaction, Chord Energy is adjusting its shareholder return framework to 50% of free cash flow through the first half of 2025, with plans to return to a 75% return rate in the second half of 2026.
Piper Sandler’s price target adjustment reflects revised estimates following the acquisition announcement, with the firm maintaining its Overweight rating on Chord Energy stock.
In other recent news, Chord Energy Corporation reported its financial results for the second quarter of 2025, revealing mixed outcomes. The company’s earnings per share (EPS) were $1.79, which did not meet the projected $1.94, resulting in a 7.73% negative surprise. However, Chord Energy’s revenue exceeded expectations, reaching $1.18 billion, which is 12.38% higher than the anticipated $1.05 billion. In addition to its earnings report, Chord Energy announced a significant acquisition. The company has entered into a definitive agreement to acquire Williston Basin assets from XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, for $550 million in cash. This acquisition includes 48,000 net acres with an 86% operated working interest, and the assets currently produce approximately 9,000 barrels of oil equivalent per day, with 78% being oil production. These developments mark important strategic moves for Chord Energy.
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