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HOUSTON - Chord Energy Corporation (NASDAQ:CHRD), a $6 billion market cap energy company with nearly $5 billion in annual revenue, announced Tuesday it has upsized and priced a private placement of senior unsecured notes from the previously announced $500 million to $750 million. The 6.000% senior notes, due in 2030, were priced at par. According to InvestingPro data, the company currently operates with a moderate level of debt, maintaining a healthy debt-to-equity ratio of 0.12.
The offering is expected to close on September 30, 2025, subject to customary closing conditions. The notes will be guaranteed by Chord’s existing subsidiaries and future domestic subsidiaries that guarantee the company’s senior secured revolving credit facility.
Chord plans to use the proceeds to fund its pending acquisition of oil and gas assets in the Williston Basin from XTO Energy, Inc., pay related expenses, cover fees associated with the notes offering, and for general corporate purposes including repayment of borrowings under its revolving credit facility.
The notes include a "special mandatory redemption" provision if the XTO acquisition does not occur by June 30, 2026, which may be extended to September 30, 2026. Under this provision, the company would redeem the notes at 100% of principal plus accrued interest, or at 101% if the redemption occurs after June 30, 2026.
The notes have not been registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S.
Chord Energy describes itself as an independent exploration and production company with assets primarily in the Williston Basin, focused on capital discipline and generating free cash flow through efficient operations. The company maintains a "GREAT" financial health score according to InvestingPro analysis, with strong EBITDA of $2.58 billion and an attractive dividend yield of 5.27%. For detailed insights and additional analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
This article is based on a press release statement from Chord Energy Corporation.
In other recent news, Chord Energy Corporation has announced a definitive agreement to acquire Williston Basin assets from XTO Energy, a subsidiary of Exxon Mobil, for $550 million in cash. The acquisition includes 48,000 net acres with an 86% operated working interest and is expected to close by year-end. This strategic move is set to add approximately 9,000 barrels of oil equivalent per day to Chord Energy’s production, with 78% of it being oil. Analysts have reacted positively, with BofA Securities raising its price target to $123 and UBS increasing it to $130, both maintaining a Buy rating. Piper Sandler also raised its price target to $169, citing the acquisition’s potential benefits. Meanwhile, TD Cowen reiterated its Hold rating with a price target of $105, noting the acquisition will be funded through available cash and debt. The acquisition has been described as opportunistic and strategic, positioning Chord Energy to capitalize on low-decline production and extensive development opportunities.
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