Chord Energy Corp

Results of Operations

Operational and Financial Highlights

•Production volumes averaged 275,615 Boepd (57% oil), including average daily crude oil volumes of 158,027 Bopd in the first quarter of 2026.

•Capital expenditures (excluding capitalized interest) were $344.9 million in the first quarter of 2026.

•Lease operating expenses (“LOE”) were $9.87 per Boe in the first quarter of 2026.

•Net cash provided by operating activities was $507.5 million and net income was $108.6 million for the first quarter of 2026.

Shareholder Return Highlights

•Paid $1.30 per share base cash dividend on March 27, 2026.

•Repurchased $70.7 million of common stock (excluding accrued excise taxes) in the first quarter of 2026.

•Declared a base cash dividend of $1.30 per share of common stock. The dividend will be payable on June 5, 2026 to shareholders of record as of May 20, 2026.

Net Income

We had net income of $108.6 million for the three months ended March 31, 2026, which decreased 51% as compared to $219.8 million for the three months ended March 31, 2025, primarily due to an unrealized loss on our commodity derivative contracts driven by an upward shift in the crude oil futures curve. Additional impacts on net income from increases and decreases in certain revenues and expenses are further explained below.

Revenues

Our crude oil, NGL and natural gas revenues are derived from the sale of crude oil, NGL and natural gas production. These revenues do not include the effects of derivative instruments and may vary significantly from period to period as a result of changes in volumes of production sold and/or changes in commodity prices. Our purchased oil and gas sales are derived from the sale of crude oil and natural gas purchased through our marketing activities primarily to optimize transportation costs, for blending to meet pipeline specifications or to cover production shortfalls. Revenues and expenses from crude oil and natural gas sales and purchases are generally recorded on a gross basis, as we act as a principal in these transactions by assuming control of the purchased crude oil or natural gas before it is transferred to the counterparty. In certain cases, we enter into sales and purchases with the same counterparty in contemplation of one another, and these transactions are recorded on a net basis.

The following table summarizes our revenues, production and average realized prices for the periods presented:

(1)For the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, natural gas production volume from the Marcellus Shale was 11,745 MMcf, 10,950 MMcf and MMcf 11,563, respectively. The related realized natural gas price prior to the effect of derivative settlements was $6.40 per Mcf, $3.19 per Mcf and $4.71 per Mcf for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(2)The effect of derivative settlements includes the gains or losses on commodity derivatives for contracts ending in the periods presented. Our commodity derivatives do not qualify for or were not designated as hedging instruments for accounting purposes.

Three months ended March 31, 2026 as compared to three months ended December 31, 2025

Crude oil revenues. Our crude oil revenues increased $195.3 million to $996.3 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The increase was primarily due to higher crude oil realized prices quarter over quarter resulting in a $185.2 million increase, coupled with an increase of $10.1 million due to higher crude oil production volumes sold quarter over quarter. Average crude oil sales prices, without derivative settlements, increased by $13.15 per barrel quarter over quarter to an average of $70.05 per barrel for the three months ended March 31, 2026 primarily due to an increase in NYMEX WTI.

NGL revenues. Our NGL revenues increased $14.7 million to $38.2 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The increase was primarily due to higher realized NGL prices quarter over quarter resulting in a $18.3 million increase, partially offset by a decrease of $3.6 million due to lower NGL production volumes sold quarter over quarter. Average NGL sales prices, without derivative settlements, increased by $3.78 per barrel quarter over quarter to an average of $8.66 per barrel for the three months ended March 31, 2026 primarily due to increases in the corresponding NGL product index prices for butane and pentane.

Natural gas revenues. Our natural gas revenues increased $64.0 million to $116.1 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The increase was primarily due to higher natural gas realized prices quarter over quarter resulting in a $64.5 million increase, partially offset by a decrease of $0.5 million due to lower natural gas production volumes sold quarter over quarter. Average natural gas sales prices, without derivative settlements, increased by $1.74 per Mcf quarter over quarter to $3.14 per Mcf for the three months ended March 31, 2026 primarily due to the seasonality of colder weather resulting in higher index prices quarter over quarter.

Purchased oil and gas sales. Purchased oil and gas sales increased $222.2 million to $515.0 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. This increase was primarily due to an increase in the volume of crude oil purchased and subsequently sold quarter over quarter, coupled with increased crude oil prices over the same period.

Three months ended March 31, 2026 as compared to three months ended March 31, 2025

Crude oil revenues. Our crude oil revenues increased $40.2 million to $996.3 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase was primarily due to higher crude oil production volumes sold period over period resulting in a $27.1 million increase, coupled with an increase of $13.1 million due to higher crude oil realized prices period over period. Average crude oil sales prices, without derivative settlements, increased by $0.94 per barrel period over period to an average of $70.05 per barrel for the three months ended March 31, 2026 primarily due to an increase in NYMEX WTI.

NGL revenues. Our NGL revenues decreased $23.1 million to $38.2 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The decrease was primarily due to lower realized NGL prices period over period resulting in a $23.9 million decrease, partially offset by an increase of $0.8 million due to higher NGL production volumes sold period over period. Average NGL sales prices, without derivative settlements, decreased by $5.52 per barrel period over period to an average of $8.66 per barrel for the three months ended March 31, 2026 primarily due to decreases in the corresponding NGL product index prices.

Natural gas revenues. Our natural gas revenues increased $30.1 million to $116.1 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase was primarily due to higher natural gas realized prices period over period resulting in a $31.0 million increase, partially offset by a decrease of $0.9 million due to lower natural gas production volumes sold period over period. Average natural gas sales prices, without derivative settlements, increased by $0.84 per Mcf period over period to $3.14 per Mcf for the three months ended March 31, 2026 primarily due to increases in the corresponding natural gas index prices period over period.

Purchased oil and gas sales. Purchased oil and gas sales increased $403.4 million to $515.0 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. This increase was prim arily due to anincrease in the volume of crude oil purchased and subsequently sold period over period.

Expenses and other income (expense)

The following table summarizes our operating expenses and other income (expense) for the periods presented:

Three months ended March 31, 2026 as compared to three months ended December 31, 2025

Lease operating expenses. LOE increased $0.9 million to $244.9 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The increase was primarily due to higher workover activity and costs of $7.2 million and an increase in operating costs from our non-operated assets of $1.2 million, partially offset by lower fixed costs of $4.8 million and lower water costs of $3.5 million quarter over quarter. The same factors contributed to an increase in LOE per BOE, which increased $0.15 per Boe quarter over quarter to $9.87 per Boe for the three months ended March 31, 2026.

Gathering, processing and transportation expenses. GPT expenses decreased $3.4 million to $67.0 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The decrease was primarily due to a decrease in NGL and natural gas production volumes of $3.0 million quarter over quarter. GPT expenses decreased $0.11 per Boe quarter over quarter to $2.70 per Boe for the three months ended March 31, 2026 primarily due to lower NGL and natural gas production volumes.

Purchased oil and gas expenses. Purchased oil and gas expenses increased $218.8 million to $509.8 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The increase was primarily due to an increase in the volume of crude oil purchased quarter over quarter at increased crude oil prices over the same period.

Production taxes. Production taxes increased $17.9 million to $86.7 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025 primarily due to higher crude oil revenues quarter over quarter. The production tax rate as a percentage of crude oil, NGL and natural gas revenues of 7.5% for the three months ended March 31, 2026 decreased from 7.8% for the three months ended December 31, 2025 primarily due to natural gas comprising a larger percentage of total sales relative to the prior quarter due to higher natural gas realized prices, while total natural gas production volumes, which drive production taxes on natural gas, remained relatively flat.

Depreciation, depletion and amortization. DD&A expense increased $15.8 million to $384.2 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The increase was primarily driven by $24.0 million related to a higher depletion rate quarter over quarter, offset by a decrease in plugging and abandonment expenses of $5.8 million. The depletion rate increased $1.03 per Boe quarter over quarter to $15.20 per Boe for the three months ended March 31, 2026 primarily due to a decrease in proved developed reserves quarter over quarter.

General and administrative expenses. G&A expenses increased $4.0 million to $37.5 million for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025. The increase was primarily attributable to an increase in equity-based compensation costs of $4.8 million due to the impact of our stock price on the fair value of our liability-based awards coupled with new award grants during the current quarter and an increase of $3.6 million due to higher current expected credit losses. These increases were partially offset by a decrease of $4.4 million primarily attributable to various cost savings related to other G&A expenses quarter over quarter.

Derivative instruments. We recorded a $241.5 million net loss on derivative instruments for the three months ended March 31, 2026, which included an unrealized loss of $223.0 million related to the change in fair value of our commodity derivative contracts primarily driven by an upward shift in the futures curve for forecasted commodity prices, coupled with a realized loss on settled commodity derivative contracts of $18.5 million. During the three months ended December 31, 2025, we recorded a $44.9 million net gain on derivative instruments, which was comprised of a net gain of $19.9 million associated with our commodity derivative contracts, coupled with a gain of $25.0 million associated with a contract that included contingent consideration. The net gain of $19.9 million on commodity derivative contracts included a realized gain of $30.2 million on settled commodity derivative contracts, partially offset by an unrealized loss of $10.3 million related to the change in fair value of our commodity derivative contracts.

Investment in equity securities. We recorded a $22.8 million net gain related to our investment in Energy Transfer LP (“Energy Transfer”) for the three months ended March 31, 2026, which includedan unrealized gain of$20.4 million as a result of anincreasein the fair value of the investment during the quarter, coupled with a gain of$2.4 million for a cash distribution from Energy Transfer during the quarter. During the three months ended December 31, 2025, we recorded a $2.5 million net loss related to our investment in Energy Transfer, which included an unrealized loss of $4.9 million as a result of a decrease in the fair value of the investment during the quarter, partially offset by a gain of $2.4 million for a cash distribution from Energy Transfer during the quarter.

Income tax benefit (expense). Our effective tax rate was recorded at (15.2)% of pre-tax income for the three months ended March 31, 2026 and 27.1% of pre-tax income for the three months ended December 31, 2025. The effective tax rate for the three months ended March 31, 2026 was lower than the statutory federal rate of 21% primarily as a result of the identification of an error in the tax provision for the three and six months ended June 30, 2025 pertaining to the impact of goodwill impairment on our deferred taxes on unremitted earnings. As a result, we recognized an additional income tax benefit of $41.8 million during the three months ended March 31, 2026, with a corresponding decrease to deferred tax liabilities. The effective tax rate for the three months ended December 31, 2025 was higher than the statutory federal rate of 21% primarily as a result of state income tax and return to provision adjustments resulting from filing our tax returns during the quarter.

Three months ended March 31, 2026 as compared to three months ended March 31, 2025

Lease operating expenses. LOE increased $11.8 million to $244.9 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase was primarily due to increased activity and operating costs from our non-operated assets of $14.6 million, higher workover costs of $4.6 million and higher variable costs of $1.9 million, partially offset by decreased fixed costs of $9.4 million period over period. The same factors contributed to an increase in LOE per Boe, which increased $0.31 per Boe period over period to $9.87 per Boe for the three months ended March 31, 2026.

Gathering, processing and transportation expenses. GPT expenses decreased $6.3 million to $67.0 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The decrease was primarily due to lower NGL and natural gas gathering and processing fees of $7.6 million and lower crude oil transportation fees of $1.9 million, partially offset by an increase in crude oil and NGL production volumes of $3.5 million period over period. GPT expenses decreased $0.31 per Boe period over period to $2.70 per Boe for the three months ended March 31, 2026 primarily due to lower gathering, processing and transportation fees.

Purchased oil and gas expenses. Purchased oil and gas expenses increased $398.5 million to $509.8 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 primarily due to an increase in the volume of crude oil purchased period over period.

Production taxes. Production taxes increased $12.1 million to $86.7 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase was primarily due to higher crude oil revenues period over period, partially offset by a $10.9 million decrease in non-recurring refunds period over period related to certain North Dakota wells receiving an extraction tax exemption. The production tax rate as a percentage of crude oil, NGL and natural gas revenues increased from 6.8% for the three months ended March 31, 2025 to 7.5% for the three months ended March 31, 2026 primarily due to increased crude oil revenues and fewer wells qualifying for the extraction tax exemption relative to the prior period.

Depreciation, depletion and amortization. DD&A expense increased $34.4 million to $384.2 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase was primarily due to $24.3 million of additional depletion expense due to a higher depletion rate period over period, coupled with $9.3 million of additional DD&A expense related to an overall increase in production volumes. The depletion rate increased $1.11 per Boe period over period to $15.20 per Boe for the three months ended March 31, 2026 primarily due to a decrease in proved developed reserves period over period.

General and administrative expenses. G&A expenses decreased $0.9 million to $37.5 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The decrease was primarily attributable to a decrease in merger-related costs of $5.1 million, lower employee compensation expenses of $2.5 million and a decrease of $1.7 million primarily attributable to various cost savings related to other G&A expenses, partially offset by an increase of $4.5 million due to higher current expected credit losses and an increase in equity-based compensation costs of $4.0 million period over period.

Derivative instruments. During the three months ended March 31, 2026, we recorded a $241.5 million net loss on derivative instruments, which included an unrealized loss of $223.0 million related to the change in fair value of our commodity derivative contracts primarily driven by an upward shift in the futures curve for forecasted commodity prices, coupled with a realized loss of $18.5 million on settled commodity derivative contracts. During the three months ended March 31, 2025, we recorded a $20.3 million net loss on derivative instruments, which was comprised of a net loss of $21.0 million associated with our commodity derivative contracts and an unrealized gain of $0.7 million associated with a contract that included contingent consideration. The net loss of $21.0 million on commodity derivative contracts included an unrealized loss of $20.7 million related to the change in fair value of our commodity derivative contracts primarily driven by anupward shift in the crude oil and natural gas futures curves, coupled with a realized loss of $0.3 million on settled commodity derivative contracts.

Investment in equity securities. We recorded a $22.8 million net gain related to our investment in Energy Transfer for the three months ended March 31, 2026, which included an unrealized gain of $20.4 million as a result of an increase in the fair value of the investment during the period, coupled with a gain of $2.4 million for a cash distribution from Energy Transfer during the period. During the three months ended March 31, 2025, we recorded a net loss of $4.9 million related to our investment in Energy Transfer, which included an unrealized loss of $7.3 million as a result of a decrease in the fair value of the investment during the period, partially offset by a gain of $2.4 million for a cash distribution from Energy Transfer during the period.

Interest expense, net of capitalized interest. Interest expense increased $10.8 million to $26.6 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase is primarily due to additional interest expense period over period on our senior unsecured notes of $23.5 million as a result of the issuance of the 2033 Senior Notes (defined below) and the 2030 Senior Notes (defined below) during 2025. This increase was partially offset by a $7.7 million decrease resulting from the repayment of the 2026 Senior Notes (defined below) during March 2025 and a $5.0 million decrease in interest expense on the Credit Facility (defined below) period over period. For the three months ended March 31, 2026, the weighted average borrowings outstanding under the Credit Facility were $0.2 million, and the weighted average interest rate incurred on the outstanding borrowings was 7.5%. During the three months ended March 31, 2025, the weighted average borrowings outstanding under the Credit Facility were $383.4 million, and the weighted average interest rate incurred on the outstanding borrowings was 6.4%.

Loss on debt extinguishment. On March 13, 2025, we paid an aggregate of $409.1 million to purchase and satisfy and discharge $400.0 million of 6.375% senior unsecured notes outstanding due June 1, 2026 (the “2026 Senior Notes”), resulting in a loss on debt extinguishment of $3.5 million for the three months ended March 31, 2025. The loss primarily included the write-off of unamortized debt issuance costs of $2.1 million and a premium paid to redeem a portion of the 2026 Senior Notes of $1.1 million.

Income tax benefit (expense). Our effective tax rate was recorded at (15.2)% and 25.0% of pre-tax income for the three months ended March 31, 2026 and 2025, respectively. Our effective tax rate for the three months ended March 31, 2026 was lower than the statutory federal rate of 21% primarily as a result of the identification of an error in the tax provision for the three and six months ended June 30, 2025 pertaining to the impact of goodwill impairment on our deferred taxes on unremitted earnings. As a result, we recognized an additional income tax benefit of $41.8 million during the three months ended March 31, 2026, with a corresponding decrease to deferred tax liabilities. The effective tax rate for the three months ended March 31, 2025 was higher than the statutory federal rate of 21% primarily as a result of the impact of state income taxes and deferred taxes on unremitted earnings.