Chord Energy Corporation is an independent exploration and production (‘E&P’) company.
The company is engaged in the acquisition, exploration, development and production of crude oil, NGL and natural gas primarily in the Williston Basin.
As of December 31, 2024, the company had 1,254,860 net leasehold acres in the Williston Basin, approximately all of which is held by production. The company is exploiting significant resource potential from the Middle Bakken and Three Forks formations, which a...
Chord Energy Corporation is an independent exploration and production (‘E&P’) company.
The company is engaged in the acquisition, exploration, development and production of crude oil, NGL and natural gas primarily in the Williston Basin.
As of December 31, 2024, the company had 1,254,860 net leasehold acres in the Williston Basin, approximately all of which is held by production. The company is exploiting significant resource potential from the Middle Bakken and Three Forks formations, which are present across a substantial portion of the company’s acreage.
During the year ended December 31, 2024, the company had average daily production of 232,737 net Boepd.
Business Strategy
The company’s strategic priority is to efficiently execute its development program.
Exploration and Production Operations
The company produces and markets crude oil, NGLs and natural gas, which are commodities.
As of December 31, 2024, the company had five operated rigs running, and the company expects to run four to five operated rigs during the majority of 2025.
Description of Properties
As of December 31, 2024, the company’s operations were focused in the North Dakota and Montana areas of the Williston Basin targeting the Middle Bakken and Three Forks formations. The company is one of the top producers in the Williston Basin, and the company has the largest acreage position of any operator in the Williston Basin. The company focuses its operations in the Williston Basin because of its high oil content, multiple producing horizons, substantial resource potential and management’s previous professional history in the basin. The Williston Basin also generally has established infrastructure and access to materials and services.
Marketing
The company principally sells its crude oil, NGL and natural gas production to refiners, marketers and other purchasers that have access to nearby pipeline and rail facilities. In an effort to improve price realizations, the company manages its commodities marketing activities in-house, which enables the company to market and sell its crude oil, NGL and natural gas to a broad array of potential purchasers. The company sells a significant amount of its crude oil production through bulk sales at delivery points on crude oil gathering systems to a variety of purchasers at prevailing market prices under short-term contracts that normally provide for the company to receive a market-based price, which incorporates regional differentials that include, but are not limited to, transportation costs. These gathering systems, which typically originate at the wellhead and are connected to multiple pipeline and rail facilities, reduce the need to transport barrels by truck from the wellhead, helping remove trucks from local highways and reduce greenhouse gas emissions. As of December 31, 2024, substantially all of the company’s gross operated crude oil and natural gas production was connected to gathering systems. In addition, from time to time the company may enter into third-party purchase and sales transactions to, among other things, improve price realizations, optimize transportation costs, blend to meet pipeline specifications or to cover production shortfalls. The company also enters into various sales contracts for a portion of the company’s portfolio at fixed differentials.
Delivery Commitments
As of December 31, 2024, the company had certain agreements with an aggregate requirement to deliver, transport or purchase a minimum quantity of approximately 46.1 MMBbl of crude oil, 7.5 MMBbl of NGLs, 448.8 Bcf of natural gas and 0.1 MMBbl of water within specified timeframes.
Regulation
FERC regulates interstate natural gas transportation rates, and terms and conditions of service, which affects the marketing of natural gas that the company produces, as well as the revenues the company receives for sales of the company’s natural gas.
With regard to the company’s physical sales of energy commodities, the company is required to observe anti-market manipulation laws and related regulations enforced by FERC and/or the Commodity Futures Trading Commission (‘CFTC’) and the Federal Trade Commission (‘FTC’).
Certain of the company’s pipelines are subject to regulation by the U.S. Pipeline and Hazardous Materials Safety Administration under the Hazardous Liquids Pipeline Safety Act (‘HLPSA’) with respect to crude oil and condensates and the Natural Gas Pipeline Safety Act (‘NGPSA’) with respect to natural gas.
The company is also subject to the requirements of the Resource Conservation and Recovery Act (‘RCRA’) and comparable state statutes.
The company is taking steps to comply with parts of OOOOb that became effective during 2024 and parts of the rule that phase in over time. Litigation is pending concerning these recently adopted final rules.
Operations associated with the company’s production and development activities generate drilling muds, produced waters and other waste streams, some of which may be disposed of by means of injection into underground wells situated in non-producing subsurface formations. These injection wells are regulated pursuant to the federal Safe Drinking Water Act (the ‘SDWA’) Underground Injection Control (the ‘UIC’) program and analogous state laws. The UIC program requires permits from the EPA or analogous state agency for disposal wells that the company operates, establishes minimum standards for injection well operations and restricts the types and quantities of fluids that may be injected.
The company is subject to a number of federal and state laws and regulations, including the federal Occupational Safety and Health Act and comparable state statutes, whose purpose is to protect the health and safety of workers. In addition, the U.S. Occupational Safety and Health Administration hazard communication standard, the EPA community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state regulations require that information be maintained concerning hazardous materials used or produced in the company’s operations. Certain of this information must be provided to employees, state and local government authorities, or citizens.
History
The company was founded in 2007. It was incorporated in 2010 pursuant to the laws of the state of Delaware. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in 2022.