Chord Energy Business Model Canvas

Chord Energy actively cultivates partnerships with private landowners and mineral rights owners across its key operating regions in North Dakota and Montana. These crucial relationships grant the company the essential access needed for exploration, development, and production activities.

These agreements are the bedrock of Chord Energy's operational capacity, directly enabling the extraction of valuable hydrocarbon reserves. For instance, securing lease agreements allows for the drilling and completion of wells, which are the primary revenue drivers for the company.

Maintaining strong, positive relationships with these landowners and mineral rights holders is paramount for ensuring smooth, uninterrupted operations and fostering opportunities for future expansion. This often involves transparent communication and fair compensation, contributing to long-term stability and mutual benefit.

Chord Energy's key partnerships primarily involve oilfield service providers essential for drilling and completion, along with midstream companies facilitating transportation and processing. Strategic acquisitions, like the 2024 Enerplus deal, also represent significant partnerships that bolster scale and operational efficiency.

These collaborations are critical for executing development plans, such as constructing longer lateral wells, and ensuring efficient hydrocarbon delivery to markets. The company's ability to secure reliable services and infrastructure directly impacts its production costs and revenue realization.

Furthermore, strong relationships with landowners are fundamental, granting access for exploration and production activities, while adherence to governmental regulations underscores a commitment to responsible operations.

Chord Energy actively manages and optimizes its proved reserves, a core activity for ensuring long-term viability. This involves both successful drilling programs and strategic acquisitions to expand its resource base.

As of December 31, 2024, Chord Energy reported estimated net proved reserves of 883.0 million barrels of oil equivalent (MMBoe). A substantial portion of these reserves is attributed to crude oil, highlighting the company's focus on this key commodity.

Effective reserve management is crucial for maintaining a consistent and sustainable production profile. This disciplined approach directly supports future value creation for the company and its stakeholders.

Chord Energy's key activities center on the efficient acquisition, exploration, development, and production of oil and natural gas, primarily in the Williston Basin. They focus on optimizing resource recovery through advanced drilling and completion techniques, such as employing longer laterals to lower costs.

The company actively manages its reserves, which stood at 883.0 million barrels of oil equivalent (MMBoe) as of December 31, 2024, with a strong emphasis on crude oil. This reserve management is critical for ensuring sustained production and long-term value.

Chord Energy's financial strategy emphasizes disciplined capital allocation, with a 2025 capital program estimated at $1.4 billion, aimed at maximizing free cash flow and enhancing shareholder returns through dividends and buybacks.

Furthermore, their commitment to ESG principles is evident in their efforts to reduce emissions intensity and improve safety, as demonstrated by a decrease in Scope 1 GHG emissions intensity and a lower Total Recordable Incident Rate (TRIR) in 2023.

Chord Energy’s skilled workforce is a cornerstone of its business, boasting deep technical knowledge and operational expertise specifically in unconventional resource development. This human capital is directly responsible for optimizing well performance and driving efficiency gains across the company’s operations.

The proficiency of Chord Energy’s employees in advanced drilling and completion techniques, such as longer laterals, is critical. For instance, in 2023, the company continued to leverage these skills to enhance its production capabilities, contributing to its overall operational excellence and competitive advantage in the energy sector.

Chord Energy's extensive hydrocarbon reserves and acreage are its primary key resource, forming the bedrock of its operations. The company boasts high-quality, long-lived assets, predominantly situated in the Williston Basin, spanning North Dakota and Montana. These reserves include substantial quantities of crude oil, natural gas, and natural gas liquids (NGLs), which are the essential raw materials fueling its business.

The strategic acquisition of Enerplus significantly bolstered Chord Energy's resource base, expanding its net acreage to an impressive 1.3 million acres. This consolidation has solidified its position as a premier operator within the Williston Basin, ensuring a robust and enduring supply of hydrocarbons for its value chain.

Chord Energy's financial capital and strong balance sheet are cornerstones of its business model, offering significant advantages. The company consistently maintains a best-in-class balance sheet, which translates into crucial flexibility and resilience, especially when commodity prices are fluctuating.

This financial strength is clearly demonstrated by its performance. For instance, in the first quarter of 2025, Chord Energy reported adjusted free cash flow of approximately $291 million. This healthy cash generation, coupled with a substantial revolving credit facility, provides a solid foundation for its operations.

The robust financial position directly fuels the company's strategic initiatives. It enables Chord Energy to confidently pursue its development programs and execute its shareholder return strategies, underscoring the importance of its financial capital.

Chord Energy’s skilled workforce is a cornerstone of its business, boasting deep technical knowledge and operational expertise specifically in unconventional resource development. This human capital is directly responsible for optimizing well performance and driving efficiency gains across the company’s operations.

The proficiency of Chord Energy’s employees in advanced drilling and completion techniques, such as longer laterals, is critical. For instance, in 2023, the company continued to leverage these skills to enhance its production capabilities, contributing to its overall operational excellence and competitive advantage in the energy sector.

Chord Energy’s commitment to advanced drilling and completion technology is a cornerstone of its operational strategy. This includes deploying state-of-the-art drilling rigs and sophisticated completion equipment, crucial for maximizing hydrocarbon recovery. For instance, in 2023, the company reported an average lateral length of 12,300 feet, a significant increase that directly correlates with technological advancements enabling longer, more efficient wells.

The company’s focus on optimizing well designs, such as increasing the number of stages and clusters per lateral, is a direct result of investing in and utilizing advanced technologies. This approach aims to boost production per well and reduce the overall cost of extraction. In 2023, Chord Energy achieved a production of 149,000 barrels of oil equivalent per day (boepd), demonstrating the effectiveness of their technological investments.

• Technological Investment: Chord Energy utilizes cutting-edge drilling rigs and completion equipment.
• Enhanced Well Design: Focus on longer laterals and improved well designs to boost productivity.
• Productivity Gains: Technological resources enable higher recovery rates and operational effectiveness.
• Cost Efficiency: Investment in technology contributes to lowering breakeven costs per barrel.

Chord Energy’s access to and efficient use of midstream infrastructure, including pipelines and processing facilities, are vital resources. These networks are essential for moving its produced oil and gas to market, directly impacting operational efficiency and profitability. For instance, in 2023, Chord Energy reported that its average realized price for oil was $74.49 per barrel, and for natural gas, it was $2.53 per Mcf, highlighting the importance of cost-effective transportation in achieving these figures.

Strategic positioning and utilization of these logistics networks minimize transportation expenses and enhance the value Chord Energy receives for its products. This infrastructure allows for the seamless gathering, processing, and delivery of hydrocarbons, which is a cornerstone of their business model. The company's ability to leverage existing infrastructure, whether owned or accessed through agreements, directly influences its cost structure and competitive standing in the energy market.

• Pipeline Access: Chord Energy relies on extensive pipeline networks for the efficient transport of crude oil and natural gas from its production sites to refineries and processing facilities.
• Processing Capacity: Access to adequate and strategically located processing plants is crucial for treating natural gas and NGLs to meet market specifications.
• Transportation Costs: Effective logistics management helps control per-unit transportation costs, which is a significant factor in overall profitability. In 2023, Chord Energy’s lifting costs averaged $12.61 per Boe, with transportation being a component of this.
• Market Realizations: Proximity and access to key market hubs through these networks allow Chord Energy to achieve favorable pricing for its produced commodities.

Chord Energy's extensive hydrocarbon reserves, particularly in the Williston Basin, represent its foundational key resource. The company's financial strength, evidenced by strong free cash flow generation and a robust balance sheet, enables strategic flexibility and shareholder returns. Furthermore, its skilled workforce, adept at advanced drilling and completion techniques, drives operational efficiency and production optimization.

Chord Energy stands out as a leading operator in the Williston Basin, boasting an enhanced scale and a substantial portfolio of low-cost drilling opportunities. This strategic positioning, significantly bolstered by the Enerplus acquisition, allows the company to leverage its extensive inventory for sustained free cash flow generation.

The depth and quality of Chord Energy's asset base are key differentiators, enabling attractive economic returns even with conservative reinvestment levels. This advantage is crucial for long-term value creation.

Chord Energy offers investors a compelling combination of attractive shareholder returns, operational efficiency, and a robust financial position. The company's commitment to returning capital, evidenced by its 100% adjusted free cash flow return in Q1 2025, coupled with its disciplined capital allocation and focus on operational improvements like longer laterals, creates a strong value proposition.

The company's leading position in the Williston Basin, enhanced by the Enerplus acquisition, provides a deep inventory of low-cost drilling opportunities. This strategic advantage, combined with a best-in-class balance sheet and conservative leverage, as shown by a net debt to adjusted EBITDA of approximately 0.7x in Q1 2024, positions Chord Energy for sustained value creation and resilience in fluctuating market conditions.

Chord Energy maintains strong relationships with regulatory bodies by prioritizing strict adherence to environmental, health, and safety standards. This commitment is evident in their transparent reporting practices, which showcase their operational accountability. For instance, their annual Sustainability Report details their performance and ongoing efforts to operate responsibly.

Chord Energy maintains robust relationships with investors through transparent communication channels, including earnings calls and SEC filings, ensuring stakeholders are informed about financial performance and capital allocation strategies. The company also actively engages with local communities, contributing significantly to charitable causes in 2023, and upholds strong ties with regulatory bodies by adhering to stringent safety and environmental standards.

Commercial partnerships are solidified through long-term contracts, guaranteeing market access and stable revenue streams for hydrocarbon sales, thereby reducing market volatility. Internally, Chord Energy prioritizes its employees by fostering a safe work environment, offering development opportunities, and focusing on retention, evidenced by efforts to manage its 2023 voluntary turnover rate of 11.5%.

Chord Energy's investor relations website and portal are crucial for transparent communication with its financial community. This digital hub offers immediate access to vital documents like SEC filings, quarterly earnings reports, and investor presentations, ensuring stakeholders have up-to-date information. For instance, as of the first quarter of 2024, Chord Energy reported a net income of $317 million, a figure readily available and easily digestible through their IR portal.

Chord Energy utilizes a multi-faceted approach to reach its customers. Its direct sales force handles the sale of crude oil, natural gas, and NGLs, fostering strong relationships with refiners and industrial users. This direct engagement allows for better price control and understanding of market demands, as evidenced by their 2023 production of approximately 260,000 boepd managed by these teams.

Physical distribution relies heavily on extensive pipeline networks, connecting production sites to processing facilities and demand centers. In 2024, an estimated 80% of Chord Energy's crude oil production utilized pipeline transport, ensuring efficient and cost-effective delivery to market.

For financial stakeholders, Chord Energy employs its investor relations website and portal for transparent communication, providing immediate access to SEC filings, earnings reports, and presentations. Their Q1 2024 net income of $317 million was readily available through these channels, alongside quarterly earnings calls and webcasts which offer detailed performance data and strategic insights.

Financial analysts from investment banks and research firms are critical to understanding Chord Energy's market position. These professionals meticulously examine the company's financial health, operational efficiency, and strategic initiatives. For instance, in 2024, analysts closely watched Chord Energy's production levels and cost management, especially in light of fluctuating oil and gas prices.

Their detailed reports and buy/sell/hold recommendations directly influence investor sentiment and market perception. By providing in-depth valuations and future outlooks, they help shape how the broader financial community views Chord Energy's investment potential, impacting its stock performance and access to capital.

Chord Energy's customer segments are diverse, encompassing the direct purchasers of its produced commodities, the financial stakeholders who provide capital, and the vital service providers that enable its operations. Additionally, local communities and regulatory bodies are crucial partners, influencing the company's operating environment and social license.

The company's primary customers are refineries, utility companies, industrial users, and commodity traders who purchase its crude oil, natural gas, and NGLs. These entities are essential for converting Chord's raw output into usable energy and products, directly driving revenue. For example, in 2024, the average Brent crude oil price saw significant fluctuations, impacting the value of oil sales, while natural gas prices also experienced considerable movement influenced by storage levels and global demand.

Financial investors, both equity and debt holders, are critical for Chord Energy's capital structure and growth. These stakeholders, ranging from individual shareholders to institutional investors, closely monitor the company's financial performance and its ability to deliver returns. In the first quarter of 2024, Chord Energy's adjusted EBITDA reached $786 million, highlighting its cash-generating capacity, which is attractive to investors seeking stability and growth.

Oilfield service and equipment providers are indispensable partners, supplying the necessary services for Chord's extensive drilling and completion activities, particularly in the Williston Basin. Their efficiency and technological advancements directly impact Chord's cost structure and operational success. In 2024, Chord Energy aimed to reduce per-well drilling and completion costs by approximately 5% year-over-year, partly through leveraging advanced techniques from these providers.

Local communities and regulatory bodies are essential for Chord Energy's operational continuity and social license. The company's activities significantly impact the economic vitality and environmental health of regions like North Dakota and Montana. In 2023, Chord Energy's tax payments contributed millions to local and state governments, supporting public services and infrastructure.

General and Administrative (G&A) expenses for Chord Energy encompass the essential overhead costs of operating the business. This includes executive compensation, support staff salaries, office rent, utilities, and professional services like legal and accounting. These costs are fundamental to maintaining the company's structure and compliance.

Chord Energy is actively working to optimize its G&A structure, particularly following significant strategic moves. For instance, the company anticipates capturing over $200 million in annual synergies from its acquisition of Enerplus. A substantial portion of these synergies is expected to flow through to G&A, effectively lowering these costs on a per-unit basis as operations scale.

Effective management of G&A is a key component of Chord Energy's broader cost control strategy. By streamlining administrative functions and leveraging economies of scale, the company aims to enhance its overall profitability and competitive positioning in the energy market.

Chord Energy's cost structure is heavily influenced by capital expenditures for drilling and completing wells, with 2025 projections around $1.37 billion. Lease Operating Expenses (LOE) were $9.68 per barrel of oil equivalent in 2024, a figure the company actively manages. General and Administrative (G&A) costs are being optimized, with over $200 million in annual synergies expected from the Enerplus acquisition, significantly impacting overhead efficiency.

Chord Energy generates revenue from the sale of Natural Gas Liquids (NGLs), which are valuable byproducts extracted during natural gas processing. This segment diversifies the company's revenue sources beyond crude oil. In the first quarter of 2025, NGL realizations averaged around 20% of the West Texas Intermediate (WTI) crude oil price, showcasing their significant contribution to overall financial performance.

Chord Energy's revenue primarily stems from the sale of crude oil, which constitutes the largest portion of its hydrocarbon output. The company's strategic focus on the Williston Basin, a region abundant in oil, ensures this remains its most significant and stable income source.

Natural gas sales contribute a secondary but important revenue stream for Chord Energy. In the first quarter of 2025, robust regional demand supported healthy natural gas prices, enhancing this revenue segment.

The sale of Natural Gas Liquids (NGLs) further diversifies Chord Energy's income. These valuable byproducts, extracted during gas processing, saw realizations in Q1 2025 averaging around 20% of the WTI crude oil price, adding considerable value.

Chord Energy's revenue streams can be summarized as follows: