Chord Energy lifts output to 290.5–290.9 thousand boe per day, beating expectations
Key Facts
Chord Energy said in a preliminary operational and financial update issued on October 19, 2026, that third-quarter production exceeded its previous expectations as it continued share buybacks. Total production ranged from 290.5 to 290.9 thousand barrels of oil equivalent per day, compared with 286.4 thousand boe per day in the second quarter, according to its disclosure for the previous period. Management attributed part of the production outperformance to downtime performance, describing it as "better than expected." The increase in volumes coincides with the company's continued return of capital to shareholders through purchases made during and after the quarter. The figures in the October update are preliminary and subject to revision, as financial statements were not yet available when the announcement was issued.
In its production breakdown, the company put preliminary third-quarter oil volumes at 165.4 to 165.6 thousand barrels per day, according to its operational and financial statement. That compares with 155.7 thousand barrels of oil per day in the corresponding quarter of 2025, according to the earnings release for that period, putting current oil production above its year-earlier level. Natural gas liquids production ranged from 55.0 to 55.2 thousand barrels per day during the third quarter of 2026. Natural gas production for the same period was 420.4–420.8 million cubic feet per day, among the components the company reported for its total output. Chord Energy estimated preliminary capital expenditure for the quarter at $379 million to $385 million.
Chord Energy repurchased $205 million of its shares during the third quarter, according to its update, increasing the value of purchases from the previous quarter. The company had reported buybacks of $147.4 million in its second-quarter earnings disclosure, providing the preceding comparison for the pace of purchases. The program continued beyond the end of the third quarter, with additional buybacks totaling $44.3 million from the start of the fourth quarter through the October 19 update. As background to its capital return policy, the company said in its second-quarter disclosure that it had returned 54% of adjusted free cash flow to shareholders. Purchases thus continued after the period covered by the preliminary update, alongside an increase in their value during the third quarter compared with the second.
On its balance sheet, cash and cash equivalents stood at $804.7 million on September 30, 2026, according to the company's preliminary figures for the end of the third quarter. Total debt on the same date was $1,482.2 million, exceeding the reported cash and cash equivalents balance at the end of the period. The quarter's end coincided with an asset sale agreement Chord Energy reached in September as part of a change in the scope of its operating portfolio. The agreement covered all of its non-operated Marcellus assets, according to the company's September 16 statement on the divestiture. The statement identified POSCO International as the buyer, for total consideration of $550 million, in a transaction expected to close during the fourth quarter.
According to the divestiture announcement, Chord Energy's portfolio will be focused exclusively on the Williston Basin after the Marcellus asset sale is completed, making the transaction a shift in the geographic distribution of its operations. The divestiture covers assets in which the company holds interests without operating them, with that entire Marcellus portfolio being sold to the buyer named in the agreement. The change follows a year in which the company's total production rose compared with the corresponding quarter, alongside the increase in oil output. Chord Energy's total production in the third quarter of 2025 was about 280.9 thousand barrels of oil equivalent per day, according to its reported results for that period. The annual comparison puts the current production increase in a broader context than the rise recorded between the second and third quarters of 2026.
For the fourth quarter, the company had forecast in its August update that oil production would decline from third-quarter levels, according to its second-quarter earnings disclosure. It linked that outlook to fewer wells coming online during the fourth quarter, the operating factor it cited to explain the expected decline. On its asset portfolio, Chord Energy expected the Marcellus sale to close during the fourth quarter of 2026, subject to customary closing conditions. In the transaction announcement, it said it intended to update its guidance alongside its third-quarter earnings release, placing the guidance revision within its next regular disclosure. The company set November for the release of those results and updated guidance, following October's preliminary update on production, spending and share buybacks.