On Friday, Piper Sandler adjusted its price target on Chord Energy Corp (NASDAQ:CHRD) shares, increasing it slightly to $233 from the previous $231, while maintaining an Overweight rating on the stock.
The firm's analysis highlighted Chord Energy's resilient production figures amidst a general decline in basin well performance over the past few years.
According to the firm, while the overall basin well performance has seen a regression since FY20, with six-month oil cumulative production figures showing a downward trend from 148 thousand barrels (mbbls) in FY20 to 130 mbbls in FY23, Chord Energy has managed to maintain steady quarter-over-quarter results into the fourth quarter of 2023. The three-month oil cumulative production stood at 72 mbbls for the company, demonstrating its ability to sustain output levels.
In contrast to Chord Energy's stable production, other major operators in the basin have reported weaker productivity. Notably, Marathon Oil (NYSE:MRO) experienced a year-over-year productivity gain in the Hector area, with four out of 23 completions year-to-date being allocated back to the Myrmidon area.
Piper Sandler expressed confidence in Chord Energy's prospects, reiterating its Overweight rating and raising the price target to $233. The firm believes that the company is poised for a positive re-rating compared to its small-to-midsize (SMID) peer group, citing strong operational results and improvements in capital efficiency, particularly following the acquisition of ERF.
InvestingPro Insights
As Chord Energy Corp (NASDAQ:CHRD) continues to attract analyst interest, recent data from InvestingPro underscores the company's financial stability and market position. With a market capitalization of $7.36 billion and a price-to-earnings (P/E) ratio that stands at an attractive 7.91, the company is trading near its 52-week high, which indicates strong investor confidence. Additionally, Chord Energy's revenue growth has been robust, with a 5.11% increase over the last twelve months as of Q1 2024, and an even more impressive quarterly revenue growth of 22.17% in Q1 2024.
InvestingPro Tips reveal that analysts have recently revised their earnings upwards for the upcoming period, which may be an indicator of Chord Energy's continued strong performance. Moreover, the company's stock is known to trade with low price volatility, providing a potentially stable investment option. For investors seeking detailed analysis and more such insights, InvestingPro offers additional tips on Chord Energy, and by using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
Furthermore, Chord Energy's operational efficiency is reflected in its gross profit margin of 52.13% over the last twelve months as of Q1 2024, and an operating income margin of 31.64%, signaling strong profitability and management effectiveness. Investors looking to delve deeper into Chord Energy's financials and operational metrics can find an array of additional InvestingPro Tips to guide their investment decisions.
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