Chord Energy: This U.S. Oil Gem's Valuation Disconnect Is Too Big To Ignore

IWA Research2.4K FollowersFollow5ShareSavePlay(12min)CommentsSummaryChord Energy is reiterated as a Strong Buy, supported by robust cash flow, prudent capital allocation, and a strong balance sheet with no maturities until 2030.CHRD’s acquisitions, operational efficiencies, lateral expansions, and $160M in annual run-rate savings have solidified its position as the largest Williston Basin producer.Guidance projects $700M FCF in 2026 with WTI at $64, with a potential combined yield of 9% in 2026 if leverage improves and the payout ratio rises to 75%.Valuation models suggest intrinsic value materially above current levels, while macro risks and commodity volatility remain key considerations. sefa ozel/iStock via Getty Images Introduction The last time I covered Chord Energy (CHRD), I highlighted their robust cash flow, significant efficiencies, improvements, and healthy balance sheet, reiterating their Strong Buy rating. I reiterate CHRD’s Strong Buy rating followingThis article was written byIWA Research2.4K FollowersFollowI've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CHRD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.