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An independent oil and gas producer working the Williston Basin of North Dakota and Montana, where it pulls crude from the Middle Bakken and Three Forks formations. The company was formed in 2022 as a "merger of equals" between Oasis Petroleum and Whiting Petroleum, then grew further by buying Enerplus in 2024 to hold one of the largest acreage positions in the region. The name Chord was chosen because a musical chord is many notes played in harmony—a nod to two companies joining forces.
Chord Energy net income swings to $525M in Q2 2026 from a $390M loss a year ago, driven by higher oil prices and a $201M unrealized derivative gain.
Chord Energy's earnings swung from a loss to a profit as oil prices climbed. rose 84% to $2.17 billion and reached $525.2 million, driven by a $23.94 per barrel increase in the average realized crude oil price and a $201.0 million unrealized gain on derivatives. The company generated $1.12 billion in , repurchased $147.4 million in shares, and held $2.58 billion in liquidity, leaving it positioned to fund its capital program and shareholder returns from operations.
Key takeaways
was $525.2 million, compared to a $389.9 million loss in the prior-year quarter that included a $539.3 million non-cash charge; no such was recorded in the current period.
Crude oil rose $418.7 million sequentially to $1.42 billion, as the average realized price increased $23.94 per barrel to $93.99 and crude oil volumes rose 5.9%.
A $201.0 million unrealized gain on derivatives drove a $107.9 million net derivative gain for the quarter, reversing a $241.5 million net derivative loss in the prior quarter that had included a $223.0 million unrealized loss.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income of $525M driven by higher oil prices and production, reversing a prior-year loss from a $539M goodwill impairment.
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Crude oil revenues rose $418.7M sequentially to $1,415.0M on a $23.94/Bbl higher average price ($93.99) and 5.9% higher oil volumes.
Lease operating expense per barrel of oil equivalent rose $0.41 sequentially to $10.28, which management attributed to higher variable, fixed, and workover costs.
reached $1.12 billion, up 165.9% , funding $147.4 million in share repurchases and a declared $1.30 per share base .
Liquidity stood at $2.58 billion at quarter-end, with $611.6 million in cash and $1.97 billion available under the ; was $1.48 billion, all at fixed rates.
What changed
The prior quarter flagged a $153.1 million sensitivity to a 10% crude oil price move on derivatives. This quarter, that sensitivity declined to approximately $105.5 million, reflecting changes in the company's hedge position as oil prices rose.
Lease operating expense per Boe, flagged last quarter at $9.87 with a question of whether it marked a new baseline, rose further to $10.28, driven by higher variable, fixed, and workover costs.
Share repurchases accelerated to $147.4 million from $70.7 million in the prior quarter, deploying more of the $1.0 billion authorization as more than doubled sequentially.
What to watch
Whether lease operating expense per Boe retreats from $10.28 as workover activity normalizes, or whether this level represents a sustained higher cost baseline for the combined operations.
The pace of share repurchases under the $1.0 billion authorization, given the $147.4 million deployed this quarter and the $611.6 million cash balance.
Realized derivative settlements versus unrealized mark-to-market swings: a 10% move in crude oil prices now shifts the net derivative position by approximately $105.5 million, directly affecting reported .
Whether the $1.30 per share base is supplemented with a variable dividend as the board evaluates and the post-acquisition profile.
Natural gas revenues fell $81.3M sequentially to $34.7M as average realized prices dropped $2.20/Mcf to $0.94, partly due to seasonal warmth.
Lease operating expense per Boe increased $0.41 to $10.28 on higher variable, fixed, and workover costs, while GPT expense per Boe declined.
A $201.0M unrealized derivative gain drove a $107.9M net gain on derivatives, reversing a $241.5M loss in the prior quarter.
Liquidity stood at $2.58B with $1.97B undrawn on the ; $147.4M in shares were repurchased and a $1.30/share base was declared.
Quantitative and Qualitative Disclosures About Market Risk
Commodity price risk from crude oil and natural gas is partially hedged; fixed-rate debt limits interest rate exposure.
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The company uses derivatives solely for hedging, not speculation, to partially reduce price risk on future crude oil, NGL, and natural gas production.
At June 30, 2026, a 10% increase in crude oil prices would reduce the of the net crude oil derivative asset by ~$105.5M; a 10% decrease would increase it by ~$99.3M.
At June 30, 2026, a 10% increase in natural gas prices would reduce the of the net natural gas derivative asset by ~$13.9M; a 10% decrease would increase it by ~$9.2M.
Interest rate risk is limited: all $1.5B of senior unsecured notes carry fixed rates, and no borrowings were outstanding under the , so a 100- rate rise has no impact on annual .
Counterparty credit risk on derivatives is managed by transacting only with high-credit-quality, investment-grade financial institutions that are also lenders, and by using .
Customer credit risk is concentrated among several significant crude oil, NGL, and natural gas buyers; credit losses on were $2.5M for the six months ended June 30, 2026.
See “Part I, Item 1. — Financial Statements (Unaudited)—Note 16—Commitments and Contingencies,” which is incorporated herein by reference, for a discussion of material legal proceedings.
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See “Part I, Item 1. — Financial Statements (Unaudited)—Note 16—Commitments and Contingencies,” which is incorporated herein by reference, for a discussion of material legal proceedings.
Our business faces many risks. Any of the risks discussed elsewhere in this Quarterly Report on Form 10-Q and in our other SEC filings could have a material impact on our business, financial position, results of operations or cash flows. Additional risks and uncertainties not pr…
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Our business faces many risks. Any of the risks discussed elsewhere in this Quarterly Report on Form 10-Q and in our other SEC filings could have a material impact on our business, financial position, results of operations or cash flows. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations.
For a discussion of our potential risks and uncertainties, see the information in “Part I. Item 1A. Risk Factors” in our 2025 Annual Report. There have been no material changes in our risk factors from those described in our 2025 Annual Report.