Chord Energy (CHRD) Financials

Chord Energy (NASDAQ: CHRD) showed a sharp step-down in profitability in Q1 2026 versus recent quarters, but it remained solidly cash-generative. Revenue rose year over year and operating cash flow stayed strong, yet the quarter was pressured by a large negative “other income/expense” item and a much lighter balance sheet cash position than in late 2025.

What stood out this quarter: CHRD generated $1.67 billion in revenue and $108.6 million in net income, but operating income was just $333.2 million because of high non-production operating costs, including $244.9 million of other operating expenses and a $235.1 million other income/expense drag. Even so, operating cash flow was $507.5 million, which is a sign the underlying business is still producing meaningful cash.

• Revenue growth remained strong year over year. Q1 2026 revenue of $1.67 billion was up from $1.22 billion in Q1 2025.
• Operating cash flow stayed robust. CHRD generated $507.5 million in operating cash flow in Q1 2026.
• Net income turned positive again after weaker 2025 comparisons. Q1 2026 net income was $108.6 million, versus a Q2 2025 loss and stronger profits in Q1/Q3/Q4 2025.
• Gross profit remained healthy. Gross profit was $1.09 billion, reflecting a strong gross margin profile for an E&P company.
• The company kept returning capital to shareholders. CHRD paid $74.2 million in dividends and also repurchased $67.7 million of common equity in the quarter.
• Cash generation still comfortably covered capex. Capital spending on property, plant and equipment was $351.3 million, below operating cash flow.
• Depreciation is still a major expense. Depreciation expense of $384.2 million is typical for an asset-heavy oil and gas producer, but it keeps reported earnings below cash flow.
• Working capital was a cash use. Changes in operating assets and liabilities used $208.6 million in Q1 2026.
• The balance sheet remains leveraged, but not overly stretched. Total debt was about $1.49 billion of long-term debt plus $11.1 million of short-term debt, against $8.05 billion of equity.
• Cash fell sharply from late 2025. Cash and equivalents dropped to $225.8 million at March 31, 2026, from $629.2 million at Sept. 30, 2025.
• Operating margin compressed materially versus recent quarters. Q1 2026 operating income of $333.2 million was well below Q4 2025’s $91.9 million after much higher revenue, but still shows volatility in this business.
• Other income/expense was a major drag. A negative $235.1 million other income/expense line weighed heavily on pretax results.
• Liabilities rose meaningfully from year-end. Total liabilities increased to $5.19 billion from $5.02 billion at Q3 2025, partly due to higher taxes payable and accrued expenses.

Longer-term trend: Over the last several years, CHRD has generally produced strong quarterly profits and heavy operating cash flow, especially in 2023 and early 2024. The company also used that cash to reduce debt, fund dividends, and buy back shares. However, the 2025–2026 period shows more volatility in earnings and a less comfortable cash position, suggesting investors should pay close attention to commodity pricing, operating costs, and balance sheet discipline.

Bottom line: Chord Energy still looks like a cash-generative upstream producer, but Q1 2026 was not a clean earnings quarter. The business remains capable of funding capex and shareholder returns, yet falling cash balances and volatility in non-operating items are the key risks to watch.