Highlights

  • Chord shows 231.29% one-year basic EPS growth, a P/E of 10.68 and PEG of 0.89.
  • Chord repurchased $205MM of shares in 3Q26 at an average $135.74 per share.
  • Chord announced a $550MM sale of non-operated Marcellus assets, with a $55MM deposit paid.
  • Michael Lou became President and Chief Executive Officer on October 19, succeeding Daniel Brown.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and Chord Energy (NASDAQ:CHRD) shows all three: basic earnings per share grew 231.29% over one year, the trailing twelve-month P/E ratio is 10.68 and the PEG ratio, on an expected basis, is 0.89, with shares trading at USD 154.18 on October 28, 2026, up 0.57%. Alongside those figures, the Williston Basin oil and gas producer discussed its second quarter 2026 results on an August call, announced a divestiture of non-operated Marcellus assets, and on October 19 issued preliminary third quarter 2026 results and a leadership change.

Chord Energy has its principal executive offices in Houston, Texas, and is incorporated in Delaware. It describes itself as an independent exploration and production company with assets primarily in the Williston Basin, where it develops unconventional onshore oil-rich resources in the continental United States. The company states a focus on capital discipline and on generating free cash flow, and it is implementing a 4-mile well program. Its common stock is registered on The Nasdaq Stock Market LLC.

Growth: Preliminary 3Q26 Volumes, Capital Spending and Pricing

The one-year growth of 231.29% in basic earnings per share sits alongside an operating update issued on October 19. Chord said third quarter 2026 volumes exceeded the high end of guidance across oil, natural gas and NGLs, and that capital expenditures were in line with guidance issued in August 2026.

NYMEX WTI averaged $85.69/Bbl and NYMEX Henry Hub averaged $2.96/MMBtu during the quarter. Chord recorded a loss on realized hedges of $48.7MM and received distributions from its equity securities investment of $2.3MM to $2.5MM.

Chief Executive Officer Michael Lou said well performance and better than expected downtime drove volumes above the top end of guidance, and that adjusted free cash flow came in above expectations. The company stated no third quarter net income figure, because its condensed consolidated financial statements for the period were not yet available.

Valuation: P/E of 10.68, PEG of 0.89 and Free Cash Flow Commentary

The P/E ratio of 10.68 is measured on trailing twelve-month earnings, and the PEG ratio of 0.89 on expected growth. The company's cash-generation measure is adjusted free cash flow, a non-GAAP figure it defines as Adjusted EBITDA less cash interest and capital expenditures.

On the August call, then Chief Executive Officer Daniel Brown said free cash flow per share had grown about 30% since 2024 on normalized commodity pricing, and that the growth was higher on actual 2026 pricing. He tied that growth to higher sustainable free cash flow and the share repurchase program.

Capital Returns, Cash and Debt

Chord repurchased $205MM of its shares at an average price of $135.74 per share during 3Q26, and another $44.3MM in the fourth quarter to date at an average price of $142.32 per share. At September 30, 2026, cash and cash equivalents were $804.7MM and total debt was $1,482.2MM.

The company announced the divestiture of its non-operated Marcellus assets for total gross consideration of $550MM, including a $55MM deposit paid during 3Q26. On the August call, management said the target for returning capital would rise to at least 75% of adjusted free cash flow beginning in the third quarter, after leverage declined.

Disclosed Risks, Leadership Change and Outlook

The October release carries preliminary data that Chord's independent registered public accounting firm has not audited or reviewed, and Chord said actual results could differ materially. Its listed risk factors include the ability to complete or realize the benefits of the Marcellus divestiture, commodity prices, OPEC+ actions, tariffs, geopolitical conflicts, geographic concentration and the 4-mile well program.

Daniel Brown resigned as President and Chief Executive Officer and as a director effective October 19, to pursue another professional position. The company said the resignation did not result from any disagreement on operations, policies or practices. The board appointed Lou, previously Executive Vice President, Chief Strategy Officer and Chief Commercial Officer, to both roles.

On the second quarter 2026 call, Brown said the oil price outlook remained uncertain after unusually high volatility this year, and that expanded chemical workover work had created near-term upward pressure on lease operating expense. Management said it expected 2026 oil volumes to average 161,000 barrels of oil per day, and full-year lease operating expense of $10.30 per Boe. It also expected a meaningful reduction in third quarter capital spending after dropping its second frac crew in July.