10 Best Debt Free Mid Cap Stocks to Buy Now

2. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 56

Enterprise Value: $5.66 billion

Market Capitalization: $6.67 billion

​Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company specializing in crude oil, natural gas, and natural gas liquids. Its operations are concentrated in the Williston Basin, a region known for significant energy resources. The company focuses on acquiring, developing, and exploiting hydrocarbon assets to maximize production and efficiency and generates its revenue by selling its products to domestic and international markets, aiming to capitalize on energy demand while maintaining operational sustainability. CHRD ranked ninth on our recent list of 11 Best Crude Oil Stocks To Buy Right Now.

Chord Energy Corporation (NASDAQ:CHRD) closed out 2024 with strong operational and financial results, generating roughly $282 million in adjusted free cash flow for the fourth quarter. The successful merger with Enerplus marked a pivotal moment for the company, enhancing its scale and solidifying its leadership in the Williston Basin. This integration brought significant operational and corporate synergies, allowing CHRD to maintain stable or slightly growing production levels with minimal capital outlay. As a result, the company was able to return $944 million to shareholders on a pro forma basis, primarily through aggressive share repurchases, reducing its outstanding shares by over 5% since the merger.

Looking ahead to 2025, Chord Energy Corporation (NASDAQ:CHRD) plans to sustain its disciplined capital approach, allocating $1.4 billion for maintenance-level investment while targeting daily production of 152,000 to 153,000 barrels of oil equivalent. Based on commodity price assumptions of $70 per barrel for oil and $3.50 per MMBtu for natural gas, CHRD anticipates generating approximately $860 million in free cash flow with a reinvestment rate of about 60%. The company is also advancing its operational efficiency through extended lateral drilling, having completed its first 4-mile lateral and expecting over 40% of its 2025 wells to feature 3-mile laterals – a figure projected to exceed 50% in the following two years. These initiatives, supported by a vast inventory of low-cost, high-return projects, position the company for continued strong cash generation and consistent capital returns.