10 Most Promising Mid-Cap Stocks According to Hedge Funds

6. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 56

Market Capitalization as of October 10, 2024: $8.25 Billion

Chord Energy Corporation (NASDAQ:CHRD) ranks sixth on our list of the most promising mid-cap stocks according to hedge funds. The hydrocarbon exploration and hydraulic fracturing company is headquartered in Texas, United States. The company has an immense focus on acquiring and developing oil and natural gas properties.

In the second quarter of 2024, the company generated revenue worth $1.26 billion, up by 38.22% year-over-year. Strong financial results were primarily driven by solid well performance and declining downtime. According to the company’s CEO, efficient production levels and strategic cost control improved free cash flow levels, exceeding overall expectations. In addition to that, the company closed its deal with Enerplus, promising greater scale, low-cost inventories, financial strength, and better shareholder returns. The deal will add more than $200 million in annual synergies, up from the original target of $150 million.

Following the combination with Enerplus, Chord Energy Corporation (NASDAQ:CHRD) revised its guidance for the complete fiscal year 2024. Now, the company expects to generate $1.2 billion of adjusted free cash flow, with a re-investment rate of 55%. In addition to that, adjusted EBITDA is expected to reach $2.9 billion.

Overall, Chord Energy Corporation (NASDAQ:CHRD) has strong fundamentals and an attractive position in the industry. The company has a history of dominating the market by engaging in strategic acquisitions. Lastly, CHRD expects to continue investing in capital investments and increase production, positioning the company for long-term sustainable growth.

Madison Investments’ Madison Small Cap Fund stated the following regarding Chord Energy Corporation (NASDAQ:CHRD) in its first quarter 2024 investor letter:

“Our Energy underweight was also a slight drag, although we are optimistic about our singular investment in this sector with Chord Energy Corporation (NASDAQ:CHRD). During Q1 the company announced a strategic combination with Canadian-based Enerplus Corporation (TSX: ERF). Enerplus is one of, if not the best remaining assets in the Bakken and we are very constructive on the financial and strategic merits of this transformational deal. CHRD will become the largest operator in the Bakken, representing about 12% of the basin’s production. With a solid balance sheet post deal, CHRD will now be in the enviable position of either the basin’s main consolidator or most strategic asset as a target for larger E&P companies.”