10 Stocks Set to Explode in 2025

5. Chord Energy Corporation (NASDAQ:CHRD)

Street High Upside as of October 27, 2024: 80%

Number of Hedge Fund Holders: 56

Chord Energy Corporation (NASDAQ:CHRD) is a hydrocarbon exploration and hydraulic fracturing company 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, primarily driven by solid well performance. According to the company’s CEO, efficient production levels and strategic cost control improved free cash flow levels, exceeding overall expectations.

Following the partnership 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, boasting a re-investment rate of 55%. In addition to that, adjusted EBITDA is expected to reach $2.9 billion.

On the energy front, the company released its 2023 sustainability report recently, advancing its position in the industry. For the fiscal year ended 2023, Chord Energy Corporation (NASDAQ:CHRD) saw a 9% decrease in scope 1 GHG emissions intensity, compared to 2022, and a 57% decline relative to 2019. In addition to that, the company also posted a 44% decrease in scope 1 methene emissions intensity compared to 2022, and a 70% decline compared to 2019. To align with its corporate social responsibility goals, the company donated $1 million to charitable organizations in the education, environment, and mental health domains.

Overall, Chord Energy Corporation (NASDAQ:CHRD) has strong fundamentals and an attractive position in the industry. CHRD also expects to make 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.”