13 Best Natural Gas and Oil Dividend Stocks To Buy

5. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 50

Dividend Yield: 9.37%

Chord Energy Corporation (NASDAQ:CHRD) is a scaled unconventional US oil producer with a premier Williston Basin acreage position. The company acquires, exploits, develops, and explores crude oil, natural gas, and natural gas liquids. Chord also finalized its acquisition of Enerplus last year, significantly expanding its footprint and making it the largest producer in the Bakken, one of the largest on-shore oil fields in the United States.

A key driver of Chord Energy Corporation (NASDAQ:CHRD)’s strong operational performance has been its focus on long lateral drilling. The company has seen success with 3-mile laterals and is exploring the potential for 4-mile laterals, which is working and delivering greatly improved capital efficiency and returns. Moreover, the company has a substantial yet low decline and high oil cut production base, which is paired with a deep portfolio of highly economic, lower-risk, conservatively spaced, and oil-rich inventory.

Chord Energy Corporation (NASDAQ:CHRD) reported revenue of $1.45 billion in Q3 2024, up 29.12% YoY and beating analysts’ estimates by over $242 million, as the company’s oil volumes were toward the top end of guidance, driven by strong execution, well performance, and lower downtime. Chord has also committed to returning 75% of its free cash flow to shareholders through dividends and stock buybacks and announced a base dividend of $1.25 per share and repurchased shares worth $146 million during the third quarter of 2024.

Carillon Tower Advisers stated the following about Chord Energy Corporation (NASDAQ:CHRD) in its Q3 investment letter:

“Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company with operations in the Williston Basin in North Dakota, Montana, and South Dakota. The company’s shares lagged largely due to the recent pressure in the price of oil. Some recent data indicating slightly disappointing initial well productivity from a handful of recently completed wells also contributed to lackluster performance. Despite this, we remain optimistic on management’s ability to drive operational efficiencies following the recent close of Chord’s acquisition of Enerplus, by applying best practices of both independent companies in a manner that should provide upside to the previously communicated synergies. We believe the continued successful implementation of Chord’s 3-mile lateral strategy, which entails drilling both vertically and horizontally for distances longer than in 2-mile lateral wells, also could drive increased shareholder returns.”