Chord Energy Announces Divestiture of Non-Operated Marcellus Assets

The Marcellus sale refocuses Chord on the Williston Basin while shifting its cost and commodity mix and reducing expected leverage.

Rhea-AI Summary

Chord Energy (CHRD) agreed to sell its entire non-operated Marcellus position to POSCO International for total gross consideration of $550 million, with closing expected in 4Q26 subject to customary conditions.

The divested assets comprise about 32,000 net acres and trailing 12‑month production of roughly 121 MMcfpd of 100% residue gas. Chord received a $55 million deposit, with the balance due at closing, and the deal value equates to roughly 6x Adjusted EBITDA based on $3.50/MMBtu Henry Hub pricing. The effective date is July 1, 2026. Chord expects net leverage to decline further and plans to deploy proceeds under its existing capital allocation framework.

After the sale, Chord’s portfolio will be focused on the Williston Basin. On a pro forma basis, oil weighting is expected to rise 4–5 percentage points, annual CapEx to fall by about $25 million, LOE to rise $0.70–$0.80 per Boe, Cash GPT to decrease $0.20–$0.25 per Boe, gas realizations to decline 16–30 percentage points, and production taxes to rise 0.15%–0.45% of oil, NGL and gas sales.

Positive

• $550MM gross consideration for non-operated Marcellus assets, with $55MM deposit received
• Transaction priced at about 6x Adjusted EBITDA for the divested Marcellus assets
• Chord expects net leverage to decline further and remain below peer levels after divestiture
• Annual CapEx expected to decrease by approximately $25MM post-divestiture
• Pro forma oil weighting increases by roughly 4–5 percentage points
• Pro forma Cash GPT is expected to decrease by $0.20–$0.25 per Boe

Negative

• Pro forma gas realizations projected to decline by about 16–30 percentage points
• Pro forma LOE expected to increase by approximately $0.70–$0.80 per Boe
• Pro forma production taxes projected to rise by about 0.15%–0.45% of oil, NGL and gas sales

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Details

Market Reaction – CHRD

$148.52 $155.51 Day Range

$8.14B Market Cap

Following this news, CHRD has declined 5.24%, reflecting a notable negative market reaction. Our momentum scanner has triggered 34 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $148.77. Trading volume is above average at 1.6x the average, suggesting increased trading activity.

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Market Context

At publication, CHRD had gained 3.82% pre-headline, while four listed peers also rose; the divestitu...

Analysis

At publication, CHRD had gained 3.82% pre-headline, while four listed peers also rose; the divestiture arrived during an aligned energy-stock move rather than an isolated company-specific pre-publication move.

Key Figures

Gross consideration: $550MM Deposit: $55MM Adjusted EBITDA multiple: 6x Adjusted EBITDA +5 more

Gross consideration

$550MM

Sale of the entire non-operated Marcellus position

Deposit

$55MM

Received at transaction announcement; remainder payable at closing

Adjusted EBITDA multiple

6x Adjusted EBITDA

Based on gross proceeds and $3.50/MMBtu Henry Hub

Net acreage

32k net acres

Divested non-operated Marcellus position

TTM production

121 MMcfpd

Divested Marcellus assets

Expected closing

Q4 2026

Subject to customary closing conditions

Oil weighting

+4 to 5 percentage points

Expected post-divestiture pro forma impact

Annual CapEx change

$25MM decrease annually

Expected post-divestiture pro forma impact

Key Terms

non-operated, adjusted ebitda, henry hub, net leverage, +1 more

5 terms

non-operated technical

"Divesting non-operated Marcellus position consisting of approximately 32k net acres"

A non-operated interest is an ownership stake in an asset or project where the holder shares in profits and costs but does not control day-to-day management or operational decisions. Like a passive partner in a small business who puts up capital but lets someone else run the store, non-operated positions mean the investor’s returns and risks depend on the chosen operator’s performance and choices rather than their own actions.

adjusted ebitda financial

"Transaction value represents approximately 6x Adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

henry hub technical

"based on gross proceeds of $550MM and $3.50/MMBtu Henry Hub"

Henry Hub is a physical natural gas pipeline junction in Louisiana that serves as the standard pricing point for U.S. natural gas contracts and the benchmark used in major futures markets. Think of it as the central marketplace where a single quoted price is set; that price acts like a reference tag that influences energy company revenues, utility costs, commodity trading and related stock valuations, so movements there can ripple through broader markets.

net leverage financial

"Chord's net leverage is expected to decline further as a result of the divestiture"

Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.

non-gaap financial measure financial

"Non-GAAP financial measures, including Adjusted EBITDA, Net Leverage and Cash GPT"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Sept. 16, 2026 /PRNewswire/ -- Chord Energy Corporation (NASDAQ: CHRD) ("Chord," "Chord Energy," or the "Company") announced today that one of its subsidiaries has entered into an agreement to sell its entire non-operated Marcellus position to POSCO International Corporation for total gross consideration of $550MM. The transaction is expected to close in the fourth quarter of 2026 subject to customary closing conditions.

Transaction Highlights:

• Divesting non-operated Marcellus position consisting of approximately 32k net acres and trailing 12-month (TTM) production of approximately 121 MMcfpd. Volumes consist of 100% residue gas with no NGLs;
• Transaction is highly accretive across key metrics. Transaction value represents approximately 6x Adjusted EBITDA⁽¹⁾ based on gross proceeds of $550MM and $3.50/MMBtu Henry Hub;
• Chord received a $55MM deposit with the remaining consideration payable at closing. Effective date for the transaction is July 1, 2026;
• Chord's net leverage⁽²⁾ is expected to decline further as a result of the divestiture, and remain well below peer levels;
• Proceeds will be deployed over time in a manner consistent with the Company's disciplined capital allocation framework. Following the transaction, Chord's portfolio will be focused exclusively in the Williston Basin, where the Company expects to continue driving significant value creation through its size, scale and robust inventory life.

(1)	Non-GAAP financial measure. Adjusted EBITDA multiple is based on an estimated TTM solely with respect to the divested Marcellus assets. See "Non-GAAP Financial Measures" below.
(2)	Non-GAAP financial measure. Net Leverage is defined as net debt (total long-term debt less cash and cash equivalents) at June 30, 2026 divided by TTM Adjusted EBITDA at June 30, 2026. See "Non-GAAP Financial Measures" below.

"The divestiture of our non-operated Marcellus position builds on Chord's multi-year track record of disciplined capital allocation and portfolio optimization," said Danny Brown, Chord Energy's Chief Executive Officer. "Following the close of the Enerplus transaction in May 2024, Chord identified its non-operated Marcellus position as non-core. Since then, we have benefited from the Marcellus' significant free cash flow generation and are pleased to bring substantial value forward through the divestiture announced today. This highly accretive transaction allows us to further strengthen our peer-leading balance sheet and focus on creating significant value from our world-class Williston Basin position. Chord's disciplined capital allocation, operational efficiency, and financial strength position us to create value while navigating a volatile macro environment."  

Chord expects to update guidance in conjunction with its 3Q26 earnings release in November. On a pro forma basis, Chord expects the following impacts to its post-divestiture key metrics:

• Oil weighting would increase by approximately 4 to 5 percentage points;
• Given stronger gas realizations in the Marcellus, gas realizations would decrease by approximately 16 to 30 percentage points;
• Due to higher oil weighting in the Williston Basin, LOE would increase by approximately 70 to 80 cents per Boe;
• Cash GPT³ would decrease by 20 to 25 cents per Boe;
• Production taxes would increase by approximately 0.15% to 0.45% of oil, NGL, and natural gas sales; and
• CapEx would decrease by approximately $25MM annually.

(3)	Non-GAAP financial measure. See "Non-GAAP Financial Measures" below.

Moelis & Company LLC and RBC Capital Markets acted as strategic and financial advisors to Chord Energy, and Orrick, Herrington & Sutcliffe LLP acted as legal advisor.

Bank of America acted as strategic and financial advisor to Chord's counterparty, POSCO International Corporation, and DLA Piper acted as legal advisor.

Non-GAAP Financial Measures

Non-GAAP financial measures, including Adjusted EBITDA, Net Leverage and Cash GPT included in this press release,  are not prepared in accordance with GAAP and are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company believes that these non-GAAP financial measures are useful supplemental measures that provide an indication of the results generated by the Company's principal business activities. However, these measures are not recognized by GAAP and do not have a standardized meaning prescribed by GAAP. Therefore, these measures may not be comparable to similar measures provided by other issuers. From time to time, the Company provides forward-looking forecasts of these measures; however, the Company is unable to provide a quantitative reconciliation of the forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measures. The reconciling items in future periods could be significant. To see how the Company reconciles its historical presentations of its non-GAAP financial measures to the most directly comparable GAAP measures, please visit the Investors—Documents & Disclosures—Non-GAAP Reconciliation page on the Company's website at https://ir.chordenergy.com/non-gaap.

Forward-Looking Statements and Cautionary Statements

Certain statements in this press release, other than statements of historical facts, that address activities, events or developments that Chord expects, believes or anticipates will or may occur in the future, including any statements regarding future opportunities for Chord, future financial performance and condition, guidance and statements regarding Chord's expectations, beliefs, plans, financial condition, objectives, assumptions or future events or performance are forward-looking statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "probable," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "would," "potential," "may," "might," "likely," "plan," "positioned," "strategy" and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. Specific forward-looking statements include statements regarding Chord's plans and expectations with respect to the return of capital plan, production levels, anticipated financial and operating results, other guidance, and the effects and anticipated benefits of the Marcellus divestiture. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995.

These forward-looking statements are based on certain assumptions made by Chord based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chord, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, the ability to complete or realize the anticipated benefits from the Marcellus divestiture, changes in crude oil, NGL and natural gas realized prices, uncertainty regarding the future actions of foreign oil producers and the related impacts such actions have on the balance between the supply of and demand for crude oil, NGLs, and natural gas, the actions taken by OPEC+ with respect to oil production levels and announcements of potential changes in such levels, including the ability of the OPEC+ countries to agree on and comply with production levels, changes in trade policies and regulations, including increases or change in duties, current and potentially new tariffs or quotas and other similar measures, as well as the potential impact of retaliatory tariffs and other actions, war between Russia and Ukraine, military conflicts in the Red Sea Region, Iran, and the wider Middle East and their effect on commodity prices, changes or uncertainty in general economic and geopolitical conditions, inflation rates and the impact of associated monetary policy responses, including fluctuating interest rates, logistical challenges and supply chain disruptions, including as a result of conflicts, our business strategy, including the continued implementation of our 4-mile well program, the geographic concentration of our operations, uncertainties in estimating proved reserves and forecasting production results, drilling and completion of wells, operational factors affecting the commencement or maintenance of producing wells, the availability of infrastructure and midstream service providers, our ability to realize the anticipated benefits from acquisitions, the condition of the capital markets generally, as well as Chord's ability to access them, the proximity to and capacity of transportation facilities, uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Chord's business and other important factors that could cause actual results to differ materially from those projected as described in Chord's reports filed with the U.S. Securities and Exchange Commission (the "SEC").

Any forward-looking statement speaks only as of the date on which such statement is made and Chord undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. Additional information concerning other risk factors is also contained in Chord's most recently filed Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other SEC filings.

About Chord Energy

Chord Energy Corporation is an independent exploration and production company with quality and sustainable long-lived assets primarily in the Williston Basin. The Company is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely and responsibly to develop its unconventional onshore oil-rich resources in the continental United States. For more information, please visit the Company's website at www.chordenergy.com.

Media Contact: IR@chordenergy.com 

 

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SOURCE Chord Energy

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What exactly is Chord Energy selling in this divestiture?

Chord is selling its entire non-operated Marcellus position, which consists of approximately 32,000 net acres with trailing 12‑month production of about 121 MMcfpd of 100% residue gas and no NGLs.

When is the Marcellus transaction expected to be effective and to close?

The transaction has an effective date of July 1, 2026, and closing is expected in the fourth quarter of 2026, subject to customary closing conditions.

How does Chord plan to use the divestiture proceeds?

Chord plans to deploy the $550 million of gross proceeds over time in a manner consistent with its existing disciplined capital allocation framework, which the company says supports balance sheet strength and value creation.

How will Chord’s operational focus change after the sale?

Following the transaction, Chord’s portfolio will be focused exclusively in the Williston Basin, where the company expects to continue pursuing value creation through its size, scale and inventory depth in that region.

When will Chord update its formal guidance to reflect the divestiture?

Chord expects to update its guidance in conjunction with its third-quarter 2026 earnings release in November, providing pro forma metrics that reflect the Marcellus asset sale.