Chord Energy is Monday's IBD 50 Stocks To Watch pick as the oil producer's stock currently lives in a buy zone from a flat base. CHRD stock rose in a breakaway gap last week as oil prices rebounded sharply amid the continuing crisis in the Middle East.
Chord continued to track higher Monday, rising fractionally to close at 168.95. Its buy point was 167.81, according to IBD MarketSmith.
The stock has a Composite Rating of 91, out of a best-possible 99. Its Relative Strength Rating also sits at 91. But Chord's EPS Rating lags at 34.
In its second-quarter results, Chord's sales grew 16% to $912.1 million but earnings plunged 50% to $3.65 per share. Still, CHRD stock rebounded off the 50-day line after results showed production of 96.4 million barrels of oil a day came in at the higher end of the company's outlook.
Acquisitions Help Shares
During the quarter, the company also acquired some oil assets from XTO, a wholly owned subsidiary of Exxon, for $375 million. It also divested some noncore assets. According to Chord Chief Executive Danny Brown, the acquisition of XTO assets created "significant accretion for shareholders."
Chord's adjusted free cash flow came in at $105.3 million for the second quarter. The stock also got a lift after the company maintained its oil volume outlook for the fiscal year after its latest asset purchase and divestitures. Further, the company expects a free cash flow outlook of $735 million for the year.
The company paid a cash dividend of $1.36 per share to shareholders on record as of Aug. 15.
CHRD Stock Outperforms S&P 500
Shares hit an all-time high of 181.34 in June 2022. The stock has gained 24% so far this year, outperforming the S&P 500's 14% gain.
Mutual funds own 68% of outstanding shares. More funds have been buyers of CHRD stock over the past four quarters. Exchange traded funds hold the stock as well. The iShares Core S&P Mid-Cap ETF and the SPDR S&P Oil & Gas Exploration and Production ETF hold CHRD stock.
CHRD stock is in the oil and gas exploration and production group, which stands a lofty 19th place among IBD's 197 industry groups. The company has oil and gas assets in the Williston Basin that stretches across parts of Montana, North Dakota and South Dakota.
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