cogal
Chord Energy Corporation (NASDAQ:CHRD) recently signed a merger agreement, which is expected to bring a significant amount of synergies in the coming years. I also found several sales of assets. Hence, CHRD may sell new assets in the near
Chord Energy: Stock Repurchases, Sale Of Assets, Synergies, And Extremely Cheap
Summary
- Chord Energy Corporation's recent merger and asset sales are expected to enhance cash flow and balance sheet, making CHRD appear undervalued.
- Stock repurchases and warrant expirations in 2025 could increase demand and valuation, supported by consistent EBITDA growth over the last decade.
- DCF models indicate significant upside potential, with fair valuations higher than the current stock price, despite recent EPS declines and analyst downgrades.
- Potential risks include goodwill impairments, fluctuating oil prices, and failed synergies, which could negatively impact future free cash flow and stock valuation.
Like the common kingfisher or Alcedo Atthis searches for small fish, I research small, and medium cap companies in Europe, the United States, and South America. You can find a common kingfisher in my profile.With close to 14 years in the financial industry, I worked for an equity research firm in NY, one investment fund in Mexico, and one investment bank in Ireland. Right now, I am a private investor. I usually cover mature industries such as mining, oil and gas, real estate, and others. I do not invest in business models that I do not understand. I appreciate M&A deals, deep value investments, and dividend investing. My investments usually target an internal rate of return of close to 5%-7%. My purpose for writing on Seeking Alpha is simple. Readers can provide fantastic feedback about stocks I own. Note that I do not provide financial advice. Everything I write is my opinion. My articles could include small mistakes about the future. Like other analysts, I offer my expectations about the future EPS, net revenue, FCF, and other financial figures. They could be wrong. If you want me to revise some of my financial figures, please send me a message. The investments that I offer may not be suitable for all SA readers. If you have any doubts, in my view, you should seek advice from another financial advisor.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CHRD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.