Chord Energy's 4-Mile Laterals Seen Driving Higher Free Cash Flow, Buybacks, UBS Says

Chord Energy's (CHRD) growing use of 4-mile laterals is expected to drive efficiency gains that support higher free cash flow and buybacks as the company builds on its strong first quarter, UBS Securities said in a Q2 earnings preview. The firm said in a Thursday note that early performance from the longer laterals has been strong, with well costs tracking below budget. It also pointed to the company's first full 4-mile development pad, where full-pad development savings were realized. UBS said frac efficiency in Q1 was 24% higher than the 2025 average, reflecting improved operational efficiency. The investment firm expects capital spending to decline in H2 as the company drops a frac crew, with oil production remaining roughly flat in Q3 before declining in Q4. The brokerage lowered its financial forecasts for 2026 and 2027 on a weaker oil and gas price outlook. UBS reiterated its buy rating and lowered its price target to $153 from $179. Shares of Chord Energy were down 1.3% in Friday afternoon trading. Price: $116.99, Change: $-1.49, Percent Change: -1.26%