Chord plans production maintenance, eyes 4-milers and possible Marcellus sale
Chord Energy Corp., Houston, plans to run a production maintenance program this year, aiming for oil production of 150,000-155,000 b/d, dropping to four rigs from five by midyear, while expanding its 4-mile lateral drilling program in North Dakota’s Williston basin.
The company detailed plans as part of its fourth-quarter 2024 results, a quarter in which it successfully drilled its first 4-mile lateral with completion operations beginning in this year’s first quarter.
Chord is currently running one full-time frac crew and one spot crew and expects to turn in line (TIL) 130-150 gross operated wells (about 40% 3-mile laterals) in 2025. Of those, 22-32 are expected in first-quarter 2025, with the remainder to be spread out across the year.
Total 2025 capital expenditures of $1.34-1.46 billion are expected. The 2025 outlook is consistent with Chord's 3-year outlook reported in November 2024 to deliver oil volumes of 152,000-153,000 b/d of oil for $1.4 billion of capex annually.
Longer laterals
On an earnings call, chief operating officer Darrin Henke said the company is planning “several more” 4-mile laterals this year, and that “with success, [is] likely to implement many more in 2026 and beyond.” The initial approach to 4-mile wells will be converting two, 2-mile drilling spacing units to one, 4-mile drilling spacing unit.
“However,” he said, “similar to Chord’s evolution on the 3-mile program, as we make progress on execution and drive the risk adjusted returns higher, we ultimately could look to convert some of our existing 3-mile inventory into 4-mile wells.”
Asked about any operational challenges with the 4-mile lateral, Henke said the first has “gone off without a hitch,” with spud rig release at 14.5 five days, and a frac job that went “beautifully.”
Adding to the discussion on the 4-mile lateral, chief executive officer Daniel Brown said the ‘straight’ 4-milers is the plan, but that the company is also looking at alternate well shapes.
“If we can’t go to straight, we’ll look at alternate [well shapes] because we recognize that capital efficiency of that incremental foot of lateral is almost always going to be better. But the best incremental foot is going to be a straight incremental foot.”
Inventory, Marcellus
As for inventory, Brown said 2024 was ‘transformational’ for the company, having solidified its position in the Williston basin through its combination with Enerplus, which closed in May.
“We do think there’s advantages to scale in this industry, but at the end of the day, the size has to make you better, not just bigger,” he said. As for additional acquisitions, Brown said the company will continue to stay patient, noting if it does make a move, it’ll be “something that delivers full cycle value.”
One area on which it may move is its non-operated Marcellus position. Asked on the call about a possible divestment, Brown said the position is a great asset under a very capable producer, but “it’s not a core portion of the portfolio and we’re going to look to see how we maximize value delivery to shareholders from that asset over time.”
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
