Is CHRD a good stock to buy? We came across a bullish thesis on Chord Energy Corporation on Old Rope Research’s Substack. In this article, we will summarize the bulls’ thesis on CHRD. Chord Energy Corporation’s share was trading at $127.06 as of April 20th. CHRD’s trailing P/E was 167.00 according to Yahoo Finance.
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At current oil prices of $65/bbl, Chord’s reserves imply a PV-10 of roughly $9 billion, tightly aligned with its $8.5 billion enterprise value. However, only 20% of production is hedged, leaving the company highly exposed to spot price movements. In a scenario where Brent and WTI average $100/bbl, Chord’s operating leverage is substantial: margins expand nonlinearly, turning previously marginal PUD wells and tail-end production into highly profitable assets, potentially lifting PV-10 to ~$17 billion.
This dynamic is reinforced by Chord’s consolidation of the Bakken via the Whiting merger and technological improvements like four-mile laterals, which materially lower lifting costs and increase recoverable volumes. Traditional concerns around North Dakota’s distance from markets and pipeline bottlenecks remain, but in a protracted Middle East quagmire, incremental barrels from the Bakken become marginal supply, enhancing the company’s pricing power.
Chord effectively becomes a high-delta call option on geopolitical tension, where prolonged elevated oil prices could unlock exceptional value. Conversely, if geopolitical disruption proves transient, the company’s economics revert to a high-cost, moderate-margin wildcatter profile. Overall, CHRD offers a scenario-driven asymmetric upside, with operational efficiency and geopolitical tailwinds positioning it for potential substantial revaluation relative to current market pricing.
Previously, we covered a bullish thesis on Occidental Petroleum Corporation (OXY) by Magnus Ofstad in May 2025, which highlighted its low-cost Permian assets, diversified operations, and potential upside from carbon capture initiatives. OXY’s stock price has appreciated by approximately 26.57% since our coverage. Old Rope Research shares a similar view but emphasizes Chord Energy (CHRD)’s asymmetric upside from operational leverage and exposure to elevated oil prices.
Chord Energy Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held CHRD at the end of the fourth quarter which was 49 in the previous quarter. While we acknowledge the risk and potential of CHRD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CHRD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
