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 $137.86 as of May 26th. CHRD’s trailing P/E was 201.57 according to Yahoo Finance.
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Chord Energy Corporation operates as an independent exploration and production company in the United States. CHRD is positioned as a leveraged bet on structurally higher oil prices and geopolitical instability, with the thesis arguing that the market is materially undervaluing the company’s Bakken assets under current commodity assumptions. The Williston Basin has historically traded at a discount to the Permian due to higher transportation costs, weaker margins, and infrastructure constraints, but the current geopolitical backdrop has shifted the economics in favor of short-cycle U.S. producers capable of rapidly bringing production online.
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At approximately $65 oil, Chord’s PV-10 is estimated near $9 billion, roughly in line with its enterprise value of $8.5 billion, suggesting the stock is priced for normalized oil markets rather than a prolonged supply disruption scenario. However, with only 20% of production hedged, the company maintains significant upside exposure if oil prices remain elevated. The thesis highlights Chord’s substantial operating leverage, noting that with a breakeven near $45 oil, margins could expand dramatically if crude rises toward $100 per barrel.
Under that framework, margins per barrel increase from roughly $20 to $55, while proved undeveloped reserves and mature wells become materially more valuable. Using a $100 oil price deck, the company’s PV-10 could potentially rise toward $17 billion, implying meaningful upside versus the current valuation.
The thesis also emphasizes operational improvements following the Whiting merger, including longer 4-mile laterals that lower lifting costs and improve recovery efficiency. If geopolitical tensions persist and higher oil prices become the new normal, Chord Energy could emerge as a major beneficiary with the potential for the stock to double from current levels.
Previously, we covered a bullish thesis on Occidental Petroleum Corporation (OXY) by Magnus Ofstad in May 2025, which highlighted the company’s low-cost Permian assets, carbon capture initiatives, and rerating potential tied to improved operational execution. OXY’s stock price has appreciated by approximately 33.50% since our coverage. Old Rope Research shares a similar view but emphasizes Chord Energy Corporation’s (CHRD) operating leverage and substantial valuation upside in a sustained higher oil price environment.
Chord Energy Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held CHRD at the end of the first quarter which was 45 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.
