Chord Energy Corp., Houston, the combine created from the now-closed merger of Oasis Petroleum Inc. and Whiting Petroleum Corp., plans to spend $825-865 million in 2023 with about 80% allocated to drilling and completions while holding oil volumes flat to slightly growing year-over-year pro forma for the merger (OGJ Online, July 1, 2022).
Some $20 million of the total 2023 budget is a carryover from fourth-quarter 2022 due to weather delays, which impacted production and deferred development activity, the Williston basin-focused company said in an earnings report Feb. 22.
Weather delays will also impact first-quarter 2023 total volumes as winter weather in January caused downtime and deferred activity. Volumes are expected to increase sequentially each quarter with fourth-quarter 2023 volumes the highest of the year, the company said.
This year, Chord plans 90-94 gross operated wells turned-in-line (TIL) with an average working interest of about 73%. Some 50% of are expected to be 3-mile laterals. Completions activity will be concentrated in this year’s second and third quarters with over two-thirds of TILs expected during these quarters. First-quarter 2023 is expected to have approximately 11-15 back-end-weighted TILs.
The company produced 171,300 boe/d in fourth-quarter 2022, with oil volumes of 95,800 b/d. Exploration and production spending as well as other capital expenditures were $164.1 million in the quarter. Net cash provided by operating activities was $478.4 million and net income was $377.6 million.
First-quarter 2023 total volumes of 161,300-166,300 boe/d are expected on a first-quarter budget of $175-205 million. For full year 2023, total volumes of 165,500-172,000 boe/d are expected.
