Chord Energy Corp (CHRD)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 1,168,960 1,367,660 1,370,450 -2,998 -4,055,520
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 8,702,260 5,076,620 4,679,800 1,032,900 915,942
Return on total capital 13.43% 26.94% 29.28% -0.29% -442.77%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,168,960K ÷ ($—K + $8,702,260K)
= 13.43%

Chord Energy Corp's return on total capital has displayed significant fluctuations over the years based on the provided data. The company experienced a substantial negative return on total capital of -442.77% as of December 31, 2020, indicating that the company's capital allocation and utilization were inefficient, resulting in significant value destruction.

However, there was a notable improvement in the following years, with the return on total capital increasing to -0.29% as of December 31, 2021. This suggests that the company made efforts to enhance its capital efficiency, albeit still operating at a suboptimal level.

The positive trend continued into the subsequent years, with the return on total capital showing substantial improvements. By December 31, 2022, the company achieved a return of 29.28%, indicating a considerable leap in capital efficiency and profitability.

This positive trend was maintained in the following year, with the return on total capital slightly decreasing to 26.94% as of December 31, 2023, which still reflected a strong performance in utilizing its total capital effectively to generate profits.

By December 31, 2024, the return on total capital for Chord Energy Corp stood at 13.43%, indicating a continued positive performance in capital utilization, although at a lower rate compared to the previous years.

Overall, the analysis of Chord Energy Corp's return on total capital demonstrates a volatile but generally improving trend, showing the company's efforts to optimize its capital allocation and generate returns for its investors.