Chord Energy's (CHRD) 4-mile lateral program could drive a positive Q3 update, with the company at or above the high end of its quarterly oil volume guidance for three straight quarters, a trend which could continue, UBS Securities said.

The brokerage said in a Monday note that it sees Chord buying back nearly 10% of its market capitalization in 2027 at strip while maintaining a cash balance of more than $500 million to use for potential inventory additions.

UBS models total Q3 production of 281,300 barrels of oil equivalent per day, within the guidance range of 277,700 to 284,000 barrels of oil equivalent per day. It models oil volumes of 163,300 barrels per day, compared with the 161,500 to 164,500 barrels per day guide.

In early 2027, the brokerage sees oil volumes trending in the 159,000 to 161,000 barrels per day range on capital expenditure of $1.4 billion to $1.45 billion, in line with the Street.

UBS kept a buy rating on Chord Energy and raised its price target to $193 from $184.

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