Chord Energy price target raised to $218 from $205 at Piper Sandler

Piper Sandler analyst Mark Lear raised the firm’s price target on Chord Energy (CHRD) to $218 from $205 and keeps an Overweight rating on the shares. The company announced it is acquiring Enerplus (ERF) in a stock and cash deal that valued the company at $4.2B, including debt and represented a 15% premium to Enerplus’ prior day close. The firm takes a first pass on the pro-forma model, and while it recognizes that Chord is paying a full price, there’s no question it is getting some of the best inventory in the Bakken. Piper estimates the deal is 2%-3% accretive to FY25 EPS, CPS and shareholder return, so by no means a steal, but anticipates upside to stated synergies driven by optimized allocation and increased three-mile adoption.