Chord Energy's Strategic Acquisition and Strong Capital Returns Justify Buy RatingWe rea ffirm our Buy ra ng on valua on, underpinned by its strong, stable FCF yield providing the capacity for superior capital returns while maintaining low financial leverage. We maintain our price target at $140. on details. As shown in Figure 2, CHRD is acquiring ~48,000 net acres (86% WI, 82% 8/8th NRI and 100% Basin overlapping its exis ng footprint on on (FBIR) and Li le Knife. The deal adds 90 net loca ons (72 net operated) with 10,000 equivalent laterals. Although, this con guous acreage posi on is expected to allow for 3- and 4-mile lateral development. Specifically, with synergies with its exis ng acreage, CHRD expects ~20% of the acquired loca ons to be conducive to 2- mile laterals, ~20% to 3-mile laterals, ~60% to 4-mile laterals.