Chord Energy

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 6 Aug 2026 and 4 later 8-Ks.

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• Our business depends on third-party transportation and processing facilities and other assets that are owned by third parties.

  Could happen

  The marketability of our crude oil, NGL and natural gas depends in part on the availability, proximity and capacity of pipeline systems, processing facilities, and rail transportation assets owned by third parties. The lack of available capacity on these systems and facilities, whether as a result of proration, growth in demand outpacing growth in capacity, physical damage, scheduled maintenance, legal or other reasons such as suspension of service due to legal challenges (see below regarding DAPL), could result in a substantial increase in costs, declines in realized commodity prices, the shut-in of producing wells or the delay or discontinuance of development plans for our properties. The negative effects arising from these and similar circumstances may last for an extended period of time. In many cases, operators are provided only with limited, if any, notice as to when these circumstances will arise and their duration. In addition, concerns about the safety and security of oil and gas transportation by pipeline may result in public opposition to pipeline development and increased regulation of pipelines by PHMSA, and therefore less capacity to transport our products by pipeline.

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• Terrorist attacks or cyber-attacks could have a material adverse effect on our business, financial condition or results of operations and could result in information theft or data corruption.

  Could happen

  • events of non-compliance that could lead to costly investigations and regulatory fines and/or penalties, class action litigation; and • business interruptions that could result in expensive remediation efforts, distraction of management, damage to our reputation or a negative impact on the price of our units.

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• Our operations on the Fort Berthold Indian Reservation of the Three Affiliated Tribes in North Dakota are subject to various federal, state, local and tribal regulations and laws, any of which may increase our costs and have an adverse impact on our ability to effectively conduct our operations.

  Could happen

  The case is currently on remand before the D.C. Federal District Court. The parties previously filed dispositive motions, including motions for summary judgment, but the Court denied these dispositive motions and ruled that factual determinations would need to be made, and would require a trial and full evidentiary record, in order to rule on the riverbed ownership and Table of Content s related issues. The parties are currently required to file a joint status report, informing the Court of the time that would be required for expert testimony and exhibit production, beyond what has already been filed with the prior motions. On January 30, 2026, however, the federal defendants filed a motion to extend the timeline on the joint status report by 90 days to allow sufficient time for an internal review. The Court denied the request and ordered the parties to submit their joint status report by February 17, 2026. The ultimate outcome of this litigation, and any resolution between the parties, is uncertain and cannot be predicted. One or more of these factors may increase our costs of doing business on the Fort Berthold Indian Reservation and may have an adverse impact on our ability to effectively transport products within the Fort Berthold Indian Reservation or to conduct our operations on such lands.

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