![Benchmark Closes Anadarko Deal, Hunts for More M&A](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/04/benchmark-closes-anadarko-deal-hunts-more-ma.jpg?itok=gOTpNkcF)
Benchmark Energy II closed a $145 million acquisition of western Anadarko Basin assets in Oklahoma and Texas. (Source: Shutterstock/ Benchmark Energy)
Benchmark Energy II LLC closed an acquisition of Anadarko Basin assets from private sellers, the company said April 17.
Benchmark Energy II, a majority owned subsidiary of publicly traded Acacia Research Corp., acquired approximately 140,000 net acres in the western Anadarko Basin from Revolution Resources II, Jones Energy and several related affiliates, according to regulatory filings.
The deal, announced in February, includes 470 operated producing wells in Oklahoma and Texas. Benchmark also picked up operated and non-operating interests across 27,000 net acres in the emerging Cherokee play.
The aggregate purchase price to the sellers was $145 million in cash. Acacia’s share of the consideration, including fees, was approximately $59.9 million.
The remaining consideration was funded through revolving credit facility borrowings and $15.25 million in contributions from other Benchmark investors, Acacia said in a filing with the U.S. Securities and Exchange Commission.
The acquired assets include liquids-rich, low-decline production of approximately 6,000 boe/d. Annualized asset-level cash flows are forecast at about $45 million.
Following the deal, Benchmark’s portfolio was balanced at approximately 60% liquids and 40% natural gas.
“We are excited to work closely with the Benchmark team as they continue to execute on their strategy of acquiring mature cash flowing properties, improving operations, maximizing production, and most importantly, returning capital,” said Acacia CEO MJ McNulty Jr.
“With this transformative acquisition now closed, we look forward to continuing to identify and acquire valuable businesses at attractive valuations and deploying disciplined operating and capital allocation methods to create value for our stockholders,” McNulty Jr. said.
Benchmark sees an opportunity to enhance the new Anadarko asset with artificial lift optimization, workovers and return-to-production projects.
The latest deal came a little over four years after Revolution Resources acquired Jones Energy Inc.’s assets in Texas and Oklahoma.
Outside of energy, Acacia acquires and operates businesses in the industrial, healthcare and mature technology sectors.
RELATED
Benchmark Buys Revolution Resources’ Anadarko Assets in $145MM Deal
Recommended Reading
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.
Pembina Completes Partial Redemption of Series 19 Notes
2024-07-08 - The redemption is part of Pembina Pipeline’s $300 million (US$220.04 million) aggregate principal amount of senior unsecured medium-term series 19 notes due in 2026.
Norwegian Energy Data Companies PGS, TGS Complete Merger
2024-07-02 - Norwegian companies PGS and TGS have completed their merger to create a full-service energy data company.
BPX’s Koontz: The Rise of a Shale Man
2024-07-02 - CEO Kyle Koontz takes the reins of BPX Energy’s rapid onshore growth amid big changes at BP.
LandBridge Chair: In-basin Data Centers Coming for Permian NatGas
2024-06-28 - Newly public Delaware Basin surface-owner LandBridge Co. has a 100-year lease agreement with one developer that could result in ground-breaking in two years and 1 GW in demand.