Chord Energy Corp. has strengthened its position in the Williston Basin with an agreement to acquire core acreage from Exxon Mobil Corp. subsidiary XTO Energy Inc. and affiliates for $375 million cash. (Source: Shutterstock.com)
Chord Energy Corp. has strengthened its position in the Williston Basin with an agreement to acquire core acreage from Exxon Mobil Corp. subsidiary XTO Energy Inc. and affiliates for $375 million cash.
The acquisition was announced May 22 as Chord sheds non-core acreage outside the basin.
RELATED: Chord Energy Aims to Bulk Up in Bakken, Divest Non-core
The nearly one-year-old company, formed by a merger of Whiting Petroleum and Oasis Petroleum in 2022, will add about 62,000 acres—of which about three-quarters is undeveloped—within or adjacent to its near-term development program, the company said in a news release.
“These low-cost, tier-one assets are highly competitive with our existing portfolio and further extend our inventory runway,” Chord CEO Danny Brown said. “Consolidation in the core of the basin supports longer laterals, higher capital and operating efficiencies, strong financial returns and sustainable free cash flow generation.”
The acquired acreage enables Chord to expand six of its pre-acquisition drilling spacing units from 2 miles to 3 miles. The acreage, which is 100% held by production, has 123 estimated net 10,000-ft equivalent locations, the company said.
“The transaction creates significant accretion for shareholders across all metrics, while maintaining pro forma leverage below our target,” Brown added.
With an effective date of April 1, the transaction is expected to close at the end of June 2023.
Recommended Reading
Murphy Shares Drop on 4Q Miss, but ’25 Plans Show Promise
2025-02-02 - Murphy Oil’s fourth-quarter 2024 output missed analysts’ expectations, but analysts see upside with a robust Eagle Ford Shale drilling program and the international E&P’s discovery offshore Vietnam.
Hess Corp. Bucks E&P Trend, Grows Bakken Production by 7%
2025-01-29 - Hess Corp. “continues to make the most of its independent status,” delivering earnings driven by higher crude production and lower operating costs, an analyst said.
RWE Slashes Investment Upon Uncertainties in US Market
2025-03-20 - RWE introduced stricter investment criteria in the U.S. and cut planned investments by about 25% through 2030, citing regulatory uncertainties and supply chain constraints as some of the reason for the pullback.
The New Minerals Frontier Expands Beyond Oil, Gas
2025-04-09 - How to navigate the minerals sector in the era of competition, alternative investments and the AI-powered boom.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.