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
Are Shale Producers Getting Credit for Reining in Spending Frenzy?
2024-12-10 - An unusual reduction in producer hedging found in a Haynes and Boone survey suggests banks are newly open to negotiating credit terms, a signal of market rewards for E&P thrift.
Twenty Years Ago, Range Jumpstarted the Marcellus Boom
2024-11-06 - Range Resources launched the Appalachia shale rush, and rising domestic power and LNG demand can trigger it to boom again.
SLB Earnings Rise, But Weakened 4Q and 2025 Ahead Due to Oil Glut
2024-10-22 - SLB, like Liberty Energy, revised guidance lower for the coming months, analysts said, as oilfield service companies grapple with concerns over an oversupplied global oil market.
Woodside Reports Record Q3 Production, Narrows Guidance for 2024
2024-10-17 - Australia’s Woodside Energy reported record production of 577,000 boe/d in the third quarter of 2024, an 18% increase due to the start of the Sangomar project offshore Senegal. The Aussie company has narrowed its production guidance for 2024 as a result.
Private Equity Gears Up for Big Opportunities
2024-10-04 - The private equity sector is having a moment in the upstream space.
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.