Link here for today's news.
Bolt-on acquisition:
- $170 million "initial" purchase price from private party
- seller may earn an additional $5 million in contingent payments in 2023 if WTI exceeds $92.50 on December 30, 2022
- average production over next twelve months: 2,500 boepd, 2-stream; ~ 83% oil)
- 17.5 net undeveloped locations
- includes 2.6 net wells in process
- 3,500 net acres
- acquired assets in Dunn, McKenzie, and Williams counties
- assets operated primarily by MRO, CLR, and COP
- back-of-the-envelope:
- flowing price:
- $170 million / 2,500 boepd = $65,000 per flowing boepd
- $170 million / 3,500 net acres = $50,000 / acre
- unhedged cash flow, forward one year; around $75 million
- strong free cash flow with about $25 million annual sustaining capital expenditures to maintain produciton
- $6 million + to drill / complete a Bakken well; with inflation, maybe $8 million
On-going operations (2022):
- spud wells to grow to 65 net wells, a 10-well increase compared to original forecast
- average wellhead IRR expected to exceed 100%
- annual production: 77K on high end, up from 76K on high end
- total CAPEX: $470 million on high end, up from $415 million on high end
- net wells turned-in-line: 56.5 on high end, up from 52 on high end
Shareholder returns:
- purchasing preferred stock has reduced annualized dividend payments by $3.6 million per year
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