Locator: 44726CHORD_XTO.
Full story here (and re-posted below).
Previously posted.
Locator: 44691B.
Chord Energy: to bulk up in the Bakken, divest non-core, Hart Energy. Chord Energy website. A reminder: Chord Energy: Whiting + Oasis.
Is this new or is this an old news story? One never knows with Hart Energy.
Let's see if we can find any other source. I can't find anything else. I haven't checked Chord's website yet.
From the link:
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, 2023, as Chord sheds non-ore acreage outside the basin.
Disclaimer: I am building a position in Chord, but not increasing my overall fossil fuel position. I am selling other energy assets to pay for additional investments in Chord.
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Updated Here
Hart Energy tweeted this yesterday (May 22, 2023). Now, more background, from stories posted May 23, 2023.
Bottom line:
- only 20% of Exxon Mobil's Bakken assets in the deal
- $375 million
- Chord to pay with cash on hand
- Chord had $592 million in cash on March 31, 2023
- 62,000 acres
- 77% of this acreage is undeveloped
Back-of-the-envelope:
- $375 million / 62,000 acres = $6,000 / acre
- $375 million / 6,000 boed = $62,500 / boepd flowing
- 20% of what = 62,000 acres; XTO acreage before sale: 310,000 acres
One wonders if most of the acreage in the deal was "outside" the reservation?
- the acquisition allows Chord Energy to expand six of its pre-acquisitiono drilling spacing units from two miles to three miles
- acreage, fully held by production
- Chord estimates: 123 net 10,000-feet equivalent locations
- low base decline rate of 23%
- oil: 62% of net production from acquired assets
From this blog, but I quit following XTO almost ten years ago:
XOM (XTO)
- June 2, 2014: Fitzsimmons over at Seeking Alpha.
- November, 2012: NOG says 600,000 acres
- September 20, 2012: XOM to buy all DNR acreage in the Williston Basin Bakken (North Dakota and Montana); $1.6 billion deal; 196,000 Bakken acres; but DNR gets XOM acreage in Wyoming and Texas; see XOM below; --> 606,000 net acres?
- Net Bakken acreage (Montana + North Dakota): 410,000 net acres
- Much of it inside the reservation; closely aligned geographically with KOG
- XTO bought Headington, 2008; the Headington group discovered the Elm Coulee field in Montana
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