Chord-XTO Deal? May 22, 2023

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.

Link here.

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.

Abbreviated disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. Full disclaimer at tabbed link.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.  

*******************************
Updated Here

Hart Energy tweeted this yesterday (May 22, 2023). Now, more background, from stories posted May 23, 2023.

From EnergyIntel.com.

Bottom line:

• only 20% of Exxon Mobil's Bakken assets in the deal
• $375 million

From WorldOil.com.

• Chord to pay with cash on hand
• Chord had $592 million in cash on March 31, 2023

From okenergytoday.com.

• 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? 

Zacks is best link right now.

• 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