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Monday, May 22, 2023

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 EnergyChord 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.

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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
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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)

 

 

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