Tuesday, May 23, 2023

Chord-XTO Deal -- May 23, 2023

Locator: 44726CHORD_XTO. 

Hart Energy tweeted this yesterday. Now, more background.

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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