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)

• 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