Chord Energy Acquires $550M in Williston Basin Assets from ExxonMobil Subsidiary XTO Energy

Chord Energy Corporation (NASDAQ:CHRD) is one of the most promising long-term stocks to buy. On September 15, Chord Energy announced that its wholly-owned subsidiary entered into a definitive agreement to strategically acquire Williston Basin assets from XTO Energy Inc. and its affiliates, which are subsidiaries of Exxon Mobil Corporation.

The total cash consideration for the acquisition is $550 million, subject to customary purchase price adjustments. Chord Energy plans to fund the acquisition using a combination of cash on hand and borrowings. The acquired assets are high-quality core acreage in the Williston Basin, featuring 48,000 net acres that are 100% held by production.

The working interest is 86% operated, and the net revenue interest is 82% (8/8ths). This acquisition adds 90 net 10,000 foot equivalent locations (with 72 net operated) to Chord’s inventory, extending the company’s inventory life. The quality of the inventory is highlighted by low average NYMEX WTI breakeven economics, estimated to be in the $40s, which makes them immediately competitive within Chord’s existing program and helps lower the weighted-average breakeven of the entire portfolio.

Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company in the US. The company acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin.

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Disclosure: None. This article is originally published at Insider Monkey.