Date: September 15, 2025
Transaction Value: $550 million (cash consideration, subject to adjustments)
Seller: XTO Energy Inc. and affiliates (subsidiaries of ExxonMobil)
Buyer: Chord Energy Corporation (NASDAQ: CHRD)
Bakken Oil & Gas Account Operator Directory – $10
Includes: Account Name, Location, Phone, Website, Wells Drilled….
Key Transaction Details
- Acreage Acquired:
- 48,000 net acres in the Williston Basin core.
- 86% operated working interest.
- 82% 8/8ths net revenue interest.
- 100% held by production.
- Inventory:
- 90 net 10,000-foot equivalent locations (72 operated).
- Includes Chord-operated wells, new DSUs, and royalty interests.
- Economics:
- Low average WTI breakeven in the $40s.
- Immediately competitive for capital allocation.
- Lowers Chord’s weighted-average breakeven portfolio-wide.
- Development Potential:
- Contiguous DSUs enable 3–4 mile laterals.
- Strong integration with Chord’s existing footprint.
- Production Impact:
- ~9 MBoepd (78% oil).
- Base decline rate: ~23%.
- Opportunity to enhance operating margins on existing production.
Strategic & Financial Impact
- Accretive: Expected to enhance cash flow, free cash flow, NAV, and all key metrics both near and long term.
- Balance Sheet: Net leverage expected at 0.5x–0.6x post-close, moving below 0.5x by mid-2026.
- Funding: Combination of cash on hand and borrowings.
- Closing Timeline: Effective September 1, 2025; targeted close by year-end.
Management Commentary
- CEO Danny Brown:
- Highlights overlap with Chord’s existing footprint and potential for long-lateral development.
- Notes strong economics and immediate competitiveness of the assets.
- Emphasizes sustainable free cash flow generation, disciplined capital allocation, and strengthening returns to shareholders.
- Reinforces Chord’s track record of exceeding production expectations while reducing costs and improving margins.
Return of Capital Framework
- Leverage-Based Distribution:
- 50%+ of adjusted FCF distributed at 0.5x–1.0x leverage.
- 75%+ of adjusted FCF distributed when leverage <0.5x.
- Recent Buybacks: Repurchased 788,444 shares ($83 million) during Q3 2025 through September 12.
✅ Takeaway:
Chord Energy is bolstering its Williston Basin position with a high-quality, long-lateral development opportunity from Exxon’s XTO unit. The deal is designed to be highly accretive, extend inventory, improve portfolio economics, and maintain one of the strongest balance sheets in the peer group.
