Chord Energy to acquire XTO Energy’s Williston Basin assets for $550m

Core Viewpoint - Chord Energy has entered into a definitive agreement to acquire assets in the Williston Basin from XTO Energy for $550 million, enhancing its operational footprint and inventory life in a strategic area of interest [1][2]. Acquisition Details - The acquisition includes 48,000 net acres in the Williston Basin, with an 86% operated working interest and an 82% net revenue interest [1]. - The assets comprise 90 net 10,000ft equivalent locations, with 72 net operated sites, which will extend Chord's inventory life [1]. - The deal is set to close by year-end, with an effective date of September 1, 2025 [1]. Strategic Fit and Financial Impact - The acquired assets are located in a prime area of the Williston Basin, allowing for long-lateral development and significant overlap with Chord's existing operations [2]. - The assets have a low average NYMEX WTI breakeven, making them immediately competitive for capital, and are expected to create significant accretion for shareholders across key metrics [3]. - The acquisition aligns with Chord's strategic objectives and is expected to support sustainable free cash flow generation and return of capital while maintaining pro forma leverage below peer group levels [3][5]. Funding and Integration - Chord Energy plans to fund the acquisition through a combination of cash reserves and borrowings [4]. - The company has a history of successful integration and execution, as demonstrated by its earlier acquisition of Enerplus, which created a combined exploration and production company valued at approximately $11 billion [5]. Operational Commitment - Chord Energy emphasizes its commitment to operating the acquired assets in a safe and sustainable manner while maintaining strong relationships with local communities [4].