Chord Energy announced the acquisition of Williston Basin assets from Exxon Mobil’s XTO Energy for $550 million, expanding in the Bakken shale. The deal covers 48,000 net acres with near-term output of 9,000 barrels of oil equivalent per day, boosting Chord’s drilling inventory and lowering breakevens to the $40s per barrel range.

CEO Danny Brown stated the acquisition will be financially accretive, generating sustainable free cash flow with net leverage below 0.6x and expected to drop below 0.5x by mid-2026. The move aligns with Chord’s growth strategy in the Bakken region, amidst a wave of consolidation in the U.S. shale industry.

Chord Energy’s shareholder return policy aims to distribute at least 50% of adjusted free cash flow when leverage is between 0.5x and 1.0x, and 75%+ when below 0.5x. The company repurchased $83 million in shares in the third quarter, balancing growth with capital returns while enhancing its Bakken position.

Exxon Mobil’s sale of Williston Basin assets aligns with its strategy to focus resources on its Permian Basin operations and global LNG growth. If the acquisition is completed, Chord Energy will become one of the most inventory-rich Bakken operators, with increased flexibility for long-lateral development and sustained free cash flow.

Read more at Yahoo Finance: Chord Energy Buys $550M Williston Basin Assets From Exxon’s XTO