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

HOUSTON - Chord Energy Corporation (NASDAQ:CHRD), currently valued at $5.87 billion and identified as undervalued according to InvestingPro analysis, announced Monday it has entered into a definitive agreement to acquire Williston Basin assets from XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, for $550 million in cash.

The acquisition includes 48,000 net acres in the Williston Basin core with an 86% operated working interest. The assets currently produce approximately 9,000 barrels of oil equivalent per day, with 78% being oil production. The deal aligns with Chord’s strong operational efficiency, reflected in its impressive EBITDA of $2.58 billion over the last twelve months.

According to the company, the acquired properties have a low base decline rate of approximately 23% and include 90 net drilling locations with what Chord describes as low breakeven economics in the $40s per barrel range.

"The acquired assets are in one of the best areas of the Williston Basin and have significant overlap with Chord’s existing footprint, setting the stage for long-lateral development," said Danny Brown, Chord Energy’s President and Chief Executive Officer, in the press release.

The transaction, which has an effective date of September 1, 2025, is expected to close by year-end. Chord plans to fund the purchase through a combination of cash on hand and borrowings.

The company expects its post-transaction adjusted net leverage to be approximately 0.5 to 0.6 times, returning to below 0.5 times around mid-2026. Chord’s return of capital framework distributes 50% or more of adjusted free cash flow at leverage levels between 0.5 and 1.0 times, and 75% or more when leverage falls below 0.5 times. The company maintains a healthy debt-to-equity ratio of 0.12, earning a "GREAT" financial health score from InvestingPro, which offers comprehensive analysis of 1,400+ US stocks through its Pro Research Reports.

Chord also disclosed it has repurchased 788,444 shares of common stock totaling $83 million through September 12, 2025, during the current quarter. The company maintains an attractive 5.17% dividend yield and has demonstrated strong shareholder returns, according to InvestingPro analysis, which reveals several additional bullish indicators available to subscribers.

In other recent news, Chord Energy Corp reported its financial results for the second quarter of 2025. The company experienced a mixed performance, with revenue surpassing expectations but earnings per share (EPS) falling short. Chord Energy’s revenue reached $1.18 billion, which was higher than the anticipated $1.05 billion, marking a 12.38% positive surprise. However, the EPS was reported at $1.79, missing the forecasted $1.94, resulting in a 7.73% negative surprise. Despite the revenue beat, the EPS miss indicates some challenges in the company’s financial performance. These developments are crucial for investors considering the company’s current and future financial health. The earnings report reflects the company’s ongoing efforts to manage its financial outcomes amid market conditions.

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