Chord Energy announced on Monday that a wholly owned subsidiary will acquire Williston Basin assets from Exxon Mobil’s XTO Energy for $550 million in cash, marking another strategic expansion in the Bakken shale. The deal, effective September 1 and expected to close by year-end, covers 48,000 net acres—86% operated and 100% held by production—with near-term output of around 9,000 barrels of oil equivalent per day (78% oil).
The transaction deepens Chord’s inventory with 90 net drilling locations, many in units overlapping existing operations. The contiguous nature of the acreage will allow for three- and four-mile laterals, a development strategy Chord has used to drive efficiency and lower breakevens. The acquired wells carry a low average breakeven in the $40s per barrel WTI range, immediately competitive within Chord’s program.
CEO Danny Brown said the acquisition was “highly accretive” across all key financial metrics, reinforcing the company’s ability to generate sustainable free cash flow while maintaining net leverage below 0.6x. Chord expects leverage to return below 0.5x by mid-2026.
The move follows a wave of consolidation across U.S. shale, where companies are securing premium acreage as drilling inventory becomes scarcer. Chord itself has been active in M&A, including its 2022 merger with Oasis Petroleum and Whiting Petroleum, and more recently, its combination with Enerplus. This latest deal with Exxon’s upstream arm underscores Chord’s commitment to disciplined growth in its core Bakken position.
The company also reaffirmed its shareholder return policy, which distributes at least 50% of adjusted free cash flow when leverage is between 0.5x and 1.0x, and 75%+ when below 0.5x. Chord repurchased $83 million in shares in the third quarter to date, highlighting its focus on balancing growth with capital returns.
For Exxon Mobil, the sale fits into its broader strategy of streamlining its unconventional portfolio and focusing resources on its Permian Basin operations and global LNG growth.
If completed, the acquisition positions Chord Energy as one of the most inventory-rich Bakken operators, with enhanced flexibility for long-lateral development and greater ability to sustain free cash flow through commodity cycles.