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Acacia Research Announces Closing of Benchmark Energy’s Transformative Acquisition in the Western Anadarko Basin
NEW YORK--(BUSINESS WIRE)-- Acacia Research Corporation (Nasdaq: ACTG) (“Acacia”) today announced that its majority owned subsidiary, Benchmark Energy II,
About this update from Acacia Research Corporation
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nAcacia Research Corporation (Nasdaq: ACTG) (“Acacia”) today announced that its majority owned subsidiary, Benchmark Energy II, LLC (together with its subsidiaries, “Benchmark”), has completed its previously announced acquisition (the “Transaction”) to acquire certain upstream assets and related facilities (the “Assets”) in Texas and Oklahoma from a private seller (such transaction, the “Acquisition”). The Acquisition includes an interest in approximately 470 operated producing wells in the core of the Western Anadarko Basin, as well as a non-operated interest in the undeveloped Cherokee play. The wells are mature, have low-decline profiles and will add significant diversification to Benchmark’s production, with a balanced pro-forma portfolio of approximately 60% liquids and 40% natural gas. Further, the Assets’ proximity to Benchmark’s existing operations in Texas creates further potential to develop operational synergies of scale within the basin.\n\n\nKey Acquisition Highlights\n\n\n\nExpanded operated position throughout the core of the Western Anadarko Basin through an additional approximately 140,000 net acres, including approximately 110,000 net acres, 100% of which are held-by-production, and an additional approximately 27,000 net acres in the emerging Cherokee play\n\n\n\nLiquids-rich, low-decline, mature production base of approximately 6,000 barrels of oil equivalent per day across approximately 470 operated wells\n\n\n\nSignificant opportunity set of field enhancement opportunities including artificial lift optimization, workovers and return-to-production projects\n\n\n\nMaterial exposure to the emerging Cherokee development play via operated acreage and non-operated arrangements with best-in-class operators\n\n\n\nExpected annualized asset-level cash flows of approximately $45 million\n\n\n\nBenchmark anticipates hedging a significant amount of production\n\n\n\nThe transaction was funded utilizing cash from Benchmark’s existing owners, Acacia and McArron Partners, as well as committed debt financing from Texas-based regional banks. Acacia’s share of the consideration, including fees, was approximately $59.9 million.\n\n\nMJ McNulty, Jr., Acacia’s Chief Executive Officer, stated, “We are pleased to inform our stockholders that our Benchmark subsidiary has closed its previously announced ...