Acacia Research Expands Oil And Gas Investments Through Benchmark Energy's Transformative Acquisition In The Western Anadarko Basin; Anticipated to Add Over 470 Operated Producing Wells Across ~140,000 Net Acres with Expected Annualized Asset-Level Cash Flows of ~$45M
Portfolio Pulse from Benzinga Newsdesk
Acacia Research Corporation (NASDAQ:ACTG), through its majority-owned subsidiary Benchmark Energy II, LLC, has announced a significant acquisition of upstream assets in the Western Anadarko Basin, Texas and Oklahoma, from a private seller. This acquisition, expected to close in Q2 2024, will add over 470 operated producing wells across approximately 140,000 net acres, with anticipated annualized asset-level cash flows of around $45 million. The deal, valued at Acacia's share of approximately $57.5 million, aims to enhance Benchmark's portfolio with a focus on cash flow through acquiring cash-flowing oil and gas properties. The transaction is funded by cash from Acacia and McArron Partners, along with committed debt financing from regional banks.
February 20, 2024 | 1:23 pm
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POSITIVE IMPACT
Acacia Research Corporation's acquisition in the Western Anadarko Basin is expected to significantly enhance its portfolio with over 470 operated wells, aiming for a substantial increase in annualized cash flows.
The acquisition is a strategic move for Acacia, expanding its oil and gas investments and expected to add considerable value through increased cash flows and asset diversification. The significant investment and the anticipated positive impact on cash flows suggest a positive outlook for Acacia's stock in the short term, assuming successful closure and integration of the assets.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100