Newfield is acquiring 42,000 net acres with net production of 3,800 boe/d (55% liquids) in the STACK from Chesapeake Energy for $470MM. The deal implies $10,000 per net undeveloped acre after backing out $50MM for PDP reserves.
Meanwhile, Newfield maintains they have yet to breach $3,000 per undeveloped acre cumulative in the STACK. “This bolt-on acquisition is ideal for Newfield, combining strategic fit in a growing resource play where we have a clear competitive advantage,” said Newfield chairman Lee Boothby. “As the discoverer and founder of STACK, we have drilled more than a quarter of the play’s total wells and are the proven leader.” Newfield expects to fund the acquisition with cash on hand, with closing taking place in Q2.
Chesapeake Energy will retain 52,000 net acres in the STACK.