Chord strikes deal to buy Enerplus, add scale in Williston

Feb. 22, 2024
The combined company’s fourth-quarter 2023 production in the Williston basin was about 260,000 boe/d.

The oil-and-gas acquisition boom has reached the Williston basin as Chord Energy Corp., Houston, agreed to acquire Enerplus Corp., Calgary, in a stock-and-cash deal that values Enerplus at about $3.9 billion.

If closed later this year as planned, the deal will create one of the largest producers in the Williston, with operations in Montana and North Dakota that will span more than 1.2 million acres and produce about 260,000 boe/d (56% oil). Enerplus also has assets in the Marcellus that produce roughly 25,000 boe/d.

Executives said the two organizations’ combined inventory supports about 10 years of development at the current pace.

“This combination checks all the boxes between operating, financial, and strategic goals,” Chord president and chief executive officer Danny Brown said on a Feb. 21 conference call. “It enhances scale and asset quality. Additionally, it delivers accretion on all key financial metrics, which is boosted by significant synergies.”

Brown will continue to lead the combined company while Enerplus president and chief executive officer Ian Dundas will move into a senior advisory role. The teams are forecasting that the union will generate $150 million in annual savings by 2026, with those benefits being realized in three roughly equal chunks.