TXO Partners to add producing Elm Coulee assets through deal with White Rock Energy

TXO Partners LP, Fort Worth, Tex., has agreed to acquire Elm Coulee field assets in the Williston Basin of Montana and North Dakota from White Rock Energy LLC for $350 million.  

The agreement was signed in partnership with North Hudson Resource Partners LP, whose affiliates will acquire a 30% non-operated interest in the White Rock assets. Together with the interests to be acquired by North Hudson, the total consideration for the acquisition of White Rock’s Elm Coulee properties is $475 million.

Total cash consideration by TXO will be about $350 million, of which $70 million will be deferred and payable 1 year after the initial closing.

If completed, the deal is expected to add about 6,800 boe/d (~93% liquids) to TXO.

“This transaction is the perfect complement to our initial acquisition in the prolific Elm Coulee field of Montana last year,” said Brent Clum, co-chief executive officer in a release May 13 (OGJ Online, June 25, 2024).

“Importantly, the strong well economics and our development plan, even with the lower oil prices, provide a pathway for healthy economic returns,” he said.

 “The Elm Coulee field’s rich resource base of an estimated 4 billion barrels of oil in place presents a significant target,” said Gary D. Simpson, co-chief executive officer. “The horizontal drilling and completion techniques continue to enhance overall reservoir recovery. With more than 190,000 combined productive acres, we will be focused and diligent in delivering long-term production with a low-decline profile,” he said.

The deal is expected to close in third-quarter 2025 subject to customary closing conditions.

White Rock Energy LLC is a portfolio company of Quantum Capital Group.