- Transaction drives value through significant synergistic opportunities and alignment with BKV's ESG program
- Midstream assets will add additional benefits across the energy value chain
BKV Corporation announced that its subsidiaries have signed definitive purchase and sale agreements to acquire natural gas upstream and associated midstream infrastructure in the Barnett Shale region of North Texas from XTO Energy, Inc. and Barnett Gathering LLC, subsidiaries of Exxon Mobil Corporation. The transaction is valued at $750 million with additional contingent payments depending on future natural gas prices and is expected to close in the second quarter, subject to customary closing terms and conditions.
"Our focus as a company is to drive value through continued expansion in the Barnett play with a strong focus on sustainability," said Chris Kalnin, BKV Chief Executive Officer. "This transaction falls in line with that vision."
Kalnin continued, "Today, BKV is a leading natural gas operator in the United States with an integrated approach to the value chain that allows us to certify our responsibly sourced gas at the well head. We are excited about the extensive synergies this transaction presents, as well as additional access to premier Gulf Coast markets. We look forward to building upon the strengths of XTO Energy and its team to drive future growth."
At closing, BKV will acquire approximately 160,000 total net acres primarily in Tarrant, Johnson and Parker counties, and additional smaller positions in Jack, Wise, Denton, Erath, Hood and Ellis counties. These upstream assets include low decline wells, ideal for delivering consistent cash flow, and high average working interests of approximately 93 percent in over 2,100 wells with operatorship positions. The transaction also includes approximately 750 miles of gathering pipelines, compression and processing midstream infrastructure.
Baker Botts LLP and Fox Rothschild, LLP acted as legal advisors to BKV Corporation on this transaction.