Acacia’s Benchmark Energy to acquire upstream assets in Texas, Oklahoma

21 February 2024

Benchmark’s acquisition will add more than 140,000 net acres, comprising around 470 producing wells in the Western Anadarko Basin across Texas and Oklahoma, along with non-operated interest in the undeveloped Cherokee play

Acacia Research, through its majority-owned subsidiary Benchmark Energy II, has agreed to acquire certain upstream assets and related facilities in Texas and Oklahoma from an undisclosed seller.

The 470 operated wells will produce around 6,000mboe/d. (Credit: rsvstks on

Under the agreement, Benchmark Energy will acquire around 140,000 net acres, comprising 470 producing wells in the Western Anadarko Basin, spanning the Texas Panhandle and Western Oklahoma.

The acquisition also includes a non-operated interest in the undeveloped Cherokee play.

The 470 operated wells to be acquired are expected to produce at a rate of around 6,000mboe/d, with expected annualised asset-level cash flows of around $45m.

Acacia said the acquisition expands its strategy of driving returns through a focus on cash flow within its subsidiary Benchmark Energy.

Benchmark Energy intends to fund the transaction using cash from its owners, Acacia and McArron Partners, along with committed debt financing from a group of local banks.

Acacia’s share of the consideration is expected to be around $57.5m.

The transaction is expected to be closed in the second quarter of 2024, subject to customary closing conditions and termination rights.

McArron CEO Jonny Jones said: “This transaction further expands the exciting partnership between Acacia and McArron in our support of Benchmark.

“Kirk and his team have a deep familiarity with these high-quality assets, and they will bring Benchmark the required scale to drive meaningful value within the combined enterprise.”

Acacia CEO MJ McNulty Jr. said: “This transaction is an example of that strategy in action and a meaningful first step of what we expect to be multiple acquisitions within the Benchmark platform. We continue to believe there is an opportunity to acquire outstanding assets at attractive valuations.”

Benchmark is an independent oil and gas company engaged in the acquisition, production and development of oil and gas assets in mature resource plays in Texas and Oklahoma.

In November last year, Acacia acquired a majority interest in Benchmark Energy, and made a control investment to use its capital base to acquire predictable and shallow decline, cash-flowing oil and gas assets.

With the current acquisition, Benchmark Energy will strengthen its position with more than 110,000 net acres in the Western Anadarko Basin and an additional 27,000 net acres in the Cherokee play.

The 470 wells are mature, low-decline production and will add significant diversification to Benchmark Energy’s production, with a balanced portfolio of around 60% liquids and 40% natural gas.

In addition, the assets are located close to Benchmark Energy’s existing operations in Texas, which creates additional potential for operational synergies in the basin.

Benchmark Energy CEO Kirk Goehring said: “The acquisition of these assets represents a transformative moment in Benchmark Energy’s history and an important next step in our partnership with Acacia and McArron.

“This unique asset is expected to deliver attractive, mature production with multiple drivers to enhance value.

“After closing this acquisition, Benchmark will have a large, contiguous acreage position in the heart of the Mid-Continent, and incremental scale to continue driving meaningful operational enhancements to create attractive returns for our stakeholders for many years to come.”

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