Chord Energy (NASDAQ:CHRD) announced on Monday that it will acquire Williston Basin assets from the subsidiaries of Exxon Mobil for $375 million.

The deal will be funded with cash on hand, which stood at $592 million on March 31. The properties include 62,000 net acres around the company's near-term development activity and now produce 6 Mboe/d (62% oil). The transaction is anticipated to close at the end of June.

An important aspect of the transaction besides financial/free cash flow accretion is to maintain or improve its drilling inventory. Analysts at RBC Capital think Chord Energy has over 10-year drilling inventory at maintenance levels, but the new properties should add a year to that view.