Acacia Research Expands Oil and Gas Investments Through Benchmark Energy’s Transformative Acquisition in the Western Anadarko Basin - Seite 2

MJ McNulty, Jr., Acacia’s Chief Executive Officer, added, “We have always envisioned the Benchmark subsidiary as a platform, partnering with its highly talented leadership team, to acquire high-quality, cashflow-generating oil and gas assets. The Benchmark team has an established track record for acquiring excellent assets that possess attractive return profiles. 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.”

Jonny Jones, McArron’s Chief Executive Officer, added, “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.”

Enhancing Scale in the Anadarko Basin

The Acquisition includes an interest in approximately 470 operated wells producing approximately 6,000 net mboe/d in the core of the Western Anadarko Basin, as well as a non-operated interest in the undeveloped Cherokee play. The wells are mature, low-decline production and will add significant diversification to Benchmark’s production, with a balanced pro-forma portfolio of approximately 60% liquids and 40% natural gas. Further, the Assets’ proximity to Benchmark’s existing operations in Texas creates further potential to develop operational synergies of scale in the basin.

Additional Information

The transaction is expected to be funded utilizing cash from Benchmark’s existing owners, Acacia and McArron Partners, as well as committed debt financing from a group of local, regional banks. Acacia’s share of the consideration is expected to be approximately $57.5 million. Closing of the transaction, which is expected in the second quarter of 2024, is subject to customary closing conditions and termination rights.

Additional details about the acquisition are included in a Form 8-K filed by Acacia today with the Securities and Exchange Commission.

About Acacia

Acacia is a publicly traded (Nasdaq: ACTG) company that is focused on acquiring and operating attractive businesses across the industrial, healthcare, energy, and mature technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at www.acaciaresearch.com.