This Ultra-High-Yield Stock's Deal With ExxonMobil Could Drive Its Dividend Higher
Given ExxonMobil's (NYSE: XOM) enormous cash war chest, there has been a lot of focus recently on its next acquisition. However, instead of shopping, Exxon recently agreed to sell an asset and add to its cash position.
That deal will provide a boost to the buyer, Chord Energy (NASDAQ: CHRD), potentially giving it more fuel to pay dividends. Here's a closer look at the deal and how it will benefit both oil stocks.
Chord Energy has agreed to acquire 62,000 acres in the Williston Basin of North Dakota from Exxon. It's paying $375 million in cash for largely undeveloped land (77% undeveloped with 123 future drilling locations). The strategically located acreage fits like a glove within the company's existing acreage position in the oil-rich basin:
Source Fool.com
