Acacia Research Announces Closing of Benchmark Energy’s Transformative Acquisition in the Western Anadarko Basin

Acacia Research Corporation (Nasdaq: ACTG) (“Acacia”) today announced that its majority owned subsidiary, Benchmark Energy II, LLC (together with its subsidiaries, “Benchmark”), has completed its previously announced acquisition (the “Transaction”) to acquire certain upstream assets and related facilities (the “Assets”) in Texas and Oklahoma from a private seller (such transaction, the “Acquisition”). The Acquisition includes an interest in approximately 470 operated producing wells in the core of the Western Anadarko Basin, as well as a non-operated interest in the undeveloped Cherokee play. The wells are mature, have low-decline profiles 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 within the basin.

Key Acquisition Highlights

• Expanded operated position throughout the core of the Western Anadarko Basin through an additional approximately 140,000 net acres, including approximately 110,000 net acres, 100% of which are held-by-production, and an additional approximately 27,000 net acres in the emerging Cherokee play
• Liquids-rich, low-decline, mature production base of approximately 6,000 barrels of oil equivalent per day across approximately 470 operated wells
• Significant opportunity set of field enhancement opportunities including artificial lift optimization, workovers and return-to-production projects
• Material exposure to the emerging Cherokee development play via operated acreage and non-operated arrangements with best-in-class operators
• Expected annualized asset-level cash flows of approximately $45 million
• Benchmark anticipates hedging a significant amount of production

The transaction was funded utilizing cash from Benchmark’s existing owners, Acacia and McArron Partners, as well as committed debt financing from Texas-based regional banks. Acacia’s share of the consideration, including fees, was approximately $59.9 million.

MJ McNulty, Jr., Acacia’s Chief Executive Officer, stated, “We are pleased to inform our stockholders that our Benchmark subsidiary has closed its previously announced acquisition of operated producing wells in the Western Anadarko Basin. We are excited to work closely with the Benchmark team as they continue to execute on their strategy of acquiring mature cash flowing properties, improving operations, maximizing production, and most importantly, returning capital. With this transformative acquisition now closed, we look forward to continuing to identify and acquire valuable businesses at attractive valuations and deploying disciplined operating and capital allocation methods to create value for our stockholders.”