Permian Resources to acquire Earthstone in $4.5bn stock deal
Independent shale producer Permian Resources said August 21 it had entered into a definitive agreement to acquire pure play Delaware Basin producer Earthstone Energy in an all-stock deal worth about $4.5bn, inclusive of debt.
Under terms of the transaction, expected to close by year-end, each Earthstone share will be exchanged for 1.446 Permian Resources shares, representing an implied value to Earthstone shareholders of $18.64/share. After closing, existing Permian Resources shareholders will hold about 73% of the combined company, while existing Earthstone shareholders will own about 27%.
The transaction is expected to strengthen Permian Resources’ position as a leading independent producer in the Delaware Basin, increasing its land holdings in the Permian to more than 400,000 net acres and its pro forma production to about 300,000 barrels of oil equivalent (boe)/day.
In Q2 2023, Earthstone Energy had average daily production of 105,493 boe/day and natural gas production of about 201mn ft3/day. In the same period, Permian Resources had total production of 165,850 boe/day and natural gas production of 275.7mn ft3/day.