The Woodlands-based Earthstone Energy said last week it reached agreement with Fort Worth-based Chisholm Energy to acquire 36,100 net acres (92 percent operated) in Delaware Basin in Eddy and Lea counties in New Mexico. Purchase price is $604 million in cash and stock ($340 million cash at closing in 2022Q1). Robert J. Anderson, president and CEO, said Earthstone’s fifth and largest purchase of the year “further establishes Earthstone as a Permian Basin-focused company with increasing scale… We are especially excited about the size and quality of the drilling inventory included in the Chisholm transaction and plan to continue the two-rig program in the Delaware Basin in addition to our two-rig program in the Midland Basin.”
The acquired assets from Chisholm have current net production of 13,500 boed (61 percent oil). This increases Earthstone’s net production by 39 percent (44,000 to 48,000 boed in 2022) and its acreage by 35 percent to 138,000 net acres.