Midland-based Permian Resources said Monday it will acquire The Woodlands-based Earthstone Energy in all-stock transaction valued at $4.5 billion, including Earthstone’s debt. The transaction strengthens Permian Resources’ position as a leading independent exploration and production company in Delaware Basin now with 403,000 net acres. Will Hickey, co-CEO of Permian Resources, said, “Earthstone’s northern Delaware position brings high-quality acreage with core inventory that immediately competes for capital within our portfolio.” Closing is expected by yearend.
Earthstone’s New Mexico acreage position is highly complementary to Permian Resources’ existing high-return asset base. The acquisition included about 223,000 net acres with production of about 300,000 boed. It adds 56,000 net acres in Eddy and Lea counties in Delaware Basin and 167,000 net acres in Midland Basin (along with a small position in Eagle Ford that Enverus said is for sale). The two companies currently are operating 11 drilling rigs primarily in Delaware Basin.