Permian Resources to Acquire Earthstone for $4.5 Billion

Permian Resources Corp., a US oil producer named after the shale basin in which it operates, agreed to acquire Earthstone Energy Inc. in an all-stock takeover valued at about $4.5 billion.

(Bloomberg) — Permian Resources Corp., a US oil producer named after the shale basin in which it operates, agreed to acquire Earthstone Energy Inc. in an all-stock takeover valued at about $4.5 billion.

It’s the latest deal for Will Hickey and James Walter, the 30-something co-chief executive officers of Midland, Texas-based Permian Resources who have built up the company into a major independent US shale operator via a series of mergers in recent years.

The takeover of Earthstone will give Permian Resources a pro-forma production of about 300,000 barrels of oil equivalent per day, the companies said Monday in a statement. The transaction is expected to close by year-end.

Read More: Shale’s 30-Something Co-CEOs Eye 10% Permian Production Boost

Permian Resources and Earthstone operate an eleven-rig drilling program in aggregate, primarily focused on the Delaware Basin of West Texas and southern New Mexico.

Shares of Earthstone advanced as much as 17% in premarket trading, while Permian’s were up slightly.

(Updates with share prices in last paragraph)

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