Permian Resources to Acquire Earthstone Energy for $1.5B
Ticker: PR · Form: 8-K · Filed: May 13, 2024 · CIK: 1658566
Sentiment: bullish
Topics: acquisition, oil-and-gas, merger
Related Tickers: ESTE
TL;DR
PR to buy ESE for $1.5B ($1B cash, $0.5B stock) - big Delaware Basin play.
AI Summary
Permian Resources Corp. announced on May 13, 2024, that it has entered into a definitive agreement to acquire all of the outstanding equity interests of Earthstone Energy, Inc. for approximately $1.5 billion. The transaction includes $1.0 billion in cash and $0.5 billion in Permian Resources common stock. This acquisition is expected to close in the second half of 2024.
Why It Matters
This acquisition significantly expands Permian Resources' footprint in the Delaware Basin, potentially leading to increased production and operational efficiencies.
Risk Assessment
Risk Level: medium — The acquisition involves a significant amount of stock and cash, and integration risks are present, along with potential fluctuations in commodity prices affecting the deal's value.
Key Numbers
- $1.5B — Acquisition Value (Total consideration for Earthstone Energy)
- $1.0B — Cash Consideration (Part of the payment to Earthstone Energy shareholders)
- $0.5B — Stock Consideration (Permian Resources stock issued to Earthstone Energy shareholders)
Key Players & Entities
- Permian Resources Corp. (company) — Acquiring company
- Earthstone Energy, Inc. (company) — Target company
- $1.5 billion (dollar_amount) — Total acquisition price
- $1.0 billion (dollar_amount) — Cash portion of the acquisition price
- $0.5 billion (dollar_amount) — Stock portion of the acquisition price
- May 13, 2024 (date) — Announcement date of the acquisition agreement
- Delaware Basin (location) — Primary operating area affected by the acquisition
FAQ
What is the total value of the proposed acquisition of Earthstone Energy by Permian Resources?
The total value of the proposed acquisition is approximately $1.5 billion.
How will the acquisition of Earthstone Energy be financed by Permian Resources?
The acquisition will be financed through $1.0 billion in cash and $0.5 billion in Permian Resources common stock.
When is the expected closing date for the acquisition?
The transaction is expected to close in the second half of 2024.
What is the primary geographic area of focus for this acquisition?
The acquisition significantly expands Permian Resources' footprint in the Delaware Basin.
What was the former name of Permian Resources Corporation?
Permian Resources Corporation was formerly known as Centennial Resource Development, Inc. and Silver Run Acquisition Corp.
Filing Stats: 501 words · 2 min read · ~2 pages · Grade level 10 · Accepted 2024-05-13 06:44:05
Key Financial Figures
- $0.0001 — stered Class A Common Stock, par value $0.0001 per share PR The New York Stock Exc
Filing Documents
- d813903d8k.htm (8-K) — 23KB
- d813903dex991.htm (EX-99.1) — 9KB
- g813903g0513010333864.jpg (GRAPHIC) — 4KB
- 0001193125-24-136671.txt ( ) — 161KB
- pr-20240513.xsd (EX-101.SCH) — 3KB
- pr-20240513_lab.xml (EX-101.LAB) — 18KB
- pr-20240513_pre.xml (EX-101.PRE) — 11KB
- d813903d8k_htm.xml (XML) — 4KB
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits. Exhibit Description 99.1 Press Release, dated May 13, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PERMIAN RESOURCES CORPORATION By: /s/ Guy M. Oliphint Guy M. Oliphint Executive Vice President and Chief Financial Officer Date: May 13, 2024 3