NorthAmOil: Permian Resources to buy Earthstone in $4.5bn deal

Shale producer Permian Resources has announced that it has agreed to acquire Earthstone Energy in an all-stock transaction worth roughly $4.5bn including the assumption of Earthstone’s debt.

The acquisition will increase Permian Resources’ holdings in the Permian Basin to more than 400,000 net acres (1,619 square kilometres) and its production to around 300,000 barrels of oil equivalent per day (boepd). This represents an almost 81% increase in output from Permian Resources’ average production of 165,850 boepd in the second quarter of 2023.

The drivers behind the transaction appear to be in line with the broader trends in the US oil-and-gas mergers-and-acquisitions (M&A) space. Permian Resources cited factors including increased scale and enhanced free cash flow – which in turn would allow it to boost returns to shareholders – in its announcement.

If you’d like to read more about the key events shaping North America's oil and gas sector then please click here for NewsBase’s NorthAmOil monitor.