Earthstone Energy To Acquire Privately Held Bighorn Permian For About $860 Mln

(RTTNews) - Earthstone Energy, Inc. (ESTE) on Monday said it has agreed to buy privately held Bighorn Permian Resources, LLC for about $860 million in a combination of cash and stock.

The transaction value of $860 million comprises about $770 million in cash and about 6.8 million Earthstone's Class A common stock worth $90 million based on the closing share price of $13.25 on January 28, 2021.

Bighorn asset's adjusted EBITDAX for 2022 is projected at about $348 million and it had average daily production of nearly 42,400 Boepd (25% oil, 57% liquids) during November 2021, Earthstone said.

The combined company including pending Chisholm Acquisition, is expected to have net production increase by about 70%, and Adjusted EBITDAX by about 54% . The combination is also expected to add to earnings significantly.