Parsley, Jagged Peak Energy Announce Merger - Quick Facts

(RTTNews) - Parsley Energy, Inc. (PE) has agreed to acquire Jagged Peak Energy Inc. (JAG) in an all-stock deal valued at approximately $2.27 billion, including Jagged Peak's net debt of approximately $625 million. Jagged Peak shareholders will receive a fixed exchange ratio of 0.447 shares of Parsley Class A common stock for each share of Jagged Peak common stock they own. This represents $7.59 per Jagged Peak share.

The combined company will be owned 77 percent by Parsley shareholders, and 23 percent by Jagged Peak shareholders. The combined company will be led by Parsley's executive management team. The merger deal is anticipated to close in the first quarter of 2020.

Parsley expects the deal to be immediately accretive to key metrics in 2020, including: cash flow per share, free cash flow per share, cash return on capital invested, and net asset value.