Permian Resources Inks $4.5B Deal To Buy Earthstone Energy
Portfolio Pulse from Lekha Gupta
Permian Resources Corp (PR) has signed a definitive acquisition deal to buy Earthstone Energy Inc (ESTE) for around $4.5 billion, including ESTE's net debt. The acquisition will add over 400,000 Permian net acres to PR's assets and is expected to be accretive to FCF per share by over 30% annually in the next two years. PR also plans to raise the quarterly base dividend by 20% to $0.06 per share, starting Q1 2024. The deal is expected to close by year-end 2023.
August 21, 2023 | 12:20 pm
News sentiment analysis
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POSITIVE IMPACT
Earthstone Energy Inc's shares are trading higher by 9.12% following the announcement of its acquisition by Permian Resources Corp.
The acquisition announcement has been positively received by the market for ESTE, with its shares trading higher.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Permian Resources Corp's acquisition of Earthstone Energy Inc is expected to boost its assets and increase FCF per share. However, the stock is currently trading down by 3.72%.
The acquisition is expected to be beneficial for PR in terms of asset growth and increased FCF per share. However, the market's initial reaction has been negative, with the stock trading down.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100