Permian Resources' Landmark Acquisition: Analyst Sees 80% Production Boost And Potentially Undervalued Synergies
Portfolio Pulse from Nabaparna Bhattacharya
Permian Resources Corporation (NYSE:PR) has announced a $4.5 billion all-stock acquisition of Earthstone Energy, Inc. (NYSE:ESTE). Susquehanna analyst Biju Perincheril believes the deal will boost PR's production by 80% and has raised the price target for PR from $11 to $14. The acquisition more than doubles PR's net acreage position, with potential for future monetization of assets in the Midland Basin. Operational synergies of $115 million are expected, but the analyst suggests these could be exceeded.
August 22, 2023 | 7:26 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Earthstone Energy's acquisition by Permian Resources could potentially lead to future monetization of assets in the Midland Basin.
The acquisition by Permian Resources could potentially lead to future monetization of Earthstone Energy's assets in the Midland Basin. This could potentially have a positive impact on ESTE's stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Permian Resources' acquisition of Earthstone Energy is expected to significantly boost production and operational scale, leading to a raised price target.
The acquisition is expected to significantly increase PR's production and operational scale, leading to a raised price target from the analyst. This could potentially lead to a positive impact on PR's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100