Earthstone Energy Inc - Ordinary Shares - Class A

NYSE:ESTE   11:32:56 AM EDT
12.02
+0.30 (+2.56%)
Debt Financing / Related, Mergers / Acquisitions

Earthstone Energy Announces Definitive Agreement To Acquire Independence Resources Management, LLC

Published: 12/18/2020 05:36 GMT
Earthstone Energy Inc - Ordinary Shares - Class A (ESTE) - Earthstone Energy Announces Significant Midland Basin Acquisition.
Entered Into a Definitive Agreement to Acquire Independence Resources Management, Llc.
Transaction is Expected to Close in Q1 of 2021.
Increases Production and Adjusted EBITDAx by 50% While Maintaining Balance Sheet Strength.
Purchase Price is Expected to Be About $185.9 Million Consisting of an Estimated Amount of $135.2 Million in Cash As of Nov 30, 2020.
Deal Expected to Be Accretive on All Key Financial Metrics.
Targeted 25% Reduction in Go Forward Cash G&a((5)) per Unit Costs.
Earthstone - Intends to Fund Cash Portion of Consideration and Fees and Expenses, With Cash on Hand and New Borrowings Under Its Credit Facility.
Existing Earthstone Shareholders Retain 83.7% of Common Equity.