Earthstone Energy Inc. has agreed to acquire privately held operated assets in the Midland basin from two undisclosed sellers unaffiliated with Earthstone.
The acquired asset base and operations include average production of 4,400 boe/d (26% oil, 52% liquids) during September 2021 and $116 million PDP PV-10 as of July 1, 2021, with associated reserves of about 13.3 MMboe (11% oil, 31% NGL, 58% natural gas), the company said in a release Oct. 4.
The deal, the company’s fourth in 2021, includes about 10,000 net acres (100% operated; 67% held by production) in Irion County, Tex. (OGJ Online, Apr. 1, 2021; June 14, 2021). Operating synergies are expected when production operations are combined with the company’s other assets in the area, said Robert J. Anderson, president and chief executive officer.
The aggregate purchase price of the deal is about $73.2 million consisting of $49.2 million in cash and about 2.6 million shares of Earthstone's Class A common stock. The transaction is expected to close by the middle of this year’s fourth quarter.