Earthstone Closes on Bighorn Permian Resources’ Midland Basin Assets
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Earthstone Energy has closed the acquisition of assets of privately held Bighorn Permian Resources in the Midland Basin. The company also closed on a $550 million private offering of senior unsecured notes, a $280 million private placement of equity (PIPE), and an amendment to the company’s revolving credit facility.
“We are pleased to have taken multiple significant steps in the ongoing transformation of Earthstone as we have closed on the Bighorn Acquisition and on significant debt and equity financings this week. Based on the purchase price adjustments at closing as a result of the significant cash flows from the effective date, we will have funded the Bighorn Acquisition with well over 50 percent equity in the form of direct consideration to the seller and the new equity investment from the PIPE, maintaining our conservative capital structure,” said Robert J. Anderson, president and chief executive officer of Earthstone.
“Our near-term focus will be to continue integration efforts on both the northern Delaware Basin assets and the newly acquired Midland Basin assets. We expect to continue our pursuit of additional scale through accretive acquisitions that we believe will result in continued improved cost structure and creation of shareholder value, while always keeping our balance sheet strength as the top priority,” added Anderson.
About Earthstone
Earthstone Energy, Inc. is a growth-oriented, independent energy company engaged in acquisitions and the development and operation of oil and natural gas properties. Its primary assets are located in the Permian Basin of west Texas and New Mexico.
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