Earthstone is expected to increase Permian’s output by almost 300,000 barrels of oil equivalent per day. Credit: Zbynek Burival/Unsplash.

US-based oil and gas company Permian Resources has completed the acquisition of Earthstone Energy.

The $4.5bn all-stock deal, which included Earthstone’s debt, was announced in August 2023.

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As per the merger terms, each share of Earthstone common stock was converted into the right to receive 1.446 shares of Permian Resources common stock.

Permian anticipates issuing roughly 211 million shares of common stock in connection with the acquisition.

Through the transaction, Permian’s total assets will increase by more than 400,000 acres, solidifying its position in the Delaware Basin of Texas and New Mexico.

Additionally, Earthstone is expected to increase Permian’s output by almost 300,000 barrels of oil equivalent per day.

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Following the merger, Earthstone was delisted from the New York Stock Exchange and is no longer subject to the Securities Exchange Act of 1934 reporting requirements.

Permian Resources Co-CEO James Walter said: “We are excited to complete this transaction and welcome the Earthstone team to Permian Resources. This acquisition reinforces Permian Resources’ position as a premier Delaware Basin independent E&P which is uniquely situated to drive profitable growth and development in the world-class Permian Basin.”

Since the start of this year, the US upstream industry has witnessed a series of mergers and acquisitions.

Recently, ExxonMobil reached an agreement to buy Permian basin-focused Pioneer Natural Resources in an all-stock deal valued at $59.5bn.

Late in October 2023, Chevron signed a definitive agreement to buy oil and gas producer Hess for $53bn.

Earlier in the same month, Civitas Resources brokered a $2.1bn deal to boost its assets in the Permian basin.

In August 2023, Chevron bought US-based shale producer PDC Energy for $6.3bn.