One week after Earthstone Energy (NYSE: ESTE) closed on its acquisition of Novo, Permian Resources (NYSE: PR) announced that it is acquiring Earthstone. The pro forma entity will be one of the largest Permian-focused oil & gas producers, with production of ~300,000 boe/d. This is the latest in a series of Permian transactions, is the first buyout of a Permian publicly traded company in some time, and continues the trend of rising Permian transaction multiples. The implications of this deal for other publicly traded Permian oil & gas producers should not be overlooked.
Great article Josh. Good deal for PR. While XOM & CVX with other majors are chasing ESG crap the other more shareholder (NOT stakeholder) minded companies are closing lucrative deals.
Josh - Perhaps in the future, you might touch upon 2 questions: first, is there any chance someone pays more for ESTE and 2) assuming PR walks away with ESTE, how attractive is PR (or not) going forward?
Josh - I look forward to any comments you might have on Vital Energy's acquisitions. To the layman, save for concerns about stock dilution and 10.25% bonds to finance the deal, great add-ons, accretive and oil price break-even @ $50 looks awesome. Market reaction smells like shoot first and don't look at the long-term benefits; wall street missing the forest for the trees.
Thanks for the reply and the great analysis you provide on this sector - agree wholeheartedly on VTLE..
Great article Josh. Good deal for PR. While XOM & CVX with other majors are chasing ESG crap the other more shareholder (NOT stakeholder) minded companies are closing lucrative deals.
Josh - Perhaps in the future, you might touch upon 2 questions: first, is there any chance someone pays more for ESTE and 2) assuming PR walks away with ESTE, how attractive is PR (or not) going forward?
Josh - I look forward to any comments you might have on Vital Energy's acquisitions. To the layman, save for concerns about stock dilution and 10.25% bonds to finance the deal, great add-ons, accretive and oil price break-even @ $50 looks awesome. Market reaction smells like shoot first and don't look at the long-term benefits; wall street missing the forest for the trees.