Brief: Permian Resources To Acquire Earthstone Energy In All-Stock Transaction, Creating A $14 Bln Premier Delaware Basin Independent E&P

Earthstone Energy

21/08/2023 12:17

Aug 21 (Reuters) - Earthstone Energy Inc  ESTE.N :
    * PERMIAN RESOURCES TO ACQUIRE EARTHSTONE ENERGY IN
ALL-STOCK
TRANSACTION, CREATING A $14 BILLION PREMIER DELAWARE BASIN
INDEPENDENT E&P
    * PERMIAN RESOURCES CORP - PROPOSED DEAL FOR ALL-STOCK
TRANSACTION
VALUED AT APPROXIMATELY $4.5 BILLION
    * PERMIAN RESOURCES CORP - UNDER TERMS OF TRANSACTION, EACH
SHARE
OF EARTHSTONE COMMON STOCK WILL BE EXCHANGED FOR A FIXED RATIO
OF 1.446 SHARES OF PERMIAN RESOURCES COMMON STOCK
    * PERMIAN RESOURCES CORP - TRANSACTION IS EXPECTED TO BE
ACCRETIVE
TO ALL RELEVANT PER SHARE METRICS
    * PERMIAN RESOURCES CORP - DEAL EXPECT TO ACHIEVE SYNERGIES
THAT
WILL DRIVE ABOUT $175 MILLION OF ANNUAL CASH FLOW IMPROVEMENT
    * PERMIAN RESOURCES CORP - EXPECT TO ACHIEVE SYNERGIES THAT
WILL
DRIVE ABOUT $175 MILLION OF ANNUAL CASH FLOW IMPROVEMENT FROM
DEAL
    * PERMIAN RESOURCES CORP - EXPECTS TRANSACTION TO DELIVER
ACCRETION TO FREE CASH FLOW PER SHARE OF OVER 30% PER YEAR
DURING NEXT TWO YEARS
    * PERMIAN RESOURCES CORP - UPON CLOSING OF TRANSACTION,
PERMIAN
RESOURCES' BOARD OF DIRECTORS WILL BE EXPANDED TO CONSIST OF
ELEVEN DIRECTORS
    * PERMIAN RESOURCES CORP - EXPECTS TRANSACTION TO DELIVER
ACCRETION TO FREE CASH FLOW PER SHARE OF OVER 25% DURING NEXT
FIVE AND TEN-YEAR PERIODS
    * PERMIAN RESOURCES CORP - SECURED A $500 MILLION
INCREMENTAL
COMMITMENT UNDER ITS CREDIT FACILITY FROM WELLS FARGO BANK
    * PERMIAN RESOURCES CORP - PLANS TO INCREASE ITS QUARTERLY
BASE
DIVIDEND BY 20% TO $0.06 PER SHARE BEGINNING WITH ITS Q1 2024
    * PERMIAN RESOURCES CORP - AFTER CLOSING, EXISTING PERMIAN
RESOURCES SHAREHOLDERS WILL OWN APPROXIMATELY 73% OF COMBINED
COMPANY
    * PERMIAN RESOURCES CORP - EXPECTS TO HAVE PRO FORMA
LIQUIDITY OF
OVER $1.0 BILLION AT CLOSING
    * PERMIAN RESOURCES CORP -  AFTER CLOSING DEAL, EXISTING
EARTHSTONE SHAREHOLDERS WILL OWN APPROXIMATELY 27% OF COMBINED
COMPANY
    * PERMIAN RESOURCES CORP - EXCHANGE RATIO REPRESENTS IMPLIED
VALUE
TO EACH EARTHSTONE STOCKHOLDER OF $18.64 PER SHARE
    * PERMIAN RESOURCES- DURING 2024, COMBINED CO EXPECTS TO
ALLOCATE
APPROXIMATELY 90% OF CAPITAL TO HIGH RATE-OF-RETURN PROJECTS IN
DELAWARE BASIN

Source text for Eikon:  ID:nBw4LBS61a 
Further company coverage:  ESTE.N 

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