Penn Virginia falls on deal to buy Lonestar Resources

Reservoir Media

12/07/2021 15:06

** Shares of oil and gas co Penn Virginia Corp  PVAC.O  down
3.8% at $22.14
    ** Penn Virginia will acquire Lonestar Resources US Inc
 LONE.PK  in a deal valued at ~$370 mln; LONE is up 10.7% at
$11.07  urn:newsml:reuters.com:*:nGNXBdtsm
    ** Penn will pay with ~5.9 mln shares of its common stock
and assume net debt of ~$236 mln
    ** The transaction is expected to close in the second half
of 2021
    ** Transaction further solidifies Penn Virginia's position
as a premier Eagle Ford operator - CEO Darrin Henke
    ** Penn Virginia shareholders will own ~87% of the combined
company, and Lonestar will own the rest
    ** PVAC up 117.2% so far this year

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))