Earthstone Energy to acquire Chisholm’s New Mexico assets in a $ 604 million deal

Dec. 16 (Reuters) – Earthstone Energy Inc (ESTE.N) said Thursday it was selling the assets of Warburg Pincus-backed Chisholm Energy Holdings LLC in the northern Delaware Basin of New Mexico as part of a cash-and-share deal for $ 604 million as the oil and gas producer increases its presence in the Permian.

The deal comes months after Earthstone announced it would buy privately held assets from two sellers for approximately $ 73.2 million in cash and stock.

“When this acquisition is combined with the previous four acquisitions completed in 2021, we will have increased our net floor space in the Permian Basin by approximately 400%,” said Robert Anderson, chief executive officer of Earthstone, in a statement on Daily Production Rate and Increase in Free Cash flow generation capacity.

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The energy sector saw a boom in business execution as crude oil prices rebounded from pandemic lows, encouraging producers to do business to increase production.

Reuters reported in September that Warburg Pincus and the Ontario Teachers’ Pension Plan are considering a sale of Chisholm Energy, citing people familiar with the matter.

The effective date of the Chisholm deal will be November 1, with the transaction expected to close in the first quarter of 2022, Earthstone added.

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Reporting by Arunima Kumar in Bengaluru; Adaptation by Vinay Dwivedi

Our Standards: The Thomson Reuters Trust Principles.


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