Permian Resources Strikes Deal To Acquire Earthstone Energy – Merger Arbitrage Mondays

Key Highlights

• The acquisition of Earthstone Energy (ESTE) by Permian Resources Corporation (PR).
• FTC withdraws in-house trial on Horizon Therapeutics (HZNP) – Amgen (AMGN) deal.
• Black Knight (BKI) and Intercontinental Exchange (ICE) sign a consent agreement with the FTC.

According to the Financial Times, upstream mergers and acquisitions in the United States surged to $24 billion in the second quarter of this year, marking a 167% increase from the preceding quarter. One of the significant transactions of the quarter was the acquisition of PDC Energy by oil behemoth Chevron (CVX), which was consummated at the start of this month.

On August 21, 2023, Earthstone Energy entered into a definitive agreement to be acquired by Permian Resources Corporation (PR), which was formed from the $7 billion merger between Centennial Resource Development and Colgate Energy Partners in 2022.

This deal was announced just days following Earthstone’s successful acquisition of competing private-equity-backed Novo Oil & Gas for $1.5 billion. The acquisition of Novo Oil & Gas has contributed over 200 high-yield drilling sites and has extended Earthstone’s inventory to cover a span of 13 years.

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