Earthstone Energy to Acquire Warburg-backed Chisholm in Permian Basin

The multimillion-dollar acquisition of Chisholm Energy, majority owned by Warburg Pincus, will expand Earthstone Energy’s Permian footprint into the Delaware Basin.

Earthstone Energy to Acquire Warburg-backed Chisholm in Permian Basin

In total, Earthstone Energy expects the Chisholm acquisition to increase its Permian Basin acreage footprint by over 35% to roughly 138,000 net acres. (Source: Earthstone Energy Inc.)

Earthstone Energy Inc. on Dec. 16 agreed to acquire the assets of privately held Permian Basin operator Chisholm Energy Holdings LLC in a cash-and-stock transaction worth over $600 million that marks the independent E&P company’s fifth acquisition within the past 12 months.

“The Chisholm acquisition caps off a series of highly-accretive and value-adding transactions that have dramatically transformed Earthstone during 2021 and further establishes Earthstone as a Permian Basin focused company with increasing scale,” Robert J. Anderson, president and CEO of Earthstone, commented in a company release.

In particular, the acquisition of Chisholm will expand Earthstone’s Permian footprint into the Delaware Basin. The company expects the deal will not only increase its net production and adjusted EBITDAX but also roughly double free cash flow in 2022 versus Earthstone standalone.

Already have an account? Log In

Sign up for FREE access to view this article now!

Unlock Free Access

Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.