Earthstone Energy Inc. agreed on Dec. 18 to a cash-and-stock transaction to acquire Independence Resources Management LLC (IRM), a privately held independent E&P company backed by Warburg Pincus LLC and operating in the Midland Basin.

The transaction, valued at about $185.9 million, is expected to roughly double both Earthstone’s production and adjusted EBITDAX with minimal impact to leverage, according to Robert J. Anderson, the company’s president and CEO.

“This transaction is another important step in the execution of our growth strategy to further increase our scale with high-quality accretive acquisitions,” Anderson said in a statement. “This is consistent with our stated strategy to be a consolidator in the Permian Basin and positions us well for additional value-enhancing transactions.”

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