Earthstone Launches Another Deal to Add Titus’ Delaware into the Fold

The $627 million deal adds 86 net locations in the Permian Basin and boosts Earthstone Energy’s production by an estimated 26%.

Earthstone Launches Another Deal to Add Titus’ Delaware into the Fold

Earthstone Energy agreed to acquire the New Mexico assets of Titus Oil & Gas Production LLC and Titus Oil & Gas Production II LLC, privately held companies in the Permian Basin backed by NGP Energy Capital Management LLC. (Source: Titus Oil & Gas)

Roughly four weeks after proclaiming itself the “new” Earthstone Energy Inc., The Woodlands, Texas-based company announced yet another transaction June 28: the acquisition of Titus Oil & Gas and a 26% increase in production in the Delaware Basin.

The $627 million acquisition adds 86 net locations in the Permian Basin in Eddy and Lea counties, N.M., on 7,900 net acres of leasehold. It isn’t clear how much of the leasehold might be on federal acreage.

The deal also marks Earthstone’s seventh acquisition since 2021, a span that includes the closing of roughly $1.89 billion in acquisitions in the Permian Basin. 

Earthstone agreed to pay Titus Oil & Gas Production LLC and Titus Oil & Gas Production II LLC, privately held companies backed by NGP Energy Capital Management LLC, $575 million in cash and the equivalent of $52 million in stock (3.9 million shares of its Class A common stock based on the June 24 closing price).

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.