Earthstone Energy Inc. has closed the acquisition of northern Delaware Basin assets owned by Novo Oil & Gas Holdings LLC for $1 billion, according to an Aug. 15 press release. The deal was made jointly with Northern Oil & Gas, which bought a third of the assets on a non-operated basis for $500 million.

In connection with the transaction, NOG and Earthstone entered into cooperation and joint operating agreements, which include a multi-year development plan for the Novo assets, the company said in a separate press release.

At closing, NOG paid $468.4 million in cash, funded in part by a $37.5 million deposit paid at signing in June 2023.

RELATED: Are Non-Ops the New Alternative Financing for M&A?

“A key piece of our strategy has been to grow our northern Delaware Basin footprint,” said Robert J. Anderson, president and CEO of Earthstone. “In February of 2022, we acquired the assets of Chisholm and then added to that position with the acquisition of Titus last August. Adding the Novo assets further shifts our focus on the prolific northern Delaware Basin. We expect most of our capital activity to be dedicated to this area in the future, with four of our five rigs focused on the northern Delaware Basin.”

In addition to the closing of the acquisition, the company also said its senior secured credit facility has increased the company’s elected borrowing base commitments to $1.75 billion from $1.45 billion. The company’s borrowing base also increased to $2 billion from $1.65 billion.

Earthstone Energy is an independent company engaged in acquisitions and the development and operation of oil and natural gas properties. Its primary assets are located in the Permian Basin.