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.
Recommended Reading
Chevron Upgrades Refinery to Expand Light Crude Processing Capacity
2024-12-11 - The retrofit of Chevron’s Pasadena facility increases equity Permian crude processing capacity by 15%.
Belcher: Energy Sector Grapples with Looming Labor Crisis
2024-12-09 - The U.S. needs approximately 400,000 new engineers each year moving forward but is currently only able to fill about one-third of the engineering positions available through at least 2030.
What's Affecting Oil Prices This Week? (Dec. 9, 2024)
2024-12-09 - For the upcoming week, Stratas Advisors believes the announced delay by OPEC+ will keep the price of Brent crude above $70, but not reach $73.
DOE Report on LNG Pause Climate to Arrive Before January
2024-12-08 - The White House said it implemented a permit pause on export facilities to allow time for an analysis of LNG climate impacts.
Kolibri CEO Expects Tishomingo Well Pad to be 'More Economic'
2024-12-06 - Kolibri Global Energy Inc., an operator in the Tishomingo Field in Oklahoma, reported strong performance at its Alicia Renee well pad.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.