Falcon Minerals Agrees to $1.9 Billion All-stock Merger with Desert Peak

The transaction with Desert Peak will mark the next chapter for Falcon Minerals, which formed in 2018 through an $800 million combination with Blackstone’s royalty business.

Emily

Patsy

Hart Energy

Wed, 01/12/2022 - 08:30 AM

Falcon Minerals Corp. agreed on Jan. 12 to an all-stock merger with Desert Peak Minerals, the largest independent Permian Basin pure-play mineral and royalty company, set to create a mineral and royalty company with a significant Permian and Eagle Ford footprint and an enterprise value of $1.9 billion.

The transaction will mark the next chapter for Falcon, which formed in 2018 through an $800 million combination involving its predecessor—a blank-check company—and Blackstone’s royalty business. It also follows a thorough evaluation over the last several months of a number of alternatives to maximize shareholder value, according to Claire Harvey, chair of the Falcon board and the transaction committee.

“Following our comprehensive review, we believe that a combination with Desert Peak represents the best opportunity to maximize value for Falcon’s shareholders,” Harvey commented in a company release.