RSP Permian Inc. (NYSE: RSPP) completed the first part of its $2.4 billion acquisition of Delaware Basin's Silver Hill, the company said Nov. 28.

Dallas-based RSP closed the acquisition of Silver Hill Energy Partners LLC for about $604 million in cash and 15 million shares of RSP common stock.

The company anticipates closing the second half of the acquisition, which consists of the purchase of Silver Hill's subsidiary Silver Hill E&P II LLC, in first-quarter 2017. The purchase price of Silver Hill E&P II will comprise of about $646 million of cash and 16 million shares of RSP stock.

RELATED: RSP Permian Buys Delaware Basin’s Silver Hill For $2.4 Billion

Silver Hill collectively owns about 68,000 gross (41,000 net) acres in Loving and Winkler counties in West Texas.

As of October, Silver Hill's assets were producing about 15,000 barrels of oil equivalent per day (boe/d) net from 58 wells. The wells, 49 of which are horizontal, were producing from seven horizontal zones.

The transaction adds 50% more production to RSP, which averaged 29.8 MMboe/d in the third quarter, Securities and Exchange Commission filings show.

RSP Permian plans to fund the acquisition through capital market transactions, which may include equity or debt offerings.

RBC Capital Markets was lead M&A adviser to RSP and provided fairness opinions to RSP’s board of directors. Barclays Capital Inc. was a co-M&A adviser. Vinson & Elkins LLP was the company’s legal counsel.

Jefferies LLC was financial adviser to Silver Hill. Thompson & Knight LLP and DLA Piper LLP served as its legal counsel.