Earthstone Energy Inc. will spend $73.2 million to acquire assets in the Midland sub-basin in an effort to expand their operations, according to an Oct. 4 article by the Natural Gas Intel.
The Midland assets, purchased by Earthstone Energy, come from two undisclosed sellers and include a mix of stock and $49.2 million in cash, the article states. The deal is expected to close by the middle of the fourth quarter this year and go into effect July 1, 2022.
“The acquisition of these low-operating cost, high-margin, producing assets at an attractive valuation is a nice addition to our production and cash flow base,” CEO Robert Anderson told the Natural Gas Intel. “We expect to benefit from additional operating synergies when production operations are combined with other assets in the area.”
The 10,000-acre property, located in Irion County, produced 4,400 barrels of oil per day in September, the article states.
According to Earthstone, output was 26% oil and 52% liquids. Reserves include about 13.3 million barrels of oil, 58% of which is natural gas, 31% natural gas liquids, and 11% oil.
“As we have done in prior acquisitions, we look forward to
This marks Earthstone’s fourth deal this year.