Energy Prospectus

The merger of Earthstone into Permian Resources will vault PR’s pro forma market capitalization up to around $10 billion, ahead of E&Ps such as Matador Resources and Civitas Resources.

After the combination—and after Earthstone sells its final chunks of acreage in the Eagle Ford Shale—Permian Resources will be the third-largest pure-play Permian E&P behind Pioneer Natural Resources and Diamondback Energy, according to Enverus Intelligence Research Director Andrew Dittmar.

Read More: https://www.hartenergy.com/exclusives/could-permian-resources-shop-midland-assets-after-45b-earthstone-deal-206217

MY TAKE: PR would be wise to hold off selling the Midland Basin assets until natural gas prices rebound.

Any chance a giant company like XOM would now buyout the new PR? Why wait till prices go up?

Sales are always possible if the bid is high enough, but the team at PR wants to build the Company into a Powerhouse first. The Company and the management team will make a lot of money post-merger. Take a hard look at my proforma forecast.

Dan, what are your thoughts about Riley as a takeover candidate ?

Low chance, but sales are always possible, and Riley does have strong operating cash flow, FCF and lots of running room thanks to the recently closed Pecos Acquisition. The Central Basin Platform does not get the attention of the Midland and Delaware basins.