Permian Resources to acquire Earthstone for $4.5 billion

Permian Resources Corp., the US oil company named after the shale basin it operates in, has agreed to acquire Earthstone Energy Inc. by taking over all the shares worth about $4.5 billion.

This is the latest acquisition by Will Hickey and James Walter, 30-year-old co-CEOs of Midland, Texas-based Permian Resources, who have built the company into a major independent US shale operator through a series of mergers in recent years.

The deal is expected to close by the end of the year.

Permian Resources and Earthstone are jointly operating an eleven-rig drilling program primarily focused on the Delaware Basin in West Texas and southern New Mexico.

Earthstone was up 17% in premarket trading, while Permian was up slightly.