Earthstone Energy Up 10% On Expanding In Northern Delaware Basin

(RTTNews) - Shares of Earthstone Energy, Inc. (ESTE) are rising more than 7% Tuesday morning after the company announced deal to acquire assets in the northern Delaware Basin for about $627 million to be paid in cash and stock.

The company plans to expand in Northern Delaware Basin by acquiring New Mexico assets of Titus Oil & Gas Production, LLC and Titus Oil & Gas Production II, LLC and their affiliates.

Earthstone said the acquisition is expected to increase net production by 18,000-23,000 Boepd in the fourth quarter of 2022.

The purchase price of $627 million is to be paid in $575 million in cash and about 3.9 million shares of Earthstone's Class A common stock at $13.51 per share.

The transaction is expected to be closed in the third quarter of 2022.

ESTE is at $16.19 currently. It has traded in the range of $7.01-$22.25 in the past 52 weeks.