Stock Alert: Earthstone Energy Adds 21% On Acquisition Of Independence Resources Management LLC.

(RTTNews) - Shares of oil and gas exploration company Earthstone Energy, Inc. (ESTE) are rising more than 21% Friday morning on the news of it acquiring E&P company Independence Resources Management, LLC. (IRM) for about $185.9 million.

Earthstone today said it has entered into an agreement to acquire Independence Resources Management, LLC, a privately held independent E&P company backed by Warburg Pincus, LLC and its affiliates, operating in the Midland Basin.

The aggregate purchase price of $185.9 million includes about $135.2 million in cash as of November 30, 2020, which is expected to be lower on the closing date based on current forecasts, and nearly 12.7 million shares of Earthstone's Class A common stock valued at $50.8 million based on a closing share price of $3.99 on December 16, 2020.

The acquisition is expected to be accretive on all key financial metrics, the company said.

The Transaction is expected to close in the first quarter of 2021.

Earthstone Energy stock is currently trading at $5.10. It has traded in the range of $1.44- $7.23 in the last one year.