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Earthstone Energy Closes USD 627m Acquisition of New Mexico Assets of Titus
Thursday 11 August 2022

Texas-based independent energy company Earthstone Energy, Inc. (NYSE: ESTE) has closed the acquisition of the New Mexico assets of Titus Oil and Gas Production, LLC and Titus Oil and Gas Production II, LLC and their affiliates, to expand in the northern Delaware Basin, for USD 627m, the company said.

Titus is privately held with sponsorship by investment funds managed by NGP Energy Capital Management, LLC.

The aggregate purchase price of the Titus acquisition consists of USD 575m in cash and approximately 3.9m shares of Earthstone's class A common stock valued at USD 52m based on a closing share price of USD 13.51.

The cash portion of the consideration is expected to be funded with cash on hand and borrowings under the company's senior secured revolving credit facility.

In conjunction with the Titus acquisition, Earthstone has obtained USD 400m of incremental commitments from existing lenders, increasing elected commitments under the Credit Facility from the current USD 800m to USD 1.2bn upon closing.

Earthstone's current borrowing base is USD 1.4bn and is expected to increase with the Titus acquisition.

The acquisition is expected to increase net production by 18,000-23,000 Boepd (65% oil) in the fourth quarter of 2022.

Legal advisors included Haynes and Boone, LLP and Jones and Keller, P.C. for Earthstone, and Bracewell, LLP for Titus. Jefferies LLC acted as exclusive financial advisor to Titus.
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Date Published: 11/08/2022

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