M&A · Energy · Crude Petroleum & Natural Gas
Permian Resources Corp to acquire Earthstone Energy Inc
Announced Aug 21, 2023 · Closed Nov 1, 2023
Deal value$4.50BEV $3.59B
Premium4.0%To unaffected price
EV / Adj. EBITDA—2.0x EV / Revenue
ConsiderationAll stock$18.64 per share
Transaction
- Acquirer
- Permian Resources Corp (PR)
- Target
- Earthstone Energy Inc
- Buyer type
- Strategic
- Offer price per share
- $18.64
- Enterprise value
- $3.59B
- Status
- Closed Nov 1, 2023
Deal protections
- Break fee (target pays)
- $87.5M · 1.9%
- Reverse fee (buyer pays)
- $175M · 3.9%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Jefferies, Morgan Stanley
- To the target
- RBC Capital Markets, Wells Fargo
- Morgan Stanley fee
- $10.0M
Sector context · Energy
- Comparable deals
- 36 in the prior 24 months
- Premium
- 4.0% vs. 24.6% sector median
- EV / Adj. EBITDA
- Sector median 8.7x
- Break fee
- 1.9% vs. 2.9% sector median
Timeline
- AnnouncedAug 21, 2023
- Proxy filedSep 26, 2023
- Definitive proxySep 26, 2023
- Shareholder voteOct 30, 2023
- ClosedNov 1, 2023
Valuation · fairness opinions
Trading comparablesMorgan Stanley$14.60$25.45
Trading comparablesMorgan Stanley$10.30$14.30
Discounted cash flowMorgan Stanley$17.50$24.50
Discounted cash flowMorgan Stanley$15.75$22.50
Discounted cash flowMorgan Stanley$19.50$27.15
Trading comparables$14.39$21.98
Trading comparables$16.80$26.66
Trading comparables$19.35$22.65
Trading comparables$16.89$19.93
Trading comparables$18.56$24.94
Offer $18.64
Implied value per Earthstone Energy Inc share by analysis, from Morgan Stanley.