Earthstone Energy (NYSE: ESTE) acquired EnCap-backed Novo Oil & Gas Holdings for $1.5 billion in August 2023. Concurrently, Earthstone flipped a one-third working interest to Northern Oil and Gas for $500 million, effectively reducing the net cost to $1 billion.
The deal added approximately 38,000 boe/d of production from 114 wells and approximately 11,300 net acres in the core of the Delaware Basin in Eddy County, New Mexico, and Culberson County, Texas.
Truist Securities acted as the exclusive financial advisor to Earthstone. Raymond James & Associates served as financial advisor for and provided a fairness opinion. RBC Richardson Barr acted as the exclusive financial advisor to Novo. Legal advisors included Kirkland & Ellis LLP for Earthstone, Richards, Layton & Finger, P.A. for Earthstone’s Conflicts Committee, and Vinson & Elkins LLP for EnCap and Novo.