Earthstone Energy has agreed to acquire the assets of privately held Chisholm Energy Holdings for $604 million.
Located in the northern Delaware Basin of New Mexico, Chisholm is majority owned by Warburg Pincus and its affiliates. Chisholm is currently operating a two-rig drilling program, which Earthstone plans to maintain, in addition to the two rigs Earthstone is running in the Midland Basin.
The assets encompass 36,100 net acres in the core of the Delaware Basin in Eddy and Lea counties in New Mexico. The deal increases Earthstone's Permian Basin acreage by more than 35 percent to 138,000 net acres.
“The Chisholm Acquisition caps off a series of highly accretive and value-adding transactions that have dramatically transformed Earthstone during 2021 and further establishes Earthstone as a Permian Basin focused company with increasing scale,” said Robert Anderson, president and CEO of Earthstone. “When this acquisition is combined with the previous four
