Earthstone Energy Inc.’s subsidiary Earthstone Energy Holdings LLC is making a private offering of $500 million in senior unsecured notes to help fund the purchase of Novo Oil & Gas Holdings announced on June 15.
The Woodlands, Texas-based E&P’s $1 billion deal to acquire Novo is expected to close in the third quarter and will add approximately 56,000 net acres to Earthstone’s position in the Delaware Basin.
Senior notes take precedence over other debts if a company goes bankrupt and is forced to liquidate. By definition, unsecured notes offer no security for the investment, but Earthstone’s offering memorandum states that the “notes will be the senior unsecured obligations of the issuer and will rank equally in right of payment with all of the issuer’s other senior indebtedness.”
Earthstone CEO Robert Anderson has described the company as conservative and consistent with a focus on longevity. The company has $1.9 billion in revenues, nearly $1.2 billion in cash from operations and $998.2 million in debt, according to Seeking Alpha.
Recommended Reading
Huddleston: Haynesville E&P Aethon Ready for LNG, AI and Even an IPO
2025-01-22 - Gordon Huddleston, president and partner of Aethon Energy, talks about well costs in the western Haynesville, prepping for LNG and AI power demand and the company’s readiness for an IPO— if the conditions are right.
Perission Petroleum Extends Colombian Assets Sale
2025-01-22 - The sale was delayed due to pending formal confirmation regarding the extension of Perission Petroleum’s E&P license in Colombia, specifically for Block VMM-17.
FLNG Gimi Receives First Gas from BP’s FPSO in the GTA Field
2025-01-22 - Golar LNG’s Gimi FLNG vessel will support BP, which began flowing gas from wells at the Greater Tortue Ahmeyim Phase 1 LNG project in early January.
TGS Launches Advanced Imaging Centers for Petrobras
2025-01-21 - TGS' 4D technologies will provide enhanced subsurface clarity in basins offshore Brazil for Petrobras.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.