Simpson Thacher is representing Bighorn Permian Resources, LLC (“Bighorn”) in connection with an agreement entered into by Earthstone Energy, Inc. (“Earthstone”) to acquire the assets of privately held Bighorn located in the Midland Basin. The aggregate purchase price of the Bighorn acquisition is approximately $860 million, consisting of $770 million in cash and approximately 6.8 million shares of Earthstone’s Class A common stock valued at $90 million based on a closing share price of $13.25 on January 28, 2021, subject to customary closing adjustments. The effective date of the Bighorn acquisition will be January 1, 2022, with closing anticipated early in the second quarter of 2022.
Bighorn Permian Resources, LLC, formerly known as Sable Permian Resources, is an independent oil and natural gas company focused on the acquisition, development and production of unconventional oil and natural gas reserves within the Permian Basin of West Texas.
The Simpson Thacher team includes Shamus Crosby, Christopher Bennett, Rebecca Kendall, Isaac Syed and Emiley Dillon (Corporate); Larry Moss (ECEB); Kelly Karapetyan (Antitrust); Russell Light (Tax); and Michael Isby (Environmental).