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Earthstone Energy +20% following earnings, merger with Bold Energy

Published 11/08/2016, 02:19 PM
Earthstone Energy +20% following earnings, merger with Bold Energy
ESTE
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  • Earthstone Energy (ESTE +19.8%) shoots ~20% higher after reporting a lighter than expected Q3 loss and a merger deal with fellow Permian Basin player Bold Energy.
  • The combined company will own 26,800 net surface acres plus ~715 gross drilling locations in the Midland Basin, as well as 18,600 net surface acres in the Eagle Ford shale in south Texas.
  • Current production of the combined company is estimated 7,400 boe/day (63% oil), with 46% coming from the Midland Basin and 38% from the Eagle Ford.
  • When completed, the deal will give current ESTE stockholders ~39% of the combined company, with Bold members owning the remaining 61%.

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