Earthstone Energy completed the acquisition of Independence Resources Management from Warburg Pincus for $185.9m.

Earthstone Energy, a growth-oriented independent energy company, completed the acquisition of Independence Resources Management, an oil and gas company, from Warburg Pincus, a private equity firm, for $185.9m, consisting of $135.2m in cash and 12.7m shares worth $50.8m. “The addition of these complementary Midland Basin assets increases our production and Adjusted EBITDAX by approximately 50% with minimal impact to leverage. Additionally, we will be adding 70 gross high-graded drilling locations from IRM’s core acreage that carry a similar return profile to our highly economic Midland Basin wells and will compete with our existing inventory for future development capital. With a minimal need for incremental general and administrative costs, we expect to improve cash margins further by targeting an approximately 25% decrease in our go forward Cash G&A per unit costs,” Robert J. Anderson, Earthstone President and CEO.