Roth MKM analyst John White expects the shares of Earthstone Energy (ESTE) to “react positively” to the $18.64 per share all-stock takeover offer made by Permian Resources (PR) given the stock’s $16.23 closing price on Friday. However, given the firm’s own $31 price target and the consensus target price of $25.50, the firm is “surprised” to see Earthstone accepting this offer, the analyst tells investors. The accretive nature of this transaction immediately improves Permian’s current return of capital program and the combined company expects to allocate approximately 90% of capital to high rate-of-return projects in the Delaware Basin during 2024, noted the firm, which has Buy ratings on both Earthstone and Permian Resources.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on ESTE:
- Earthstone Energy (NYSE: ESTE) to Merge with Permian Resources in $4.5 Billion Deal
- Earthstone Energy rises 16.5%
- Earthstone Energy rises 11.3%
- Permian Resources to Acquire Earthstone Energy in All-Stock Transaction, Creating a $14 Billion Premier Delaware Basin Independent E&P
- Permian Resources to acquire Earthstone Energy in $4.5B all-stock transaction
