Earthstone gets $400 million incremental commitments to acquire Titus

By Marisa Wong

Los Angeles, June 28 – Earthstone Energy, Inc. has obtained $400 million of incremental commitments from existing lenders, increasing commitments under its senior secured credit facility to $1.2 billion from $800 million upon closing, according to a press release.

Earthstone’s current borrowing base is $1.4 billion and is expected to increase with its acquisition of the New Mexico assets of Titus Oil & Gas Production, LLC and Titus Oil & Gas Production II, LLC and their affiliates located in the northern Delaware Basin. Titus is privately held with sponsorship by investment funds managed by NGP Energy Capital Management, LLC.

The cash portion of the consideration for the acquisition is expected to be funded with cash on hand and borrowings under the credit facility. The transaction, valued at $627 million, is expected to close in the third quarter of 2022.

The Woodlands, Tex.-based Earthstone is an energy company with primary assets located in the Permian Basin of west Texas and southern New Mexico.

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