Earthstone Energy Announces $1.0 Billion Delaware Basin Acquisition

Concurrently, Northern Oil and Gas, Inc. (“Northern”) will acquire working interests equal to a pro-rata 33⅓ % of the oil and gas assets of Novo for $0.5 billion from Earthstone, resulting in a $1.0 billion purchase price net to Earthstone for the retained 66⅔ % interest (the “Novo Acquisition”). Consideration at closing will be subject to customary purchase price adjustments. The effective date of the Novo Acquisition is May 1, 2023, and closing is anticipated to occur in the third quarter of 2023, subject to customary closing conditions.

The Vinson & Elkins team was led by partner Bryan Loocke, with assistance from senior associate Michael Zarcaro and associates Laura Byrd, Brad Oster and Vestita Kuntz. Other key team members include partners Mike Marek, Jackson O’Maley and Matt Strock, senior associate David Lassetter and associates Houston Morgan, Drew Clements, Rivers Stephens and Terrance Ogren; partners John Lynch, Todd Way and Gary Huffman and associates Dan Henderson, Ryan Dolmanet and Adam Bateman; partner James Longhofer; partner Becky Baker; and partner David D’Alessandro.