Earthstone Energy’s $604 Million Acquisition of Chisholm’s Assets

Kirkland & Ellis counseled Chisholm Energy Holdings, while Haynes and Boone advised Earthstone Energy on the deal.

Chisholm Energy Holdings, LLC announced its decision to sell its assets to Earthstone Energy, Inc. (NYSE: ESTE). Chisholm is majority owned by Warburg Pincus, LLC and its affiliates.

The aggregate purchase price of the Chisholm acquisition is approximately $604 million consisting of $340 million in cash at closing, subject to customary closing adjustments, $70 million of deferred cash due over the 12 months after closing and approximately 19.4 million shares of Earthstone’s Class A common stock valued at $194 million based on a closing share price of $9.98 on December 15, 2021.

Earthstone Energy, Inc. is a growth-oriented, independent energy company engaged in the development and operation of oil and natural gas properties. Its primary assets are located in the Permian Basin of west Texas.

Chisholm Energy Holdings, LLC is a privately held oil and gas company headquartered in Fort Worth, Texas with operating assets in Lea and Eddy counties New Mexico.

The Kirkland team was led by corporate partners Adam Larson, Chris Heasley, Kim Hicks and Paul Knowlton and associates Alia Heintz, Jonathan Strom and Zach Scott; and capital markets partner Julian Seiguer and associate Ieuan List. 

The Haynes Boone deal team included Austin Elam, Partner and Co-Chair of the Oil and Gas Practice Group, Kim Mai and Camie Carlock.

Involved fees earner: Camie Carlock – Haynes and Boone; Austin Elam – Haynes and Boone; Kim Mai – Haynes and Boone; Christopher Heasley – Kirkland & Ellis; Alia Heintz – Kirkland & Ellis; Kim Hicks – Kirkland & Ellis; Paul Knowlton – Kirkland & Ellis; Adam Larson – Kirkland & Ellis; Ieuan List – Kirkland & Ellis; Zach Scott – Kirkland & Ellis; Julian Seiguer – Kirkland & Ellis; Jonathan Strom – Kirkland & Ellis;

Law Firms: Haynes and Boone; Kirkland & Ellis;

Clients: Chisholm Energy Holdings, LLC; Earthstone Energy Inc;