Following are the financial benefits after the merger:
- Combined pro forma scale of approximately 838,000 net acres and 816 MBOE/d of net production
- Best-in-class inventory depth and quality with approximately 6,100 pro forma locations with break evens at <$40 WTI
- Annual synergies of $550 million representing over $3.0 billion in NPV10 over the next decade
- Capital and operating cost synergies: approximately $325 million
- Capital allocation and land synergies: approximately $150 million
- Financial and corporate cost synergies: approximately $75 million
- Substantial near and long-term financial accretion with ~10% free cash flow per share accretion expected in 2025
- Stock-weighted transaction solidifies investment grade balance sheet
- Advances leading ESG profile
“This combination offers significant, tangible synergies that will accrue to the pro forma stockholder base,” stated Travis Stice. (*)