Latham & Watkins Advises Independence Resources Management in Acquisition by Earthstone Energy

Earthstone Energy, Inc. (“Earthstone”) has announced that it has entered into a definitive agreement to acquire Independence Resources Management, LLC (“IRM”), a privately held independent E&P company backed by Warburg Pincus, LLC and its affiliates (“Warburg”), and operating in the Midland Basin (the “Transaction”). The aggregate purchase price of the Transaction is expected to be approximately US$185.9 million consisting of an estimated amount of US$135.2 million in cash as of November 30, 2020 and approximately 12.7 million shares of Earthstone’s Class A common stock valued at US$50.8 million based on a closing share price of US$3.99 on December 16, 2020. The Transaction is expected to close in the first quarter of 2021.

Latham & Watkins LLP represents Independence Resources Management, LLC in the transaction with a corporate deal team led by Houston partners Jeff Munoz and Thomas Brandt, with associates Alice Parker, Bo Rose and Luke Strother. Advice was also provided on tax matters by Houston partner Jim Cole, with associate Marianne Standley; and on benefits and compensation matters by Washington, D.C. partner Adam Kestenbaum.