Delaware Basin, a part of the wider Permian Basin, is a prime target for producers looking to increase their inventory.
Earlier this month, it also closed a $1.5 billion deal to buy Novo Oil & Gas Holdings.
With Monday's deal, Permian Resources would have pro forma production of about 300,000 barrels of oil equivalent per day (boepd).
Shares of Earthstone jumped 8.6% to $17.63 in premarket trading, while Permian Resources declined more than 3% to $12.45.
After the deal closes, existing Permian Resources and Earthstone shareholders would own about 73% and 27% of the combined company, respectively.
Persons:
Earthstone, Leo Mariani, Roth, Mariani, Arunima Kumar, Anil D'Silva, Shilpi Majumdar
Organizations:
Earthstone Energy, Oil & Gas Holdings, Resources, Thomson
Locations:
Delaware, . Delaware, Texas, New Mexico, Midland , Texas, Bengaluru