Permian Resources Corp. and Earthstone Energy, Inc. on Monday agreed to combine in a $4.5 billion transaction to create a Delaware sub-basin exploration and production (E&P) independent with 400,000-plus net acres and pro forma natural gas and oil output of 300,000 boe/d.

Permian Resources was formed last year in a $7 billion merger between Centennial Resource Development Inc. and Colgate Energy Partners III LLC. Earthstone was formed about three years ago.

The Permian Resources team began examining merger opportunities when it was formed last year, Co-CEO James Walter said during a webcast to discuss the combination. 

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