The Wall Street Journal: Parsley to buy Double Eagle’s Permian assets in $2.8 billion deal

Parsley Energy Inc. said Tuesday it would buy undeveloped land as well as oil-and-gas-producing assets in the oil-rich Permian basin from Double Eagle Energy Permian LLC in a stock-and-cash deal worth about $2.8 billion.

The transaction would add 71,000 acres to Parsley’s Permian holdings, bringing the total to roughly 227,000 acres, and is slated to close before April 20, pending closing conditions.

Parsley PE, -3.67% is financing the deal with $1.4 billion in cash and 39.4 million units of its Parsley Energy LLC subsidiary valued at roughly $1.4 billion, the company said.

With the acquisition, Parsley has updated guidance for the 2016 fiscal year, narrowing its production outlook from between an average of 37,000 barrels of oil equivalents a day and 39,000 barrels of oil equivalents a day to a range of 38,100 to 38,300.

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