Source: Houston Chronicle

Austin-based Parsley Energy said it will pay $1.65 billion to acquire Denver’s Jagged Peak Energy in a combination of Permian Basin players.

Parsley Energy to buy Jagged Peak for $1.65 billion in Permian merger - oil and gas 360

Photo: Parsley Energy

The all-stock deal turns Parsley into a buyer at a time when energy analysts believed it would be more likely instead for Parsley to be scooped up by a Big Oil major looking to further expand in the Permian.

Jagged Peak was struggling financially amid weaker oil prices and a Permian environment increasingly dominated by the biggest firms.

Parsley, which has a larger presence in the Permian’s more mature Midland Basin, will expand greatly in the Permian’s booming western lobe, the Delaware Basin, through the deal.

“We now have a premier Delaware Basin business that rivals our foundational Midland Basin business,” said Parsley Chief Executive Matt Gallagher.

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