PE Stock Gains 5% Following Jagged Peak Acquisition

PE stock is up 5% today after Parsley Energy Inc (NYSE:PE) announced it would acquire Jagged Peak Energy Inc (NYSE:JAG) in an all-stock merger worth approximately $2.27 billion USD.

The deal will see the Austin, Texas-based energy firm take on Jagged Peak’s net debt of approximately $625 million USD as of June 30, 2019. Under the terms of the agreement, JAG shareholders will receive a fixed exchange ratio of 0.447 shares of PE stock for each share of JAG stock they own. This represents $7.59 per Jagged Peak share based on Parsley’s closing price on October ...