PVAC - Penn Virginia to acquire Lonestar Resources for $370M

SB/iStock via Getty Images Penn Virginia (PVAC) and Lonestar Resources (LONE) have entered into a merger agreement under which Penn Virginia will acquire Lonestar in an all-stock transaction. Under the terms of the agreement, Lonestar shareholders will receive 0.51 shares of common stock of Penn Virginia for each Lonestar share. The transaction is valued at ~$370M, composed of ~5.9M PVAC common shares and the assumption of ~$236M of Net Debt. The deal is expected to close in H2 2021. Upon completion of the acquisition, Penn Virginia shareholders will own ~87% of the combined company, and Lonestar will own ~13%. The merger is expected to increase estimated 2021 sales volumes and FCF by ~50%, complement existing assets and improve other key financial metrics.

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Penn Virginia to acquire Lonestar Resources for $370M