January 12, 2020
Shareholders have approved Austin-based Parsley Energy Inc.‘s acquisition of a Denver-based Permian Basin O&G operator.
Jagged Peak Energy Inc. merged with and into a Parsley subsidiary on Friday, with each share of Jagged Peak common stock converted into the right to receive 0.447 shares of Parsley Class A common stock.
Jagged Peak’s JAG common stock has ceased trading on the NYSE.
Parsley announced the appointment of S. Wil VanLoh, Jr. and Jim Kleckner to its board of directors.
Mr. VanLoh is the founder and CEO of Quantum Energy Partners and formerly served as a Jagged Peak director.
Mr. Kleckner was formerly president, CEO and a director of Jagged Peak.
With about “75,000 net acres in the adjacent counties of Winkler, Ward, Reeves and Pecos, legacy Jagged Peak acreage includes more than 2,000 premiere Delaware Basin drilling locations targeting significant original oil-in-place within multiple stacked hydrocarbon-bearing formations,” according to Jagged Peak’s website.
Background from the Houston Chronicle: [Jagged Peak is a deal that Parsley CEO Matt] “Gallagher had to hit the road and man the phones for in order to convince investors of its potential. After an initial negative reaction that sent the stock plunging 11% the day the deal was announced, the shares have rebounded 22% since. That’s about double the gain for S&P’s E&P index over the same span, at a time when the market has mostly punished buyers. Even as he’s still putting the finishing touches on the Jagged Peak takeover, Gallagher reiterated that the newly merged company is a good takeover target.”