Why Parsley Energy Stock Is Plunging Today
Shares of Parsley Energy (NYSE: PE) sold off more than 11% by 10:30 a.m. EDT on Monday. Weighing on the energy company's stock price was the announcement that it would acquire fellow Permian Basin-focused producer Jagged Peak Energy (NYSE: JAG).
Parsley Energy has agreed to buy Jagged Peak Energy in an all-stock deal valuing the company at $2.27 billion, including the assumption of $625 million of net debt. The deal price implied a premium of 11.2% to Jagged Peak's closing price on Friday, though it's only about 1.5% above its average over the last 30 trading days. Parsley Energy investors will own 77% of the combined company once the transaction closes, which the companies anticipate will happen in the first quarter of next year.
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Source Fool.com
