Benzinga | Jan 12, 2022 07:46AM EST

Desert Peak Minerals And Falcon Minerals Corporation To Combine In $1.9B All-Stock Merger, Creating A Premier, Shareholder Returns-Driven Mineral And Royalty Consolidation Company

* Combination creates a leading mineral and royalty company in the U.S., positioned to become consolidator of choice for large-scale, high-quality mineral and royalty positions, while returning significant capital to shareholders

* Under the terms of the definitive agreement, Falcon will issue 235 million shares of Class C common stock to Desert Peak's equityholders

* Falcon's existing shareholders will own approximately 27% of the combined company, and Desert Peak's equityholders will own approximately 73%; transaction is expected to be accretive to Falcon shareholders on a cash flow per share basis for 2022

* Combined company to be managed by the Desert Peak team, and will be headquartered in Denver, Colorado

DENVER & HOUSTON--(BUSINESS WIRE)-- Desert Peak Minerals ("Desert Peak") and Falcon Minerals Corporation (NASDAQ:FLMN, FLMNW))) ("Falcon") announced today that they have entered into a definitive agreement to combine in an all-stock transaction which values the combined enterprise at $1.9 billion. The combination is expected to create a premier mineral and royalty company at the front end of operators' cost curves, with low leverage, an emphasis on shareholder returns and a significant footprint in the Permian Basin and Eagle Ford.

The combined company will remain focused on consolidating high-quality mineral and royalty positions in the Permian Basin while optimizing its existing asset base. It is positioned to become a leading consolidator in the space through increased scale and an experienced Board of Directors and management team with a track record of consummating large, accretive acquisitions.