Diamondback Energy, Inc. Announces Closing of Acquisition from Guidon Operating LLC

Rhea-AI Summary

Diamondback Energy (NASDAQ: FANG) has finalized its acquisition of oil and gas assets from Guidon Operating LLC for $375 million in cash and 10.68 million shares of common stock. This transaction enhances Diamondback's portfolio by adding approximately 32,500 net acres in the Northern Midland Basin, primarily held by production. These assets are expected to facilitate efficient capital deployment for full field development, strengthening the company's operational capacity in the competitive Permian Basin.

Positive

• Acquisition of 32,500 net acres in the Northern Midland Basin enhances operational capacity.
• Transaction value of $375 million in cash and stock supports future growth.

Negative

• None.

MIDLAND, Tx., Feb. 26, 2021 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced that it has completed its previously announced acquisition of leasehold interests and related oil and gas assets from Guidon Operating LLC, a portfolio company of Blackstone Energy Partners. Aggregate consideration consisted of $375 million in cash and 10.68 million shares of the Company’s common stock after accounting for post-effective date adjustments. As a result of the acquisition, Diamondback adds approximately 32,500 net acres in the Northern Midland Basin, primarily held by production allowing for capital efficient full field development.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com. 

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, that address activities that Diamondback assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events, including the current adverse industry and macroeconomic conditions, commodity price volatility, production levels, the impact of the recent presidential and congressional elections on energy and environmental policies and regulations, any other potential regulatory actions (including those that may impose production limits in the Permian Basin), the impact and duration of the ongoing COVID-19 pandemic, acquisitions and sales of assets (including the pending QEP acquisition), future dividends, production, drilling and capital expenditure plans, severe weather conditions (including the impact of the recent severe winter storms on production volumes), impact of impairment charges and effects of hedging arrangements. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Diamondback. Information concerning these risks and other factors can be found in Diamondback’s filings with the Securities and Exchange Commission ("SEC"), including its reports on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov. Diamondback undertakes no obligation to update or revise any forward-looking statement.

Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com

FAQ

What is the value of Diamondback's acquisition from Guidon Operating?

The total value of the acquisition is $375 million in cash and 10.68 million shares of Diamondback's common stock.

How many acres did Diamondback Energy acquire in the Northern Midland Basin?

Diamondback Energy acquired approximately 32,500 net acres in the Northern Midland Basin.

What is the significance of the acquisition for Diamondback Energy?

The acquisition is significant as it adds productive assets, facilitating capital-efficient full field development in the Permian Basin.

When was the acquisition of Guidon Operating completed?

The acquisition was completed on February 26, 2021.