Diamondback Energy, Inc. - FANG STOCK NEWS

Diamondback Energy, Inc. (NASDAQ:FANG) has priced an offering of $650 million in 0.900% senior notes maturing in 2023, $900 million in 3.125% senior notes maturing in 2031, and $650 million in 4.400% senior notes maturing in 2051. The proceeds will fund tender offers for outstanding senior notes and general corporate purposes. The offering is expected to close on March 24, 2021. The notes will be sold via a registered offering under an effective shelf registration statement with the SEC.

Diamondback Energy (NASDAQ:FANG) announced early results of its cash tender offers for outstanding senior notes. As of March 17, 2021, approximately 45.97% of its 2025 Notes and 96.65% of QEP Resources' Notes were tendered. The offers are contingent upon the successful completion of Diamondback's acquisition of QEP, which closed on the same day. The tender offers expire on March 31, 2021, with expected initial settlements on March 24, 2021. Consents obtained for QEP notes will allow amendments to their indentures pending majority acceptance.

Diamondback Energy has successfully completed its all-stock acquisition of QEP Resources, following QEP stockholder approval on March 16, 2021. As part of the merger, QEP stockholders will receive 0.05 shares of Diamondback for each share of QEP. Post-merger, QEP's stock will no longer be traded on NYSE and its reporting obligations will cease. This acquisition aims to enhance Diamondback's position in the Midland Basin, enabling a focus on high-return projects. CEO Travis Stice announced plans to share updates on synergy capture and operating plans for 2021.

On March 11, 2021, Glazer Capital, which owns 5.7% of QEP Resources, Inc. (NYSE: QEP), urged shareholders to reject the proposed acquisition by Diamondback Energy, Inc. (Nasdaq: FANG) set for March 16, 2021. Glazer Capital asserts that the offer undervalues QEP shares, which they believe are worth significantly more than the 0.05 shares of Diamondback proposed. They cite an estimated forfeited value per QEP share of $1.21 to $2.26 and advocate for a vote against the deal to prompt a better offer.

On March 9, 2021, Glazer Capital, which owns 5.7% of QEP Resources shares, issued a letter urging fellow shareholders to reject the proposed acquisition by Diamondback Energy, scheduled for a vote on March 16, 2021. The letter argues that the merger consideration of 0.05 shares of Diamondback per QEP share is grossly inadequate, especially given recent surges in small-cap exploration and production company valuations. Glazer believes QEP is worth between $5.74 and $6.34 per share based on comparative valuations, significantly higher than the current acquisition terms.

Diamondback Energy (NASDAQ:FANG) has launched cash tender offers to acquire its own 5.375% Senior Notes due 2025 and QEP Resources' 5.375% Senior Notes due 2022, 5.250% Senior Notes due 2023, and 5.625% Senior Notes due 2026. These offers are connected to Diamondback's acquisition of QEP. The offers allow for early tender consideration and are set to expire on March 31, 2021. They are conditional on the successful completion of the QEP acquisition and other financing conditions. The expected initial settlement date is March 24, 2021.

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.

Diamondback Energy reported solid Q4 2020 results, achieving average production of 175.8 MBO/d and generating cash flow from operations of $403 million. The company declared a 6.7% dividend increase to $1.60 per share, with a Q4 dividend of $0.40 payable on March 11, 2021. Total cash capital expenditures for the quarter were $226 million, contributing to a Free Cash Flow of $242 million. Despite a net loss of $739 million due to impairment charges, proved reserves increased by 17% to 1,316 MMBOE, reflecting strong operational performance and a commitment to capital discipline.

Diamondback Energy, Inc. (NASDAQ: FANG) has announced plans to release its fourth quarter 2020 financial results on February 22, 2021, after market close. A conference call for investors and analysts will follow on February 23, 2021, at 8:00 a.m. CT to discuss these results. Participants can join by calling (877) 440-7573 or (253) 237-1144, using confirmation code 2863138. A replay will be available until March 2, 2021. The earnings call will also be accessible via a live broadcast on the company’s website in the Investor Relations section.