THRC Holdings Supports Pending Acquisition of QEP Resources by Diamondback Energy

Rhea-AI Summary

THRC Holdings L.P., a significant QEP Resources shareholder with 5.84% ownership, has publicly backed the acquisition of QEP by Diamondback Energy. THRC asserts that this consolidation is vital for improving balance sheets and reducing leverage issues. The acquisition is seen as beneficial due to expected synergies and enhanced production capabilities. Matt Wilks, VP of Investments for Wilks Brothers, expressed confidence in the long-term value for shareholders. The acquisition will be voted on during QEP's Special Meeting scheduled for March 16, 2021.

Positive

• THRC supports the acquisition, enhancing shareholder confidence.
• Expected synergies from the merger will reduce leverage.
• Consolidation aims to strengthen balance sheets and production efficiency.

Negative

• None.

THRC Holdings L.P. (“THRC”), a QEP Resources (NYSE: QEP) shareholder owning 5.84% of total shares outstanding, today issued the following statement announcing its public support of the pending acquisition of QEP by Diamondback Energy, Inc. (NYSE: FANG):

“We have felt for some time that consolidation in this market has been necessary to shore up companies’ balance sheets. We also believe that, while QEP has great management and assets, leverage is a real issue that would have to be addressed. To that end, this transaction provides a number of synergies that are hard for us to ignore and we believe the combined production along with the decreased leverage created in this transaction will allow a successful path forward for the combined company.

“THRC has always sought out opportunities in which we could invest for the long haul. Put simply, this is not a trade for us, rather we firmly believe there is long-term value here for the shareholders. For that reason, we are excited to support the proposed acquisition of QEP by Diamondback and are voting FOR this transaction,” said Matt Wilks, VP Investments for Wilks Brothers, LLC.

On December 21, 2020, QEP announced that it had entered into a definitive agreement to be acquired by Diamondback in an all-stock transaction. THRC Holdings will vote in support of the transaction ahead of QEP’s Special Meeting on March 16, 2021, at 8:00 a.m. MT.

About THRC Holdings L.P.

THRC Holdings L.P. is an investment portfolio managed by the Wilks Brothers, LLC family office.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210312005428/en/

FAQ

What is the significance of THRC supporting QEP's acquisition by Diamondback Energy?

THRC's backing signifies shareholder confidence and highlights potential financial stability and growth from the acquisition.

When is the vote for QEP's acquisition by Diamondback Energy taking place?

The vote is scheduled for March 16, 2021, at 8:00 a.m. MT during QEP's Special Meeting.

What percentage of QEP shares does THRC Holdings own?

THRC Holdings owns 5.84% of QEP Resources' total shares outstanding.

What are the expected benefits of the acquisition for QEP shareholders?

The acquisition is expected to provide synergies, reduce leverage, and enhance production capabilities, ultimately benefiting shareholders.