Rattler Midstream LP, a Subsidiary of Diamondback Energy, Inc., Announces Closing of Drop Down Transaction

Rhea-AI Summary

Rattler Midstream LP (NASDAQ: RTLR) has successfully completed a $160 million drop down transaction with Diamondback Energy (NASDAQ: FANG), acquiring water midstream assets. The deal was funded through cash on hand and borrowings from its revolving credit facility. Additionally, Rattler and Diamondback amended their commercial agreements to expand Rattler's service coverage to include more Diamondback leasehold acreage. This acquisition enhances Rattler's midstream operations in the Permian Basin, positioning it for continued development and growth.

Positive

• Acquired water midstream assets for $160 million, enhancing service capacity.
• Amended commercial agreements to include more leasehold acreage, improving operational scope.

Negative

• None.

MIDLAND, Texas, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Rattler Midstream LP (NASDAQ: RTLR) (“Rattler”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced the closing of the previously announced drop down transaction with Diamondback. Rattler, through its operating subsidiary, acquired certain water midstream assets from Diamondback for $160 million in cash, and Rattler and Diamondback amended commercial agreements covering the produced water gathering and disposal and sourced water gathering services between Rattler and Diamondback to add certain Diamondback leasehold acreage to the Rattler dedication. Rattler funded the transaction through cash on hand and borrowings under its revolving credit facility.

About Rattler Midstream LP

Rattler Midstream LP is a Delaware limited partnership formed by Diamondback Energy to own, operate, develop and acquire midstream and energy-related infrastructure assets. Rattler owns crude oil, natural gas and water-related midstream assets in the Permian Basin that provide services to Diamondback Energy and third party customers under primarily long-term, fixed-fee contracts. For more information, please visit www.rattlermidstream.com.

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 in the Permian Basin in West Texas.  For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This press release may include forward-looking statements within the meaning of the federal securities laws. Statements that do not relate strictly to historical or current facts are forward-looking. These statements contain words such as "anticipate," "if," "will" and "expect" and involve risks and uncertainties including, among others, that Rattler's business plans may change as circumstances warrant. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Rattler's prospectus and filings with the Securities and Exchange Commission (“SEC”) and Diamondback’s SEC filings, including its Forms 10-K, 10-Q and 8-K. Each of Rattler and Diamondback undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.        

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

Jared Carameros
+1 432.247.6213
jcarameros@rattlermidstream.com

FAQ

What assets did Rattler Midstream acquire from Diamondback Energy?

Rattler Midstream acquired water midstream assets valued at $160 million from Diamondback Energy.

How was the acquisition funded by Rattler Midstream?

The acquisition was funded through cash on hand and borrowings from its revolving credit facility.

What changes were made to the commercial agreements between Rattler and Diamondback?

The commercial agreements were amended to add certain Diamondback leasehold acreage to Rattler's dedication.

What is the significance of the acquisition for Rattler Midstream shareholders?

The acquisition enhances Rattler's operational capacity in the Permian Basin, potentially leading to growth in revenue and services.

Is Rattler Midstream planning any further expansions after this acquisition?

The press release does not indicate any immediate plans for further expansions beyond this acquisition.