Summary
Diamondback Energy, Inc. (FANG) announced on September 3, 2013, the signing of a material definitive agreement to acquire mineral rights in Midland County, Texas. This strategic acquisition targets approximately 15,000 gross (12,500 net) acres within the prolific Permian Basin, a region where FANG already operates on a significant portion of the prospective land. The purchase price is set at $440.0 million, subject to customary adjustments, and the company anticipates closing the transaction by the end of September 2013, pending due diligence and other closing conditions. This move represents a significant expansion of FANG's acreage in a core operating area, aiming to bolster its long-term production and reserve potential. Investors should note that the acquisition is subject to the satisfaction of closing conditions, and the company has provided an operational update alongside the announcement. The filing details the Purchase and Sale Agreement with IBEX Mineral Resources, LLC and Beehive Partners, LLC.
Key Highlights
- 1Entry into a Material Definitive Agreement to acquire mineral rights in Midland County, Texas.
- 2Acquisition of approximately 15,000 gross (12,500 net) acres in the Permian Basin.
- 3Purchase price of $440.0 million, subject to adjustments.
- 4FANG is the operator of nearly half of the acreage associated with these mineral rights.
- 5Expected closing by the end of September 2013, contingent on due diligence and closing conditions.
- 6Announcement accompanied by an operational update and filed on September 3, 2013.
- 7The agreement was entered into on August 28, 2013, with IBEX Mineral Resources, LLC and Beehive Partners, LLC.