Summary
Diamondback Energy, Inc. (FANG) announced the closing of a significant asset acquisition on September 19, 2013, involving mineral rights underlying approximately 15,000 gross (12,500 net) acres in Midland County, Texas. This strategic move expands FANG's footprint in the highly prospective Permian Basin. The acquisition was funded through the proceeds of a successful 7.625% Senior Notes offering due 2021, which closed just prior to the asset purchase. This indicates prudent financial management and a clear strategy to enhance asset base through carefully structured debt financing.
Key Highlights
- 1Completion of acquisition of mineral rights in Midland County, Texas, covering 15,000 gross (12,500 net) acres.
- 2The acquired acreage is located in the prolific Permian Basin.
- 3The transaction was a cash purchase for $440.0 million.
- 4The acquisition was funded by the net proceeds from a 7.625% Senior Notes offering due 2021.
- 5Diamondback Energy, Inc. will operate on nearly half of the acreage where the mineral rights were acquired.
- 6Financial statements and pro forma information related to the acquisition will be filed in a future amendment.