Summary
Diamondback Energy, Inc. (FANG) announced the successful closing of its "West Texas Acquisition" on September 9, 2014, for an adjusted purchase price of $523.6 million. This strategic acquisition, involving approximately 17,617 gross acres in key Permian Basin counties (Midland, Glasscock, Reagan, and Upton), significantly expands FANG's operational footprint. The acquired properties contribute approximately 2,333 BOE/d (65% oil) in net production and an estimated 5,073 MBOE of net proved reserves as of June 1, 2014. The financing for this acquisition was primarily funded through the net proceeds from a common stock offering completed on July 25, 2014, and borrowings under the company's revolving credit facility. Diamondback Energy now operates about 88% of the newly acquired acreage, positioning the company for enhanced operational control and synergy realization in the prolific Permian Basin. Detailed financial statements and pro forma information related to this acquisition are filed as exhibits to this report.
Key Highlights
- 1Closed acquisition of West Texas properties for an adjusted price of $523.6 million on September 9, 2014.
- 2Acquisition includes approximately 17,617 gross (12,967 net) acres in Midland, Glasscock, Reagan, and Upton Counties, Texas (Permian Basin).
- 3Acquired properties add approximately 2,333 BOE/d (65% oil) of net production.
- 4Estimated net proved reserves of 5,073 MBOE as of June 1, 2014, associated with the acquired assets.
- 5Acquisition financed through proceeds from a July 25, 2014, stock offering and revolving credit facility borrowings.
- 6Diamondback Energy now operates approximately 88% of the acquired acreage.
- 7Filing includes statements of revenues, direct operating expenses, and pro forma financial information for the acquired assets.