Summary
Diamondback Energy, Inc. (FANG) has filed an 8-K report detailing the termination of a material definitive agreement related to its subsidiary Rattler Midstream LP's 5.625% Senior Notes due 2025. The company successfully redeemed all outstanding Rattler Notes, totaling approximately $500 million in principal, on November 1, 2022. This redemption was contingent upon the successful completion of Diamondback's own debt offering and satisfactory intercompany fund transfers. The redemption was funded by a portion of the net proceeds from Diamondback's recently completed $1.1 billion offering of 6.250% Senior Notes due 2033. Furthermore, the 8-K announces that Diamondback released its third-quarter 2022 financial and operating results on November 7, 2022. This release, attached as an exhibit, also included the declaration of its third-quarter base and variable cash dividends, signaling continued capital returns to shareholders. The redemption of the Rattler Notes effectively removes this debt obligation from Rattler Midstream and strengthens Diamondback's balance sheet by refinancing its debt at a different interest rate and maturity.
Key Highlights
- 1Diamondback Energy successfully redeemed all $500 million in outstanding Rattler Midstream LP 5.625% Senior Notes due 2025.
- 2The redemption was completed on November 1, 2022, for a total payment of approximately $522 million.
- 3Funding for the redemption came from proceeds of Diamondback's $1.1 billion offering of 6.250% Senior Notes due 2033.
- 4The completion of the Rattler Notes redemption signifies the termination of this material definitive agreement.
- 5Diamondback Energy announced its third-quarter 2022 financial and operating results on November 7, 2022.
- 6The company also announced its third-quarter 2022 base and variable cash dividends in conjunction with the earnings release.