8-KMaterial AgreementsFinancial EventsOther Events+1

Diamondback Energy, Inc. 8-K Report, Material Agreement (Dec 13, 2022)

Filed December 13, 2022For Securities:FANG

Summary

Diamondback Energy, Inc. (FANG) has filed an 8-K report on December 13, 2022, to announce the completion of its underwritten public offering of $650 million aggregate principal amount of 6.250% Notes due 2053. This issuance, referred to as the New Notes Offering, was made under a shelf registration statement previously filed with the SEC. The New Notes are general unsecured senior obligations of the company, ranking equally with existing senior indebtedness and senior to subordinated debt. They are guaranteed on a senior unsecured basis by Diamondback E&P LLC.

Key Highlights

  • 1Completion of a $650 million public offering of 6.250% Notes due 2053 (the "New Notes").
  • 2The New Notes were issued on December 13, 2022.
  • 3The offering was conducted under a previously filed shelf registration statement.
  • 4The New Notes are general unsecured senior obligations of Diamondback Energy.
  • 5The New Notes rank equally with existing and future senior indebtedness of the company.
  • 6Diamondback E&P LLC provides a full and unconditional senior unsecured guarantee for the New Notes.
  • 7The Indenture includes customary covenants related to liens and mergers/consolidations.

Frequently Asked Questions

This 8-K filing announces the completion of Diamondback Energy's public offering of $650 million of new senior unsecured notes due in 2053 and provides details regarding the material definitive agreement for these notes.

The new notes have a principal amount of $650,000,000 with a coupon rate of 6.250% and mature in 2053. They are general unsecured senior obligations of Diamondback Energy, guaranteed by Diamondback E&P LLC.

The New Notes rank equally with the company's existing and future senior indebtedness and are senior to any future subordinated debt. However, they are effectively subordinated to any existing or future secured indebtedness and structurally subordinated to the debt of subsidiaries that are not guarantors.

Yes, the Indenture contains customary covenants that limit the company's ability and its subsidiaries' ability to incur liens securing funded indebtedness and to consolidate, merge, or sell substantially all of its assets.