Diamondback Energy Inc has announced it has entered into a definitive purchase agreement to acquire all leasehold interests and related assets of Guidon Operating LLC exchange for 10.63 million shares of Diamondback common stock and $375 million of cash.
The cash portion of this transaction is expected to be funded through a combination of cash on hand and borrowings under the company’s credit facility.
Approximately 32,500 net acres in the Northern Midland Basin, primarily held by production allowing for capital efficient full field development.
Travis Stice, chief executive officer of Diamondback, said: “The acquisition of these assets from Guidon checks every box of Diamondback’s corporate development strategy. This deal is accretive on all relevant 2021 financial metrics, accelerates our de-leveraging and adds high quality top quartile inventory to our Midland Basin portfolio.
“As a result of this deal, Diamondback is expected to reduce capital spend on our existing assets and re-allocate a portion of that capital to high return projects on the Guidon acreage. Diamondback will not only get bigger through this transaction, but most importantly better.” For more information visit ir.diamondbackenergy.com/home