Diamondback said it and its wholly owned subsidiary Diamondback E&P LLC entered into a definitive securities purchase agreement on February 14, 2025 with Double Eagle IV Midco, LLC. The consideration is $3.0 billion in cash and approximately 6.9 million shares of common stock, subject to customary adjustments.

1. 01

   Diamondback said it and its wholly owned subsidiary Diamondback E&P LLC entered into a definitive securities purchase agreement on February 14, 2025 with Double Eagle IV Midco, LLC. The consideration is $3.0 billion in cash and approximately 6.9 million shares of common stock, subject to customary adjustments.

2. 02

   The company said it expects to fund the cash portion through cash on hand, borrowings under its credit facility and/or proceeds from term loans and senior notes offerings. The transaction is expected to close on April 1, 2025, subject to customary closing conditions and regulatory approval.

3. 03

   The company said the target asset covers approximately 40,000 net acres in the core of the Midland Basin, with estimated run-rate production of approximately 27 MBo/d (69% oil). It said 68% of the asset is undeveloped, with an estimated 407 gross (342 net) horizontal locations.

4. 04

   Diamondback said it will sell at least $1.5 billion of non-core assets to reduce pro forma debt. It said it expects to reduce net debt to $10 billion and to maintain leverage of $6 billion to $8 billion over the long term.

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