Diamondback Energy Announces Major Acquisition of Double Eagle Subsidiaries for $3 Billion in Cash and Shares
Published / Modified Feb 18 2025
CSIMarket Team / CSIMarket.com
Breaking News
MIDLAND, Texas, Feb.
18, 2025 ? Diamondback Energy, Inc.
(NASDAQ: FANG) has announced a strategic move to enhance its portfolio in the oil and gas industry by entering a definitive purchase agreement to acquire certain subsidiaries of Double Eagle IV Midco, LLC.
The acquisition, referred to as the Double Eagle Acquisition, involves a transaction valued at approximately $3 billion in cash and 6.9 million shares of Diamondback's common stock, subject to customary adjustments.
The cash portion of the deal is expected to be funded through a combination of Diamondback's existing cash reserves, borrowings from its credit facility, and potential proceeds from term loans and senior notes offerings.
This move is seen as a significant step for Diamondback as it aims to bolster its operational capabilities and expand its market presence.
As of the latest trading session, Diamondback Energy's share price stands at $150.2, reflecting a year-to-date performance decline of 15.99%. The investment community will be keenly watching how this acquisition will impact Diamondback's financial performance and stock price in the coming months.
In a related announcement, Diamondback Energy is set to reveal a leadership transition plan on February 20, 2025, alongside updates regarding its executive team and board of directors.
This development may signal a shift in strategy and governance within the company, emphasizing the importance of leadership during this significant expansion phase.
As the oil and gas market continues to evolve, Diamondback Energy's latest acquisition and impending leadership changes highlight the company's proactive approach to adapting to industry dynamics and pursuing growth opportunities.
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