Diamondback Energy (NASDAQ: FANG) on Feb. 18 announced that it signed an agreement to acquire certain subsidiaries of Double Eagle IV Midco.
The deal includes approximately 6.9 million shares of Diamondback common stock and $3 billion of cash, subject to customary adjustments. The cash portion is expected to be funded through a combination of cash on hand, borrowings under the company’s credit facility and/or proceeds from term loans and senior notes offerings, according to the company.
As part of the agreement, Diamondback and Double Eagle also agreed to accelerate development on a portion of Diamondback’s non-core southern Midland Basin acreage.
Diamondback expects the transaction to close on April 1, 2025, subject to the satisfaction of customary closing conditions and regulatory approval.
TPH&Co, the energy business of Perella Weinberg Partners, is serving as financial advisor to Diamondback. Kirkland & Ellis LLP is acting as legal advisor to Diamondback.
RBC Capital Markets, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as financial advisors to Double Eagle. Vinson & Elkins LLP is acting as legal advisor to Double Eagle.