London, 13 February 2024, (Oilandgaspress): – Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) and Endeavor Energy Resources, L.P. (“Endeavor”), today announced that they have entered into a definitive merger agreement under which Diamondback and Endeavor will merge in a transaction valued at approximately $26 billion, inclusive of Endeavor’s net debt. The combination will create a premier Permian independent operator.
The transaction consideration will consist of approximately 117.3 million shares of Diamondback common stock and $8 billion of cash, subject to customary adjustments. The cash portion of the consideration 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. As result of the transaction, the Company’s existing stockholders are expected to own approximately 60.5% of the combined company and Endeavor’s equity holders are expected to own approximately 39.5% of the combined company.
The transaction was unanimously approved by the Board of Directors of the Company and has all necessary Endeavor approvals.
Strategic and Financial Benefits
Combined pro forma scale of approximately 838,000 net acres and 816 MBOE/d of net production
Best in-class inventory depth and quality with approximately 6,100 pro forma locations with break evens at <$40 WTI
Annual synergies of $550 million representing over $3.0 billion in NPV10 over the next decade
Capital and operating cost synergies: approximately $325 million
Capital allocation and land synergies: approximately $150 million
Financial and corporate cost synergies: approximately $75 million
Substantial near and long-term financial accretion with ~10% free cash flow per share accretion expected in 2025
Stock-weighted transaction solidifies investment grade balance sheet
Advances leading ESG profile
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