Diamondback Energy prices $1.2 billion senior notes offering for general corporate purposes, including an acquisition.
Quiver AI Summary
Diamondback Energy, Inc. announced the pricing of a $1.2 billion offering of 5.550% senior notes, set to mature on April 1, 2035. The notes will be sold at 99.937% of their principal amount, with proceeds intended for general corporate purposes, including financing a portion of the acquisition of subsidiaries from Double Eagle IV Midco, LLC. The offering is expected to close on March 20, 2025, subject to standard conditions, and will be conducted under an existing shelf registration statement with the SEC. BofA Securities, Barclays Capital, PNC Capital Markets, and TD Securities are the joint book-running managers for the issue. Additional details on obtaining the prospectus will be provided, and the press release includes forward-looking statements regarding the timing and outcome of the offering.
Potential Positives
- Diamondback Energy successfully priced a significant offering of $1.2 billion in senior notes, indicating strong market confidence and potential for financial stability.
- The proceeds from the Notes Offering are intended for general corporate purposes, including funding a pending acquisition, which may enhance Diamondback's growth and operational capacity in the long term.
- The offering is set to close shortly, reflecting Diamondback's ability to execute timely financial strategies to capitalize on market opportunities.
Potential Negatives
- The offering of $1.2 billion in senior notes may indicate a need for additional capital to fund acquisitions, potentially signaling financial stress or overextension.
- The interest rate of 5.550% on the senior notes may reflect higher borrowing costs, which could impact future profitability and cash flow management.
- The reliance on the notes offering to finance an acquisition raises concerns about the sustainability of the company's growth strategy and could lead to increased debt levels.
FAQ
What is the purpose of Diamondback Energy's Notes Offering?
Diamondback intends to use the proceeds for general corporate purposes, including funding an acquisition and related expenses.
When is the expected closing date for the Notes Offering?
The Notes Offering is expected to close on March 20, 2025, subject to customary closing conditions.
What is the maturity date of the senior notes?
The senior notes will mature on April 1, 2035.
Who are the joint book-running managers for the Notes Offering?
BofA Securities, Barclays Capital, PNC Capital Markets, and TD Securities are the joint book-running managers.
Where can I obtain the prospectus for the Notes Offering?
The prospectus can be obtained from the joint book-running managers and will also be available on the SEC's website.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
MIDLAND, Texas, March 06, 2025 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) announced today that it has priced an offering (the “Notes Offering”) of $1,200,000,000 in aggregate principal amount of 5.550% senior notes that will mature on April 1, 2035 (the “Notes”). The price to the public is 99.937% of the principal amount of the Notes.
Diamondback intends to use the net proceeds from the Notes Offering for general corporate purposes, including, without limitation, paying a portion of the cash consideration for the pending acquisition of certain subsidiaries of Double Eagle IV Midco, LLC and paying fees, costs and expenses related thereto. The Notes Offering is expected to close on March 20, 2025, subject to customary closing conditions.
The Notes will be sold in a registered offering pursuant to an effective shelf registration statement on Form S-3ASR that was previously filed with the Securities and Exchange Commission, a prospectus supplement and related base prospectus for the Notes Offering.
BofA Securities, Inc., Barclays Capital Inc., PNC Capital Markets LLC and TD Securities (USA) LLC have served as joint book-running managers for the Notes Offering. When available, copies of the prospectus supplement and related base prospectus for the Notes Offering may be obtained from BofA Securities, Inc. at NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, by email to [email protected] and toll free at 1-800-294-1322; Barclays Capital Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email to [email protected] and toll free at 1-888-603-5847; PNC Capital Markets LLC at 300 Fifth Avenue, 10th Floor, Pittsburgh, PA 15222, by email to [email protected] and toll free at 1-855-881-0697 and TD Securities (USA) LLC at 1 Vanderbilt Avenue, 11th Floor, New York, NY 10017 and toll free at 1-855-495-9846. Electronic copies of the prospectus supplement and related base prospectus for the Notes Offering will also be available on the website of the Securities and Exchange Commission at www.sec.gov.
This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Notes Offering may only be made by means of a prospectus supplement and related base prospectus.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including those relating to the expected timing of the closing of the Notes Offering. All statements, other than historical facts, that address activities that Diamondback assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Diamondback. Information concerning these risks and other factors can be found in Diamondback’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q, 8-K, the preliminary prospectus supplement filed by Diamondback for the Notes Offering and any amendments or supplements thereto, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov. Diamondback undertakes no obligation to update or revise any forward-looking statement.
Investor Contact:
Adam Lawlis
+1 432.221.7467
[email protected]
Source: Diamondback Energy, Inc.
