(Source: Diamondback Energy, Shutterstock.com)
Diamondback Energy Inc. closed on its approximately $4.1 billion cash-and-stock deal to buy EnCap Investments-backed Double Eagle IV, the E&P said April 1.
Diamondback paid $3 billion in cash and approximately 6.9 million shares of common stock for the interests in Double Eagle, according to the deal’s first announcement on Feb. 18. Diamondback stock closed Feb. 14 at $156.99 per share.
The deal to buy the equity interest of certain Midland Basin subsidiaries from Double Eagle IV Midco LLC adds approximately 40,000 net acres in the Midland Basin to its portfolio. The assets have an estimated production of about 27,000 bbl/d (69% oil).
“This high-quality asset base is a natural fit with Diamondback, the leading public operator in the Midland Basin, and we are excited to be a significant shareholder going forward,” said Kyle Kafka, partner of EnCap, in February.
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RBC Capital Markets, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC served as financial advisers to Double Eagle. Vinson & Elkins LLP served as legal adviser.
TPH&Co., the energy business of Perella Weinberg Partners, acted as financial adviser and Kirkland & Ellis as legal adviser to Diamondback.
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