Diamondback Energy Unveils Major Stock Offering Details
Diamondback Energy Details Its Recent Stock Offering
Diamondback Energy, Inc. (NASDAQ: FANG) has recently made headlines with its announcement of a significant underwritten public offering, which involves the upsizing of common stock sales amounting to 12,770,000 shares. This initiative primarily comes from certain Legacy Endeavor Stockholders known as the Selling Stockholders. It is projected that the gross proceeds from this offering will reach an impressive $2.2 billion.
What makes this Secondary Offering especially compelling for investors and market observers alike is that Diamondback itself will not benefit directly from the proceeds of the share sales. The core of this offering will be finalized shortly, as it is anticipated to close in the near future, once all customary closing conditions are met.
Understanding the Upsizing and Its Implications
The Selling Stockholders have opted to grant the underwriters a 30-day option, which permits the purchase of an additional 1,615,500 shares. This flexibility could significantly add to the overall capital that is raised through this offering.
Additional Share Repurchase Agreement
Alongside this public offering, Diamondback has initiated a Share Repurchase strategy whereby it plans to acquire 2,000,000 shares at a price equivalent to what the underwriters pay to the Selling Stockholders. This strategic action will be funded from Diamondback's existing cash reserves and is part of their ongoing shareholder return strategy.
Role of Underwriters
In concert with these efforts, the company has engaged Evercore ISI, Citigroup, and J.P. Morgan as the joint book-running managers for the offering. Their expertise will be invaluable in navigating the complexities of this transaction.
The Foundation of the Offering
The shares that are being sold will fall under an effective automatic shelf registration statement previously submitted to the Securities and Exchange Commission (SEC). This regulatory compliance is vital for ensuring transparency and maintaining stakeholder confidence in the offerings.
About Diamondback Energy
To provide context, Diamondback Energy is an independent oil and natural gas enterprise with its base in Midland, Texas. The company is primarily focused on acquiring, developing, exploring, and exploiting unconventional onshore reserves within the Permian Basin in West Texas—an area renowned for its rich oil deposits.
Cautionary Statements on Forward-Looking Information
It’s essential to note that the announcements surrounding the offering come with inherent risks and uncertainties. While Diamondback expresses optimism about the implications of this offering for its business model and long-term strategy, actual results may vary. Potential fluctuations in anticipated outcomes highlight the need for investors to consider these factors seriously.
Investor Relations
For more inquiries about this announcement or further details, the investor relations representative for Diamondback, Adam Lawlis, is available at +1 432.221.7467 or through email at alawlis@diamondbackenergy.com. Such communication channels are crucial for maintaining transparent relationships with stakeholders.
Frequently Asked Questions
What is the purpose of Diamondback Energy's stock offering?
The stock offering aims to raise substantial funds from its Selling Stockholders, primarily to support company initiatives and shareholder interests.
Who are the underwriters for this offering?
Evercore ISI, Citigroup, and J.P. Morgan are acting as the joint book-running managers for this public offering.
Will Diamondback Energy benefit financially from the stock offering?
No, Diamondback will not receive any proceeds from the sale of shares by the Selling Stockholders.
What is the expected closing date for the stock offering?
The Secondary Offering is expected to close soon, contingent on customary closing conditions being satisfied.
How can investors get in touch for more information?
Investors can reach out to Adam Lawlis at the provided contact information to ask any questions regarding this offering or other inquiries about Diamondback Energy.
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