FANG - Diamondback Energy Inc. Announces Sale of WTG Midstream | Benzinga
MIDLAND, Texas, May 28, 2024 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ:FANG) ("Diamondback") today announced the sale of WTG Midstream Holdings LLC to Energy Transfer LP (NYSE:ET) ("ET") resulting in total pre-tax consideration net to Diamondback of approximately $375 million, subject to customary closing conditions and adjustments. Consideration for the transaction will consist of a mix of cash and ET common units. The transaction is expected to close in the third quarter of 2024.
Diamondback, through its wholly-owned subsidiary Rattler Midstream LP ("Rattler"), has owned a 25% stake in Remuda Midstream Holdings LLC ("WTG Midstream" or "WTG") since October of 2021. This sale represents ~3.5x multiple on invested capital for Diamondback. Proceeds from the transaction will be used to reduce debt associated with the pending Endeavor Energy Resources, L.P. merger.
"We would like to congratulate Stonepeak and the WTG team on this fantastic outcome," stated Travis Stice, Chairman and Chief Executive Officer of Diamondback. "Not only has our partnership generated an outsized economic return, ...