FANG - Diamondback to buy QEP Resources in $2.2B deal

Diamondback Energy (FANG) agrees to acquire QEP Resources (QEP) in an all-stock deal valued at ~$2.2B, including QEP's $1.6B net debt as of Sept. 30.Consideration will consist of 0.05 shares of Diamondback common stock for each QEP shares, representing an implied value to each QEP stockholder of $2.29/share based on Friday's closing price.Diamondback says the deal is accretive on all relevant 2021 per share metrics including cash flow per share, free cash flow per share and leverage, before accounting for synergies, which it anticipates will total $60M-$80M/year.QEP's Q3 average production was 48.3K bbl/day, including 30.5K bbl/day in the Permian Basin.Diamondback says the pending QEP acquisition, combined with the previously announced pending purchase of assets from Guidon Operating, will bring its total leasehold interests in the Midland Basin to 276K net surface acres.

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Diamondback to buy QEP Resources in $2.2B deal