Diamondback Energy Inc (NASDAQ:FANG) disclosed a definitive merger deal with Endeavor Energy Resources, L.P. for around $26 billion, inclusive of Endeavor’s net debt.
In particular, the transaction comprises around 117.3 million shares of Diamondback common stock and $8 billion of cash, subject to customary adjustments.
Diamondback Energy plans to fund the cash portion of the consideration through a combination of cash in hand, borrowings under its credit facility, and proceeds from term loans and senior notes offerings.
Consequently, the company’s existing stockholders are expected to own about 60.5% of the combined company, and Endeavor’s equity holders rest of the company.
The transaction, unanimously approved by the Board of Directors of Diamondback and Endeavor, will create a premier Permian independent operator.
The combined company will have a pro forma scale of around 838,000 net acres and 816 MBOE/d of net production and high inventory depth and quality with about 6,100 pro forma locations with break evens at <$40 WTI.
Synergies: The deal will offer annual synergies of $550 million representing over $3.0 billion in NPV10 over the next decade, and expects accretion of ~10% free cash flow ...