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.
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 per share in 2025.
Diamondback’s Board of Directors raised a 7% increase to its base dividend to $3.60 per share annually ...