Diamondback to draw on revolver to fund Permian Basin purchase

By Tali Rackner

Norfolk, Va., July 21 – Diamondback Energy, Inc. plans to use borrowings under its revolving credit facility to fund the pending acquisition of some leasehold interests in about 16,773 gross (13,136 net) acres in the Permian Basin, according to a 424B5 filing with the Securities and Exchange Commission.

The company will also use proceeds from a stock offering to fund the acquisition.

On Monday, the company entered into a definitive purchase agreement with unrelated third-party sellers to acquire the additional leasehold interests for an aggregate purchase price of about $538 million.

Diamondback is a Midland, Texas-based independent oil and natural gas company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.