Diamondback Energy Completes $575.2 Million Merger with Rattler Midstream
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Diamondback Energy completed the previously announced merger between Rattler and Diamondback in a $575.2 million roll-up of the Midland, Texas-based independent oil and gas producer’s midstream subsidiary.
Rattler Midstream is a Delaware limited partnership formed in July 2018 by Diamondback Energy to own, operate, develop and acquire midstream and energy-related infrastructure assets in the Midland and Delaware basins of the Permian, where Diamondback is focused.
Diamondback Energy announced an agreement in May to acquire all the publicly held common units it doesn’t already own in Rattler Midstream, roughly three years after Diamondback took its midstream subsidiary public.
“The energy landscape has transformed dramatically since Rattler was taken public in 2019, and we believe this agreement to merge companies is in the best interests of both Diamondback and Rattler stakeholders,” Travis Stice, CEO of Diamondback and of the general partner of Rattler, commented in a company release on May 16.
Diamondback launched the IPO for its midstream subsidiary in May 2019. Rattler’s primary assets span water infrastructure, oil gathering, equity stakes in gas gathering and processing, and equity stakes in long-haul oil and NGL pipelines across the Permian Basin.
“This merger will allow both companies to benefit from the simplicity and scale of the combined entity going forward,” Stice added in the May release.
The merger completed on Aug. 24 resulted in Diamondback acquiring all of the limited partner interests in Rattler not already owned by Diamondback and its subsidiaries. Each public unitholder of Rattler received 0.113 of a share of common stock in Diamondback in exchange for each Rattler common unit owned.
Diamondback already owns about 74 percent of the roughly 145.96 million units outstanding for Rattler, leaving a balance of 38.1 million common units balance, according to a note by Tudor, Pickering, Holt & Co. (TPH).
Source: Hart Energy
About Diamondback Energy
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
To stop by Diamondback’s website, CLICK HERE
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