Diamondback Energy to Acquire Lario Permian for $1.55 Billion
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Diamondback Energy has entered into a definitive purchase agreement to acquire all leasehold interest and related assets of Lario Permian, a wholly owned subsidiary of Lario Oil & Gas Company, and certain associated sellers in exchange for 4.18 million shares of Diamondback common stock and $850 million of cash.
“Lario is an attractive bolt-on to our existing Martin County position, home to some of the best rock in the Permian Basin,” said Travis Stice, chairman and chief executive officer of Diamondback.
“This is a deal that checks all the boxes Diamondback looks for in an acquisition, as it brings over 150 gross locations in the core of the Northern Midland Basin and also provides immediate accretion to all relevant financial metrics, enhancing Diamondback’s overall value proposition to our stockholders,” added Stice.
“When combined with our pending FireBird acquisition, we will grow our Midland Basin footprint by approximately 83,000 net acres, add 500 high quality drilling opportunities that compete for capital with our current development plan and increase our 2023 production profile by approximately 37 MBo/d (50 MBoe/d). Our enhanced size and scale in the Midland Basin, along with our low-cost operations, puts us in an advantageous position to deliver differentiated near-term and long-term returns to our stockholders,” concluded Stice.
Diamondback expects this transaction, which is subject to customary closing conditions and adjustments, to close on January 31, 2023.
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.
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