About This Deal

Diamondback Energy acquired Ajax Resources, LLC for ~$1.25 billion ($900 million cash + 2.58 million Diamondback shares), a transaction completed in October 2018, structured as cash-and-stock.

Ajax Resources, LLC operates in Northern Midland Basin oil & gas exploration & production, is based in Northern Midland Basin, West Texas. Diamondback acquired the leasehold and related assets of Ajax Resources, adding approximately 25,493 net leasehold acres in the Northern Midland Basin. Consideration was $900 million cash plus about 2.58 million Diamondback shares (roughly 0.5 million placed in an indemnity escrow). Announced alongside Q2 2018 results and effective July 1, 2018.

An acreage-consolidating bolt-on funded partly by proceeds from a mineral drop-down to Viper Energy Partners and a senior note offering.

~25,493 net acres extending the core Midland position. Absorbed into Diamondback's Midland Basin operations

Deal Terms

Acquirer
Diamondback Energy
Target
Ajax Resources, LLC
Value
~$1.25 billion ($900 million cash + 2.58 million Diamondback shares)
Date
October 2018
Type
Asset acquisition
Status
Ready

Transaction Details

Target HQ
Northern Midland Basin, West Texas
Segment
Northern Midland Basin oil & gas exploration & production
Structure
Cash-and-stock
Announced
August 8, 2018
Closed
October 31, 2018

Advisors

Advisory firms were not disclosed for this transaction.

Related Deals & Entities

Sources: Press release ↗ · SEC filing ↗

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