About This Deal

Diamondback Energy acquired Brigham Resources (Operating & Midstream, LLC) for ~$2.43 billion ($1.62 billion cash + 7.69 million shares [~$809.6M]), a transaction completed in February 2017, structured as cash-and-stock.

Brigham Resources (Operating & Midstream, LLC) operates in Southern Delaware Basin oil & gas exploration & production, is based in Southern Delaware Basin (Pecos & Reeves counties), West Texas. Diamondback acquired the leasehold and related assets of Brigham Resources Operating and Brigham Resources Midstream, adding 76,319 net acres in Pecos and Reeves counties in the Southern Delaware Basin and bringing total leasehold to ~182,000 net Permian acres. Consideration was $1.62 billion cash plus 7.69 million Diamondback shares (~$809.6 million). The Brigham sellers were backed by Warburg Pincus, Yorktown and Pine Brook.

Management called it a 'transformational acquisition' that doubled Tier One inventory at an attractive entry price and gave Diamondback a balanced Midland/Delaware footprint.

76,319 net Delaware acres, ~9,500 boe/d production (77% oil), 1,213 net locations, ~83% operated. Absorbed into Diamondback; established its Delaware Basin operating position

Deal Terms

Acquirer
Diamondback Energy
Target
Brigham Resources (Operating & Midstream, LLC)
Value
~$2.43 billion ($1.62 billion cash + 7.69 million shares [~$809.6M])
Date
February 2017
Type
Asset acquisition
Status
Ready

Transaction Details

Target HQ
Southern Delaware Basin (Pecos & Reeves counties), West Texas
Segment
Southern Delaware Basin oil & gas exploration & production
Structure
Cash-and-stock
Announced
December 14, 2016
Closed
February 28, 2017

In Their Words

Diamondback's pending acquisition of Brigham Resources in the Delaware Basin represents an important milestone for our company... we are creating exceptional shareholder value by doubling our Tier One inventory at an attractive entry price.Travis Stice, CEO, Diamondback Energy
This transaction represents a unique opportunity to place our Southern Delaware Basin assets in the hands of one of the premier value creators and operators in the Permian Basin.Gene Shepherd, CEO, Brigham Resources

Advisors

Advisory firms were not disclosed for this transaction.

Related Deals & Entities

Sources: Press release ↗ · SEC filing ↗

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