Diamondback Energy acquired Energen Corporation for ~$9.2 billion (all-stock, including ~$830 million Energen net debt), a transaction completed in November 2018, structured as all-stock. The deal was a Merger.
Energen Corporation operates in Permian Basin (Midland & Delaware) oil & gas exploration & production, is based in Permian Basin (Midland & Delaware); Energen headquartered in Birmingham, Alabama. Diamondback merged with Alabama-based Energen Corporation in an all-stock deal that management called the creation of the premier large-cap Permian independent. Each Energen share converted into 0.6442 Diamondback shares (implied ~$84.95 per share); Diamondback issued ~62.8 million shares valued at ~$7.1 billion in equity. The combination pushed Diamondback to ~390,000 net acres across the Midland and Delaware basins.
Management described a transformational combination creating the premier large-cap Permian independent, with primary synergies estimated at $2.0 billion+ NPV from well-cost savings, G&A reduction and a lower cost of capital.
Added 266,000+ net Tier One Permian acres (+57%) and 7,000+ net horizontal locations; combined production 222+ MBOE/d. Primary synergies ~$2.0 billion NPV (well-cost savings, $30-40M/yr G&A, lower cost of capital); secondary synergies $1.0 billion+ NPV Energen merged into Diamondback via Sidewinder Merger Sub; Energen ceased to exist as a public company
This transaction represents a transformational moment for both Diamondback and Energen shareholders as they are set to benefit from owning the premier large cap Permian independent with industry leading production growth, operating efficiency, margins and capital productivity.Travis Stice, Chairman & CEO, Diamondback Energy
Advisory firms were not disclosed for this transaction.