Diamondback Energy acquired FireBird Energy LLC for ~$1.66 billion (5.92 million shares [~$876M] + $787 million cash), a transaction completed in November 2022, structured as cash-and-stock.
FireBird Energy LLC operates in Midland Basin oil & gas exploration & production, is based in Midland Basin, West Texas. Diamondback acquired the leasehold and related assets of FireBird Energy, adding roughly 75,000 gross (68,000 net) highly contiguous Midland Basin acres and about 854 gross producing wells. Announced at 5.86 million shares plus $775 million cash; closed at 5.92 million shares (~$876 million) plus $787 million cash.
Management called it a bolt-on adding 'significant, high-quality inventory right in our backyard' - over a decade of inventory at development pace, accretive on all 2023-2024 metrics and leverage-neutral.
~68,000 contiguous net acres, 98.5% operated; valued ~3x 2023 EBITDA with 15% FCF yield. Leverage-neutral; paired with a target to sell $500M non-core assets by year-end 2023 Absorbed into Diamondback's Midland Basin operations
This bolt-on acquisition adds significant, high-quality inventory right in our backyard. With over 350 locations adjacent to our current Midland Basin position, this asset adds more than a decade of inventory at our anticipated development pace.Travis Stice, Chairman & CEO, Diamondback Energy
Advisory firms were not disclosed for this transaction.