About This Deal

Diamondback Energy acquired Lario Permian, LLC (Lario Oil & Gas Company) for ~$1.45 billion (4.33 million shares [~$633M] + $814 million cash), a transaction completed in January 2023, structured as cash-and-stock.

Lario Permian, LLC (Lario Oil & Gas Company) operates in Midland Basin oil & gas exploration & production, is based in Midland Basin, West Texas. Diamondback acquired the leasehold and related assets of Lario Permian, a subsidiary of Lario Oil & Gas Company, and certain associated sellers, adding roughly 25,000 gross (16,000 net) Midland Basin acres. Consideration was 4.33 million Diamondback shares (~$633 million) plus $814 million cash, with ~$113 million of the cash placed in an indemnity holdback escrow.

Part of Diamondback's continued Midland Basin consolidation; disclosed alongside the FireBird acquisition as the 'FireBird and Lario Acquisitions.' Only a partial announcement date is known (early January 2023); the deal closed January 31, 2023.

~16,000 net Midland acres contiguous with Diamondback's development footprint. Absorbed into Diamondback's Midland Basin operations

Deal Terms

Acquirer
Diamondback Energy
Target
Lario Permian, LLC (Lario Oil & Gas Company)
Value
~$1.45 billion (4.33 million shares [~$633M] + $814 million cash)
Date
January 2023
Type
Asset acquisition
Status
Ready

Transaction Details

Target HQ
Midland Basin, West Texas
Segment
Midland Basin oil & gas exploration & production
Structure
Cash-and-stock
Announced
January 1, 2023
Closed
January 31, 2023

Advisors

Advisory firms were not disclosed for this transaction.

Related Deals & Entities

Sources: Press release ↗ · SEC filing ↗

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