Diamondback Energy acquired QEP Resources, Inc. for ~$2.2 billion (all-stock, including ~$1.6 billion QEP net debt), a transaction completed in March 2021, structured as all-stock. The deal was a Merger.
QEP Resources, Inc. operates in Permian Basin (Midland) oil & gas exploration & production, is based in Midland Basin (core); Williston Basin (non-core, later divested). Diamondback acquired QEP Resources in an all-stock merger, with each QEP share converting into 0.050 of a Diamondback share (implied ~$2.29 per QEP share). The deal added roughly 49,000 net Midland Basin acres held by production. QEP's non-core Williston Basin assets were designated for divestiture and sold in October 2021. Equity consideration was ~$987 million; enterprise value ~$2.2 billion including assumed debt.
Management said QEP 'checks every box' of its corporate-development strategy - accretive on all 2021 per-share metrics with $60-80 million of tangible annual synergies, concentrating capital in the Northern Midland Basin.
~49,000 net Midland acres held by production; Q3 2020 production 48.3 MBO/d; adjacency enabling longer laterals. At least $60-80 million in annual synergies (G&A, cost of capital, capital efficiency) QEP merged into Diamondback; Williston assets divested Oct 2021
The acquisition of QEP also checks every box of Diamondback's corporate development strategy... the addition of this Tier-1 resource competes for capital right away in Diamondback's current portfolio, and we will now be able to allocate most of our capital to the high-returning Midland Basin.Travis Stice, CEO, Diamondback Energy
Advisory firms were not disclosed for this transaction.