Diamondback Energy announced that it has entered into a definitive purchase agreement to acquire certain subsidiaries of Double Eagle IV Midco in exchange for approximately 6.9 million shares of Diamondback common stock and $3 billion of cash, subject to customary adjustments.
Diamondback is also committing to sell at least $1.5 billion of non-core assets to accelerate pro forma debt reduction in order to maintain its strong balance sheet. Diamondback expects to reduce net debt to $10 billion and, long term, maintain leverage of $6 billion to $8 billion.
RBC acted as financial advisor to Double Eagle on its sale to Diamondback.
