Diamondback Energy Inc. (NASDAQ: FANG) closed its equity offering launched to fund its entry into the Delaware Basin, Raymond James said July 21.
Raymond James Energy Investment Banking has completed eight transactions for Diamondback since its 2012 IPO, helping the company raise a total of $2.135 billion, the release said.
In its most recent offering, Diamondback sold 5.5 million shares with a 825,000 share greenshoe. Including the follow-on offering, the company's proceeds totaled $564.5 million.
RELATED: Diamondback Pays Top Dollar In Delaware Deal
Diamondback said it will use the proceeds, together with cash on hand, to foot the $560 million bill from its recent Delaware Basin acquisition.
On July 13, the company said it entered a definitive agreement to buy leasehold interests and related assets primarily in Reeves and Ward counties, Texas, from Luxe Energy LLC. The deal, expected to close in September, will add roughly 19,000 net acres to Diamondback's Midland Basin-centric portfolio.
The company said it also plans to use any proceeds from the offering's greenshoe to purchase additional shares, fund E&P activities and for general corporate purposes.
Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and J.P. Morgan were joint book-running managers for the equity offering.
Recommended Reading
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
Private Equity: Seeking ‘Scottie Pippen’ Plays, If Not Another Michael Jordan
2024-01-25 - The Permian’s Tier 1 acreage opportunities for startup E&Ps are dwindling. Investors are beginning to look elsewhere.
Some Payne, But Mostly Gain for H&P in Q4 2023
2024-01-31 - Helmerich & Payne’s revenue grew internationally and in North America but declined in the Gulf of Mexico compared to the previous quarter.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.