Diamondback Energy Inc. (FANG) said May 8 it will launch an underwritten public offering of 3 million shares of common stock to pay for its purchase of acreage in the Midland Basin.

The offering could generate up to $255 million.

Since January 2015, the company has acquired or entered into definitive purchase agreements in Howard County, Texas, totaling about $437.8 million. The company plans to acquire 11,948 net acres with 232 locations in the Wolfcamp B, Wolfcamp A and Lower Spraberry horizons.

The underwriter will have an option to purchase up to an additional 450,000 shares of common stock from Diamondback. Credit Suisse Securities (USA) LLC is acting as sole book-running manager for the offering.

Diamondback intends to use any remaining net proceeds to repay borrowings under its revolving credit facility, fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions and working capital.

The company’s Midland Basin deals are expected to close by the end of June and will increase the company’s interest in the basin to 89,216 net acres.