Diamondback Energy is offering senior notes totaling, in the aggregate, $5.5 billion as the company looks to pay for part of its $26 billion merger with Endeavor Energy.
The senior notes vary in price, maturity dates and interest rates. The notes interest rates range from 5.15% to 5.9% and mature between 2027 and 2064.
For the 2027 notes, the price to the public is 99.956% of the principal amount; for the 2030 notes, 99.830% of the principal amount; for the 2034 notes, 99.679% of the principal amount; for the 2054 notes, 99.957% of the principal amount; and for the 2064 notes, 99.954% of the principal amount.
Diamondback said it intends to use the net proceeds from the offer for general corporate purposes, including, paying a portion of the cash consideration for the pending acquisition of Endeavor and repaying debt owed by Endeavor and/or its subsidiaries.
The notes offering is expected to close on April 18, subject to customary closing conditions.
Citigroup Global Markets Inc., BofA Securities, Inc. and TD Securities (USA) LLC have served as joint book-running managers for the notes offering.
Recommended Reading
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
NAPE: Turning Orphan Wells From a Hot Mess Into a Hot Opportunity
2024-02-09 - Certain orphaned wells across the U.S. could be plugged to earn carbon credits.
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
The OGInterview: How do Woodside's Growth Projects Fit into its Portfolio?
2024-04-01 - Woodside Energy CEO Meg O'Neill discusses the company's current growth projects across the globe and the impact they will have on the company's future with Hart Energy's Pietro Pitts.