Sep. 29, 2014, 12:26 PM
- Encana’s (ECA +2.3%) takeover of Athlon Energy (ATHL +24.6%) is good news for Diamondback Energy (FANG +2.3%) and Energen (EGN +2.2%), according to analysts at Sterne Agee.
- The acquisition implies a value of $98/share for FANG, Sterne says, based on FANG's 85K net acre leasehold position, estimated 19.8K boe/day of Q3 production, $585M of assumed debt, and a $1.7B market value for the Viper Energy Partners (NASDAQ:VNOM) units it owns.
- The firm sees even more upside for EGN, as ECA’s price implies a value of $102/share for EGN, based on 180K net acres across both sides of the Permian Basin, 48K boe/day of Q3 Permian Basin production, 132M cfe/day of Q3 San Juan Basin, and $835M of pro forma net debt as of Sept. 30.
- Permian producers Laredo Petroleum (LPI +5%), Parsley Energy (PE +5%) and RSP Permian (RSPP +4.8%) also are higher following the acquisition news.
Jul. 21, 2014, 8:24 AM
- Diamondback Energy (NASDAQ:FANG) -1.9% premarket agrees to acquire leasehold interests in Texas' Midland Basin from unnamed sellers for a combined $538M.
- FANG says the acquisition includes 14,773 gross acres with net production of ~2,173 boe/day in May from 131 gross producing wells; net proved reserves are ~5.2M boe; FANG expects the deal to add 13,136 net acres to its total position in the Midland Basin, increasing it to more than 85K net acres.
- To fund the deal, FANG plans to launch of a public offering of 5M common shares; the underwriters will have an option to purchase up to an additional 750K shares.
- FANG also raises its projected FY 2014 daily production by another 1K to a new range of 17K-19K boe/day, not including any volumes from the Midlands Basin purchase.
Sep. 3, 2013, 4:45 PM
- Diamondback Energy (FANG) agrees to acquire Midland County, Tex., mineral interests from an unidentified third party for ~$440M; more than half of the minerals already are operated by FANG.
- In an operations update, FANG says its first operated Andrews County horizontal well produced at a peak IP rate of 613 boe/day (85% oil) and has averaged 585 boe/day over the last seven days.
- Shares -0.5% AH.
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Diamondback Energy Inc is an independent oil and natural gas company. It is currently engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
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