Diamondback Energy has completed its previously announced acquisition of all leasehold interests and related assets of FireBird Energy
Transaction Highlights
- Valued at approximately 3x 2023 EBITDA with a 15% Free Cash Flow Yield at strip pricing
- Immediately accretive to all relevant 2023 and 2024 financial metrics including Cash Flow per share, Free Cash Flow per share and NAV per share
- Increases expected pro forma 2023 per share cash returned to stockholders by approximately 3%
- Extends pro forma inventory life in primary development zones
- Leverage neutral
Asset Highlights: Building Scale in the Midland Basin
- Approximately 75,000 gross (68,000 net) highly contiguous acres in the Midland Basin
- Estimated production at closing of approximately 17 MBo/d (22 MBoe/d)
- 2023 estimated average production of approximately 19 MBo/d (25 MBoe/d)
- 2023 oil production can be maintained for multiple years with one rig running; Diamondback expects to reduce operated rig count from three currently to one post-closing for 2023 development
- 353 estimated gross (316 net) horizontal locations in primary development targets with an average lateral length of approximately 11,400’; 84 gross upside locations from co-development based on recent well results
- Primary targets are the Middle Spraberry, Lower Spraberry, Wolfcamp A and Wolfcamp B formations
- 98.5% of acreage is operated with an average 92% working interest; 84% of acreage currently held by production
KeyFacts Energy: Diamondback Energy US onshore country profile