FireBird Energy to be acquired by Diamondback Energy for $1.6B - Dallas Business Journal

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The acquisition will give Diamondback about 75,000 additional acres in the Midland Basin, which is part of the Permian Basin in West Texas.

By DBJ staffMidland-based Diamondback Energy Inc. has announced the acquisition of Fort Worth-based oil and gas company FireBird Energy LLC for $1.6 billion in a cash-and-stock deal,According to the story, the acquisition will give Diamondback about 75,000 additional acres in the Midland Basin, which is part of the Permian Basin in West Texas. This is the company's biggest deal since it closed the acquisition of Midland-based QEP Resources Inc. in 2021.

"With over 350 locations adjacent to our current Midland Basin portion, this asset adds more than a decade of inventory at our anticipated development pace,"Diamondback will pay 5.6 million shares and $775 million in cash. The cash from the deal is expected to be funded via cash on hand. borrowings under a credit facility and proceeds from an offering of senior notes.

According to the story, Firebird's output of 22,000 barrels of oil equivalent per day is expected to increase by 13.6% next year and can be maintained for several years with one rig.

 

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