Oil Producer Diamondback Energy Agrees Bolt On Acquisition Focused On Northern Midland Basin

Diamondback Energy Inc (NASDAQ: FANG) has agreed to acquire Lario Permian LLC, a wholly owned subsidiary of Lario Oil & Gas Company, in cash and stock.
The deal consideration includes 4.18 million Diamondback shares and $850 million of cash.
"Lario is an attractive bolt-on to our existing Martin County position, home to some of the best rock in the Permian Basin," stated Travis Stice, Chairman, and CEO of Diamondback.
The deal is valued at approximately 3.3x 2023 EBITDA with a 21% unlevered free cash flow yield at strip pricing.
Immediately accretive to all relevant 2023 and 2024 financial metrics, with the full year 2023 cash capital expenditures of approximately $150 million.
Asset Highlights:
- Approximately 25,000 gross (15,000 net) acres in the core of the Northern Midland Basin.
- The full year 2023 estimated average production of approximately 18 MBo/d (25 MBoe/d).
- Diamondback expects to reduce the currently operated rig count from two to one or less post-closing for the 2023 development.
- 154 estimated gross (132 net) horizontal locations in primary development targets.
Diamondback expects the transaction to close in January 2023.
Price Action: FANG shares are down 0.33% at $158.45 during the premarket session on the last check Thursday.
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