Diamondback Energy, Inc. (NASDAQ: FANG) has announced the launch of a secondary common stock offering, with 11,270,000 shares of its common stock being offered by certain legacy endeavor stockholders. Additionally, the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 1,390,500 shares of common stock.
As part of this offering, Diamondback has authorized the purchase of 2,000,000 shares of common stock from the underwriters as part of its existing share repurchase program. This share repurchase will be funded from the company's existing cash on hand.
The joint book-running managers for the secondary offering are Evercore ISI, Citigroup, and J.P. Morgan. The common stock will be sold pursuant to an effective automatic shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission.
Diamondback Energy, Inc. is an independent oil and natural gas company headquartered in Midland, Texas, focusing on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. As a result of these announcements, the company's shares have moved 2.3% on the market, and are now trading at a price of $185.25. For the full picture, make sure to review Diamondback Energy's 8-K report.
