Diamondback buys Guidon Operating LLC for $862 million By Simon Casey on 12/21/2020
(Bloomberg) Diamondback Energy Inc. rounded off a tumultuous year for the U.S. shale industry with the acquisition of two rival producers for about $1.4 billion that will expand the companyâs position in the Permian Basin.
Diamondback said it agreed to purchase closely held Guidon Operating LLC. That cash-and-stock deal values Guidon, which was co-founded in 2016 by funds managed with Blackstone Group, at about $862 million.
The acquisitions are a bet by Midland, Texas-based Diamondback on the resilience of the shale sector, whose production has dropped this year following the collapse of oil prices. The deals are Diamondbackâs largest since its $7 billion takeover of Energen Corp. in 2018, and will bring its total leasehold interests to over 276,000 net surface acres in the Midland Basin, which is part of the Permian in West Texas.
Market movers: Stocks seeing action on Monday - and why
theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
Diamondback to buy shale rival QEP Resources for $555-million
theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
Updated Dec. 21, 2020 4:52 pm ET Diamondback Energy Inc. has agreed to buy West Texas rival QEP Resources Inc. in an all-stock deal, extending a run of low-premium takeovers in the shale patch.
The deal was valued at $2.2 billion overall, including $1.6 billion in debt. In a separate cash-and-stock deal worth about $860 million, Diamondback said Monday it is acquiring leasehold interests and other assets from a private company, Guidon Operating LLC.
There have been a recent string of acquisitions in the U.S. oil industry, where low oil prices and heavy debt loads have sparked a wave of relatively cheap deals. The coronavirus pandemic gutted demand for oil and gas and sped consolidation that some investors and analysts said would be necessary to jolt fading Wall Street interest in the sector.