Akin Gump Advises Diamondback Energy in Asset Acquisition and Drop-Down Sale
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(Dallas) – Diamondback Energy, Inc. announced it has entered into a definitive purchase agreement to acquire all leasehold interests and related assets of Ajax Resources, LLC for $900 million in cash and 2.58 million shares of Diamondback common stock, subject to certain adjustments. Akin Gump advised Diamondback in the matter.
The deal includes 25,493 net leasehold acres in the Northern Midland Basin, including approximately 21,000 net acres in Northwest Martin and Northeast Andrews counties, with roughly 89 percent held by production. It is expected to close at the end of October, subject to continued diligence and closing conditions.
The Akin Gump team advising Diamondback included corporate partners Seth Molay and Matt Zmigrosky, oil and gas partner Michael Byrd, tax partners Alison Chen and Jocelyn Tau, employee benefits partner Robin Schachter, corporate senior counsel Irina Maistrenko and oil and gas associate Niki Roberts.
In a separate transaction on behalf of Diamondback, Akin Gump advised the company in a drop-down sale of 1,696 net royalty acres to Viper Energy Partners LP for $175 million, subject to post-closing adjustments. That deal, led by Messrs. Molay and Byrd, is expected to close this month.
Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.
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