Akin Gump Advises Diamondback Energy in Upsized Share Offering

(Dallas) – Akin Gump advised Diamondback Energy, Inc. in its underwritten public offering of 4 million shares of common stock. The 4 million share offering represented a 1.75 million share upsize to the originally proposed 2.25 million share offering. The underwriter has a 30-day option to purchase an additional 600,000 shares of common stock from Diamondback.

The total gross proceeds of the offering (before underwriter’s discounts and commissions, estimated offering expenses and the exercise of the option) will be approximately $226 million. Diamondback intends to use the net proceeds from this offering to repay the outstanding borrowings under its revolving credit facility, with the remaining net proceeds to be used to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions and working capital.

The offering is expected to close on January 19, 2016, subject to customary closing conditions

Seth Molay, a partner in Akin Gump’s corporate practice, led the team advising Diamondback with the assistance of senior counsel Irina Maistrenko, counsel Ben Morgan and associate Katie Dinett. Partner Alison Chen advised on tax matters.

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.

 # # #