Akin Gump Counsels Diamondback Energy in Stock Offering and $288.3M Leasehold Purchases

(Dallas) – An Akin Gump team led by corporate partner Seth Molay advised Diamondback Energy in its three pending acquisitions of additional acreage in the Permian Basin and an underwritten public offering to fund a portion of the purchase price for these acquisitions. The offering of three million shares of Diamondback common stock was launched on February 20, 2014, and priced that night at $62.67 per share, for estimated net proceeds at closing of $181.3 million. The underwriters will have an option to purchase up to an additional 450,000 shares of common stock from Diamondback. All of the shares to be sold in the offering are being sold by Diamondback.

Prior to launching the offering, Akin Gump advised Diamondback in connection with a definitive purchase agreement to acquire 1,858 net leasehold acres in Martin County, Texas, representing a 28.8 percent working interest, for approximately $114.3 million, subject to certain adjustments. On February 18, 2014, Diamondback announced that it had entered into two other definitive purchase agreements to acquire an aggregate of 2,825 net acres in Martin County for approximately $174 million. As a result, in the past few days, Diamondback has entered into definitive agreements to acquire an aggregate of 4,683 net acres, representing a 72.6 percent working interest, for a total purchase price of $288.3 million, subject to certain adjustments. Diamondback intends to use the net proceeds from its equity offering and borrowings under its revolving credit facility to fund these acquisitions.

The offering deal team comprised Molay, senior counsel Irina Maistrenko and associates Ben Morgan and Rachel Evans. The acquisition deal team comprised Molay, partner Gabriel Procaccini and counsel Eric Muñoz.

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 850 attorneys in offices throughout the United States, Europe, Asia and the Middle East.

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