WASHINGTON (dpa-AFX) - Diamondback Energy Inc. (FANG) Tuesday said it has agreed to buy Energen Corp. (EGN) in an all-stock transaction deal valued at about $9.2 billion.
The deal includes Energen's net debt of $830 million as of June 30, 2018.
The stock consideration will consist of 0.6442 shares of Diamondback for each share of Energen.
The stock consideration represents an implied value to each Energen shareholder of $84.95 per share based on the closing price of Diamondback common stock on August 13, 2018.
The consideration represents about 19% premium to Energen's closing price of $71.36 on August 13, 2018.
Upon closing the transaction, Diamondback shareholders will own approximately 62% of the combined company, and Energen shareholders will own approximately 38%.
The transaction was unanimously approved by the Board of Directors of each company.
'This transaction represents a transformational moment for both Diamondback and Energen shareholders as they are set to benefit from owning the premier large cap Permian independent with industry leading production growth, operating efficiency, margins and capital productivity supporting an increasing capital return program,' stated Travis Stice, Chief Executive Officer of Diamondback.
The transaction, which is expected to be completed by the end of the fourth quarter of 2018, is subject to the approval of both Diamondback and Energen shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
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