Oil Producer Diamondback Energy Agrees Bolt On Acquisition Focused On Northern Midland Basin


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


  • Diamondback Energy Inc (NASDAQ: FANG) has agreed to acquire Lario Permian LLC, a wholly owned subsidiary of Lario Oil & Gas Company, in cash and stock.
  • The deal consideration includes 4.18 million Diamondback shares and $850 million of cash.
  • "Lario is an attractive bolt-on to our existing Martin County position, home to some of the best rock in the Permian Basin," stated Travis Stice, Chairman, and CEO of Diamondback. 
  • The deal is valued at approximately 3.3x 2023 EBITDA with a 21% unlevered free cash flow yield at strip pricing.
  • Immediately accretive to all relevant 2023 and 2024 financial metrics, with the full year 2023 cash capital expenditures of approximately $150 million.
  • Asset Highlights:
    • Approximately 25,000 gross (15,000 net) acres in the core of the Northern Midland Basin.
    • The full year 2023 estimated average production of approximately 18 MBo/d (25 MBoe/d).
    • Diamondback expects to reduce the currently operated rig count from two to one or less post-closing for the 2023 development.
    • 154 estimated gross (132 net) horizontal locations in primary development targets.
  • Diamondback expects the transaction to close in January 2023.
  • Price Action: FANG shares are down 0.33% at $158.45 during the premarket session on the last check Thursday.
  • Photo Via Company

20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


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