Diamondback Energy, Inc. entered into a definitive agreement to acquire All leasehold interest and related Assets of FireBird Energy LLC from Firebird Energy LLC for approximately $1.59 billion.

Diamondback Energy, Inc. (NasdaqGS:FANG) entered into a definitive agreement to acquire All leasehold interest and related Assets of FireBird Energy LLC from Firebird Energy LLC for approximately $1.59 billion on October 11, 2022. The consideration is 5.86 million shares of Diamondback common stock and $775 million of cash. The cash portion of this transaction is expected to be funded through a combination of cash on hand, borrowings under the Diamondback's credit facility and proceeds from a senior notes offering.

The cash outlay at closing is expected to be approximately $700 million due to the expected Free Cash Flow to be generated on the asset between the effective date. Diamondback expects this transaction to close late in fourth quarter of 2022. This transaction is accretive on all relevant 2023 and 2024 financial metrics, immediately increasing expected per share returns to our stockholders.

Kirkland & Ellis LLP is serving as legal advisor to Diamondback and Akin Gump Strauss Hauer & Feld LLP and Barbra J. Broudy, Devon Bodoh, Samuel C. Peca, Vadim M. Brusser of Weil, Gotshal & Manges LLP are acting as legal advisors to Firebird Energy LLC and its affiliates. RBC Capital Markets, LLC and Goldman Sachs & Co. LLC are acting as lead financial advisors to Firebird Energy LLC.