June 16, 2024

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Business is my step

Denver-based QEP Sources announces $2.2B merger with Diamondback Electricity

2 min read

Texas-based mostly Diamondback Vitality will acquire Denver oil and fuel business QEP Resources in a $2.2 billion deal introduced Monday. The merger will be an all-stock transaction.

The agreement with Diamondback, based in Midland, Texas, contains having on QEP’s internet debt of $1.6 billion, the providers said in a assertion. QEP Resources’ oil and gas operations are concentrated in the Permian Basin in Texas and the Williston Basin in North Dakota.

QEP’s North Dakota belongings will be utilised to crank out hard cash flow or will be divested, depending on industry situations, the providers reported. Diamondback is also obtaining Guidon Electricity in Midland for 10.63 million shares of Diamondback prevalent inventory and $375 million in hard cash.

Tim Cutt, QEP president and CEO, stated the merger with Diamondback together with the addition of the Guidon belongings delivers the company’s shareholders “an remarkable financial investment opportunity” as perfectly as enhanced capital efficiencies.

Diamondback’s acquisition of QEP matches in the mildew of consolidations of general public exploration and manufacturing providers in 2020, Andrew Dittmar, senior mergers and acquisitions analyst for Enverus, reported in a statement.

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