Diamondback Energy Acquires Guidon Energy for Cash and Stock

Updated 6 months 3 weeks ago

Diamondback Energy entered a definitive agreement in December 2020 to acquire all leasehold interests and related assets of Guidon Operating in exchange for 10.63 million shares of common stock and $375 million of cash. This includes 32,500 net acress in the northern Midland Basin, primarily held by production with average production of 11,600 barrels per day (17,900 boe). Guidon has 395 estimated gross horizontal location with an average later length of 10,500 feet and eight drilled but uncompleted wells. 95% of this is operated with an average 82% working interest. Morgan Stanley advised Diamondback with Citi and RBC advising Guidon.

Diamondback CEO

As a result of this deal, Diamondback is expected to reduce capital spend on our existing assets and re-allocate a portion of that capital to high return projects on the Guidon acreage.