RTTNews | Dec 21, 2020 07:03AM EST

07:02 Monday, December 21, 2020 (RTTNews.com) - Diamondback Energy Inc. (FANG) agreed to buy QEP Resources (QEP) in an all-stock transaction valued at about $2.2 billion, including net debt of $1.6 billion as of September 30, 2020.

The transaction was unanimously approved by the Board of Directors of each company.

As per the terms of the agreement, stockholders of QEP will receive 0.05 shares of Diamondback common stock in exchange for each share of QEP common stock, representing an implied value to each QEP stockholder of $2.29 per share based on the closing price of Diamondback common stock on December 18, 2020.

Diamondback stockholders will own about 92.8% of the combined company, and QEP stockholders will own about 7.2%.

The transaction has been unanimously approved by the Boards of Directors of Diamondback and QEP and is expected to be completed in the first quarter or early in the second quarter of 2021.

Upon closing, Diamondback's board and executive team will remain unchanged. The company will continue to be headquartered in Midland, Texas.

Read the original article on RTTNews ( https://www.rttnews.com/3155307/diamondback-energy-to-buy-qep-resources-in-2-2-bln-stock-deal.aspx)

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