Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Diamondback Energy Inc (NASDAQ: FANG) disclosed a definitive merger deal with Endeavor Energy Resources, L.P. for around $26 billion, inclusive of Endeavor’s net debt.
In particular, the transaction comprises around 117.3 million shares of Diamondback common stock and $8 billion of cash, subject to customary adjustments.
The deal will offer annual synergies of $550 million representing over $3.0 billion in NPV10 over the next decade, and expects accretion of ~10% free cash flow per share in 2025.
Diamondback’s Board of Directors raised a 7% increase to its base dividend to $3.60 per share annually ($0.90 per share quarterly), effective for the fourth quarter of 2023.
Diamondback expects average production of 273.1 MBO/d (462.6 MBOE/d) and cash capital expenditures of $649 million for fourth quarter 2023.
Diamondback shares rose 0.3% to trade at $166.50 on Tuesday.
These analysts made changes to their price targets on Diamondback following merger news.
- Keybanc raised the price target on Diamondback from $170 to $186. Keybanc analyst Tim Rezvan maintained an Overweight rating.
- BMO Capital increased the price target on Diamondback from $167 to $175. BMO Capital analyst Phillip Jungwirth maintained a Market Perform rating.
- Scotiabank boosted the price target on Diamondback from $180 to $200. Scotiabank analyst Paul Cheng maintained a Sector Outperform rating.
- Susquehanna boosted the price target on Diamondback from $190 to $195. Susquehanna analyst Biju Perincheril maintained a Positive rating.
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Latest Ratings for FANG
| Mar 2022 | Scotiabank | Upgrades | Sector Perform | Sector Outperform |
| Mar 2022 | B of A Securities | Downgrades | Buy | Neutral |
| Mar 2022 | Raymond James | Maintains | Strong Buy |
View the Latest Analyst Ratings
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