Texas-based oil and gas company Diamondback Energy has wrapped up its acquisition of Energen, an oil and gas exploration and production company headquartered in Birmingham, Alabama.
Image: Conventional oil production. Photo: courtesy of Vlado/FreeDigitalPhotos.net.
The merger was previously approved by Diamondback stockholders and Energen shareholders at special meetings held on November 27, 2018.
Each eligible share of Energen’s common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive 0.6442 of a share Diamondback’s common stock, with cash in lieu of any fractional shares.
As a result of the merger, Energen common stock will no longer be listed for trading on NYSE, and Energen will no longer have reporting obligations under the Securities Exchange Act of 1934.
Diamondback CEO Travis Stice said: “Today is an exciting day for Diamondback as we have completed the merger of these two companies to become a large cap independent oil and gas company with the size, scale, inventory depth and cost structure to compete for many years in the Permian Basin.
“Our path to success has never been clearer: maintain best in class execution and low-cost operations on a larger scale. As a result of this merger, we have built a company that can consistently grow production at best in class rates and generate free cash flow even in challenging commodity price environments, all while maintaining a fortress balance sheet.”
Source: Company Press Release