Diamondback Energy to buy Rattler Midstream in all-stock deal
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Rattler Midstream (NASDAQ:RTLR) +15.1% pre-market on Monday after Diamondback Energy (NASDAQ:FANG) agreed to acquire all Rattler common units it does not already own.
Under the deal terms, Rattler (RTLR) unitholders would receive 0.113 per common share Diamondback (FANG) in exchange for each Rattler common unit owned, an exchange ratio that implies a 17.3% premium for Rattler based on the May 13 closing price.
"The energy landscape has transformed dramatically since Rattler was taken public in 2019, and we believe this agreement to merge companies is in the best interests of both Diamondback and Rattler stakeholders," Diamondback (FANG) and Rattler (RTLR) CEO Travis Stice said.
Diamondback Energy (FANG) recently reported better than expected Q1 earnings and raised its base dividend.