Diamondback Energy Prices $161 Mln Stock Offering

(RTTNews) - Diamondback Energy, Inc. (FANG) said Wednesday that it has priced an underwritten public offering of 4 million shares of its common stock at a price of $40.25 per share.

The underwriters have an option to purchase up to an additional 600,000 shares from Diamondback Energy at the public offering price.

The offering is expected to close on August 20.

Net proceeds to Diamondback Energy from the sale of 4 million shares, after underwriting discounts and commissions and estimated expenses, are expected to be about $154.3 million.

The company plans to use the net proceeds from the offering to fund its pending acquisitions of additional acreage in the Permian Basin.

To the extent the pending acquisitions are not consummated, or the applicable purchase prices are less than currently estimated, Diamondback Energy plans to use any remaining net proceeds from the offering to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions and working capital.