Diamondback Energy, Inc. has fully repurchased $ 191 million from
MIDLAND, Texas, June 21, 2021 (GLOBE NEWSWIRE) – Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced that the Company has fully repaid the full principal amount of $ 191 million from the current inheritance. 4.625% senior bonds due 2021 of Energen Corporation, a subsidiary of the Company. Repayment of these notes will reduce cash interest expense by approximately $ 9 million per year.
“By using internally generated cash flow along with the proceeds from our previously announced sales of non-core Permian assets to repay this tranche of bonds, we have reduced our absolute leverage, lowered our interest costs and strengthened our balance sheet, ”said Travis Stice, President and CEO of Diamondback. “We plan to use additional internally generated free cash flow as well as the proceeds from our ongoing disposal of Williston Basin to further reduce our repayable debt in the second half of this year.”
About Diamondback Energy, Inc.
Diamondback is an independent oil and gas company based in Midland, Texas, specializing in the acquisition, development, exploration and exploitation of unconventional oil and natural gas reserves onshore, primarily in the Permian Basin, in West Texas. For more information, please visit www.diamondbackenergy.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, which relate to the activities that Diamondback undertakes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or could occur in the future are forward-looking statements. Forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events, including current adverse industry and macroeconomic conditions, volatility of commodity prices, production levels, the impact of the recent and congressional elections on energy and environmental policies and regulations, any other potential regulatory action (including those that could impose production limits in the Permian Basin) , the impact of the COVID-19 pandemic, acquisitions and sales of assets, including the recently completed Guidon and QEP acquisitions and the synergies and cost savings expected from these transactions, as well as the divestiture in Williston Basin course, future dividends, production plans, drilling and capital expenditures, met extremes, the impact of depreciation charges and the effects of hedging agreements. These forward-looking statements involve certain risks and uncertainties which could cause the results to differ materially from those expected by the management of Diamondback. Information regarding these risks and other factors can be found in documents filed by Diamondback with the Securities and Exchange Commission (“SEC”), including its reports on Forms 10-K, 10-Q and 8-K , which can be obtained free of charge from the SEC’s website at http://www.sec.gov. Diamondback assumes no obligation to update or revise any forward-looking statement.