Diamondback Expects Gross Proceeds Of $297 Mln From Public Offering

(RTTNews) - Oil and natural gas company Diamondback Energy Inc (FANG) on Friday announced the pricing of an underwritten public offering of 4 million shares of its common stock. The offering represents a 1 million share upsize to the originally proposed offering.

The total gross proceeds of the offering will be about $297 million.

The underwriter has an option to purchase up to an additional 600,000 shares of stock from Diamondback.

Diamondback intends to use the net proceeds from the offering to fund a portion of the purchase price for its pending acquisitions of additional acreage in the Midland Basin, primarily in northwestern Howard County, in the Permian Basin.

Diamondback intends to use any remaining net proceeds to repay borrowings under its revolving credit facility, fund a portion of its exploration and development activities and for general corporate purposes.

The offering is expected to close on May 13.