Diamondback Energy has plans to acquire all of the publicly held common units representing the limited partner interests in Rattler Midstream not already owned by Diamondback and its subsidiaries.
The agreement provides for an all-stock transaction, whereby each public unitholder of Rattler would receive 0.113 of a share of common stock in Diamondback in exchange for each Rattler common unit owned, an exchange ratio that implies a premium of 17.3 percent for Rattler common units based on the closing prices of Rattler’s common units and Diamondback’s common stock as of May 13.
“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,” said Travis Stice, CEO of Diamondback and general partner of Rattler. “This merger will allow both companies to benefit from the simplicity and scale of the combined entity going