Published on 29 May 2024 on Zacks via Yahoo Finance
Diamondback (FANG) Declares Strategic Sale of WTG Midstream
Diamondback Energy, Inc. FANG has declared the sale of WTG Midstream Holdings LLC to Energy Transfer LP ET. This strategic move will yield a total pre-tax consideration of approximately $375 million for Diamondback. The transaction will consist of a mix of cash and ET common units. The deal will be finalized in the third quarter of 2024.
Significance of the Sale
Financial Impact: This sale represents a significant financial milestone for FANG. Through its subsidiary, Rattler Midstream LP, FANG has owned a 25% stake in Remuda Midstream Holdings LLC (WTG Midstream) since October 2021. The sale of WTG Midstream Holdings LLC represents an approximate 3.5x on invested capital for FANG.