Diamondback Energy (FANG) Update - Nov 27

[dan_s]

Diamondback Energy, Inc. (FANG) (“Diamondback”) and Energen Corporation (EGN) (“Energen”) today announced that all proposals necessary for the parties’ pending merger (the “Merger”) were approved by the stockholders of Diamondback and the shareholders of Energen at each company’s respective special meeting held today.

As previously announced, on August 14, 2018, Diamondback and Energen entered into a definitive merger agreement providing for Diamondback’s acquisition of Energen in an all-stock transaction. Under the terms of the definitive merger agreement, each eligible share of Energen’s common stock issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive 0.6442 of a share Diamondback’s common stock, with cash in lieu of any fractional shares. Diamondback and Energen expect to close the Merger on November 29, 2018, subject to satisfaction of the remaining customary closing conditions.
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If you'd like an idea of how this BIG DEAL impacts FANG, go to the EPG website, click on the Sweet 16 and look at the Diamondback forecast model under their logo. In Column S I put my guess at was the merger with Energen will mean to this incredible growth story. My valuation of FANG is now $180/share.

This merger is also very important to Viper Energy Partners (VNOM).

[ChuckGeb]

Importantly FANG is being added to S & P 500 Index.

[dan_s]

Thanks for adding that note. It is a big deal as a lot more hedge funds will buy it. FANG is an incredible growth story.