FANG Update - May 24
Posted: Fri May 24, 2019 11:06 am
Rattler Midstream raises $665 in gross proceeds
Diamondback Energy, Inc. (stock ticker: FANG) subsidiary Rattler Midstream LP (stock ticker: RTLR) priced its upsized initial public offering this Wednesday, offering up 38,000,000 shares to the public at a price of $17.50 per common unit.
This represents a 4,666,667 unit increase from the originally proposed offering of 33,333,333.
Source: Diamondback Energy Investor Presentation
The offering will net Rattler $665 million in total gross proceeds, representing the largest energy sector IPO of 2019 to date.
From Bloomberg:
Rattler was formed by Diamondback Energy Inc. to own, operate and acquire midstream assets in parts of the Permian Basin. Diamondback will retain about 76% of the voting rights in the company through Class B shares, according to the filing.
As of March 31, Diamondback had transferred to Rattler 781 miles of pipeline across the Midland and Delaware basins with a capacity of about 232,000 barrels a day for crude, plus natural gas, and drilling and waste water, the filing shows.
Diamondback has expanded its drilling in the Midland and Delaware basins in the Permian over the past two years. Last year, it drilled 176 new wells in those areas, compared with 62 in 2016. For the first three months of this year, Diamondback’s new wells in the area totaled 82, the filing shows.
Rattler’s revenue, as a Diamondback operation, more than quadrupled to $184 million in 2018 from $39 million a year earlier, according to its filings. Its net income rose to $63 million from $21 million.
Diamondback Energy, Inc. (stock ticker: FANG) subsidiary Rattler Midstream LP (stock ticker: RTLR) priced its upsized initial public offering this Wednesday, offering up 38,000,000 shares to the public at a price of $17.50 per common unit.
This represents a 4,666,667 unit increase from the originally proposed offering of 33,333,333.
Source: Diamondback Energy Investor Presentation
The offering will net Rattler $665 million in total gross proceeds, representing the largest energy sector IPO of 2019 to date.
From Bloomberg:
Rattler was formed by Diamondback Energy Inc. to own, operate and acquire midstream assets in parts of the Permian Basin. Diamondback will retain about 76% of the voting rights in the company through Class B shares, according to the filing.
As of March 31, Diamondback had transferred to Rattler 781 miles of pipeline across the Midland and Delaware basins with a capacity of about 232,000 barrels a day for crude, plus natural gas, and drilling and waste water, the filing shows.
Diamondback has expanded its drilling in the Midland and Delaware basins in the Permian over the past two years. Last year, it drilled 176 new wells in those areas, compared with 62 in 2016. For the first three months of this year, Diamondback’s new wells in the area totaled 82, the filing shows.
Rattler’s revenue, as a Diamondback operation, more than quadrupled to $184 million in 2018 from $39 million a year earlier, according to its filings. Its net income rose to $63 million from $21 million.