(Reuters) – Oil and gasoline firm Diamondback Power mentioned on Tuesday it will purchase sure models of Texas-based power producer Double Eagle in a cash-and-stock deal for about $4.08 billion.
Diamondback added that it will promote at the least $1.5 billion of non-core property to cut back pro-forma debt. The shale producer expects to cut back internet debt to $10 billion and, long run, keep leverage of $6 billion to $8 billion.
Final 12 months, Reuters had reported that Double Eagle was exploring a sale of its Permian Basin-based producer in a deal that may very well be price greater than $6.5 billion, together with debt.
Fort Price-based Double Eagle owns over 95,000 internet acres within the Midland Basin and represents one of many final massive property within the Permian Basin, essentially the most intensive oil area in the USA.
(Reporting by Pooja Menon and Vallari Srivastava in Bengaluru; Modifying by Maju Samuel)
