Rattler Midstream LP, a Subsidiary of Diamondback Energy, Inc., Prices Upsized Initial Public Offering of Common Units
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MIDLAND, Texas, May 22, 2019 (GLOBE NEWSWIRE) -- Rattler Midstream LP ("Rattler"), a subsidiary of Diamondback Energy, Inc. (Nasdaq: FANG) ("Diamondback"), and Diamondback today announced the pricing of Rattler’s initial public offering of 38,000,000 common units representing limited partner interests at $17.50 per common unit. The 38,000,000 offering of common units represents a 4,666,667 unit upsize to the originally proposed 33,333,333 offering of common units. In addition, Rattler has granted the underwriters a 30-day option to purchase up to an additional 5,700,000 common units at the initial public offering price. The common units are expected to begin trading on the NASDAQ Global Select Market on May 23, 2019 under the ticker symbol "RTLR." The offering is expected to close on May 28, 2019, subject to customary closing conditions.
Upon closing, the public will own common units representing an approximate 25% limited partner interest in Rattler (or an approximate 29% limited partner interest if the underwriters exercise in full their option to purchase additional common units). Diamondback will own the remaining approximate 75% limited partner interest in Rattler (or approximate 71% limited partner interest if the underwriters exercise in full their option to purchase additional common units) and the general partner of Rattler.
The total gross proceeds from the offering will be $665.0 million (before underwriters' discounts and commissions and estimated offering expenses). The net proceeds from the offering of approximately $631.8 million will be distributed to Diamondback, in part to reimburse Diamondback for certain capital expenditures.
Credit Suisse, BofA Merrill Lynch, J.P. Morgan are acting as lead book-running managers, and Barclays, Citigroup, Goldman Sachs & Co. LLC and Wells Fargo Securities are also acting as joint book-running managers for the offering. Capital One Securities, Scotia Howard Weil, SunTrust Robinson Humphrey, and UBS Investment Bank are acting as senior co-managers for the offering, and Evercore ISI, Morgan Stanley, RBC Capital Markets, Simmons Energy | A Division of Piper Jaffray℠, Tudor, Pickering, Holt & Co., Raymond James, Seaport Global Securities, Northland Capital Markets, PNC Capital Markets LLC and TD Securities are acting as co-managers for the offering. The offering of these securities is being made only by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. When available, a copy of the prospectus may be obtained from:
Credit Suisse Securities (USA) LLCAttn: Prospectus DepartmentEleven Madison Avenue, 3rd floorNew York, NY 10010Telephone: 1-800-221-1037Email: email@example.com
BofA Merrill LynchNC1-004-03-43200 North College Street, 3rd floorCharlotte, NC 28255-0001Attn: Prospectus DepartmentEmail: firstname.lastname@example.org
J.P. Morgan Securities LLCc/o Broadridge Financial Solutions1155 Long Island AvenueEdgewood, NY 11717Telephone: (866) 803-9204Email: email@example.com
You may also obtain a copy of the prospectus for free by visiting the SEC's website at http://www.sec.gov.
A registration statement relating to these securities has been filed with, and declared effective by, the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described above nor shall there be any sale of the securities described above in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Rattler Midstream LP
Rattler Midstream LP is a growth-oriented Delaware limited partnership formed in July 2018 by Diamondback Energy, Inc. to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler provides crude oil, natural gas and water-related midstream services (including fresh water sourcing and transportation and saltwater gathering and disposal) to Diamondback under long-term, fixed-fee contracts.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.
This press release may include forward-looking statements within the meaning of the federal securities laws. Statements that do not relate strictly to historical or current facts are forward-looking. These statements contain words such as "anticipate," "if," "will" and "expect" and involve risks and uncertainties including, among others, that Rattler's business plans may change as circumstances warrant and securities of Rattler may not ultimately be sold to the public because of general market conditions or other factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Rattler's prospectus and SEC filings and Diamondback’s SEC filings, including its Forms 10-K, 10-Q and 8-K. Each of Rattler and Diamondback undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Investor Contact:Adam Lawlis+1 432.221.7467IR@rattlermidstream.com
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