Diamondback Energy Announces Closing Of $450 Million Of Senior Notes Due 2021

MIDLAND, Texas, Sept. 18, 2013 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (Nasdaq:FANG) ("Diamondback Energy") announced today the closing of its offering of $450 million aggregate principal amount of its 7.625% Senior Notes due 2021 (the "Notes") at an issue price of 100% of the aggregate principal amount of the Notes. The Notes will mature on October 1, 2021, unless redeemed in accordance with their terms prior to such date. The Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act.

The net proceeds of the offering, after deducting initial purchasers' discounts and our estimated offering expenses, were approximately $439.7 million. Diamondback Energy intends to use the net proceeds from the offering to fund its pending acquisition of mineral interests in the Permian Basin. To the extent the pending acquisition is not consummated, or the applicable purchase price is less than currently estimated, Diamondback Energy intends to use any remaining net proceeds from the offering to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest, property acquisitions and working capital.

The Notes are general unsecured senior obligations of Diamondback Energy and are guaranteed on a senior unsecured basis by all of Diamondback Energy's current subsidiaries and any future restricted subsidiaries that guarantee Diamondback Energy's senior credit facility. Interest on the Notes is payable semi-annually.

The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state 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.

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