The 2 million shares in the offering will be sold by entities controlled by Wexford Capital LP and by Gulfport Energy (GPOR). The Wexford entities will sell 1 million shares, and Gulfport will sell the remaining 1 million shares. The underwriters of the offering will have a 30-day option to buy an additional 300,000 shares from the stockholders.
Diamondback Energy won't receive any proceeds from the offering.
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TheStreet Ratings team rates DIAMONDBACK ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIAMONDBACK ENERGY INC (FANG) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows: