PE Deals

Diamondback to acquire RedBird and Ontario Teachers’-backed FireBird

The deal is valued at $1.6 billion.

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  • Diamondback is an independent oil and natural gas company headquartered in Midland, Texas
  • Kirkland & Ellis LLP is serving as legal advisor to Diamondback while Akin Gump Strauss Hauer & Feld LLP and Weil, Gotshal & Manges LLP are serving as legal advisors to FireBird and its affiliates
  • RBC Capital Markets and Goldman Sachs & Co. LLC are serving as lead financial advisors to FireBird

Diamondback Energy has agreed to acquire Fort Worth, Texas-based upstream oil and gas company FireBird Energy for $1.6 billion. The deal is expected to close in the fourth quarter of this year.

FireBird is backed by RedBird Capital Partners and Ontario Teachers’ Pension Plan.

“This bolt-on acquisition adds significant, high-quality inventory right in our backyard,” stated Travis Stice, chairman and CEO of Diamondback, in a statement. “With over 350 locations adjacent to our current Midland Basin position, this asset adds more than a decade of inventory at our anticipated development pace, including inventory that competes for capital right away in Diamondback’s current development plan. Also, importantly, this transaction is accretive on all relevant 2023 and 2024 financial metrics, immediately increasing expected per share returns to our stockholders in the near-term while also improving the long-term duration of the Company’s cash return profile.”

Kirkland & Ellis LLP is serving as legal advisor to Diamondback and Akin Gump Strauss Hauer & Feld LLP and Weil, Gotshal & Manges LLP are serving as legal advisors to FireBird and its affiliates. RBC Capital Markets and Goldman Sachs & Co. LLC are serving as lead financial advisors to FireBird.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas.