Energy

Diamondback Energy slips after secondary offering pricing

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Shares of oil and gas producer Diamondback Energy (NASDAQ:FANG) fell 1.2% to $179.50 in pre-market trading following the pricing of a secondary offering late Thursday.

The company announced that 12.77 million shares, sold by certain legacy Endeavor stockholders, generated approximately $2.2 billion in gross proceeds.

This offering size was increased from 11.27 million shares.

In addition to the secondary offering, Diamondback Energy plans to repurchase 2 million shares from the offering underwriters, which include Evercore, Citigroup, and JPMorgan.

Last week, Diamondback completed its $26 billion cash-and-stock acquisition of privately-held shale oil competitor Endeavor Energy Resources, a deal initially announced in February.

The company has approximately 294.7 million shares outstanding, according to an SEC prospectus filed on September 12.

As of Thursday’s close, Diamondback's share price was up 17% year to date.

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