Diamondback Energy subsidiary Rattler Midstream raises $665 million in IPO

Reposted from WorldOil.com

MIDLAND — Rattler Midstream LP, a subsidiary of Diamondback Energy, Inc., and Diamondback has 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.

admin

Kabir Ismail is a blogger, website developer/administrator and a comrade.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.