(RTTNews) - Diamondback Energy (FANG) has entered into a definitive purchase agreement to acquire certain subsidiaries of Double Eagle IV Midco, LLC in exchange for approximately 6.9 million shares of Diamondback common stock and $3 billion of cash. Diamondback and Double Eagle have also agreed to accelerate development on a portion of Diamondback's non-core southern Midland Basin acreage.
Diamondback is also committing to sell at least $1.5 billion of non-core assets to accelerate pro forma debt reduction in order to maintain its strong balance sheet. Diamondback expects to reduce net debt to $10 billion and, long term, maintain leverage of $6 billion to $8 billion.
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