The energy landscape has transformed dramatically since Rattler was taken public in 2019.
Callaghan O’Hare/Bloomberg
Rattler Midstream shares soared on Monday after the company announced that it had been acquired by Diamondback Energy in an all-stock deal that values Rattler at about $2.2 billion.
Under terms of the deal, Diamondback (ticker: FANG) will provide 0.113 of its shares for each Rattler (RTLR) share outstanding that it doesn’t already own. Based on Friday’s closing prices, the exchange ratio implies a premium of 17.3% for each share of Rattler, which is a midstream energy assets limited partnership formed by Diamondback, the company said in a statement.
Rattler’s stock surged 15.8% to $14.88 in premarket trading on Monday. Diamondback’s stock edged up 0.05%.
“The energy landscape has transformed dramatically since Rattler was taken public in 2019, and we believe this agreement to merge companies is in the best interests of both Diamondback and Rattler stakeholders,” Travis Stice, CEO of Diamondback and the general partner of Rattler said in a statement.
Write to Lina Saigol at [email protected]
