Going public is the popular goal for many emerging companies. Now trading on the Nasdaq under the ticker symbol FANG, Diamondback Energy is actively pursuing that objective. Diamondback recently announced the pricing of an underwritten public offering of 4 million shares of its common stock. In order to promote its successful Wall Street rollout, Diamondback retained the law firm of Akin Gump to advise it. The 4 million share offering represents a 1,750,000 share upsize to the originally proposed 2,250,000 share offering. The underwriter has a 30-day option to purchase an additional 600,000 shares of common stock from Diamondback, an independent oil and natural gas company headquartered in Midland, Texas, that is focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.

According to a recent announcement issued by Diamondback, the total gross proceeds of the offering (before underwriter’s discounts and commissions, estimated offering expenses and the exercise of the option) will be approximately $226 million. Diamondback intends to use the net proceeds from the offering to repay the outstanding borrowings under its revolving credit facility, with the remaining net proceeds to be used to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions and working capital.

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