M&A · Energy · Crude Petroleum & Natural Gas
Diamondback Energy, Inc. to acquire QEP Resources, Inc.
Announced Dec 21, 2020 · Closed Mar 17, 2021
Deal value$2.20BEV $2.20B
Premium39.4%To unaffected price
EV / Adj. EBITDA4.7x1.9x EV / Revenue
ConsiderationAll stock$2.29 per share
Transaction
- Acquirer
- Diamondback Energy, Inc. (FANG)
- Target
- QEP Resources, Inc. (QEP)
- Buyer type
- Strategic
- Offer price per share
- $2.29
- Enterprise value
- $2.20B
- Status
- Closed Mar 17, 2021
Deal protections
- Break fee (target pays)
- $17.0M · 0.8%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Goldman Sachs, Moelis
- To the target
- Evercore
- Evercore fee
- $25.0M
Sector context · Energy
- Comparable deals
- 4 in the prior 24 months
- Premium
- —
- EV / Adj. EBITDA
- —
- Break fee
- 0.8% vs. 4.6% sector median
Timeline
- AnnouncedDec 21, 2020
- Proxy filedFeb 10, 2021
- Definitive proxyFeb 10, 2021
- Shareholder voteMar 16, 2021
- ClosedMar 17, 2021
Valuation · fairness opinions
Other analysis$0.41$4.80
Discounted cash flow$0.68$2.91
Discounted cash flow$2.09$4.59
Discounted cash flow$3.74$6.65
Trading comparables$1.24$4.43
Offer $2.29
Implied value per QEP Resources, Inc. share by analysis, from Evercore · DCF discount rate 8%–35%.