Diamondback Energy Accelerates Return on Capital for Shareholders; Announces a share buyback program

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(RTTNews) – Oil and gas company Diamondback Energy, Inc. (FANG) said Thursday it had fast-track plans to return 50% of its free cash flow to shareholders. The company will return free cash flow through its basic dividend and other return mechanisms, starting in the fourth quarter of this year.

Diamondback Energy attributes free cash flow to continued strong operational performance and improved capital efficiency, favorable macroeconomic backdrop and growing financial stability.

Commenting on the developments, Travis Stice, CEO, said, “We expect the previously announced sale of our North Dakota assets to be completed within the next few weeks, with the timing depending on final government approval. The net proceeds of this sale, together with the share cash, will be used to repay the remaining $ 650 million of overdue repayable debt in our capital structure. ”

The company’s board of directors has also authorized the purchase of up to $ 2.0 billion of common stock, effective immediately. The company will purchase the shares under the buyback program with funds from cash generated from operations and liquidity events such as the sale of assets. Diamondback Energy has stated that this buyback program may be suspended from time to time, modified, extended or discontinued by the Commission at any time.

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