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Rattler Midstream LP, A Subsidiary of Diamondback Energy, Inc., Announces Closing of Initial Public Offering


Rattler Midstream Logo.png
Source: Rattler Midstream LP

MIDLAND, Texas, May 28, 2019 (GLOBE NEWSWIRE) — Rattler Midstream LP (Nasdaq: RTLR) (“Rattler”), a subsidiary of Diamondback Energy, Inc. (Nasdaq: FANG) (“Diamondback”), and Diamondback today announced the closing of Rattler’s previously announced initial public offering of 38,000,000 common units representing limited partner interests at a price to the public of $17.50 per common unit. In addition, Rattler has granted the underwriters a 30-day option to purchase up to an additional 5,700,000 common units at the initial public offering price. The common units began trading on the Nasdaq Global Select Market on May 23, 2019 under the ticker symbol “RTLR.”

The common units sold at closing represent an approximate 25% limited partner interest in Rattler (or an approximate 29% limited partner interest if the underwriters exercise in full their option to purchase additional common units). Diamondback owns the remaining approximate 75% limited partner interest in Rattler (or approximate 71% limited partner interest if the underwriters exercise in full their option to purchase additional common units) and the general partner of Rattler.

The total gross proceeds from the offering were $665.0 million (before underwriters’ discounts and commissions and estimated offering expenses). The net proceeds from the offering of approximately $631.8 million, excluding estimated offering expenses, will be distributed to Diamondback, in part to reimburse Diamondback for certain capital expenditures.

Credit Suisse, BofA Merrill Lynch, J.P. Morgan acted as lead book-running managers, and Barclays, Citigroup, Goldman Sachs & Co. LLC and Wells Fargo Securities also acted as joint book-running managers for the offering. Capital One Securities, Scotia Howard Weil, SunTrust Robinson Humphrey, and UBS Investment Bank acted as senior co-managers for the offering, and Evercore ISI, Morgan Stanley, RBC Capital Markets, Simmons Energy | A Division of Piper Jaffray℠, Tudor, Pickering, Holt & Co., Raymond James, Seaport Global Securities, Northland Capital Markets, PNC Capital Markets LLC and TD Securities acted as co-managers for the offering. The offering of these securities was made only by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. A copy of the prospectus may be obtained from:

Credit Suisse Securities (USA) LLC BofA Merrill Lynch
Attn: Prospectus Department NC1-004-03-43
Eleven Madison Avenue, 3rd floor 200 North College Street, 3rd floor
New York, NY 10010 Charlotte, NC  28255-0001
Telephone: 1-800-221-1037 Attn: Prospectus Department
Email: [email protected] Email: [email protected]
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Telephone: (866) 803-9204
Email: [email protected]

You may also obtain a copy of the prospectus for free by visiting the SEC’s website at http://www.sec.gov.

A registration statement relating to these securities was filed with, and declared effective by, the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described above nor shall there be any sale of the securities described above in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Rattler Midstream LP

Rattler Midstream LP is a growth-oriented Delaware limited partnership formed in July 2018 by Diamondback Energy, Inc. to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler provides crude oil, natural gas and water-related midstream services (including fresh water sourcing and transportation and saltwater gathering and disposal) to Diamondback under long-term, fixed-fee contracts. For more information, please visit www.rattlermidstream.com.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This press release may include forward-looking statements within the meaning of the federal securities laws. Statements that do not relate strictly to historical or current facts are forward-looking. These statements contain words such as “anticipate,” “if,” “will” and “expect” and involve risks and uncertainties including, among others, that Rattler’s business plans may change as circumstances warrant. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Rattler’s prospectus and SEC filings and Diamondback’s SEC filings, including its Forms 10-K, 10-Q and 8-K. Each of Rattler and Diamondback undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.



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