American Oil and Gas Reporter - June 2022 - 21

Diamondback Moves To
Absorb Rattler Midstream
MIDLAND-Diamondback Energy
Inc. and Rattler Midstream LP have
entered a definitive agreement for
Diamondback to acquire all the
publicly held common units
representing the limited partner
interests in Rattler not already owned
by Diamondback and its subsidiaries.
Diamondback says the agreement
provides for an all-stock transaction
whereby each of Rattler's public
unitholders will receive a 0.113
fractional share of common stock in
Diamondback in exchange for each
Rattler common unit owned, an
exchange ratio that implies a premium of
17.3% for Rattler common units based
on the closing prices of Rattler's
common units and Diamondback's
common stock as of May 13, 2022, and a
premium of 9.3% based on Rattler's and
Diamondback's 30-day volume-weighted
average trading price as of the same date.
" 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, " states Travis Stice, chief
executive officer of Diamondback and
of Rattler's general partner. " This
merger will allow both companies to
benefit from the simplicity and scale of
the combined entity going forward. "
Diamondback predicts the
transaction will close in the third
quarter of 2022. ❒
Gas Storage Volumes
More Than 15% Below
Five-Year Averages
WASHINGTON-Underground
natural gas storage in the United States
stood at 1.902 trillion cubic feet on May
27, 15.1% below the five-year average,
according to the U.S. Energy Information
Administration. That was up 412 billion
cubic feet from the 1.490 Tcf in storage
on April 27, which was 17.0% below the
five-year average. The May 27 storage
number was 397 Bcf lower than a year
ago, when gas storage stood at 2.299 Tcf.
Gas storage in the East Region was
357 Bcf on May 27, 14.6% below the
five-year average, and 119 Bcf more than
on April 22, when storage stood at 238
Bcf, 20.9% below the five-year average.
East Region gas storage on April 22 fell
52 Bcf from a year ago, EIA reports.
In the Midwest, gas storage stood at
420 Bcf on May 27, 15.0% beneath the
five-year average and 111 Bcf more
than the 309 Bcf in storage on April 22,
which was 19.7% below the five-year
average. May 27 Midwest gas storage
was 99 Bcf less than a year ago.
In the Mountain Region, EIA
continues, gas storage was 113 Bcf on
May 27, 15.0% below the five-year
average and 23 Bcf more than the 90
Bcf stored on April 22, which was
14.3% below the five-year average. Gas
storage in the Mountain Region was 37
Bcf less than a year ago.
The Pacific Region's gas in storage
was 195 Bcf on May 27, 20.4% below the
five-year average and 24 Bcf more than
the 171 Bcf stored on April 22, which was
13.2% below the five-year average.
Pacific Region gas storage on May 27 was
down 71 Bcf from a year ago.
In the South-Central Region, gas
storage levels on May 27 were 817 Bcf,
17.0% below the five-year average and
136 Bcf more than the 681 Bcf in storage
on April 22, which was 15.7% below the
five-year average. The April 22 gas
storage level for the South-Central Region
was down 138 Bcf from a year ago. ❒
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American Oil and Gas Reporter - June 2022

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