Last December, QEP Resources reached an agreement with Diamondback Energy, Inc. (FANG - Free Report) wherein the latter will acquire the former in an all-stock deal worth $2.2 billion comprising $1.6-billion net debt as of Sep 30.
This move will provide QEP Resources shareholders with 0.05 shares of Diamondback common stock for each share held, accounting for an implied value to each QEP Resources stockholder of $2.29 per share as of the closing price on Dec 18.
QEP Resources’ president and CEO Tim Cutt states that “we believe that this strategic merger with Diamondback, along with the addition of the Guidon assets, provides our shareholders with an exciting investment opportunity, now and in the future. The large contiguous Tier-1 acreage position in the Northern Midland Basin is expected to lead to operational synergies and deliver capital efficiencies beyond what each company could achieve independently.”
However, lately, a conflict of interest was noticed between two shareholders of QEP Resources on the proposed acquisition of the company.
Institutional Shareholder Services, which is a QEP Resources shareholder, informed that it will vote in favor of the proposed acquisitionsignifying the transaction’s “credible strategic rationale and multiple levers for value creation”. Also, the company continues to recommend its shareholders to vote in favor of this transaction at the upcoming special meeting of QEP Resources stockholders on Mar 16.
In contrast, Glazer Capital LLC, which owns 5.7% of QEP Resources’ outstanding shares, decided to vote against the proposed deal as it considers it to be materially inadequate. The stakeholder believes that the recent surge in crude price makes the firm more valuable than the deal amount clinched in December.
The outcome of this contention will only be known next week following the special meeting of QEP Resources.
Brief on the Company
QEP Resources is a leading independent energy company engaged in exploration, development and production of natural gas, crude oil and natural gas liquids. Its operations are currently focused on the Northern (primarily in North Dakota) and the Southern regions (mainly in Texas) of the United States.
Zacks Rank & Key Picks
QEP Resources currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Matador Resources Company (MTDR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Denbury Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Last December, QEP Resources reached an agreement with Diamondback Energy, Inc. (FANG - Free Report) wherein the latter will acquire the former in an all-stock deal worth $2.2 billion comprising $1.6-billion net debt as of Sep 30.
This move will provide QEP Resources shareholders with 0.05 shares of Diamondback common stock for each share held, accounting for an implied value to each QEP Resources stockholder of $2.29 per share as of the closing price on Dec 18.
QEP Resources’ president and CEO Tim Cutt states that “we believe that this strategic merger with Diamondback, along with the addition of the Guidon assets, provides our shareholders with an exciting investment opportunity, now and in the future. The large contiguous Tier-1 acreage position in the Northern Midland Basin is expected to lead to operational synergies and deliver capital efficiencies beyond what each company could achieve independently.”
However, lately, a conflict of interest was noticed between two shareholders of QEP Resources on the proposed acquisition of the company.
Institutional Shareholder Services, which is a QEP Resources shareholder, informed that it will vote in favor of the proposed acquisitionsignifying the transaction’s “credible strategic rationale and multiple levers for value creation”. Also, the company continues to recommend its shareholders to vote in favor of this transaction at the upcoming special meeting of QEP Resources stockholders on Mar 16.
In contrast, Glazer Capital LLC, which owns 5.7% of QEP Resources’ outstanding shares, decided to vote against the proposed deal as it considers it to be materially inadequate. The stakeholder believes that the recent surge in crude price makes the firm more valuable than the deal amount clinched in December.
The outcome of this contention will only be known next week following the special meeting of QEP Resources.
Brief on the Company
QEP Resources is a leading independent energy company engaged in exploration, development and production of natural gas, crude oil and natural gas liquids. Its operations are currently focused on the Northern (primarily in North Dakota) and the Southern regions (mainly in Texas) of the United States.
Zacks Rank & Key Picks
QEP Resources currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Matador Resources Company (MTDR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Denbury Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Smartest stock for 5G telecom
Safest investment in 5G hardware
Single best 5G buy of all!
Download now. Today the report is FREE >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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