Diamondback Energy Inc. priced a $3 billion offering of three tranches of debt on Nov. 20 as the Midland, Texas-based Permian producer continues cleanup work from its acquisition of Energen Corp., which closed roughly a year ago.

The offering comprises $1 billion of 2024 senior notes priced at 2.875%, $800 million of 2026 notes at 3.25%, and $1.2 billion of 2029 notes at 3.5%. Proceeds have been earmarked by Diamondback for note redemptions and to pay down debt, which was largely accrued through acquisitions.

Last August, Diamondback entered acquisitions totaling more than $10 billion after agreeing to buy Energen and private operator Ajax Resources LLC in the span of just one week. The company’s acquisition of Energen, the larger of the two transactions, tacked on about $830 million in debt to Diamondback’s balance sheet when it closed November 2018.

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