Diamondback Energy, still awaiting regulatory approval to close its $26 billion acquisition of Endeavor Energy Resources, has started to prune non-core assets from its portfolio, the company said in an Aug. 5 letter to shareholders.

During the second quarter, Diamondback said it received proceeds of approximately $150 million as a result of continued “portfolio optimization,” according to a letter from Diamondback Chairman and CEO Travis D. Stice.

“This included a $95 million sale of non-operated properties in the Delaware Basin as well as other smaller non-core transactions,” Stice said.

Diamondback received a larger payment from the sale of WTG Midstream Holdings LLC to Energy Transfer LP.

In July, Energy Transfer completed a cash-and-stock deal for WTG valued at $3.25 billion. Total pre-tax consideration to Diamondback was valued at approximately $375 million, including cash and approximately 10.1 million Energy Transfer common units, Diamondback said.

“The WTG sale represents ~3.5x multiple on invested capital for Diamondback,” Stice said.

WTG owners Diamondback, Stonepeak and the Davis Estate received $2.45 billion in cash and approximately 50.8 newly issued shares of Energy Transfer common units, according to the terms of the initial May agreement.

As for the pending Endeavor deal, Stice had little new information to offer shareholders. In April, the company received a second request for information from the Federal Trade Commission (FTC) in connection with the deal.

“We continue to work cooperatively with the FTC to comply with its requests and expect the Endeavor transaction to close in the third or fourth quarter of this year,” Stice said. “We will provide more information when possible. I appreciate the tremendous effort from both organizations as we move towards closing.”

Diamondback said in April that shareholders had voted to approve the merger.

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