After almost a year and a half in bankruptcy reorganization, Breitburn Energy Partners LP is fielding suitors for its assets, including an unsolicited offer for its Midland Basin acreage from Diamondback Energy Inc. (NASDAQ: FANG).
In a letter filed in bankruptcy court in late September, Diamondback CEO Travis Stice offered $675 million for the company’s Midland Basin acreage. In an unusual move Oct. 3, Diamondback “bid against itself” and increased its offer for assets in Howard, Martin, Midland and Glasscock counties, Texas to $725 million, according to bankruptcy documents.
Breitburn had not responded to Diamondback’s proposal as of Oct. 5, according to court documents. Committees of unsecured debtors and equity security holders have filed motions to explore sales for some of Breitburn’s assets.