Exhibit 10.1
wellsfargologo.jpg [wellsfargologo.jpg]
 
Wells Fargo Bank, National Association
 
1000 Louisiana Street, Suite 1200
 
Houston, TX 77002
 
 
 
 
 
August 28, 2019

Diamondback O&G LLC
500 West Texas, Suite 1200
Midland, Texas 79701
Attention: Teresa L. Dick

Re:    Consent Letter

Ladies and Gentlemen:

Reference is hereby made to that certain Second Amended and Restated Credit
Agreement, dated as of November 1, 2013 (as amended, supplemented or otherwise
modified prior to the date hereof, the “Credit Agreement”), by and among
Diamondback O&G LLC, as borrower (the “Borrower”), Diamondback Energy, Inc., as
parent guarantor (the “Parent Guarantor”), Wells Fargo Bank, National
Association, as administrative agent (the “Administrative Agent”), and the
lenders party thereto from time to time. Capitalized terms used herein without
definition shall have the meanings given to them in the Credit Agreement.
1.     Request for Consent. The Borrower has advised the Administrative Agent
and the Lenders that (a) it is contemplating entering into certain Swap
Agreements in respect of interest rates for United States Treasury securities
(such Swap Agreements, collectively, the “Subject Swap Agreements”) and (b) the
Loan Parties may be prohibited from entering into such Subject Swap Agreements
under Section 9.18 of the Credit Agreement. The Borrower has requested that the
Administrative Agent and the Lenders enter into this letter agreement (this
“Letter Agreement”) to evidence the Lenders’ consent to the Loan Parties
entering into the Subject Swap Agreements on the terms and conditions set forth
herein.
2.     Limited Consent. In reliance on the representations, warranties,
covenants, and agreements contained in this Letter Agreement, and
notwithstanding anything in Section 9.18 of the Credit Agreement or any other
provision of the Loan Documents that may prohibit the Loan Parties from entering
into the Subject Swap Agreements, Lenders constituting Majority Lenders hereby
consent to the Loan Parties entering into the Subject Swap Agreements, subject
to the following terms and conditions:
(a)the aggregate notional principal amount of United States Treasury securities
subject to the Subject Swap Agreements shall not, in any event, exceed
$3,000,000,000.00;
(b)the pricing and other economics of such Subject Swap Agreements are on
prevailing market terms;
(c)such Subject Swap Agreements are entered into by the applicable Loan
Party(ies) on or prior to December 31, 2019;
(d)such Subject Swap Agreements do not have a tenor extending beyond
December 31, 2020; and
(e)such Subject Swap Agreements shall be with an Approved Counterparty.
3.    Limitations on Consent. Nothing contained herein, nor any past indulgence
by the Administrative Agent or any Lender, nor any other action or inaction on
behalf of the Administrative Agent or any Lender, shall be deemed a consent to,
or waiver of, any other action or inaction of the Parent Guarantor, the
Borrower, or any of the other Loan Parties that constitutes (or would
constitute) a violation of any provision of the Credit Agreement or any other
Loan Document, or which results (or would result) in a Default or Event of
Default under the Credit Agreement

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or any other Loan Document. This Letter Agreement shall not constitute a course
of conduct or dealing among the parties. The Administrative Agent and the
Lenders shall have no obligation to grant any future waivers, consents or
amendments with respect to the Credit Agreement or any other Loan Document, and
the parties hereto agree that the limited consent provided in paragraph 2 above
shall constitute a one-time consent and shall not waive, affect, or diminish any
right of the Administrative Agent and/or the Lenders to hereafter demand strict
compliance with the Credit Agreement and the other Loan Documents.

4.    Miscellaneous.    

(a)    Confirmation. The provisions of the Credit Agreement (subject to the
limited consent provided in this Letter Agreement) shall remain in full force
and effect following the effectiveness of this Letter Agreement.

(b)    Ratification and Affirmation; Representations and Warranties. Each of the
Guarantors and the Borrower hereby (i) ratifies and affirms its obligations
under, and acknowledges its continued liability under, each Loan Document to
which it is a party and agrees that each Loan Document to which it is a party
remains in full force and effect, subject to the consent granted in this Letter
Agreement and (ii) represents and warrants to the Lenders that as of the date
hereof, after giving effect to the terms of this Letter Agreement:

(A)    all of the representations and warranties contained in each Loan Document
to which it is a party are true and correct in all material respects (or, if
already qualified by materiality, Material Adverse Effect or a similar
qualification, true and correct in all respects), except to the extent any such
representations and warranties are expressly limited to an earlier date, in
which case such representations and warranties shall be true and correct in all
material respects (or, if already qualified by materiality, Material Adverse
Effect or a similar qualification, true and correct in all respects) as of such
specified earlier date, except with respect to actions permitted by this Letter
Agreement;

(B)    no Default or Event of Default has occurred and is continuing; and

(C)    no event or events have occurred which individually or in the aggregate
could reasonably be expected to have a Material Adverse Effect.

(c)    Counterparts. This Letter Agreement may be executed by one or more of the
parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of this Letter Agreement by facsimile or electronic
transmission shall be effective as delivery of a manually executed counterpart
hereof.

(d)    NO ORAL AGREEMENT. THIS LETTER AGREEMENT, THE CREDIT AGREEMENT AND THE
OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

(e)    GOVERNING LAW. THIS LETTER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

(f)    Payment of Expenses. Subject to the limitations set forth in Section
12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the
Administrative Agent for all of its reasonable out-of-pocket expenses incurred
in connection with this Letter Agreement, any other documents prepared in
connection herewith and the transactions contemplated hereby, including, without
limitation, the reasonable fees, charges and disbursements of counsel to the
Administrative Agent.

(g)    Severability. Any provision of this Letter Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without

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invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

(h)    Successors and Assigns. This Letter Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

(i)    Loan Document. This Letter Agreement is a Loan Document.

[Signature Pages Follow]

PAGE 3

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Very truly yours,
 
 
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and a Lender
 
 
 
 
By:
/s/ Todd Fogle
Name: Todd Fogle
Title: Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender
 
 
 
 
By:
/s/ Wes Fontana
Name: Wes Fontana
Title: Managing Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender
 
 
 
 
By:
/s/ Nupur Kumar
Name: Nupur Kumar
Title: Authorized Signatory
 
 
By:
/s/ Chris Zybrick
Name: Chris Zybrick
Title: Authorized Signatory

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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THE BANK OF NOVA SCOTIA, HOUSTON BRANCH, as a Lender
 
 
 
 
By:
/s/ Ryan Knape
Name: Ryan Knape
Title: Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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U.S. BANK NATIONAL ASSOCIATION, as a Lender
 
 
 
 
By:
/s/ Tara R. McLean
Name: Tara R. McLean
Title: Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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JPMORGAN CHASE BANK, N.A., as a Lender
 
 
 
 
By:
 
Name:
Title:

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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GOLDMAN SACHS BANK USA, as a Lender
 
 
 
 
By:
/s/ Jamie Minieri
Name: Jamie Minieri
Title: Authorized Signatory

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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CITIBANK, N.A., as a Lender
 
 
 
 
By:
/s/ Jeff Ard
Name: Jeff Ard
Title: Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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BANK OF AMERICA, N.A., as a Lender
 
 
 
 
By:
 
Name:
Title:

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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SUNTRUST BANK, as a Lender
 
 
 
 
By:
/s/ Arize Agumadu
Name: Arize Agumadu
Title: Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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ZIONS BANCORPORATION, N.A., dba AMEGY BANK, as a Lender
 
 
 
 
By:
 
Name:
Title:

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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ING CAPITAL LLC, as a Lender
 
 
 
 
By:
/s/ Charles Hall
Name: Charles Hall
Title: Managing Director
 
 
By:
/s/ Scott Lamoreaux
Name: Scott Lamoreaux
Title: Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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COMMONWEALTH BANK OF AUSTRALIA, as a Lender
 
 
 
 
By:
/s/ Emma Raine
Name: Emma Raine
Title: Senior Associate

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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BOKF, N.A. dba BANK OF OKLAHOMA, as a Lender
 
 
 
 
By:
/s/ John Krenger
Name: John Krenger
Title: Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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BRANCH BANKING AND TRUST COMPANY, as a Lender
 
 
 
 
By:
/s/ Parul June
Name: Parul June
Title: Senior Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH, as a Lender
 
 
 
 
By:
/s/ Donovan C. Broussard
Name: Donovan C. Broussard
Title: Authorized Signatory
 
 
By:
/s/ Scott W. Danvers
Name: Scott W. Danvers
Title: Authorized Signatory

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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PNC BANK, NATIONAL ASSOCIATION, as a Lender
 
 
 
 
By:
/s/ Sandra Salazar
Name: Sandra Salazar
Title: Managing Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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IBERIABANK, as a Lender
 
 
 
 
By:
/s/ Stacey Goldstein
Name: Stacy Goldstein
Title: Senior Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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BBVA USA, as a Lender
 
 
 
 
By:
/s/ Julia Barnhill
Name: Julia Barnhill
Title: Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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THE TORONTO-DOMINION BANK, NEW YORK BRANCH, as a Lender
 
 
 
 
By:
/s/ Michael Borowiecki
Name: Michael Borowiecki
Title: Authorized Signatory

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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REGIONS BANK, as a Lender
 
 
 
 
By:
/s/ Stuart Murray
Name: Stuart Murray
Title: Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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MIZUHO BANK, LTD, as a Lender
 
 
 
 
By:
/s/ Edward Sacks
Name: Edward Sacks
Title: Authorized Signatory

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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THE HUNTINGTON NATIONAL BANK, as a Lender
 
 
 
 
By:
/s/ Gregory R. Ryan
Name: Gregory R. Ryan
Title: Managing Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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SUMITOMO MITSUI BANKING CORPORATION, as a Lender
 
 
 
 
By:
/s/ Michael Maguire
Name: Michael Maguire
Title: Managing Director

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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COMERICA BANK, as a Lender
 
 
 
 
By:
/s/ Garret R. Merrell
Name: Garret R. Merrell
Title: Vice President

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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Accepted and Agreed to:
DIAMONDBACK O&G LLC, as the Borrower
 
 
 
 
By:
/s/ Teresa L. Dick
Name: Teresa L. Dick
Title: Executive Vice President, Chief Accounting Officer, and Assistant
Secretary
 
 
DIAMONDBACK ENERGY, INC., as the Parent Guarantor
 
 
 
 
By:
/s/ Teresa L. Dick
Name: Teresa L. Dick
Title: Executive Vice President, Chief Accounting Officer, and Assistant
Secretary
 
 
DIAMONDBACK E&P LLC, as a Guarantor
 
 
 
 
By:
/s/ Teresa L. Dick
Name: Teresa L. Dick
Title: Executive Vice President, Chief Accounting Officer, and Assistant
Secretary
 
 
ENERGEN CORPORATION, as a Guarantor
 
 
 
 
By:
/s/ Teresa L. Dick
Name: Teresa L. Dick
Title: Executive Vice President, Chief Accounting Officer, and Assistant
Secretary
 
 
ENERGEN RESOURCES CORPORATION, as a Guarantor
 
 
 
 
By:
/s/ Teresa L. Dick
Name: Teresa L. Dick
Title: Executive Vice President, Chief Accounting Officer, and Assistant
Secretary

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC

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EGN SERVICES, INC., as a Guarantor
 
 
 
 
By:
/s/ Teresa L. Dick
Name: Teresa L. Dick
Title: Executive Vice President, Chief Accounting Officer, and Assistant
Secretary

Signature Page to Consent Letter Agreement Regarding Interest Rate Hedging -
Diamondback O&G LLC