BUZZ-Diamondback rises after $4.08 billion deal for Midland assets

Shares of oil and natural gas company Diamondback Energy FANG.O rise 1.2% to $158.90 premarket

Co to buy certain units of Encap-backed energy producer Double Eagle in about $4.08 bln cash-and-stock deal

Co to pay $3 billion in cash and 6.9 million shares, and transaction is expected to close on April 1

Deal would give FANG access to about 40,000 net acres in Midland basin, one of the largest assets in top U.S. oilfield - the Permian basin

FANG says it would separately sell at least $1.5 billion of non-core assets to reduce pro-forma debt

FANG expects to reduce net debt to $10 billion and maintain long-term leverage of $6-$8 billion

FANG shares are down 4.2% YTD