Diamondback Energy pays $1.6 billion to buy back $8 billion in shares

Diamondback Inc. (NYSE: DBI) is buying back $6 billion in stock and debt, the company said on Thursday, as it tries to keep its dividend growth from falling short of forecasts.

The company said it would also sell a small portion of its portfolio of common stock, a move that could raise an estimated $1 billion to $2 billion.

The company expects the dividend increase to be smaller than analysts had expected.

In a statement, Diamondback Chief Executive Officer Jim McElligott said the deal was made possible by a combination of strong fundamentals and strategic partnerships that will allow us to leverage our existing technology and business to deliver our strategic plans for the long-term.

“The purchase of stock is part of a broader plan to continue our momentum, McEllicott said.

The purchase comes as the stock has been climbing more than 3% in the last 12 months.

Diamondback is valued at $4.9 billion.