Verde Clean Fuels, Inc. Announces $50 Million Equity Investment by Cottonmouth Ventures, LLC, a Wholly-Owned Subsidiary of Diamondback Energy, Inc.
Summary
Diamondback is a strategic industry partner at the forefront of bringing sustainable operational practices to the oilfield and supporting the overall transition to clean energy. The proposed plants to be jointly developed by the Parties would produce fully-refined gasoline utilizing Verdes patented (STG+\xae) process from associated natural gas feedstock supplied from Diamondbacks operations in the Permian Basin.Effective at closing of the investment, Verde will expand its Board of Directors to eight members and appoint a new director to be designated by Cottonmouth. Verdes syngas-to-gasoline plus (STG+\xae) process converts syngas, derived from diverse feedstocks (including biomass or stranded or flared natural gas) into fully finished liquid fuels that require no additional refining, such as Reformulated Blend-stock for Oxygenate Blending (RBOB) gasoline.For more information, please visit www.verdecleanfuels.com.Diamondback Energy is an independent oil and natural gas company headquartered in Midland, Texas, focused on the development of unconventional, onshore oil and natural gas reserves in the Permian Basin. These risks and uncertainties include, but are not limited to: the risk that one or more closing conditions may not be satisfied; the failure to realize the anticipated benefits of the investment; general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the failure to develop its first commercial facility, whether due to the inability to obtain the required financing or for any other reason; the failure to develop any additional commercial facility for any reason; the risks and uncertainties relating to the implementation of Verdes business strategy and the timing of any business milestone; Verdes ability to obtain financing in connection with future transactions; and the effects of competition on Verdes business strategy. Should one or more of the risks or uncertainties described herein occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements.