Midland-based Diamondback Energy said Friday it agreed to acquire Double Eagle IV in a cash-and-stock deal of about $4.08 billion. Diamondback continues to strengthen its position in Permian Basin after last year’s $26 billion deal to buy privately held Endeavor Energy Partners to make it the third largest oil and gas producer in Permian.
The acquisition will give Diamondback access to an additional 40,000 net acres in the core of the Midland Basin with estimated production of 27,000 barrels of oil per day.
Diamondback said it will pay $3 billion in cash and about 6.9 million shares of common stock. Closing is expected April 1. Diamondback also committed to selling at least $1.5 billion of non-core assets to reduce debt.
Travis Stice, chairman and CEO, said, “Double Eagle is the most attractive asset remaining in the Midland Basin. With 407 locations adjacent to our core position, this largely undeveloped asset adds high quality inventory… The Permian Basin continues to consolidate rapidly. We have worked tirelessly over the last 13 years to position Diamondback to have the longest duration of high quality, low breakeven inventory.”