Diamondback Energy to buy Endeavor Energy in $26 billion deal

Business

Workers connect drill bits and drill collars, used to extract natural petroleum, on Endeavor Energy Resources’ Big Dog Drilling Rig 22 in the Permian basin outside of Midland, Texas.

Brittany Sowacke | Bloomberg | Getty Images

Diamondback Energy on Monday decided to buy the largest privately held oil and gas producer in the Permian basin, Endeavor Energy Partners, in a cash-and-stock deal for about $26 billion, including debt.

The deal comes after a new wave of consolidation in the prolific Permian basin to boost production, the biggest in 2023 being Exxon Mobil’s $60 billion deal for Pioneer Natural Resources.

The combined company would be the third largest oil and gas producer in the region behind Exxon and Chevron, with the latter also having announced recent deals.

However, the numerous deals has led the U.S. Federal Trade Commission to take a sharper look.

Endeavour’s operations span 350,000 net acres in the Midland portion of the Permian, which straddles West Texas and eastern New Mexico.

Fitch Ratings in November forecast that the company would generate about $1 billion of free cash flow in 2024.

Read original article here.

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