Feb 11 (Reuters) – U.S. shale oil rivals Diamondback Energy (FANG.O), opens new tab and Endeavor Energy Resources are close to finalizing a roughly $25 billion cash-and-stock deal that would create an oil and gas company valued at more than $50 billion, sources said on Sunday.
Diamondback could announce a transaction as soon as Monday that would give its shareholders more than half of the combined companies, the people said.
Endeavor and Diamondback did not immediately respond to a request for comment.
“This is a layup in terms of the acreage overlap and fit,” said Dan Pickering, chief investment officer of Pickering Energy Partners. The combined company would replace Pioneer Natural Resources, which is being acquired by Exxon, as the biggest pure-play Permian producer, he said.
The largest Permian producers are consolidating in a race to lock in future drilling inventory and output from the largest U.S. oilfield. The deal is likely to put additional pressure on the remaining firms to combine for greater efficiencies and scale, analysts said.
Diamondback fended off competition from other parties including ConocoPhillips (COP.N), opens new tab, the Wall Street Journal earlier reported.
Reuters in December reported that Endeavor Energy Partners was exploring a sale that could value the largest privately held oil and gas producer in the Permian basin at between $25 billion and $30 billion.
The sale would come almost 45 years after Texas oilman Autry Stephens started the company that would become Endeavor.
Endeavor’s operations span 350,000 net acres (1,416 square kilometers) in the Midland portion of the Permian shale basin that straddles West Texas and eastern New Mexico.
Reporting by Utkarsh Shetti in Bengaluru; additional reporting by Gary McWilliams in Houston; Editing by Josie Kao and Mark Porter
Michael Tanner help co-founded Energy News Beat to deliver the best energy news content. When not on ENB - he works in the oil and gas business for a private oil & gas operator based in Dallas, Texas.
Michael graduated from Colorado School of Mines with a B.S. in Economics and Petroleum Engineering and a M.S. in Mineral and Energy Economics from Colorado School of Mines.
Is nuclear energy the answer to a sustainable future? Experts are divided August 22, 2023 Mariel Alumit Nuclear power has been touted as a proven, safe way of producing clean energy, but why isn’t it more […]
Daily Standup Top Stories How will ERCOT and Texas learn from the past on the grid? April 23, 2025 Clark Savage ENB Pub Note: This is an essential update from Doug Sheridan, a LinkedIn Author and […]
The guys continue on their race to be legends in their own minds, and Michael admits he is better looking than Stu. Enough of the pleasantries; The top stories are nat gas and the 9th […]
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.