Diamondback Energy Inc. is making a bold move in the Permian Basin, announcing Tuesday a cash-and-stock acquisition of Midland Basin assets from Double Eagle IV Midco LLC. The transaction, valued at billions, underscores Diamondback’s aggressive expansion strategy as it secures some of the last prime drilling locations in the region.
The Deal: A High-Stakes Play in Oil & Gas
The agreement involves a $3 billion cash payment along with 6.9 million shares of Diamondback’s common stock, according to a company statement. With this purchase, Diamondback cements its position as a major force in the Midland Basin, acquiring roughly 40,000 net acres and 44 additional gross upside locations in emerging zones.
“Double Eagle is the most attractive asset remaining in the Midland Basin,” said Diamondback CEO and Chairman Travis Stice. “With 407 locations adjacent to our core position, this largely undeveloped asset adds high-quality inventory that immediately competes for capital. Additionally, we see value uplift to our existing inventory as acreage overlap allows for meaningful lateral length extensions and infrastructure synergies.”
