Diamondback nears $5 billion deal to buy drilling portfolio from Double Eagle, FT says (updated)

Diamondback Energy

Today 19:36

Adds details about the deal, background
Nov 15 (Reuters) - US shale producer Diamondback Energy FANG.O is nearing a roughly $5 billion deal to acquire a drilling portfolio from Texas-based energy producer Double Eagle, expanding its footprint in the oil-rich Permian Basin in Texas, the Financial Times reported, citing people familiar with the matter.
Here are some details:
As part of the deal, Diamondback will pay about $5 billion to buy Double Eagle V, which is backed by private equity firm EnCap Investments, FT said
Reuters could not immediately verify the report. Diamondback, Double Eagle and EnCap did not immediately respond to requests for comment outside regular business hours
The report comes after Diamondback and private equity firm KKR KKR.N agreed last week to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure firm in the Permian Basin
The Midland, Texas-based company has been doubling down on the Permian Basin, which straddles West Texas and New Mexico, striking a $26-billion deal in 2024 to buy rival Endeavor Energy Partners to become the third-largest producer in the region
Diamondback bought certain units of Double Eagle for $4.08 billion in cash and stock in February 2025
The new acquisition could be announced as soon as early next week, with the deal comprising both cash and stock, according to FT

 (Reporting by Sumedha Mukherjee in Bengaluru; Editing by Andrea Ricci)
 ((Sumedha.Mukherjee2@thomsonreuters.com))