Diamondback Energy to buy Endeavor Energy in $26 billion deal (updated)
12/02/2024 11:10
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Feb 12 (Reuters) - Diamondback Energy FANG.O 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 XOM.N $60 billion deal for Pioneer Natural
Resources PXD.N .
The combined company would be the third largest oil and gas
producer in the region behind Exxon and Chevron CVX.N , 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 (1,416 square
kilometres) 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.
(Reporting by Seher Dareen in Bengaluru; Editing by Arun
Koyyur)
((Seher.Dareen@thomsonreuters.com; If in India call +91 74832
70128, if within U.S. call +1 646 223 8780;))