Diamondback Vitality has entered right into a definitive settlement to accumulate Double Eagle, considerably increasing its acreage and presence within the Permian basin. The deal holds a price of roughly $4.08 billion, with Diamondback providing up 6.9 million shares of frequent inventory and $3 billion money in change for Double Eagle’s belongings.
Diamondback additionally introduced plans to promote $1.5 billion of non-core belongings to speed up professional forma debt discount in an effort to keep its sturdy steadiness sheet.
“Double Eagle is essentially the most enticing asset remaining within the Midland basin,” acknowledged Travis Stice, Chairman and Chief Govt Officer of Diamondback. “With 407 places adjoining to our core place, this largely undeveloped asset provides high-quality stock that instantly competes for capital. Moreover, we see worth uplift to our current stock as acreage overlap permits for significant lateral size extensions and infrastructure synergies. We sit up for seamlessly implementing our business main value and operational construction on this differentiated asset.”
“The Permian basin continues to consolidate quickly. We’ve labored tirelessly during the last 13 years to place Diamondback to have the longest period of top of the range, low-breakeven stock; a place we’re solidifying with right now’s announcement,” added Stice.
“We’re excited to announce our settlement with Diamondback,” Cody Campbell and John Sellers, Co-CEOs of Double Eagle, commented. “We consider our crew has constructed a very standout asset that additional will increase Diamondback’s high-quality stock. It was essential to us that we keep the stewardship of this asset going ahead not solely with a world-class Midland operator but additionally a gaggle that shares our core values and understands the significance of neighborhood impression in West Texas.”
As a part of this settlement, Diamondback and Double Eagle have additionally agreed to speed up improvement on a portion of Diamondback’s non-core southern Midland basin acreage. This acceleration is anticipated to carry ahead Internet Asset Worth (“NAV”) to Diamondback by creating Diamondback’s decrease high quality acreage at a quicker tempo than present expectations. In consequence, Diamondback expects important Free Money Circulation progress in 2026 and past with minimal capital deployment by this accelerated improvement plan.
Asset Highlights: Consolidated Scale within the Midland Basin
- Roughly 40,000 internet acres within the core of the Midland Basin
- Estimated run-rate manufacturing of roughly 27 MBo/d (69% oil)
- $200 million of capital expenditures anticipated in 2025 at present Midland basin nicely prices of $555 to $605 per foot
- Extends professional forma stock life within the core of the Midland basin
- 68% of the asset is undeveloped with 407 estimated gross (342 internet) horizontal places in major improvement targets with a mean lateral size of roughly >11,000’
- 44 gross upside places primarily situated in rising zones
Diamondback expects the transaction to shut on April 1, 2025, topic to customary closing situations and regulatory approval.
