New York, February 11, 2024, The Europe Today: U.S. shale oil giants Diamondback Energy and Endeavor Energy Resources are on the verge of finalizing a significant cash-and-stock deal estimated at around $25 billion. The impending merger would result in the creation of an oil and gas powerhouse valued at more than $50 billion, making it the largest, pure-play oil producer in the prolific Permian shale field.
Sources close to the negotiations suggest that an official announcement from Diamondback Energy could be imminent, potentially as early as Monday. Under the terms of the deal, Diamondback shareholders are expected to hold more than half of the shares in the combined entities.
In December, Reuters reported that Endeavor Energy Partners, the largest privately held oil and gas producer in the Permian basin, was actively exploring a sale, with an estimated valuation ranging between $25 billion and $30 billion. The merger with Diamondback Energy aligns with this strategic exploration and could significantly reshape the landscape of the U.S. shale oil sector.
The combined company resulting from the merger would claim the position of the third-largest oil and gas producer in the Permian, a premier oilfield straddling West Texas and New Mexico. This consolidation would place the company’s oil and gas production volumes behind industry giants Exxon Mobil and Chevron, both of which have recently announced substantial deals.
As of now, Diamondback Energy and Endeavor Energy Resources have not issued official comments regarding the ongoing merger discussions. The completion of this deal is poised to have a transformative impact on the competitive dynamics within the Permian shale field and the broader U.S. oil and gas sector.