• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 mins How Far Have We Really Gotten With Alternative Energy
  • 56 mins Bad news for e-cars keeps coming
  • 11 days What fool thought this was a good idea...
  • 9 days A question...
  • 14 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 14 days They pay YOU to TAKE Natural Gas

Diamondback Seeks Buyers For Permian Assets

In a week of deal talk in the American shale patch that saw reports emerge of Exxon’s informal discussions about the potential acquisition of Pioneer Natural Resources, Diamondback energy has announced it is looking to sell its non-core assets in the Permian Basin. 

Diamondback (NASDAQ:FANG) is up over 2.85% in the past five days as news of Exxon-Pioneer talks suggested that big deal-making is back in U.S. shale. 

The driller is actively working with a financial adviser to find buyers for non-core assets in the western Permian, Bloomberg reported, citing unnamed sources familiar with the matter. Bloomberg also noted that Diamondback had now doubled its asset sale target to $1 billion, and based on Wednesday’s share price, the company is worth just under $27 billion.

Also on Wednesday, confidence in Diamondback’s growth potential was given a further boost when institutional investor Paragon Advisors LLC acquired $1.6 million in shares. 

Diamondback has an upstream and midstream segment, with the upstream largely centered around the western Permian. 

Earlier this week, the shale patch was injected with new life following reports that Exxon was in early talks with Pioneer Natural Resources. That news sent shale drillers' shares soaring, though there is no guarantee this will move beyond the informal talks stage. 

Pioneer (NYSE:PXD) has gained 7.24% in the past five days.

Also this week, Ovintic Inc agreed to acquire $4.3 billion in Permian assets from EnCap Investments. The deal will expand Ovintiv’s portfolio by 65,000 acres. The buyer will pay for the assets with a combination featuring $3.125 billion in cash and 32.6 million shares.

The Permian basin is an increasingly attractive venue for E&P companies as oil prices rise and bullish sentiment persists.

By Charles Kennedy for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News