• 3 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 6 minutes Your idea of oil/gas prices next ten years
  • 12 minutes WTI Heading for $60
  • 31 mins Is California becoming a National Security Risk to the U.S.?
  • 9 hours Plastic Myth-Busters
  • 8 hours At U.N. climate talks, US Administration Plans Sideshow On Coal
  • 3 hours A Sane Take on Nord Stream 2
  • 10 hours Good Sign for US Farmers: Soybean Prices Signals US-China Trade Deal Progress
  • 3 hours I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 17 hours Soybean sale to China down 94%
  • 8 hours UK Power and loss of power stations
  • 7 hours OPEC Builds Case For Oil Supply Cut
  • 16 hours what's up with NG?
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Pros and Cons of Coal
  • 1 day Here We Go Again: EU Will Hit Back If U.S. Imposes Car Tariffs
The New Bear Market In Oil

The New Bear Market In Oil

Many factors that boosted oil…

Diamondback’s $9.2B Energen Deal Creates Third-Largest Permian Player

permian well

Diamondback Energy will buy Energen in all-stock transaction valued at around US$9.2 billion, which will create the third-largest pure play Permian company in terms of production, Diamondback said in a statement on Tuesday.

The value of the deal, unanimously approved by the Board of Directors of each company, includes Energen’s net debt of US$830 million as of June 30, 2018.

Earlier this year, Energen was a potential takeover target of activist investor Carl Icahn and hedge fund manager Keith Meister’s Corvex Management.

Under pressure from Corvex, Energen appointed in March two independent directors to its expanded board of directors, and promised to “promptly conduct an in-depth review, assisted by its financial advisers, of the company’s business plan, competitive positioning, and potential strategic alternatives” as part of efforts to enhance shareholder value.

Diamondback Energy’s deal with Energen comes just a week after Diamondback announced it had entered into a definitive agreement to buy all leasehold interests and related assets of Ajax Resources in the northern Midland Basin for US$900 million in cash and 2.58 million shares of Diamondback common stock.

The two announced acquisitions take Diamondback’s combined pro forma Q2 2018 production to over 222,000 boe/d, of which 67 percent was oil—the third-largest production for a pure play company in the Permian Basin, the company said. This is an increase of 79 percent from Diamondback’s Q2 2018 production of 124,700 boe/d.

Related: Oil Prices Jump As Saudis Cap Oil Supply

“This transaction represents a transformational moment for both Diamondback and Energen shareholders as they are set to benefit from owning the premier large cap Permian independent with industry leading production growth, operating efficiency, margins and capital productivity supporting an increasing capital return program,” Diamondback CEO Travis Stice said.

The transaction is the latest in this year’s consolidation push in the U.S. shale patch, after Concho Resources struck a deal to acquire natural gas peer RSP Permian for US$9.5 billion in an all-stock transaction that is the biggest acquisition in the sector since 2012.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News