Transaction Details: 

Diamondback Energy, Inc. (NASDAQ: FANG) announced its acquisition of Double Eagle IV Midco, LLC in a $6 billion cash-and-stock transaction, consisting of ~$3 billion in cash and 6.9 million shares of Diamondback stock. The deal adds approximately 40,000 net acres in the core Midland Basin and an estimated 27,000 BOEPD (69% oil) of run-rate production. Notably, the acquired position includes 407 gross (342 net) high-return horizontal locations with an average lateral length of over 11,000 feet, plus an additional 44 gross upside locations in emerging zones.

Diamondback CEO Travis Stice called it “the most attractive asset remaining in the Midland Basin,” noting that the deal brings high-quality, largely undeveloped inventory directly adjacent to Diamondback’s core acreage. He added, “We are confident that we can quickly reduce debt both naturally through our consistent and growing Free Cash Flow and through our commitment to sell at least $1.5 billion of non-core assets.”

The acquisition is expected to be immediately accretive to all key financial metrics and enhance 2026 Free Cash Flow per share by 5%+. Diamondback plans to fund the transaction through cash on hand, credit facility borrowings, and/or term loans and notes. It also committed to a $1.5 billion non-core asset divestiture to reduce pro forma net debt and maintain long-term leverage between $6–8 billion.

Double Eagle co-CEOs Cody Campbell and John Sellers commented, “It was important to us that we maintain the stewardship of this asset going forward not only with a world-class Midland operator but also a group that shares our core values.”

The deal is expected to close on April 1, 2025, pending customary regulatory approvals. Advising Diamondback were TPH&Co and Kirkland & Ellis LLP, while RBC Capital Markets, Goldman Sachs, J.P. Morgan, and Vinson & Elkins LLP advised Double Eagle.

Permian - Midland Basin Deal Activity In Last 12 Months