Big deal in the Permian.
Diamondback Energy acquires Energen in $9B all-stock transaction
In its second Permian deal of the month, Midland-based Diamondback Energy said this week it has agreed to acquire Energen Corp. of Birmingham, Ala., in an all-stock transaction valued at about $9.2 billion, including Energen’s net debt of $830 million. The combination increases Diamondback’s Tier One acres in the Permian Basin to 266,000 (an increase of 57 percent) and Diamondback’s estimated total net horizontal Permian drilling locations to 7,000 (an increase of more than 120 percent). Second quarter production was more than 222,000 boed (67 percent oil), an increase of 79 percent from Diamondback’s second quarter 2018 production. The transaction, expected to close in 2018Q4, gives Diamondback 390,000 net acres across the Midland and Delaware basins, an increaze of 85 percent from Diamondback’s 211,000 net acres as of June 30. Diamondback said in Tuesday’s announcement that other benefits include overlapping and adjacent acreage in Howard, Martin and Ward Counties, lease operating expense reduction, and combination of significant midstream assets in Delaware and Midland basins.
ol’Lawrence in Verhalen
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