Diamondback to acquire Energen in US$9.2 billion Permian deal

Texas-based Diamondback Energy says an agreement has been reached for it to acquire Alabama-based Energen Corporation in a US$9.2 billion all-stock deal.

The transaction will create a major player in the Permian Basin, with combined production of about 225,000 boe/d and over 7,000 estimated horizontal drilling locations.

It also “adds critical mass for driving capital efficiencies in what is now truly becoming a manufacturing business,” Diamondback CEO Travis Stice said in a statement.

The company expects to apply US$2.0 billion worth of “synergies,” including well cost savings, overlapping adjacent acreage, combination of midstream assets, and the benefit of economies of scale.