Diamondback Energy, an oil and natural gas company, has entered into a definitive agreement to acquire certain subsidiaries of Double Eagle IV Midco, LLC for approximately 6.9 million shares of Diamondback common stock and $3 billion in cash, subject to customary adjustments. The cash portion of the transaction will be funded through cash on hand, borrowings, and proceeds from term loans and senior notes. The acquisition includes 407 locations adjacent to Diamondback’s core acreage in the Midland Basin, adding high-quality inventory that aligns with the company’s long-term strategy. Diamondback and Double Eagle have also agreed to accelerate the development of Diamondback’s non-core southern Midland Basin acreage, which is expected to enhance Free Cash Flow growth in 2026 and beyond.
Diamondback has committed to selling at least $1.5 billion in non-core assets to reduce debt. CEO of Diamondback Travis Stice emphasized the strategic importance of this acquisition, highlighting its contribution to Diamondback’s inventory and operational efficiency. Double Eagle Executives Cody Campbell and John Sellers expressed confidence in Diamondback’s ability to manage the assets, stating “We are excited to announce our agreement with Diamondback. We believe our team has built a truly standout asset that further increases Diamondback’s high-quality inventory. 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 and understands the importance of community impact in West Texas.”
