Diamondback Energy Acquires Double Eagle Assets for $4.08 Billion
Diamondback Energy announced the acquisition of certain units from Double Eagle, an energy producer headquartered in Texas, in a cash-and-stock transaction valued at approximately $4.08 billion.
To partially offset the acquisition cost, Diamondback will divest non-core assets worth at least $1.5 billion. This divestment aims to lower pro-forma debt and maintain leverage within the range of $6 billion to $8 billion in the long term.
Double Eagle boasts over 95,000 net acres in the Midland Basin, representing one of the last substantial assets in the Permian Basin, the largest oil field in the United States. The acquisition consolidates Diamondback's position in this highly productive region.
Diamondback anticipates that the net debt will be reduced to $10 billion after the transaction. The company's long-term goal is to keep leverage within the aforementioned range.