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12 Feb, 2024 12:57

Diamondback Energy to buy Endeavor in $26bn deal

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US oil and gas company Diamondback Energy said on Monday that it has agreed to buy rival Endeavor Energy Resources in a $26bn deal.

The consideration will consist of around 117.3m shares of Diamondback common stock and $8bn in cash.

Diamondback will own approximately 60.5% of the combined entity, while Endeavor’s equity holders will own the rest.

Diamondback chairman and chief executive Travis Stice said: "This is a combination of two strong, established companies merging to create a ‘must own’ North American independent oil company. The combined company’s inventory will have industry-leading depth and quality that will be converted into cash flow with the industry’s lowest cost structure, creating a differentiated value proposition for our stockholders.

"This combination meets all the required criteria for a successful combination: sound industrial logic with tangible synergies, improved combined capital allocation and significant near and long-term financial accretion. With this combination, Diamondback not only gets bigger, it gets better."


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Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.