US oil and gas company Diamondback Energy has completed the merger with Endeavor Energy Resources, creating a leading operator focused on the Permian Basin.
According to the initial announcement made in February this year, the cash-and-stock deal is valued at $26bn.
Following the merger, Diamondback’s existing shareholders own approximately 60.5% of the combined entity while Endeavor’s equity holders own the remaining 39.5% interest.
With a workforce of more than 1,200, Endeavor is a major player in the Midland area of the Permian shale basin, covering both east and west Texas.
Its assets encompass around 470,000 net acres across various basins, including a concentrated 344,000 net acres in the Core 6 counties of the Midland Basin.
The merged company is projected to produce 816,000 barrels of oil and gas daily and will have a pro forma footprint of around 838,000 net acres.
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By GlobalDataFollowing the announcement of the deal, Diamondback underwent two comprehensive reviews by the FTC for the deal.
Diamondback chairman and CEO Travis Stice said: “We are pleased to announce the closing of this transformative merger, creating a ‘must own’ North American independent oil company. Today, Diamondback is not only bigger, but better. Our high-quality inventory located in the heart of the Permian Basin gives us the running room to do what we do best: turn rock into cash flow.
“I would like to thank our employees for all their hard work in getting this deal across the finish line and welcome the Endeavor employees to the Diamondback team. Together, I am confident we can continue to build off of Diamondback’s impressive operational track record of low-cost operations and position the new Diamondback for long-term success.”
In May this year, Diamondback Energy agreed to sell its stake in WTG Midstream to Energy Transfer to reduce debt.
