Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns run through Diamondback Energy's acquisitions — what it looks for, how it pays, and how it folds in what it buys.
13 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.
Diamondback's largest acquisition and the deal that reshaped the Permian. Diamondback merged with Endeavor Energy Resources, the largest privately held oil producer in the Permian Basin, founded by Autry Stephens in 1979. The transaction added roughly 500,849 gross (361,927 net) acres primarily in the Midland Basin and created a combined company with about 838,000 net acres and roughly 816 MBOE/d of net production. Final consideration was $7.3 billion in cash plus approximately 117.27 million Diamondback shares. ~$26 billion (enterprise value, inclusive of Endeavor's net debt).
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.Travis Stice — Chairman & CEO, Diamondback Energy
I am grateful to the Endeavor team and proud of what we have built since 1979. We believe Diamondback is the right partner for Endeavor, our employees, families and communities.Autry C. Stephens — Founder & Chairman, Endeavor Energy Resources
Diamondback's minerals subsidiary Viper Energy acquired Sitio Royalties in an all-equity merger, consolidating two of the largest public mineral-and-royalty owners. The interests acquired represent roughly 25,300 net royalty acres in the Permian plus about 9,000 net royalty acres in the DJ, Eagle Ford and Williston basins. As Viper's controlling stockholder, Diamondback approved the deal by written consent. ~$4.1 billion (all-equity, including ~$1.1 billion of Sitio net debt).
Diamondback acquired subsidiaries of Double Eagle IV Midco, adding roughly 40,000 net acres in the core of the Midland Basin with about 407 gross (342 net) undeveloped horizontal locations. The deal was announced with ~$3 billion cash and ~6.9 million shares and closed at $3.1 billion cash plus ~6.84 million shares. Diamondback also committed to sell at least $1.5 billion of non-core assets to fund debt reduction. ~$4.08 billion ($3.1 billion cash + ~6.84 million Diamondback shares).
Double Eagle is the most attractive asset remaining in the Midland Basin. With 407 locations adjacent to our core position, this largely undeveloped asset adds high-quality inventory that immediately competes for capital.Travis Stice — Chairman & CEO, Diamondback Energy
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 with a world-class Midland operator.Cody Campbell & John Sellers — Co-CEOs, Double Eagle
Diamondback merged with Alabama-based Energen Corporation in an all-stock deal that management called the creation of the premier large-cap Permian independent. Each Energen share converted into 0.6442 Diamondback shares (implied ~$84.95 per share); Diamondback issued ~62.8 million shares valued at ~$7.1 billion in equity. The combination pushed Diamondback to ~390,000 net acres across the Midland and Delaware basins. ~$9.2 billion (all-stock, including ~$830 million Energen net debt).
This transaction represents a transformational moment for both Diamondback and Energen shareholders as they are set to benefit from owning the premier large cap Permian independent with industry leading production growth, operating efficiency, margins and capital productivity.Travis Stice — Chairman & CEO, Diamondback Energy
Diamondback acquired QEP Resources in an all-stock merger, with each QEP share converting into 0.050 of a Diamondback share (implied ~$2.29 per QEP share). The deal added roughly 49,000 net Midland Basin acres held by production. QEP's non-core Williston Basin assets were designated for divestiture and sold in October 2021. Equity consideration was ~$987 million; enterprise value ~$2.2 billion including assumed debt. ~$2.2 billion (all-stock, including ~$1.6 billion QEP net debt).
The acquisition of QEP also checks every box of Diamondback's corporate development strategy... the addition of this Tier-1 resource competes for capital right away in Diamondback's current portfolio, and we will now be able to allocate most of our capital to the high-returning Midland Basin.Travis Stice — CEO, Diamondback Energy
Announced the same day as the QEP merger, Diamondback acquired the leasehold and related assets of Guidon Operating LLC, adding about 32,500 net acres in the Northern Midland Basin and roughly 210 gross producing wells. Consideration was 10.68 million Diamondback shares (~$740 million at closing) plus $375 million cash. ~$1.12 billion (10.68 million shares [~$740M] + $375 million cash).
The acquisition of these assets from Guidon checks every box of Diamondback's corporate development strategy... Diamondback will not only get bigger through this transaction, but most importantly better.Travis Stice — CEO, Diamondback Energy
Diamondback acquired the leasehold and related assets of FireBird Energy, adding roughly 75,000 gross (68,000 net) highly contiguous Midland Basin acres and about 854 gross producing wells. Announced at 5.86 million shares plus $775 million cash; closed at 5.92 million shares (~$876 million) plus $787 million cash. ~$1.66 billion (5.92 million shares [~$876M] + $787 million cash).
This bolt-on acquisition adds significant, high-quality inventory right in our backyard. With over 350 locations adjacent to our current Midland Basin position, this asset adds more than a decade of inventory at our anticipated development pace.Travis Stice — Chairman & CEO, Diamondback Energy
Diamondback acquired the leasehold and related assets of Lario Permian, a subsidiary of Lario Oil & Gas Company, and certain associated sellers, adding roughly 25,000 gross (16,000 net) Midland Basin acres. Consideration was 4.33 million Diamondback shares (~$633 million) plus $814 million cash, with ~$113 million of the cash placed in an indemnity holdback escrow. ~$1.45 billion (4.33 million shares [~$633M] + $814 million cash).
Diamondback acquired the leasehold and related assets of Ajax Resources, adding approximately 25,493 net leasehold acres in the Northern Midland Basin. Consideration was $900 million cash plus about 2.58 million Diamondback shares (roughly 0.5 million placed in an indemnity escrow). Announced alongside Q2 2018 results and effective July 1, 2018. ~$1.25 billion ($900 million cash + 2.58 million Diamondback shares).
Diamondback acquired the leasehold and related assets of Brigham Resources Operating and Brigham Resources Midstream, adding 76,319 net acres in Pecos and Reeves counties in the Southern Delaware Basin and bringing total leasehold to ~182,000 net Permian acres. Consideration was $1.62 billion cash plus 7.69 million Diamondback shares (~$809.6 million). The Brigham sellers were backed by Warburg Pincus, Yorktown and Pine Brook. ~$2.43 billion ($1.62 billion cash + 7.69 million shares [~$809.6M]).
Diamondback's pending acquisition of Brigham Resources in the Delaware Basin represents an important milestone for our company... we are creating exceptional shareholder value by doubling our Tier One inventory at an attractive entry price.Travis Stice — CEO, Diamondback Energy
This transaction represents a unique opportunity to place our Southern Delaware Basin assets in the hands of one of the premier value creators and operators in the Permian Basin.Gene Shepherd — CEO, Brigham Resources
Under two definitive purchase agreements, Diamondback acquired leasehold and related assets from ExL Petroleum Management/ExL Petroleum Operating and from EnergyQuest II, together about 3,646 net leasehold acres and ~3,500 boe/d of production in Northwest Martin and Northeast Andrews counties of the Northern Midland Basin, for an aggregate $312.5 million in cash. $312.5 million cash (aggregate, two agreements).
Diamondback's minerals subsidiary Viper Energy acquired mineral and royalty interests from Royalty Asset Holdings and affiliates of Warwick Capital Partners and GRP Energy Capital, representing about 4,600 net royalty acres in the Permian plus 2,700 net royalty acres in other basins. Consideration was ~9.02 million Viper common units plus $760 million cash. ~$1.0 billion (9.02 million Viper units + $760 million cash).
As part of the September-October 2024 'Viper Tumbleweed Acquisitions,' Viper Energy acquired the equity of TWR IV, LLC and related entities from Tumbleweed Royalty IV, adding roughly 3,067 net royalty acres primarily in the Permian Basin. The headline TWR IV component was ~$464 million cash plus 10.09 million Viper LLC units, an option for additional Class B shares, and contingent consideration of up to $41 million tied to 2025 WTI prices. ~$650 million (~$464 million cash + 10.09 million Viper LLC units + contingent up to $41M).