Diamondback Energy to buy Energen Corporation

Diamondback Energy has agreed to purchase Energen Corporation in a transaction valued at USD 9.2 billion, Diamondback announced on Tuesday.

The deal, which will see Diamondback shareholders take on about 62% of the combined company, includes USD 830 million of Energen 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 supporting an increasing capital return program,” CEO Travis Stice said.

“The Energen team has done an outstanding job assembling a portfolio of Tier One acreage in both the Midland and Delaware basins, which, when combined with Diamondback’s current portfolio, will present an extended runway for Diamondback’s record of best-in-class execution and low-cost operations.”