Diamondback Energy unveils $4-billion acquisition in Texas

MIDLAND, February 18, 2025 – Diamondback Energy has made a USD 4-billion acquisition to secure additional acreage in the prolific Midland Basin in Texas, the US shale player announced on Tuesday.

The deal involves Diamondback acquiring certain Double Eagle IV Midco subsidiaries in exchange for approximately 6.9 million shares of Diamondback common stock and USD 3 billion of cash.

Covering high-quality, operated leasehold positions, the deal is expected to significantly enhance Diamondback’s portfolio. By acquiring around 40,000 net acres, the company has set its sights on increasing both its resource base and future production potential.

The Midland Basin, an area of the larger Permian Basin known for its high-performing well results and robust infrastructure, offers substantial upside for continued growth and value creation.

Diamondback also said it is committing to sell at least USD 1.5 billion of non-core assets to accelerate pro forma debt reduction in order to maintain its strong balance sheet.

“We are excited about the opportunity to expand our footprint in one of the most prolific oil basins globally,” Diamondback Energy CEO Travis Stice said.

“This acquisition not only strengthens our position in the Permian but also provides the company with a robust development inventory that can be efficiently brought on line. We’re well positioned to continue delivering strong returns for our shareholders while remaining committed to the efficient, sustainable production of energy.”

Diamondback Energy is an independent oil and gas company based in Midland, Texas. It focuses on hydrocarbons exploration and production in the Permian Basin.

Read our latest insights on: