North American oil and gas exploration developer Diamondback Energy announced on February 12th that it will acquire Endeavor Energy Partners, the largest private oil and gas producer in the Permian Basin, in a cash and equity deal worth approximately $26 billion (including debt).
The new company born from this will become the third largest oil and gas producer in the region, second only to ExxonMobil and Chevron. After the transaction is completed, Diamondback shareholders are expected to own 60.5% of the shares in the merged entity, while Endeavor shareholders will own the remaining shares.
The rise in oil prices and the battle for high-quality oil fields are accelerating the integration of the energy industry, and this transaction is the latest example in a large-scale merger and acquisition wave in the US shale oil and gas sector.
Prior to this, ExxonMobil, the largest oil company in the United States, announced in October 2023 its acquisition of Pioneer Natural Resources for $59.5 billion, followed by Chevron, the second largest oil and gas producer in the United States, announcing its acquisition of shale oil company Hess for $53 billion.
The frequent occurrence of such transactions means that American oil giants are still placing heavy bets, firmly believing that oil and gas will continue to be important components of the global energy world for decades to come.