(Bloomberg) – Diamondback Energy Inc. Close a deal to go closely in West -Texas oil producer Double Eagle in an attempt to promote his dominance in the world’s largest shaley match, according to people who are familiar with the issue.
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Diamondback, the largest independent oil and gas producer in the Perm -Bekken, is planning to formally announcing the Double Eagle deal on Tuesday morning, said that the people who asked not to be identified because the details are private. The transaction can be valued at more than $ 5 billion, the Wall Street Journal reported Friday, stating unnamed sources.
A representative for Diamondback did not immediately respond to requests for comments. A representative for Double Eagle refused to comment.
The deal comes about a year after Diamondback has announced the biggest transaction ever, the acquisition of Endeavor Energy Resources LP. The deal was closed in September for around $ 28 billion. Since then, Diamondback has been one of the worst performing members of the S&P 500 Energy Index in the midst of concern that the Endeavour founder Autry Stephens can sell more of the stock of Diamondback that it has received in the deal.
Making Schaleie was expected to delay after $ 300 billion in acquisitions In recent years, the available goals had consolidated, according to the Industrial Consultant Enverus.
Double Eagle, whose private equity donors have recorded Encap Investments LP, is one of the last major closely kept producers who are taken over in the Perm, which extends over West -Texas and the southeast of New Mexico.
As soon as the backbone of growth in the Schaaliepatch, producers closely expand the output at a slower pace, because Private Equity leaves space. Capital that is adopted by private equity companies in energy, which amounted to an average of $ 21 billion per year from 2010 to 2019 has since fallen, according to Quantum Capital Group LLC on average around $ 6 billion annually.
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