Diamondback Energy acquired subsidiaries of Double Eagle IV Midco in a transaction valued at more than $4 billion, including about $3 billion in cash and 6.9 million Diamondback shares.
The deal includes approximately 40,000 net acres in the core of the Midland Basin; Estimated run-rate production of approximately 27 MBo/d (69% oil); $200 million of capital expenditures anticipated in 2025 at current Midland Basin well costs of $555 to $605 per foot; Extends pro forma inventory life in the core of the Midland Basin; 68% of the asset is undeveloped with 407 estimated gross (342 net) horizontal locations in primary development targets with an average lateral length of approximately >11,000'; and 44 gross upside locations primarily located in emerging zones.
TPH&Co, the energy business of Perella Weinberg Partners, is serving as financial advisor to Diamondback. Kirkland & Ellis LLP is acting as legal advisor to Diamondback.
RBC Capital Markets, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as financial advisors to Double Eagle. Vinson & Elkins LLP is acting as legal advisor to Double Eagle.