Diamondback FANG Energy is in talks to buy Double Eagle, a big West Texas energy producer, a sign that consolidation in the country’s biggest oil patch isn’t slowing down.
A deal could be announced in coming days, if the talks don’t fall apart, according to people familiar with the matter. It is also possible another suitor could emerge.
Double Eagle, backed by private-equity firm EnCap Investments, could be valued at more than $5 billion in the transaction, the people said.
Fort Worth-based Double Eagle owns more than 95,000 net acres in the Midland Basin. The company is one of the last large assets left in the Permian Basin, the largest U.S. oil field.
Diamondback, based in Midland, Texas, has a market value of around $47 billion. The company last year acquired Permian producer Endeavor Energy Resources in a cash-and-stock deal that valued Endeavor at around $26 billion.
Write to Benoît Morenne at benoit.morenne@wsj.com and Lauren Thomas at lauren.thomas@wsj.com
A deal could be announced in coming days, if the talks don’t fall apart, according to people familiar with the matter. It is also possible another suitor could emerge.
Double Eagle, backed by private-equity firm EnCap Investments, could be valued at more than $5 billion in the transaction, the people said.
Fort Worth-based Double Eagle owns more than 95,000 net acres in the Midland Basin. The company is one of the last large assets left in the Permian Basin, the largest U.S. oil field.
Diamondback, based in Midland, Texas, has a market value of around $47 billion. The company last year acquired Permian producer Endeavor Energy Resources in a cash-and-stock deal that valued Endeavor at around $26 billion.
Write to Benoît Morenne at benoit.morenne@wsj.com and Lauren Thomas at lauren.thomas@wsj.com
