Diamondback acquires Double Eagle subsidiaries
Diamondback Energy has entered into a definitive purchase agreement to acquire certain subsidiaries of Double Eagle in exchange for approximately 6.9 million shares of Diamondback common stock and $3 billion of cash, subject to customary adjustments.
As part of this agreement, Diamondback and Double Eagle have also agreed to accelerate development on a portion of Diamondback’s non-core southern Midland Basin acreage. This acceleration is expected to bring forward Net Asset Value (“NAV”) to Diamondback by developing Diamondback’s lower quality acreage at a faster pace than current expectations. As a result, Diamondback expects significant Free Cash Flow growth in 2026 and beyond with minimal capital deployment through this accelerated development plan.
Diamondback is also committing to sell at least $1.5 billion of non-core assets to accelerate pro forma debt reduction in order to maintain its strong balance sheet. Diamondback expects to reduce net debt to $10 billion and, long-term, maintain leverage of $6–8 billion.
