Diamondback Energy and Endeavor Energy Resources have entered into a definitive merger agreement valued at approximately $26 billion, inclusive of Endeavor’s net debt. The combination will create a premier Permian independent operator.
The transaction consideration will consist of approximately 117.3 million shares of Diamondback common stock and $8 billion of cash, subject to customary adjustments. The cash portion of the consideration is expected to be funded through a combination of cash on hand, borrowings under the company’s credit facility and/or proceeds from term loans and senior notes offerings.
“This is a combination of two strong, established companies merging to create a ‘must own’ North American independent oil company,” stated Travis Stice, Chairman and CEO of Diamondback.
“I am grateful to the Endeavor team and proud of what we have built since 1979,” added Autry C. Stephens, Founder and Chairman of the Board of Endeavor. “We believe Diamondback is the right partner for Endeavor, our employees, families and communities.”