The latest in Perman Basin oil company mergers is another whopper, the $26 billion acquisition of Endeavor Energy Resources by Diamondback Energy, which a Diamondback spokesman says “will create a premier Permian independent operator.”
It follows during the past four months the $60 billion purchase of Pioneer Natural Resources by ExxonMobil, the $53 billion acquisition of the Hess Corp. by Chevron and the $11 billion purchase of CrownRock Inc. by Occidental Petroleum.
Noting that the headquarters of Endeavor, which has not been publicly traded, and Diamondback are adjacent to each other on North Marienfeld Street and West Texas Avenue in downtown Midland, Diamondback Chairman-CEO Travis Stice said the new company “will have industry-leading depth and quality that will be converted into cash flow with the industry’s lowest cost structure, creating a differentiated value proposition for our stockholders.
“This combination meets all the required criteria for a successful combination, sound industrial logic with tangible synergies, improved combined capital allocation and significant near and long-term financial accretion,” Stice said. “With this combination Diamondback not only gets bigger, it gets better.”
Endeavor Board Chairman Autry C. Stephens, who founded the company in 1979, said Diamondback “is the right partner for Endeavor, our employees, families and communities.
“Together we will create value for shareholders and our other stakeholders,” Stephens said.
Endeavor President-CEO Lance Robertson said joining Diamondback “is a transformational opportunity for us.
“Our success up to this point is attributable to the dedication and hard work of Endeavor employees and this announcement is recognition by Diamondback of the significant efforts from our team over the past seven years, driving production growth, improving safety performance and building a more sustainable company,” Robertson said.
“We look forward to working together to scale our combined business, unlock value for all of our stakeholders and ensure that our new company is positioned for long-term success as we build the premier Permian-focused company in Midland.”
