Diamondback Energy To Buy Endeavor For $26 Bln; Lifts Dividend

(RTTNews) - Diamondback Energy, Inc. (FANG), a hydrocarbon explorer, announced on Monday that it has inked a deal to buy privately held Endeavor Energy Resources, L.P., for around $26 billion, inclusive of Endeavor's net debt.

The transaction, expected to be closed in the fourth quarter of 2024, will create a premier Permian independent operator.

The transaction will consist of approximately 117.3 million shares of Diamondback and $8 billion of cash.

The cash portion of the consideration is expected to be funded through a combination of cash on hand, debt facilities, and senior notes offerings.

Post transaction, the company's existing shareholders are expected to own around 60.5 percent, whereas Endeavor's equity holders own approximately 39.5 percent of the combined company.

Post-merger, the company expects a combined pro forma scale of around 838,000 net acres and 816 MBOE/d of net production.

Diamondback also announced that it will pay a 7 percent increase to its base dividend to $3.60 per share annually, $0.90 per share quarterly, with effect from the fourth quarter of 2023.

Looking ahead, for the fourth quarter, Diamondback expects oil production of 273.1 MBO/d.

On a stand-alone basis, for the full year of 2024, Diamondback projects an output of 270 MBO/d to 275 MBO/d.

On a stand-alone basis, for the full year of 2024, Endeavor anticipates production of 190 MBO/d to 200 MBO/d.

For the full year 2025, on a pro forma basis, Diamondback expects to generate output of 470 MBO/d to 480 MBO/d.