[Editor's note: This story was updated at 8:06 a.m. CDT June 7.]

Two private E&P behemoths are joining forces to form a pure-play Midland Basin company with more than 70,000 acres in the basin’s core.

Double Eagle Energy Holdings III LLC and FourPoint Energy's Permian subsidiary, FourPoint Permian LLC, will form the new company named DoublePoint Energy LLC, the companies said in a joint press release on June 5.

DoublePoint’s position will include acreage in the core areas of the oil-rich, multipay zones in Midland, Glasscock, Martin, Howard, Upton and Reagan counties, Texas. The assets are a combination of Double Eagle III’s existing Midland Basin acreage and production, along with additional assets that were recently acquired from undisclosed sellers.

Double Eagle III, based in Fort Worth, Texas, was formed last year with backing from Apollo Global Management LLC (NYSE: APO), Magnetar Capital and management. The company’s formation followed the $2.8 billion sale of its predecessor, Double Eagle II, to Parsley Energy Inc. (NYSE: PE) in April 2017.

The company's founders, John Sellers and Cody Campbell, will serve as co-CEOs of DoublePoint and George Solich, CEO and president of Denver-based FourPoint, will serve as DoublePoint’s executive chairman.

DoublePoint plans to continue to consolidate its position in its core areas through bolt-on acreage acquisitions and acreage trades while investing additional capital in an active drilling program. Currently, Double Eagle III has one rig running, and as field and drilling operations are transitioned to the combined company, DoublePoint plans to ramp up drilling and development activity over its footprint, which has been largely undeveloped to date, according to a press release.

“Pulling from the strengths of both companies, we believe DoublePoint will be a dynamic player in the Midland Basin focused on acreage acquisitions, acreage trades, and the development of our low risk, multipay resource,” Sellers said in a statement.

FourPoint, with Solich at the helm, already boasts a significant position in the Western Anadarko Basin with interests in about 2.2 million gross (800,000 net) acres. The acreage spreads across 13 Oklahoma counties and crosses into the northeast corner of the Texas Panhandle.

RELATED: ‘World-Class’ Anadarko Getting Better

Solich said FourPoint’s partnership is with one of the top management teams in the Permian Basin adding that Sellers, Campbell and their team at Double Eagle Development are the “best in the business.”

“By augmenting Double Eagle’s best-in-class Midland Basin expertise with FourPoint’s strong technical and operational proficiencies, we are confident this partnership will yield an unprecedented opportunity to quickly and efficiently grow production and cash flow,” he said in a statement.

Both Sellers and Campbell were named Oil and Gas Investor’s Thirty Under 40 honorees in 2015 following the formation of Double Eagle Energy Holdings II LLC.

FourPoint is backed by Quantum Energy Partners, funds managed by GSO Capital Partners LP and other investors.

Vinson & Elkins advised Double Eagle in connection with the formation of DoublePoint.

Emily Patsy can be reached at epatsy@hartenergy.com.