Diamondback Energy is reportedly in talks to potentially buy fellow Permian producer Double Eagle IV. (Source: Shutterstock.com, Double Eagle)
Diamondback Energy is reportedly in talks to potentially acquire fellow Permian producer Double Eagle IV.
A deal could be announced in the coming days should talks not fall apart, The Wall Street Journal reported Feb. 14. Another suitor could emerge with a counteroffer, the report notes.
A transaction could potentially value Double Eagle IV at more than $5 billion.
Double Eagle IV, backed by EnCap Investments funds, is one of the largest private producers remaining in the Permian Basin after a massive run of upstream consolidation.
Hart Energy has reached out to Diamondback, Double Eagle IV and EnCap for comment.
Among private equity-backed producers remaining in the Permian Basin, Double Eagle IV stands out from the pack, according to a Hart Energy analysis.
In the 12 months ending November 2024, Double Eagle IV produced about 31.5 MMboe (73% liquids), according to the most recent Texas Railroad Commission figures.
Company-operated production averaged approximately 121,000 boe/d (64% liquids) in November 2024—a 177% increase from roughly 43,500 boe/d a year prior.
Over the same period, Double Eagle’s liquids production grew to 2.3 MMbbl from about 1.1 MMbbl in November 2023—an increase of nearly 114%. Gas output rose 488% over the same period.
The bulk of Double Eagle’s production comes out of Reagan and Martin counties, Texas. But the company also has assets in Midland, Upton, Howard, Ector, Glasscock, Andrews and Dawson counties, data shows.
Double Eagle IV reportedly holds over 95,000 net acres in the Midland Basin.
The latest iteration of Double Eagle is led by co-CEOs Cody Campbell and John Sellers, who in 2021 guided Midland Basin E&P Double Eagle III—a subsidiary of DoublePoint Energy LLC—through a $6.4 billion sale to Pioneer Natural Resources.
Double Eagle IV’s investors also include Apollo Natural Resources and Elda River Capital.
Diamondback is coming off of a blockbuster $26 billion acquisition of private Permian E&P Endeavor Energy Resources. The Endeavor acquisition closed in September.
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