Private equity (PE) firm Carlyle Group LP said Sept. 11 it would fund the development of Diamondback Energy Inc.'s (NASDAQ: FANG) oil and gas assets in the prolific Permian Basin of Texas.
A Carlyle fund and Diamondback will jointly invest $620 million to develop the assets in the San Pedro area of Pecos County, Texas, within the Southern Delaware Basin, the companies said.
Carlyle will invest up to 85% for the development program over five years and the PE firm's interests will largely revert to Diamondback after certain performance milestones are met.
Diamondback's shares were up 2.2% at $114.58 in morning trade.
Last month, Diamondback agreed to buy shale rival Energen Corp. (NYSE: EGN) in an all-stock deal valued at $9.2 billion, to get an expanded footprint in the Permian, the largest and fastest-growing oil field in the U.S.
Stratas Advisors expects an injection of 85 Bcf into storage for the week ending Oct. 18.
For the week ahead, Stratas Advisors expect prices to continue to decline on persistent demand concerns and ample supply.
The Canadian LNG industry has been slower than its U.S. counterpart to take advantage of soaring gas demand around the world and build export plants, in part due to securing feedstock supplies for the terminals.