Diamondback Energy Inc.’s $1.55 billion acquisition of Lario Permian LLC has closed, according to a Jan. 31 company press release, wrapping up the E&Ps fourth-quarter 2022 Midland Basin shopping spree.
Along with the acquisition of FireBIrd Energy LLC in November, Diamondback said the deals would increase its Midland Basin footprint by approximately 83,000 net acres, add 500 high-quality drilling opportunities and increase its 2023 production profile by approximately 37,000 bbl/d of oil (50,000 boe/d).
Diamondback announced the Lario acquisition in November, saying then it would buy Lario Permian from Lario Oil & Gas with the deal funded through a combination of cash and stock. Diamondback agreed to acquire all leasehold interest and related assets of Lario Permian and certain associated sellers in exchange for 4.18 million shares of Diamondback common stock and $850 million of cash.
The deal, as originally proposed, would add approximately 25,000 gross (15,000 net) acres and over 150 gross locations in the core of the northern Midland Basin. Full-year 2023 estimated average production was expected to be 18,000 bbl/d of oil (25,000 boe/d), the company said.
The Lario deal followed Diamondback’s acquisition of FireBird, which closed on Nov. 30. Diamondback also acquired the private operator with a mix of cash and stock initially valued at roughly $1.6 billion. The transaction’s final price tag subsequently increased to $1.75 billion.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
Shipping Industry Urges UN to Protect Vessels After Iran Seizure
2024-04-19 - Merchant ships and seafarers are increasingly in peril at sea as attacks escalate in the Middle East.