Diamondback in talks to buy shale rival Endeavor for around $25 billion: report

Posted By: EN Todayon: February 12, 2024In:

Diamondback Energy Inc. and Endeavor Energy Resources are reportedly in the late stages of deal talks that would see the shale rivals form a massive company.

A deal between the two oil giants could come as soon as Monday, according to a report in The Wall Street Journal, which cited sources close to the discussions.

The cash-and-stock deal on the table would value privately held Endeavor at roughly $25 billion, with Diamondback
FANG,
-1.13%
stockholders becoming majority holders of the combined group, the sources said.

A deal would trump ConocoPhillips
COP,
-2.41%,
which was also vying for Midland, Texas-headquartered Endeavor, the sources added. Diamondback, also based in Midland, has a market cap of $27.3 billion, according to FactSet, far below ConocoPhillips’ $133 billion.

The deal would continue a run of major energy tie-ups, after Chevron Corp.’s
CVX,
-1.96%
$53 billion all-stock buyout of Hess Corp. in October, which came days after Exxon Mobil Corp.’s
XOM,
-2.12%
$59.5 billion deal to buy Pioneer Natural Resources Co.
PXD,
-1.96%.