Diamondback Energy, Inc., which specializes in hydrocarbon exploration, unveiled plans on Monday to acquire privately owned Endeavor Energy Resources, L.P. for an estimated $26 billion, a figure that includes Endeavor's net debt.
The transaction is set to be finalized in the last quarter of 2024, resulting in a top-tier independent operator within the Permian region.
The acquisition comprises approximately 117.3 million shares of Diamondback in addition to $8 billion in cash. The cash element is anticipated to be sourced from a blend of available cash, debt facilities, and offerings of senior notes.
Once the transaction is complete, the existing shareholders of the company are projected to retain about 60.5 percent ownership, while Endeavor's equity holders will possess roughly 39.5 percent of the merged entity.
Post-merger, the corporation expects a combined proforma scale of around 838,000 net acres along with a net production of 816 MBOE per day.
Additionally, Diamondback declared a 7 percent boost to its base annual dividend to $3.60 per share, or $0.90 per share every quarter, starting from the fourth quarter of 2023.
Looking forward to the last quarter, the oil production of Diamondback is projected at 273.1 MBO per day.
On an individual basis, Diamondback's predicted output for 2024 ranges from 270 MBO per day to 275 MBO per day.
Independently, Endeavor is forecasting a production rate of between 190 MBO per day and 200 MBO per day for the entirety of 2024.
Beginning in 2025 and throughout the year, Diamondback anticipates it will generate an output of 470 MBO per day to 480 MBO per day on a proforma basis.
