When it comes to making shrewd acquisitions, Texas-based Diamondback doesn’t shoot snake eyes.

Since the company’s game-changing merger in 2018 with fellow Permian rival Energen for $9.2 billion, Diamondback has crafted a pure-play growth strategy in the Midland and Delaware sub-basins with bolt-on buys and decades-long inventory that has turned this independent into a powerhouse player with bite.

Reese Energy Consulting today is following the latest news from Diamondback, which now has wrapped up the last of two, nearly back-to-back acquisitions last October and November just in time to announce its 1Q earnings. In cash-and-stock deals valued at $3.1 billion for Firebird Energy and Lario Petroleum in 2022, Diamondback added a combined 83,000 net acres and 48 MBOED to its Midland assets. The company reported 4Q income of $1.44 billion and 391.4 MBOED (226 MBOD). Year-end results included $6.33 billion in income and 4.63 MMBOED (2.68 MMBOD).

Following its Firebird purchase, Diamondback in November announced divesting $500 million in non-core Permian assets, which has since included the sale of 3,250 net acres in the Delaware for $155 million and most recently its remaining 10% ownership of the Gray Oak Pipeline for $180 million. Diamond now has increased its asset sales target to $1 billion.