As they say, when one door closes another door opens. But in the case of Midland, Texas-based Diamondback Energy this week, that old expression with one negative translates to a big positive all the way around. Reese Energy Consulting today is following the latest news from Diamondback, which has closed the door on its February $26 billion merger deal with Midland neighbor Endeavor Energy Resources.  

Among the biggest acquisitions we’ve seen as part of the consolidation frenzy now a year long, the Diamondback-Endeavor merger has to rank as one of the most memorable. As two of the Permian’s largest operators, each was considered prime buy targets early on for producers on the hunt for more acreage and drilling inventory. This to which both E&Ps rebuffed any rumor, any notion, any idea they were up for sale. Then came Diamondback’s Endeavor announcement last February, no doubt leaving a few broken hearts. With fed scrutiny officially in the rearview, the combination gives Diamondback a total 838,000 net acres across the Midland and Delaware and 816 MBOED.

Now onto the open door, where Diamondback’s subsidiary Viper Energy continues to build its Permian mineral and royalty interests in both plays with three new acquisitions from Fort Worth and Midland, Texas-based Tumbleweed Royalty IV in a cash and stock deal valued at $1.1 billion. Assets include 3,237 acres in the Midland and 490 acres in the Delaware core, which currently produce 2.5 MBPD (4 MBOED). According to news sources, Viper expects Diamondback to develop 120-140 new well locations by the end of 2026.