The World’s Largest Rattlesnake Roundup in Texas doesn’t strike until March 7, when warm spring temps lure the Western Diamondback out into the open. Suddenly, the hunt is on. And here in Sweetwater, the predator becomes prey. But 100 miles west, Midland-based Diamondback Energy has been on a stealthy hunt all its own. This, when others surmised the Permian operator would become the next big capture in a long tail of mega mergers. Now Diamondback says, “Rattle this, playa”.
Reese Energy Consulting today is following the latest news from FANG, which has announced it will acquire pure-play Midland neighbor Endeavor Energy Resources for $26 billion in cash and stock. The merger between two of the largest Permian players is valued at $50+ billion. For FANG, which operates in the Midland, Delaware, and Central Basin Platform, there’s nothing snake bit about this deal.
Diamondback will pick up an added 350,000 net acres and 350+ MBOED in the Midland. Proforma, the company will operate a combined 838,000 net acres, 6,100 core locations of inventory, and 816 MBOED in net production, making it the Permian’s third-largest oil and gas producer behind heavyweights Exxon and Chevron. And prey to no one. Not even in Sweetwater.