Billion-dollar merger in the energy sector
A 26 billion dollar merger agreement has been signed between Diamondback Energy and Endeavor Energy Resources. The company formed as a result of the merger will become the 3rd largest oil and gas producer in the Permian Basin in West Texas and New Mexico.
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US-based oil and natural gas company Diamondback Energy has announced that they have signed a merger agreement with oil and natural gas producer Endeavor Energy Resources worth approximately 26 billion dollars. In the statement made by Diamondback Energy, it was reported that the company has signed a merger agreement with Endeavor Energy Resources.
WHAT ARE THE EXPECTATIONS FOR THE MERGER?
The statement noted that Diamondback Energy will merge with Endeavor Energy Resources in a deal valued at approximately 26 billion dollars, including the company's net debt. It was noted that as a result of the merger process, current shareholders of Diamondback Energy are expected to own approximately 60.5 percent of the new company to be established, while Endeavor's shareholders are expected to own approximately 39.5 percent.
Reports in the US press stated that the company formed as a result of the merger between Diamondback Energy and Endeavor Energy Resources will become the 3rd largest oil and gas producer in the Permian Basin in West Texas and New Mexico, following Exxon Mobil and Chevron.