Diamondback Energy Acquires Double Eagle Assets in $4B Deal

Diamondback Energy, Inc. has agreed to acquire certain subsidiaries of Double Eagle IV Midco, LLC in exchange for approximately 6.9 million shares of Diamondback common stock and $3 billion of cash, which is expected to be funded through a combination of cash on hand, borrowings under the company’s credit facility and/or proceeds from term loans and senior notes offerings. The transaction involves assets in the Midland Basin and is expected to close on April 1, 2025.

Diamondback also announced plans to sell $1.5 billion of non-core assets to accelerate pro forma debt reduction to maintain its strong balance sheet. Diamondback expects to reduce net debt to $10 billion and long term, maintain leverage of $6 billion to $8 billion.

“Double Eagle is the most attractive asset remaining in the Midland basin,” said Travis Stice, chairman and CEO of Diamondback. “With 407 locations adjacent to our core position, this largely undeveloped asset adds high-quality inventory that immediately competes for capital.”

As part of this arrangement, Diamondback and Double Eagle have also agreed to accelerate development on a portion of Diamondback’s non-core southern Midland basin assets. This acceleration is projected to bring forward Diamondback’s Net Asset Value by developing lower quality acreage at a faster rate than previously anticipated. As a result, Diamondback forecasts considerable free cash flow growth in 2026 and beyond while using minimal capital.