Permian Rivals Reach Deal To Form $50-B Oil-And-Gas Giant

Rivals Diamondback Energy and Endeavor Energy Resources have reached a deal to merge, forming an oil-and-gas giant worth more than $50 billion.

Diamondback announced the merger with the closely held Endeavor on Monday morning. I Photo: Endeavor Energy Resources, LP

This move comes as higher oil prices and a rush to secure prime acreage drive consolidation in the energy sector, as reported by Lauren Thomas and Laura Cooper for the Wall Street Journal.

Diamondback announced the merger with the closely held Endeavor on Monday morning, following earlier speculation reported by the Wall Street Journal on Sunday. Based in Midland, Texas, Diamondback currently boasts a market value of around $27 billion.

Endeavor, founded by wildcatter Autry Stephens, has long been one of the most coveted businesses in the consolidating Permian Basin, which is the largest US oil patch spanning West Texas and New Mexico.

In securing the deal for Endeavor, Diamondback successfully competed against other parties, including ConocoPhillips, according to sources familiar with the matter.

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