Diamondback Energy Inc (NASDAQ:FANG, ETR:7DB) has agreed to pay $26 billion to take control of Endeavor Energy Resources, beating to the punch ConocoPhillips (NYSE:COP, ETR:YCP) to secure one of the most coveted private oil producers in the United States.
This strategic move propels Diamondback into a leading position within the Permian Basin, the largest US oilfield, significantly expanding its operational footprint in Texas and New Mexico.
Despite Diamondback's market valuation of $27 billion, it successfully competed against the larger ConocoPhillips (NYSE:COP, ETR:YCP) for the deal, one of a slew of transactions in the US shale oil industry.
Top of the M&A pile were ExxonMobil's $60 billion purchase of Pioneer Natural Resources and Chevron's $53 billion acquisition of Hess.
Additionally, last month, Chesapeake Energy's $7.4 billion deal to acquire Southwestern Energy marked a significant expansion in the natural gas production domain.
Endeavor's remarkable growth under Autry Stephens since 2000 has made it a top private operator, with output reaching approximately 400,000 barrels of oil equivalent per day by the end of the previous year, contributing to the US's record-breaking oil production.