Diamondback in talks to buy shale rival Endeavor for around $25 billion: report


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Diamondback Energy Inc. and Endeavor Energy Resources are reportedly in the late stages of deal talks that would see the shale rivals form a massive company.

A deal between the two oil giants could come as soon as Monday, according to a report in The Wall Street Journal, which cited sources close to the discussions.

The cash-and-stock deal on the table would value privately held Endeavor at roughly $25 billion, with Diamondback
stockholders becoming majority holders of the combined group, the sources said.

A deal would trump ConocoPhillips
which was also vying for Midland, Texas-headquartered Endeavor, the sources added. Diamondback, also based in Midland, has a market cap of $27.3 billion, according to FactSet, far below ConocoPhillips’ $133 billion.

The deal would continue a run of major energy tie-ups, after Chevron Corp.’s
$53 billion all-stock buyout of Hess Corp. in October, which came days after Exxon Mobil Corp.’s 
$59.5 billion deal to buy Pioneer Natural Resources Co. 

Last month, Southwestern Energy Co.
and Chesapeake Energy Corp.
agreed to form a natural gas giant in a $7.4 billion tie-up.

MarketWatch has reached out to Diamondback and Endeavor for comment.

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Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

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