## Diamondback and Endeavor Energy Resources Forge $26B Permian Powerhouse Through Strategic Consolidation Deal

Two major American oil operators have sealed a transformational consolidation agreement that reshapes the independent energy landscape. Diamondback Energy (NASDAQ: FANG) and Endeavor Energy Resources, L.P. announced a definitive deal valued at approximately $26 billion inclusive of net debt, creating an integrated Permian independent operator of unprecedented scale.

**Transaction Structure and Ownership Breakdown**

The consolidation consideration encompasses approximately 117.3 million shares of Diamondback common stock and $8 billion in cash, subject to standard adjustments. Financing will be sourced through existing cash reserves, revolving credit facility utilization, and potential term loan or senior note issuances.

Post-combination ownership structure reflects a balanced partnership: Diamondback's existing shareholders will control roughly 60.5% of the combined entity, while Endeavor's equity holders retain approximately 39.5%. The transaction received unanimous board approval from Diamondback and secured all necessary Endeavor authorizations.

**Operational Synergies and Market Position**

The combined platform establishes industry-leading operational advantages. The pro forma asset base comprises approximately 838,000 net acres with combined net production of 816 MBOE/d, underpinned by approximately 6,100 pro forma drilling locations featuring highly competitive break-even economics.

Both organizations emphasized cultural alignment and operational compatibility. Headquartered in close proximity within Midland, Texas, the integration framework prioritizes seamless team consolidation and unified strategic execution. Leadership highlighted the combination's capacity to deliver best-in-class operational performance through consolidated cost structures and enhanced capital deployment efficiency.

**Strategic Rationale and Value Creation**

Industry observers note the transaction demonstrates clear strategic logic: industry-leading inventory depth and quality converge with lowest-cost operational structures, establishing differentiated value delivery mechanisms for stakeholders. The consolidation unlocks near and long-term financial accretion potential while enabling improved combined capital allocation strategies.

Endeavor Energy Resources brings four and a half decades of operational excellence to the partnership, recognized as among America's highest-quality private oil sector operators. This convergence of two established, similarly-cultured organizations in the Permian basin signals confidence in consolidated independent operator models during the current energy market cycle.