Diamondback Energy is in talks to buy EnCap-backed Double Eagle, a big West Texas energy producer, for more than $5 billion, a person familiar with the matter said on Friday.
Last year, Reuters reported that Double Eagle was exploring a sale of its Permian Basin-based producer in a deal that could be worth more than $6.5 billion, including debt.
A deal could be announced in the coming days, if the talks don’t fall apart, and it is also possible another suitor could emerge, the person said.
In September, Diamondback acquired Endeavor Energy Resources for $26 billion to create an oil and gas company valued at more than $50 billion.
Diamondback and Double Eagle did not immediately respond to Reuters’ requests for comment.
The Wall Street Journal reported on the talks first on Friday.
Source: Reuters.com