Oil and gas producer Diamondback Energy Inc said it has agreed to buy all leasehold interest and related assets of Lario Permian, a unit of Lario Oil & Gas Company, for around $1.5 billion in cash and stock.
Lario Permian’s assets consist of about 25,000 acres in the Northern Midland Basin in Texas, with estimated 2023 production of about 18 thousand barrels of oil per day.
“When combined with our pending FireBird acquisition, we will grow our Midland Basin footprint by approximately 83,000 net acres, add 500 high quality drilling opportunities,” Diamondback Chief Executive Officer Travis Stice said.
The latest deal, expected to close on Jan. 31, 2023, comes a month after Diamondback said it would buy all leasehold interests and related assets from FireBird Energy for $1.6 billion in cash and stock.
The FireBird deal added “more than a decade of inventory” at Diamondback’s anticipated rate of development, Stice said in October.
The Lario Permian deal, for 4.18 million shares of Diamondback and $850 million in cash, will be accretive on all relevant 2023 and 2024 financial metrics, Diamondback said.
Source: Reuters.com