Diamondback in Talks to Buy Double Eagle for More Than $5 billion, WSJ Reports

(Reuters) – Diamondback Energy is in talks to buy EnCap-backed Double Eagle, a big West Texas energy producer, for more than $5 billion, the Wall Street Journal reported on Friday, citing people familiar with the matter.

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.

The WSJ report said a deal could be announced in coming days, if the talks don’t fall apart, and it is also possible another suitor could emerge.

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.

Reporting by Tanay Dhumal in Bengaluru; Editing by Alan Barona

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