Diamondback Energy Inc. and Endeavor Energy Resources are said to be in the late stages of negotiating a deal that would result in the formation of a substantial company within the shale industry.
Sources close to the discussions have revealed that the deal between these two oil giants could be finalized as early as Monday, as reported by The Wall Street Journal.
Under the proposed agreement, Endeavor, which is privately held, would be valued at approximately $25 billion. Diamondback stockholders would become the majority holders of the combined entity, marking a significant development in the industry.
This potential deal would surpass ConocoPhillips, another contender for Endeavor based in Midland, Texas, according to insider sources. While Diamondback, also headquartered in Midland, has a market capitalization of $27.3 billion, ConocoPhillips outperforms with a significant market cap of $133 billion.
This agreement would add to the recent string of major mergers and acquisitions within the energy sector. Chevron Corp. recently completed an all-stock purchase of Hess Corp. worth $53 billion in October. Likewise, Exxon Mobil Corp. made headlines with its $59.5 billion deal to acquire Pioneer Natural Resources Co.
In a separate transaction last month, Southwestern Energy Co. and Chesapeake Energy Corp. agreed to merge, forming a dominant force in the natural gas sector with a deal valued at $7.4 billion.
Diamondback and Endeavor declined to comment at this time.
