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)