US shale producer Diamondback Energy is nearing a roughly $5 billion deal to acquire a drilling portfolio from Texas-based energy producer Double Eagle, expanding its footprint in the oil-rich Permian Basin in Texas, the Financial Times reported, citing people familiar with the matter.
Here are some details:
* As part of the deal, Diamondback will pay about $5 billion to buy Double Eagle V, which is backed by private equity firm EnCap Investments, FT said
* Reuters could not immediately verify the report. Diamondback, Double Eagle and EnCap did not immediately respond to requests for comment outside regular business hours
* The report comes after Diamondback and private equity firm KKR agreed last week to acquire Five Point Infrastructure’s 70% stake in Deep Blue Midland Basin, a water infrastructure firm in the Permian Basin
* The Midland, Texas-based company has been doubling down on the Permian Basin, which straddles West Texas and New Mexico, striking a $26-billion deal in 2024 to buy rival Endeavor Energy Partners to become the third-largest producer in the region
* Diamondback bought certain units of Double Eagle for $4.08 billion in cash and stock in February 2025
* The new acquisition could be announced as soon as early next week, with the deal comprising both cash and stock, according to FT
(Reporting by Sumedha Mukherjee in Bengaluru; Editing by Andrea Ricci)