Diamondback Energy Receives Second FTC Request in $26 Billion Endeavor Deal
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Oil and gas firm Diamondback Energy said on Monday it had received a second request from the U.S. Federal Trade Commission (FTC) in connection with the $26 billion deal to buy privately-held Endeavor.
The U.S. antitrust regulator has asked for additional information and documentary material as part of its review of the proposed merger.
Midland, Texas-based Diamondback had said in February it would buy privately held rival Endeavor Energy Partners in a cash-and-stock deal, which is expected to close in the fourth quarter.
The combined company would be the third-largest oil and gas producer in the Permian Basin of West Texas and New Mexico, behind ExxonMobil and Chevron.
U.S. lawmakers have sought increased scrutiny of multi-billion dollar deals in the oil and gas industry from the FTC.
This is the fifth oil and gas deal since December to get a second request from the FTC. Other deals to receive second notices include the Exxon, Pioneer, Chevron, Hess, and Occidental.
Earlier this month, Chesapeake Energy and Southwestern Energy said the closing date of their proposed $7.4 billion merger had been pushed back to the second half of the year after receiving a second request for information from the FTC.
The combined Diamondback-Endeavor company would pump 816,000 barrels of oil and gas per day (boepd), behind the Exxon-Pioneer combination of about 1.3 million boepd and Chevron’s 867,000 boepd in the basin.
Source: Reuters
Diamondback Energy is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
Endeavor Energy Resources is a privately-held exploration and production company. Headquartered near operational activity in Midland, Texas, Endeavor has more than 1,200 valued employees and is one of the largest private operators in the United States. With more than 45 years of experience acquiring assets, the company is uniquely situated holding nearly 344,000 net acres in the Core 6 Midland Basin counties.
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