Diamondback Energy, Inc. Announces Midland Basin Acquisition
Vinson & Elkins advised Double Eagle IV MidCo, LLC (“Double Eagle”), a subsidiary of Double Eagle Energy Holdings IV, LLC and a private company backed by EnCap Investments L.P. (“EnCap”), in the entry into a definitive agreement whereby Double Eagle will sell certain of its subsidiaries and assets to Diamondback E&P LLC, a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG), in exchange for approximately 6.9 million shares of FANG common stock and $3 billion of cash consideration, subject to customary adjustments.
The transaction is expected to close in Q2 of 2025, subject to customary closing conditions. In connection with the transactions contemplated by the definitive agreement, Double Eagle and FANG have also agreed to accelerate development on a portion of FANG’s non-core southern Midland Basin acreage.
Vinson & Elkins has advised Double Eagle and its affiliates on multiple prior exits. The Vinson & Elkins team was led by partners Bryan Loocke, Matt Strock, and Mike Marek, counsel Michael Zarcaro and senior associate David Lassetter, with assistance from associates Rivers Stephens, Drew Clements, Michael Gassman, and Chandni Jaggi. Other key team members included partners Danielle Patterson, Becky Baker, David D’Alessandro, Megan James, Evan Miller, Hill Wellford, Jackson O’Maley, David Peck, and Tzvi Werzberger; counsels Regina Ibarra and Carter Olson; senior associates Peter Goetschel and Dan Henderson and associates Walt Baker, Lauren Perillo, Kelly McGee, Rami Rashmawi, Adam Thomas, and Cassandra Zarate.
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