With the Lario Permian deal closed, Diamondback wraps up a pair of fourth-quarter 2022 deals in which it purchased private Midland Basin operators for a total of about $3.3 billion. (Source: G B Hart/ Shutterstock.com)
Diamondback Energy Inc.’s $1.55 billion acquisition of Lario Permian LLC has closed, according to a Jan. 31 company press release, wrapping up the E&Ps fourth-quarter 2022 Midland Basin shopping spree.
Along with the acquisition of FireBIrd Energy LLC in November, Diamondback said the deals would increase its Midland Basin footprint by approximately 83,000 net acres, add 500 high-quality drilling opportunities and increase its 2023 production profile by approximately 37,000 bbl/d of oil (50,000 boe/d).
Diamondback announced the Lario acquisition in November, saying then it would buy Lario Permian from Lario Oil & Gas with the deal funded through a combination of cash and stock. Diamondback agreed to acquire all leasehold interest and related assets of Lario Permian and certain associated sellers in exchange for 4.18 million shares of Diamondback common stock and $850 million of cash.
The deal, as originally proposed, would add approximately 25,000 gross (15,000 net) acres and over 150 gross locations in the core of the northern Midland Basin. Full-year 2023 estimated average production was expected to be 18,000 bbl/d of oil (25,000 boe/d), the company said.
The Lario deal followed Diamondback’s acquisition of FireBird, which closed on Nov. 30. Diamondback also acquired the private operator with a mix of cash and stock initially valued at roughly $1.6 billion. The transaction’s final price tag subsequently increased to $1.75 billion.
Recommended Reading
Anschutz Explores Utah Mancos Shale Near Red-Hot Uinta Basin
2024-12-10 - Outside of the Uinta Basin’s core oil play, private E&P Anschutz Exploration is wildcatting in Utah’s deeper, liquids-rich Mancos shale bench, according to a Hart Energy analysis.
CEO: Ovintiv Passes on Permian Prices for More Montney Condensate
2024-11-14 - Rumored to be a potential buyer in the Permian Basin, Ovintiv instead struck a deal for lower-cost oil and condensate assets in Alberta’s Montney Shale.
Jefferies: With Permian Locked Up, E&Ps Hunt for New L48 Runway
2024-11-26 - With the core of the Permian Basin largely locked up, “intrepid operators” are hunting for runway in more nascent Lower 48 basins and in less developed Permian benches.
'A Renewed Look': Central Basin Platform's Old Rock Gains New Interest
2024-10-29 - As majors prune their portfolios to sell non-core assets, M&A activity is heating up on the Permian’s Central Basin Platform and Northwest Shelf—and Ring Energy hopes to be a buyer.
Exclusive: Surge Energy Seeks Midland M&A with $1.3B in Dry Powder
2024-11-19 - Surge Energy is one of the largest private oil producers in the Permian Basin. With $1.3 billion in dry powder to put to work, Surge is scouring the northern Midland Basin for M&A, executive Travis Guidry told Hart Energy.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.