Deals
Deal Frenzy Swells With Diamondback's $8.4 Billion Shale Buy
- Permian pacts mounting as bottlenecks drive consolidation push
- Energen acquisition follows $20 billion in deals by BP, Concho
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Diamondback Energy Inc.’s agreement to buy Energen Corp. in an $8.4 billion all-stock deal makes it official: The long-awaited Permian Basin buying spree has arrived, promising to shake up the U.S. shale industry.
Some $30 billion in transactions this year center on the Permian, where pipeline shortages and other hurdles have boosted costs, adding fresh momentum to the push for consolidation. In March, Concho Resources Inc. agreed to pay $9.5 billion including debt for RSP Permian Inc. In July, BP Plc said it would spend $10.5 billion across three U.S. shale plays, including the Permian.