Diamondback buys Guidon Operating LLC for $862 million
(Bloomberg) --Diamondback Energy Inc. rounded off a tumultuous year for the U.S. shale industry with the acquisition of two rival producers for about $1.4 billion that will expand the company’s position in the Permian Basin.
Diamondback said it agreed to purchase closely held Guidon Operating LLC. That cash-and-stock deal values Guidon, which was co-founded in 2016 by funds managed with Blackstone Group, at about $862 million.
The acquisitions are a bet by Midland, Texas-based Diamondback on the resilience of the shale sector, whose production has dropped this year following the collapse of oil prices. The deals are Diamondback’s largest since its $7 billion takeover of Energen Corp. in 2018, and will bring its total leasehold interests to over 276,000 net surface acres in the Midland Basin, which is part of the Permian in West Texas.
