Diamondback Energy Inc. and Endeavor Energy Resources are reportedly in the late stages of deal talks that would see the shale rivals form a massive company.
A deal between the two oil giants could come as soon as Monday, according to a report in The Wall Street Journal, which cited sources close to the discussions.
The cash-and-stock deal on the table would value privately held Endeavor at roughly $25 billion, with Diamondback
stockholders becoming majority holders of the combined group, the sources said.
A deal would trump ConocoPhillips
which was also vying for Midland, Texas-headquartered Endeavor, the sources added. Diamondback, also based in Midland, has a market cap of $27.3 billion, according to FactSet, far below ConocoPhillips’ $133 billion.
The deal would continue a run of major energy tie-ups, after Chevron Corp.’s
$53 billion all-stock buyout of Hess Corp. in October, which came days after Exxon Mobil Corp.’s
$59.5 billion deal to buy Pioneer Natural Resources Co.
Last month, Southwestern Energy Co.
and Chesapeake Energy Corp.
agreed to form a natural gas giant in a $7.4 billion tie-up.
MarketWatch has reached out to Diamondback and Endeavor for comment.