Double Eagle IV Midco Enters Definitive Deal with Diamondback for $3 Billion
Deal News | Feb 18, 2025 | EnCap Investments
Double Eagle IV Midco, LLC has entered into a definitive purchase agreement to divest its equity in subsidiaries to Diamondback Energy, Inc. for $3 billion in cash and approximately 6.9 million shares of Diamondback common stock. The deal is heralded by Double Eagle's Co-CEOs, Cody Campbell and John Sellers, who highlight the synergy with Diamondback, a leading public operator in the Midland Basin. This transaction solidifies EnCap Investments' position as a vital capital provider within the U.S. energy landscape, with the deal expected to close by April 1, 2025, upon fulfilling customary closing conditions. RBC Capital Markets, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC are advising Double Eagle, while Diamondback's financial advisement comes from TPH&Co and legal counsel from Kirkland & Ellis.
Sectors
- Energy
- Finance
- Legal Services
Geography
- United States – The companies and the transaction are based in the US, and the assets involved are in North America, primarily in the Midland Basin.
- Texas – Both Double Eagle and EnCap Investments are Texas-based, specifically influential in the Fort Worth and Midland areas.
Industry
- Energy – The energy sector is central to the article as it involves the acquisition and development of oil and gas assets.
- Finance – The financial aspect involves significant transactions and financial advisory roles carried out by notable firms in the mergers and acquisitions process.
- Legal Services – Legal advisories are crucial in this transaction, ensuring compliance and facilitating the deal.
Financials
- $3 billion – Cash component of the deal being paid by Diamondback Energy to Double Eagle.
- 6.9 million shares – In addition to cash, Diamondback offers its common shares to Double Eagle in the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Double Eagle IV Midco, LLC | Target | Company | A Fort Worth, Texas-based energy company focused on the acquisition and development of oil and gas assets. |
| Diamondback Energy, Inc. | Bidding Company | Company | A NASDAQ-listed public operator, leading in the Midland Basin, acquiring assets from Double Eagle. |
| EnCap Investments L.P. | PE Firm | Company | Provides growth capital in the US energy sector; involved in the transaction through its portfolio company, Double Eagle. |
| RBC Capital Markets | Financial Advisor | Company | A financial advisory firm providing services to Double Eagle in the transaction. |
| Goldman Sachs & Co. LLC | Financial Advisor | Company | Another financial advisory participant for Double Eagle in this strategic transaction. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Part of the advisory team for Double Eagle in their transaction with Diamondback. |
| Vinson & Elkins LLP | Legal Advisor | Company | Legal advisors to Double Eagle, facilitating legal compliance for the deal. |
| TPH&Co, Perella Weinberg Partners | Financial Advisor | Company | Serves as Diamondback Energy’s financial advisor, assisting in the acquisition process. |
| Kirkland & Ellis | Legal Advisor | Company | Providing legal services to Diamondback Energy for this transaction. |