Diamondback Nears $5 Billion Double Eagle V Deal
The deal would expand Diamondback Energy's Permian Basin footprint in Texas, though Reuters could not immediately verify the report.
Updated on Nov. 15, 2026 in Oil and Gas
Diamondback Energy is nearing a roughly $5 billion deal to acquire the drilling portfolio of Double Eagle V, a Texas-based energy producer backed by EnCap Investments, according to a Financial Times report citing people familiar with the matter. The deal would comprise both cash and stock and could be announced as soon as early next week.
Why it matters
The acquisition would further consolidate Diamondback's position among the largest producers in the Permian Basin, a core oil-producing region in Texas and New Mexico. It follows a series of recent transactions that have reshaped the company's asset base in the region.
The reported roughly $5 billion price for the Double Eagle V portfolio compares with the $4.08 billion Diamondback paid for certain Double Eagle units in February 2025, and with the $26 billion Endeavor Energy Partners acquisition in 2024. Reuters could not immediately verify the figures, and the final valuation and deal structure remain unconfirmed.
The players
Diamondback Energy
Diamondback Energy is a US shale producer headquartered in Midland, Texas, that became the third-largest producer in the Permian Basin after its 2024 Endeavor acquisition.
Double Eagle
Double Eagle is a Texas-based energy producer whose drilling portfolio Diamondback is reportedly negotiating to acquire.
EnCap Investments
EnCap Investments is a private equity firm that backs Double Eagle V.
KKR
KKR is a global investment firm that agreed with Diamondback to acquire Five Point Infrastructure's stake in Deep Blue Midland Basin.
Five Point Infrastructure
Five Point Infrastructure is the investment owner of a 70% stake in Deep Blue Midland Basin, a water infrastructure firm in the Permian Basin.
The details
Diamondback agreed last week with KKR to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure firm in the Permian Basin. The Double Eagle V talks are reported separately, with the deal expected to combine cash and stock.
Timeline
February 2025: Diamondback bought certain Double Eagle units for $4.08 billion.
2024: Diamondback struck a $26 billion deal to buy Endeavor Energy Partners.
Last week: Diamondback and KKR agreed to acquire the 70% stake in Deep Blue Midland Basin.
Early next week: The Double Eagle V acquisition could be announced.
Market Landscape
The reported Double Eagle V deal extends Diamondback's consolidation strategy in the Permian Basin, following its $26 billion Endeavor Energy Partners acquisition in 2024 that made it the third-largest producer in the region. The move reflects continued consolidation among shale producers seeking scale in the basin's most productive acreage.
For Texas residents and fuel consumers, consolidation among Permian producers can affect the scale and pace of drilling activity that supports regional jobs and oil supply. The practical effects on local employment and fuel prices will depend on whether the acquisition is completed and how the combined operations are run.
The takeaway
Large Permian deals like this one show how producers are pursuing scale through acquisitions rather than new acreage alone. Readers tracking energy markets should watch for the official announcement to confirm the final price and structure.
What happens next
The Double Eagle V acquisition could be announced as soon as early next week, pending confirmation of final terms.
Further reading
For broader context on regional drilling and acquisitions, explore Oil and Gas coverage across Texas.
Source note: This article includes information reported by The Mighty 790 KFGO | KFGO.
