Nov. 28–Shareholders of Energen yesterday approved the company’s acquisition by Diamondback Energy of Midland, Texas for $9.2 billion.
The all-stock transaction was announced back in August, and is expected to close Thursday, subject to satisfaction of the remaining customary closing conditions. It includes Energen’s net debt of $830 million.
The longtime owner of Alagasco, Energen in later years pivoted to oil exploration and production. Energen sold Alagasco, now Spire, back in 2014.
The combined company will be headquartered in Texas.
The deal was also one of three that saw Diamondback acquire about 150,000 acres in the Permian Basin over two weeks, giving it a prime position in the area that supplies almost a third of U.S. crude oil production. The combined company will own more than 266,000 acres in the basin, a large oil and natural gas producing area in Texas and New Mexico. The two also will produce about 222,000 barrels of oil equivalent per day.
Oil production volumes in the Permian are expected to pick up in mid-2019 as pipelines under construction come online.
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