Diamondback Energy sees ‘substantial’ accretion from Endeavor deal

Strategic and Financial Benefits: Combined pro forma scale of approximately 838,000 net acres and 816 MBOE/d of net production. Best in-class inventory depth and quality with approximately 6,100 pro forma locations with break evens at less than$40 WTI. Annual synergies of $550 million representing over $3.0 billion in NPV10 over the next decade. Capital and operating cost synergies: approximately $325 million. Capital allocation and land synergies: approximately $150 million. Financial and corporate cost synergies: approximately $75 million. Substantial near and long-term financial accretion with ~10% free cash flow per share accretion expected in 2025. Stock-weighted transaction solidifies investment grade balance sheet. Advances leading ESG profile. “This combination offers significant, tangible synergies that will accrue to the pro forma stockholder base,” stated CEO Travis Stice. “Diamondback has proven itself to be a premier low-cost operator in the Permian Basin over the last twelve years, and this combination allows us to bring this cost structure to a larger asset and allocate capital to a stronger pro forma inventory position. We expect both teams will learn from each other and implement best practices to improve combined capital efficiency for years to come.”