Diamondback Energy to Buy Permian Driller FireBird for $1.6 Billion

  • Cash and stock deal is Diamondback’s biggest since 2021
  • Purchase to add 75,000 gross acres in Permian’s Midland Basin
A Diamondback Energy oil rig in Midland, Texas.Photographer: Callaghan O'Hare/Bloomberg
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Diamondback Energy Inc. agreed to buy closely held FireBird Energy LLC in a cash-and-stock deal valued at about $1.6 billion, enabling the US shale oil producer to grow in the Permian Basin.

Diamondback will pay 5.86 million shares and $775 million in cash, it said Tuesday in a statementBloomberg Terminal. The cash portion of the deal is expected to be funded via cash on hand, borrowings under a credit facility, and, potentially, proceeds from an offering of senior notes.