Diamondback Nears Permian Deal to Buy Shale Producer Double Eagle

Diamondback Energy Inc. is closing in on a deal to acquire closely held West Texas oil producer Double Eagle in a bid to further its dominance in the world’s biggest shale patch, according to people familiar with the matter.

Diamondback, the largest independent oil and gas producer in the Permian Basin, plans to formally announce the deal for Double Eagle as early as Tuesday morning, said the people, who asked to not be identified because the details are private. The transaction could be valued at more than $5 billion, the Wall Street Journal reported Friday, citing unnamed sources.