Diamondback Energy, which was founded in 2007 and has been publicly traded since 2012, reported that it had $9.6 billion in revenue, primarily from oil, and more than $4 billion in profit in its last fiscal year. It has a market value of about $27 billion.
“Diamondback was built through an acquire-and-exploit strategy,” Mr. Stice wrote in a letter to shareholders in November. He added that being a “low-cost operator” had been the company’s strength, and that “we expect Diamondback to remain a consolidator in the future.”
Endeavor’s roots date to 1979, when a wildcatter, Autry Stephens, drilled his first well in West Texas. He turned his business into Endeavor in 2000, and it has grown into one of the largest privately held operators in the country. But Mr. Stephens, whose worth Bloomberg estimates is almost $15 billion, is now 85, and the current wave of consolidation makes this a good time to sell.
“As we look toward the future, we are confident joining with Diamondback is a transformational opportunity for us,” Mr. Stephens said in a statement.
Deal fever has been sweeping the industry, as oil and gas companies race to consolidate despite predictions that peak oil is only years away as the world turns away from fossil fuels.