Diamondback Energy, Endeavor Face FTC Scrutiny with Second Request on $26 Billion Merger
(Reuters) — Oil and gas firm Diamondback Energy said on Monday it had received a second request from the U.S. Federal Trade Commission (FTC) in connection with the $26 billion deal to buy privately-held Endeavor.
The U.S. antitrust regulator has asked for additional information and documentary material as part of its review of the proposed merger.
Context
Midland, Texas-based Diamondback had said in February it would buy privately held rival Endeavor Energy Partners in a cash-and-stock deal, which is expected to close in the fourth quarter.
The combined company would be the third-largest oil and gas producer in the Permian Basin of West Texas and New Mexico, behind Exxon Mobil and Chevron.
U.S. lawmakers have sought increased scrutiny of multibillion-dollar deals in the oil and gas industry from the FTC.
Why It Is Important
This is the fifth oil and gas deal since December to get a second request from the FTC. Other deals to receive second notices include the Exxon - Pioneer, Chevron - Hess and Occidental - Crownrock.
Earlier this month, Chesapeake Energy and Southwestern Energy said the closing date of their proposed $7.4 billion merger had been pushed back to the second half of the year after receiving a second request for information from the FTC.
By The Numbers
The combined Diamondback-Endeavor company would pump 816,000 barrels of oil and gas per day (boepd), behind the Exxon-Pioneer combination of about 1.3 million boepd and Chevron's 867,000 boepd in the basin.
Related News
Related News
- Trump Puts Keystone XL Pipeline Back in Discussion, Though Revival Faces Developer Resistance
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Energy Transfer Wins New York Court Ruling in $150 Million Pipeline Fraud Case
- ONEOK, MPLX to Build $1.4 Billion LPG Export Terminal, Pipeline in Texas
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- India’s GAIL Eyes U.S. LNG Deals Following Trump’s Policy Shift
- TC Energy Beats Q4 Profit Estimates, Driven by Mexico Pipelines' Success
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
Comments