Diamondback Energy is an American company engaged in
hydrocarbon exploration headquartered in
Midland, Texas.
As of December 31, 2020, the company had of estimated proved reserves, of which 52% was
petroleum
Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...
, 24% was
natural gas
Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
, and 24% was
natural gas liquids. The company's reserves are all in the
Permian Basin.
[
As of February 2024, it is ranked 400th on the ]Fortune 500
The ''Fortune'' 500 is an annual list compiled and published by ''Fortune (magazine), Fortune'' magazine that ranks 500 of the largest United States Joint-stock company#Closely held corporations and publicly traded corporations, corporations by ...
.
History
The company began operations in December 2007 with the acquisition of 4,174 net acres in the Permian Basin.[
In October 2012, the company became a ]public company
A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...
via an initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
, issuing 12,500,000 shares of common stock at a price of $17.50 per share.
In March 2017, the company acquired assets from Brigham Resources for $2.55 billion.
In October 2018, the company acquired the assets of Ajax Resources for $1.25 billion.
In November 2018, the company acquired Energen.
In February 2021, the company acquired leasehold interests and assets from Guidon Resources for $375 million in cash and 10.68 million shares.[
A 2023 Bloomberg news story identified the company, as well as Permian Resources, as major contributors to the increase of flaring gas in the Permian oil field.
In February 2024, it was reported Diamondback Energy and Endeavor Energy Resources were in final discussions toward a merger that would create an oil-and-gas giant worth more than $50 billion.
]
Antitrust lawsuit
In January 2024, a class action lawsuit was filed accusing Diamondback, along with seven other US oil and gas producers, of an illegal price-fixing scheme to constrain production of shale oil, allegedly leading to drivers in the US paying more for gasoline than they would have in a competitive market.
References
External links
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{{authority control
2007 establishments in Texas
2012 initial public offerings
American companies established in 2007
Companies based in Texas
Natural gas companies of the United States
Oil companies of the United States