Diamondback Energy Inc.’s $1.55 billion acquisition of Lario Permian LLC has closed, according to a Jan. 31 company press release, wrapping up the E&Ps fourth-quarter 2022 Midland Basin shopping spree.
Along with the acquisition of FireBIrd Energy LLC in November, Diamondback said the deals would increase its Midland Basin footprint by approximately 83,000 net acres, add 500 high-quality drilling opportunities and increase its 2023 production profile by approximately 37,000 bbl/d of oil (50,000 boe/d).
Diamondback announced the Lario acquisition in November, saying then it would buy Lario Permian from Lario Oil & Gas with the deal funded through a combination of cash and stock. Diamondback agreed to acquire all leasehold interest and related assets of Lario Permian and certain associated sellers in exchange for 4.18 million shares of Diamondback common stock and $850 million of cash.
The deal, as originally proposed, would add approximately 25,000 gross (15,000 net) acres and over 150 gross locations in the core of the northern Midland Basin. Full-year 2023 estimated average production was expected to be 18,000 bbl/d of oil (25,000 boe/d), the company said.
The Lario deal followed Diamondback’s acquisition of FireBird, which closed on Nov. 30. Diamondback also acquired the private operator with a mix of cash and stock initially valued at roughly $1.6 billion. The transaction’s final price tag subsequently increased to $1.75 billion.