Diamondback Energy Inc. is said to be… Endeavor Energy Resources is in the final stages of deal talks that would see the shale oil rivals form a mega-corporation.
An agreement could be reached between the two oil giants on Monday, according to a report in the Wall Street Journal, citing sources close to the discussions.
The cash-and-stock deal on the table would value privately held Endeavor at about $25 billion, with Diamondback Fang,
The sources said that the shareholders became the majority owners of the merged group.
The deal would outperform ConocoPhillips COP,
The sources added that the company was also competing for Endeavor, which is based in Midland, Texas. Diamondback, also based in Midland, has a market cap of $27.3 billion, according to FactSet, far less than ConocoPhillips' $133 billion.
The deal will continue a series of major energy partnerships, following Chevron's CVX,
Hess Corp.'s $53 billion buyout took place in October, which came days after Exxon Mobil Corp.
$59.5 billion deal to buy Pioneer Natural Resources PXD
Last month, Southwestern Power Company SWN,
Chesapeake Energy Company CHK,
It agreed to establish a natural gas giant in a deal worth $7.4 billion.
MarketWatch has reached out to Diamondback and Endeavor for comment.
