Double Eagle

We defy you to name an oil and gas producer that’s been on the buying side of more $1-billion-plus M&A than Permian pure play Diamondback Energy, which announced February 18 that it had agreed to purchase a chunk of Midland Basin assets from Double Eagle IV, one of the Permian’s largest privately held producers, for just under $4.1 billion. You’d be equally hard-pressed to find a team that’s assembled and flipped more Permian acreage and production than the folks at Double Eagle. In today’s RBN blog, we discuss the newly announced Diamondback/Double Eagle IV deal and what it gives Diamondback, the fourth-largest producer in the Permian after ExxonMobil, Chevron and Occidental Petroleum. 

Two years ago, the Double Eagle condensate pipeline from the western oil and rich gas windows of the South Texas Eagle Ford basin simply provided access to Corpus Christi. By early 2015, the Double Eagle will be linked to the Kinder Morgan crude and condensate pipeline to Houston. Together the two systems will offer shippers access to Corpus Christi, Houston, condensate splitter capacity and diluent pipelines to western Canada. Today we describe the growth of this multi-destination delivery system.