Double Eagle Poised for Massive Permian Asset Sale
Privately-held Permian basin producer Double Eagle is reportedly considering the sale of assets potentially worth more than **$6.5 billion**, including debt, Reuters reported on Wednesday, citing unnamed sources. The sources anticipate the official start of the sale in the second half of this year, with existing Permian operators expected to be the most likely buyers amid a bit of merger mania in the American shale patch.
If Double Eagle’s assets end up being sold for the estimated **$6.5 billion** value, it would represent one of the biggest deals involving a private American producer in the past year, following Diamondback Energy’s **$26 billion** merger with Endeavor and Occidental Petroleum’s **$12 billion** deal for CrownRock.
This is already the third version of Double Eagle, which is now Double Eagle IV. The previous version of this company was acquired by Pioneer Natural Resources in 2021, for a similar price tag. Double Eagle IV assets include some **55,000 acres** in Texas with output anticipated to surpass **90,000 boepd** by the end of the year, according to Reuters’ sources.
In a deal valued at **$2.1 billion**, Crescent Energy said earlier this month that it would buy SilverBow Resources to create a major Eagle Ford shale player. U.S. oil and gas exploration and production companies spent as much as **$234 billion** on mergers and acquisitions (M&A) last year—the highest such spend in real dollar terms since 2012. **2024** also began on a high note—companies announced a record **$51 billion** in deals in the first quarter, driven – again – by deal-making in the Permian, according to Enverus Intelligence Research (EIR).
By Michael Kern for Oilprice.com
