Diamondback Acquires Endeavor in $26 Billion Permian Oil Deal, With Promising Read-Through for Independent Producers like Vital Energy On Monday February 12th, Diamondback Energy ($FANG, NYSE) announced its acquisition of Endeavor Energy to add to its Permian basin assets. This transaction adds about 357,000 BOEPD and 344,000 net acres to FANG’s asset base. Diamondback is financing this acquisition with $18 Billion in common stock issuance and $8 billion of cash, funded from cash on hand and debt issuance.
It was also encouraging to see that Michael Burry has held onto the shares of Vital Energy he bought a while ago. He might believe that also that it is undervalued in the market. Thanks for the heads-up article!
Hard not to like a company that continues to build its "reserve/land portfolio" and even with a 70% haircut to implied valuation, you're still looking at 100% upside - and that's with oil at $75.
Wouldn’t Callon Petroleum implied acquisition multiple be more appropriate for VTLE (similar size business)? In that case potential upside is much more limited.
Very good note, thank you! Quick question - rough math tells me that Vital reserve life is around 7 years, whereas Endeavour's reserves seem to have 30 years (according to some Fitch report from two years ago). Is that correct and if so, should we be using that metric to compare the two?
It was also encouraging to see that Michael Burry has held onto the shares of Vital Energy he bought a while ago. He might believe that also that it is undervalued in the market. Thanks for the heads-up article!
Hard not to like a company that continues to build its "reserve/land portfolio" and even with a 70% haircut to implied valuation, you're still looking at 100% upside - and that's with oil at $75.
Wouldn’t Callon Petroleum implied acquisition multiple be more appropriate for VTLE (similar size business)? In that case potential upside is much more limited.
The simple question is who would sell at cheap prices at this point? Deals will come, but whatever remain will come with a healthier price tag.
Who/why is someone selling 1.9 million shares/ SEC filing?
Very good note, thank you! Quick question - rough math tells me that Vital reserve life is around 7 years, whereas Endeavour's reserves seem to have 30 years (according to some Fitch report from two years ago). Is that correct and if so, should we be using that metric to compare the two?