Diamondback Energy has established itself as one of the Permian Basin’s most active operators through a disciplined acquisition strategy and sustained drilling program. Since 2018, the company has completed several major transactions, including the $9.2 billion acquisition of Energen, the $2.2 billion acquisition of QEP Resources, the purchase of Guidon Energy’s Midland Basin assets, the $26 billion merger with Endeavor Energy Resources in 2024, and the acquisition of Double Eagle IV in 2025. These transactions have significantly expanded Diamondback’s operated acreage, production base, and inventory of premium drilling locations across the Midland Basin.
Legacy Company Current Owner M&A / Corporate Event Energen Resources Corporation Diamondback Energy Diamondback acquired Energen in November 2018 in a transaction valued at approximately $9.2 billion, significantly expanding its position across the Midland and Delaware basins. QEP Energy Company (QEP Resources) Diamondback Energy Diamondback completed the acquisition of QEP Resources in March 2021 for approximately $2.2 billion, adding high-quality Permian acreage and production. Endeavor Energy Resources Diamondback Energy Diamondback completed its merger with Endeavor Energy Resources in September 2024 in a transaction valued at approximately $26 billion, creating one of the largest independent oil producers in the Permian Basin. Guidon Energy Management Services LLC Diamondback Energy Diamondback acquired Guidon Energy’s Midland Basin assets, expanding its operated footprint and inventory of high-return drilling locations. (Transaction completed in 2021 as part of Midland Basin bolt-on acquisitions.) Double Eagle IV Operating, LLC Diamondback Energy Diamondback announced the acquisition of Double Eagle IV in 2025 for approximately $4.1 billion (cash and stock), adding roughly 27,000 net acres in the core Midland Basin and reinforcing its consolidation strategy.
The company’s expanded asset portfolio is reflected in its permitting activity. Since 2016, Diamondback has filed 6,723 well permits, making it one of the most active independent operators in North America. Annual permit filings increased from 49 permits in 2016 to a record 881 permits in 2024, with 382 permits filed during 2026 year-to-date. The company continues to execute a long-term development program that emphasizes capital discipline while efficiently developing its expanded inventory.
Diamondback’s drilling activity remains concentrated in the core of the Midland Basin, with Martin County (2,758 permits) and Midland County (1,442 permits) accounting for nearly two-thirds of all permits filed since 2016. Additional activity is spread across Reagan, Howard, Glasscock, Pecos, Andrews, Reeves, Ector, and Upton counties. More than 95% of all permits are horizontal wells, with development focused primarily on the Spraberry Trend and Wolfcamp formations, two of the most productive unconventional reservoirs in the United States.
Top Operating Counties by Well Permits
| County | Permits |
|---|---|
| Martin | 2,758 |
| Midland | 1,442 |
| Reagan | 484 |
| Howard | 321 |
| Glasscock | 314 |
| Pecos | 298 |
| Andrews | 275 |
| Reeves | 269 |
| Ector | 220 |
| Upton | 159 |
For drilling contractors, oilfield service companies, equipment suppliers, and midstream operators, Diamondback’s continued permitting activity signals sustained demand for drilling, completions, production services, and infrastructure across West Texas. The company’s consolidation strategy has created larger contiguous acreage positions that support longer laterals, multi-well pad development, and improved operating efficiencies, providing a stable outlook for companies supporting Permian Basin development.
Industry Impact
Diamondback’s acquisition-driven growth and consistent permitting activity demonstrate the continued consolidation of high-quality Permian Basin assets among large independent operators. For the North American oil and gas industry, the company’s long-term drilling program supports ongoing demand for rigs, completion crews, production equipment, midstream infrastructure, and oilfield services while reinforcing the Permian Basin’s position as the continent’s most active upstream region.
Author: phinds