Diamondback Energy is moving quickly to integrate its recently acquired Double Eagle IV assets, with new regulatory filings and well activity signaling a concentrated development push in Reagan County, Texas.
Midland Basin Operator Account Directory – $10
Includes: Account Name, Location, Phone, Website, Wells Drilled….
Air Permit Approval: Merchant Recycling Pit
On August 27, 2025, Diamondback (via DE IV Flow LLC) received approval for a new air permit covering the Merchant Recycling Pit in Reagan County. The facility, located north of Big Lake, is classified as an oil and gas production facility and is designed to handle recycling operations tied to field development. The $25 permit fee was filed under a standard permit notification, marking an early step in Diamondback’s environmental compliance process as it ramps up activity in the area.
Wave of Well Permits
Alongside the air permit, a slate of 43 well permits tied to the Merchant Estate leases has been filed in Reagan County, directly connecting to the acreage acquired through the $3 billion Double Eagle IV Midco acquisition completed in March 2025.
- Operator: Primarily Diamondback Energy, with one permit under Endeavor Energy Resources (legacy Double Eagle acreage).
- Field: Spraberry (Trend Area) Primary Field.
- Lease Names: Merchant Estate 18-12 wells (multiple designations including D, H, A, and C).
- Projected Depths: ~11,000 feet.
- Rigs Assigned: Activity includes Ensign T141 and Nabors X15 rigs.
- Permit Timeline: Most permits were issued between November 2024 and January 2025, immediately preceding the Double Eagle deal.
Strategic Significance
The Merchant Recycling Pit air permit and the Merchant Estate well permits underscore Diamondback’s intent to accelerate drilling and infrastructure integration across its new Double Eagle acreage. By quickly securing regulatory approvals and mobilizing rigs, Diamondback is building out a development corridor in Reagan County, a key part of the core Midland Basin.
This coordinated regulatory and drilling activity reflects Diamondback’s broader strategy of maximizing value from acquired acreage while streamlining operations under its expanding Midland footprint.
