Diamondback speeds Permian expansion with $1.5 billion deal

(Bloomberg) — Diamondback Energy Inc. agreed to buy drilling rights in the U.S. Permian Basin for about $1.5 billion in its latest expansion in North America’s biggest oilfield.

Diamondback will acquire drilling rights across 15,000 net acres in the Permian’s northern Midland Basin in Texas from closely held Lario Oil and Gas Co. for $850 million in cash and 4.18 million shares, according to a statement on Wednesday.

The announcement comes just weeks after Diamondback agreed to purchase Permian explorer Firebird Energy LLC for about $1.5 billion. On a combined basis, the Firebird and Lario deals will expand Diamondback’s Permian footprint by an area almost twice the size of Brooklyn. 

Lario traces its roots to 1917 and the Globe refining company founded by the O’Shaughnessy family. Jefferies LLC is serving as financial advisor to Diamondback and JP Morgan Securities LLC is advising Lario, according to the statement.