Diamondback Deal Poses Next Test for FTC Scrutiny of Oil Mergers

The Federal Trade Commission’s recent inquiries into oil and gas acquisitions point to antitrust hurdles for Diamondback Energy Inc. and Endeavor Energy Resources LP as the Permian Basin drillers push for a $26 billion merger.

The consolidation of the two companies, announced this week, would form the largest company focused exclusively on exploring the Western Hemisphere’s busiest oil field, straddling Texas and New Mexico. The deal traditionally wouldn’t raise red flags for antitrust enforcers in part because the merged company would still control less than 30% of oil production in the Basin region.

But antitrust attorneys and energy industry experts ...