Endeavour

Company Overview

Endeavor Energy Resources, L.P. is a privately-held exploration and production company headquartered near its operational activities in Midland, Texas. The company has over 45 years of experience in acquiring and developing oil and gas assets, particularly in the Permian Basin.

Operations and Assets

• Endeavor Energy Resources operates primarily in the Core 6 Midland Basin counties, holding nearly 344,000 net acres in this region.
• The company is one of the largest private operators in the United States, with a significant presence in the Permian Basin.

Merger with Diamondback Energy

As of February 2024, Endeavor Energy Resources has entered into a definitive merger agreement with Diamondback Energy, Inc. This merger, valued at approximately $26 billion (including Endeavor's net debt), aims to create a premier Permian independent oil and gas company.

• The combined company will have a pro forma scale of approximately 838,000 net acres and 816 MBOE/d (thousand barrels of oil equivalent per day) of net production.
• The merger is expected to realize annual synergies of $550 million, representing over $3.0 billion in NPV10 over the next decade. This includes capital and operating cost synergies, capital allocation and land synergies, and financial and corporate cost synergies.

Production and Capital Guidance

• For 2024, Endeavor is expecting oil production of 190 – 200 MBO/d (million barrels of oil per day) or 350 – 365 MBOE/d.
• The total 2024 capital budget for Endeavor is approximately $2.5 - $2.6 billion.

Financial and Strategic Benefits

• The merger is anticipated to provide substantial near and long-term financial accretion, with an expected 10% free cash flow per share accretion in 2025.
• The combined company will have an industry-leading inventory depth and quality, with approximately 6,100 pro forma locations having break evens at less than $40 WTI (West Texas Intermediate).

Employees and Management

• Endeavor Energy Resources has more than 1,200 employees.
• The company's founder and chairman, Autry C. Stephens, has been instrumental in building the company since its inception in 1979.

Closing of the Merger

The merger is expected to close in the fourth quarter of 2024, subject to customary closing conditions, including regulatory approvals and the approval of Diamondback’s stockholders. The transaction is not subject to a financing contingency.