Birmingham-headquartered Energen (NYSE: EGN), one of Alabama’s biggest public companies, will reportedly be sold to Texas-based Diamondback Energy. The all-stock deal is valued at approximately $9.2 billion, per the Birmingham Business Journal.
Energen has a storied history in the Yellowhammer State, including as the longtime owner of Alagasco until they sold the company in 2014 to the Missouri-based Laclede Group, who later formed Spire in the rebrand of the well-known Alabama gas company.
Diamondback will continue to be run out of Texas and its executive leadership will remain unchanged.
The deal came after billionaire Carl Icahn, also a former special advisor to President Donald Trump, months ago argued Energen was undervalued and encouraged the Alabama company to consider selling itself.
James McManus, chairman and CEO of Energen, expressed his excitement about the deal, saying the two companies involved will be stronger as one.
“We look forward to welcoming Energen’s employees as members of the Diamondback team, and applaud them for the hard work and dedication they have put forth to create this opportunity for the two teams to become one,” Travis Stice, Chief Executive Officer of Diamondback, said in a statement.
Energen and Diamondback combined to produce 222,000 barrels of oil equivalent per day in the second quarter of this year.
Sean Ross is a staff writer for Yellowhammer News. You can follow him on Twitter @sean_yhn
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