- The latest Guidon and QEP additions continue a long history of acquisitions.
- Both deals have to be accretive because as the Energen combination showed, industry conditions can rapidly change.
- This does not make the Energen acquisition look bad because industry conditions can again change.
- However, current industry conditions make the new acreage more competitive for capital dollars than gassier acreage.
- The key is that Diamondback retains a lot of flexibility to accommodate different industry conditions while maintaining above average profitability.
For further details see:
Diamondback Energy: History Repeats Itself