“Diamondback paying $1.2B for Permian assets of Houston’s Ajax Resources”
The Midland oil producer Diamondback Energy said it will pay $1.2 billion for the assets of a Permian Basin-focused Houston startup.
Diamondback is effectively buying out the private equity-backed Ajax Resources in the cash-and-stock deal. Ajax was formed just three years ago in Houston.
Ajax was created to acquire the Permian acreage and operations of Houston’s W&T Offshore, which obviously opted to stick to offshore oil and gas. Ajax and its private equity sponsor, New York-based Kelso & Co., only paid $376 million for the nearly 30,000 acres in 2015 during the midst of the recent oil bust.